One in every 45 housing units in the United States was the subject of a foreclosure notice during the year just ended, and the number may still be heading up according to data released today by RealtyTrac. Over 3.95 million foreclosure filings of all types were served against U.S. homeowners, a 21 percent increase in foreclosure notices over 2008 and a 120 percent increase over 2007. The number of properties against whose owners the actions were served represented 2.21 percent of all U.S. housing units compared to 1.84 percent in 2008 and 1.03 percent in 2007. In December a total of 349,519 properties were involved in some foreclosure action, 14 percent higher than in November and a 15 percent increase over the previous December. December 2008 had shown a similar jump over the previous month…(read more)
Subpoenas were served on the corporate offices of 15 mortgages companies Tuesday as part of an investigation of the backgrounds of claims filed against the Federal Housing Administration (FHA) mortgage insurance program. The subpoenas demanded data and documents related to what the Office of the Inspector of General (OIG) and the U.S. Department of Housing and Urban Development (HUD) termed a high rate of defaults on insured loans and significant numbers of claims filed against the FHA mortgage fund as a result of those defaults. In announcing the probe with FHA Commissioner David H. Stevens, Inspector General Kenneth Donohue said "The goal of this initiative is to determine why there is such a high rate of defaults and claims with these companies and whether there is wrongdoing involved…(read more)
Subpoenas were served on the corporate offices of 15 mortgages companies Tuesday as part of an investigation of the backgrounds of claims filed against the Federal Housing Administration (FHA) mortgage insurance program. The subpoenas demanded data and documents related to what the Office of the Inspector of General (OIG) and the U.S. Department of Housing and Urban Development (HUD) termed a high rate of defaults on insured loans and significant numbers of claims filed against the FHA mortgage fund as a result of those defaults. In announcing the probe with FHA Commissioner David H. Stevens, Inspector General Kenneth Donohue said "The goal of this initiative is to determine why there is such a high rate of defaults and claims with these companies and whether there is wrongdoing involved…(read more)
Equity futures are firmly higher this morning as global markets react to December data from China showed exports jumping 17.7% compared to one year ago (versus forecasts for only 5%). With the data China surpassed Germany to become world’s largest exporter. Moreover, imports surged by 55.9% y-o-y in December. One hour before the bell Dow futures are 41.00 points higher at 10,607 and S&P 500 futures are up 4.80 points to 1,146. Commodities are also on the rise with WTI Crude oil trading $1.04 higher at $83.79 per barrel and Spot Gold $20.27 higher at $1158.52. The broad gains signify investor confidence as the Q4 earnings season kicks off. Key Events This Week: Monday: 12:30 ― Dennis Lockhart, president of the Atlanta Fed, speaks on the economy to the Rotary Club of Atlanta. Treasury…(read more)
The FHFA today released the Foreclosure Prevention & Refinance Report for the Third Quarter 2009. This report is intended to provide disclosure and analysis of Fannie Mae and Freddie Mac loan data. It discusses the GSE's loan portfolio size and composition, the performance of the portfolio, and provides an update of foreclosure prevention objectives. Mortgage Portfolio Size and Composition The Enterprises’ aggregate mortgage portfolio increased by approximately 218,000 loans or 0.7 percent during the third quarter of 2009 as new purchases and issuances outpaced loan liquidations. The number of first-lien residential mortgages with credit score at origination of 660 or higher increased by 1.2 percent, while mortgages with less than 660 credit score at origination decreased 2.2…(read more)
Just one day before the all-important nonfarm payrolls and unemployment numbers, markets are decidedly looking sour this morning after another mixed session yesterday. A little more than one hours before the opening bell, Dow futures are off by 28 points to 10,491 and S&P 500 futures are trading 3.75 points lower to 1,129.25. Commodities are also weaker with WTI Crude oil down 76 cents to $82.42 per barrel, and Spot Gold down $8.85 to $1129.55. “China’s central bank raised the yield on its 3-month bill auction, triggering some fear over further tightening down the road,” noted Robert Kavcic from BMO before the bell. “As a result, commodity prices are also under pressure with oil, copper and gold all down, while natural gas is bucking the trend, holding steady as…(read more)
Just one day before the all-important nonfarm payrolls and unemployment numbers, markets are decidedly looking sour this morning after another mixed session yesterday. A little more than one hours before the opening bell, Dow futures are off by 28 points to 10,491 and S&P 500 futures are trading 3.75 points lower to 1,129.25. Commodities are also weaker with WTI Crude oil down 76 cents to $82.42 per barrel, and Spot Gold down $8.85 to $1129.55. “China’s central bank raised the yield on its 3-month bill auction, triggering some fear over further tightening down the road,” noted Robert Kavcic from BMO before the bell. “As a result, commodity prices are also under pressure with oil, copper and gold all down, while natural gas is bucking the trend, holding steady as…(read more)
The Mortgage Bankers Associates (MBA) notes that, while some economists may have declared that the recession technically ended with the third quarter, its effects are still plaguing the real estate industry. The Association's Quarterly Databook for the period ended September 30 shows that the commercial real estate market has yet to show many signs of recovery from the downturn. The report states that vacancy rates rose during the third quarter for all major property types, with office and retail properties showing the greatest impact. Retail vacancies rose from 12.9 percent to 18.6 percent during the quarter while office vacancies increased 3.4 points to a 19.5 percent rate. Industrial properties increased from 9.8 percent to 13.0 percent while apartment vacancies rose from 6.5 percent…(read more)
Fannie Mae, Ginnie Mae, and Freddie Mac once again kept the mortgage-backed securities (MBS) market going during 2009. The three government-sponsored enterprises wrote 89 percent of all new issues during the year, contributing to an increase of 51 percent in new MBS compared to 2008. Thomson Reuters reported on the eve of the holiday weekend that $291.5 billion in securities were issued during the year compared to $193.0 billion in 2008. That year was admittedly the slowest year for new MBS this decade, but the 2009 activity was hailed by Thomson Reuters as indication "that investors' appetite for risk improved amid signs of stabilization in the housing market." The shift to the agency MBS market is not new. It has held the lion's share of the market since 2007 when originators…(read more)
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