The U.S. Department of Housing and Urban Development (HUD) is releasing over $49 million to public housing agencies in 49 states plus Guam and Puerto Rico to increase job training for low-income residents. The funding, announced Tuesday by HUD Secretary Shaun Donovan , is part of the department's Housing Choice Voucher Family Self Sufficiency Program (HCV/FSS), originally established in 1990. Families participating in the Housing Choice Voucher portion of the program may voluntarily participate in the Family Self Sufficiency Program. According to HUD, the grants allow public housing agencies (PHAs) to work with welfare agencies, schools, businesses, and other local partners to develop a comprehensive program designed to help participating individuals develop the skills and experience necessary…(read more)
Standard and Poor's released the Case-Shiller Home Price Index this morning. This data looks back on home prices in January. In January, on a seasonally adjusted basis , the 10 city index improved 0.4 percent while the 20 city index reported a 0.3 percent gain. This was the eighth consecutive month over month improvement in home prices, on a seasonally adjusted basis. Looking at the non-seasonally adjusted data, the 10 city index fell 0.2 percent while the 20 city index reported a 0.4% decline. This is the sixth consecutive month over month decrease for the 10 city index and the fifth straight for the 20 city index, on an unadjusted basis. David M.Blitzer, Chairman of the Index Committee at Standard & Poor’s, communicated the findings of the report quite well: “The report…(read more)
90 minutes before the opening bell sounds to begin a holiday-shortened week, equity futures are sharply upwards. The Dow looks to open 52 points higher at 10,850 and futures on the S&P 500 are up 4.50 points to 1,168.00 Commodities are also on the rise with NYMEX crude oil contracts (May) up 67 cents to $80.00 per barrel and Gold up $5.70 to $1,111.10. Data this week should be supportive of continued recovery in the economy, with the week likely ending on a highly positive note for employment. But investors will have plenty to consider after Treasury auctions saw a drawback in demand last week. Key Events This Week: Monday: 8:30 ― Personal Income & Outlays should show modest consistent gains in income, decent growth in consumer spending, and tame inflation. According to economists,…(read more)
Today, as part of its ongoing commitment to continuously improve housing relief efforts, the Obama Administration announced adjustments to the Home Affordable Modification Program (HAMP) and created a new Federal Housing Administration (FHA) principal write down program . Here is a rundown of the details…. HAMP Improvements 1. Temporary assistance for unemployed homeowners while they search for re-employment Mortgage payments reduced to affordable level for a minimum of three months, and up to 6 months for some borrowers, while eligible homeowner looks for new job. Via forbearance, month housing payment is set at 31% of monthly income while borrower is unemployed. A temporary assistance plan to be offered to unemployed borrowers. Servicers required to offer assistance to unemployed borrowers…(read more)
Yesterday Bank of America announced they "will make principal forgiveness– ahead of an interest rate reduction – the initial consideration toward modifying certain subprime, Pay-Option and prime two-year hybrid mortgages qualifying for its National Homeownership Retention Program (NHRP)." We hinted that this is the first step in the right direction toward a recovery in the housing market . Today this news hit wires: WASHINGTON, March 25 ( Reuters ) – The Obama administration is actively working on a plan to help both jobless workers and those who owe more than their homes are worth and details of the plan are coming "very very soon," a top Treasury official said on Thursday. "We have come up with some interesting ideas … to enable some additional people…(read more)
Yesterday Bank of America announced they "will make principal forgiveness– ahead of an interest rate reduction – the initial consideration toward modifying certain subprime, Pay-Option and prime two-year hybrid mortgages qualifying for its National Homeownership Retention Program (NHRP)." We hinted that this is the first step in the right direction toward a recovery in the housing market . Today this news hit wires: WASHINGTON, March 25 ( Reuters ) – The Obama administration is actively working on a plan to help both jobless workers and those who owe more than their homes are worth and details of the plan are coming "very very soon," a top Treasury official said on Thursday. "We have come up with some interesting ideas … to enable some additional people…(read more)
The US dollar is strengthening and equity futures are sharply lower this morning ahead of key housing and durable goods data. Yesterday the Dow strengthened for the 11th straight day, but this morning the focus is on continued financial troubles in Europe, causing risk aversion across the board and a flight to the greenback. 90 minutes before the bell, Dow futures are down 31 points to 10,797 and S&P 500 futures are off 4.20 points to 1,165. WTI crude oil is down $1.24 to $80.67 per barrel and Spot Gold is $9.00 lower to $1,096.15. The dollar strengthened mainly due to a steep fall in the euro overnight, which sank to its lowest level since last May, according to BMO Capital Markets. They attribute the weakness to talk of Greece receiving help from the International Monetary Fund. “Markets…(read more)
The US dollar is strengthening and equity futures are sharply lower this morning ahead of key housing and durable goods data. Yesterday the Dow strengthened for the 11th straight day, but this morning the focus is on continued financial troubles in Europe, causing risk aversion across the board and a flight to the greenback. 90 minutes before the bell, Dow futures are down 31 points to 10,797 and S&P 500 futures are off 4.20 points to 1,165. WTI crude oil is down $1.24 to $80.67 per barrel and Spot Gold is $9.00 lower to $1,096.15. The dollar strengthened mainly due to a steep fall in the euro overnight, which sank to its lowest level since last May, according to BMO Capital Markets. They attribute the weakness to talk of Greece receiving help from the International Monetary Fund. “Markets…(read more)
Fannie Mae has introduced another strategy to increase the effectiveness of the government foreclosure initiatives: The Alternative Modification Program HAMP has been widely criticized for what has so far been a poor record of converting home mortgages entered into a required three month trial phase into permanent modifications. As of the end of February HAMP (which also includes non-Fannie Mae and Freddie Mac mortgages) had finalized modifications on only 168,701 loans out of the 1.354 million who had been extended invitations to participate in the program. Effective for mortgage loans in active HAMP trials initiated prior to March 1, 2010, servicers are now required to consider the Alternative Modification™ (Alt Mod™) prior to initiating foreclosure proceedings for those borrowers…(read more)
I have done this once before and got great feedback. Let me know if you found this recap useful. The Federal Open Market Committee (FOMC) met for a one day meeting on Tuesday. The FOMC is the branch of the Federal Reserve that dictates domestic monetary policy. The FOMC statement held no surprises, only a few alterations were made to the text of the release. The Board reiterated that economic conditions warranted exceptionally low rates for an "extended period". There were two changes made that relate to housing. First, the Fed inserted a few words that imply there is good reason to be concerned about the health of housing, stating: " Housing starts have been flat at depressed levels ". Secondly, the verbiage referring to the MBS Purchase Program, which is scheduled to run…(read more)
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