The Federal Housing Finance Agency (FHFA) has submitted a proposed rule to establish a framework for affordable housing goals for the 12 Federal Home Loan Banks (FHLBanks) it oversees for publication in the Federal Register. FHFA is mandated to establish such goals both for FHLBanks and for the two government sponsored enterprises, Fannie Mae and Freddie Mac, under provisions of the Housing and Economic Recovery Act (HERA) of 2008. Publication of the rules will signal the beginning of a 45 day period during which the public is invited to review the rules and submit comments. The purposed rule would define four housing goals for the Banks purchase of mortgages under the system's Acquired Member Assets (AMA) Programs on a basis similar to that used for the GSEs. The rule would require three…(read more)
With the OECD upgrading its global outlook for 2010 and 2011 growth , investor confidence is back on track this morning. Equities are trading much higher globally, including gains of larger than 2% in England and France, the euro is slightly higher, and stock futures in the U.S. look to a clear open. “Yesterday’s late afternoon near-miraculous recovery in North American equity markets has also bolstered investor spirits overnight,” said economists at BMO Capital Markets. “European bourses are trading 2% higher (after dropping to 9-month lows yesterday), while most Asian markets also finished their session in the green.” Ninety minutes before the opening bell, Dow futures are up 84 points to 10,109 and S&P 500 futures are 11.50 points higher at 1,084.50 The…(read more)
The National Association of Realtors today released Existing Home Sales data for April 2010. Excerpts From The Release… Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®. Existing-home sales , which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March , and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Lawrence Yun, NAR chief economist, said the gain was widely anticipated: “The upswing in April existing-home sales was expected because…(read more)
The Mortgage Bankers Association (MBA) expressed qualified approval today for the Senate's passage of the Restoring American Financial Stability Act of 2010 . The Senate voted closure on the bill mid-afternoon on Thursday and almost immediately passed it on a 59 to 39 vote, mostly on party lines. Four Republicans voted for the measure. The bill must now be reconciled with a measure passed earlier by the House. While MBA said that passage of the bill was an important milestone toward a more efficient regulatory regime for the financial services industry, it expressed concerns about several components of the legislation. Chief among those concerns is the proposed risk retention part of the bill in which lenders would be required to retain a minimum of 5 percent ownership of any loan it originates…(read more)
A spokesperson for the Mortgage Bankers Association (MBA) told a House subcommittee on Thursday that Veterans Administration (VA) loans have performed better during the financial crisis than almost any other type of loan and care should be taken to avoid including the VA and other guaranteed loan programs in proposed new lending measures "that might make the program less strong." James H. Danis, President of a North Carolina mortgage company, represented the MBA at a hearing on "The Status of the Loan Guarantee Program" before the House Veterans Affairs Subcommittee on Economic Opportunity. He told the members that VA loans are providing a valuable service to veterans at a time when finding affordable low-down payment mortgages is very difficult. Through FY 2009, he said…(read more)
The Mortgage Bankers Association today released the First Quarter 2010 National Delinquency Survey (NDS) results. Seasonally adjusted mortgage delinquency rates increased again during the first quarter of 2010, but a decrease in non-seasonally adjusted data is giving the Mortgage Bankers Association (MBA) reason for a little cautious optimism. The survey's seasonally adjusted figures showed a 59 basis point increase in total delinquencies from the fourth quarter of 2009 to a rate of 10.06 percent of all loans outstanding. This represents an increase of 94 basis points from one year ago. However, non-seasonally adjusted delinquencies decreased 106 basis points from 10.44 percent at the end of 2009 to 9.38 percent at the end of March. The delinquency rate includes loans that are at least…(read more)
The Commerce Department released April New Residential Construction: Building Permits and Housing Starts data this morning. From the Release… HOUSING STARTS Privately-owned housing starts in April were at a seasonally adjusted annual rate of 672,000. This is 5.8 percent above the revised March estimate of 635,000 and is 40.9 percent above the revised April 2009 rate of 477,000. Single-family housing starts in April were at a rate of 593,000; this is 10.2 percent above the revised March figure of 538,000. The April rate for units in buildings with five units or more was 68,000. BUILDING PERMITS Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 606,000. This is 11.5 percent below the revised March rate of 685,000, but is 15.9…(read more)
The key sector this week is housing, as data on new construction and homebuilder confidence are each expected to suggest recent progress. Meanwhile, several reports on inflation are also on the schedule, though they are unlikely to have a dramatic effect on markets as investors are much more concerned with sustained growth than out of control prices. Also, when the FOMC minutes are released on Wednesday, investors will be interested to read into voter sentiment and topics of conversation had at the most recent Fed meeting. Here Are The Key Events Of The Week: Monday: 8:30 ― The Empire State Manufacturing Survey is expected post its tenth consecutive month of growth in May, though the score is expected to be slightly lower than in April. Economists anticipate a score of 30.0, down from 31.9…(read more)
Moody's Investors Service said last week that U.S. State Housing Finance Agency (HFA) single-family whole loan programs continued to experience significant increases in both delinquencies and foreclosure rates during 2009. However, the service said they remained well below the default rates that Moodys has incorporated into its rating process. Loans in foreclosure in particular grew at a rapid pace with the weighted average percentage rising to 1.87 percent as of the end of the year. This is 75 basis points higher than the average on December 31, 2008. The 90+ day delinquency rate was 2.92 percent compared to 2.0 percent one year earlier while the 60+ date rate was 1.97 percent, up from 1.61 percent. The total delinquency rate in 2009 was 6.76 percent while 4.79 percent of loans are considered…(read more)
The U.S. Department of Housing and Urban Development (HUD) has set five specific goals which, the department's secretary said, will guide the agency's operations through the next five years. Secretary Shaun Donovan addressed HUD staff nationwide Wednesday and unveiled the agency's Strategic Plan which he called a "roadmap" to creating "strong, sustainable, inclusive communities and affordable homes for all." HUD's goals are: Strengthen the Housing Market to Bolster the Economy and Protect Consumers Meet the Need for Quality Affordable Rental Homes Utilize Housing as a Platform for Improving Quality of Life Build Inclusive and Sustainable Communities Free from Discrimination Transform the Way HUD Does Business. The Plan sets forward a number of specific actions…(read more)
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