June 15, 2011 (Brian Moore)
A recent survey on behalf of the National Association of Home Builders (NAHB) shows that American voters are in no mood to have their long standing housing tax breaks messed with as 71 percent of the voters surveyed opposed eliminating the mortgage interest deduction and 63 percent opposed any efforts to reduce it.
Home equity loans and lines of credit were also sacred cows as a majority of the voters surveyed were also against cutting deductions on these second mortgages. A majority of the voters also rejected the elimination of the deduction for interest paid for a loan on a second home and limiting the amount of the deduction for those earning more than $250,000 per year or capping the deduction for home owners with mortgages over $500,000.
Candidates from either political party would suffer greatly if they supported eliminating the mortgage interest deduction with 63 percent of Republicans, 56 percent of Independents, 55 percent of Democrats and 61 percent of tea party supporters saying they would be less likely to support a candidate who favored killing the deduction.
When voters were asked if they believe the federal government should provide tax incentives to help promote homeownership, 79 percent of Democrats, 71 percent of Republicans and 68 percent of Independents agreed that they should.
Voters in the survey also tended to disagree with what Washington policymakers have been proposing as fixes for the housing crisis. In regards to the raising the down payment requirements for a home loan, 92 percent believe that the requirements being discussed would make it difficult to buy a home.
Among voters who would be most likely affected by the “Qualified Residential Mortgage (QRM)” requirement, mortgage holders and renters ages 18 to 54, the survey found 59 percent of the renters and 58 percent of those currently holding a mortgage opposed the QRM requirement and regarded it as an obstacle to buying a home.
"Those in Congress who believe that homeownership and housing choice should no longer be national priorities would be well-served to study the results of this poll and hear what the American people think," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "To put it another way, America's voters have spoken. If Congress abandons policies to support the goal of homeownership and to keep housing affordable, lawmakers could be in for a rude awakening in the 2012 elections."
Tags: NAHB, mortgage interest deduction, housing tax breaks, home equity loans, lines of credit, second mortgages, political parties, Reepublicans, Democrats, Independents, Tea Party
Source:
NAHB
Friday, June 17, 2011
Survey Shows Voters Oppose Eliminating Mortgage Interest Deduction
June 15, 2011 (Brian Moore)
A recent survey on behalf of the National Association of Home Builders (NAHB) shows that American voters are in no mood to have their long standing housing tax breaks messed with as 71 percent of the voters surveyed opposed eliminating the mortgage interest deduction and 63 percent opposed any efforts to reduce it.
Home equity loans and lines of credit were also sacred cows as a majority of the voters surveyed were also against cutting deductions on these second mortgages. A majority of the voters also rejected the elimination of the deduction for interest paid for a loan on a second home and limiting the amount of the deduction for those earning more than $250,000 per year or capping the deduction for home owners with mortgages over $500,000.
Candidates from either political party would suffer greatly if they supported eliminating the mortgage interest deduction with 63 percent of Republicans, 56 percent of Independents, 55 percent of Democrats and 61 percent of tea party supporters saying they would be less likely to support a candidate who favored killing the deduction.
When voters were asked if they believe the federal government should provide tax incentives to help promote homeownership, 79 percent of Democrats, 71 percent of Republicans and 68 percent of Independents agreed that they should.
Voters in the survey also tended to disagree with what Washington policymakers have been proposing as fixes for the housing crisis. In regards to the raising the down payment requirements for a home loan, 92 percent believe that the requirements being discussed would make it difficult to buy a home.
Among voters who would be most likely affected by the “Qualified Residential Mortgage (QRM)” requirement, mortgage holders and renters ages 18 to 54, the survey found 59 percent of the renters and 58 percent of those currently holding a mortgage opposed the QRM requirement and regarded it as an obstacle to buying a home.
"Those in Congress who believe that homeownership and housing choice should no longer be national priorities would be well-served to study the results of this poll and hear what the American people think," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "To put it another way, America's voters have spoken. If Congress abandons policies to support the goal of homeownership and to keep housing affordable, lawmakers could be in for a rude awakening in the 2012 elections."
Tags: NAHB, mortgage interest deduction, housing tax breaks, home equity loans, lines of credit, second mortgages, political parties, Reepublicans, Democrats, Independents, Tea Party
Source:
NAHB
A recent survey on behalf of the National Association of Home Builders (NAHB) shows that American voters are in no mood to have their long standing housing tax breaks messed with as 71 percent of the voters surveyed opposed eliminating the mortgage interest deduction and 63 percent opposed any efforts to reduce it.
Home equity loans and lines of credit were also sacred cows as a majority of the voters surveyed were also against cutting deductions on these second mortgages. A majority of the voters also rejected the elimination of the deduction for interest paid for a loan on a second home and limiting the amount of the deduction for those earning more than $250,000 per year or capping the deduction for home owners with mortgages over $500,000.
Candidates from either political party would suffer greatly if they supported eliminating the mortgage interest deduction with 63 percent of Republicans, 56 percent of Independents, 55 percent of Democrats and 61 percent of tea party supporters saying they would be less likely to support a candidate who favored killing the deduction.
When voters were asked if they believe the federal government should provide tax incentives to help promote homeownership, 79 percent of Democrats, 71 percent of Republicans and 68 percent of Independents agreed that they should.
Voters in the survey also tended to disagree with what Washington policymakers have been proposing as fixes for the housing crisis. In regards to the raising the down payment requirements for a home loan, 92 percent believe that the requirements being discussed would make it difficult to buy a home.
Among voters who would be most likely affected by the “Qualified Residential Mortgage (QRM)” requirement, mortgage holders and renters ages 18 to 54, the survey found 59 percent of the renters and 58 percent of those currently holding a mortgage opposed the QRM requirement and regarded it as an obstacle to buying a home.
"Those in Congress who believe that homeownership and housing choice should no longer be national priorities would be well-served to study the results of this poll and hear what the American people think," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "To put it another way, America's voters have spoken. If Congress abandons policies to support the goal of homeownership and to keep housing affordable, lawmakers could be in for a rude awakening in the 2012 elections."
Tags: NAHB, mortgage interest deduction, housing tax breaks, home equity loans, lines of credit, second mortgages, political parties, Reepublicans, Democrats, Independents, Tea Party
Source:
NAHB
Freddie Mac and CUNA Renew Alliance to Support Mortgage Services
June 14, 2011 (Shirley Allen)
Freddie Mac and the Credit Union National Association (CUNA) have renewed their alliance to provide a package of services for credit unions including tools designed to reach first-time homebuyers and low and moderate income homebuyers.
The renewed alliance allows credit unions access to Freddie Mac’s comprehensive set of technological services, mortgage products, and correspondent lending, including outreach initiatives.
CUNA member credit unions can get assistance and training on Freddie Mac’s CreditSmart, Get the Facts on Homeownership, Workforce Home Benefit (SM) and other tools designed to reach first-time home buyers and low and moderate income homebuyers.
Additional services available to credit unions include Freddie Mac’s automated underwriting service, Loan Prospector, and Freddie’s business-to-consumer website, Mortgagebot with Loan Prospector, for online mortgage lending.
"Extending our alliance with CUNA will enable participating credit unions to continue accessing a full range of correspondent mortgage lending services and competitive secondary market strategies," said James Cotton, vice president for regional and community lending at Freddie Mac. "Helping credit unions meet their members' mortgage needs underscores Freddie Mac's national mission to keep the mortgage market stable and liquid in good times and bad."
More information is available for CUNA credit unions on Freddie Mac’s website.
Tags: Freddie Mac, CUNA, credit unions, mortgage tools, first-time homebuyers, technological services, mortgage products
Freddie Mac and the Credit Union National Association (CUNA) have renewed their alliance to provide a package of services for credit unions including tools designed to reach first-time homebuyers and low and moderate income homebuyers.
The renewed alliance allows credit unions access to Freddie Mac’s comprehensive set of technological services, mortgage products, and correspondent lending, including outreach initiatives.
CUNA member credit unions can get assistance and training on Freddie Mac’s CreditSmart, Get the Facts on Homeownership, Workforce Home Benefit (SM) and other tools designed to reach first-time home buyers and low and moderate income homebuyers.
Additional services available to credit unions include Freddie Mac’s automated underwriting service, Loan Prospector, and Freddie’s business-to-consumer website, Mortgagebot with Loan Prospector, for online mortgage lending.
"Extending our alliance with CUNA will enable participating credit unions to continue accessing a full range of correspondent mortgage lending services and competitive secondary market strategies," said James Cotton, vice president for regional and community lending at Freddie Mac. "Helping credit unions meet their members' mortgage needs underscores Freddie Mac's national mission to keep the mortgage market stable and liquid in good times and bad."
More information is available for CUNA credit unions on Freddie Mac’s website.
Tags: Freddie Mac, CUNA, credit unions, mortgage tools, first-time homebuyers, technological services, mortgage products
Radian’s Delinquency Inventory Improves in May
June 14, 2011 (Shirley Allen)
Mortgage insurance provider Radian Guaranty Inc., reports improved performance in its delinquent loan inventory as the overall number of delinquent loans that it insures continued to drop in May, despite an uptick in delinquencies from the previous month.
Radian reports that the total number of loans in its delinquent inventory for May, 2011, was 114,193 compared to 115,020 in April. Radian’s quarterly financial report showed that at the end of the first quarter 2011, the delinquency inventory stood at 116,896, which compared to a delinquency inventory of 143,914 at the end of the same quarter, the previous year.
Likewise, not only has the number of delinquent loans in its inventory declined, the percentage of delinquent loans has also declined. At the end of the first quarter of 2010, 17.64 percent of loans in its inventory were delinquent, but at the end of the first quarter of 2011 that percentage had dropped to 15.52.
Despite the decline in total inventory, the number of new delinquencies increased month-over-month as 7,844 new delinquencies were reported in May 2011, compared to 7,222 in April.
Report highlights:
The information regarding new delinquencies and cures is reported to Radian from loan servicers. The accuracy of these reports may be affected by several factors, including the date on which the report is generated and by the timing of servicing transfers.
Tags: Radian, loan delinquencies, delinquent inventory, mortgage insurance, new delinquencies, cures, paids
Sources:
Radian
Radian
Mortgage insurance provider Radian Guaranty Inc., reports improved performance in its delinquent loan inventory as the overall number of delinquent loans that it insures continued to drop in May, despite an uptick in delinquencies from the previous month.
Radian reports that the total number of loans in its delinquent inventory for May, 2011, was 114,193 compared to 115,020 in April. Radian’s quarterly financial report showed that at the end of the first quarter 2011, the delinquency inventory stood at 116,896, which compared to a delinquency inventory of 143,914 at the end of the same quarter, the previous year.
Likewise, not only has the number of delinquent loans in its inventory declined, the percentage of delinquent loans has also declined. At the end of the first quarter of 2010, 17.64 percent of loans in its inventory were delinquent, but at the end of the first quarter of 2011 that percentage had dropped to 15.52.
Despite the decline in total inventory, the number of new delinquencies increased month-over-month as 7,844 new delinquencies were reported in May 2011, compared to 7,222 in April.
Report highlights:
| April 2011 | May 2011 | ||
| Primary New Insurance Written ($ in billions) | $0.7 | $0.7 | |
| Beginning Primary Delinquent Inventory (# of loans) |
116,896 | 115,020 | |
| Plus: New Delinquencies | 7,222 | 7,844 | |
| Less: Cures | (5,978) | (5,217) | |
| Less: Paids (including those charged to a deductible or captive) |
(2,528) | (2,613) | |
| Less: Rescissions and Denials | (592) | (841) | |
| Ending Primary Delinquent Inventory (# of loans) |
115,020 | 114,193 | |
The information regarding new delinquencies and cures is reported to Radian from loan servicers. The accuracy of these reports may be affected by several factors, including the date on which the report is generated and by the timing of servicing transfers.
Tags: Radian, loan delinquencies, delinquent inventory, mortgage insurance, new delinquencies, cures, paids
Sources:
Radian
Radian
Friday, June 10, 2011
Comment Period for Risk Retention Rules Extended to August 1st
June 10, 2011 (Chris Moore)
Regulators from the six federal agencies who were tasked with crafting the proposal for the risk retention rules for mortgages required under last year’s Dodd-Frank Finance Reform Bill have extended the deadline for the public comment period until August 1, 2011.
Although there are many parts to the risk retention proposal, the one part that has received the most attention concerns the rules regarding what defines a Qualified Residential Mortgage (QRM).
A QRM is a home loan that would exempt a mortgage lender from a 5 percent retention in each home loan that it originates and is packaged for securitization. If all the loan qualifications meet or exceed the requirements of a QRM, the bank would no longer be required to retain the 5 percent share of the loan and would have no future risk if the borrower should default.
Under the current proposal, a QRM loan would require mortgage lenders to retain the five percent stake in the mortgage loan if the borrower puts a down payment of less than a 20 percent (loan-to-value). The purpose of having the lenders retain a “risk” in the loan is to discourage them from making the same type of risky loans that led to the current housing crisis.
By virtue of being a higher risk, borrowers who do not meet QRM requirements are then expected to be charged higher fees and rates. Housing advocates predict that if the current QRM proposal were to become law, approximately one-third of potential homebuyers would be immediately taken off of the housing market.
But there is much more to the risk retention rules than the QRM proposal that could be just as damaging. The list below details additional rules that are being proposed that some housing experts believe could extend the current housing crisis for years:
- A QRM must be secured by a first lien mortgage only, cannot exceed 30 years and must be a one-to-four family property.
- The proposed rule prohibits the use of a junior lien in conjunction with a QRM to purchase home.
- Credit history requirement - A mortgage loan could qualify as a QRM only if the borrower was not currently 30 or more days past due, in whole or in part, on any debt obligation, and the borrower had not been 60 or more days past due, in whole or in part, on any debt obligation within the preceding 24 months. Further, a borrower must not have, within the preceding 36 months, been a debtor in a bankruptcy proceeding, had property repossessed or foreclosed upon, engaged in a short sale or deed-in-lieu of foreclosure, or been subject to a Federal or State judgment for collection of any unpaid debt.
- The proposed rules would prohibit QRMs from having, among other features, payment terms that allow interest-only payments or negative amortization. Borrowers would be prohibited from deferring interest or repayment of principal. “Balloon” payment loans would also be prohibited.
- Both fixed rate and adjustable rate mortgages (ARM)may qualify as a QRM, however ARMs interest rates would be restricted to no more than a two percent increase in any twelve month period and six percent for the life of the loan.
- Creditors who offer a loan with a prepayment penalty would also have to offer a loan without a prepayment penalty.
- Points and fees for a QRM may not exceed three percent of the total loan amount.
- 20 percent down payment requirement. There are various rules based upon the appraised value of the home…too many to list, but they can found on page 80.
- Debt ratio cannot exceed 28 percent for the house payment and 36 percent for total obligations.
- A QRM could not be assumable by any person who was not a borrower under the original mortgage transaction.
If you wish to comment on the proposed risk retention rules you can do so on any of the following websites: Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development.
You can read the proposal in its entirety on the Federal Reserve’s website.
Tags: risk retention proposal, QRM, Dodd-Frank, home loans, mortgage lenders, five percent retention, qualified residential mortgages
Source:
FHFA
LoanRateUpdate.com
Regulators from the six federal agencies who were tasked with crafting the proposal for the risk retention rules for mortgages required under last year’s Dodd-Frank Finance Reform Bill have extended the deadline for the public comment period until August 1, 2011.
Although there are many parts to the risk retention proposal, the one part that has received the most attention concerns the rules regarding what defines a Qualified Residential Mortgage (QRM).
A QRM is a home loan that would exempt a mortgage lender from a 5 percent retention in each home loan that it originates and is packaged for securitization. If all the loan qualifications meet or exceed the requirements of a QRM, the bank would no longer be required to retain the 5 percent share of the loan and would have no future risk if the borrower should default.
Under the current proposal, a QRM loan would require mortgage lenders to retain the five percent stake in the mortgage loan if the borrower puts a down payment of less than a 20 percent (loan-to-value). The purpose of having the lenders retain a “risk” in the loan is to discourage them from making the same type of risky loans that led to the current housing crisis.
By virtue of being a higher risk, borrowers who do not meet QRM requirements are then expected to be charged higher fees and rates. Housing advocates predict that if the current QRM proposal were to become law, approximately one-third of potential homebuyers would be immediately taken off of the housing market.
But there is much more to the risk retention rules than the QRM proposal that could be just as damaging. The list below details additional rules that are being proposed that some housing experts believe could extend the current housing crisis for years:
- A QRM must be secured by a first lien mortgage only, cannot exceed 30 years and must be a one-to-four family property.
- The proposed rule prohibits the use of a junior lien in conjunction with a QRM to purchase home.
- Credit history requirement - A mortgage loan could qualify as a QRM only if the borrower was not currently 30 or more days past due, in whole or in part, on any debt obligation, and the borrower had not been 60 or more days past due, in whole or in part, on any debt obligation within the preceding 24 months. Further, a borrower must not have, within the preceding 36 months, been a debtor in a bankruptcy proceeding, had property repossessed or foreclosed upon, engaged in a short sale or deed-in-lieu of foreclosure, or been subject to a Federal or State judgment for collection of any unpaid debt.
- The proposed rules would prohibit QRMs from having, among other features, payment terms that allow interest-only payments or negative amortization. Borrowers would be prohibited from deferring interest or repayment of principal. “Balloon” payment loans would also be prohibited.
- Both fixed rate and adjustable rate mortgages (ARM)may qualify as a QRM, however ARMs interest rates would be restricted to no more than a two percent increase in any twelve month period and six percent for the life of the loan.
- Creditors who offer a loan with a prepayment penalty would also have to offer a loan without a prepayment penalty.
- Points and fees for a QRM may not exceed three percent of the total loan amount.
- 20 percent down payment requirement. There are various rules based upon the appraised value of the home…too many to list, but they can found on page 80.
- Debt ratio cannot exceed 28 percent for the house payment and 36 percent for total obligations.
- A QRM could not be assumable by any person who was not a borrower under the original mortgage transaction.
If you wish to comment on the proposed risk retention rules you can do so on any of the following websites: Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development.
You can read the proposal in its entirety on the Federal Reserve’s website.
Tags: risk retention proposal, QRM, Dodd-Frank, home loans, mortgage lenders, five percent retention, qualified residential mortgages
Source:
FHFA
LoanRateUpdate.com
HAMP Permanent Modifications Approaching 700k
June 10, 2011 (Brian Michael)
The Treasury Department reports that a total of 699,053 permanent loan modifications have been started under the government’s Home Affordable Modification Program (HAMP) through the end of April, 2011. Permanent modifications in April numbered 28,867, which was less than the 36,827 recorded in March of 2011, but was in-line with the programs average for the last six months.
Mortgage servicers reported 29,011 new trial modifications were started in April bringing the total amount of homeowners in active trial modifications to 135,041 according to the Treasury’s Program Performance Report.
Homeowners who have received HAMP first lien permanent loan modifications have saved a total of $6.3 billion since the inception of HAMP in April 2009. The median savings for borrowers with active modifications is $526.06 which was 37% less than what their payment was before their loan modification.
Seventy-nine percent of homeowners who started trial modifications were at least 60 days or later delinquent at the start of the trial with the rest being up to 59 days late or current but in imminent default.
Homeowners who are in active permanent loan modifications gave the following primary reasons for their hardship:
- 60.7% experienced loss of income (curtailment of employment or unemployment)
- 11.4% reported excessive obligations
- 2.8% reported an illness to the principal borrower
Active permanent modifications by type were:
- 100% interest rate reduction
- 9.5% term extension
- 30.5% principal forbearance
Since June 2010, the average length of a trial modification was 3.5 months, down from 5.2 months for trials started before June 2010. Since that time, a larger percentage of trial modifications have also been converted to permanent modifications with 70 percent now being converted.
Since HAMP started, the total number of trial modifications numbered 1,588,034, with now less than half, 753,041, being canceled.
California continued to have the highest percentage of HAMP loan modifications, accounting for 24.0 percent of total activity. California to date has tallied 145,599 total HAMP permanent loan modifications.
Bank of America has had the most loan modifications with 155,636 total active modifications, followed by JPMorgan Chase with 104,970, and Wells Fargo Bank with 99,051 total active modifications.
Tags: Making Home Affordable, HAMP, loan modifications, trial modifications, permanent modifications, mortgage payment reductions, median payment reduction
Source:
Treasury Department
The Treasury Department reports that a total of 699,053 permanent loan modifications have been started under the government’s Home Affordable Modification Program (HAMP) through the end of April, 2011. Permanent modifications in April numbered 28,867, which was less than the 36,827 recorded in March of 2011, but was in-line with the programs average for the last six months.
Mortgage servicers reported 29,011 new trial modifications were started in April bringing the total amount of homeowners in active trial modifications to 135,041 according to the Treasury’s Program Performance Report.
Homeowners who have received HAMP first lien permanent loan modifications have saved a total of $6.3 billion since the inception of HAMP in April 2009. The median savings for borrowers with active modifications is $526.06 which was 37% less than what their payment was before their loan modification.
Seventy-nine percent of homeowners who started trial modifications were at least 60 days or later delinquent at the start of the trial with the rest being up to 59 days late or current but in imminent default.
Homeowners who are in active permanent loan modifications gave the following primary reasons for their hardship:
- 60.7% experienced loss of income (curtailment of employment or unemployment)
- 11.4% reported excessive obligations
- 2.8% reported an illness to the principal borrower
Active permanent modifications by type were:
- 100% interest rate reduction
- 9.5% term extension
- 30.5% principal forbearance
Since June 2010, the average length of a trial modification was 3.5 months, down from 5.2 months for trials started before June 2010. Since that time, a larger percentage of trial modifications have also been converted to permanent modifications with 70 percent now being converted.
Since HAMP started, the total number of trial modifications numbered 1,588,034, with now less than half, 753,041, being canceled.
California continued to have the highest percentage of HAMP loan modifications, accounting for 24.0 percent of total activity. California to date has tallied 145,599 total HAMP permanent loan modifications.
Bank of America has had the most loan modifications with 155,636 total active modifications, followed by JPMorgan Chase with 104,970, and Wells Fargo Bank with 99,051 total active modifications.
Tags: Making Home Affordable, HAMP, loan modifications, trial modifications, permanent modifications, mortgage payment reductions, median payment reduction
Source:
Treasury Department
May Housing Scorecard Shows Continued Weakness
June 10, 2011 (Chris Moore)
More than 4.8 million loan modification arrangements have been made to help keep homeowners in their homes between April 2009 and the end of March 2011 according to the Obama Administration’s May Housing Scorecard, with the total number of agreements more than double the number of foreclosure completions during the same period. However, the Administration reports that the overall housing market remains weak.
The government reports that 29,000 homeowners entered into a HAMP trial modification in April, and 29,000 homeowners received a permanent loan modification in the same month with a median monthly payment reduction of $526, a savings of 37 percent.
The Scorecard reports that the housing market remains fragile as data through May shows housing prices continue to remain weak, though a glimmer of hope appeared in this week's CoreLogic report showing a small month-over-month increase in home prices after nearly a year of declines.
Mortgage delinquencies continued a downward trend that is primarily attributed to mortgage servicers continuing to delay foreclosure proceedings as they review internal procedures resulting from the “robo-signing” controversy last year.
Foreclosure starts and completions remain below peak, but foreclosure inventories continue to increase with an estimated 4.2 million homes in some stage of the foreclosure process.
“The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market – despite growing evidence of progress in the broader economy,” said HUD Assistant Secretary Raphael Bostic. “The Administration remains committed to helping all homeowners who have been hit hard during this housing crisis, and as the Regional Spotlight shows our efforts have helped over 100,000 families avoid foreclosure in Phoenix. But we have much more work to do to reach the many households who still face trouble and to help the market recover.”
This month’s Scorecard was the first to highlight the progress of government modification efforts in Phoenix, Arizona, one of the hardest hit cities in the nation.
More than 65,000 government mortgage assistance interventions have been offered to area homeowners since mortgage modification efforts began in April 2009. The area has also had an estimated 40,000 to 42,000 proprietary modifications offered through HOPENOW Alliance servicers for a total of approximately 106,000 mortgage assistance interventions in the area.
These efforts have helped more Phoenix area homeowners keep their homes than the number of those who have lost their home, 104,500, to foreclosure.
Tags: May Housing Scorecard, Obama Administration, loan modification, foreclosure completions, monthly payment reduction, housing prices, mortgage delinquencies, foreclosure starts, foreclosure completions
Source:
HUD
More than 4.8 million loan modification arrangements have been made to help keep homeowners in their homes between April 2009 and the end of March 2011 according to the Obama Administration’s May Housing Scorecard, with the total number of agreements more than double the number of foreclosure completions during the same period. However, the Administration reports that the overall housing market remains weak.
The government reports that 29,000 homeowners entered into a HAMP trial modification in April, and 29,000 homeowners received a permanent loan modification in the same month with a median monthly payment reduction of $526, a savings of 37 percent.
The Scorecard reports that the housing market remains fragile as data through May shows housing prices continue to remain weak, though a glimmer of hope appeared in this week's CoreLogic report showing a small month-over-month increase in home prices after nearly a year of declines.
Mortgage delinquencies continued a downward trend that is primarily attributed to mortgage servicers continuing to delay foreclosure proceedings as they review internal procedures resulting from the “robo-signing” controversy last year.
Foreclosure starts and completions remain below peak, but foreclosure inventories continue to increase with an estimated 4.2 million homes in some stage of the foreclosure process.
“The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market – despite growing evidence of progress in the broader economy,” said HUD Assistant Secretary Raphael Bostic. “The Administration remains committed to helping all homeowners who have been hit hard during this housing crisis, and as the Regional Spotlight shows our efforts have helped over 100,000 families avoid foreclosure in Phoenix. But we have much more work to do to reach the many households who still face trouble and to help the market recover.”
This month’s Scorecard was the first to highlight the progress of government modification efforts in Phoenix, Arizona, one of the hardest hit cities in the nation.
More than 65,000 government mortgage assistance interventions have been offered to area homeowners since mortgage modification efforts began in April 2009. The area has also had an estimated 40,000 to 42,000 proprietary modifications offered through HOPENOW Alliance servicers for a total of approximately 106,000 mortgage assistance interventions in the area.
These efforts have helped more Phoenix area homeowners keep their homes than the number of those who have lost their home, 104,500, to foreclosure.
Tags: May Housing Scorecard, Obama Administration, loan modification, foreclosure completions, monthly payment reduction, housing prices, mortgage delinquencies, foreclosure starts, foreclosure completions
Source:
HUD
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