Declining underwriting standards are back! – Are Declining Downpayment Standards a Good Idea? – Tiam Iacono – refers to a WSJ aerticle – The changes, which are being done on a market-by-market basis, mean buyers in some parts of the country can now borrow 95% instead of 90% of a property’s value. Until recently, mortgage companies had tighter standards for these markets because of falling home prices. … Earlier this month, MGIC removed New Orleans, Dover, Del., Akron, Ohio, and four other areas in Ohio from its list of restricted markets. The moves followed the company’s decision in September to loosen restrictions on 11 markets, including Denver and St. Louis … – TheMessThatGreensapnMade
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*** Bank of America sells exec’s house for substantially less than asking price – By David Mildenberg – Bank of America, the biggest U.S. home lender, sold a home for its top housing executive for 44 percent less than its initial asking price set last year, property records show. Barbara Desoer, head of the bank’s home-loan and insurance unit, put her 4,500-square-foot house in Charlotte, N.C., on the market Aug. 1, 2008, for $1.675 million. The home sold on Nov. 22 for $930,500, according to a Multiple Listing Service report. – Seattle Times
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Fannie’s Christmas Present – A Delayed Repo – Bruce Krasting – … Assume that all of the lenders followed Fannie’s lead and suspended foreclosures from the 19th to the 3rd. That would be a pretty big deal. The number of foreclosure has now reached a level of 11,000 per day. So this break in the action by the lenders would defer as many as 160,000 homes from foreclosure. But that is only for two weeks. It just means the January/February numbers will have a bulge … other thoughts – Zero Hedge
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new reverse mortgage hybrid products? – Hybrid Concepts Look Good on Paper, Regulatory Approval Could be Lengthy – Combining a reverse mortgage with other financial products continues to be a topic debated in our industry and in the halls of Congress. An article from Investment News describes how companies like Sun Life Financial are developing a hybrid benefit linked products which could involve a reverse mortgage … – Reverse Mortgage Daily
has link – MetLife Releases Reverse Mortgage Guide for Consumers – MetLife Mature Market Institute (MMI) announced the release of The Essentials: Reverse Mortgages to help consumers make informed decisions regarding the use of home equity to help fund one’s retirement. – Reverse Mortgge Daily
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(MBS) The Inflation Bomb Hiding On The Fed’s Balance Sheet – John Carney – … Think of it this way. If the Fed bought a mortgage backed security for $100 but can only sell it for $90, there’s a 10% inflationary discount occurring. Which is to say, the Fed’s MBS has inflation built right into it. There’s no way out … – The Money Game @
Business Insider
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Mortgage Meltdown Continues – by Larry Doyle – While the equity market continues its ascent into the heavens, our housing market continues its descent into hell. How long can these two indicators continue their contradictory movements? – Sense on Cents
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lots of neat charts – Last chance for a 5% mortgage – Scott Grannis – Calafia Beach Pundit
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Thousands May Incorrectly Be Using Stimulus Tax Breaks – By LYNNLEY BROWNING – Thousands of American taxpayers incorrectly claimed more than $500 million in tax benefits under the Obama administration’s tax break for first-time home buyers, a government watchdog report said Tuesday. … The report said that as of July 25, 73,799 taxpayers had incorrectly claimed $504 million in credits in the program for first-time home buyers. … – NY Times
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Nearly 40% of Mortgages are now FHA, says NAR – By AUSTIN KILGORE – HousingWire