Today’s News Synopsis:
Fitch reports that 60 percent of borrowers from 06 to 07 have negative equity and owe more than their homes are worth. Interthinx’s Mortgage Fraud Index estimates that fraud decreased by 4 percent from Q1 to Q2 of 2009, but increased by 7 percent from Q2 of 2008. Statistics from MDA DataQuick show that Southern California home sales increased by 5 percent from October of 2008.
In The News:
Housing Wire – “Fitch Sees 60% of Current RMBS Borrowers Underwater” (10-13-09)
“The majority — 60% — of remaining performing borrowers within ‘06- and ‘07-vintage residential mortgage-backed securities (RMBS) bear negative home equity, meaning they are underwater on their mortgages and owe more than their houses are worth”
Housing Wire – “Treasury to Announce New Program to Avoid Foreclosure” (10-13-09)
“HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to ‘make a graceful exit’ from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.”
Housing Wire – “Interthinx Fraud Report Links Mortgage Fraud, Foreclosure: DBRS” (10-13-09)
“Interthinx’s Mortgage Fraud Index calculates fraud risk based on the frequency of mortgage fraud activity detected in applications processed by Interthinx’s FraudGUARD system. The Q209 Fraud Index dropped 4% from Q109 but jumped 7% from the year before, according to the report.”
Housing Wire – “House Prices Decline 0.2% in August: IAS” (10-13-09)
“House prices declined 0.2% from July to August, the second month of declines after a fourth-month-long rally that brought a 2.8% increase earlier this year, reported Integrated Asset Services (IAS). The last time national home prices were at the August 2009 level was in February 2005, and prices in August this year were 8% lower than the prices in August 2008, the default management and residential collateral valuation service provider said.”
DQNews – “Southern California home sales inch up; median price steady” (10-13-09)
“Last month 21,539 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 0.2 percent from 21,502 in August and up 5.1 percent from 20,497 a year earlier, according to MDA DataQuick of San Diego.”
Bloomberg – “JPMorgan Pitches Interest-Only Mortgages to Boost Obama Plan” (10-13-09)
“Banks will push the Obama administration to expand its mortgage-modification program to allow interest-only periods on reworked loans, seeking to bring more homeowners into the initiative while recognizing concern that it may only postpone defaults, according to JPMorgan Chase & Co.”
Reuters – “BofA, Chase executives say US housing still fragile” (10-13-09)
“Executives from two of the United States’ biggest home mortgage lenders said the nation’s housing market is still in a tenuous state despite signs of stability over the summer months.”
Inman – “First American offers free market reports” (10-13-09)
“First American CoreLogic has launched a new service, ePropertyWatch, that provides homeowners with e-mail updates on their property value, recent sales, price trends and foreclosure activity in their neighborhood.”
Inman – “Economists mixed on California’s outlook” (10-13-09)
“Drastic cutbacks in new-home construction have helped reduce inventories of homes for sale in California faster than expected, and falling home prices and low interest rates are making owning look like a better deal than renting for many, according to Richard Green, director of the Lusk Center for Real Estate at the University of Southern California.”
Inman – “Fewer sellers slash asking price” (10-13-09)
“Fewer sellers were willing to reduce their home’s asking price in September than they were a year ago, but 44 percent of listings in 28 markets tracked by ZipRealty had seen at least one price reduction, the company said in releasing the results of a monthly survey on price reductions.”
California Real Estate Investing News is a post from: The Norris Group