Over the past couple of years, one of the most troubling aspects of the economy has been the ailing housing market, and in particular the large volumes of homes that have fallen victim to the foreclosure crisis. Finally we get some evidence that things may be moving in the right direction again.

While no one will argue that we are out of the woods just yet, it does appear as things are at least starting to recovery slightly.

Continue reading End in Sight for the Foreclosure Crisis?

End in Sight for the Foreclosure Crisis? originally appeared on BloggingStocks on Sat, 20 Feb 2010 12:10:00 EST. Please see our terms for use of feeds.

The loans that got us into this mess were generally the first to fall. Variable rate mortgages written without documentation for people with sketchy credit histories shocked nobody as their slide became an avalanche. But, the good stuff is starting to follow. An increasing amount of fixed rate mortgages offered to borrowers with solid credit histories are feeling their ways to foreclosure. Blame unemployment for this one. When people can't work, it gets pretty hard to pay the mortgage.

Fixed rate, high quality mortgages had a foreclosure a year ago. Last quarter, it jumped to 33%, according to a Mortgage Bankers Association report. As this happened, the amount of homeowners behind on their payments or in foreclosure just set another record high ... for the ninth month in a row. Subprime mortgages are headed in the other direction. Low quality adjustable rate mortgages are now 16% of new foreclosures -- compared to 35% last year. And, more than 18% of Federal Housing Administration loans are anywhere from one payment behind to in foreclosure, with California, Nevada, Arizona and Florida worst off: together, they accounted for 44% of new foreclosures.

Continue reading Even the good die young? High-quality mortgages approaching foreclosure

Even the good die young? High-quality mortgages approaching foreclosure originally appeared on BloggingStocks on Fri, 20 Nov 2009 14:30:00 EST. Please see our terms for use of feeds.

Are things getting better on the mortgage front? From some of the recent data just published the answer is no.

In July, foreclosure filings, defined as a default notice, bank repossession, or auction sale, were up 7%. and 32% over a year earlier. This is according to Realty Trac's U.S. Foreclosure Market Report. One in every 355 homeowners had received a foreclosure filing.

Continue reading Mortgage defaults are now shifting to prime borrowers

Mortgage defaults are now shifting to prime borrowers originally appeared on BloggingStocks on Fri, 04 Sep 2009 14:00:00 EST. Please see our terms for use of feeds.

If you're wondering why Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) have been bombarded by selling pressure today, look no further than this Wall Street Journal article (subscription required). The newspaper reports that the Mortgage Bankers Association (MBA) is pushing for the government to split up Fannie and Freddie "into several smaller privately held companies that would issue mortgage related securities carrying an explicit government guarantee."

Under the terms of the proposal, Fannie and Freddie's offspring would no longer be permitted to sit on massive mortgage portfolios. Additionally, all mortgage-backed securities created by the duo would be backed by a federal insurance fund, replacing the rather abstract implied government guarantee that's currently in place.

Continue reading Fannie Mae, Freddie Mac plunge on MBA's proposed overhaul

Fannie Mae, Freddie Mac plunge on MBA's proposed overhaul originally appeared on BloggingStocks on Wed, 02 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.

There's good news and bad news about the mortgage market. The good news is that you can get your information from a variety of sources. The bad news? You really need to get your news from a variety of sources.

Conflicting reports Wednesday suggest that mortgage applications are up -- and down.

Continue reading Mortgage applications up and down: Who to believe?

Mortgage applications up and down: Who to believe? originally appeared on BloggingStocks on Thu, 13 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Over the past few years, the mortgage business has been virtually dead -- that is, until recently.

Why? The key driver, of course, is the plunge in interest rates (keep in mind that the Federal Reserve plans to buy up $500 billion in mortgages). In fact, you can get a fixed-rate mortgage loan for less than 5%. You'd have to go back to the 1950s to see those levels.

But there's a caveat: the mortgage growth is not for purchasing houses; instead, we are seeing a surge of refinancing activities. But, hey, this is a start, right?

In the first week of 2009, we saw the biggest jump in mortgage applications since 2003 (this is according to a report from the Mortgage Bankers Association). There was a 15.8% jump in the index.

Interestingly enough, it's still fairly difficult to secure a mortgage, especially as underwriting standards have increased. Basically, a large number of consumers have minimal levels of home equity as well as damaged credit.

Now, Fannie Mae is in the process of implementing new programs for troubled borrowers, which should help. What's more, Congress may introduce some new programs.

However, it is critical that housing prices increase again, which means the U.S. economy will need to once again get back on track.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Does jump in applications signal a mortgage boom? originally appeared on BloggingStocks on Sat, 17 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Mortgage applications drop to eight year low

Mortgage applications drop to eight year low originally appeared on BloggingStocks on Wed, 22 Oct 2008 14:12:00 EST. Please see our terms for use of feeds.

During last night's presidential debate (which he lost badly) Republican John McCain vowed that if elected he would order the U.S. Treasury Department to purchase "bad mortgages" to help people avoid foreclosure. It's an idea that deserves consideration.

According to Bloomberg News, the McCain campaign estimates that it would cost $300 billion, some of which would be diverted from the $700 billion rescue of Wall Street. The Arizona senator did not provide specifics during the debate. Democrat Barack Obama proposed a similar idea during a press conference last month, according to Bloomberg. These proposals raise many questions.

First of all, can the government afford to purchase both mortgages and mortgage-backed securities? How will the government determine who gets help? Many people bought homes they could not afford because of criminally lax lending standards at some banks. Others were hoodwinked by unscrupulous mortgage brokers into taking adjustable-rate mortgages when they qualified for cheaper fixed-rate 30-year loans. These individuals are the most deserving of the government's help. Officials should try and help other distressed mortgagers provided that they can afford their properties. Otherwise, they should be given assistance to find affordable housing.

Continue reading Should the government buy homes heading to forclosure?

Should the government buy homes heading to forclosure? originally appeared on BloggingStocks on Wed, 08 Oct 2008 11:30:00 EST. Please see our terms for use of feeds.

Mortgage applications decreased 9.3% for the week ended June 20, 2008, the Mortgage Bankers Association announced Wednesday.

The Mortgage Bankers Association's composite index of applications declined to 461.3, on a seasonally-adjusted basis from last week's 508.4. Compared to a year ago, the composite index is down 25.3% on an unadjusted basis.

Also, the Refinance Index decreased 12.1% to 1,212.2 from 1,378.6 the previous week and the seasonally adjusted Purchase Index decreased 7.4% to 333.4 from 360.2 one week earlier.

Mortgage rates dip

Meanwhile, the average rate for a 30-year fixed loan decreased slightly to 6.39% from 6.57% the prior week. The average rate for a 15-year fixed mortgage decreased to 5.95% from 6.14%.

Continue reading MBA weekly mortgage applications index falls 9.3%

MBA weekly mortgage applications index falls 9.3% originally appeared on BloggingStocks on Wed, 25 Jun 2008 14:21:00 EST. Please see our terms for use of feeds.

The Mortgage Bankers Association's composite index of applications declined 14.2% on a seasonally-adjusted basis to 637.6 from last week's 734.4.

The Refinance Index decreased 20.2% to 2,286.3 from 2,866.0 the previous week and the seasonally adjusted Purchase Index decreased 6.4% to 357.3 from 381.6 one week earlier.

Rates rise

Meanwhile, the average rate for a 30-year fixed loan rose to 6.04% from 5.74% the prior week. The average rate for a 15-year fixed mortgage increased to 5.60% from 5.27%.

Continue reading Weekly mortgage applications plunge 14% as rates rise

Weekly mortgage applications plunge 14% as rates rise originally appeared on BloggingStocks on Wed, 23 Apr 2008 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Martin Wolf: Don't scapegoat Greenspan for housing sector's woes

Martin Wolf: Don't scapegoat Greenspan for housing sector's woes originally appeared on BloggingStocks on Thu, 10 Apr 2008 15:15:00 EST. Please see our terms for use of feeds.

The Washington Post reports that the Mortgage Bankers Association (MBA) is getting what it feels is a raw deal on a mortgage for its Washington headquarters. Boo hoo! The MBA is buying a building there for $100 million, but is paying a higher interest rate on its mortgage as its income declines and the leasing market is slow leaving it with no tenants for the building.

This couldn't have happened to a nicer association. After all, the MBA encouraged people to take out subprime mortgages -- many of which went bad. Despite the Fed's rate cuts from 5.25% to 2.25% mortgage interest rates are up thanks to bankers' fear of lending. And the resulting economic slowdown is making it harder for the MBA to find tenants for its building.

Let's survey the damage to the MBA. First, its membership has declined 17% in the last year and it predicts a 10% to 15% decline in revenue as a result. Bankers are making the MBA put up about 10% more of a down payment than it had planned and the lack of tenants has moved its lender to increase the financing costs slightly. Perhaps there's justice in the universe. If not, at least MBA's predicament is giving it a taste of its own medicine.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

Mortgage Bankers Association struggles to pay its mortgage originally appeared on BloggingStocks on Mon, 07 Apr 2008 09:33:00 EST. Please see our terms for use of feeds.

MBA weekly mortgage index falls 1.9%, rates at 5-month high originally appeared on BloggingStocks on Wed, 12 Mar 2008 09:57:00 EST. Please see our terms for use of feeds.

A record 0.83% of mortgages were entering the foreclosure process in the last three months of 2007, compared to 0.54% for the same period in 2006, the MBA announced.

In addition, the delinquency rate reached 5.82% in Q4 2007 -- the highest level since 1985 -- up from 4.95% in Q4 2006.

Continue reading U.S. home foreclosures hit another record high in Q4

U.S. home foreclosures hit another record high in Q4 originally appeared on BloggingStocks on Thu, 06 Mar 2008 13:25:00 EST. Please see our terms for use of feeds.

Weekly mortgage applications decrease 3% on fewer purchases, refinancings originally appeared on BloggingStocks on Wed, 13 Feb 2008 10:10:00 EST. Please see our terms for use of feeds.

The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 3% last week to 1086.6 -- it's highest level since March 2004. The group's purchase index increased 12% and the refinancing gauge fell 1%.

Meanwhile, the average rate for a 30-year fixed loan rose to 5.61% from 5.60% the prior week. Rates have declined about one-half percentage point since the end of 2007. The average rate for a 15-year fixed mortgage increased to 5.09% from 5.04%.

Continue reading Weekly mortgage applications increase 3% on rise in purchases

Weekly mortgage applications increase 3% on rise in purchases originally appeared on BloggingStocks on Wed, 06 Feb 2008 12:06:00 EST. Please see our terms for use of feeds.

Mortgage application volume increased 7.5% for the week ended Jan. 25, 2008, the Mortgage Bankers Association's announced Wednesday.

The MBA's application index rose to 1,054.9 from 981.5 the previous week. The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

Refinance volume pushed the index higher. Refinance application volume increased 22.1%, while purchase volume tumbled 17.7%. Refinance applications accounted for 73% of total applications.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 1,054.9 means mortgage application activity is 10.549 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.

Continue reading Mortgage applications rise with refinance activity

Mortgage applications rise with refinance activity originally appeared on BloggingStocks on Wed, 30 Jan 2008 11:52:00 EST. Please see our terms for use of feeds.

Continue reading Refinance applications again rise from previous week on lower rates

Refinance applications again rise from previous week on lower rates originally appeared on BloggingStocks on Wed, 23 Jan 2008 13:22:00 EST. Please see our terms for use of feeds.

Refinance volume spiked 53.9% during the week, while purchase activity was up 14.7%. Refinance applications accounted for 57.7% of total applications, up from 50.9% the previous week. (With all the speculation surrounding future rate cuts, wouldn't homeowners want to wait and see what happens at the next Federal Open Market Committee meeting in two-plus weeks?)

Continue reading Mortgage applications spike 32%

Mortgage applications spike 32% originally appeared on BloggingStocks on Wed, 09 Jan 2008 10:35:00 EST. Please see our terms for use of feeds.

Continue reading Mortgage applications hit four-year low

Mortgage applications hit four-year low originally appeared on BloggingStocks on Thu, 03 Jan 2008 10:10:00 EST. Please see our terms for use of feeds.