Seattle Heat Pump Charges - From A Dependable Heat Pump Useful resource

Local government official says Tuesday's airstrikes took place in Orakzai tribal area, a known militant stronghold

Source: http://www.voanews.com/english/news/Pakistani-Airstrikes-Kill-17-Suspected-Militants-122863299.html

Vacation Properties Loans and Mortgages Household Moving House Plans

The US housing market may be entering a "third stage" of foreclosures according to the MBA's Chief Economist Jay Brinkman.

The initial fallout from subprime and option ARM mortgages constituted the first stage. The second stage was seen when systemic challenges posed to the financial system by evolving recession manifested themselves in the housing market (credit availability down, prices down, demand down, all at a time of unprecedented inventory of homes). Now, in the third stage, we are seeing the first signs of potential recovery.

The press conference accompanied the release of the MBA's First Quarter National Delinquency Survey released by MBA which showed that, in the first quarter the seasonally adjusted foreclosure rate was 8.32 percent, an increase of seven basis points from the previous quarter but down 174 basis points from the same period in 2010. The non-seasonally adjusted rate was 7.79 percent, down 117 basis points from Q4. The increase in the seasonally adjusted rate was due to a nine basis point bump in the 30-day delinquent category, now at 3.35 percent. The delinquency rate includes loans that are at least one payment past due but does not include loans in foreclosure.

Brinkmann said that national foreclosure rates are misleading because they are dominated by areas that are large and have outsized problems such as Florida. The numbers of homes in foreclosure in Florida are larger than the combined total of home loans outstanding in 22 U.S. states and the top five states in terms of foreclosures account for more than half of the nation's total. If those states are removed from the equation he said, there are clear signs of a market on the mend. In Q1 38 states had foreclosure rates below the national average.

Short-term delinquencies remain at pre-recession levels. Loans 90 days or more delinquent have now dropped for five straight quarters and are at their lowest level since the beginning of 2009, 3.62 percent. Foreclosure starts are at 1.08 percent, the lowest level since the end of 2008 following a 19 basis point drop, the second largest ever. The percentage of loans somewhere in foreclosure is down from last quarter's record high of 4.64 percent to 4.52 percent, one of the largest drops MBA has ever seen although, Brinkmann said, the reasons for the drop differ from market to market. The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 8.10 percent, a decrease of 50 basis points from last quarter, and a decrease of 144 basis points from the first quarter of last year.

The combined percentage of loans in foreclosure or at least one payment past due was 12.31 percent on a non-seasonally adjusted basis, a 129 basis point decline from 13.60 percent last quarter.

By loan type the seasonally adjusted rate increased from 5.48 percent to 5.50 percent from the fourth quarter for prime loans, from 23.09 percent to 24.01 percent for subprime loans, 6.67 percent to 6.93 percent for VA loans. FHA rates declined 24 percent to 12.03 percent. On a seasonally adjusted basis the rate expressed in basis points declined 182 for prime, 320 for subprime, 112 for FHA, and 103 for VA loans on a year-over-year basis.

For the first time the Delinquency Report breaks down loans by type and year of origination and compares the incidence of delinquency for each type against its presence in the portfolio. Loans of all types originated prior to 2005 make up nearly one third of the existing portfolio but constitute only 21 percent of delinquent loans. In each subsequent year until 2009 the incidence of delinquencies represents a higher share of the portfolio than do originations from that period. Eleven percent of the loans originated in 2005 but 17 percent of delinquencies are from that loan vintage. In 2006 is was 11 percent v 26 percent; in 2007 10 percent against 22 percent, while in 2008 originations shrunk to 8 percent but 9 percent of the delinquencies are from that group.

"Of particular importance is that the drop in the percentage of loans 90 days or more past due was driven by improving numbers for loans originated between 2005 and 2007. These are the loans that drove the mortgage market collapse and now represent about 31 percent of loans outstanding but 65 percent of the loans seriously delinquent. Given that loans originated during this period are now past the point where loans normally default, and that loans originated since then generally have better credit quality, mortgage performance should continue to improve," Brinkmann said.

The rate of foreclosure activity in judicial states is continuing to rise and is now near 7 percent while the rate is dropping in non-judicial states and is now close to 3 percent. This information is confounded by the actual states that fall into the two categories. Only three non-judicial states rank above the national average and Florida with over a 14 percent rate is a judicial state. However, Brinkmann noted that the states with the biggest increases in the number of loans in foreclosure were Florida, New Jersey, and Illinois, all states with judicial processes while the six states with the largest decreases were California, Arizona, and Michigan, non-judicial jurisdictions. However, all six States recorded declines in 90+ day delinquencies and in foreclosure starts. It is the laws in judicial states that lengthen the timeline and increase the number of loans that sit in foreclosure, Brinkmann said.

On a seasonally adjusted basis, the overall delinquency rate increased for all but FHA loans, with the biggest increases coming in the subprime categories. The seasonally adjusted delinquency rate stood at 4.59 percent for prime fixed loans, 11.25 percent for prime ARM loans, 22.04 percent for subprime fixed loans, 26.31 percent for subprime ARM loans, 12.03 percent for FHA loans, and 6.93 percent for VA loans.

The percentage of loans in foreclosure, also known as the foreclosure inventory rate, decreased 12 basis points overall to 4.52. The foreclosure inventory rate for prime fixed loans, which make up the largest portion of the survey (accounting for 63 percent of all loans outstanding), decreased eight basis points to 2.59 percent. The rate for prime ARM loans decreased 69 basis points from last quarter to 9.53 percent. Subprime fixed loans saw an increase of 67 basis points to 10.53 percent, which is a new record high in the survey. The rate for subprime ARM loans increased 26 basis points to 22.26 percent, while the rate for FHA loans increased five basis points to 3.35 percent and the rate for VA loans increased four basis points to 2.39 percent.

The foreclosure starts rate decreased 16 basis points for prime fixed loans to 0.68 percent, 42 basis points for prime ARM loans to 2.38 percent, 19 basis points for subprime fixed to 2.56 percent and 57 basis points for subprime ARMs to 3.67 percent. The foreclosure starts rate also decreased nine basis points for FHA loans to 0.93 percent and 15 basis points for VA loans to 1.02 percent.

In answer to a reporter's question about th possibility banks were holding REO off of the market, Brinkmann said there might be isolated instances where a bank has determined a property would not sell at any time, but certainly no concerted effort in that respect. There is, he said, instability in cartels that do not allow that type of conspiracy to have any success.

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Source: http://www.mortgagenewsdaily.com/05192011_delinquencies_mba.asp

Real Estate Vacation Properties Loans and Mortgages Household Moving

Slowdown helps keep market stable, but backlog of properties is growing.

Source: http://realestate.msn.com/article.aspx?cp-documentid=28868740

Realty Market Realty Economy Interest Rates

Today Trulia released some exciting news for CENTURY 21 Brokerages across the country:� Trulia and Century 21 Real Estate LLC have entered an agreement to offer Trulia Premium Listings as part of Century 21’s Showcase Advantage listing program. � For a limited time, Century 21 brokerages will receive discounts up to 75% off regular pricing [...]

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Real Estate Agents Housing Market Mortgage Home Loan

Know for its opulence, larger-than-life tourist attractions and luxurious lifestyles, Dubai and its wealthy residents were seemingly immune to the financial turbulence that rippled across the globe in recent years. Not the case. ArabianBusiness.com reports today that the first-ever foreclosed home in Dubai, a modest villa in “The Springs,” was sold by Barclays bank for [...]

Source: http://blog.foreclosure.com/2011/05/first-ever-foreclosed-home-in-dubai-sold-by-barclays-for-332145/

Luxury Home Prices Mortgage Rescue Scams Real Estate Vacation Properties

The recording site for rock legends like Bob Dylan, Eric Clapton and others has been listed for sale.

Source: http://www.zillow.com/blog/2011-05-25/malibus-famed-shangri-la-jamming-site-for-dylan-clapton-listed-for-4-1m/

Realty Market Realty Economy Interest Rates

Like many of us in this business I have been awe struck by the rate of decline in almost everything related to the housing industry over the last...

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Home Sales Outlook Housing Starts President Obama Hope for home owners

Source: http://blog.foreclosure.com/2011/05/loan-modification-trial-payment-trap-detailed-on-nbc-news-video/

Household Moving House Plans Home Warranties Commercial & Investment

Today, we released the latest results of an ongoing survey about American attitudes toward foreclosed homes that we’ve been teaming up with RealtyTrac on since 2008. Lately, we’ve been hearing a lot about falling home values and the flood of foreclosures that are still on the market.
Given these market factors, we wanted to see how [...]

Source: http://feedproxy.google.com/~r/TruliaBlog/~3/6L9zyxTYQ7o/

Most Expensive Homes Luxury Home Prices Mortgage Rescue Scams Real Estate

Like many of us in this business I have been awe struck by the rate of decline in almost everything related to the housing industry over the last...

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Foreclosure Homes Realty Market Realty Economy

This morning, President Obama wrapped up the G-8 Summit in Deauville, France, and held a bilateral meeting with French President Nicholas Sarkozy of France. In a statement following his meeting with President Sarkozy, President Obama commented on the “enormous convergence of approaches and views on the challenges that we face around the world” including changes in the Middle East and North Africa. The President also discussed the progress made in Libya:

We agreed that we have made progress on our Libya campaign, but that meeting the U.N. mandate of civilian protection cannot be accomplished when Qaddafi remains in Libya directing his forces in acts of aggression against the Libyan people. And we are joined in resolve to finish the job.

We discussed the enormous opportunities as well as challenges that are presented by the Arab Spring, and shortly we’ll be discussing in depth how we can fully support countries like Egypt and Tunisia, not only as they transition to democracy but also ensuring that that democratic transition is accompanied by economic growth, which can provide more opportunities for all the people, particularly the young people in the region.

Later in the day, President Obama travelled to Warsaw, Poland where he participated in wreath laying ceremonies at both the Tomb of the Unknown Soldier and the Warsaw Ghetto Memorial. The President also met with Jewish community leaders and Holocaust survivors at the Warsaw Ghetto Memorial.

President Barack Obama lays a wreath at the Warsaw Ghetto Memorial in Warsaw, Poland, May 27, 2011. (Official White House Photo by Lawrence Jackson)

President Barack Obama visits with Jewish community leaders and Holocaust survivors at the Warsaw Ghetto Memorial in Warsaw, , May 27, 2011. (Official White House Photo by Lawrence Jackson)

Source: http://www.whitehouse.gov/blog/2011/05/27/wrapping-g-8-summit-and-heading-poland

Mortgage Crisis Real Estate Agents Housing Market Mortgage

Click here to see the video.

Yesterday morning, before traveling to Arlington National Cemetery for the Memorial Day Service, President Obama made a Department of Defense personnel announcement, nominating Gen. Dempsey to be the Chairman of the Joint Chiefs, Admiral Winnefeld to be Vice Chairman of the Joint Chiefs, and Gen. Odierno as Army Chief of Staff. The President urged the Senate to confirm these nominees as soon as possible and explained what he values most in advisors:

Source: http://www.whitehouse.gov/blog/2011/05/31/president-barack-obama-fills-out-his-new-national-security-team

House Plans Home Warranties Commercial & Investment Homes

Fifty percent of all home buyers last year were first time buyers. This is the largest share we?ve seen of this segment in nearly 20 years. If you?re not actively marketing to this growing niche, you?re missing out on a key market. Here are three quick tips for marketing to and gaining more business from [...]

Source: http://www.homefinder.com/news/opening-doors/2011/04/25/marketing-to-first-time-home-buyers/

Real Estate Agent Foreclosure Homes Realty Market Realty

Maintaining your clients? property safety can be difficult.� With many people going in and out theft can be a major issue.� Especially for larger items, thieves can case a home as a potential buyer and come back later.��This can cause sellers to be nervous to have�visitors without you there or just in general.� As a [...]

Source: http://www.homefinder.com/news/opening-doors/2011/02/09/home-security-for-your-sellers/

Waterfront Homes Real Estate Agent Foreclosure Homes Realty Market

Catch them while you can. That’s the opportunistic approach that many investors in major real estate markets such as Detroit, Mich., Las Vegas, Nevada, Miami, Fla., Phoenix, Ariz., and Tampa, Fla., are taking as home prices plunge at or below 2002 levels. Foreclosed homes and other discounted distressed deals are being “snapped up” with a [...]

Source: http://blog.foreclosure.com/2011/05/foreclosed-homes-low-prices-and-deals-too-good-to-pass-up-on/

Fannie Mae Freddie Mac Mortgage Crisis Real Estate Agents

Letter to the Editor

Source: http://feedproxy.google.com/~r/inmannews/~3/1EEmhshxOaI/short-sale-agents-buyers-get-short-end-stick

Loans and Mortgages Household Moving House Plans Home Warranties

President Barack Obama and President Bronislaw Komorowski review troops during the arrival ceremony in the courtyard of the Presidential Palace in Warsaw, Poland, May 28, 2011. A member of the Ceremonial Army Garrison stands with them. (Official White House Photo by Lawrence Jackson)

Today President Obama was in Warsaw, Poland where he held a bilateral meeting Polish President Bronis?aw Komorowski and participated a discussion on democracy with President Komorowski and NGO’s.

President Barack Obama reaches to shake hands with President Bonislaw Komorowski of Poland following their statements to the press at the Presidential Palace in Warsaw, Poland, May 28, 2011. (Official White House Photo by Pete Souza)

Later in the day, the President met Polish Prime Minister Donald Tusk and held a joint press conference.

President Barack Obama and Polish Prime Minister Donald Tusk make remarks during a press conference at the Chancellery Building in Warsaw, Poland, May 28, 2011. (Official White House Photo by Lawrence Jackson)

Before heading back to Washington, the President visited the memorial to the victims of the Smolensk plane crash at the Field Cathedral of the Polish Military.

President Barack Obama pays his respects while visiting the memorial to the victims of the Smolensk plane crash at Field Cathedral of the Polish Military in Warsaw, Poland, May 28, 2011. (Official White House Photo by Lawrence Jackson)

Source: http://www.whitehouse.gov/blog/2011/05/28/photos-president-obama-poland

Loans and Mortgages Household Moving House Plans Home Warranties

Editor’s Note: Champions of Change is a weekly initiative to highlight Americans who are making an impact in their communities and help our country rise to the many challenges of the 21st century.

Recently I was honored to join the “Champions of Change” discussion at the White House during National Transportation Week. We were asked to focus on transportation workforce issues, a very timely topic, and I am pleased to have this opportunity to provide further thoughts.

I am proud to be part of the transportation construction industry because we put people to work, improve the nation’s quality of life and enable our economy to be more competitive.

Several participants in the White House meeting mentioned the importance of reauthorizing the federal surface transportation and aviation programs. If we really want to put Americans to work, there is no better way than by passing long-term, well-funded versions of these important measures. The long-term certainty of federal transportation investment will give the industry a much clearer view of our future market opportunities. That will enable us to make additional investments in human capital, as well as equipment and supplies that will put even more Americans to work.

Source: http://www.whitehouse.gov/blog/2011/05/25/champions-change-investing-infrastructure-more-competitive-economy

Foreclosures Home Sales Outlook Housing Starts President Obama

�
1.�� Your Competitor is Talking About Your Marketing Plan. �The marketing plan is the #1 reason sellers chose an agent and the #3 reason agents...

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Home Loan Short Sale Waterfront Homes Real Estate Agent

WSJ's Nick Timiraos has the story of reforms proposed that could effectively eliminate the government's Fannie Mae and Freddie Mac mortgage agencies. (Photo by Win McNamee/Getty Images)

Source:
http://online.wsj.com/video/news-hub-end-of-fannie-mae-and-freddie-mac/88FA09C0-11FD-4786-A9EF-FA69A44EAE4F.html

Foreclosures Home Sales Outlook Housing Starts President Obama

WHO warns much work remains to be done to reduce the millions of premature deaths that occur every year from tobacco-related illnesses

Source: http://www.voanews.com/english/news/health/WHO-Global-Tobacco-Usage-leveling-off-122821284.html

Freddie Mac Mortgage Crisis Real Estate Agents Housing Market

In a few weeks House Republicans are expected to release their budget plan for the coming year. It is not 100% clear now whether it will include a comprehensive overhaul of entitlement programs like Medicare and Social Security. I am hearing that it will not.

However, Rep. Paul Ryan, the Chairman of the House Budget Committee is to be commended for his willingness to take on the issues that are central to our long-run fiscal imbalance -- Social Security and Medicare. More specifically, Medicare. Because health care spending is the biggest issue. You can read more about that in a previous blog post.

Ryan's solution to Medicare's funding problem is to transform the system into a voucher program.

Future retirees would get a voucher -- effectively a check -- to cover a portion of the cost of buying their health insurance. Those making more money would get a smaller voucher. Lower income beneficiaries would get a larger voucher. If the price of buying medical coverage rises faster than the voucher, beneficiaries would pay more out of pocket. Here is how the Congressional Budget Office described the impact in a letter to Ryan:

Beneficiaries would . . . face higher premiums in the private market for a package of benefits similar to that currently provided by Medicare. Moreover, the value of the voucher would grow significantly more slowly than CBO expects that Medicare spending per enrollee would grow under current law. Beneficiaries would therefore be likely to purchase less comprehensive health plans or plans more heavily managed than traditional Medicare, resulting in some combination of less use of health care services and less use of technologically advanced treatments than under current law. Beneficiaries would also bear the financial risk for the cost of buying insurance policies or the cost of obtaining health care services beyond what would be covered by their insurance.

This is a fundamentally different approach to Medicare, but one that holds the promise of trimming spending dramatically. If beneficiaries saw more of the true cost of their health insurance, they are likely to demand more cost savings from providers. Or they will trim spending on treatments they deem discretionary.

So why isn't Ryan likely to propose this plan next month? Because the public already doesn't want any part of it. A recent poll by the Pew Research Center found most Americans don't want Congress to cut spending on Medicare.

We're still caught in a world where the public sees the fiscal cure as being worse than the disease of living beyond our national means.

Source: http://www.pbs.org/nbr/blog/2011/03/vouchers_and_medicare.html

Foreclosure Homes Realty Market Realty Economy

�An effective social media program requires a significant time investment - and a significant investment in time does not guarantee an effective...

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Celebrity Foreclosures Most Expensive Homes Luxury Home Prices Mortgage Rescue Scams

After a marathon tour of seven properties in one day, do you worry your buyers will get overwhelmed and have a hard time keeping each house straight? TourNarrator, available in the Apple App Store, was designed to prevent just that by letting you capture and recap showings instantly on your iPhone. With TourNarrator, you can [...]

Source: http://www.homefinder.com/news/opening-doors/2011/04/25/instantly-recap-showings-with-tour-narrator/

Mortgage Home Loan Short Sale Waterfront Homes

Letters from the Home Front

Source: http://feedproxy.google.com/~r/inmannews/~3/pkf2ueCBjnA/a-real-estate-pay-playbook-why-commissions-work

Foreclosures Home Sales Outlook Housing Starts President Obama

"This thing could have been over a long time ago if we had brought the full weight of American air power to bear on him," says US senato

Source: http://www.voanews.com/english/news/africa/McCain-Gadhafi-May-Crack-122799714.html

Foreclosures Home Sales Outlook Housing Starts President Obama

Ever wonder how raw sewage and floating garbage end up in New York City's waterways? WSJ's Christina Tsuei reports on how combined sewer overflows work and how the city plans to use green techniques to improve its waters.

Source:
http://online.wsj.com/video/when-it-rains-it-pours--raw-sewage/09CCE8F6-36B5-47D6-B456-9EBDF6816374.html

Realty Market Realty Economy Interest Rates

Ever wonder how raw sewage and floating garbage end up in New York City's waterways? WSJ's Christina Tsuei reports on how combined sewer overflows work and how the city plans to use green techniques to improve its waters.

Source:
http://online.wsj.com/video/when-it-rains-it-pours--raw-sewage/09CCE8F6-36B5-47D6-B456-9EBDF6816374.html

Realty Market Realty Economy Interest Rates

Memorial Day is a time when our nation honors those fallen men and women of the military who have paid the ultimate price to defend the United States. It is also a time when we should reflect on what we can and are doing to support our active duty veterans who hope to one day successfully complete their missions and come home safely. These veterans are also seeking a piece of the “American Dream” — to own a home, have a good job, and receive a good wage from jobs created for them by a grateful nation.

To achieve this, I have begun an employment campaign based on the vision of “Good Jobs for Everyone.” Our goal is to assist veterans with resources and expertise necessary to obtain meaningful careers and maximize their employment opportunities.

Secretary Solis honors the men and women of the United States military.

Source: http://www.whitehouse.gov/blog/2011/05/27/memorial-day-honoring-our-fallen-military-while-supporting-active-duty-personnel

Economy Interest Rates Celebrity Foreclosures Most Expensive Homes

Can someone say fiii-essss-taaaa?! Last Friday, Marketing @Trulia celebrated our version of this memorable holiday by hosting Seis de Mayo! And in true celebratory fashion, we commenced the occasion with cervesas, la musica, hot pepper eating contest and wrestling matches. We could go on and tell you how much fun everyone had, but we’ll let [...]

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Foreclosures Home Sales Outlook Housing Starts President Obama

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 13, 2011.

The MBA's loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a falling mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out lower monthly payments. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (may boost consumer spending. It also allows debtors to pay down personal liabilities faster. A trend of declining purchase applications implies home buyer demand is shrinking.

Excerpts from the Release...

The Market Composite Index, a measure of mortgage loan application volume, increased 7.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7.1 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 3.6 percent.

The Refinance Index increased 13.2 percent from the previous week and is at its highest level since the week ending December 10, 2010. The four week moving average is up up 7.2 percent for the Refinance Index. The refinance share of mortgage activity increased to 66.7 percent of total applications from 63.1 percent the previous week. This is the largest refinance share observed since late January.

The seasonally adjusted Purchase Index decreased 3.2 percent from one week earlier. The unadjusted Purchase Index decreased 3.3 percent compared with the previous week and was 1.7 percent lower than the same week one year ago. The four week moving average is down 2.9 percent for the seasonally adjusted Purchase Index.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.60 percent from 4.67 percent, with points decreasing to 0.94 from 1.10 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year rate recorded in the survey since the end of November 2010. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.75 percent from 3.81 percent, with points increasing to 1.22 from 1.05 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year rate recorded in the survey since early November 2010. The effective rate also decreased from last week.

The adjustable-rate mortgage (ARM) share of activity decreased to 6.3 percent from 6.5 percent of total applications from the previous week.

"The 30-year fixed mortgage rate is now 53 basis points below its 2011 peak, and has decreased for five straight weeks," said Michael Fratantoni, MBA's Vice President of Research. "Over this five week span, the refinance index has increased by about 33 percent. Refinance application volumes remain about 50 percent below the most recent peak last October."

"Right now we're witnessing the beginnings of a mini-refinance boom in the primary mortgage market, but there has been little activity in the secondary market that would indicate increased rate locking by consumers." says MND's Managing Editor Adam Quinones. "However, if conventional 30-year rates reach 4.25%, we'd expect to see a mini-boom scenario play out. There is much stored demand in the system as many borrowers missed the boat on record low rates in October and early November. This crowd is waiting in the wings for those rates to return. Whether or not that happens is still very much up in the air"

READ MORE ABOUT A POTENTIAL SHIFT "DOWN IN COUPON"

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Source: http://www.mortgagenewsdaily.com/05182011_mba_applications.asp

Luxury Home Prices Mortgage Rescue Scams Real Estate Vacation Properties

Source: http://blog.foreclosure.com/2011/05/loan-modification-trial-payment-trap-detailed-on-nbc-news-video/

Luxury Home Prices Mortgage Rescue Scams Real Estate Vacation Properties

Foreclosures are few among the nonprofit's low-income borrowers.

Source: http://realestate.msn.com/article.aspx?cp-documentid=28809528

Hope for home owners Fannie Mae Freddie Mac Mortgage Crisis

President spent much of the trip working to reassure Europeans that the transatlantic alliance is still important to the United States

Source: http://www.voanews.com/english/news/europe/Obama-Reaffirms-US-Europe-Bond-122803319.html

Household Moving House Plans Home Warranties Commercial & Investment

In his inaugural address, Goodluck Jonathan vowed to work with legislative and judicial branches of government

Source: http://www.voanews.com/english/news/africa/west/Nigerian-President-Vows-to-Strengthen-Democratic-Rule-122819694.html

Realty Market Realty Economy Interest Rates

Editor’s Note: Champions of Change is a weekly initiative to highlight Americans who are making an impact in their communities and help our country rise to the many challenges of the 21st century.

Recently I was honored to join the “Champions of Change” discussion at the White House during National Transportation Week. We were asked to focus on transportation workforce issues, a very timely topic, and I am pleased to have this opportunity to provide further thoughts.

I am proud to be part of the transportation construction industry because we put people to work, improve the nation’s quality of life and enable our economy to be more competitive.

Several participants in the White House meeting mentioned the importance of reauthorizing the federal surface transportation and aviation programs. If we really want to put Americans to work, there is no better way than by passing long-term, well-funded versions of these important measures. The long-term certainty of federal transportation investment will give the industry a much clearer view of our future market opportunities. That will enable us to make additional investments in human capital, as well as equipment and supplies that will put even more Americans to work.

Source: http://www.whitehouse.gov/blog/2011/05/25/champions-change-investing-infrastructure-more-competitive-economy

Freddie Mac Mortgage Crisis Real Estate Agents Housing Market

Federal Reserve Governor Elizabeth Duke told an audience that while financial education has always been important in helping consumers make better economic decisions, the recent economic crisis has shifted the playing field, making financial education even more critical.

Duke spoke at a conference on the "Future of Life-Cycle Saving and Investing" co-sponsored by Boston University School of Management and the Boston Federal Reserve Bank.

Because of the financial crisis, many families have fewer financial resources and options. As a result the pace and timing of their saving and investing life cycle have been disrupted. For example, unemployment levels among recent graduates are high and starting salaries have declined. This means that the young will have to delay the start of saving and investing and they are living at home longer, often disrupting their parents' budgets.

Many consumers who should be saving for retirement are doing the opposite. A Vanguard study showed that hardship withdrawals from 401(k)s increased by 49 percent between 2005 and 2010 and other types of withdrawals increased by 56 percent.

At the same time, the responsibility for retirement savings is shifting from the employer to the employee and individuals are being forced to change retirement plans. The Social Security Administration reports that in 2009 and 2010, the proportions of persons claiming benefits at age 62 began to rise after several years of decline most likely because of the weak job market. "Opting to receive a smaller social security annuity earlier in life is just one of many hard decisions Americans have had to make in order to balance their short-term and long-term financial needs," Duke said. All of this makes it more important that individuals have an understanding of what they need in retirement and their investment options.

Disruptions make the always difficult task of managing one's longevity risk harder and require a level of financial knowledge other generations have not needed. Millions of older households will need to assess their pension distributions and make decisions about payout options for their defined benefit plans or about purchasing of annuities. Younger workers, who will probably not have pensions, will face complicated decisions about what they will need in retirement and how to get there; all done in a world of increasingly more complex retirement products.

"In short," Duke told the audience of educators, "your efforts to identify, address, and meet the financial education needs of consumers in all stages of the life-cycle have never been more urgent."

The financial crisis has changed all of our assumptions about the future and consequently consumer behavior is also changing. It is unclear whether these changes represent temporary or more permanent shifts in thinking and planning for the future but, as an example, consumers are continually changing their attitudes toward homeownership as the housing crisis evolves along with developments in the broader economy. FULL STORY

Consumers appear to be increasingly disconnected from mainstream financial services; more likely to use alternative products such as reloadable stored-value cards rather than credit cards. These don't carry the same federal protections as credit or debit cards and do not establish a relationship with a financial institution for other purposes such as checking accounts or auto loans.

"As more and more new products are introduced to the financial marketplace, it becomes more important for consumers to be able to evaluate and compare products' benefits and potential costs," Duke said.

The basic skills for navigating the financial world are developed in school so it is important to include skills in numeracy, language arts and decision making in curriculum and measure them by testing. "I also think that the work many of you are doing to make financial lessons more appealing to school aged children is extremely important given the competition for attention from media and web-based entertainment and games."

Financial education is a life-long endeavor. Consumers need clear and relevant financial information at critical "teachable" moments such as when buying a car or planning for retirement. Educators have to identify as many of these moments as possible and determine how to best support positive outcomes as those moments.

How financial education is delivered has a significant impact on its effectiveness. New technologies present exciting opportunities to deliver timely financial lessons and the technology such as apps for smart phones is making it possible to get information instantly. Duke said she is particularly interested in how technology can better serve lower-income populations who might be more interested in stretching their paycheck than in investing it.

Duke cited several studies that evaluated the effectiveness of specific education programs but said "the fact is that we have very limited data on how effective financial education is in improving financial well-being. The Financial Literacy and Education Commission, of which the Federal Reserve is a member, has only recently developed a core set of financial competencies, and has yet to establish the knowledge, skills, and behaviors that will meet these competencies." She suggested the need to answer some important research questions:

What do people need to know to improve their long-term economic well-being and how does that vary by demographic groups?
How do people obtain and process financial information? What sources do they use? Do outcomes vary by the source or timing of the information?
Can we merely impart knowledge to improve outcomes or do we need to change consumer behavior as well? How can policymakers do this?
How should we measure financial literacy to evaluate its impact on financial outcomes and predict future behavior and well-being?

Duke concluded by stressing the effect decisions about saving and investing have on the financial well-being of individual consumers and our national economic outcomes. Comprehensive, effective regulation of consumer products is the first step in ensuring positive outcomes for consumers, but consumers must also be equipped with the tools and information to make the best choices. For all the attention and resources that have been devoted to financial education we have very little information about the effectiveness of our effort.

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"This thing could have been over a long time ago if we had brought the full weight of American air power to bear on him," says US senato

Source: http://www.voanews.com/english/news/africa/McCain-Gadhafi-May-Crack-122799714.html

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WHO warns much work remains to be done to reduce the millions of premature deaths that occur every year from tobacco-related illnesses

Source: http://www.voanews.com/english/news/health/WHO-Global-Tobacco-Usage-leveling-off-122821284.html

Housing Starts President Obama Hope for home owners Fannie Mae

Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.45 percent, up from 4.43 [...]

Source: http://www.zillow.com/blog/2011-05-24/30-year-fixed-mortgage-rises-for-the-first-time-in-six-weeks/

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In 2008, I wrote about connections between normal accident theory -- which came from studies of nuclear accidents -- and the subprime mortgage crisis. In light of what is happening in Japan, I think it is worth revisiting normal accident theory. Yes, the crisis in Japan was caused by a natural disaster, but nuclear plants are systems and I am sure we will be learning a lot more about these systems in the days ahead. As we learn more, it will be useful to keep normal accident theory in mind.

So here is an excerpt from my original column which you can find here.

"The issue is not risk, but the issue is power, the power of elites to impose risk upon the rest of us." -- Charles Perrow, Yale Professor of Sociology
Normal accident theory was developed by Yale Sociologist Charles Perrow after the debacle at Three Mile Island. Perrow's fundamental insight is that "accidents" are, in fact, normal events. Rather than blaming failure on a bolt from the blue, we should expect that in any complex system -- a nuclear reactor, the stock market, housing -- there will sometimes occur a series of unusual outcomes which, taken individually, will not trigger a horrific accident. But put them together and you get a crash.

In developing normal accident theory, Perrow found the "interconnectedness" inherent in big systems often led to "baffling" outcomes. In the case of the subprime meltdown, those interactions involved the Federal Reserve, the housing industry, global financial markets and the huge piles of investments managed by hedge funds and banks. Fed Chairman Ben Bernanke recently cited these pools of cash as a factor contributing to the market turmoil.

Between 2000 and 2003, the Fed kept money cheap, lowering interest rates aggressively in order to head off a potentially debilitating spiral of deflation. That decision left these large pools of cash hard-pressed to find good investments. Investment banks saw this pool of capital and decided to create new products made from bundles of mortgages which would meet the demand for higher returns. [It is worth noting another complex interaction: US Treasuries were basically not available to these investors, because the Chinese buy so many of them in order to keep their currency fixed to the dollar.]

It all worked well for a while. But then, as Perrow's theory suggests will often occur, unfamiliar and unexpected things began to happen. Wall Street, seeing a large demand for these new financial products tied to mortgages, began to press home mortgage lenders to increase loan volumes. People with little or no credit began to get bigger and bigger loans. Seeing the success of the bundling of mortgages -- "securitization" is the technical term -- bankers began to use these same techniques in other markets. Loans for buyouts come to mind. Volumes increased and the system began to grow, becoming even more complicated.

Financial markets are also systems that are, as Perrow puts it, "tightly coupled." An action in one system directly impacts and depends upon an action in another part of the system. That is a fair description of the mortgage and securitization process. Loans have to be originated; they must be packaged and quickly sold into the secondary market. There is only one path to success here -- sales into the secondary market. No one wanted to keep these loans on their books, and indeed, seemed to have no contingency for doing so.

Once the pieces began to come apart, there was so little slack in the system no one could engineer a quick fix. Even today, the dispersed nature of bundled securities makes it difficult to rework loans into a structure that makes economic sense.

But it's not enough to understand that our financial and housing markets were flawed and subject to complex interactions. People were also at work here. Someone needed to strike the match and set the lighter fluid burning. In that sense, the housing collapse was not a normal accident. The engineers at Three Mile Island were unaware of the complex interactions between systems that threatened a meltdown. If they had been, Perrow says they would have acted quickly to prevent disaster.

Perrow thinks traders and bankers and mortgage brokers did not try to stop the financial meltdown, because financial markets offer substantial short-term gains, even if it's clear there will be dire long-term consequences. . . .

To get back to the original question: "Who allowed this to happen?" People up and down the system allowed this to happen, because there was no real mechanism to hold them directly responsible for their actions. Many will try to regulate our way back to a safer housing and financial system. I would suggest the best way to start thinking about that process is to focus on accountability. When something goes wrong in a nuclear power plant, the engineer is trying to save his own life along with the lives of those living nearby.

If we want to make sure this doesn't happen again, we need to make sure the people who might cause the next financial crisis are sitting next to the reactor when the yellow caution lights begin to flash.

Source: http://www.pbs.org/nbr/blog/2011/03/normal_accident_theory_revisit.html

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UNHCR appeals to international donors to step up aid for thousands of refugees, migrant workers caught up in deadly disturbances

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Homes Foreclosures Home Sales Outlook Housing Starts

Last December the Mortgage Bankers Association (MBA) assembled a task force to examine and issue recommendations for the future of residential mortgage servicing. That group, the Council on Residential Mortgage Servicing for the 21st Century is led by Debra W. Still, President and CEO of Pulte Mortgage and composed of key MBA members. That group has released its first product.

The white paper titled "Residential Mortgage Servicing in the 21st Century" provides information on what a servicer does; how a servicer is compensated; and the perspectives of consumers, regulators, and the legal community with regard to servicer performance in the current crisis. It also identifies issues that need further examination and examines trends in servicer compensation and expenses. It is meant to provide an educational background as well as an "environmental scan" of the events leading up to the current housing and mortgage crisis.

Much of the material in the paper grew out of a summit which included industry leaders, consumer advocates, economists, academics and policymakers "who took a detailed look at the issues that have challenged the industry and started to process of identifying the essential building blocks for the future of servicing." Summit participants identified three major areas for further study and development of policy recommendations.

A review of existing servicing standards and practices especially in the area of dealing with large volumes of non-performing loans, foreclosure practices, and loss mitigation practices.
Evaluation of the legal issues related to the foreclosure process, chain of title, and other issues.
Analysis of proposed changes in servicer compensation proposed by the Federal Housing Finance Agency (FHFA). Ginnie Mae and the government sponsored enterprises (GSEs).

The report is based closely on the summit proceedings and, in line with the composition of the presenting panels, looks at the issues from the perspectives of the Secondary Market, the Servicer, the Regulator, the Consumer and the legal issues.

Secondary Market Perspective

The general themes that emerged from this discussion are the need to increase predictability and flexibility while decreasing volatility and concentration risk. Some participants felt that an alternative to the existing I/O strip method of calculating servicing fees would decrease volatility but that raised the issue of who would absorb the volatility in servicing fees in an ecnoomic downturn, the investor or guarantor. To be flexible it was suggested that servicing rights should incorporate factors that reflect market conditions so that the fee varies accordingly. However, the market's desire for certainty and predictability runs counter to a flexible approach to calculating servicing rights.

Ideally, the calculation method also should be designed to improve the ability of firms to hold servicing rights regardless of their size or structure. This would address the existing concentration risk and the lack of excess capacity in the servicing industry to absorb dramatic changes in volumes of loans requiring extra attention.

Shortly after the summit FHFA released information on four types of servicing fees structures that it was considering for Ginnie Mae and the GSEs. Each of the proposed alternatives relates to performing loans and the guarantor would pay the servicer or special servicer additional fees for each non-performing loan on the basis of a flat dollar amount per loan per month based upon stage of delinquency.

Regulators' Perspectives

Three regulators addressed participants at the summit; Sheila Bair, Chairman, Federal Deposit Insurance Corporation; David H. Stevens, Assistant Secretary for Housing and Commissioner of the Federal Housing Administration (now CEO of MBA), and Richard Neiman, New York State Superintendant of Banks.

The three addressed the idea of setting common standards for the residential mortgage servicing industry which would include a national servicing standard especially for foreclosure and default administration. Other standards would address human resource issues such as adequate staffing to deal with large numbers of delinquent loans, a single point of contact within the servicer for distressed borrowers, and adequate training for staff.

Council members met with other regulators and the paper discusses some of their suggestions and proposals such as a "short refinance" program that would enable homeowners facing foreclosure to refinance into a mortgage based on current interest rates and home values.

Legal Perspective

The summit looked at four major legal issues relating to residential mortgage servicing.

The sufficiency of foreclosure documentation and attestation policies and procedures.
Chain of title issues.
Fees and lender-placed insurance.
The MERS mortgage registry system.

Another fundamental issue was the role of the trustee. From the consumer viewpoint the servicer is an indirect agent of the investor through a trustee, but it can also be an agent or contractor. The servicer's legal rights and obligations are controlled by a variety of legal documents.

Consumer Perspectives

A panel of representatives from consumer groups gave attendees perspectives about servicing practices form the borrowers' point of view, especially as relates to defaults. The panel told the audience that servicers have lose the trust of consumers.

One suggestion that came from the panel was the establishment of a Resolution Trust type of entity to acquire troubled mortgages. This would put those loans in the hands of someone with different priorities than the current investor and servicer.

The panel also suggested that the servicing fee structure should include incentives to modify mortgages and that servicing standards need to be more transparent. The consumer advocates also suggested changes in the rules governing initiating modifications during foreclosure in order to eliminate dual tracking but still allow an avenue for borrowers to avoid foreclosure.

Servicer's Perspectives

The report concludes that current research on servicing do not accurately reflect current practices or fail to accurately state the costs and revenues inuring to servicers with regard to delinquent loans. The single greatest financial incentive for a servicer to support modifications over foreclosure is the resumption of servicing income which ceases during the period of delinquency. Under private label servicing the servicer is reimbursed the lost revenue when the REO is sold but without interest. In the case of GSE and FHA servicing that revenue is permanently lost when the loan is foreclosed.

Servicers are also obligated to advance mortgage payments to investors even when the consumer is not paying and to advance other funds such as property taxes and insurance premiums. The servicing agreement governs how and when they will be repaid but the advances might be outstanding for years in the current market. Third party fees are treated in much the same way. Again, a modification means that the advances stop and the servicer is repaid through capitalizing the outstanding balances.

Modification rather than foreclosure also allows the servicer to keep the fair market value of the asset on its balance sheet and thus increase the value of the portfolio if purchased.

Most studies of servicing overstate the true worth of late fees which are often waived during modifications, are not reimbursed through foreclosure, and do not generate interest. Furthermore, there are no penalties to the borrower for not paying these fees when the loan is brought current and the servicer may have to wait until the mortgage is retired or the house sold to collect.

The report pushes back against calls for eliminating dual track and for a single point of contact. The general concern seems to be the cost of delaying foreclosure because of penalties for the investor and the cost associated with legal advertising, the advances mentioned above, and the possibility of continued decline in property values. There are also potential conflicts with state foreclosure laws.

The single point of contact may, the report says, have unintended consequences because assigning one person is impractical. The contact person would have to deal with fluctuating call volume which could significantly increase delays; would have to be cross-trained in a variety of specialties (i.e. modifications, short sales) and the system raises concerns about work schedules, staff turnover, illnesses, etc.

The entire report can be read here.

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President Dmitry Medvedev calls on Libyan leader to resign, says some countries might be able to shelter him

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Foreclosures are few among the nonprofit's low-income borrowers.

Source: http://realestate.msn.com/article.aspx?cp-documentid=28809528

Foreclosures Home Sales Outlook Housing Starts President Obama

Vice President Biden says Chrysler repaid taxpayer's bailout six years ahead of schedule; GM now adding thousands of jobs to payroll

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Each year, the Small Business Administration recognizes a Small Business Person of the Year from every state, as well as several U.S. territories. Many of this year’s winners visited the White House last week, as part of our Champions of Change program. On Friday, I attended a lunch honoring all of the 2011 award winners, and got the chance to thank some of the incredible entrepreneurs who are helping us win the future.

The men and women who came to DC for the event represented the full breadth of the small business experience in the United States – everything from baking to business consulting, from marine observation to medical-equipment rental. No matter what industry they come from, or what business model they pursue, their companies, and others like them, are making crucially important contributions to our country. As President Obama has often said, small businesses are, “the backbone of our economy and the cornerstones of America’s promise.”

In fact, small businesses and entrepreneurs employ half of America’s workers, and create two out of every three new jobs. And of course, iconic American companies, from McDonald’s and Microsoft to Ford and Facebook, began as small businesses. As we recover from the worst recession since the Great Depression, entrepreneurship is one of our most powerful economic engines.

Source: http://www.whitehouse.gov/blog/2011/05/25/fitting-end-small-business-week

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Ever wonder how raw sewage and floating garbage end up in New York City's waterways? WSJ's Christina Tsuei reports on how combined sewer overflows work and how the city plans to use green techniques to improve its waters.

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http://online.wsj.com/video/when-it-rains-it-pours--raw-sewage/09CCE8F6-36B5-47D6-B456-9EBDF6816374.html

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Federal Housing Finance Agency Acting Director Edward J. DeMarco told members of Congress last week that increased transparency in mortgage backed securities (MBS) and the implementation of Dodd-Frank Risk Retention regs were top priorities in the process of enticing investors back into the private-label MBS market. DeMarco's remarks came during testimony to the House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs hearing on "Transparency as an Alternative to Risk Retention."

DeMarco said a significant contributor to the financial crisis was the poor quality of single-family mortgages originated from 2005 to 2008 and securitized by private label issuers and the GSEs. In the meltdown private investors fled the non-agency MBS market. Only two small private label securitizations have been completed in the last 13 months; almost all mortgage issuance in the country is executed through Fannie Mae, Freddie Mac, or Ginnie Mae.

Risk retention, he said, seeks to protect investors and reduce information asymmetries by requiring that issuers of securities to have a disincentive to acquire poor quality loans because they will be required to hold a portion of the credit risk rather than passing it on (for example, keep more reserves on balance sheet). This should make securitizers more careful with the quality of loans they buy/originate. In return for higher-quality loan paper, private investors are expected to be more willing to provide funding capital for non-agency mortgages and other types of loans, thus facilitating the return of private capital to the markets.

Uncertainties will also be reduced by giving investors more information on the credit characteristics of the mortgages in the underlying pools. At the time of the crisis investors typically had access only to aggregated pool-level data instead of the kind of detailed loan-level data necessary for in-depth independent risk assessments.

The Securities and Exchange Commission (SEC) regulates asset based securities (ABS) and has recently proposed changes to Regulation AB which codifies requirements for registration, disclosure, and reporting for all publicly registered ABS. Some of the major changes will require an issuer to provide standardized information about loans in the pool in computer readable format at the asset level (except for credit cards) at the time of securitization, even when new assets are added to the pool. The computer program to access the information must be accessible on the SEC's website. Five days will be required for the investor to consider the information rather than the almost immediate sale of ABS currently allowed. The new regulations will also repeal the requirement for an investment grade rating in order for the issuer to be eligible for shelf registration.

MBS guaranteed by the GSEs are exempt from the disclosure requirements of Regulation AB however the Enterprises have worked to make their disclosures parallel those of the SEC. However, neither GSE discloses all of the information required by the revisions. For example, both in the case of documenting how a loan amortizes and providing indication of the borrowers' ability to repay, the GSE's provide loan level data but not in the detail proposed by the SEC. The proposed regulation would also require the GSEs to report on modified loans; Freddie Mac provides limited information on such loans. Similarly while both GSEs disclose information on delinquent SFM in the MBS pools they do so at the pool level; Regulation AB will require loan level information.

DeMarco said while awaiting Congressional action on housing reform and the resolution of the GSEs, FHA and the GSEs are taking concrete actions that will enhance the mortgage market's operation regardless of the particular legislative course taken. These include developing uniform standards for data reporting on mortgage loans and appraisals and the recent announcement of the Joint Servicing Compensation Initiative to consider alternatives for future mortgage servicing agreements. Three weeks ago FHFA directed the GSEs to align their guidelines for servicing delinquent mortgages.

Still on FHFA's agenda, DeMarco said, is enhancing loan-level disclosures on GSE MBS both at the time of origination and throughout the security's life. This will help establish consistency and quality of such data and contribute to an environment in which private capital has the information needed to efficiently measure and price mortgage credit risk, shifting of this risk away from the government and back into the private sector.

DeMarco said his agency views risk retention and enhancing transparency of the mortgages backing MBS as complementary reforms. There is also value in moving the GSEs over time toward the loan level disclosures that the SEC changes to Regulation AB will require.

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