Sunday, December 30, 2012

Monday December 31 Housing and Economic stories


TOP STORIES:

Study Shows a Pattern of Risky Loans by F.H.A. - (www.nytimes.com) A new and extensive analysis of 2.4 million loans insured by theFederal Housing Administration in recent years shows a pattern of risky lending that could generate $20 billion in losses and harm thousands of the nation’s most vulnerable borrowers. By ignoring risks in loans it insured in 2009 and 2010, the study concludes, the F.H.A. is imperiling both borrowers and taxpayers who stand behind the agency. The analysis emerged less than a month after the F.H.A.’s auditor submitted a troubling report on the financial soundness of its insurance fund. In mid-November, the auditor estimated that the fund, which backs $1.1 trillion in mortgages, has a value of negative $13.5 billion. In other words, if it were to stop insuring loans today, the F.H.A. fund could not cover the losses anticipated on loans it has already insured.

Home Seizures Rise as Banks Adjust to Foreclosure Flow - (www.bloomberg.com) Home seizures in the U.S. rose 5.4 percent last month, the first annual gain in two years, as lenders seek to manage the flow of distressed properties without disrupting the housing recovery, according to RealtyTrac. Banks repossessed 59,134 homes, up from 56,124 from November 2011, the Irvine, California-based data firm said today in a report. The increase was the first since October 2010, when foreclosures slowed after allegations that lenders were using faulty practices to take property from delinquent homeowners. Seizures climbed 11 percent from the previous month. “Lenders have figured out how to play the foreclosure game in this new world where they’re getting a lot more scrutiny,” Daren Blomquist, RealtyTrac vice president, said in a telephone interview. “Everybody involved in the foreclosure industry has finally got a good handle on how to manage these properties to create a more managed and stable flow.”

Greek Debt-Relief Debate Flares After Release of Fresh Aid - (www.bloomberg.com) European governments geared up to provide extra aid or debt relief for Greece after releasing the country’s first loan payment in six months, signaling renewed battles over how to stabilize the euro economy. Euro-area finance ministers approved the payout of 49.1 billion euros ($64 billion) of loans through March and committed to “additional measures” in case Greece’s debt reduction veers off track. While another cut in bailout-loan rates and an increase in infrastructure funding would top the list of extra measures, the policy makers hinted that outright debt relief -- still a taboo topic in creditor countries led by Germany -- would be on the table as well.

Sold for thirty million below initial asking price - (www.sfgate.com) While the sale price puts it in the record books, it doesn’t come close to the original asking price of $58 million, when it first came onto the market in 2006. Six years and several price deductions later, the 8-bed, 7.5-bath mansion is finally exchanging hands. The Italian Renaissance estate with panoramic views has been vacant for a while – even becoming the target of some graffiti vandals not too long ago. The property has also been in the same family for quite some time. Property tax records show only $7,900 was paid to the city last year. The city can expect to receive at least $300,000 more annually going forward.

If we're in a housing recovery WHY is Ink Jet Ben at it again ? - (www.forbes.com) Ben Bernanke continues to make history at the Federal Reserve.  On Wednesday, the FOMC announced more quantitative easing at a rate of $85 billion a month for an extended period of time.  The Bernanke Fed has also modified its guidance, noting its ultra-accommodative stance will remain in place until the unemployment rate falls below 6.5% and inflation projections remain no more than half a percentage point above 2% two years out. QE4 is here.  Only a few months after announcing what had been dubbed QE3, an open-ended $40 billion a month program to buy up mortgage backed securities (MBS), the FOMC decided to extend its asset purchases in 2013 as Operation Twist expires.





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