News

The Housing Market Index (HMI), a measure of builder confidence, stalled at 58 in September, unchanged from August’s downwardly revised reading, the National Association of Home Builders reported Tuesday. The August confidence reading had originally been 59. Economists surveyed by Bloomberg had expected the index to remain at that level. But a dip in one of the three index components--the outlook for new home sales six months out--pulled the reading down slightly.

Among all cases, those related to foreclosures were the most active, with 74 cases moving forward, according to first-quarter data from Mortgage Daily. However, that was still a drop from that category's peak. An accompanying white paper released by Ballard Spahr LLP suggests the decline in foreclosure-related cases has more to do with the drop in foreclosure filings during the period. Cases involving loan modifications also decreased as foreclosure filings normalized--though dissatisfaction still remains high.

More than 11,000 borrowers are currently in the midst of trial mortgage loan modifications through Fannie Mae's Streamlined Modification program, which officially rolled out at the start of July, and an additional 30,000 borrowers pre-qualified for the program, according to a blog post last week by Bill Cleary, VP of credit portfolio strategies. The new program allows any homeowner 90 or more days delinquent on their first-lien mortgage to receive a trial loan modification if the loan-to-value ratio is 80 percent or higher.

In a speech to the nation, the president described a spirit of cooperation between Democrats and Republicans and between Congress and his administration. He invited leaders of both parties to the White House to discuss an upcoming vote which he acknowledged would be a tough decision for many members of Congress. And he closed with: ""America is a nation that tackles problems head on, where leaders come together to meet great tests."" The words were not those of President Obama but of President Bush.

Americans spent more on cars, furniture, health and beauty aids and at restaurants but were otherwise frugal in August as retail sales went up a disappointing 0.2 percent from July, the Census Bureau reported Friday. Economists had expected sales to increase 0.5 percent.

As the calendar approaches September 15, marking the anniversary of the collapse of Lehman Brothers, the nation is reminded of that historical event which severed the very fabric of our financial system. It's been five years since that fateful day, and the Center for Responsible Lending (CRL) says Americans--regardless of political party, age, race, or locale--overwhelmingly support financial regulation, and in particular, increased consumer protections.

Speaking at an industry conference in Phoenix, Arizona, this week, Darrin Benhart, the OCC's deputy comptroller for credit and market risk, said the changing regulatory environment requires mortgage lenders to consider a number of potential risks on different fronts. Benhart acknowledged the list of mortgage-related reforms is extensive. ""These reforms mean you will need an even greater emphasis on risk management techniques that not only look at credit risk but also encompass operational and compliance risk,"" he said.

Seneca Mortgage Investments LP, is set to acquire AMS Servicing LLC, according to an announcement released Thursday. Seneca Mortgage Investments, headquartered in New York City, is a newly formed joint venture of Arbor Commercial Mortgage, LLC; affiliates of the global credit platform GSO Capital Partners LP, which is owned by the Blackstone Group; and alternative asset manager EJF Capital, LLC.

August's mixed employment numbers did little to move mortgage rates this week, according to surveys from Freddie Mac and Bankrate.com. The GSE's study shows the average 30-year fixed rate staying put at 4.57 percent for the week ending September 12. By Freddie's assessment, that figure is up more than a full percentage point from 3.55 percent this time last year. Bankrate put the 30-year fixed-rate mortgage at 4.71 percent this week, down from 4.72 percent last week and up from 3.81 percent in mid-September 2012.

First-time claims for unemployment insurance for the week ending September 7 plunged 31,000 to 292,000, the lowest level since March 2006, the Labor Department reported Thursday. Economists expected the number of claims to edge up to 330,000 from the 323,000 originally reported for the week ending August 31. The number of filings for that week was unchanged.