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Author Archives: Esther Cho

LPS: Delinquency Rate Sees Abrupt Increase in June

After five months of declines, the national mortgage delinquency reversed course in June, according to data from Lender Processing Services (LPS). From May to June, the delinquency rate shot up by 9.9 percent, ending at 6.7 percent, LPS reported. The increased delinquency rate represents the highest level since February of this year. Despite the increase, the delinquency rate still posted an annual decrease from last year. Compared to June 2012, the delinquency rate is down by 6.5 percent.

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Freddie Mac Offers Risk-Sharing Transaction to Engage Private Sector

Freddie Mac is making progress toward its goal of attracting more private capital into the mortgage market. Recently, the GSE announced the offering of a single-family credit-risk sharing transaction. The $500 million offering of Structured Agency Credit Risk (STACR) securities, which was priced Tuesday, seeks to reduce taxpayer risk while introducing more private capital into the market.

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Impact of Housing Downturn on Largest Immigrant Groups

While the housing downturn impacted all foreign-born American homeowners, immigrant populations were impacted differently, according to a report from Fannie Mae's Economic & Strategic Research Group. Using Census Bureau data from 2007 to 2011, Fannie Mae researchers set out to understand how immigrant homeowners were impacted by the housing collapse.

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Report: 26% of HAMP Borrowers Redefaulted, Rate Continues to Worsen

Upon closer examination, the Home Affordable Modification Program (HAMP) has not helped as many borrowers as it may seem, according to a report from SIGTARP. HAMP, a government loan modification program created to prevent foreclosures, has provided about 1.2 million modifications to distressed borrowers since its inception in 2009. Of those borrowers, 306,538 redefaulted after falling behind on their payments by three months, which means in actuality, 865,100 are still actively in the program, the taxpayer watchdog agency revealed. Of the redefaulters, 22 percent have entered into the foreclosure process.

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CFPB Accuses Utah Lender of Offering ‘Illegal’ Bonuses to Officers

The Consumer Financial Protection Bureau (CFPB) filed a complaint Tuesday against Castle & Cooke Mortgage LLC over allegations that the company gave bonuses to loan officers who steered customers into mortgages with less favorable terms. The complaint, which was filed in federal district court in Utah, claims that under the direction of company president Matthew A. Pineda and Buck L. Hawkins, the SVP of capital markets, Castle & Cooke violated a rule from the Federal Reserve Board that bans compensation based on loan terms.

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Fitch Anticipates Continued Growth for Housing into 2014

In the backdrop of a slow growing economy, Fitch Ratings projects the housing recovery will expand this year and the next-just not at an explosive pace, according to a report. The forecast for 2013 is for existing-home sales to increase 7.5 percent and for new home sales to rise by 22 percent. Meanwhile, single-family starts should grow 18 percent, and multifamily starts should jump 25 percent.

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Report: FHA’s REO Disposition Strategy Weak Compared to GSEs

The Federal Housing Administration (FHA) needs to work on improving its REO disposition strategy so it can bring in higher returns when properties go to sale, according to a recent report from the GAO. In fact, when compared to Fannie Mae and Freddie Mac, the congressional watchdog found FHA disposes its REOs at a much slower pace and sees smaller returns. After examining foreclosure timelines, the GAO revealed the FHA takes about 340 days to dispose of its REOs after foreclosure, which is more than 60 percent longer than the GSEs average of 200 days.

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Eminent Domain Bill Seeks to Protect Taxpayers, Retirees

Representative John Campbell (R-CA) reintroduced a bill last week to limit potential harm to taxpayers and retirees if city and county governments were to use the power of eminent domain to take over underwater mortgages. To protect taxpayers, the bill proposes to prevent the GSEs from purchasing mortgage loans originating in counties that applied eminent domain to seize underwater mortgages within the past 10 years.

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