Foreclosure

Just four months after the fourth round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated, $59.5 million was awarded to 35 state housing financing agencies (HFAs), 15 HUD-approved housing counseling intermediaries, and 81 community-based NeighborWorks organizations to provide counseling to homeowners facing foreclosure, according to a recent announcement by Washington, D.C.-based NeighborWorks America, administrator of the NFMC Program.

The Michigan State Housing Development Authority recently submitted its plan to the Treasury, detailing its intentions to use the majority of the $154.5 million it received under the Hardest Hit Fund to help unemployed borrowers. Through a nonprofit corporation set up specifically for the purpose of being an ""eligible entity"" under the Hardest-Hit Fund, MSHDA plans to administer three programs, including the Unemployment Mortgage Subsidy Program, the Principal Curtailment Program, and the Loan Rescue Program.

First-time homebuyers accounted for a record-high share of purchases last month, according to new data from Campbell Surveys. With the April 30 contract deadline to receive the federal homebuyer tax credit fast approaching, the momentum is likely to continue into this month. But some economists have warned that sales are being pulled forward to make the tax credit window, and as a result will slip fairly substantially in the months ahead. There are no plans to extend the credit again.

Bank of America says it is considering giving unemployed homeowners nine months of no mortgage payments while they search for a new job. If during the nine-month forbearance period, the borrower is successful in finding employment, BofA would structure a mortgage modification. If unsuccessful, the customer must be willing to relinquish the home through a deed-in-lieu. The proposal must be approved by regulators before it can be implemented.

California foreclosure sales increased on both a year-over-year and month-to-month basis in March, according to the latest monthly report from locally-based ForeclosureRadar. The company says the increase will likely come as a surprise to many given all the recent news about foreclosure alternatives like short sales and new loan modifications with principal balance reductions, but as many servicers themselves have stressed, the simple reality is that these programs won't help everyone.

The earnings season for big banks is starting off in positive territory, and well above analysts' expectations. JPMorgan Chase & Co. reported last week that it brought in net income of $3.3 billion during the first quarter of 2010, or $0.74 per share. The market was expecting earnings of $0.65 a share. The numbers represent a 55 percent improvement over a year ago, largely due to big gains in its investment banking business. JPMorgan's consumer credit portfolios didn't fare as well, but the bank's chief did indicate that loan quality is improving and delinquencies are beginning to stabilize.

RE/MAX International, a global real estate company based in Denver, recently announced that it was ranked in two national brokerage surveys. In the 2010 Power Broker Report produced by RIS Media, sales associates affiliated with RE/MAX brokerages averaged an impressive 15.1 transaction sides per agent, an 18% increase over their position in last year's survey. As a result, the survey ranked 69 RE/MAX brokerages among the top 300, representing 23 percent of all ranked brokerages. And in the REAL Trends 500 survey, 122 of the company's brokerages earned a ranking, giving RE/MAX 24 percent of the rankings.

Fannie Mae has updated several policies regarding borrowers' future eligibility to obtain a new mortgage loan after experiencing a pre-foreclosure event, including a deed-in-lieu or short sale. The waiting period for a new loan will now be based on the loan-to-value ratio, occupancy of the property, and whether extenuating circumstances played a part in the borrower's inability to make mortgage payments. The GSE says the updated policies will further support overall market stability and reinforce the importance of borrowers working with their servicers.

The end of the housing correction is looking closer, as the job market finally turns the corner, investors step up home purchases, and the Obama administration revamps its foreclosure mitigation efforts, according to Moody's Investors Service. The credit ratings agency says it has lifted its outlook for home prices, and with the wide-ranging changes to the Home Affordable Modification Program, the foreclosure crisis just might end earlier than anticipated.

The House Financial Services' housing subcommittee held a formal hearing this week on the administration's new initiatives to provide help to underwater and unemployed homeowners through the Home Affordable Modification Program (HAMP). Most of the industry participants testifying on Capitol Hill applauded the Treasury's efforts to tackle these foreclosure triggers, but there are some who are questioning the logistics and the true effectiveness of the new program enhancements.