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More than Half of Foreclosures Triggered by Job Loss: NeighborWorks

NeighborWorks America reports that 58 percent of homeowners who've received assistance through its foreclosure counseling program say the primary reason they are facing foreclosure is reduced or lost income. The nonprofit says it's time for mortgage servicers and investors to make meaningful accommodations for borrowers facing foreclosure -- or prepare for even more empty homes and devastated neighborhoods.

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Fannie Mae’s Delinquency Rate Falls for First Time in Three Years

The percentage of past due loans held by the nation's largest mortgage financier has fallen. In its monthly summary report just released, Fannie Mae said the serious delinquency rate on single-family mortgages in its portfolio dropped to 5.47 percent in March, down 12 basis points from 5.59 percent in February. It's the first time the GSE's serious delinquency rate has declined since March 2007, when it was a mere 0.62 percent.

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Government Continues to Shed Stake in Citi

The U.S. Department of the Treasury has sold 1.5 billion of the 7.7 billion shares of Citigroup common stock it holds. The government earned $6.2 billion from this first trade, and says it plans to continue selling off its stake in the bank ""in an orderly fashion."" A second trading plan for 1.5 billion more shares has already been pre-arranged and is expected to be completed by June 30.

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Treasury Lowers Projected TARP Cost by $11.4 Billion

New figures released by the U.S. Treasury indicate that the government's $700 billion Troubled Asset Relief Program (TARP) will wind up costing taxpayers $105.4 billion when all is said and done. That projection is $11.4 billion lower than previously estimated. The total expense of TARP can be directly attributed to the government's foreclosure prevention programs, as well as assistance provided to the auto industry and AIG. Programs that were designed to assist banking institutions will result in a net gain to the taxpayer.

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Mortgage Rates Drop to Lowest Level of the Year

Mortgage interest rates have fallen to their lowest level of the year. Economists say homebuyers have the financial turmoil in Europe to thank for that, as overseas investors have put their dollars instead towards what they see as safer U.S. Treasury securities, which are closely tied to rates for home loans. Freddie Mac puts the average rate for a 30-year fixed mortgage this week at 4.78 percent. Bankrate says 30-year fixed-rate home loans are averaging 4.92 percent at the nation's 10 largest banks.

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Federal Reserve’s MBS Purchases Could Lead to Record Earnings of $70B

A report released this week by the Congressional Budget Office (CBO) says the U.S. Federal Reserve more than doubled the size of its asset portfolio to over $2 trillion through its purchases of mortgage-backed securities and other crisis-mode acquisitions, and assumed far more risk than is considered ""normal"" for the central bank. But the risk-taking Fed is proving to be a savoir-faire investor. According to CBO estimates, the central bank will turn a record $70 billion profit this year.

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Freddie Mac’s Delinquency Rate Falls for Second Consecutive Month

Mortgage giant Freddie Mae is finding itself on the downward side of the delinquency arrow - and when it comes to delinquencies, the downside is an angle the GSE didn't see for a long three-year stretch. According to Freddie's monthly summary report released Tuesday, the company's single-family delinquency rate fell to 4.06 percent in April, down 7 basis points from March. It was the second straight month that the GSE has reported a decline in delinquencies.

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U.S. Thrifts Turn $1.8B Profit Despite Mounting Foreclosures

The nation's thrift industry posted profits of $1.82 billion in the first quarter of 2010. The Office of Thrift Supervision says the data indicates thrifts are stabilizing despite rising delinquencies and foreclosures. By definition, the thrift business involves taking deposits and originating home mortgages. The industry's non-current loans and repossessed real estate assets made up 3.27 percent of total holdings in Q1. Sixty-five percent of these troubled assets were residential mortgages, 27 percent were commercial real estate loans.

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Reform Legislation Includes Fattah’s Mortgage Relief for Unemployed

When the Senate passed the Wall Street reform package last week, it included a provision that uses $3 billion in Troubled Asset Relief Program (TARP) funds to reduce mortgage payments for those homeowners who have lost their job as a result of the nation's recession. The same measure already passed in the House's version of the financial reform bill and is modeled after a state program introduced by Rep. Chaka Fattah when he was a Pennsylvania state legislator.

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GSEs Implement Uniform Data Collection for Appraisals, Loan Delivery

The Federal Housing Finance Agency (FHFA) said Monday that it is implementing a ""major new initiative"" at Fannie Mae and Freddie Mac, meant to improve the quality of data collected by the GSEs for appraisals and loan delivery. According to FHFA, the nation's two largest mortgage financiers have been working closely with other industry players to develop uniform standards for collateral, borrower, and loan-level data. The new program is expected to streamline data submissions for appraisers, lenders, and servicers, and allow the GSEs to manage risk more effectively.

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