News

HUD has announced it will sell almost 90 REO properties to public housing authorities in central Alabama and Joplin, Missouri -- areas suffering the impact of this spring's tornadoes. In a pilot program, HUD will sell move-in ready properties to public housing authorities at a discount, and the housing authorities will lease or sell the homes to families impacted by the storms. The houses will be ready for sale or lease within two months of the purchase from HUD.

U.S. Bank has announced several new initiatives to support the city of Milwaukee in its efforts to stabilize hard-hit communities through the Neighborhood Stabilization Program (NSP). The bank is setting up a $1 million restoration fund for developers to acquire and rehabilitate foreclosed properties in the city's designated NSP zones. It has also agreed to provide $15 million in mortgages to qualified borrowers in NSP zones over the next four years, and has committed to give more than $240,000 in grants to housing agencies working within the city.

Lender Processing Services (LPS) issued a report Tuesday which puts the number of mortgages that are delinquent or in foreclosure at 6,538,000. The company's assessment is based on mortgage performance statistics through the end of July, derived from its loan-level database of nearly 40 million mortgages. The grand total of past-due mortgages has risen by nearly 190,000 over the past two months. In June, LPS' tally of loans at least 30 days delinquent or in foreclosure was 6,452,000. In May it was 6,350,000.

While the Obama administration continues to consider options for the future of housing finance, two mainstream media outlets reported Tuesday that officials are looking into a plan that would retain major government involvement in the housing market, namely by preserving federal loan subsidies through the GSEs. The administration has issued a statement negating these reports, stressing that any government support for housing finance will be ""targeted and limited.""

SingleSource Property Solutions has announced the rollout of its proprietary 'cash for keys' calculator. The company says while many firms offer a cash for keys tool, they typically focus on carrying costs alone. SingleSource's calculator arrives at a monthly cost to carry and incorporates actual eviction and redemption timelines, while taking into account rent estimates and the tenant's perceived savings.

After losses last month, Fitch Solutions reports a recovery among subprime credit-default swaps (CDS) in July. Subprime CDS prices increased 1 percent overall for the month. The largest increases in prices were among 2006 and 2007 vintages, which rose 6.1 percent and 10 percent, respectively. The rate of 90-day plus delinquencies reached a new low for the year - declining 1.4 percent to 10.8 percent. The share of subprime loans with balance modifications has increased by 120 percent over the last year.

The term 'underwater' has become common industry jargon in today's marketplace of depressed home values and high loan balances, and it's increasingly making its way into the everyday vocabulary of consumers. Twenty-six percent of mortgage borrowers now say they are underwater, according to a new survey conducted by Fannie Mae. The GSE also found that the idea of being in negative equity is more prevalent among minorities, and that underwater borrowers are more likely to know someone who has defaulted on their mortgage.

Green River Capital, an REO asset management and loss mitigation provider for mortgage servicers, investment firms, credit unions, and banking institutions, announced Tuesday that its REOConnex asset management software is now available via a mobile application for the iPhone and iPad. The app allows agents to view all properties assigned to them, search for REO properties managed by Green River Capital, and view details and pictures stored in REOConnex.

According to Realogy Corp., it's time to put real estate professionals who are on the front line every day fighting the housing crisis at the head of the table when it comes to crafting a solution to stimulate the sector's recovery. The firm's CEO Richard A. Smith has sent a formal request to President Obama and his administration calling for a White House summit on housing that brings together industry stakeholders to provide ""unfiltered, real-time market feedback"" for devising policy strategies.

Freddie Mac says it is seeing a ""material increase"" in mortgage insurer rescissions, cancellations, and denials of coverage. The GSE has issued a notice alerting lenders that they may be forced to buy back loans if Freddie Mac determines they do not have the insurance coverage required at delivery, or if the mortgage insurance coverage is no longer in force. Freddie requires a primary mortgage insurance policy as protection against default for loans with a loan-to-value ratio of more than 80 percent.