News

It is a well-known fact that job loss is often the trigger that sends many borrowers into default and down the road to foreclosure. However, according to the February 2010 Economic Outlook released Friday by Fannie Mae, prospects for employment gains are improving, and as a result, the housing outlook is hopeful.

Fannie Mae has approved four new mortgage insurers to provide mortgage insurance for conventional first mortgage loans, according to a lender letter released Thursday. Two of these mortgage insurers also received approval to do business with Freddie Mac.

The administration unveiled a new initiative to help the nation's hardest hit housing markets. President Obama is allocating $1.5 billion for states where unemployment is high and home prices have fallen more than 20 percent. While national indicators point to housing stabilization, local conditions vary considerably. Obama is setting up an ""innovation fund"" for state agencies to develop their own loan modification assistance programs for underwater and unemployed homeowners.

The national residential delinquency rate and new foreclosures initiated both dropped in the fourth quarter. Is it a sign that the industry has finally turned the corner on the housing crisis? The Mortgage Bankers Association (MBA) says yes. ""We are likely seeing the beginning of the end,"" Jay Brinkmann, MBA's chief economist, said. According to MBA, the delinquency rate has fallen to 9.47 percent, down 17 basis points from the third quarter of 2009. Foreclosure starts are down 22 basis points.

Federal Realty Investment Trust, an equity real estate investment trust headquartered in Rockville, Maryland, recently promoted Dawn Becker to COO and EVP of the company. Becker, who has been with Federal Realty for 13 years, was hired in 1997 to provide deal structuring and legal guidance to support the company's acquisition efforts.

American homeowners have historically been particularly sanguine about real estate values, making their perceptions far from the reality of late. But the severity of the housing downturn appears to be finally setting in for homeowners nationwide, according to a new report from real estate data provider Zillow. Just one in five believe their property value increased during 2009, but Zillow says in fact, 28 percent of homes appreciated during the year.

The National Council of La Raza (NCLR), the largest national Hispanic civil rights and advocacy organization, and the University of North Carolina at Chapel Hill's Center for Community Capital have released a study which uses interviews with Latino families who have suffered a foreclosure to shed light on the damage inflicted by the loss of their home.

The National Groups, the parent company of the National Default Servicing, LLC suite of mortgage service operations, announced Thursday that Mitchell Oringer and Richard T. Fikani have joined the firm, filling two new leadership positions.

In an announcement Wednesday, the Government National Mortgage Association (Ginnie Mae) said it guaranteed more than $38.1 billion in mortgage-backed securities in January. The corporation also said the single-family loans in Ginnie Mae-guaranteed securities that were 90-days or more delinquent fell to 2.

Wells Fargo & Co. announced Wednesday that as of January 31, 2010, it had 137,128 active trial and completed modifications in place under the Home Affordable Modification Program (HAMP). Of these, 17,652 were permanent modifications--double the number of permanent modifications reported as of the end of December, and 7,554 were permanent modifications pending completion.