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DS News Webcast: Tuesday 8/25/2015

The Dow Jones Index fell by 1,000 points on Monday morning and eventually closed at 588 points down. For many, the stock market's steep decline removed any doubt as to whether the Federal Reserve will raise interest rates, which have been at or near zero for seven years. Prior to Monday, many pundits predicted that the country's economy had experienced the growth needed for the Fed to raise the rates. Now, they're not so sure.

Sean Becketti, Chief Economist at Freddie Mac, said of the stock market performance, quote, The interesting near-term impact is on the Fed’s September decision to raise rates or not.  Market sentiment was split roughly evenly before this event. Today it’s tilting toward no action in September. Close quote. Former Director of the National Economic Council and former Secretary of Treasury Lawrence Summers expressed similar sentiments on Twitter, saying that, quote, raising rates threatens the Fed's major objectives—price stability, full employment, financial stability. Close quote

The mortgage industry has surpassed more than 24 million workout plans for distressed borrowers since 2007 with the addition of the Q2 2015 totals, according to data released from HOPE NOW. During that same eight-year period, the industry completed slightly more than six million foreclosures, about one-fourth the total of non-foreclosure solutions. For Q2, the number of workout solutions outpaced completed foreclosures by the count of 411,000 to 89,000, which calculates to an average of 4.6 solutions for every foreclosure sale during the quarter.

About Author: Jordan Funderburk

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