Tag Archives: Federal Reserve

Regulators and servicers are missing opportunities to enhance communication with consumers, the United States Government Accountability Office (GAO) said in a report. The report, released June 29, examined the efforts of servicers to communicate with customers who may be eligible for an independent foreclosure review. One major problem identified with current communication materials is that they are too difficult for the general public to understand.

The deadline to request a free, independent foreclosure review has been extended for another two months, and so far, nearly 200,000 people have requested a foreclosure review, the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board announced Thursday. The new deadline to request an independent foreclosure review is getting pushed back from July 31 to September 30, 2012. The review is for those who believe they have suffered financial harm as result of servicing errors during a foreclosure process between 2009 and 2010.

According to Freddie Mac's Primary Mortgage Market Survey (PMMS), average mortgage rates are easing, even in the face of troubling economic signs. The 30-year FRM averaged 3.66 (0.7 point) for the week ending June 21, down from 3.71 percent the previous week. At the same time in 2011, the 30-year FRM averaged 4.5 percent. The 15-year FRM averaged 2.95 percent (0.6 point), down from 2.98 percent in the last survey and a year-over-year drop from 3.69 percent. Adjustable rate mortgages (ARM) both slipped down, as well.

With a lone dissent, the Federal Open Market Committee Wednesday voted no change in the target federal funds rate but agreed to expand its program to stimulate the economy by purchasing Treasury securities. While voting no change in the target Fed Funds rate, the FOMC said it would purchase Treasury securities with remaining maturities of 6 years to 30 years at the current pace and to sell or redeem an equal amount of Treasury securities with remaining maturities of approximately 3 years or less. The action is expected to keep mortgage rates at record lows.

Household net worth increased in the first quarter of 2012 due to gains in the stock market, while household debt declined, according to the U.S. Flow of Funds report released by the Federal Reserve. Household net worth, which is the difference between the value of a household's assets and liabilities, increased by about $2.8 trillion to $62.9 trillion compared to the previous quarter, the Fed reported. The value of real estate assets also improved, increasing by $425 billion, or 2.3 percent due to a 2.4 percent gain in home prices, according to analysis from IHS Global Insight.

Speaking before the Joint Economic Committee, Federal Reserve Chairman Ben Bernanke offered three guidelines for fiscal policymakers Thursday. The federal budget must be put on a sustainable long-run path, he said, adding that significantly tightening fiscal policy could impede the economic recovery. Bernanke called on Congress to ""promote a stronger economy in the medium and long term through the careful design of tax policies and spending programs."" The economy, according to Bernanke, is seeing a meager recovery.

The Systemic Risk Council, a volunteer group led by former FDIC chair Sheila Bair, will meet in June to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk. The council, formed by CFA Institute and The Pew Charitable Trusts, is an assembly of experts in investments, capital markets, and securities regulation.

The economy expanded at a modest to moderate pace from early April to the end of May, the Federal Reserve reported Wednesday in its periodic Beige Book. The assessment reflected a weakening from the report in April when the expansion was characterized as moderate. Economic outlooks, according to the report, ""remain positive, but contacts were slightly more guarded in their optimism."" Activity in the New York, Cleveland, Atlanta, Chicago, Kansas City, Dallas, and San Francisco districts was described as moderate, while the Richmond, St. Louis, and Minneapolis districts noted modest growth.

The Consumer Financial Protection Bureau, the Board of Governors of the Federal Reserve System, the FDIC, the National Credit Union Administration, and the Office of the Comptroller of the Currency today released a Memorandum of Understanding (MOU) to clarify how they will coordinate their supervisory activities.

Following dismal reports on employment, it might be time to give pause to assumptions that a housing recovery is here or soon to arrive. The Bureau of Labor statistics reported Friday that only 69,000 jobs were added in May, the slowest growth seen in a year. Economists said the patterns in the employment situation seen this year echo the previous year when it seemed the economy was gaining its strength back, only to falter.