Tag Archives: Foreclosure Prevention

The U.S. Federal Reserve is in the same boat as the banks now, dealing with a mortgage portfolio that's riddled with deficiencies and delinquencies. The central bank's New York branch has been saddled with a heap of souring loans from the assets it picked up to support the 2008 bailout of Bear Stearns. And now, as more and more of these loans - both residential and commercial - fall into default, the New York Fed is faced with a dilemma: to foreclose or not to foreclose.

Fannie Mae's second-quarter losses narrowed considerably from the demoralizing financials of the past several years that found the nation's largest mortgage financier underwater itself in a sea of red ink. The GSE reported Thursday that it lost $1.2 billion last quarter. It was Fannie's smallest loss in more than three years. The company also said it needs far less money from taxpayers this quarter - $1.5 billion. The company acquired 68,838 single-family REOs through foreclosure in Q2, and its seriously delinquent rate dropped to 4.99 percent.

The volume of commercial real estate assets with outstanding distress grew by $6.3 billion in June, but it was the smallest monthly increase since late 2008, according to the research firm Real Capital Analytics. While the slow-down in the growth rate can be attributed in part to the lack of large portfolios to fall into trouble during the month, the analysts at Real Capital say they are also seeing a marked increase in workout activity by lenders.

State housing finance agencies in North Carolina, Ohio, Oregon, Rhode Island, and South Carolina have been given the green light to use $600 million in federal funding to implement their own foreclosure prevention programs. These five states were designated as some of the nation's hardest-hit housing markets because of high unemployment -- local rates above 12 percent -- and concentrated areas of severe economic distress. The Treasury says another round of state grants is in the works, with $2 billion more allocated for local housing programs.

The Federal Housing Administration (FHA) has just $3.5 billion in its capital reserve account. The decline, though, is the result of a shuffling of funds. FHA moved $9.8 billion from its capital reserves to its financing account, the fund used to cover insurance claim payouts and losses. The transfer bumped this loss reserve account up to $29.6 billion and suggests that the FHA may be preparing for another wave of defaults and mortgage insurance claims, although so far this year, claims are coming in well below projections made at the end of 2009.

Fannie Mae has rolled out a new interactive online resource for homeowners struggling with their mortgage payments. It's KnowYourOptions.com, and it's designed to be a virtual one-stop-shop for anyone facing financial hardship and in need of foreclosure assistance. Eight months in the making, the site offers tools and guidance for refinancing, repayment plans, forbearance, modifications, Fannie Mae's Deed-for-Lease program, short sales, and deeds-in-lieu.

Rumors of a new government-led mortgage refinancing program have begun to surface. DS News has received word from sources inside the administration and from high-ranking executives at some of the largest banks, confirming that the White House is indeed considering a refi push that would allow homeowners to lower their monthly mortgage obligations by locking in today's rock-bottom interest rates. Some industry insiders are viewing the move as a concession by the federal government that its existing housing programs aren't doing enough.

The PMI Foundation, the philanthropic arm of the PMI Group, Inc., has awarded a $50,000 grant to the Consumer Credit Counseling Service (CCCS) of San Francisco. The grant will support continued funding for CCCS of San Francisco's nationwide mortgage default counseling program and homebuyer education initiatives.

U.S. Reps. John Lewis, David Scott, and Hank Johnson have joined forces with HUD, the U.S. Department of Treasury, the HOPE NOW Alliance, and NeighborWorks America for an upcoming event aimed at helping financially troubled homeowners in the Atlanta area. The event, dubbed the ""Help for Homeowners"" project, is scheduled for July 30 and July 31. Nearly 20 of the area's top lenders will be available at the event to meet one-on-one with area residents who are struggling to pay their mortgages. The event, dubbed the Help for Homeowners project, is scheduled for July 30 and July 31.

American Home Mortgage Servicing, Inc. (AHMSI), headquartered in Texas, is fighting back against the lawsuit filed against them yesterday. Filed by Ohio Attorney General, Richard Cordray, the lawsuit against AHMSI alleges the company was under numerous violations of the Ohio Consumer Sales Practices Act.