Category Archives for "National"

July 13, 2010

Biggest Defaulters on Mortgages Are the Rich

The New York Times just published a surprising article regrading Mortgages. Read the article below for more information:

“LOS ALTOS, Calif. — No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars.

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley.

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.

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July 8, 2010

U.S. Home Prices Continue Journey Upward in June: Clear Capital is reporting that home prices are going UP!! Read the full article below:

“Thanks to an increase in springtime sales and the lasting residual effects of the federal homebuyer tax credit, U.S. home prices continued to increase in June, the San Diego-based real estate valuation firm Clear Capital reported Thursday.

According to Clear Capital’s Home Data Index Market Report, June home prices came in 8.8 percent above levels experienced one year ago. And on a rolling quarter-over-quarter basis, home prices jumped 5.2 percent, bringing the nation back to within 1 percent of last fall’s levels.

“Price trends nationwide have a seen a considerable upswing driven in large part by the flurry of recent sales attributed to the tax credit and springtime buying activity,” said Dr. Alex Villacorta, senior statistician for Clear Capital. “This month’s national quarterly gains are certainly a positive sign that many markets have responded to the tax credit incentive, but overall markets remain volatile as evidenced by the six month price change keeping mostly flat.”

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Housing and Economic Update for the Charlotte, NC Metro Market

As a listing broker, I thought it would be helpful to provide an update on the local housing trends and economics. Here is an update for May/June 2010 to assist with evaluating our inventory for the Charlotte Metro Area:

Articles/Press Releases:

New Home Sales Plunge 33% Nationally in May

The sales of new homes fell in May to their lowest level ever, decreasing 33 percent from the previous month.  Additionally, a report provided earlier in the week stated that the sales of existing homes dropped as well.  Because of this situation, the Federal Reserve has repeated their pledge to hold interest rates at record lows to help stimulate economic growth.  Besides the issues with homebuyer tax credits, high unemployment and slow job growth also add to the housing market’s condition.  On Wednesday, June 23rd, the Commerce Department stated that new-home sales for May came in at a seasonally adjusted annual sales pace of 300,000, which was the slowest in the 47 years recorded.  Also, this was the largest monthly drop on record and sales have decreased 78 percent from their peak five years ago.

Publication Date: Thursday, June 24, 2010
Publication Title: Charlotte Observer
Author: Alan Zibel
Article Link:
Please feel free to click on the link above to read the complete article!

Mecklenburg County Home Losses Surge

The foreclosure situation in Mecklenburg has doubled so far this year.  By June, Mecklenburg citizens had lost 2,185 homes to foreclosure and this increase can be accredited to the high unemployment rates and extensive federal efforts to stem foreclosures by modifying home loans. These foreclosures do not just affect the home owners, but the homes lost also drag down nearby property values, which makes it hard for neighbors to sell their homes as well. In order to help stop this vicious cycle, North Carolina created new laws including one that allows county courts to extend foreclosure sale dates to give homeowners more time to work with their lenders.  Additionally, in February of last year, President Obama made a foreclosure prevention effort with Home Affordable Modification Program.  Lastly, there are nationwide efforts to provide bridge loans and other stopgap measures for the unemployed.

Publication Date: Sunday, July 4, 2010
Publication Title: Charlotte Observer
Author: Stella M. Hopkins
Article Link:
Please feel free to click on the link above to read the complete article!

Delinquencies Inch Up in May, Foreclosure Inventories Remain Flat: LPS

Lender Processing Services has reported that the seasonal improvement period for delinquencies and foreclosure inventories has come to a halt.  According to the article, the total U.S. delinquency rate jumped to 9.2 percent in May, which is 7.9 percent higher than May of 2009.  The foreclosure inventory rate has remained stable from the month prior at 3.18 percent, but it was 13.5 percent higher than May of 2010.  Also, the national noncurrent loan rate came in at 12.38 percent and if including REO properties, the number of noncurrent loans in May increases to almost 7.4 million.

Publication Date: Friday, July 2, 2010
Publication Title:
Author: Brittany Dunn
Article Link:
Please feel free to click on the link above to read the complete article!

Charlotte Area Statistics for May 2010:

Average List Price of Sold Properties $238,736
Average Sales Price $212,454
Average Days on Market 116
Average Residential Closing Price $212,454
Total Number of New Listings 4,744
Total Residential Closings Reported 2,537
Total CMLS Listings on Market 26,008
Mortgage Rates 4.79 %
Charlotte/Gastonia/Rock Hill Unemployment Rate 10.9 %
National Unemployment Rate 9.5 %
Sold price vs. List Price 88.99%

Delinquencies Inch Up in May, Foreclosure Inventories Remain Flat: LPS

In a recent article, reported the trends of the Delinquencies and Foreclosures around the nation:

“The seasonal improvement period for delinquencies and foreclosure inventories has come to a halt, according to an industry report released Thursday by Lender Processing Services (LPS).

The Florida-based analytics firm’s monthly Mortgage Monitor report found that the total U.S. delinquency rate jumped to 9.2 percent in May, inching up 2.3 percent from April and 7.9 percent higher than the same month last year.

Herb Blecher, VP of LPS Applied Analytics, said the slight increase on the delinquency side was expected as this is the period when rates start to pick up. He said delinquencies will likely continue to increase all the way through the end of the year.

The foreclosure inventory rate remained stable from the month prior at 3.18 percent, but it was 13.5 percent higher than May of 2010. Blecher explained that while some stability has been achieved in the foreclosure inventory rate, a further decline over the coming months is unlikely.

The national noncurrent loan rate, which reflects both foreclosures and delinquencies, came in at 12.38 percent. Not including REO properties, nearly 6.3 million loans were noncurrent in May. When REO properties were included, the total jumped to nearly 7.4 million.

On a state-by-state basis, Florida and Nevada continued to hold the most noncurrent loans in May, with rates of 22.4 percent and 21.8 percent respectively. On the other end of the spectrum, the lowest noncurrent loan rates were seen in North Dakota, at 4.1 percent and South Dakota, at 5 percent.”

March 15, 2010

Servicers Complete 170,000 Permanent HAMP Mods

It’s been a year since the government’s Home Affordable Modification Program (HAMP) was implemented and only 170,207 troubled homeowners have received permanent loan restructurings. The number of modifications in thepermanent column did increase 45 percent from 116,297 in January, but it’s still a mere drop in the bucket when you consider the Treasury’s own estimate that there are currently 1.8 million borrowers who are behind on their payments and eligible for the program.

According to the administration’s February HAMP report card released Friday, more than 1.3 million homeowners have received offers for trial modifications, and the Treasury says this represents 34 to 45 percent of the administration’s goal of 3 to 4 million offers extended by the end of 2012. But the sticking point still seems to be in converting trials to permanent status.

The colorful debate continues over whether the blame for this lies with the servicers or the homeowners themselves. DS News is still hearing homeowner horror stories of servicing staff losing paperwork, misplacing files, or being so unfamiliar with the program procedures that homeowners and their counselors are given erroneous information when they finally reach someone for follow-up.

On the other hand, though, servicers say the delay in many cases is on the part of the borrower. And the Treasury’s February report does show that there are another 91,843 permanent modifications pending, that have been approved by servicers and are just waiting on the borrower’s signature.

During the conversion process, servicers have repeatedly faulted borrowers for not providing the correct required documentation to finalize the modification. The Treasury is expecting to circumvent this blip in the program, though, by requiring that all the necessary paperwork be submitted prior to the trial phase commencing.

Throughout the first 10 months of HAMP, servicers were allowed to initiate a trial mod based on stated, not verified, income. The verification came later, after the borrower successfully completed their trial payments but before the mod was converted to permanent status. The new upfront requirement applies to all new HAMP modifications that become effective after June 1, and the Treasury says this policy change should significantly expedite servicers’ conversion rates.

As of the end of February, the Treasury says more than one million borrowers were receiving a median savings of $500 each month – a 36 percent median monthly payment decrease. In aggregate, the administration calculates that homeowners have saved over $2.7 billion through trial and permanent modifications. Upon completing one year of on-time payments per HAMP guidelines, borrowers are eligible to earn up to $1,000 to be applied to their outstanding mortgage balance.

Of modifications that have converted to permanent status, the Treasury reports that 0.9 percent have been canceled, due to the borrower’s failure to fulfill the payment obligations. Of all modifications started, 8.2 percent have been canceled.

Looking at the largest servicers’ numbers, Wells Fargo has completed 24,975 permanent modifications, putting it out in front of the pack yet again. Bank of America has permanently modified 20,666 of its troubled mortgages, but has another 22,000 pending.

JPMorgan Chase has converted 19,385 trials to permanent status. CitiMortgage has completed 15,607 permanent mods, and GMAC has permanently modified 14,675 delinquent loans.