Reverse mortgages have become the new minefield in government sponsored mortgage lending. According to an independent estimate done for HUD, losses could exceed $28 billion through 2019. To put that figure into perspective, total losses to the FDIC Deposit Insurance Fund for the 51 banking failures of 2012 total only $2.5 billion. The good news […]
FHA Reverse Mortgage Losses Of $28 Billion – Profits For Banks, Disaster For Borrowers and Taxpayers
December 15, 2012 By Leave a Comment
FHA Loans Immediately Put Borrowers Into A Negative Equity Position
December 15, 2012 By Leave a Comment
In a speech given at the Brookings Institution, Brian Moynihan, CEO at Bank of America, said “We need to look hard at some of the old assumptions and ask the question is homeownership the right solution for everyone?” Moynihan went on to cite the Federal Housing Administration (FHA) as an example of what is wrong […]
Congress Moves To Prevent FHA Collapse With “FHA Emergency Solvency Act”
February 8, 2012 By Leave a Comment
The latest FHA Single-Family Outlook report from the FHA shows that serious delinquencies continue to plague the FHA. The number of seriously delinquent FHA loans increased by 18.9% from last year to a record number of 711,082 mortgage loans. FHA loans classified as seriously delinquent amount to 9.6% of all FHA insured mortgages. A seriously […]
Interest Rates At All Time Lows And Home Prices At Ten Year Lows – Why Are Home Sales The Worst Ever?
February 1, 2012 By 1 Comment
In Federal Reserve Chairman Ben Bernanke’s world, all he had to do was lower interest rates enough and housing prices would magically re-inflate. Wrong! Mortgage rates are at all time lows, home prices are at 2002 levels and owning a home is just as cheap as renting, yet the housing market remains mired in a […]
Foreclosure Inventory Near Record Highs, Attempts To Slow Foreclosures Is Prolonging The Housing Crisis
January 28, 2012 By 1 Comment
LPS Mortgage Monitor has come out with a comprehensive series of charts including the current level of foreclosures, delinquencies by year of origination, length of time homeowners have not made a payment in judicial states, states with largest drops in non-current mortgages and foreclosure rates in judicial vs non judicial states. The states with the […]
Banking News – Daily Banking Update
December 28, 2011 By 3 Comments
Welcome to Banking Update, a roundup of articles and news from around the Internet. The government keeps trying new foreclosure programs despite the failure of previous ones, homeowners past due by more than 60 days are unlikely to recover, home prices continue to drop, mortgage fraud continues and almost half of all home purchases are […]
Banking Update – Daily Banking News
December 21, 2011 By Leave a Comment
Welcome to Banking Update, a roundup of articles and news from around the Internet. The Bank of America situation just keeps getting worse with another large fine for BofA, foreclosures are weighing down the balance sheets of banks, Nevada home prices just keep on dropping after a 63% delcine, home equity borrowings have collapsed, the […]