A number of delinquency measures including the delinquency rate and percentage of loans in foreclosure rose during the third quarter of 2006 according to a survey released Wednesday by the Mortgage Bankers Association. Though the increase was across the board, affecting prime, subprime and FHA mortgages, it was larger for FHA and “increases in delinquency rates were noticeably larger for subprime loans, particularly for subprime ARMs.”. The survey showed no indication of excessive problems with “non-traditional products such as interest-only or payment-option mortgages” compared to more traditional prime and subprime mortgages.
Copies of the survey are available for purchase by calling the Mortgage Bankers Association at (800) 348-8653.
Delinquency Measures on the Rise
14-Dec-06A Pennsylvania Housing Finance Agency study released Tuesday highlights the potential of education and counseling to reduce delinquencies.
Underscoring the need for more homeownership counseling, the study participants generally thought that many residents might avoid foreclosure if they were better educated about default and delinquency prevention.
According to the studys findings,“Too many foreclosed properties remain vacant, leading to vandalism and increased costs of rehabilitation for re-occupancy. Some out-of-state buyers of foreclosed properties are inexperienced and unfamiliar with mainetenance and management responsibilities.â€
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While Congress debates setting up a new entity to regulate the government sponsored mortgage market makers Fannie Mae and Freddie Mac, HUD is stepping in under existing authority to review their financial statements.
To that end, the Department will soon initiate a review of Fannie Mae and Freddie Mac investments and holdings, including certain equity and debt investments, with a focus on transactions classified on their financial statements as ‘other assets/other liabilities.’
HUD’s primary concern is whether the GSEs’ investment activities are consistent with their charter authorities and public purposes and whether each is using the profits it derives as a government-sponsored enterprise for the purposes intended.
Freddie Mac’s Homesteps unit just kicked off their latest sales promotion, Full House, which runs from May 1 to September 29 and offers buyers a portion of their closing costs paid and selling agent bonuses up to $1,000 on any of the nearly 10,000 Homesteps homes nationwide.
They “will pay up to 1.5%* of your purchase price in closing costs, for all offers presented between May 1, 2006 - September 29, 2006″ and “with escrow closed by November 17, 2006″. The closing cost credit can’t exceed the actual closing costs, so a buyer with only 1 percent closing costs would get a 1 percent credit.
Agents and buyers will also want to take note of one very important requirement:
In order to receive the closing cost discount, or to redeem a bonus certificate, the selling agent must mention the certificate at the initial Offer Negotiation with HomeSteps, or bonus will not be valid.
For full details of the promotion and to sign up for the closing cost or agent bonus coupon, visit the Homesteps Full House webpage. [Popup window]
ForeclosuresMass reports that Massachusetts foreclosure rate has hit a three year high, up 25% over last year.
Foreclosures were filed on 1,200 properties, 25 percent higher than the year before and 63 percent higher than February 2004. Compared to January of this year, foreclosures increased nearly 12 percent, with Middlesex County posting a 29 percent increase.
Boston Business Journal: Bay State home foreclosures hit three-year high - 2006-04-04