New home sales were below the January 2009 rate of 329,000 and there is no way to sugarcoat these numbers, according to Weiss Research real estate analyst Mike Larson.
Despite the extension of the homebuyer tax credit in November, sales of newly constructed homes fell to a seasonally adjusted annual rate of 309,000 in January from a 348,000 rate in December.
"They stink," Larson said. "Fewer new homes were sold in this country than at any time since the Kennedy administration. The inventory of homes for sale increased, and the median price of a new home fell to its lowest level in more than six years," Mr. Larson said
New home sales plunged 11.2% in January from the previous month ending a streak of encouraging news on a possible housing recovery.
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Thursday, February 25, 2010
Mortgage Loan Compliance | Fourth Quarter Mortgage Fraud Index
The occupancy fraud risk index rose 16% since last quarter, the first significant increase in the index since the fourth quarter of 2006. The magnitude of the quarter-on-quarter increase suggests that occupancy fraud risk will be a serious issue going forward, as continuing price declines and get-rich-quick schemes lure investors back into the market and as builders face continuing difficulty in moving unsold inventory.
California now has the highest risk of mortgage fraud with an index value of 222, according to a report from Interthinx.
Nevada, which had the highest index for the previous five quarters, drops to second place with an index of 220, and is closely followed by Arizona with an index of 211, according to the Mortgage Fraud Risk Report for the fourth quarter of 2009.
Florida remains in fourth place at 179, while Colorado is fifth at 153.
Despite a 4% quarter-on-quarter decrease, the property valuation fraud risk index is up 40% over last year and up more than 100% from two years ago. Schemes involving short sales, real estate owned inventories, wholesale flipping, and refinancing by borrowers whose equity has been impaired by falling real estate values continue to drive this index.
Analysts expect lenders to focus more closely on fraud risk mitigation as they work to emerge from the downturn. This will help guard against the potential for fraud as a large number of adjustable rate mortgage loans, especially option adjustable rate mortgages with negative amortization features which reset between now and the first quarter of 2012.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
California now has the highest risk of mortgage fraud with an index value of 222, according to a report from Interthinx.
Nevada, which had the highest index for the previous five quarters, drops to second place with an index of 220, and is closely followed by Arizona with an index of 211, according to the Mortgage Fraud Risk Report for the fourth quarter of 2009.
Florida remains in fourth place at 179, while Colorado is fifth at 153.
Despite a 4% quarter-on-quarter decrease, the property valuation fraud risk index is up 40% over last year and up more than 100% from two years ago. Schemes involving short sales, real estate owned inventories, wholesale flipping, and refinancing by borrowers whose equity has been impaired by falling real estate values continue to drive this index.
Analysts expect lenders to focus more closely on fraud risk mitigation as they work to emerge from the downturn. This will help guard against the potential for fraud as a large number of adjustable rate mortgage loans, especially option adjustable rate mortgages with negative amortization features which reset between now and the first quarter of 2012.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Wednesday, February 17, 2010
Mortgage Loan Compliance | Home Affordable Modification Program
The Treasury Department reported that Home Affordable Modification Program servicers have completed 116,300 permanent modifications since the modification program was launched last spring. The first 5,000 permanent modifications were completed in October.
Another 830,500 homeowners are participating in three-month payment trials and their monthly payments have been reduced on average by more than $500.
Mortgage servicers completed nearly 50,000 permanent HAMP modifications in January, up from 35,000 in the previous month, as the government's HAMP appears to be finally gaining traction.
"With nearly 1 million homeowners paying less each month and the number of permanent modifications steadily rising, HAMP is doing the job it was designed to do," said Phyllis Caldwell, chief of Treasury's Home Preservation Office.
Treasury also reported that 60,500 borrowers have dropped out the payment trials during the life of program and 1,000 permanent modifications have been cancelled.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Another 830,500 homeowners are participating in three-month payment trials and their monthly payments have been reduced on average by more than $500.
Mortgage servicers completed nearly 50,000 permanent HAMP modifications in January, up from 35,000 in the previous month, as the government's HAMP appears to be finally gaining traction.
"With nearly 1 million homeowners paying less each month and the number of permanent modifications steadily rising, HAMP is doing the job it was designed to do," said Phyllis Caldwell, chief of Treasury's Home Preservation Office.
Treasury also reported that 60,500 borrowers have dropped out the payment trials during the life of program and 1,000 permanent modifications have been cancelled.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Tuesday, February 9, 2010
Mortgage Loan Compliance | FHA 4Q Originations and Foreclosures Up
Housing officials say they need to raise the FHA upfront mortgage insurance premium 50 basis points to 2.25% this April to cover rising claims and losses. Foreclosures involving FHA-insured loans totaled 20,650 in the fourth quarter, up 41% from the same quarter in 2008.
On the upside, Lenders originated $86.1 billion in FHA-insured single-family loans in the fourth quarter, up 21% from same quarter in 2008.
The Federal Housing Administration reported that 60% or $51.8 billion of the endorsements involved home purchase loans during the final quarter of calendar year 2009. FHA insurance-in-force grew by 24% during in the calendar year to $752.6 billion as of Dec. 31.
Meanwhile, the percentage of single-family loans 90 days or more past due grew by 34%. FHA ended the year with a 9.12% default rate, up from 6.82% at yearend 2008. The use of short sales to avoid foreclosure shot up 140% from a year ago to 2,925 in the fourth quarter of 2009.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
On the upside, Lenders originated $86.1 billion in FHA-insured single-family loans in the fourth quarter, up 21% from same quarter in 2008.
The Federal Housing Administration reported that 60% or $51.8 billion of the endorsements involved home purchase loans during the final quarter of calendar year 2009. FHA insurance-in-force grew by 24% during in the calendar year to $752.6 billion as of Dec. 31.
Meanwhile, the percentage of single-family loans 90 days or more past due grew by 34%. FHA ended the year with a 9.12% default rate, up from 6.82% at yearend 2008. The use of short sales to avoid foreclosure shot up 140% from a year ago to 2,925 in the fourth quarter of 2009.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
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