There are 19 lenders sitting on top of $325 billion dollars of Heloc’s that are ready to reset. When they do, lenders are somewhat fearful that it may result in new defaults.
Back in 2005 there were a lot of HELOC’s that were made. Well believe it or not, many of them are still alive and kicking and are close to resetting. When they reset, the we either come due as a balloon payment or they will become amortized. Either way this can be a problem for many homeowners. The question is, will people be able to deal with it, or will they throw in the towel and default.
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Short sales, bank-owned sales and public foreclosure auction purchases accounted for 16.2% of all U.S. residential sales in 2013, according to RealtyTrac. This figure is up from 14.5% of all sales in 2012 and is higher than the 15.2% mark seen during 2011. -- Evan Nemeroff in Origination News.
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London lake and Towers shared by John Brody
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Fitch Ratings sent a note today warning that extended foreclosure timelines are increasing the severity of losses in residential mortgage-backed securities.
There are some bright notes for mortgage investors. Home prices increases from the last two years help offset extended liquidation timelines. -- Jacob Gaffney for HousingWire
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Where are home sales headed?
Realtors: Strength hinges on job market
"It looks as if the job market will expand which suggests another pick up in home sales in 2014. Will it be as big...probably not. We saw almost a 9% gain in 2013, but for 2014 we expect it to be closer to 5% or 6%," said Nationwide Chief Economist David Berson. "If you look at November and December together, they were the weakest months of the year, which was partly due to weather, mortgage rates and continuous home price gains." -- Brena Swanson in HousingWire
---------------------------------------------Sortelha, Spain Shared by Xalima Miriel
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Builders unscathed by rising loan limits
Lone Star state comes out on top
"The larger public builders will continue to have superior access to capital markets and well-positioned land, enabling them to exploit the on-going cyclical housing expansion," Fitch Ratings noted in its own report this week.According the latest National Association of Realtors report, in all of 2013, there were 5.09 million home sales, up 9.1% from 2012: the strongest performance since 2006. -- Brena Swanson in HousingWire
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3 dangers housing finance faces in 2014
Ambiguous, complex, and inconsistent enforcment ahead
The overly complex demands of Dodd-Frank, the rise of non-subject matter regulators, and the politicization of the regulatory process are challenges the industry must face going forward, because there’s no relief in sight until housing reform becomes a priority, which most don’t see happening before 2016. -- Trey Garrison in HousingWire
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Here's where Zillow says home values are headed
Real estate megalith expects some markets to have affordability issues
Homes values are estimated to rise another 4.8% through December 2014, but local market trends are expected to differ, which may cause confusion and uncertainty among homebuyers and sellers, the latest Zillow report found. -- Brena Swanson in HousingWire
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Freddie Mac reported a slight increase in mortgage purchases during December even though refinancings dropped to the lowest level of the year.
------------------------------------------Halkidiki in Greece, shared by Dimitris Xlias
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When some of the oldest, big mall stores hit never ending struggles it is significant — reflective of larger economic trends derailing middle-class consumers, one of the largest home buying segments.
However, from a broader economic perspective – with large-box retailers struggling and homeownership declining – perhaps, it's safe to say staples of middle-class life are dying a slow death…just like the suburban shopping mall. -- Kerri Ann Panchuck in HousingWire
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New home sales fell 7% in December
Market inventory reaches a 5-month supply
New home sales fell in December, falling 7% below November’s revised rate of 445,000 sales to a seasonally adjusted annual rate of 414,000 units, the Commerce Department reported Monday. -- Brena Swanson in HousingWire
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Think Millennials are stalling the housing market?
Think again. They have nothing on reluctant thirty-somethings
For starters, rental prices keep going up, according to new data from TransUnion, which shows average rental prices rose nearly 4% from $1,034 in the third quarter of 2012 to $1,072 in the third quarter of 2013.
The credit risk of rental applicants also is improving, which suggests consumers are back to making enough money to cover their payments and are able to function in the rental market at a higher success rate.
Long term this is a positive trend for housing if these renters eventually make the transition to homeownership. -- Kerri Ann Panchuck in HousingWireThe credit risk of rental applicants also is improving, which suggests consumers are back to making enough money to cover their payments and are able to function in the rental market at a higher success rate.
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First by state: The states with the highest percentage of delinquent loans include Mississippi, New Jersey, Florida, New York and Louisiana.
The states with the best record for staying current are Montana, Colorado, Alaska, South Dakota and North Dakota.
Really good news: In December, foreclosure and seriously delinquent (90+ days) inventories reached their lowest levels since 2008. Also, foreclosure starts were down 23% for the entire year. The total U.S. foreclosure pre-sale inventory rate hovered at 2.48%. -- Trey Garrison in HousingWire
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Noravank in Armenia, shared by Jacob Surland
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