US Housing Nearing Bottom, Foreclosures Worrying (Vol 2) – More indication of a bottom forming in the US housing market emerged today courtesy of the Case-Shiller price index. At the same time, further warning signs emerged on the risk of rising foreclosures stifling a housing recovery. – S&P – Research Recap

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The Problem with Loan Modifications – … The Washington Post has a nice article this morning that walks through one of the reasons for this failure. The basic problem is that the argument in favor of loan modifications focuses on only one kind of borrower: those who would make payments with some help but won’t make payments without that help. However, those borrowers are outnumbered by two other types: those who would pay without help and those who won’t pay even with help. … – Donald Marron’s Blog

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SoCal Homeowners Put Themselves Underwater – By Tom Lindmark – Are you looking for one more thing to be incensed about? Well, here you go. The WSJ, citing a study done by a professor at Cal State Fullerton says that in Southern California borrowers who defaulted on their mortgages tended not to have bought at the top of the market but had refinanced their houses at least once.  From the Journal:  … The original loan-to-value ratio for these borrowers stood at a reasonable 84%, but second and third liens left homeowners with a combined loan-to-value ratio of about 150% by the time of the foreclosure sale date. … – BUT THEN WHAT
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Foreclosure chart of the day – Posted by: Felix Salmon – The chart comes from the Center for Responsible Lending: – also has commentary -  Reuters Blogs

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Essent Becomes First New Mortgage Insurer Since Rout – By Erik Holm, Hugh Son and Tian Huang – Essent Group Ltd., the insurer backed by JPMorgan Chase & Co. and Goldman Sachs Group Inc., said it will become the first firm to enter the mortgage guaranty business since the U.S. housing collapse.  Essent won approval to sell coverage in Pennsylvania, where its mortgage unit is based, the company said today in a statement. The insurer is enrolled in an expedited licensing program of the National Association of Insurance Commissioners and must seek approval from mortgage financers Fannie Mae and Freddie Mac before it can underwrite policies across the U.S., said Janice Walker, a spokeswoman for Essent. – Bloomberg