Mortgages and Housing: Monthly Home Prices, Sticking Freddie?, HAMP and Investment Properties, Fed Funds Predictions, Off the Cliff, Buffett on Housing, Quicken Keeps Servicing, Kamala Harris Wants FC Pause, FHFA 29 Pages, DeMarco on GSEs, Fed Mission Creep?, Fed and AIG, Reverse Mortgage Leads, Settlement Section

BillCoppedge_26Nov2011original content selection by MortgageNewsClips.com

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(great chart) FHFA Monthly Home Prices: December 2011Paper Economy – A US Real Estate Bubble Blog

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Fannie Putting More Dubious New Loans Back to BofA, So BofA Will Stick Them to Freddie Instead – Yves Smith – Naked Capitalism   (you gotta love Yves)
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Treasury to cap HAMP mods to property investors – By Jon Prior – The Treasury Department will cap the amount of mortgage modifications property investors can receive under a revamped Home Affordable Modification Program, officials said this week, to no more than a handful. – Housingwire
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(Fed funds futures predict) Those believing the Fed is on hold for the next 3 years will be in for a rude awakeningSober Look Blog 

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The Rewards of Pushing Housing off a Cliff - By JONATHAN R. LAING – Former heads of Freddie and Fannie probably won’t have to pay fines if the SEC lets them settle security-fraud cases by signing consent decrees. – Barrons 

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Buffett’s Views on Housing – by CalculatedRisk

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(on Quicken retaining servicing) Tom Walsh: Quicken jumps in where others bail outDetroit Free Press

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Harris Wants Fannie Mae, Freddie Mac to ‘Pause’ Foreclosures - By AARON GLANTZ – Attorney General Kamala Harris wants Fannie Mae and Freddie Mac to place "a good faith pause on foreclosure sales in California" until the federal government completes "a thorough, transparent analysis" of the possibility of writing down the debt of borrowers who owe more on their homes than they are worth. Harris made the request in a letter sent Friday to Edward DeMarco, the acting director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac. – The Bay Citizen
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(29 page report) A report to report on the report – by Craig Masters – Federal Housing Finance Agency – Office of Inspector General – …. FHFA-OIG is authorized to conduct audits, evaluations, investigations, and other activities of the programs and operations of FHFA; to recommend policies that promote economy and efficiency in the administration of such programs and operations; and to prevent and detect fraud and abuse in them. … This report is about an extensive study into the amount and use of taxpayer money being spent to both prosecute and defend the former senior executives of Fannie Mae and Freddie Mac.- Greeley Gazette

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Fannie Mae and Freddie Mac Require Investment, DeMarco Says – By Lorraine Woellert – (Bloomberg Businessweek) – With no plan from Congress or the Obama administration to shutter Fannie Mae and Freddie Mac, the companies’ regulator told Congress today it will expand its oversight with a strategic plan to develop new systems and standards for home loans.

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(Fed mission creep?) Fed’s push on housing crosses a line, critics say – By Zachary A. Goldfarb – Senior Federal Reserve officials are injecting themselves into a noisy debate over how to solve the housing crisis, drawing criticism from some lawmakers who say the Fed has no business straying from its traditional role as the U.S. central bank – Washington Post

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(read this lots of good stuff) The Fed stands to make good money on AIG assets, assuming the assets (Maiden Lane II & III) can be sold – The Fed stands to make good money if it could liquidate its holdings of the AIG rescue facilities. The table below shows what the Fed needs to get back in order to break even ("Current Senior Loan Balance") and "fair value" of assets supporting it. After the loan gets repaid, the Fed and AIG split the proceeds on the collateral sales, with the Fed keeping lion’s share of the proceeds as profit. – Sober Look Blog

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Reverse Mortgage Originators Look to New, Growing Referral Source - by Elizabeth Ecker – (about in-home care providers) -  Reverse Mortgage Daily
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Settlement Section

(settlement) States, Banks and the $25 Billion Mistake: How Not to Prevent Mass Foreclosures – Carl Horowitz – … Yet amid the hoopla of this “historic” agreement are some inconvenient realities. For the settlement was a product of populist enthusiasm driven by an image of rapacious, unscrupulous bankers throwing hundreds of thousands, if not millions of unsuspecting homeowners onto the streets. State and federal officials exploited the prevailing winds. Perhaps they should have listened more closely to the lone holdout, Oklahoma Republican Attorney General E. Scott Pruitt. The following are some major downsides to the agreement. (has 5) … It’s hard to see the $25 billion settlement as anything but a shakedown. The fix was in from the start. Banks were presumed guilty. The question of the settlement was never “if,” but “how much.” ... – Town Hall.com

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(screwing investors even more) Banks Win Reprieve on Home Equity Loans in Settlement: Mortgages – By Kathleen M. Howley – (Bloomberg Businessweek) — … banks that settled a nationwide probe of foreclosure practices this month will get a bonus from the deal: protection for $308 billion of home-equity loans they hold. …  will be able to share losses on their junior loans with bondholders and get credit toward the cash they pledged to spend in the settlement, … Second liens would typically be wiped out before senior-mortgage investors take a loss, said Laurie Goodman, managing director at Amherst Securities Group LP in New York. It’s “a gift to the banks, at investors’ expense,” said Goodman, a member of the Fixed Income Analysts Society’s Hall of Fame. … “A proportionate write-down of the first and second represents a reversal of normal lien priority.” 

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