PNC Repurchase Demands, QE3 on Aug 1?, MBA on QM, Credit Bureau Oversight, Boomers vs. Young, Zuckerberg’s 1%, Rates and Housing, Eminent Domain, FNMA and SPOC, HARP, Home Equity Shocks, HO Costs Drop, Liborgate

BillCoppedge_26Nov2011original content selection by MortgageNewsClips.com

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(GSE repurchase demands) PNC Profit Falls 40% on Costs Tied to Mortgage Putback – Bloomberg – … Net income fell to $546 million, or 98 cents a share, from $912 million, or $1.67, a year earlier, the Pittsburgh-based bank said today in a statement. … – National Mortgage News

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(gives 3 reasons why) August 1st QE3 Departure Date? – by Bill McBride – … By my count, if Bernanke decides that QE3 is appropriate, he will have 10 or 11 votes on August 1st. Maybe the FOMC will wait for more data, but I think QE3 is likely very soon. … – Calculated Risk
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MBA Warns QM Rule Could Unduly Impede Lending – By: Krista Franks Brock – … “How it is finalized – what it contains and how it is structured – will determine how many consumers have access to safe, affordable and sustainable mortgage credit for generations to come,” the trade group stated in its letter to the CFPB. The MBA warned that “without lending, the economy will not recover,” and the ability to repay/qualified mortgage (QM) rule has the potential to substantially restrict lending. …The M Report
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U.S. Consumer Watchdog to Oversee Credit Bureaus – By VICKIE ELMER – The Consumer Financial Protection Bureau is set to announce on Monday that it will begin supervising the leading credit bureaus, the companies that collect financial details of everyone’s life. The credit bureaus join mortgage brokers, payday lenders and credit card companies among the institutions beyond banks that the bureau regulates. – NY Times Dealbook
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The twin lost decades in housing and stocks – baby boomers selling homes to a less affluent young American population. The impact of baby boomers on the housing market.Dr. Housing Bubble

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Zuckerberg’s Loan Gives New Meaning to the 1% – By John Gittelsohn and Dakin Campbell  – …The Facebook Inc. (FB) founder refinanced a $5.95 million mortgage on his Palo Alto, California, home with a 30-year adjustable-rate loan starting at 1.05 percent, according to public records for the property. While almost all lending rates have reached historical lows this year, the borrowing costs available to high-net-worth individuals are even lower if the person is willing to bear the risk of monthly interest rate adjustments, said Greg McBride, senior financial analyst with Bankrate Inc. … “When you can borrow at a rate below inflation, you’re borrowing for free,” McBride said in an e-mail. “This is the concept of using other people’s money and it preserves financial flexibility for the borrower.” … – Bloomberg

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(interesting charts and commentary) Low Mortgage Rates Stimulate Housing – David Sims – Seeking Alpha

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SIFMA Statement On the JPA’s Proposed Use of Eminent Domain to Take Mortgage LoansSIFMA Press Release

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White House Skeptical of Plan to Seize Mortgages by Eminent DomainWSJ Economy Stream – The Obama administration has concerns with a proposal—backed by a one-time major fundraiser to President Barack Obama—that would use eminent domain to seize and restructure mortgages.
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Fannie Mae to train mortgage servicer single points of contact – By Jon Prior – Fannie Mae opened training to call center employees at mortgage servicing shops around the country. A total of 18 servicers adopted the Know Your Options Customer Care program over the last year, … Fannie will provide scripting for receiving calls from homeowners and help installing other quality controls. Servicers with at least 1,000 delinquent Fannie loans will be asked to join the program, which will be free of charge … – Housingwire
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More underwater borrowers shorten mortgage under HARP – By Jon Prior – More Fannie Mae and Freddie Mac borrowers who owe more on their mortgage than their home is worth chose to refinance into shorter-term loans in order to rebuild equity faster, according to the Federal Housing Finance Agency. Roughly 19% of homeowners who are more than 5% underwater chose 15- and 20-year terms when offered a workout under the Home Affordable Refinance Program. That percentage is more than double the average in 2011, according to the FHFA report. – Housingwire

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FHFA: HARP Represents 20% Of Refinance Market – by MortgageOrb.com – Loans connected to the Home Affordable Refinance Program (HARP) represented 20% of total refinance volume in May, the largest increase since the program was launched in 2009, according to new data from the Federal Housing Finance Agency (FHFA). … During the first five months of this year, more than 78,000 refinances were completed, exceeding the total HARP refinances during all of 2011. In May, borrowers with greater than 105% LTV accounted for nearly one-third of HARP volume.
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(payment shocks coming) Here Comes the Catch in Home Equity Loans – By GRETCHEN MORGENSON – … During the initial years of home equity credit lines, borrowers must pay only interest. … What’s known as the initial draw period for home equity lines of credit is coming to an end for many borrowers. Soon, they will have to pay principal as well. … While $11 billion in home equity lines are starting to require principal and interest payments this year, the amount jumps to $29 billion by 2014, the office said. That is followed by a surge to $53 billion in 2015 and $73 billion in 2017. For 2018 and beyond, it’s $111 billion. … – NY Times

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(lower rates is why – charts and tables) Monthly cost of home ownership down over 50% from 2006OC Housing News

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Liborgate Section: 3 more

(endless lawsuits continued) Analysis: Wall Street may face Libor legal threat from small banks – By Tom Hals – (Reuters) – The thousands of community banks have often said their much larger counterparts have trampled on them. Now some hope the latest Wall Street scandal could give them ammunition to strike back.

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New York Fed to Barclays: ‘Mm hmm’ – If Libor-fixing is such a great scandal, why did Geithner and other regulators do so little?Wall Street Journal

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House panel to probe LIBOR scandal; CalPERS might seek damages – By Jim Puzzanghera and Marc Lifsher – A House committee is launching a bipartisan investigation into allegations that large banks rigged a key interest rate and plans to question Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Timothy F. Geithner at upcoming hearings. At the same time, officials at the country’s largest public pension fund, the California Public Employees’ Retirement System, said Monday they were examining the impact of the rate-fixing scandal and might seek damages if they could be calculated. – LA Times

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