Wait Until Spring, Paying Fair Share, Harley Bassman Twists, QE3, FHFA on Eminent Domain, Corelogic and Calculated Risk on Housing, Renting Everything, JPM Buybacks, Citi Rentals, Mortgage Fraud in SE

BillCoppedge_26Nov2011original content selection by MortgageNewsClips.com

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Real recovery in home prices not expected until spring – By Les Christie @CNNMoney

(read all of this) Reader Question: Could Obama Balance the Budget by Getting the Wealthy to Pay Their "Fair Share"? – … "Paul" (name changed by Mish) writes … I’m having an argument with a friend who says the problem with the deficit is that many people do not pay their fair share in taxes. For example, my friend notes that Mitt Romney pays taxes at a 13% rate despite his huge riches. My friend believes that if tax rates were adjusted higher for the rich and super rich we’d be out of debt. He is even a business owner who is part of the 1%! Can you challenge what my friend says?MISH’S Global Economic Trend Analysis 
(Harley Bassman) Credit Suisse Strategist Urges Federal Reserve to ‘Twist’ MBS – All Yoon, DJ – … Harley Bassman, a trading strategist on the radar of central bankers, sent Fed officials a letter in which he urged them to retool their "Operation Twist" that’s been used to lower long-term Treasury rates for mortgage-backed securities, tapping into the $853 billion in MBS it has amassed through earlier rounds of economic stimulus. From that, he added, it should begin selling older MBS backed by higher-rate loans and purchasing new ones at today’s rates. …Fox Business

Here’s What Fed May Do Instead Of QE3 – By MORAN ZHANG: – … It is true that QE3, particularly if it focused on purchases of mortgage-backed securities, would probably help to lower mortgage rates a little further. … Economists believe that the best option for the Fed to achieve its goals would be a cut in the interest rate payable on excess reserves combined with the launch of a new "Funding for Lending" program, whereby the Fed might provide cheap short-term loans to banks in exchange for guarantees they will resume lending to individuals and firms. … – International Business Times

FHFA Threatens to Kneecap Use of Eminent Domain to Condemn Mortgages – Yves Smith – … Now let us recall that using eminent domain is a mere fondly-hoped-of cash cow for promoters like Mortgage Resolution Partners, who plan to nick a fee on every performing mortgage condemned (they are targeting ONLY borrowers that are paying on time but deeply underwater). While we think eminent domain could be a tremendously useful tool for getting around servicers who refuse to do modifications of borrowers who are delinquent or under financial stress, we are firmly opposed to the MRP scheme (the big reason is that the price at which they propose to condemn the mortgages is under fair market value and hence tantamount to stealing) …Naked Capitalism
CoreLogic sees housing as bright spot in gloomy economy – Posted by kpanchuk – … While housing data remained gloomy for years, CoreLogic believes the segment is seeing sparks of hope with REO sales dropping, inventory levels declining and the nation’s foreclosure inventory slowing.  … – Housingwire
House Prices will decline month-to-month Seasonally later in 2012 – Bill McBride – Sometimes it helps to state the obvious in advance … The Not Seasonally Adjusted (NSA) house price indexes will show month-to-month declines later this year. This should come as no surprise and will not be a sign of impending doom. The key is to watch the year-over-year change and to compare to the NSA lows earlier this year. I think house prices have already bottomed, and will be up slightly year-over-year when prices reach the usual seasonal bottom in early 2013. – Calculated Risk

(renting everything) Recession Generation Opts To Rent Not Buy Houses To Cars – By Caroline Fairchild – Bloomberg

JPMorgan Likely Done With Mortgage Cleanup: KBW – By Dan Freed – (TheStreet) — JPMorgan Chase is likely finished setting aside capital to repurchase problem mortgages it packaged into securities and sold leading up to the crisis, according to a research report published Thursday. 

Citi Sells 500 Troubled Mortgages To Return-Hungry Hedge Funds – Halah Touryalai – Citi sold 500 mortgages to two hedge funds that want to turn the properties into rentals while keep homeowners from being evicted. Here’s one free-market solution to the housing crisis: Keep troubled borrowers in their homes by turning their homes into rental properties. – -more details – Forbes

Mortgage Fraud Risk Rises in Southeast – By Evan Nemeroff – After reaching its lowest mark in almost three years in the first three months of 2012, Interthinx’s national mortgage fraud risk index trended up again in the second quarter. Through the second quarter, the fraud risk index is 149—normal is 100. This figure is a 6.7% quarter-over-quarter increase and is up 4.5% from a year ago. The Agoura Hills, Calif.-based risk mitigation firm said the second quarter change was primarily driven because 91 metropolitan statistical areas moved into the “very high risk” category, compared to only 63 the previous quarter. – National Mortgage News 


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