Repurchase Demands (3), Smaller Servicers Grow, Mark Hanson on Shadow Inventories, Rahm Opposes Eminent Domain

BillCoppedge_26Nov2011original content selection by

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Repurchase Demands (3):

(repurchase demands total cost so far) Freddie-Fannie Push Bank Bad Debt Cost To $84 Billion: Mortgages – By Donal Griffin and Laura J. Keller – Fannie Mae and Freddie Mac have expanded efforts to get refunds on soured mortgages, boosting the cost of faulty home loans and foreclosures at the biggest U.S. banks since 2007 to at least $84 billion. – Bloomberg

(ramping up repurchase demands) Fannie Mae, Freddie Mac clamping down on banks – (Reuters) – Government-owned Fannie Mae and Freddie Mac are stepping up efforts to find bad home loans that they can force mortgage lenders to buy back from them, providing an increasingly bigger headache to banks. 
How to Make Your GSE Loan ‘Buyback Proof’ – Paul Muolo – On Monday, National Mortgage News will publish a story in its paper edition (yes, paper) that says the Federal Housing Finance Agency is working on language that will make GSE loans bullet proof from buybacks if they’ve been current for 36 months. Freddie Mac officials crafted some of the language, we’re told. But the devil is in the details


Other News:

Smaller Servicers Begin to Show Strong MSR Growth – Paul Muolo – Small- to medium-sized mortgage banking firms are starting to post handsome increases in their servicing portfolios, a sign that “deconsolidation” of the industry is becoming more of a reality – National Mortgage News

Mark Hanson Blog: "Shadow” & “Ghost” Inventory Quantified – by MARK – Those estimating “shadow” inventory at levels inconsistent with a multi-year drag on housing are “definitionally” challenged.  Moreover, they have bad data. Bottom Line:  based on the data and simple math we have at least 10 -years of distressed supply to work through based on the past two years average monthly distressed sales demand quoted by the National Association of Realtors. Most “Shadow” inventory estimates use incorrect demand numerator assumptions and do not account for borrowers who are technically “stuck”. – more

(Chicago) Mayor opposes using eminent domain to combat foreclosures – By: Abraham Tekippe – (Crain’s) — Mayor Rahm Emanuel has spoken out against a proposal that would use the government’s power of eminent domain to help mitigate Chicago’s foreclosure crisis. "The idea of using eminent domain is not one I support … because I don’t think it’s the right way to address the problem," Mr. Emanuel said during an unrelated press conference today at the newly renovated Morse Red Line station. "I don’t think it is the power of the city to deal with the housing issue. We have a national issue. I think we have to address the issue. I just don’t think that is the right instrument." 

(interesting analysis and charts) “Shadow” & “Ghost” Inventory / Negative & “Effective” Negative Equity…The Real Challenges for US Housing – by MARK HANSON


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