MBS Market Shrinks, Deed in Lieu, HE Loans Decline, Exponential Growth, QE Odds Rise, CFPB on Mortgages, CFPB and LO Comp, How Will They vote?, Obama and Housing, Contract For Deed, Ocwen Reverse?, Low Inflation

BillCoppedge_26Nov2011original content selection by MortgageNewsClips.com

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(Delevering?) Mortgage Bond Market Dwindles To Aid Fed Punch: Credit Markets – By Jody Shenn – The market for mortgage securities backed by the U.S. government is the smallest in three years, bolstering the value of the debt and potentially expanding the effects of any new buying by the Federal Reserve. The outstanding amount of Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities shrank to $5.24 trillion in July, about the lowest since July 2009, following a $34 billion decline from March, according to Bank of America Corp. data. The market has receded by $150 billion from its 2010 peak – Bloomberg

Clarifying Deed In Lieu Of Foreclosure – It’s STILL A Foreclosure – by Donna S. Robinson – Realty Biz News

(charts too) In spite of easier underwriting standards, home equity balances continue to declineSober Look Blog – According to the latest OCC survey, banks in the US have been easing credit standards for home equity loans. Except for the poorly collateralized loans (HLTV), the survey indicates banks are once again becoming increasingly comfortable with this sector. … With these facts in mind, one would think that the holdings of these loans on bank balance sheets should be growing. But the reality is quite different … But as the bank survey shows, a great deal of this reduction has been driven by lower demand from the borrowers rather than tightening credit standards. The US consumer deleveraging continues. ...

(exponential growth MUST continue or we fall apart) What to Do When Every Market Is Manipulated – Hint: cut the strings – by Chris Martenson’s Peak Prosperity

Chance of Fed printing more money rises to 60 percentBusiness Recorder -  … according to a Reuters poll that also showed economists lowering economic growth expectations for this year and next. … The latest findings are based on a survey of 17 of the Wall Street primary dealers who deal directly with the Fed, as well as an additional 44 economists in the monthly Reuters Poll. It was the first time this wide sample of economists put the probability of more quantitative easing, or QE3, at greater than 50 percent …

CFPB proposes no-point, no-fee mortgages – Steve Goldstein, MarketWatch – … to make it easier for prospective homeowners to comparison shop. … “These options would enable a consumer buying or refinancing a home to better compare competing offers from different creditors, better able to compare loan offers from a particular creditor, and decide whether they would receive an adequate reduction in monthly loan payments in exchange for the choice of making upfront payments,” the CFPB said in a release …
LO Comp Proposal Issued by the CFPBNational Mortgage Professional – Highlighted among the rules set forth by the CFPB:
►Require lenders to make a no-point, no-fee option available
►The prohibition of steering incentives towards LOs:
►Require an interest-rate reduction when consumers elect to pay upfront points or fees:
►Set screening standards: (for LO’s)
►Restrictions on arbitration clauses and financing of credit insurance

How will they vote?
Revealed: HALF of the U.S live in households that receive government benefits
UK DAILY MAIL – … according to a new report. Data from the Census Bureau revealed that 49.1 per cent of the population live in a household which gets at least one kind of government benefit with many likely to receive more than one. 
Chart Of The Day: Americans At Or Below 125% Of The Poverty Level
– Submitted by Tyler Durden – …  makes about $28,800 a year, government figures show." And visually… As usual, if anyone expects these 66 million Americans (over 20% of the US population) to vote for someone who dares to even think about taking away any of the entitlements said tens of millions of people are used to, then by all means buy Las Vegas real estate. … – Zero Hedge
Cautious Moves on Foreclosures Haunting Obama – By BINYAMIN APPELBAUM – NY Times

Part One: “Contract For Deed” – Ideas For Financing Your Next Home Purchase Without Credit or Qualifying – by Donna S. Robinson – … A contract for deed simply means that a buyer and seller enter into an agreement in which the seller agrees to sell a piece of real estate to a buyer for monthly payments. When the buyer has made all of the agreed upon monthly payments, the buyer receives title to the property. As a seller I like this type of agreement because I still retain my title to the property while the buyer is making payments. If the buyer defaults on the contract, I may not have to go through a foreclosure proceeding. And my profits from the sale of the property are only taxed as they are received, so I can spread out any tax liability over a number of years, instead of having to pay capital gains taxes on an entire sale all at once. As a buyer I like the idea of a contract for deed because I do not have to worry about trying to qualify for a traditional mortgage … – Realty Biz News

Will Ocwen Be the Next Big Reverse Mortgage HMBS Player? – by Elizabeth Ecker – Reverse Mortgage Daily

Why Investors See Low Inflation for the Next 10 Years – By Chris Farrell – Bloomberg Businessweek


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