Nearby Foreclosures, Agents and Banks, Home Prices Rise, QM Straitjacket, Freddie Short Sales, CA Principal Relief, Fat Tail risks, Gens X and Y, GSE Risk Sharing Plans, FC Crisis Facts, Multi Generation Households Rise

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(link to report) Report: $2 Trillion in Home Equity Lost to Nearby Foreclosures – BY: TORY BARRINGER –  Foreclosures have drained nearly $2 trillion in home equity from neighborhoods across the United States, according to a report from the Center for Responsible Lending (CRL). – The M Report
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Agents Suggest Banks May Be Holding onto REOs – BY: ESTHER CHO – DS News
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Annual home prices rebound and rise 2.6%: LPS – By Kerri Ann Panchuk – Housingwire

————
How to Loosen the ‘Qualified Mortgage’ Straitjacket – Clifford Rossi – … The CFPB is in the awkward position of having to make a tradeoff between protecting consumers from contemptible lending practices and limiting their availability to mortgage credit.  … – American Banker

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(QE3 the answer to all problems) What Is The Fed Doing? I Love Ben Bernanke – Russ Fischer – Seeking Alpha
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(curbs fraud too) Freddie Mac: New short-sale guidelines are win-win for everyone – By Kerri Ann Panchuk – … giving servicers the power to expedite the process of identifying qualified borrowers, … if a borrower acts in good faith on a short sale, Freddie will not pursue deficiency, … – Housingwire 
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(CA) Principal relief for stressed homeowners – Kathleen Pender – A limited number of underwater homeowners in California will soon be able to get principal reductions of up to $100,000 apiece on Fannie Mae and Freddie Mac … from programs financed by the U.S. Treasury’s Hardest Hit Fund, including Keep Your Home California. … – SF Chronicle

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(lists) The Unthinkable Fat Tail Risks for 2013 – Robert Lenzner, Forbes

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Survey: Generations X and Y are Responsible, Savvy Homebuyers – by Michele Dawson
– Realty Biz News
————
(looking for yield?) Hedge Funds Drawn to Fannie-Freddie Risk-Sharing Plan: Mortgages – By Jody Shenn and Heather Perlberg – … NMI Holdings Inc., a new mortgage insurer that raised $500 million in April, … American International Group Inc. (AIG) is also interested, while Angelo Gordon & Co. and Pine River Capital Management LP are among fixed- income investors that could jump on the opportunity. … – Bloomberg Businessweek

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(6 facts) Why the Foreclosure Crisis is Getting Worse – By SELENA COWELL – … More than almost 12 million homeowners are currently considered to be underwater, who are still making payments … – US News Money Blog 
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(lots of stats) Multigenerational Households On Rise; Boomerang Students Return Home; What’s the Impact on Housing Demand? – Michael Shedlock – Multigenerational Families – 3.7% in 2000
4.0% in 2010
5.6% in 2012  …
That small 1.6% increase represents a decrease in demand of 1.216 million homes. …  Boomerang Generation OK Living With Mom … – MISH’S Global Economic Trend Analysis

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Colony FNMA Deal, New Zillow Tool, Mortgage Fraud, Freddie Pulls Homes, LIBOR Problems, Expanding QE3, Wells FHA Problems, Chicago, Freddie Short Sale Guidelines, GSE Repurchases, DQs, Seth Klarman, Rentals

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Colony Capital to Acquire 10% Stake in Fannie Housing Pool – By ROBBIE WHELAN – … for $35 million. … Fannie Mae has structured the transactions so that it keeps majority ownership, while giving investors a small minority stake and pays them fees to manage the portfolios of homes. In the Colony transaction, for example, the firm said it will receive 20% of the cash flows generated by the rental properties in management fees. Of the remaining 80%, Colony will receive 10% in equity profit … – Wall Street Journal

and

(Blackstone and Waypoint mentioned too) Colony Spends $1.5 Billion on Homes as Next REIT Boom: Mortgages – By John Gittelsohn, Heather Perlberg and Jason Kelly – Bloomberg Businessweek

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(great example of Zillow’s new pre-foreclosure tool) Exploring the rich foreclosure pipeline of Beverly Hills – 2 Foreclosures versus 86 in the distressed pipeline. New data features allow public to search for distressed properties. – Dr. Housing Bubble

and
(1.5mm homes) Zillow to show homes in foreclosure, before they are listed – Company expects some criticism for putting personal data at consumers’ fingertips – By Mary Ellen Podmolik – Chicago Tribune
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Madoff Has Met His Match: Mortgage Fraud Crime of the Century – John Wasik – … Mortgage fraud took place on so many levels for so many years that it eclipses Madoff by a factor of 100. … – Forbes
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Why is Freddie Mac pulling homes off the market? – Bruce Ross – Skip Murphy asks … I have real buyers, first time buyers, who are being told that they may not be able to purchase a foreclosed Freddie Mac home on which they have made a good offer because it is being considered now to be pulled from the market for a bulk sale to an investor buyer. – Redding.com
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SIGTARP Advises Discontinued Use of LIBOR – BY: KRISTA FRANKS BROCK – … “Continued use of LIBOR for TARP while it is broken, unreliable, and remains potentially subject to manipulation undermines public confidence in financial markets and TARP and could put taxpayers at risk,” SIGTARP stated in its quarterly report to congress, released Thursday … – DS News 
and

(2 graphs) LIBOR converging with CD rates; CD transparency proves useful – Sober Look Blog – It looks increasingly likely that going forward the dollar LIBOR curve will be set based on term deposit rates (discussed here). There simply is not enough term (longer than one week) interbank unsecured lending to determine LIBOR without the risk of potential manipulation (or perception of manipulation). 
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With Bernanke On The Tight Rope, FOMC Will Expand QE3 In December – Agustino Fontevecchia, Forbes – . .. The real action will come in the December meeting, Goldman Sachs’ chief economist Jan Hatzius believes, where he expects QE3 to be expanded to $85 billion a month to make up for the end of Operation Twist, and the possibility of outcome-based rate guidance.  …

and
Bernanke Seen Attacking Jobless Rate With QE Through 2013 – By Joshua Zumbrun, Jeff Kearns and Catarina Saraiva – Bloomberg

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Wells Fargo sends refunds to some FHA mortgage customers – By E. Scott Reckard, Los Angeles Times – The bank says the customers paid unnecessary fees for their loans. If customers cash the checks, they can’t later sue Wells Fargo.
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(bucking national trend) Foreclosure activity jumps 34 percent in Chicago in 3rd quarter – By: Marissa Oberlander – Chicago RE Daily

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RealtyTrac reports foreclosure declines in two-thirds of metro areas – By Jacob Gaffney – Housingwire 
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(preventing fraud?) Freddie Mac: New short-sale guidelines are win-win for everyone – By Kerri Ann Panchuk – .. designed to prevent deceptive transactions that pop up in times of distress when servicers and borrowers are negotiating short sales,  … – Housingwire

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(repurchase update) GSE repurchase requests drag third-quarter mortgage growth – By Christina Mlynski – Housingwire 
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September delinquencies skyrocket 7.72%, foreclosure filings decline 20.4%, shadow inventory grows – The golden age of delinquent mortgage squatting continues. … from the report released by ForeclosureRadar.com that MLS inventory is NOT coming as foreclosure filings dry up. In California, the number of NODs declined 20.4% last month signaling that lenders are in no hurry to process their bad loans and push out the squatters. This slow processing creates a strong incentive for borrowers to strategically default … – OC Housing News
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Seth Klarman Goes Nuts On The Fed In His Latest Investor Letter – Linette Lopez – Business Insider

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MSR Update, GSEs Healthier, FHA DQs Surge, Obama Romney Housing, Ed Demarco, mREITs, Walk-Aways, QE Munis?, REO Update, Echo Boomers, Fraud, Seniors, Flopping Update

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(great info read this) Mortgage Servicing Rights Market Update – Fall 2012 – Michael Karnes – MIAC Analytics

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(lots of details) US FHFA:Cumultive GSE Tsy Draws Range From $191b-$209b End-’15 – (MNI) – The Federal Housing Finance Agency Friday released a report with updated information on the possible ranges of future financial results of Fannie Mae and Freddie Mac under specified scenarios.
and
Fannie Mae and Freddie Mac may repay Treasury faster – By Christina Mlynski – Housingwire 
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Cost of Bailing Out Fannie and Freddie Expected to Fall Sharply – By NICK TIMIRAOS – Fannie Mae and Freddie Mac are expected to begin repaying taxpayers for their bailout faster than initially projected, in part because of an improving housing market. – Wall Street Journal 
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FHA Delinquencies Surge To Record Levels In 3rd Quarter 2012 – by Donna S. Robinson – … As of September 2012, the delinquency rate has surged to a record 17.3%. Compare that to less than 2% for privately insured mortgage company, MGIC. … – Realty Biz News 

refers to report at FHA Watch 
and
Study: FHA Underestimating Mortgage Risks – BY: TORY BARRINGER – … In the report, Caplin and his co-authors conclude that the FHA measuring the wrong data and using flawed results to estimate mortgage risk. Specifically, the study points to the FHA’s measurement of mortgage outcomes where refinances are concerned. … – The M Report

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Stiglitz: Obama, Romney still need to address housing market – Jennifer Ablan and Matthew Goldstein | Reuters – Chicago Tribune
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(Ed Demarco) President Obama Wants To Remove The One Man Who’s Holding Back The US Economy – Rob Wile – Business Insider
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mREIT Payouts Are Unsustainable At Current Levels – by Dividend Kings – Seeking Alpha

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More Americans Walk Away from Their Mortgages – By: Steve Yoder – Fiscal Times – CNBC.com

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(QE Muni?) Getting More Bang for the Fed’s Buck – By JOSEPH A. GRUNDFEST, MARK A. LEMLEY and GEORGE G. TRIANTIS – NY Times 
————
Update: REO by State and Owner Occupied Units by State – by Bill McBride – Calculated Risk 
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Moody’s: Echo boomers to reverse declining homeownership – Sober Look Blog– comments and charts 
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A New Assault On Mortgage Fraud – by Greg Holmes – … The FBI also reported that a whopping 62% of the top 10 mortgage fraud schemes identified in 2010 … involved loan origination schemes.  … – MortgageOrb

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Reverse Mortgage Marketers See 3 Very Different Types of Seniors – by Elizabeth Ecker – Reverse Mortgage Daily

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(flopping update) Latest in mortgage fraud: Flopping – By Les Christie @CNNMoney – … Suspicious short sales, ones flipped the same day, accounted for just under 2% of all short-sale transactions in 2011, according to CoreLogic. Floppers averaged a 34% gain. The average profit: $55,000. Fraudsters can get away with it because banks are swamped with short sale requests ...
————

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Interest Rate Swap Risk if Rates Go Negative – Nom de Plumber’s Thought of the Day

  Nom de Plumber is a Nom de Plume

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(NDP has uncovered a threat to existing securitizations that no one else has seen.  – BC)

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In a standard ISDA interest-rate swap contract, the methodology to calculate the fixed and floating legs clearly permits a negative reference rate (i.e. LIBOR index) for the latter.  Unless both parties in a trade agree beforehand to floor the floating leg at zero (a Zero Interest-Rate Clause), its cashflows can actually reverse directions, if LIBOR turns negative.
 
The party agreeing to pay the fixed-rate leg and receive the floating-rate leg could then be forced to remit outright cash on BOTH legs, belying the bedrock presumption of always getting cash via one direction while giving cash via the other.  Think about how this surprise can affect the following global financial risks:

• liquidity
• basis
• market
• credit
• valuation
• counterparty.
   
  For example, many securitizations with embedded interest-rate swaps are simply not collateralized or funded to afford paying cash on both legs.  Imagine the systemic implications, especially if a swap counterparty fails to receive both cash legs, threatening to deem a securitization in monetary default.  Also, Fannie Mae and Freddie Mac heavily use interest-rate swaps, often to pay the fixed legs and receiving the floating legs.

As coordinated central-bank easing policies, high-quality collateral scarcities, widespread sovereign credit distress, and extreme investor risk aversion all converge, the scenario of already near-zero LIBOR rates dropping just another 0.50% is not outlandishly remote.

Thank you.

Special: Rescap, Ally, Ocwen, Walter, Berkshire Updates

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Ocwen, Walter Investment win bidding war for ResCap mortgage servicing – By Kerri Ann Panchuk – … The purchase price is $3 billion. … Housingwire

and
Ocwen Wins ResCap Loan Servicer as Nationstar Slumps: Mortgages – David McLaughlin, Dakin Campbell and Kathleen M. Howley, ©2012 Bloomberg News – SF Chronicle

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Walter put $540 million toward Ocwen bid for ResCap – Posted by jgaffney – Housingwire

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(comments why Ocwen paid $3B for servicing) Berkshire to Lead Bidding for ResCap’s Loan Portfolio – By David McLaughlin and Dakin Campbell – Bloomberg Businessweek

————
also another auction

Berkshire Wins ResCap Loan Auction With $1.5 Billion Bid – By David McLaughlin, Dakin Campbell and Noah Buhayar – … ResCap’s board approved Berkshire’s offer for the portfolio of about 47,000 whole loans as the “highest and best bid,” according to a statement. The agreement must now be approved by the bankruptcy court. … – Bloomberg 

this too –
Ally Bank Plans to Unload $122B of its Own MSRs – Paul Muolo – Now that Residential Capital Corp. has auctioned off its $374 billion of servicing contracts, it’s Ally Bank’s turn to unload its MSRs. – National Mortgage News
and
(another correspondent exit?)

Ally looks to sell most of its mortgage business – (Reuters) – … Ally said it would continue making a “modest level” of high-quality residential jumbo mortgages for its own portfolio through correspondents and wholesale brokers. …

————

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Debt Collectors, QE3 and Housing, Gary Shilling, mREITs, Housing Regs vs. Fed, Refis, 65% Worse Housing, Values Jump, DQs Spike, Spot A Bargain, Bottoming, Rentals, Re-Underwrite

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Debt Collectors Face a New Watchdog – By Karen Weise – … Starting on Jan. 2, the Consumer Financial Protection Bureau will supervise companies that collect at least $10 million a year in consumer debts. … – Bloomberg Businessweek

————
Purpose of the Fed’s QE3 is to control of every mortgaged property in U.S. – KENNETH SCHORTGEN JR – Examiner.com
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GARY SHILLING: A Housing Recovery? You’ve Got To Be Kidding Me – Henry Blodget – Business Insider
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Mortgage REITs pressured from both sides – Sober Look Blog

————
Housing Rules May Curb Bernanke Efforts to Bolster Economy – By Heather Perlberg, Clea Benson and Jody Shenn – Increasing housing regulation may blunt the impact of Federal Reserve efforts to bolster the economy with low mortgage rates, said David Stevens, president of the Mortgage Bankers Association. – Bloomberg

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KBW: Mortgage refis to remain high into 2013 – Posted by kcurry – Housingwire 

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Report: 65 percent of nation’s housing markets are worse off than four years ago – A report from RealtyTrac showed 65 percent of housing markets are in worse shape than four years ago. – BY MARTHA BRANNIGAN – MIAMIHERALD.COM
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U.S. Home Values Jump the Most Since 2006, Zillow Says – By Prashant Gopal – U.S. home values jumped 1.3 percent in the third quarter, the biggest gain since 2006, in an uneven recovery across the country, Zillow Inc. (Z) said. – Bloomberg

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LPS: Delinquency Rate Suddenly Spikes in September – BY: ESTHER CHO – DS News

and
LPS: Mortgage delinquencies increased sharply in September, Percent in foreclosure process lowest in 2 years – by Bill McBride – Calculated Risk

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How To Spot A Home That Might Sell Below Its Real Estate Value – Brendon Desimone, Zillow – Business Insider

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Barclays: Home Prices Bottomed Out in Q1, Slow Growth Expected – BY: CARRIE BAY – The M Report
————
(buying rentals) Private Equity’s Foreclosure Binge (& Purge) – Michael L.Boyer – Seeking Alpha

————
(re-underwrite all the loans?) Assured trial: Loan file fraud fireworks mask key sampling issue – Alison Frankel’s On the Case – Reuters

————

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Garbage to Gold: EU-Mandated "Liquid" Sovereign Debt: Safe, Regardless of Risk – Nom de Plumber’s Thought of the Day

  Nom de Plumber is a Nom de Plume

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Follow-up to a market observation about new Basel liquidity rules:
http://mortgagenewsclips.com/2012/08/29/basel-global-liquidity-coverage-ratio-lcr-targets-nom-de-plumbers-thought-of-the-day/
 
The EU wants illiquid, default-risky Irish and Spanish sovereign bank-bailout debt to qualify as highly liquid and safe assets, which regulators have mandated that banks buy for Basel Liquidity Coverage Ratio compliance.
 
http://www.bloomberg.com/news/2012-10-24/spanish-irish-bailout-bonds-may-be-protected-in-eu-basel-law.html
 
Only very select persons can seriously confuse two opposing concepts, “Perfectly Liquid” versus “Utterly Risky”.   

These were the same people who once pushed the same banks into “AAA”-rated structured assets, substituting due diligence and active portfolio risk management with laggard NRSRO credit ratings.

To compensate for the prior mistake of blind faith in high credit ratings, they now practice willful blindness to low credit ratings.  

If zigging along a narrow mountainside path does not initially kill you, try zagging also.   Then, you can be assured of demise……  at least once, if not twice.  

Thank you.

MBA Forecast, Local Code Ordinances, Cheap Money, ABS and Basel, Altering GSEs, Rigging LIBOR, Phoenix Investors, S. Florida, Transportation and Housing, GSEs Help Big Guys, Regional Banks, Volcker Rule Costs, 5 Years Later, Ed Demarco

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(purchase vs. refi details) MBA Forecasts $1.3T In Originations Next Year – by MortgageOrb.com – … during 2013, largely driven by a spillover of refinances into the first half of the year. The trade group has also upwardly revised its estimate of originations for 2012 to $1.7 trillion.

and
MBA issues mortgage refinance slowdown warning – By Jacob Gaffney – Housingwire 
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(1100 local code ordinances) Lorne DuFour: The Mortgage Servicing Code Talkers – by Phil Hall – Do you have a figure on the total number of local code ordinances that currently exist? … DuFour: MCS is currently tracking about 1,100 city-related code ordinances. … – MortgageOrb
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Is it Purely a Cheap-Money-Driven Housing Recovery? – Mike Simonsen – Altos Research

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(even more Basel regs?) Asset-Backed Securities May Face Tougher Basel Bank Rules – By Jim Brunsden – Bloomberg

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A Plan to Alter Fannie, Freddie – By NICK TIMIRAOS – (Jim, Milstein 3 point plan) – Wall Street Journal

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Banks accused of defrauding homeowners by rigging Libor – By James O’Toole – … The homeowners’ lawsuit alleges that the banks that set the six-month, U.S.-dollar version of Libor consistently pushed it upward on the first business day of each month between 2000 and 2009. Those are the days on which adjustable-rate mortgages “reset,” … a lawyer for the plaintiffs, said the average borrower with a Libor-based mortgage paid about $300 extra per year … – CNN Money 
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(Commodity vs. community) Phoenix metro becomes virtual investor’s housing market – By Catherine Reagor – The AZ Republic – Buying sprees by billion-dollar hedge funds and real-estate investment firms have investors owning nearly 20 percent, or one out of every five, of the region’s single-family houses and condominiums, according to an Arizona Republic analysis of recent sales data.
————
Shrinking inventory pushing South Florida home prices higher – By Paul Owers, Sun Sentinel
————
The Burden of Transportation Costs on Housing Affordability: Report – BY: ESTHER CHO – … Overall, research results found moderate-income households, or households earning 50 to 100 percent of the median income of their metropolitan area, spent 59 percent of their income on housing and transportation costs in 2010. … – DS News

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Fannie’s Mortgage Limits Help Banks, Confound Fed – Fannie Mae and Ginnie Mae are seeking to protect taxpayers as a flood of new lenders apply to do business with them. That’s also helping big banks’ profit and blunting Federal Reserve efforts to boost housing. – Bloomberg – MoneyNews 
————
(Bank earnings) The Housing Recovery Can’t Save the Regional Banks – TheStreet.com

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Volcker Rule May Cut $10 Billion in Bank Profit, S&P Says – By Christine Harper – … “We currently estimate that the Volcker rule could reduce combined pretax earnings for the eight largest U.S. banks by up to $10 billion annually, up from our initial $4 billion estimate two years ago,” S&P said today in a statement announcing a new report on the issue. … – Bloomberg

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Carmen M Reinhart, Kenneth Rogoff: This Time is Different, Again? The US Five Years After The Onset of Subprime – Five years after the onset of the 2007 subprime financial crisis:
1.  GDP per capita in the US remains below its initial level;
2.  Unemployment, although down from its peak, is still hovering near 8%. – Naked Capitalism

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DeMarco Shrinks Fannie-Freddie Without Help From Congress – By Clea Benson and Emma Fidel  – Bloomberg Businessweek  

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Government Takeover?, Propaganda, Regulatory Cliff, Trouble?, Exiting Rentals, Settlement Money Misuse?, Short Sales, MEW Again?, Rebuttable Presumption, Basel 3, Investor Driven, FNMA Automatic Rrepurchase

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(4 debaters) Home Loans From Washington? – … But should the government consider cutting out the middleman, as it does with student loans, and issue mortgages itself? … – NY Times
————
Project S.H.A.M.E.: Recovered History: How Wall Street-Funded Self Help Propaganda Greased the Real Estate Bubble – By Yasha Levine – Naked Capitalism
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(another cliff) Teetering on Another Cliffhanger – By JIM MCTAGUE – Corporate America faces another challenge: a pending “regulatory cliff.” (EPA has 620 rules pending) – Barrons
————

There’s A Troubling Dynamic Developing In The Market For New Homes – Sam Ro – … Specifically, you’ll see signs that supply is outpacing demand. In the wake of yesterday’s huge housing starts report, Wall Street Examiner’s Lee Adler noted that starts appeared to be outpacing sales. … – Business Insider

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Some Smart Money is Already Exiting the Single Family Rental Landgrab – Yves Smith – Reuters describes how one of the funds that was first to get on the “buy single family homes out of foreclosure and rent them” bandwagon has decided to exit. Ochs Ziff is selling its comparatively small (300 home) Northern California portfolio at a profit – Naked Capitalism 
and
(more on Och-Ziff) New Hedge Fund Landlords Learning The Price Of Hubris – Russ Winter – Seeking Alpha 
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(not seem right) States Divert Nearly Half of Settlement Money Earmarked for Housing – BY: CARRIE BAY – … The nonprofit group found state governments have diverted $988 million, funneling the money instead to their own general funds or toward non-housing ventures. … – DS News

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C.A.R. Survey Finds Short Sales Less Frustrating, but Still Difficult – BY: ESTHER CHO – DS News
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The ‘Mortgage Equity Withdrawal’ Boom…Here We Go Again? – Cullen Roche – Seeking Alpha

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(QM, rebuttable presumption, safe harbor) CFPB Mortgage Rule Said to Give Lenders More Protection -By Carter Dougherty and Clea Benson – Bloomberg

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Basel requirements could shift mortgage servicing rights – By Kerri Ann Panchuk – Housingwire

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(investor not consumer driven) This Is The Housing Bubble Beneath The “Recovery” – Submitted by Tyler Durden – … primary residence ‘buyers’ are down remarkably, while ‘investors’ are up dramatically – now at pre-crisis bubble levels! … – Zero Hedge 
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Fannie Mae takes finger off automatic repurchase trigger – By Paul Jackson – Fannie Mae said it won’t require lenders to automatically repurchase loans with early payment defaults, reversing course on a key provision in the government-sponsored enterprise’s new representation and warranty framework. – Housingwire 
————

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Chris Whalen on Housing, Annaly, FHA Shrinking?, Costs Up, Defaults Down, builder Confidence, BofA Originations, 16X Leverage, Housing Starts, Beige Book, Consumer Comeback, QC, AMCs

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———–

Chris Whalen must reads:

Reality Check: Is the US Housing Market Really Recovering? – Chris Whalen – Institutional Risk Analyst

and
Reality Check: Is the US Housing Market Really Recovering? Part II – Zero Hedge

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How A Mortgage REIT Could Run Out Of Earnings With Current MBS Rates – Tim Plaehn – The news release from Annaly Capital Management (NLY) announcing a $1.5 billion stock repurchase authorization should put mREIT investors on notice that all may not be well in the leveraged MBS business. – Seeking Alpha

and
Annaly Capital Management’s 12.4% Dividend Yield: The Bull And Bear Case – by Qineqt – Seeking Alpha

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Ellie Mae reports FHA-backed mortgage market share shrinking – Posted by kpanchuk – … “During the past six months, FHA loan (closings) have dropped from 28% to 19% while conventional loans have risen from 64% to 72%,” reported Jonathan Corr, chief operating officer for Ellie Mae. He attributes this switch in activity levels to increases in FHA insurance premiums that took place in April as well as HARP 2.0 initiatives. … – Housingwire

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No Wonder People Can’t Keep Up With Rising Transportation And Housing Costs – Mandi Woodruff- … Per the report, for every new dollar consumers add to their annual income, they pay another $1.75 for housing and transportation. … – Business Insider
————
New Lows for First and Second Mortgage Default Rates: S&P/Experian – BY: ESTHER CHO – … the lowest level in its more than 8-year history, according to data from the S&P/Experian Consumer Credit Default Indices. (has details) – DS News
————
Home builder confidence rises to highest level in six years – By Tiffany Hsu, Los Angeles Times – Home builders are buoyed by an increase in serious buyers who have expressed interest in buying new single-family homes. 
————
BofA mortgage originations beat correspondent exit – By Jacob Gaffney – … In its third quarter results, Bank of America funded $21.2 billion in residential home loans and home equity loans … In the year-ago quarter, correspondent originations equaled a comparative $15.9 billion. … – Housingwire

————
New Investment Vehicle Lets Investors Bet On Mortgages With Insane 16x Leverage – Matthew Boesler – Business Insider
————
Bank of America says housing has ‘begun to turn,’ but mortgages still bring banks headaches – (AP) – … reported Wednesday that mortgage originations jumped over a year ago — up 18 percent to $21 billion. But the mortgage unit still lost money as the bank worked through problem mortgages issued before the crisis. … – Washington Post
————
Housing Starts increased sharply to 872 thousand SAAR in September – by Bill McBride – Calculated Risk

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(Beige Book) Housing Is Bright Spot in Update on Economy – By KRISTINA PETERSON and JEFFREY SPARSHOTT – Wall Street Journal

————
This Is The Biggest Economic Story In The World – Joe Weisenthal – (14 charts show comeback for American consumer) – Business Insider

————
(QC) Tyler Sherman On Ensuring Data Quality – by Phil Hall – … Quality control on the front-end is the future for loan originators – if it’s not already. But that doesn’t necessarily mean they have to forgo quantity either. It means that they’ll have to change their business processes to ensure quality performance without lengthening the origination process or producing any mistakes as they increase volume. … – MortgageOrb
————
(keeping regulators happy) How AMCs Help Lenders Expand Into New Markets – by Brian Levine – MortgageOrb
 
————

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