Your Distressed Property Solution

www.Dennis-Sells-Homes.com

CAUTION: PROTECT YOURSELF

Mon, 11 Apr 2011 21:38:34 GMT

CAUTION: PROTECT YOURSELF AGAINST MORTGAGE RELIEF SCAMS

Did you know that the FBI reported 71% more mortgage fraud investigations in 2009 than in 2008, and that these investigations increased throughout 2010?

If you or someone you know is seeking help with an unaffordable mortgage, don't be a victim! I have prepared a special report about how to identify offers that are only meant to scam you. You can download it here:

WHO CAN YOU TRUST?

The Federal Trade Commission (FTC) has issued regulations safeguarding those seeking mortgage counseling and relief. I am fully compliant with FTC regulations (see disclosures*), and am someone you can trust to put your best interests first.

Are you struggling with any of the following?

* An unaffordable mortgage
* A home worth less than the mortgage payoff amount
* A monthly shortfall (more expenses than income)
* Insolvency
* Financial hardship

I can help show you options to avoid foreclosure and how to put you back on track to financial stability. For more information and a special report, visit my website at:

www.Dennis-Sells-Homes.com

I've also enclosed some business cards. Please think of me when you find those who need help in finding foreclosure alternative solutions. Your referrals would be my highest priority!

With gratitude,

Dennis Reibold
Dennis@DennisReibold.com
916-955-1513

Federal Trade Commission Disclosures

1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services.

2. The above brokerage is not associated with the government, and our service is not approved by the government, and our service is not approved by the government or your lender.

3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Other trusted sites:

Press Release - One in Seven Mortgages Not Being Paid

Tue, 15 Feb 2011 21:46:45 GMT

FOR IMMEDIATE RELEASE For more information, please contact:

DENNIS E REIBOLD

916-955-1513

DennisSellsHomes@DennisReibold.com

With More Than One in Seven Mortgages Not Being Paid, Local Agent Offers Free Resources to Struggling Homeowners

In response to community needs, new website educates struggling homeowners on options to foreclosure.

Roseville, CA – February 15,2011 – Local real estate agent and Certified Distressed Property Expert^®, Dennis Reibold of Century 21 Noel David Realty, responded to new mortgage delinquency numbers by creating a new information website for Sacramento and Placer County area homeowners facing financial hardships. ~www.Denni-Sells-Homes.com~ contains vital facts about the options available to distressed homeowners.

“With more than 14 percent of mortgages in default status, there is a significant number of homeowners who are facing foreclosure,” Reibold said. “When faced with the possibility of foreclosure, I’ve seen too many homeowners make poor choices, even walking away from their homes without calling their lender or a real estate agent. By offering free information on more beneficial options, I know I can help our community’s homeowners.”

The Mortgage Bankers Association’s First-Quarter 2010 National Delinquency Survey announced that more than 14 percent of mortgage loans are not current on payments. More specifically, 10 percent of prime loans and more than 40 percent of subprime loans are delinquent.

“Whatever their best option is, the most important thing homeowners can do is educate themselves before making a decision,” Reibold said.

~ www.Denni-Sells-Homes.com ~ acts as a central location for information on the issues and options for struggling homeowners, putting all the necessary information in one, easy-to-use location. The information and materials located on the site are regularly updated to reflect market changes, trends, new lender requirements and industry updates.

Alex Charfen, co-founder and CEO of the Distressed Property Institute, said that more than seven out of 10 homeowners in foreclosure proceed without any visible assistance.

“Agents with the Certified Distressed Property Expert^® designation are helping distressed homeowners understand that there may be options available to them,” he said. “ Dennis Reibold has been trained to help homeowners avoid foreclosure, and this online education resource is a valuable public service.”

The CDPE designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market.

For more information about the CDPE Designation, visit www.cdpe.com.

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What Going to Happen to Fannie, Freddie

Fri, 11 Feb 2011 12:43:49 GMT

Treasury eyes plan for smaller-scale Fannie, Freddie

Treasury puts forth menu of options, calls for hikes in guarantee fees

By Ronald D. Orol, MarketWatch

Last Update: 9:04 AM ET 2/11/11

WASHINGTON (MarketWatch) — A large portion of Fannie Mae and Freddie Mac should be wound down over time while the fees that the troubled mortgage refinance giants charge for guaranteeing mortgages sold to investors are increased to slowly ease the private sector back into the housing market, the Treasury Department said Friday.

The long-awaited report on the future of companies, key cogs in the nation’s housing-finance system, included both these more immediate moves as well as three options for reforming the two mega-firms.

The options preserve the ability of the Obama administration to have a behind-the-scenes dialog with congressional Republicans over the future of the nation’s still-fragile housing-finance system.

One long-term approach, backed by key GOP lawmakers, would create a virtually privatized system significantly reducing the government’s role in the mortgage market by only allowing the Federal Housing Administration and two other agencies to guarantee some mortgages for low- and moderate-income borrowers that meet creditworthiness criteria.

Another long-term approach would create a similar targeted guarantee program but also set up a catastrophic-risk insurance fund that could be put into effect in the event of massive crises.

The third would set up a similar guarantee approach, but the government would also offer reinsurance for securities of a targeted range of mortgages.

These long-term solutions would require major legislative changes — something that take years to realize — as lawmakers contemplate the their impact on a housing market that’s expected to yield another record year of foreclosures.

The Dodd-Frank act set a Jan. 31 deadline for the Treasury to release the report, which the agency missed by a couple weeks.

Changed landscape

Fannie (FNMA) and Freddie (FMCC) have long been crucial to the housing market, guaranteeing or owning roughly 50% of the residential mortgage market. Including Federal Housing Administration loans, the government has been responsible for about 95% of mortgage origination between 2008 and 2010, according to a Bank of America Corp. analysis.

However, in the short term, the Treasury’s seeking to have Fannie and Freddie increase the price they charge for guarantees to private-market levels. In its report, the Treasury said the goal would be to help “level the playing field” and drive investors to once again buy private-label residential mortgage-backed securities.

The Treasury also recommended that Congress should not pass new legislation continuing a provision that allows Fannie and Freddie to buy mortgages with values as high as $729,750, the level to which it was raised in 2008. Without action by Congress, the limit on loans that Fannie and Freddie can buy will drop back to a maximum of $625,500 effective Sept. 30.

Republicans support going to the lower limit, which would make it more expensive for some higher-end borrowers to obtain access to credit at the same time as it limits potential costs to taxpayers.

The Treasury’s report also recommends a gradual increase in down payments required for Fannie and Freddie to guarantee a mortgage to as high as 10% over time.

The two mortgage giants were originally set up by Congress to expand home-ownership by having Fannie and Freddie buy up mortgages from banks and other direct lenders so they would have the capital to lend more. They package them into bonds and mortgage-backed securities, some of which they keep in their portfolio and others that they sell to investors.

Fannie and Freddie charge investors a “guarantee fee” in return for backing the mortgage bonds they sell. However, the two companies became saddled with toxic mortgages and were nationalized at the peak of the financial crisis in 2008 to avoid losses and stem the credit contagion.

As of October, Fannie and Freddie have cost taxpayers roughly $151 billion in taxpayer funds, used to cover their losses, with more losses expected on the horizon.

Both Republicans and Democrats have been hesitant to move forward with legislation to reform the housing companies because of the impact any changes — or even the announcement of changes — could have on the economy recovery and the housing market.

Republicans at odds with Geithner

With the GOP back in control of the House of Representatives, lawmakers have begun to hold hearings on the subject but have yet to introduce legislation. Republicans have expressed support for some recommendations in the report, but not others.

For example, regarding the $729,750 cap, no Democratic effort to reinstate the higher purchase limit would pass because Republicans in House are not going to support such an extension, said Jaret Seiberg, analyst at MF Global Inc.

Bank of America analyst Ralph Axel contends that mortgage rates could increase — particularly for larger mortgages — if guarantee fees are hiked and the size of loans that Fannie and Freddie can buy drop to lower levels. These so-called high credit borrowers “will experience continued access to financing and get the jumbo mortgages at the higher rate, but there will be a segment of population that is borderline and once the loan limits decline, there will be some people unable to get financing,” he said.

Rep. Jeb Hensarling (R., Texas) and other Republicans want to take further steps limiting what mortgages Fannie and Freddie can buy.

Hensarling is expected shortly to again introduce a bill, “The GSE Bailout Elimination and Taxpayer Protection Act.” which would eventually wind down both Fannie and Freddie. It includes a provision that would, during the winding-down transition period, only allow Fannie and Freddie to make mortgages purchases that are at or below their local area median home price.

Hensarling’s bill, which went nowhere when the Democrats ran the House last year, would also require minimum down payments of 5% for all new loans purchased or guaranteed by Fannie and Freddie in the first year after its enactmentl. That would go up to 7.5% in the second year and 10% in the third year.

Some Republicans are also backing the Treasury’s recommendation that Fannie and Freddie should raise the fees it charges for guaranteeing credit risk. The Obama administration contends that a hike in fees charged by Fannie and Freddie would make it more expensive to buy government-backed mortgage securities and, as a result, drive investors to buy private-label residential mortgage-backed securities.

The approach is something top Republicans are backing in theory as well, including Rep. Randy Neugebauer (R., Texas), the new chairman of the oversight and investigations subcommittee of the House Financial Services Committee.

On another front, Republicans are also generally opposed to the Treasury’s recommendation that Congress consider creating a catastrophic-risk insurance fund. Rep. Scott Garrett (R., N.J.) indicated that he was opposed to it, arguing that the government’s track record in pricing risk has been “extremely poor.

“The Deposit Insurance Fund, the National Flood Insurance Program, and the Pension Benefit Guaranty Corp. are three government insurance programs that historically have terrible records of properly pricing for risk,” Garrett said.

Ronald D. Orol is a MarketWatch reporter, based in Washington.

Dennis Reibold

916-955-1513

Top 3 Tips

Mon, 27 Dec 2010 10:24:24 GMT

Top 3 Tips to Avoid Foreclosure if You’re Struggling to Pay Mortgage

As you’re heading into the holiday season, you may have found some extra time to research how you can avoid foreclosure. I applaud your taking the first and most important step in improving your situation—seeking help!

Here are the top three things you should focus on when exploring foreclosure alternatives:

1. Create a Budget: When seeking an arrangement with your lender you must prove the monthly income shortfall that keeps you from making your mortgage payments. Create an itemized list detailing your monthly income and expenses. Pull together bank statements and check stubs for the last three months.

2. Know your Options: It’s important to know you have several options to consider so you take advantage of the solution that is best for your specific situation. Find out more about your options on my website here: www.Dennis-Sells-Homes.com

3. Contact an Experienced Agent: A licensed agent who has undergone specialized training is vital to successfully navigating foreclosure avoidance. I’m extensively trained to provide you with the information you’ll need to execute a strategy tailored to your situation.

Most major lenders have granted a two-week foreclosure holiday from December 20-31. The sooner you call me, the more options you’ll have to prevent foreclosure and get back on track for a prosperous 2011!

Dennis Reibold

916-955-1513

Making Sense of Mortgage Modification

Mon, 29 Nov 2010 11:05:52 GMT

Making Sense of Mortgage Modification

There has been much in the news in the past few weeks about mortgage modifications for homeowners who are having trouble making their house payments. Many are having difficulty qualifying for modifications, and so far the Home Affordable Modification Program (HAMP) has had disappointing results.

The Washington Post recently reported that “troubled homeowners who receive housing counseling are 60% more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves.” I can help homeowners facilitate the process of loan modification and discuss other alternatives to foreclosure if a modification is not an option.

As a CDPE, I feel it’s my duty to help anyone I can during these hard times. If you would like to know more about mortgage modifications and whether or not you might qualify, please feel free to contact me.

Dennis Reibold

916-955-1513

3 New Anti-Foreclosure Strategies

Mon, 01 Nov 2010 14:50:51 GMT

3 New Anti-Foreclosure Strategies

Here are three programs that are considered promising replacements for the government’s Home Affordable Modification Program (HAMP), which has failed to stop foreclosures.

· Fannie Mae and Freddie Mac would be encouraged to refinance loans for some 30 million borrowers with high-interest rate mortgages. The new mortgages would be folded into a new round of mortgage-backed securities issued by the government-sponsored finance firms.

· The right-to-rent plan would offer delinquent borrowers an option of renting their foreclosed homes at a market rate for five years. At that point, owners turned renters would have another chance to buy their homes at market value. It’s a compromise. Borrowers lose their homes, but lenders have to accept lower payments.

· Mortgage cramdowns give a bankruptcy judge the right to consider all of a borrower’s debts and create a solution that would force all interested parties, including holders of mortgage debt, to compromise.

Source: Reuters News, Alina Selyukh (10/29/2010)

If you or someone you know needs help because they own more to the bank than what the home is worth? There is help visit www.Dennis-Sells-Homes.com

Dennis Reibold

916-955-1513

State AGs Start Meeting With Banks

Sat, 30 Oct 2010 13:27:57 GMT

State AGs Start Meeting With Banks

The 50-state attorney general task force that is investigating lender foreclosure practices has begun meeting with banks and loans servicers, but working around the state-specific laws makes a global settlement difficult.

“Our ability to act on behalf of consumers depends in part on the intricacies of state law,” said Janet Mills, Maine’s attorney general. “It is important for the AGs to share what they find out with each other, to monitor what is happening in other states, including the responses from financial entities,”

A member of the task force’s executive committee, Washington Attorney General Rob McKenna, said, “Loan modifications may be a significant part of the solution. If you keep homes out of foreclosure, they don’t depress real estate values.”

Source: Bloomberg, Margaret Cronin Fisk (10/28/2010)

Dennis Reibold

916-955-1513

Distressed Sales Gain Greater Market Share

Sat, 10 Apr 2010 02:05:20 GMT

Distressed Sales Gain Greater Market Share

First American CoreLogic reports that distressed properties accounted for 29 percent of all U.S. home sales in January. Also, real estate-owned sales rose to 22 percent of homes sales from 19 percent in December, and short sales rose to 8 percent from 7 percent.

Average sale prices in January were $161,600 for distressed homes, compared to the average nondistressed sale price of $247,700, $141,900 for REO properties, and $215,300 for short sales.

Source: American Banker (04/09/10)

Dennis Reibold

916-955-1513

BofA to start reducing mortgage principal

Sat, 10 Apr 2010 00:03:53 GMT

BofA to start reducing mortgage principal

The bank, the largest mortgage servicer in the country, said Wednesday it will forgive up to 30 percent of some customers' total mortgage balances. The homeowners must have missed at least two months of mortgage payments and owe at least 20 percent more than their home is currently worth.

The plan is the newest provision of an agreement the Charlotte, N.C.-based bank reached 18 months ago with state attorneys general to settle charges over high-risk loans made by Countrywide Financial Corp.

The loans were made before Bank of America acquired the mortgage lender in mid-2008. The bank has since stopped making those loans.

Although the motivation for Bank of America's announcement was to resolve legal problems, it has the potential of putting pressure on other banks to also forgive principal on loans that are in danger of failing. Bank of America is the nation's largest bank, and it's among the first to take a systematic approach to reducing mortgage principal when home values drop well below the amount owed.

The Treasury Department, which already has a mortgage modification program, is developing similar plans for principal reductions at other mortgage servicers, according to industry officials speaking on condition of anonymity because they were not authorized to discuss the conversations. They said an announcement could come in the next few months.

"They're talking about doing something and talking seriously about it," Julia Gordon, senior policy counsel at the Center for Responsible Lending, a consumer group, said of Treasury officials. "I think the concern now is fairness and making sure that the public understands the importance of principal reductions toward stabilizing the housing market and helping everybody."

Bank of America estimates that about 45,000 customers will qualify for its plan. The offer will cut total reduced principal by about $3 billion.

Some banks said they have already reduced principal on some mortgages. Wells Fargo & Co. said Wednesday it has modified more than 52,000 adjustable-rate mortgages that it inherited through its acquisition of Wachovia Corp. in late 2008. As of the fourth quarter, the bank also had reduced the principal on those mortgages by more than $2.6 billion.

Citigroup Inc. would not say whether it planned a similar program, but it did issue a statement that said in part, "Citi does reduce principal for borrowers on a case-by-case basis after other options to address affordability are exhausted."

A spokeswoman from JPMorgan Chase & Co. declined to comment on whether it planned a similar program.

Bank of America's announcement came as another report pointed to continuing problems in the housing market. The government said new home sales dropped to a record low last month, a day after the National Association of Realtors said sales previously occupied homes also fell in February, the third straight monthly decline.

Millions of homes have gone into foreclosure since the housing market collapsed in late 2007. The loans affected by Bank of America's announcement include certain subprime and option adjustable rate mortgages. Option ARMs allow borrowers to start with minimal monthly payments that actually increase the loan's balance.

The borrowers who can take advantage of the Bank of America program must also qualify for the Obama administration's $75 billion mortgage loan modification program.

The program announced Wednesday could lower the bank's earnings, which have already been hurt by consumers' continuing defaults on mortgage and credit card loans. Bank of America was among the hardest hit by the credit crisis and recession.

It's not clear how big a financial hit Bank of America will take by reducing mortgages. But the move will likely be less costly than having homeowners walk out on their mortgages or opt to do a short sale, banking analyst Bert Ely said. A short sale happens when a seller owes more than the house is worth, and the lender is willing to accept less than the mortgage balance.

"This is about loss minimization," Ely said. "There's going to be losses (for Bank of America). The question is what's the easiest way out."

The plan does carry risks. For starters, borrowers who aren't 60 days behind on their mortgages may stop making payments so they can qualify. The more borrowers who try to qualify, the bigger the potential loss for Bank of America. The bank will also have to absorb the costs of renegotiating the loans.

Even so, "the move helps create the best prospect of avoiding a further downward home price spiral, which would result in even deeper losses" for the bank, said Howard Glaser, a mortgage industry consultant, in an e-mail.

Investors appeared pleased with the news, and sent Bank of America shares up 44 cents, or 2.6 percent, to close Wednesday at $17.57.

According to new plan, which begins in May, Bank of America will first offer to set aside a portion of the principal balance, interest free. That principal can be forgiven over five years, if homeowners don't miss any payments. The maximum decrease in principal will be 30 percent.

The forgiveness allows a homeowner to bring a mortgage balance back down to 100 percent of the home's value, the bank said.

Glaser said that if the Obama administration launches a similar effort for the entire industry, that would be a "major shift in loan modification efforts."

Lenders including Bank of America have been criticized for not helping enough borrowers to complete the Obama administration's $75 billion mortgage modification program, which is widely viewed as a disappointment. Only 170,000 homeowners have completed the program so far.

As of last month, Bank of America had completed modifications for about 22,000 homeowners, or about 8 percent of those signed up. That compares with about 12 percent for Wells Fargo and 11 percent for both JPMorgan Chase and Citigroup.

The mortgage modification program does not address the problems of borrowers who are considered underwater, or owing more than their homes are worth.

The Treasury Department estimates that 1.5 million to 2 million homeowners will complete the program by the end of 2012, about half of the original goal. A report issued late Tuesday by Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, says numerous changes to government guidelines "caused confusion and delay" and said the government did not do enough to advertise the program.

___

AP Real Estate Writer Alan Zibel and AP Business Writer Daniel Wagner in Washington, D.C., and AP Business Writer Stevenson Jacobs in New York contributed to this report.

Dennis Reibold

916-955-1513

Foreclosure Inventory Is Increasing

Tue, 30 Mar 2010 16:43:06 GMT

Foreclosure Inventory Is Increasing

The inventory of foreclosed homes that banks are sitting on is rising, threatening to push home prices down further in some parts of the country.

Analysts at Barclays Capital estimated that banks and mortgage investors held about 645,800 foreclosed homes in January, up 4.6 percent from December. That is down significantly from the peak of 845,000 in November 2008.

States with the largest number of foreclosures are Florida, Arizona, Nevada, California, and Michigan.

Source: The Wall Street Journal, James R. Hagerty (03/19/2010)

Dennis Reibold

916-955-1513

Wells Fargo Will Modify Second Mortgages

Fri, 19 Mar 2010 12:14:31 GMT

Wells Fargo Will Modify Second Mortgages

Wells Fargo & Co. has joined Bank of America Corp. as the first two banks to sign onto the federal government’s program to modify second mortgages.

Under the government’s plan, borrowers who have been extended loan modifications on first mortgages can now apply to reduce their second mortgages.

Analysts say banks have been reluctant to adopt this part of the government’s loan modification program because they continue to hold most second mortgages and forgiving them will be costly.

Source: The Associated Press (03/17/2010)

Dennis Reibold

916-955-1513

Fannie Mae: Recovery is Moving Forward

Fri, 19 Mar 2010 12:06:44 GMT

Fannie Mae: Recovery is Moving Forward

The decline in home sales in February was a disappointment to the housing industry, but Fannie Mae’s analysts say it is temporary and a sustainable turnaround is likely by the end of the year.

Fannie Mae Chief Economist Doug Duncan points to evidence that a recovery is on its way, including an increase in consumer spending, an improving service sector, and the likelihood that employers will begin hiring soon.

"More favorable financial conditions overall keep us optimistic that we are moving forward with the recovery, albeit at a lower trajectory than previously forecast," Duncan said in a statement.

Source: Fannie Mae (03/17/2010)

Dennis Reibold

916-955-1513

Government to Push Lenders to Do Short Sales

Wed, 10 Mar 2010 22:46:06 GMT

Government to Push Lenders to Do Short Sales

San Francisco Chronicle, Robert Selna

March 10, 2010

The Treasury Department spent 2009 pushing banks to modify mortgage payments so that distressed homeowners would not be displaced. Next month, the government will start a program encouraging owners and banks to sell some of those same homes.

The program, scheduled to begin April 5, focuses on transactions known as short sales, in which a lender allows a homeowner to sell a house for less than, or short of, what is owed on the mortgage.

But even before the program has begun, it's receiving mixed reviews from real estate agents, some of whom say it will give owners incentive to sell, and others who believe banks don't have the capacity to pursue more of the labor-intensive sales.

Typically, owners seek short sales to lessen the credit damage that comes with a foreclosure. Banks have resisted the approach because it not only requires added administrative work to analyze details such as the owner's finances and property values, but also is a guaranteed loss.

Meanwhile, more than 5 million U.S. households are behind on their mortgages, and a government-sponsored program in which banks reduce monthly payments has, by all accounts, foundered.

Few modifications

Only about 116,000 homeowners have had their monthly burden permanently lowered by the Obama administration's Making Home Affordable Modification Program. About another million are enrolled in trial modification plans.

Many mortgage borrowers are underwater, meaning they owe more than the property is worth. In the Bay Area, about 27 percent of mortgage holders are underwater. In California, that figure is 35 percent.

Government payments are central to the new strategy. If lenders agree to certain guidelines and a short sale is completed, $1,500 goes to homeowners who move out, $1,000 to the servicing bank and another $1,000 to any second lien holders.

The program imposes new demands on banks. They must fully release homeowners from future liability for their first mortgage. They also must work with those homeowners who despite help from the government loan modification program are delinquent on their mortgages.

Mixed forecasts

Bay Area real estate agents offer mixed forecasts for the program.

East Bay Realtor David Kerr said he believes that many owners who failed in the loan-modification program would seek the short-sale alternative. And, the $1,500 means a lot to buyers who are low on funds, he said.

"The homeowner has no money and is already in distress and just barely making it," Kerr said. "Lenders don't allow the owners to walk away with anything; now at least they'll have something."

Real estate agent Kerri Naslund, who also works in the East Bay, said she is skeptical that the Treasury program will make a difference. Most lenders are understaffed as it is, she said.

"The banks don't have the manpower to follow up with all of this in a correct manner," Naslund said.

"Now the government is requiring new standards and deadlines, and it's just going to make their job harder."

Some banks have tried in recent months to expedite short sales. In some instances, they have decided in advance the price they will accept. In others, they have worked with their delinquent borrowers.

More short sales

Jason Menke, a spokesman for Wells Fargo home mortgages, said the bank has hired more than 8,000 people since the start of 2009 to handle short sales, loan modifications and other issues associated with distressed properties.

Menke said it is too early to tell whether the new government proposal will have an impact. He said that Wells Fargo already has seen an increased interest in short sales during the past year.

An analysis of Multiple Listing Service records by Emeryville's ZipRealty shows that short sales are on the rise.

Through March of last year, about 600 short sales of existing homes were completed in the nine-county Bay Area each month, which was about 9 percent of transactions. That figure rose to 15 percent by September, and has averaged about 17 percent since.

Dennis Reibold

916-955-1513

Head of FDIC Supports Loan Write-Downs

Fri, 05 Mar 2010 21:47:48 GMT

Head of FDIC Supports Loan Write-Downs

The possibility of solving the underwater mortgage problem by writing down principal has been deemed politically impossible by the Obama administration, but some government officials see write-downs as the best long-term solution.

One of the most outspoken supporters of write-downs is Federal Deposit Insurance Chair Sheila Bair. This week, she called underwater mortgages a continuing problem and said the FDIC is “actively looking” at ways to encourage principal write-downs in the deals it does to facilitate acquisitions of failed banks.

Overall, Bair was positive about housing finance. "After three long and difficult years for housing and mortgage finance, I think we're seeing some progress in stabilizing our housing markets," she said.

Source: Reuters News, Karey Wutkowski (03/04/2010)

Dennis Reibold

916-955-1513

FDIC Considers Principal Reduction Program

Fri, 26 Feb 2010 12:20:25 GMT

FDIC Considers Principal Reduction Program

The Federal Deposit Insurance Corp. is experimenting with a plan to help underwater home owners by reducing principal as long as they continue to pay their mortgages for an as-yet-undetermined period of time.

"We're thinking about it in terms of earned principal forgiveness. If you stay current on your mortgage, you would earn a principal reduction. It would only be for loans significantly underwater," says FDIC Chair Sheila C. Bair.

The initiative would be very limited in scope and would be launched later this year.

Lender Wells Fargo also has been carefully experimenting with principal reductions on a limited basis. "I do not believe that you can do a programmatic-wide or country-wide principal forgiveness [program]. You end up with many problems if you try to do this across the board," says Mike Heid, co-president of Wells Fargo Home Mortgage.

Source: Washington Post, Renae Merle (02/26/2010)

Dennis Reibold

916-955-1513

Short Sales Rise in Popularity, Survey Finds

Tue, 23 Feb 2010 16:01:42 GMT

Short Sales Rise in Popularity, Survey Finds

Short sales accounted for 15.9 percent of home purchases in January, according to a survey by Campbell Surveys for Inside Mortgage Finance.

Before January, the peak in short sales had been 15.1 percent in October. They declined substantially in November, probably because of the number of first-time home buyers hoping to use the tax-credit that required them to close by December 1.

While short sales take a long time to close, they typically sell for only 91 percent of listing price, making them a popular option for bargain-hunting buyers who aren’t in a hurry, the survey said.

Source: Inman News (02/23/2010)

Dennis Reibold

916-955-1513

Foreclosure Prevention Has Aided 116,000

Thu, 18 Feb 2010 16:06:25 GMT

Foreclosure Prevention Has Aided 116,000

The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.

About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners--12 percent--had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.

Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.

For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners' pre-tax income.

Nearly 60,500 people have been denied permanent modifications.

Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010)

Dennis Reibold

916-955-1513

Shadow Inventory Unlikely to Hurt Market

Wed, 17 Feb 2010 10:11:03 GMT

Shadow Inventory Unlikely to Hurt Market

Nearly 5 million houses and condos, of which the mortgages are delinquent, will go through foreclosure over the next few years, a new study by John Burns Real Estate Consulting Inc. concludes.

This represents more than half of the 7.7 million households now behind on their mortgage payments. The situation is worst in Arizona, California, Florida, and Nevada. Burns calculates that there is an inventory equivalent to 27 months of sales in Orlando, 24 months in Miami, and 18 months in Las Vegas.

Consulting firm CEO John Burns says there is strong investor demand for these properties, so as long as employment continues to recover and interest rates remain moderate, these sales won’t have much impact on overall prices.

Source: The Wall Street Journal, James R. Hagerty (02/16/2010)

Dennis Reibold

916-955-1513

Freddie Mac CEO: Housing Is Near Bottom

Wed, 27 Jan 2010 13:53:14 GMT

Freddie Mac CEO: Housing Is Near Bottom

The inventory of foreclosed houses still hampers the recovery of the housing sector, but overall, the U.S. housing market appears to be at or near bottom, Freddie Mac CEO Charles Haldeman told the Detroit Economic Club on Tuesday.

He predicted that the 30-year fixed mortgage rate would remain between 5 percent and 6 percent through 2010.

"The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive," Haldeman said.

Source: Reuters News, Soyoung Kim (01/26/2010)

Dennis Reibold

916-955-1513

Mortgage Modification Plan Falls Short

Tue, 19 Jan 2010 18:32:20 GMT

Mortgage Modification Plan Falls Short

Only 65,000 people – about 7 percent of those who applied – have successfully navigated President Obama’s plan to help borrowers who are in trouble, the Treasury Department said last week.

About 49,000, or 5 percent, have dropped out of the program because they don’t qualify. Most of the remainder are still waiting.

Bank of America, the largest company in the program, has completed fewer than 2 percent of the modifications for 200,000 borrowers who signed up. The most successful lenders include Ocwen Financial Corp. and Carrington Mortgage Services, which have modified loans for 40 percent of their enrolled borrowers.

Source: Associated Press, Alan Zibel (01/15/2010)

Dennis Reibold

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