Although the Obama administration continues to search for a solution for homeowners facing foreclosure, the reality of the situation is only about 4 percent of these at-risk borrowers receive long-term mortgage help. With foreclosures on the rise, homeowners are looking for a viable solution to their problems. According to the National Association of Realtors, almost 500,000 transactions in 2009 were short sales, representing almost 10 percent of all home sales.
The Mortgage Bankers Association (MBA) expects home loan originations to fall by 40 percent this year, to their lowest level in a decade, as interest rates go higher and the unemployment picture worsens. The trade group released its mortgage financing forecast Tuesday, and if its calculations are correct, we've got a long and bumpy road ahead before the housing market truly recovers.
Mortgage companies with significant claim rates against the Federal Housing Administration (FHA) mortgage insurance program were the focus of an initiative announced Tuesday by Kenneth M. Donohue, HUD inspector general, and David H. Stevens, FHA commissioner. According to officials, HUD office of inspector general (OIG) subpoenas were served to the corporate offices of 15 mortgage companies, demanding documents and data related to failed loans which resulted in claims paid out by the FHA mortgage insurance fund.
As a result of the Federal Reserve's unprecedented interventions to prop up the ailing economy, the U.S. central bank posted a $46.1 billion profit for 2009, with a large portion of the green coming from its investments in mortgage-backed securities (MBS). It's the biggest annual return the Fed has recorded in its 95-year history.
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