Bank of America says it is considering giving unemployed homeowners nine months of no mortgage payments while they search for a new job. If during the nine-month forbearance period, the borrower is successful in finding employment, BofA would structure a mortgage modification. If unsuccessful, the customer must be willing to relinquish the home through a deed-in-lieu. The proposal must be approved by regulators before it can be implemented.
Although housing is beginning to stabilize, excess inventory and shadow supply may hinder recovery, according to the April 2010 Economic Outlook released Monday by Fannie Mae's economic team. For all of 2010, Fannie Mae projects a 6 percent increase in home sales, down from a 9 percent increase forecast in the March outlook and a 12 percent increase projected in February. The GSE expects to see more moderate declines in home prices this year, but says elevated foreclosures and vacant homes still pose a big risk to home values.
California foreclosure sales increased on both a year-over-year and month-to-month basis in March, according to the latest monthly report from locally-based ForeclosureRadar. The company says the increase will likely come as a surprise to many given all the recent news about foreclosure alternatives like short sales and new loan modifications with principal balance reductions, but as many servicers themselves have stressed, the simple reality is that these programs won't help everyone.
Fraud allegations brought against Goldman Sachs Friday are still reverberating down Wall Street. Capital market analysts at Bernstein Research estimate that the suit could put Goldman Sachs on the hook for up to $700 million. The implications of the charges, though, stretch far beyond the walls of Sachs. With the federal government already gunning for big Wall Street firms as it pieces together financial reform legislation, the news has given Congress and the White House ammunition for tighter regulations.
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