One of the ironies of the subprime crisis is that the large financial institutions responsible for the exotic loans that precipitated the crisis have increased market share at the expense of independent mortgage banks, with further losses in store if re-regulation comes down too hard on the smaller banks. This is the motivation behind the launch of two advocacy groups on behalf of community mortgage lenders.
The Treasury Department announced this month that it is close to finalizing a widened incentive program to entice lenders and servicers to rely more on short sales as an alternative to foreclosure. Presumably, the Treasury is trying to help facilitate a transaction that will result in less loss to the lender than in the case of a foreclosure, the California-based John Burns Real Estate Consulting said in a recent research note that reacted to the news.
As the clock winds down on the popular $8,000 tax credit for new homebuyers, the White House has remained mum on whether it will be extended, and analysts are at loggerheads over the credit's impact on housing markets.
The Treasury and Federal Reserve pumped a total of $1.2 trillion in investments into the U.S. mortgage market in fiscal 2009, according to a recent government report. Most of the infusions have gone to the troubled government-sponsored mortgage enterprises Fannie Mae and Freddie Mac, and although the amount already spent alone is impressive, the GSEs' regulator says a backstop of another three quarters of a trillion dollars is available if necessary.
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Rob Alley, Realtor
Keller Williams Realty
540-250-3275
roballeyrealtor@gmail.comhttp://www.charlottesvillevarealestate.blogspot.com http://www.robsellscharlottesville.comOh, by the way, I am never too busy to work any of your referrals.
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Licensed to Sell Real Estate in the Commonwealth of Virginia
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