The FDIC has finalized a new regulatory capital rule that will give lenders who package and resell mortgages a little breathing room when it comes to accounting for these assets on their books. The federal agency's rule directly addresses FAS 166 and 167, which beginning January 1, move most securitizations - including residential and commercial mortgage-backed securities - back onto the issuer's balance sheet. Banks had pushed for a three-year transition period to phase in the new accounting directives. The FDIC gave them 12 months.
The California housing market is often considered a barometer by which to gauge the rest of the country. If that's the case, then there are sunny days to come for distressed homeowners ... and servicers who've been bullied by both the government and the media for not doing enough. A new report from ForeclosureRadar shows that the number of foreclosure cancellations in California increased 40 percent from October to November. By the government's stats, the number of permanent mods are low, but in California at least, the data shows that even a small number is making a dent.
New York residents now have further protection against foreclosures. On Tuesday, New York Gov. David A. Paterson signed comprehensive foreclosure legislation into law, providing additional critical protections for New York state homeowners, tenants, and neighborhoods in the wake of the ongoing foreclosure crisis.
The Federal Reserve said Wednesday that it will keep its benchmark interest rate near zero, and keep it there for an extended period. The central bank's year-end assessment of the economy was more optimistic than a month ago. Fed officials said economic activity has markedly picked up, deterioration in the labor market is abating, and the housing sector, in particular, has shown signs of improvement over recent months.
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