Fannie Mae: Serious Delinquency Rate At Lowest Level Since ’08

delinquent-noticeIn Fannie Mae‘s July 2014 Monthly Summary released on August 29, the GSE reported that July’s serious delinquency rate of 2.0 percent for single-family properties is at its lowest level since October 2008.

The percentage of single-family properties that were in serious delinquency, which is defined as having a mortgage loan where the payment is more than three months overdue or the property is in foreclosure, experienced a month-over-month decline from 2.05 percent from June and a drop from 2.7 percent from July 2013. July’s percentage of 2.0 is way down from Fannie Mae’s serious delinquency rate peak of 5.59 percent, reached in February 2010.

Earlier in the week, GSE Freddie Mac reported a similar decline in serious delinquency for July. Freddie Mac’s serious delinquency rate of 2.02 percent for July 2014 was down from its rate of 2.07 percent in June and from 2.7 percent from a year ago. Freddie Mac’s highest serious delinquency rate of 4.2 percent was also reached in February 2010.

Analysts expect the serious delinquency rate for both GSEs will fall below 2 percent in August. With Fannie Mae’s serious delinquency rate having declined by 0.7 percentage points since July 2013, analysts expect that at its current pace of decline, it will drop to below what is referred to as the “normal” rate of 1 percent by 2016.

Also in the latest report, Fannie Mae reported that it completed 10,812 loan modifications in July 2014 and has completed 78,866 loan modifications year-to-date as of July 31, 2014.

Both Fannie Mae and Freddie Mac have been under conservatorship of the Federal Housing Finance Agency since September 2008.

 

Fannie Mae Changes Waiting Periods for Buyers With Prior Short Sale – U

Fannie Mae made 2 changes that will affect home buyers in San Diego, one positive and the other negative.

  1. Before August 16th, buyers who had a 20% down payment could repurchase again after only 2 years. Buyers now have to wait 4 years instead of 2 years to purchase a home, regardless of the size of their down payment.
  2. Until August 16th, buyers with a prior short sale and a 5% down payment had to wait 7 years to qualify to repurchase a home. Now buyers only have to wait 4 years.

When can I buy again after having a short sale?

Here are the current waiting periods for a buyer who had a prior short sale and wants to use either conventional, FHA or VA financing.

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Conventional. As of August 16th, it is 4 years before a buyer can repurchase again using Conventional financing. So no matter what size the down payment is, either 40%, 20% or 5% down, a buyer with a prior short sale has to wait 4 years now across the board before they can get conventional financing again.

FHA. It is 3 years before a buyer can repurchase again using FHA financing.

*FHA TIP: The FHA has a loophole that not many people know about. If a FHA buyer did not have any late payments before their short sale, they are allowed to qualify again with no waiting period for FHA financing.

New FHA Short Sale Rule for 2014. The FHA introduced a new rule in 2013 that reduces the waiting period that buyers must wait after a bankruptcy, foreclosure or short sale before qualifying for an FHA-backed mortgage. The buyer must have experienced an “economic event” whereby their household income fell by 20% or more for a period of at least six months.

The period had previously been two years following a bankruptcy, and three years following a foreclosure or short sale. The agency has now reduced the waiting period to only ONE YEAR.

For additional information on how to qualify under this new FHA rule, check out this article HERE in the San Diego Union Tribune newspaper.

VA. It is only 2 years before a buyer can repurchase again using VA financing.

When can I buy again after having a foreclosure?

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Here are the current waiting periods for a buyer who had a prior foreclosure and wants to use either conventional, FHA or VA financing.

Conventional. It is 7 years before a buyer can repurchase again using FHA financing.

FHA. It is 3 years before a buyer can repurchase again using FHA financing. Or, see below for how a FHA buyer can qualify again after just 1 year if they experienced an economic event.

VA. It is only 2 years before a buyer can repurchase again using VA financing.

When can I buy again after having a Bankruptcy?

Here are the current waiting periods for a buyer who had a prior bankruptcy and wants to use either conventional, FHA or VA financing.

Mortgage Markets Would Take A Beating Without Fannie Mae, Freddie Mac

Republicans and Democrats confide that “the mortgage market would take a beating” without Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) via TimHoward717.com

We proved truth is stranger than fiction in what was probably one of the more wild and productive weeks we have seen by our blog. Besides our NYSE listing requirement story, there was a host of other key developments.

We have seen some results in our Light of Truth Campaign in respect to the conservative-dominated financial media. Both Bloomberg and Forbes have restrained from taking every opportunity to bash the private shareholders of Fannie and Freddie. They have run numerous articles recently in which they simply report the pertinent news about Fannie Mae and Freddie Mac.I must say I found it very amusing to see Rupert Murdoch’s Fox business devote so much attention to our NYSE listing story.

Now they did not credit our blog for breaking the news but they did one better. Charlie Gasparino was on Fox business TV and towards the end of the video segment Charlie is asked what it would mean for the average American if Fannie Mae and Freddie Mac were eliminated.Charlie reports that he has spoken to a number of congressman including Republicans and Democrats, and they told him “the mortgage market would take a huge beating.” He went on to explain that people don’t realize how big of a foundation Fannie Mae and Freddie Mac play in our housing market. Without Fannie and Freddie the housing market will surely be in peril. It was refreshing to see a conservative media outlet share the truth. Let us hope this small step is the beginning of a strategic shift.

Now on the other end of the spectrum where we would expect this type of support we found just the opposite. In an opinion piece for his local paper Congressman John Carney from Delaware seems to have become completely detached from reality. It appears the freshman rep has chosen to continue to push his misguided bill completely ignoring the facts. The failure of Fannie Mae and Freddie Macs shared risk MBS to gain any traction condemns not only Carneys but all 3 GSE reform bills to the scrap heap. In the Op-ed Rep. Carney says- “In the lead-up to the mortgage crisis in September of 2008, Fannie Mae and Freddie Mac adopted too many of the risky practices of the subprime mortgage industry. As a result, they got themselves into extreme financial difficulty.” I could devote an entire blog correcting this one false statement.

Rep. Carney have you not seen the news regarding the billions of dollars of toxic MBS that the big banks dumped onto Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)? I suggest you take a few minutes and review some of the lawsuits rather than repeating tired old irrelevant lies. John as you continue to push your bill you are putting some of the most vulnerable Americans at risk of being permanently shut out of the U.S. housing market. This would not only be disastrous for them but to our economy as a whole.

In other news, the fact that Fannie Mae is looking selling their headquarters and consolidating has been in the works for years. It is felt that after all the false demonizing that was done to them a fresh start would be a good idea. The Mansion like main headquarters sends a message of vast wealth and privilege, just the reputation they are working hard to change. The timing of the news release though was not a coincidence.

By directing Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) to offer more assistance to lower income borrowers, FHFA director Mel Watt has raised the stakes in the GSE reform debate. Watt has made a career out of championing the rights of the poor and is proving to be an important member in the Coup.He proved yet again that he will not abandon his roots. In order for democrats to make any of the current GSE reform bills palatable to republicans they will essentially have to cast their most vulnerable constituents to the same folks who truly caused the last crisis.

On the legal side of things, we have received some excellent information in the comments section once again. This time in regards to the treasury calling the shots with the FHFA in terms of the conservatorship.For our newer readers, the government has made the outrageous claim that the FHFA was acting independently on behalf of Fannie and Freddie.We all know that the FHFA has acted at the will of the treasury that is why you often hear me describe the Third Amendment Sweep as ”

The government made a deal with the government to sweep all of the profits to the government.” I will be posting on all of this soon as in addition to what was revealed in the comments we have uncovered further proof as well.
I want to let our readers know that we have added Mark Cubans Cyber Dust to our arsenal. This will offer readers yet another avenue to send us anonymous tips. Our username there is timhoward717. We are also looking into forming an organization that will enable us to further spread the truth. I will keep you all updated on this. Keep the Faith!

http://video.foxbusiness.com/v/3751903487001/fannie-mae-job-posting-hints-at-nyse-listing/#sp=show-clips
http://capegazette.villagesoup.com/p/carney-introduces-bill-to-preserve-30-year-mortgage/1218786

fannie Mae FNMA and freddie Mac FMCC

fannie Mae FNMA and freddie Mac FMCC

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Walker & Dunlop Originates Loan for Longhaven Estates Through Freddie Mac's New MHC Offering

BETHESDA, Md., Aug. 27, 2014 /PRNewswire/ – Walker Dunlop, Inc. (WD) announced today that it originated a $10,575,000 loan on Longhaven Estates, a manufactured housing community (MHC) located in Phoenix, Arizona, for Cobblestone Real Estate LLC (Cobblestone) based in Oak Brook, IL and Tricon Capital Group (Tricon), headquartered in Toronto, Canada. This is the first loan done through Freddie Mac’s new manufactured housing loan offering. “Being the first Seller/Servicer to originate a manufactured housing loan for Freddie Mac is a testament to Walker Dunlop’s extensive experience financing manufactured housing communities, and our deep and rapidly growing partnership with Freddie Mac,” commented Walker Dunlop’s Chairman and CEO, Willy Walker.

Longhaven Estates is located in a historically strong manufactured housing market and features a clubhouse, banquet hall, community kitchen, game room, library, fitness center, and three laundry facilities. Tenants also enjoy two outdoor pools, a spa, a shuffleboard center, a picnic/barbeque area, an aviary, and RV/boat storage areas on the property grounds.

Bethesda-based senior vice president, Will Baker led the team that structured the loan and commented, “When Cobblestone and Tricon approached us with this acquisition opportunity, we immediately knew it would be a perfect inaugural deal for Freddie Mac. Due to Freddie Mac’s knowledgeable team and the hard work of our underwriting group, we were able to rate lock and fund the loan in less than 45 days from receiving the signed loan application. The fact that Freddie Mac’s very first MHC loan was underwritten, rate-locked and funded within the same time-frame of a typical multifamily loan displays Freddie Mac’s commitment to this program. We are excited to have another financing option to offer our manufactured housing clients and feel that Freddie Mac is going to be a very significant player in the manufactured housing market.”

“We are excited to team up with Walker Dunlop, Cobblestone and Tricon on the first loan to use our new MHC offering that offers the same certainty of execution as our other loan products,” said Peter Giles, regional managing director of Freddie Mac Multifamily. “With MHC we are expanding our efforts in affordable rental housing.”

About Walker Dunlop
Walker Dunlop (WD), headquartered in Bethesda, MD, is a leading provider of commercial real estate financing solutions nationwide. Our comprehensive suite of financing solutions allows us to originate loans for our own balance sheet, CMBS conduit, and investment partnerships, or for sale to Fannie Mae, Freddie Mac, HUD, life insurance companies, banks and other CMBS providers. Walker Dunlop has more than 400 employees located in 20 offices nationwide. For more information, please visit www.walkerdunlop.com and follow us on Twitter at @Walkerdunlop.

Contracts to buy US homes rise in hopeful sign

WASHINGTON (AP) — More Americans signed contracts to buy homes in July, a sign that buying has improved as mortgage rates have slipped, the number of listings has risen and the rate of price increases has slowed.

The National Association of Realtors said Thursday that its seasonally adjusted pending home sales index rose 3.3 percent to 105.9 last month. Still, the index remains 2.1 percent below its level a year ago.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, called the increase “positive” but stressed that home buying was unlikely to strengthen significantly

“Sales cannot rise much more before they hit the fundamental problem that the pool of would-be buyers is just not big enough,” Shepherdson said.

The pressures that caused home sales to stall last year have started to ease. The average 30-year fixed mortgage rate has dropped to 4.1 percent, a 52-week low. Prices are no longer rising at double-digit annual rates, thereby helping to improve affordability.

Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale.

The number of signed contracts in the Northeast climbed 6.2 percent and is ahead of its pace last year. Pending sales also rose in the South and West, though the index for both regions remains below its levels in July 2013. Contracts in the Midwest fell 0.4 percent last month and also lag behind the pace of a year ago.

Modest wage growth, which has barely run ahead of inflation, has hampered home sales. The Realtors forecast that roughly 5 million existing homes will be sold this year, down from 5.1 million in 2013.

But price growth, which had hurt affordability at the end of last year, has moderated in recent months.

The Standard Poor’s/Case-Shiller 20-city home price index rose 8.1 percent in June from 12 months earlier, according to a report this week. Year-over-year price gains at the start of 2014 had averaged more than 13 percent, according to the Case-Shiller index.

And while more homeowners have started to list their properties for sale, the ability of the real estate market to grow is limited.

That’s largely due to the consequences of the housing bust that triggered the Great Recession at the end of 2007. Nearly 35 percent of homeowners are still “effectively underwater” on their mortgages: They either have less than 20 percent equity in their homes or they couldn’t sell their properties and have enough money left for a down payment on another home, the online real estate firm Zillow said this week.

Fannie Mae: Mortgage Serious Delinquency rate declined to 2.0% in July, Lowest since October 2008

Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in July to 2.00% from 2.05% in June. The serious delinquency rate is down from 2.70% in July 2013, and this is the lowest level since October 2008.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Earlier this week, Freddie Mac reported that the Single-Family serious delinquency rate declined in July to 2.02% from 2.07% in June. Freddie’s rate is down from 2.70% in July 2013, and is at the lowest level since January 2009. Freddie’s serious delinquency rate peaked in February 2010 at 4.20%.

Both Fannie and Freddie’s serious delinquency rates will probably be below 2% in August.

Note: These are mortgage loans that are “three monthly payments or more past due or in foreclosure”.

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

The Fannie Mae serious delinquency rate has fallen 0.70 percentage points over the last year, and at that pace the serious delinquency rate will be under 1% in early 2016.

Note: The “normal” serious delinquency rate is under 1%.

Maybe serious delinquencies will be close to normal in 2016.

Fannie Mae Releases July 2014 Monthly Summary

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Freddie Mac: Mortgage rates stay low heading into holiday

Mortgage rates barely moved due to mixed news on the housing market heading into the holiday weekend, according to Freddie Mac’s Primary Mortgage Market Survey.

The 30-year, fixed-rate mortgage averaged 4.10% for the week ended Aug. 28, unchanged from a week ago, but down from 4.51% last year.

The 15-year, FRM slightly increased to 3.25% from 3.23% a week prior. In 2013, the 15-year, FRM averaged 3.54%.

Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage came in at 2.97%, marginally up from 2.95% a week ago and 3.24% in 2013.

The 1-year Treasury-indexed ARM edged up to 2.39%, compared to 2.38% a week ago. Last year this time, the 1-year ARM came in at 2.64%.

“Mortgage rates were little changed following mixed housing news. Existing home sales rose for the fourth consecutive month to an annualized pace of 5.15 million, the highest of the year. On the other hand, new home sales fell for the third consecutive month to an annualized rate of 412,000 units,” said Frank Nothaft, vice president and chief economist with Freddie Mac.

“Also, the SP/Case-Shiller national home price index confirmed the slowing in national house-price appreciation that has occurred in other metrics, with the seasonally-adjusted national index down 0.1% in June but on a year-over-year basis up a solid 6.2 percent,” he added.

Bankrate’s results were not much different, posting the 30-year, FRM falling to 4.23% from 4.24% a week ago.

The 15-year, FRM increased to 3.38%, up from 3.27% a week prior, while the 5/1 ARM inched up to 3.32%, compared to 3.28% last week.

“The big event of the past week as far as interest rates are concerned was a widely anticipated speech from Fed Chairwoman Janet Yellen. With Yellen not making any unexpected pronouncements, financial markets carried on as usual with the stock market going on to set new record highs and the bond market motoring along,” Bankrate said.  

U.S. housing regulator seeks more support for poor borrowers

(Adds details on housing goals, background)

By Jason Lange

WASHINGTON, Aug 29 (Reuters) – The regulator for U.S. housing finance giants Fannie Mae and Freddie Mac

The Federal Housing Finance Agency released proposed goals for the two state-owned firms for 2015-2017 that would advance agency chief Mel Watt’s aim to widen access to housing credit.

The FHFA said it wants Freddie Mac, which is second only to Fannie Mae in the amount of housing finance it provides, to gradually expand the number of loans it backs for low-income multifamily buildings, such as apartment buildings, to 230,000 in 2017 from its target of 200,000 this year.

Fannie Mae and Freddie Mac have been owned by the U.S. government since taxpayers bailed them out in 2008 during a housing market implosion.

The two firms don’t lend money directly, but rather buy mortgages from lenders and sell them as packaged securities with a government guarantee. They back most new U.S. mortgages, and their purchases are a major driver of credit access.

Under the FHFA proposal, the two firms would continue to make sure low-income families accounted for 23 percent of the firms’ purchases of single-family home mortgages. However, the firms would raise the share of their purchases that back mortgages in low-income areas with large minority populations.

The proposal would also have the firms increase the share of their mortgage refinancing operations that target low-income Americans.

The proposal is part of the shift at the FHFA that began in January when Watt took the helm. Watt, a Democrat who was nominated to head the agency by President Barack Obama, mothballed his predecessor’s plans to scale back limits on the sizes of loans backed by Fannie Mae and Freddie Mac.

Boosting support for low-income borrowers could stir controversy in the U.S. Congress. Many Republican lawmakers think Fannie Mae and Freddie Mac’s policies to support mortgage access for the poor helped inflate the U.S. housing bubble that eventually burst around 2006.

For details on FHFA’s housing finance goals, please see:

http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Proposes-2015-2017-Housing-Goals-for-Fannie-Mae-and-Freddie-Mac.aspx (Reporting by Jason Lange; Editing by Chizu Nomiyama and Jonathan Oatis)

Freddie Mac: Top 5 most improved housing markets

While the housing recovery remains at a snail’s pace, it is still improving, with the markets that exhibit stronger local economies and favorable demographics on an even faster pace of improvement.

Freddie Mac released the June numbers for the Multi-Indicator Market Index, which showed a weak market, improving only .04% from May to June. However, on a year-over-year basis, the U.S. housing market has improved by 7.67%.  

“As we see the economy slowly normalizing we’re starting to see its effects in the housing market as well, albeit very slowly. The good news is the big housing markets, of which some were also the hardest hit, continue to improve,” Freddie Mac Chief Economist Frank Nothaft said.  

“For example, from the same time last year, California is up 12% and every market MiMi tracks in the state is improving. Meanwhile, Florida is up nearly 15% and Illinois is up nearly 13% over the past year,”

So here is Freddie’s list of the top 5 most improved metros that are faring better than the rest of the nation. (All charts are from Freddie Mac and compare the metro to the nation; click for larger image)

5. Miami

Miami has steadily improved over the year and ranks 32nd, increasing two spots from last month and increasing 11 spots from one year ago. A lot of Miami’s improvement is due to the 14.35% increase in the current on mortgage indicator over the past three months.  

4. Chicago

While Chicago stayed in the 44th spot this month, it has increased three spots from one year ago. A 14.89% increase in the metro’s employment indicator over the past three months is a main driver behind the improvement.

3. San Jose

San Jose’s improvement is largely due to the 4.32% jump in its employment indicator over the past three months, moving up two spots to 16 and up 3 spots from one year ago.

2. Riverside

Although the Riverside market is weak, it is improving, moving up two spots from last month to 24. This is up 16 spots from one year ago. Like the other metros, this is due to the metro’s 11.93% increase in the employment indicator over the past three months.  

1. Las Vegas  

Despite being ranked 50 out of the top 50 metros, Las Vegas is 92.8% above its all-time low of 25 reached in November 2010. A lot of the metro’s improvement is due to the 12.54% increase in the employment indicator over the past three months. The city ranks 50th and is unchanged since last year.