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One Lending Standard for All Companies
Orange County Register (CA) (03/26/09) Padilla, Mathew
The Mortgage Bankers Association recently dispatched a letter to House and Senate banking committee leaders calling for creation of the Federal Mortgage Regulatory Agency. The new watchdog would impose lending and servicing rules for the entire mortgage industry and oversee all mortgage bankers and brokers, regardless of charter or license. Its board would include state and federal regulators, and it would be able to update uniform lending standards as warranted without having to seek congressional approval.
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New-Home Sales Rise 4.7 Percent
Wall Street Journal (03/26/09) P. A2; Evans, Kelly
The Commerce Department reports a 4.7-percent jump in new-home sales in February to an annual pace of 337,000, marking the first gain in seven months despite posting a year-over-year decline. Sales were driven by bargains on foreclosures and other distressed properties in the South and West, along with low mortgage rates and an $8,000 federal tax credit for purchases made before Dec. 1. The report shows a year-over-year drop in the new-home median price to $200,900 from $251,000 and a decrease in inventory to a seven-year low of 330,000, leading experts to believe that builders are making progress in chipping away at the glut of finished units.
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Fed's Lockhart: Better Data Does Not Signal Recovery
Reuters (03/26/09) Willard, Anna; Vidaillet, Tamora
The U.S. government reported that sales of new homes increased in February, as did new orders for durable goods, but Federal Reserve Bank of Atlanta President Dennis Lockhart warned that a month of positive data is not enough to declare an economic recovery. Lockhart said it was too early to determine whether the outlook has improved since the Fed's last policy meeting. He added that the U.S. recession is likely to last for at least a few more months but noted that the Fed's $300 billion debt purchase program should help lower long-term interest rates.
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Freddie Portfolio Grows at 35% Pace
Washington Post (03/26/09) P. D3
Freddie Mac's mortgage portfolio rose by 35 percent, or $23.1 billion, in February to a new high of $822 billion, according to the company in its monthly volume summary.
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Commercial Property Faces Crisis
Wall Street Journal (03/26/09) P. A1; Wei, Lingling
Wall Street data shows that commercial property loans are going bad at an alarming rate, threatening to cause billions of dollars in additional losses to banks. Since September, the delinquency rate on nearly $700 billion in securitized loans backed by commercial real estate has more than doubled to 1.8 percent. Foresight Analytics projects that America's banking sector could suffer as much as $250 billion in commercial property losses in this downturn, with more than 700 banks at risk of failure because of their exposure to the sector.
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FBI: Fraud Probes Strain Crime Fight
Detroit News (03/26/09)
Speaking before Congress on March 25, FBI Director Robert Mueller said the agency is working on 2,000-plus mortgage fraud cases and more than 560 corporate fraud cases. He noted that the agency's ability to combat other crime has been hampered by the high volume of financial fraud investigations.
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Real Estate: Buyers Get Job-Loss Protection
South Florida Sun-Sentinel (FL) (03/26/09) Owers, Paul
A number of property firms, including Keller Williams Realty in South Florida, are offering to cover mortgage payments for borrowers for six months in the event of a job loss. Keller Williams' program is for FHA, VA and USDA loans; and it could eventually be expanded to include conventional financing. The South Florida pilot program could be offered to buyers across the country in the coming months.
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Wells Fargo, B of A Ratings Cut
Washington Post (03/26/09) P. D2
The nation's two largest mortgage lenders were downgraded this week by Moody's Investors Service on concern that they will need additional government assistance. The senior-debt rating for Bank of America was cut to A2 from A1, while Wells Fargo saw its senior-debt rating reduced to A1 from Aa3. To date, BofA has accepted $163 billion worth of capital and guarantees from the Treasury. Wells Fargo received a $25 billion infusion in October and sold $12.6 billion in stock to the public a month later.
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