like ZZ Top said~IT’S BAD, IT’S NATIONWIDE (& QE isnt doing JACK about it)
…Eleven of the markets hit their lowest point since the housing bust, in 2006 and 2007: Atlanta, Charlotte, N.C., Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Ore., Seattle and Tampa, Fla.
The damage from the real estate bubble now spreads well beyond the Sun Belt, where new homes cropped up at a frantic pace during the mid-2000s. In many places, prices are expected to keep falling for at least the next six months….
Housing: MERS gets nailed – Judge rules MERS cannot transfer mortgage rights, “MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.”
Update 3: Case Caption for those inclined:
In re: FERREL L. AGARD, Debtor
Case No. 810-77338-reg
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK
Update 1: Read this piece at NakedCapitalism for more background on the horror of MERS. It was a work around for the TooBigToFail as they didnt have time for pesky County Recorder’s offices and processes and fees in their rush to securitize the shxt out of the entire country. Rife for fraud and property theft is the system the TBTF and MERS have created. It must be ended or no property is safe IMO.
FINALLY!!! Look for sudden legislation to appear tucked in a bill..per Judge’s ruling:
“It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”
watch the Congress Critters carefully…especially those RE lovers like Isaakson..
…“MERS’s theory that it can act as a ‘common agent’ for undisclosed principals is not supported by the law,” Grossman wrote in a Feb. 10 opinion. “MERS did not have authority, as ‘nominee’ or agent, to assign the mortgage absent a showing that it was given specific written directions by its principal.”…
…“MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage-recording process,” Grossman wrote. “The court does not accept the argument that because MERS may be involved with 50 percent of all residential mortgages in the country, that is reason enough for this court to turn a blind eye to the fact that this process does not comply with the law.”…
We covered the HEMAP plan and Barney Frank’s push for it. It was added to the FinReg bill. It is absolutely the case that unemployment is driving housing defaults now and that the HAMP program does not help the unemployed, despite UE lasting for close to 99 weeks in most cases, the debt levels of those in default are just too high.
Barney Frank and Team Obama’s larger housing vision seems to be centred on a transition to Section 8 status for a majority of the foreclosures FAN FRED FHA are taking onto their books.
It began with FAN Deed4Lease program under which homeowners rent their homes back from Uncle Sam. And the Section 8 roll out is already underway and by the time we get 6 months into ’11 when Timmeh claims we will have an outline for their plan for FAN FRED FHA, it will be a fait accompli.
The problem I have with all these plans is the g-d lenders who brought this tumbling down skate away with the taxpayers forced to eat the FAN FRED FHA losses which, don’t kid yourselves will be $1trillion easily IMO.
The $400B dollar scribble- It was DEMOCRATS who went apoplectic yesterday when the big banks called them wailing over GOP Rep Jeb Hensarling having penciled in FAN FRED as ‘financial institutions’ under the FinReg draft on banks paying to wind down big financials that fail. They FREAKED OUT at the THOUGHT of having to pay for the GIANT SMOKING CRATER THEY CREATED. And the Democrats ran to help them avoid that fate, leaving it ALL on US, the taxpayers.
It seems to be the end of the residential housing market as we jave known it. Frank is constantly stressing his affordable rental housing schtick nowadays.
If this helps some families get past the transition, it seems overall a small price to pay at $1B, the $85b in HAMP seems to have done absolutely nothing, worse than nothing the extend and pretend has been a PAINFULLY slow tearing off of the band aid, and we are only halfway through the process.But families be cautious, don’t put yourselves Back on the Chain Gang before next year, housing prices are still cratering and when Uncle Sam is done I don’t know what value the homes we are holding may be worth.
Who the hell knows. And IMAGINE what this will do to RENTAL HOUSING PRICES. Landlords will be competing with Uncle Sam setting ‘fair rental rates’ GOOD GAWD!
And that assumes we get some spending restraint and just restraint in general from the Congress and a new POTUS in ’10 and ’12. Let’s hope there is a housing market left to rehabilitate when we get there.
The shxtty part is again they added a tax to pay for this newest $1b program. Had they done HOLC but noooooo. Credit Suisse couldn’t have that! frakkers.
Why the hell not use the $$$ sitting in the HAMP TARP fund? That is how the funding was originally proposed. Frank tried also to use repaid TARP funds for this. Now it is funded by a bank tax IOW passed on to us in fees, shxt! Good Gawd Almighty what don’t they understand about no money left in the till..
Unemployed homeowners will be able to tap $1 billion in federal bridge loans to pay their mortgages, under a deal worked out by congressional negotiators in financial-overhaul legislation.Under the program, people who cannot make their mortgage payments because they are ill or out of work would get a stopgap loan from the government.
House members fought for $3 billion in such loans, but ultimately settled for $1 billion as negotiations ground on into Friday morning. Both chambers of Congress must now approve the deal worked out by the negotiators.
Joblessness has eclipsed risky mortgages as the biggest driver of U.S. foreclosures. Meanwhile, the rules of the Obama administration’s foreclosure-prevention effort make it difficult for the unemployed to get loan modifications under the program….
And Shaun Donovan at HUD was touting the home buyer tax credit as a success and saying housing STABLIZED! AS IF!What flavor would you like with your double-dip? WSJ has it. Hang on Sloopy!
More on the ‘wonderful’ homebuyer tax credit, it was given to inmates serving LIFE sentences, good grief.
Nearly 1,300 prison inmates wrongly received more than $9 million in tax credits for homebuyers despite being locked up when they claimed they bought a home, a government investigator reported Wednesday
The investigator said 241 of the inmates were serving life sentences….
The big number is tomorrow, the drop in new home sales, post dopey homebuyer tax credit which pulled 2 million purchases forward, that’s 2 million less first time homebuyers to move on new housing in the months ahead…
…The National Association of Realtors said sales fell 2.2 percent month over month to an annual rate of 5.66 million units from an upwardly revised 5.79 million-unit pace in April.
Analysts polled by Reuters expected May sales to rise 5.5 percent to a 6.12 million-unit pace from the previously reported 5.77 million units in April….
Update: More good news, Fannie and Freddie are delisting from the NYSE. they will trade OTC now, and now they will be even more opaque were that possible.
But keep tilting at windmills Don Obama Quixote…God bless the gulf.
NOT unexpected for those of us who saw the ‘tax credit’ pulling demand forward. Government credits did not ‘create’ more demand they just pulled it forward …since we have a shadow inventory that could last for 2 years in this economy it is just as well they don’t build more houses, but we need something for the construction jobs…how about a WALL ON THE BORDER???
U.S. home construction plunged in May as builders remain cautious about sales prospects absent government support programs for the housing sector.
Housing starts dropped 10% the month after the government ended its tax-credit program for home buyers, to a seasonally adjusted annual rate of 593,000. Permits for new construction also declined, the Commerce Department said Wednesday. Single-family housing starts slid by 17.2% to an annual rate of 468,000, the lowest level in a year.
…Economists surveyed by Dow Jones Newswires had expected overall housing starts to drop 5.2% to a level of 637,000.
DOUBLED the ‘expectations’. BUY A CLUE economists.
Fannie’s turn: loses *another* $13b in Q1 asks for *another* $8.5b from Treasury, has now lost $136.8B and taken $75b in aid…
Update: here is that quote, it is courtesy of Calculated Risk:
…Greg Morcroft at MarketWatch reports:
Fannie sees no profits for the “indefinite future” … financial sustainability uncertain….
They aren’t even TRYING to make it look good anymore…one highlight in the WSJ said they do not see any chance of being profitable in the near term, pfft, Should’ve done the damn HOLC.
…the mortgage-finance company operating under federal conservatorship, said it will seek $8.4 billion in aid from the U.S. Treasury Department after reporting its 11th-straight quarterly loss.
The company said it had an $11.5 billion first-quarter loss in a filing today with the Securities and Exchange Commission. Washington-based Fannie Mae had posted $136.8 billion in losses over the previous 10 quarters and taken more than $75 billion in U.S. aid since April 2009….
Our previous posts on FAN FRED HAMP and the EPIC FAILURE of Team Obama to address housing here. HOLC dammit. The housing double dip is right on track.
Freddie Mac reported a $6.7bn Q110 net loss, widened from $6.5bn in the previous quarter.
The Federal Housing Finance Agency (FHFA), acting as Freddie’s conservator, requested $10.6bn in aid from the Treasury Department to cover the company’s $10.5bn net worth deficit. At the end of 2009, the company had a $4.4bn net worth…