Housing Update 2: ‘Shadow Inventory Dwarfs Loan Mods’; Treasury releases Making Home Affordable status report & NAR figures show median home prices dropped 11.2% y/y
Update: A-HA!! I knew it!! J’accuse Treasury!!!!! Wonder if they are having Fannie/ Freddie HOLD out on those pre-sale foreclosures to avoid asking for ANOTHER 50B right now, dammit! Who knows when the housing market will stabilize? The shadow inventory knows Muuhuuuhaaaaa. Diana Olick has it:
(…) But even more distressing was a report I received today from Lender Processing Services, which is a huge mortgage data aggregate.
Foreclosure inventories continued their upward climb. The nation’s September 2009 foreclosure rate stood at 3.12 percent – a month-over-month increase of 2.6 percent and a year-over-year increase of 88.9 percent. Among individual states, Florida posted the most troubling results with 10.4 percent of loans in foreclosure, and more than 22 percent of loans reported as non-current.
LPS’ October Mortgage Monitor also cites large “shadow” foreclosure and REO inventories. The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline. Nearly one-third of foreclosures remain in pre-sale status after 12 months – twice as many as the year prior. The six-month average deterioration ratio has risen the past two months to 300 percent, showing that for every loan that improves in status, three more deteriorate further…
LARGE grain of salt on these HAMP numbers. PDF from Treasury of the November ‘Servicer Performance Report’ for Making Home Affordable here.
Continues after the break:
November 10, 2009. Tags: Diana Olick, Economy, Foreclosures, HAMP, Housing, Housing foreclosure program, MHA, Mo Mods, Motley Crue, shadow inventory, Treasury, Treasury Making Home Affordable November report, Treasury MHA November report, Unemployment. Economy, Finance, Foreclosures, Glam Metal, Hair Bands, Horror, Obama Administration, Politics, Unemployment Statistics, Wall St. 11 comments.