CNBC Call of the Wild: Fannie/Freddie Bailout Debate

Airtime Mon. Dec. 28 2009 – 9:46 AM ET Treasury says it will provide capital on an as-needed basis to Fannie Mae and Freddie Mac over the next three years. Shari Olefson, of Fowler White Boggs, and Spencer Rascoff, of Zillow.com, share their insight.

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December 28, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.

Geithner testifies to TARP Congressional Oversight Panel…

Update: Elizabeth Warren, Chair of the TARP C.O.P., spoke about her frustrations this morning on CSPAN:

10:00 am EST hearing beginning now. THIS will be good considering Geithner wants to extend TARP. Elizabeth Warren will have LOTS to say about the abject failure of the Treasury’s Mortgage Modification Program….

CNBC live stream here

Elizabeth kicks off with TARP Treasury Mortgage mod program has not achieved SCOPE SCALE or PERMANENCE necessary to stabilize housing market.

December 10, 2009. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Wall St. Comments off.

Housing: FINALLY! Some data on the trial mods! Treasury reports more than 27% of homeowners in trial modification are delinquent…

They were forced to answer the inquiry on status of the 600,000+ trial mods finally, and it ain’t good. Not good at all. What IS good is that we are getting some data. Just last week HUD Treasury was claiming no one was late on these payments. On tv in fact, in an interview with Diana Olick which we posted here.

The real shxtstorm is gonna hit us when FANNIE and FHA run out of money. Their book is over 3 TRILLION at FAN alone now and their delinquency rate is EXPLODING. A month after saying they Absolutely Positively did not need a bailout, the FHA is raising it’s premiums, cuz guess what? They need a frakkin bailout…

When will these fools stop trying everything BUT the damned HOLC!!!?!? AARRRGLE! This Admin is so frakking enamored of everything ELSE FDR did why not this? Oh yeah HRC suggested it in 2007 and 2008, thus Obama won’t do it. Frakkers. Their next ingenius plan will be the HEMAP model so taxpayers can LOAN homeowners their mortgage payments. Again padding servicers pockets and not addressing the underlying issue. Via FAN FRED we OWN THE DAMNED HOUSES ALREADY!! Why not buy them outright under HOLC and cut a deal with the homeowners directly with the government. It would be less ongoing intervention and cost less dammit. This is yet ANOTHER example of an actual CRISIS that Team Obama has FAILED to address successfully, while they focus all their attention on health care, housing is falling off a cliff and it WILL drag the entire economy down with it…again.

ABCNews:

More than one-quarter of homeowners receiving help under a U.S. government foreclosure prevention plan are behind on their new mortgage payments, a Treasury Department survey has found. Some 650,000 borrowers are participating in the trial phase of the Obama administration’s Home Affordable Modification Program, a $75 billion taxpayer-financed program launched this year….

…A Treasury Department survey of large mortgage servicers found “over 73 percent of borrowers are current in their trial plan payments,” Assistant Treasury Secretary Herbert Allison told a congressional oversight panel.

That leaves about 27 percent who are delinquent on the payments.

Allison provided written answers to questions raised at an October hearing before the Congressional Oversight Panel, which monitors the government’s foreclosure prevention plan and other financial rescue efforts.

Allison said that “while not all eligible borrowers will convert to permanent modifications, it is too early to estimate a failure rate, diagnose causes and predict future success rates.”

Let me give them a hand. The diagnosis of the underlying cause is UNEMPLOYMENT. The failure rate is TOO LARGE. The future success rate will FALL as UE rises. DO THE DAMNED HOLC! (Read HRC WSJ OPED on the HOLC from September 24, 2008 at link)

Experts say the conversion rate to permanent loans is the key to determining the program’s ultimate success or failure.

The Treasury has not published figures on how many trial loan modifications have been made permanent, but it said it will start doing so this month.

The next monthly report on the program will be released next week, Treasury Department spokeswoman Meg Reilly said.

This week Treasury officials threatened to fine mortgage lenders unless they speed efforts to give hard-pressed homeowners a permanent break on monthly payments….

December 6, 2009. Tags: , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

CNBC: Treasury Mortgage Modification Plan Update

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November 30, 2009. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Housing: Treasury to announce new ‘resources’ for homeowners seeking modifications Monday

Update: WaPo has some scoop on what they are announcing tomorrow, sounds like way too much UE, way too little pressure on the banks and FAN FRED, now it is way too late to stop the coming second leg down, they should have done the damned HOLC:

(…) The Treasury Department already releases monthly reports on how many trial loan modifications lenders have completed. It has shown, for example, that some major lenders such as Bank of America have lagged behind competitors in signing up borrowers to the program. But beginning in December, the report card will also detail how many of the borrowers that lenders enrolled have made enough payments and provided enough documentation to move into a permanent modification, according to a Treasury official, who spoke on the condition of anonymity because the plan had not been publicly announced.

Are they kidding? They think announcing which banks have had the documentation for months and done nothing is going to somehow embarrass them into acting? This is coming from the people we have in charge? Yeah Timmeh, who really knew how to talk tuff with the AIG CDS holders, pullleze!

The administration will also be announcing partnerships with state and local entities to help borrowers move into permanent modifications and more resources for borrowers looking for help, the Treasury official said.

Gee, more slush funds for NACA and their ilk, Hmmmm coinkydink that Justice just released a decision saying HUD had to fund ACORN Housing grants? Hmmmnn? Frakkers.

“It’s true that we are taking additional steps to enhance servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications,” the official said. “Additional details about this effort — which will also include partnerships with a broad array of organizations and new resources for borrowers — will be announced on Monday.

The administration has also been under pressure to prove its program does enough to help unemployed borrowers, a growing part of the foreclosure problem. Borrowers with little or no income have fewer options to save their home, housing advocates say. And government officials are set to announce rules as soon as this week on an expansion of the program, giving lenders incentive money to allow borrowers to sell their homes for less than their outstanding balance, which is known as a short sale….

Now taxpayers are going to PAY OFF the banks to do short sales?? OMG are you frakkin kidding me?

_______

Sounds like Treasury bought a frakkin clue and realizes a steep second dip in housing is coming if they don’t take action. Our EXTENSIVE posts on housing here.

CNBC:

The U.S. Treasury Department wants lenders and companies that process monthly mortgage payments to do more to rework troubled home mortgage loans and will announce new measures Monday aimed at achieving that goal, a department spokeswoman said Saturday.

The New York Times in its Sunday edition quoted Michael Barr, the Treasury Department’s assistant secretary for financial institutions, as expressing dissatisfaction with lenders over the slow pace at which they are amending loan agreements to help borrowers make their monthly payments.”The banks are not doing a good enough job,” the Times quoted Barr saying in a Friday interview. “Some of the firms ought to be embarrassed, and they will be.

Treasury spokeswoman Meg Reilly said Saturday the department was “taking additional steps to enhance (mortgage) servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications.” That could include new resources for borrowers, Reilly said without offering details. The department will announce new measures Monday, Reilly added.

The Treasury Department has said lenders have boosted efforts to modify mortgage payments — essentially by reducing monthly payments so that chances of foreclosure decrease. But there are widespread reports that borrowers continue to have problems negotiating with banks and mortgage brokers to get their payments lowered….

November 29, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Music, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Housing Update: Treasury report on Homeowner Mods from Diana Olick

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Diana Olick’s Realty Check:

“Today the Treasury Department releases its monthly status report on its Home Affordable Modification Program launched last Spring.This is the one that gives the number of trial mods offered and then lists all the servicers and shows what they are and, more importantly, are not doing for troubled borrowers. The report goes through Sept. 30th, but the Administration didn’t want to let an important milestone go by, so they had a short conference call this morning with reporters.

Treasury Secretary Timothy Geithner began: “We are announcing today that half a million families are now participating in loan modifications that are substantially reducing their mortgage costs and therefore increasing the amount of money they get to keep.” That was the figure officials targeted several months ago to get to by the end of October, and here we are only at October 8th, so a little back-slapping going on there. “It means that we’re now reaching almost half or roughly 40% of the people currently eligible for this program,” Geithner added.”

But wait a minute! The program was announced with much brouhaha about 3-4 million eligible homeowners! Are they lowering the bar?

“What’s more important than that milestone, Secretary Geithner aptly points out, is that “the number of people participating in trial modifications is now, for the first time, increasing at a rate faster than new families are becoming eligible for this program, that is, facing the risk of foreclosure.”The statement left me wondering how long that would actually hold true? First of all, we have to be clear that he said those “currently eligible for the program.” Now as one reporter on the call pointed out smartly, if the Treasury Secretary says half a million are taking part, and that’s roughly 40 percent of the people eligible, that would mean about 1.2 million are eligible, and at the start of the program, the administration said 3-4 million would be eligible.

So a “Senior Administration Official” was left to do the math.First of all, that 3-4 million is extrapolated out through next year and the year after, because as we all know the foreclosure crisis isn’t getting much better. But then you have to remove all the folks that are not eligible, which is a long list: First there are those with FHA or VA loans, who are being modified separately, then those above the jumbo-conforming loan limit, then those non-owner-occupied types (investors), then those who ditched the home and are long gone, and then those who already have an “affordable” loan but just choose not to pay it. Take those out and you get to 1.2 million.”

Mkay, what about the second dip in housing as foreclosures rise to unemployment and WTH is going on with the shadow inventory of homes the banks are not foreclosing on (they dont want to take the write downs the frakkers) Diana has the scoop, as usual!:

More after the break:

(more…)

October 8, 2009. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics. 1 comment.

Housing: Making Home Affordable mortgage modification plan poll…

Aloha. Please take a second to click the poll below. A few emails have come in requesting an in-depth drilldown of details and expanded coverage of the Making Home Affordable Modification program and I have spent weeks researching for my own interests but before I dive in to more posts on the subject I want to get an idea of how many people want/need the additional info. Gracias.

September 10, 2009. Tags: , , , , , , , , . Economy, Finance, Foreclosures, Housing. 2 comments.

Housing Update: Median Home Price drops 16.8% y/y….MBA makes 700B downward revision to ’09 originations forecast…

Ouch: National Median Home Price at $173,000 for May, a drop of 16.8% year over year….May existing home sales up 2.4%, same as April….much lower than needed for this inventory, especially since roughly 45% of the sales are foreclosure sales to investors….dollar is extending its losses and markets are down, DOW off 40 now to 8298….10 yr yield 3.63%….Gold 918….Oil down to 67…

So taking a closer look at the incredible revisions by MBA yesterday, it appears as though the Making Home Affordable Program has been a failure to date. Not the EPIC FAIL of Hank Paulson’s original plan, but a FAIL nonetheless….

MBA dropped the hammer on the outlook yesterday:

…The Mortgage Bankers Association cut its forecast of home-mortgage lending this year by 27% amid deflating hopes for a boom in refinancing. The trade group said Monday that it now expects $2.034 trillion of originations of mortgages for one- to four-family homes in 2009, down from a forecast of $2.780 trillion in March, when falling interest rates spurred expectations for huge volumes of refinancing….

Here are the numbers, of the millions of homeowners facing foreclosure, a grand total of 13,000 loans have been modified/refi’d. Yep.

WSJ:

…Meanwhile, the MBA said, the volume of refinancing under the Obama administration’s Home Affordable Refinance Program so far has been “very low.” This program is designed to help borrowers whose loans are backed by government-owned investors Fannie Mae and Freddie Mac, the biggest providers of funding for U.S. mortgages.

“While the number of loans completed under this program is likely to increase, it is difficult to craft a scenario under which origination volumes would come anywhere close to reaching the numbers originally envisioned for the program, particularly under our higher rate environment,” the trade group said.

So how low is it? Let’s check in on the housing beat with Diana Olick of CNBC who has the real scoop:

…Today the Mortgage Bankers Association put out a revision in its 2009 originations forecast. A big revision. A $700 billion revision. “$84 billion of the drop is due to lower purchase originations and the rest is due to lower rate/term refinances and very low volumes in the Fannie Mae and Freddie Mac Home Affordable Refinance Program (HARP).”

…The MBA had raised its forecast by over $800 billion in March following the drop in interest rates associated with the Fed’s announcement on the Treasury bond and mortgage-backed securities purchases programs as well as the implementation of the HARP….

……The refi’s dropped off for two reasons, one being the interest rate rise, and the second being the poor results on the HARP….While generally accepted estimates were that around 1.5 to 2 million borrowers might avail themselves of this program, with many more potentially eligible, to date only about 13,000 loans have been completed, notes the MBA’s chief economist, Jay Brinkmann.

Did anyone else catch Larry Kudlow get curt and rather harsh with Diana on The Call last week? Diana makes it clear in this blog report her position and reporting on the housing market is based on the facts, not the ‘Goldilocks wannabe green shoots’ scenario we all know Larry wants to find…..the harsh  reality of our housing market, and it is pretty damned harsh here in AZ lemme tell ya:

A lot of folks out there contend that I am overly bearish on the beat I cover. Some go so far as to call me “miserable,” while others claim I choose to see the glass half empty. I am and do neither. I’m not a bear; I’m a realist. It’s your right to have an opinion, but it’s not my job. My job is to gather for you and funnel to you the facts: The numbers, the trends, the industry forecasts and the experts’ analyses. I have no agenda and frankly gain nothing from being either a bull or a bear. If anything, I’d be better off personally as a housing bull. CNBC doesn’t allow me to own stock, but I can own a house, and I do. If you think housing has bottomed, that’s your opinion, but that’s just what it is: Opinion.

June 23, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Music. Comments off.

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