Housing – Details on FHA Refi program launching next month

Another update, courtesy of CR and Diana Olick, HUD says no talks underway for another FTHB tax credit. Good, it is useless:

Diana Olick at CNBC contacted HUD today: Another Home Buyer Tax Credit?

[A] HUD spokesperson … responded: “No news here…there are no discussions underway to revive the credit.”

Here’s a song for anyone suffering through HAMP or HousingHell-

Above the post update- from Sunday:

HENRY: But in May, you said we are beginning to turn the corner (on housing). Can you still say that? Are we still turning the corner when these numbers are so awful?

DONOVAN: Ed, compared to where we were — and I am talking about where we have been for the last 18 months, the housing market, no question was significantly better. The issue now and what we are focused on is the future.

Shaun Donovan, HUD Chief, was telling America Sunday that HAMP worked just fine! I cannot even laugh at that having been in the Eighth Circle of Hell known as the HAMP application process.

So 500,000 people were strung along, paid on time, and were then kicked off the program and out of their houses much worse off financially and emotionally, and that was fine, right Donovan? the important thing was to protect TBTF from taking  hit on inventory flooding markets right ? Man these folks pixx me off. And just how did that work out? WE ARE IN THE EXACT SAME POSITION!

In fact, it is worse. NOW homeowners no longer TRUST these half axxed Govt programs, they KNOW we are being strung along, so now WALK AWAY is in the minds of the middle class, FAIR GAME. You MORONS are BREAKING the PARADIGM!

Continuing the ‘doing everything but the right thing’  meme, HUD is rolling out another iteration of help for homeowners that shovels tax $ to TBTF without actually, you know, HELPING the actual homeowners.

Maybe this will be done as the MS White Paper suggested which I think makes sense. If not, it is a drop in the bucket of overflowing programs that just prop up TBTF and do nothing to address the underlying issue: consumer balance sheets MUST be fixed to get the economy growing again, period.

HousingWire:

According to a mortgagee letter sent out today, the new program would provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and once refinanced and insured by the FHA. The new refinanced loan must have a loan-to-value ratio of no more than 97.75%.

The borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance, and it must bring the borrower’s combined loan-to-value ratio on that first mortgage to no more than 115%. The existing refinanced loan cannot be an FHA-insured one.

Over the last 18 months, the Federal Housing Administration (FHA) has insured 30% of purchases and 20% of refinances in the housing market. During that time, FHA also helped 1.1m homeowners refinance and insured 1.4m mortgages. More than 80% of those were for first-time homebuyers.

Donovan said the refinance program will target the growing number of underwater borrowers, who owe more on their mortgage than their home is worth…

God Bless America. I hope this saves some homes for some families. TBTF does not need anymore of our tax $ they are sitting on over a trillion already.

Update: Oh look, Trez has decided GSE backed mortgages, will NOT be aLLOWED TO PARTICIPATE IN THE PROGRAM! tHE EXACT OPPOSITE OF WHAT needs to happen, sorry damned caplock! I dont have time to fix it, here you go:

KBW said the FHA refi program is unlikely to have “any meaningful impact” on agency MBS, because only 8% of Freddie Mac and 14% of Fannie Mae mortgages have LTVs in excess of 100%. Additionally, the firm noted the Treasury Department has said the government would not consider allowing the GSEs to write-down underwater mortgages.

So IOW it is another BS head fake program to slow inventory. They wont be happy until housing takes the economy down again, it is already happening. The stupid it burns!

August 30, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Meredith Whitney – Housing double dip is here, Middle Class Squeeze to get worse…

This Congress is killing the middle class.

Vodpod videos no longer available.

CNBC:

…Whitney also said financial regulation reform and policy-making that is not friendly to the middle class will hurt growth.

“The populist incumbents argue that we’ve got to get money to redistribute wealth,” she said. “This squeezes the middle class further down the food chain. The unintended consequences of this are maddening.”..

Meanwhile back in DC our HUD secretary is either deluded or spinning like a top:

…”There is no question that today’s housing market is in significantly better shape than anyone predicted 18 months ago,” he told reporters, adding, “Seventeen months after President Obama took office our housing market is stabilizing.”

To support the claim, the HUD chief released a scorecard on the housing market that showed after 30 straight months of decline, home prices have leveled off and are expected to begin adjusting upward.

It also showed that since April 2009, 2.8 million homeowners have received restructured mortgages through Obama’s loan modification programs, and more than 2.5 million families used the First-Time Homebuyer Tax Credit to purchase a home. The credit was a part of the first stimulus bill Obama signed into law shortly after taking office….

BWAAAAHAA!!! ROTFLMAO!!!!! HAMP and the Tax Credit worked he says!! BWAAAAHAAFRAKKINHAAAA!~!!! ZOMG! Ahh man they really slay me.

more about “Meredith Whitney – Housing double dip…“, posted with vodpod

June 21, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Housing: Team Obama plans to ‘poll’ Americans to see what we want to do with Fannie, Freddie? Where is the leadership?! plus Ben Bernanke testifies before JEC…

Update: Ahh HousingWire says they are taking responses to their poll via the Register first. Team Obama’s answer for everything is a meeting, a poll, a panel, typical faculty lounge stuff, lol

The administration said it will first seek public response via the Federal Register listed at regulations.gov. The administration will then hold a series of public forums on housing finance reform.

Update: HousingWire has the details on the ‘poll’ Team Obama plans to take, what a disgrace! Should have and still should just do HOLC, but then Credit Suisse and UBS might take a loss, Gawd Forbid, but it is fine if taxpayers shoulder it, I call shenanigans….

The Obama Administration today puts the public behind the mic on the reform of the US housing finance system, including Fannie Mae and Freddie Mac. A list of questions published today targets the opinions of mortgage market participants, industry groups, academic experts and consumer and community organizations, according to an e-mailed statement from the US Treasury Department.

Here is the Treasury Press Release:, they do not list where to send your input, lol, but here is their contact info:

http://www.ustreas.gov/contacts.shtml

Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

General Information: (202) 622-2000
Fax: (202) 622-6415

7:23: Shaun Donovan (HUD Sectry) says he does NOT believe the stress on housing affordability fueled the crisis and that it was vagueness in the programs that was a problem. Oh boy.

Ed Royce R-CA is disputing this and citing Geithner’s previous testimony that the GSEs used the affordability mandates to buy bad loans…well yeah!

Okay we’re 20 mins in and it’s a smack down, you must watch this hearing!

now Mel Watt D-NC is talking up low income rental housing and the GSE roles in that. This is one of Barney Frank’s pet plans. I have long said they will take these foreclosed homes and convert them to Section 8 after families lose them. Unreal.

7:20 am AZ time: Watch the hearing live now here

ZOMG!! BUY A FRAKKIN CLUE TEAM OBAMA!!!! Lordy, Lordy..I thought these guys were SOOPER GENIUSES who had a plan before he even took office!

Now we have an uncapped FAN FRED FHA debt growing exponentially and they want to take a frakkin poll? Are you frakkin kidding me?!

The hearing with the House Financial Services Cmte has begun and Spencer Baucus R has nailed the issue-

Ranking Member Spencer Bachus gives opening remarks at a Financial Services hearing on the future of housing finance, where the Obama Administration failed to provide a plan for reforming Fannie and Freddie.

If that hearing doesn’t terrify you, see Ben Bernanke live here before the Joint Economic Cmte suddenly acknowledging we have a serious fiscal crisis and need immediate action, funny he didn’t say that before they rammed down the Obamacare bill huh? frakker.

April 14, 2010. Tags: , , , , , , , , , , , , . Politics. 1 comment.

Brace for Impact: Team TOTUS comes out for extension of homebuyer tax credit

Update: Marty Feldstein agrees with MiM on the GDP and double dip  (too bad he endorsed Obama and later let himself be used as a tool like Volcker)

Third-quarter growth “was boosted by the various fiscal stimulus policies,” Harvard University professor Martin Feldstein said in an e-mail. “The danger remains of a serious slowdown after this and a possible double dip” of the economy in 2010, he said.

*Montage by Delta1111111

In an apparent  reversal of  sentiment from that expressed by HUD chief Shaun Donovan in his testimony to Congress just weeks ago when he said it was very expensive, the WH is endorsing the extension of the homebuyer tax credit (details at end of post).

IMO this policy reversal, combined with TOTUS’ failure to laud the GDP data today (he merely commented that he is not satisfied as Americans need work) can mean only one thing.

The internal economic projections of the WH team led by Romer rolling stimulus expectations waaaay back last week, are WAY WAY WORSE than expected. They see the double dip coming and are trying to get in front of it with more stimulus spending in an extended homebuyer tax credit which will do what clunkers did,  cannibalize future sales and leave a wider gap in the future with additional deficits.

So MiM’s forecast for artificial GDP bumps in 3Q and 4Q  ’09 may need to be extended into 1Q 2Q 2010 if they are going to keep throwing money at anything that will give a temporary boost to GDP. Of course the coming tax hikes they are building into the system with the deficit they are growing will CRUSH our economy for years to come but that seems to be beyond their timeline, and thus not their concern.

Clearly the goal is political with everything they do, I guess that comes from Rahm. But that being said, I would expect they are playing dice hoping to keep GDP artificially high going into 2010 Congressional mid terms.

Of course since it is not organic GDP growth jobs are not coming with it so I don’t see the payoff in this policy unless they think Americans will look at stock markets and GDP and feel happy despite being unemployed and foreclosed upon? DOW right now, 3:14 pm up 200. It is high on sugar and our economy is a diabetic on dialysis over here! Today is the anniversary of the 29 collapse btw…there was a HUGE rally after that followed by the utter collapse of the economy as a CNBC guest notes now…HA he said sugar high! I said that! I will add this video when CNBC posts it 🙂

Question is, can they pull off this GDP stimulus spending for that long while simultaneously driving down the dollar without a total collapse of our economy from the CRUSHING deficit? We shouldn’t have to even pose that question. This is like giving the car keys to a raging alcoholic after an open bar at their ex’s wedding.

Doubling down on bad medicine.  I am past girding, I am bracing for impact (sadly no Sully at the wheel, we have Pelosi and Reid)..

____________________

Original Post: In an apparent  reversal of  sentiment from that expressed by HUD chief Shaun Donovan in his testimony to Congress just weeks ago when he said it was very expensive, the WH is endorsing the extension of the homebuyer tax credit:

The nation’s top housing official expressed doubt over the need to extend the $8,000 tax credit for first-time home buyers, and said that the Obama administration was reviewing whether the additional cost of extending the credit was worth any benefit in home sales.

Shaun Donovan, the secretary of the Department of Housing and Urban Development, told a Senate hearing on Tuesday that there was “clear evidence” that the tax credit had benefited the housing market. But he said that the “real issue” in considering an extension was whether an extension was worth the cost to the government in lost tax revenue.

The actual cost of the credit won’t be known “until Americans have filed their tax returns,” he said. “And so, we feel it’s very important within the administration that we gather as much data as we possible can in advance of that before we make a final decision.”

This was just 2 weeks ago folks!

Mr. Donovan said that he understood that the impending expiration of the tax credit meant that the administration needed to make a decision soon so that the market could plan accordingly. Mr. Donovan said he didn’t believe a “catastrophic decline” in home sales would result if the tax credit were allowed to expire on Nov. 30, though he said that an expiration could have some “negative implications” for the market….

And today they send out Geithner to say EXTEND THE TAX CREDIT!

Bloomberg:

The Obama administration endorsed plans to extend an $8,000 tax credit for first-time homebuyers, saying it is helping stabilize the nation’s housing market.

The tax break, enacted earlier this year as part of an economic stimulus package, has “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Treasury Secretary Timothy Geithner said today in a statement. The tax break will expire Nov. 30 unless Congress intervenes.

Senate Democrats have announced plans to extend the credit until April 30 while expanding it to include higher-income Americans and some who already own homes.

Senate Finance Committee Chairman Max Baucus said today the new plan would offer a $6,500 credit for homebuyers who have lived in their prior residence for at least five years. Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break, Baucus said. That’s up from the current $75,000 limit for individuals and $150,000 for couples.

“The success of the American economy is closely tied to the success of the housing market – by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus. “This would enable an even greater number of potential homebuyers to take the credit.” Millions of renters earn more than $75,000, he said.

Here’s a question for good ole Max who initially balked at this spending: What will happen to all those rental property owners whose tenants you claim will buy houses? What about the people who work for those property owners? Unintended consequences. All the government can do is steal one man’s profit and give it to someone else. They do not CREATE anything. Only private capital CREATES JOBS. My God I sound like Larry Kudlow. My dad is smiling in heaven.

Democrats have been pushing to include the provisions in an unemployment benefits bill, which has been held up by a disagreement with Republicans over other proposed amendments….( read the whole thing).

October 29, 2009. Tags: , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 4 comments.

Housing Update & Mortgage Modification Plan and Foreclosure Assistance Resources; HEMAP – targeting Treasury’s housing funds to loans for unemployed homeowners, Barney Frank’s proposed bill…

housinginyourhands

Our previous post on Rep Frank (D-MA) proposal on extending some of the TARP and/or stimulus funds targeted for housing to a program that loans money to unemployed homeonwers to make their mortgage payments here.

A model is emerging in the hearings on the Hill, HEMAP (WSJ):

(…)The proposal to keep out-of-work homeowners in their homes, which was discussed at an oversight panel field hearing last month in Philadelphia, could be based on Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program.

With HEMAP, which was established in 1984, Pennsylvania state officials provide a two- or three-year loan to a jobless homeowner, depending on the individual’s finances and the economic situation. Using that program, homeowners aren’t responsible for repaying the vast majority of the principle or any of the interest on the loan until he or she finds a job.

Specifically, a struggling homeowner participating in the Pennsylvania program, which has depleted resources, requires jobless homeowners pay a token $25 a month until they get another job and their gross income surpasses 35% of their monthly housing costs, including mortgage and utility payments.

In some cases, when the household has some income, the payments would be made partly by the homeowner and partly by the state…

HUD has been lobbied for the legislation/program and they and Treasury sound positive on its implementation, my problem is the Frank legislation wants to use repaid TARP loans and I think they need to end TARP in December and use stimulus money or some of the 50b sitting in the HAMP fund instead:

…According to people familiar with the Obama administration mortgage modification program, officials from the Housing and Urban Development agency have met with Pennsylvania officials responsible for the development of the HEMAP program to discuss whether the state program could be expanded nationally. The presentation was met with a positive response from the HUD officials, they said. A federal official familiar with the mortgage modification program said the meeting took place and “a range of options are being discussed to expand the mortgage modification program nationally.”

Meanwhile, Neiman said he plans to discuss the HEMAP program with key Treasury officials as well as HUD Secretary Shaun Donovan. “I would propose that Treasury consider using TARP funds to fund existing or future state emergency mortgage assistance programs,” Neiman said.

Treasury spokeswoman Meg Reilly said the department continues to study further ways to help unemployed homeowners. …She pointed out that the Treasury’s $50 billion modification program, known as the Home Affordable  Modification Program, or HAMP, is open to the unemployed.

Sadly since Treasury has not agreed to open their NPV test and have the servicers give detailed explanations for denials on HAMP applications (as FDIC did with the IndyMac mods), there is no way to verify that underwriters are in fact properly considering the unemployed. Anecdotally I can say from all interviews I have seen with servicers they say the unemployed cannot be helped, I would not count on them considering these apps until I have seen it.

However, Dodds argues that even though the HAMP program is open to the jobless, it isn’t being used effectively to help them. “It’s real chaos with the mortgage companies trying to get HAMP going,” Dodds said.

He adds that, unlike the HAMP program, a federal loan approach to the jobless could help a large number of people in a short period of time. It also solves the concerns of mortgage servicers who complain they will be sued by mortgage securities investors who argue that these lenders will file lawsuits against them for modifying mortgage payments, he said….

WSJ

WSJ

I can attest to the chaos with HAMP applications and servicers 😦 I will recuse myself from commenting further on this program, cause there but for the grace of God go I…I will say if the banks arent going to modify loans effectively and Team TOTUS cannot see that tax increases, increased deficit spending and regulation will hamper growth and job creation, well in that scenario which seems more and more likely, we may see extended high unemployment for years (in the economic forecasts of PIMCO for one example the ‘new normal pretty much sucks). Anyway if this is the case we may really want to consider programs like this, if nothing else it is a way to directly stop the housing bleeding as a result of the rolling foreclosures tied to unemployment…

but it burns me to think of taxpayers loaning other taxpayers money to pay the banks that all the taxpayers loaned all our money to to begin with because the banks will not modify the damned loans.

Since fannie and freddie are backing most of these loans, that is ALSO the taxpayers funding the losses! so we are loaning ourselves money to pay banks who we loaned money to service loans and transfer funds to FANNIE FREDDIE whom we own and whom we also are loaning money to keep afloat. What the hell kind of outfit is this government running? How many times do we have to loan ourselves money in and out of many government pockets with banks making transfers? Why cant we just do the damned HOLC like HRC proposed in oh what 2007 now, she first raised it in 2005…we could have bought the houses many times over and stopped the bleeding, but then we couldn’t line many pockets eh? the frakkers.

Other Resources:
Making Home Affordable Treasury Program
e.Fannie Mae.com (servicer updates)
HUD- Department of Housing & Urban Devlopment
Fannie Mae mortgage customers call Fannie Mae at 1-800-7FANNIE (1-800-732-6643) or www.fanniemae.com/homeaffordable
Freddie Mac mortgage customers call Freddie Mac at 1-800-FREDDIE (1-800-373-3343) or www.freddiemac.com/avoidforeclosure
VA mortgage customers (thank you for your service) vall VA Financial Counselors at 1-877-827-3702 or www.homeloans.va.gov
FHA –www.fha.gov
Hope Now Alliance (Hank Paulson’s Plan) 1-888-995-4673 or www.hopenow.com

October 20, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, TARP, Unemployment Statistics. 8 comments.

Update: Market Mover Tuesday: Consumer Confidence drops; Case Shiller Index: home prices down 17% y/y; up .04% m/m, first increase in 3 years — CNBC.com

Update: Timmeh tells China we will shrink our budget deficit!! BWAAAAHAA FRAKKIN HAAAAA!!! Suuuuuure we will…

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Geithner, Donovan (HUD) are meeting with the top 25 mortgage servicers in the WH today, let’s hope we get something meaningful from it….if they simply correct the new appraisal code we can get some movement on refis and purchases and mods..

CNBC:

S&P said its index of 10 metropolitan areas rose 0.4 percent in May after a 0.7 percent drop in April, for an 16.8 percent year-over-year drop.

“To put it in perspective, this is the first time we have seen broad increases in home prices in 34 months,” David M. Blitzer, chairman of the index committee at S&P, said in a statement. “This could be an indication that home price declines are finally stabilizing”. The 10 and 20-city indexes reported positive returns for the first time since summer of 2006.

Sales of new homes jumped 11 percent in June, the biggest monthly gain in eight years, the Commerce Department said on Monday, … Existing home sales rose for the third straight month in June, the National Association of Realtors said last week, surpassing forecasts and feeding optimism about the beleaguered housing sector.

Still, caution is warranted as long as the U.S. unemployment rate keeps rising, economists advised. That rate is at its highest in nearly 26 years and is headed to double-digit levels. Signs of stability are far more likely than prospects for near-term recovery in housing, many economists agree. For a rebound, consumer confidence needs to improve, foreclosures need to start falling from their record pace and potential buyers need to have a sense that it won’t be even cheaper to purchase if they keep waiting.

On that note, Consumer Confidence FELL again, see here- The Conference Board, an industry group, said its index of consumer attitudes slid to 46.6 in July from 49.3 in June.

More after the break:

(more…)

July 28, 2009. Tags: , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, TARP, Unemployment Statistics, Wall St. 2 comments.

Market Update: DOW closes up 180…Meredith Whitney on Financials – CNBC.com

Market Closing Update:  Meredith’s call gave us an incredible boost, leading financials higher  DOW up 180 to 8327, S&P up 21 to a nifty 900 and NAS up 35 to 1791…but Meredith only applied the good news to Golden Slacks, this is a relief rally built on air, but hey smoke em if you got em, every up day is a good day…
Vodpod videos no longer available.

MiM considers Whitney and Tilson the 2 people who know WTH they are talking about on the financials and what is coming for the banks and the markets…Golden Slacks will make a bundle, again…and the vaunted stress tests did not consider the level of unemployment we are hitting and the level of toxic mortgage assets still on the books of the banks….

…(thanks in part to FASB changes that removed the impetus to sell the bad debt for what it is worth not what they want it to be worth, we are getting more foreclosures now b/c banks are not willing to take the immediate write downs of a short sale or a modification with principal writedown,

(foreclosures take longer to process and banks are SITTING on TONS of inventory, not taking reasonable offers to avoid taking writedowns!!! foreclosures can take 18 months and banks are playing for time and anecdotally, banks are rejecting FULL PRICE OFFERS from homebuyers and selling at HIGHER PRICES to INVESTORS AGAIN, recreating the entire cycle, utter morons!

TOTUS is doing some more arm twisting in a meeting on July 28th with Geithner anf Donovan of HUD and the top 25 mortgage servicers…let’s see what comes of that, methinks the idiot banks should do some more mods before Barney Frank writes new forced loans for them …)

more about “Meredith Whitney on Financials – CNBC…“, posted with vodpod

July 13, 2009. Tags: , , , , , , , , , , , , , , , , . Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Housing: Chart of the Day: US Homeowners…

Team TOTUS needs to do something about CA NV AZ FL real estate, the homes are at 150% LTV ratios, too far underwater to qualify for the Making Home Affordable 105% LTV refi max plan…

Via Bloomberg:

December 2006-March 2009: Homeowners Who Haven’t Paid Off Mortgages Are “Effectively Broke” (Bloomberg News)

June 5, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Uncategorized, Unemployment Statistics, Wall St. 1 comment.

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