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Fannie Mae and Freddie Mac modified nearly 24,000 loans during the fourth quarter of 2008, an increase of 76% over the third quarter. The modifications, along with the suspension of foreclosures that began November 26, reduced the number of foreclosures by nearly 27% during the quarter, according to data released by James B. Lockhart, Director of the Federal Housing Finance Agency (FHFA), as part of the Foreclosure Prevention Report for the fourth quarter for 2008. 

The FHFA report details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes. It analyzes data provided by the companies with adjustments to account for the impact of the foreclosure suspension. The suspension, originally set to end Jan. 9, 2009, was later extended to Jan. 31, 2009.

RealtyTrac®, one of the leading online marketplaces for foreclosure properties, released its U.S. Foreclosure Market Report^TM for Q1 2009, which shows that foreclosure filings - default notices, auction sale notices and bank repossessions - were reported on 803,489 properties in the first quarter, a 9% increase from the previous quarter and an increase of nearly 24% from Q1 2008. One in every 159 U.S. housing units received a foreclosure filing during the quarter.

Foreclosure filings were reported on 341,180 properties in March, a 17% increase from the previous month and a 46% increase from March 2008. The March and Q1 2009 totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005 despite a decrease in bank repossessions (REOs), which were down 13% from the fourth quarter of 2008 and 3% from February totals.

“In the month of March we saw a record level of foreclosure activity - the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record. Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of RealtyTrac. “It’s also likely that the drop in REO activity can be attributed to these processing delays, rather than to any of the foreclosure prevention programs currently in place. It’s very likely that we’ll see the number of REOs increase again now that most of the moratoria have been lifted.”

“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”

Nevada, Arizona, California post top state foreclosure rates in first quarter
Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing - more than five times the national average. Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19% from the previous quarter and an increase of nearly 111% from Q1 2008. Bank repossessions in Nevada were down 3% from the previous quarter, but defaults increased 27% and auction sale notices increased 35%.

Arizona posted the nation’s second highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.

Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.

Five states account for nearly 60% of nation’s first quarter total
California, Florida, Arizona, Nevada and Illinois accounted for nearly 60% of the nation’s foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.

With 230,915 properties receiving foreclosure filings during the quarter, California accounted for nearly 29%% of the nation’s total. The state’s foreclosure activity increased 35% from the previous quarter and 36% from Q1 2008, and the first-quarter total was state’s highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.

Despite a 12% decrease from the previous quarter, Florida’s first quarter total was still second highest in the nation. Foreclosure filings were reported on 119,220 Florida properties, a 36% increase from the first quarter of 2008. The state posted the nation’s fourth highest state foreclosure rate during the quarter, with one in every 73 housing units receiving a foreclosure filing.

Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the third highest total among the states, and 41,296 Nevada properties received a foreclosure filing in the first quarter of 2009, the fourth highest total among the states.

Illinois posted the nation’s fifth highest total, with 38,966 properties receiving a foreclosure filing during the first quarter - a 32% increase from the previous quarter and a 68% increase from the first quarter of 2008. With one in every 135 housing units receiving a foreclosure filing, the state’s foreclosure rate also ranked fifth highest among the states.

Rounding out the states with the 10 highest foreclosure activity totals in Q1 2009 were Michigan, Ohio, Georgia, Texas and Virginia.

For more information, visit www.realtytrac.com    

Article from http://rismedia.com

The Obama administration’s $8,000 tax credit for first-time homebuyers is encouraging them to make a purchase this year, according to recent survey results from ZipRealty.com. The survey of active ZipRealty website users reveals that 62% of prospective first-time homebuyers are now more likely to buy in 2009. However, government plans provide little incentive for other buyers or for sellers, and confidence in the housing market overall remained largely unchanged since before the election, according to survey results. 

“This survey indicates that the originally proposed $15,000 tax credit may have had greater impact on the economy overall,” said ZipRealty Chief Home Hunter Leslie Tyler.

Further survey results include:

-While 62% of first-time buyers were motivated by the $8,000 tax credit, 10% of first-time buyer respondents said they didn’t know enough about the program for it to influence them.

-Of the first-time buyers not motivated by the $8,000 tax credit, 29% said they believe the credit is not enough money to make a difference; 28% didn’t think they would qualify because of income or other restrictions; and 24% think home prices will decline more. The remainder cited mortgage and employment concerns.

-More than half of survey respondents (51% of potential buyers and 59% of potential sellers) indicated that the government’s housing stimulus plans have no effect on their home buying or selling plans this year. Forty-one percent of buyers and 31% of sellers said the government’s actions made them more likely to buy or sell this year.

Economic Impact
-Twenty percent of all respondents said they did not know enough about the administration’s plans to form an opinion on the overall economic impact, while another 20% said the plans would not have much economic impact.

-Most respondents said they believed that struggling homeowners would benefit the most from the administration’s plan at 39%, versus just 15% of respondents who said buyers would benefit the most.

Market Confidence
-More than half (55%) of buyers and 42% of sellers indicated their confidence in the housing market has not changed since before the election.

-Confidence has tipped more positively for sellers than buyers, with 28% of sellers now more confident about prices increasing, compared to before the election.

For more information, visit www.ziprealty.com.

some info obtained from http://rismedia.com

Thanks to record low mortgage rates and declining home prices, 55 million families, or half of all U.S. households, can afford today’s $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB). “That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We are now seeing the first signs that buyers are returning to the marketplace.”

Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.

“With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom,” said Robson.

Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.

Single-family permits were up 11% in February 2009, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey for Century 21 Real Estate last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority - 78% - said that now is a good time to buy a home. Of those responding to the online poll, 68% said that now is a better time to buy than six months ago.

Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March 2009, 1.5 million visitors logged on to NAHB’s consumer website, www.federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20% of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.

“With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5%, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market,” said Robson.

Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.

Construction of an additional 500,000 single-family homes - the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing - would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.

Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations.

“Clearly, housing will be central to any economic recovery we experience in the months ahead,” said Robson.

For more information, visit www.nahb.com.

information obtained from http://rismedia.com

Many home sellers are still out of touch with the changing housing market, a new survey shows.

Almost half of homeowners think their houses should be priced 10% to 20% higher than their sales agents have recommended, according to a nationwide survey by California-based HomeGain.

Maybe thats why fewer than 20% of agents nationwide are reporting that home buyers are telling them that homes on the market are priced fairly.

Almost 60% of agents say potential buyers are telling them that home asking prices are too high, HomeGain found.

“Our survey shows that the market and Realtors are telling homeowners their homes are worth considerably less than homeowners think they are,” HomeGain general manager Louis Cammarosano said in the report.

More than half of real estate agents surveyed predicted that home prices will fall further during the next six months.

Only 11% expect prices to rise.

Also, most real estate agents-about 60% of those surveyed-said the latest government economic stimulus programs will not help home prices.

Just 4% were optimistic that the government programs would cause home prices to rise.

And about one in five agents said that home foreclosures now account for more than 30% of the home sales in their market.

By the Numbers
-Close to 50% of homeowners think their houses should be priced 10% to 20% higher than their sales agents have recommended.
-Fewer than 20% of agents nationwide are reporting that home buyers are telling them that homes on the market are priced fairly.
-Almost 60% of agents say potential buyers are telling them that home asking prices are too high.

The survey included more than 700 real estate agents across the country but did not break out information for individual cities.

2009, The Dallas Morning News.

In February 2009, the National Association of Mortgage Brokers (NAMB) filed suit against the Federal Housing Finance Administration (FHFA) to block implementation of the Home Valuation Code of Conduct (HVCC), which will inhibit competition among mortgage originators and increase the cost of mortgages to consumers. NAMB’s suit asserted that the HVCC constituted a "de facto" rulemaking that did not comply with the requirements of the Administrative Procedures Act (APA), which sets out the procedures a federal agency must follow when issuing a regulation.

Today, NAMB has withdrawn its lawsuit against the FHFA. NAMB invoked this strategic maneuver to assess means by which we can refute the FHFA’s claim that no court may review their decisions while the GSE's are in conservatorship. NAMB believes the FHFA's claim that there are no legal limits on the arbitrary and unilateral use of their conservatorship power is unprecedented and will prove detrimental to consumers.

"This issue goes beyond the bounds of this particular case," said NAMB President, Marc Savitt, CRMS, "All companies, investors, and trade groups should understand there may not be a court, any court, able to hear their case while FHFA is utilizing their conservatorship powers."

NAMB strongly opposes FHFA’s position that it does not need to comply with the APA and other laws. NAMB has withdrawn its lawsuit against FHFA, without prejudice, as it assesses various means to challenge FHFA’s extraordinary claim. Those options include filing suit again with revised and expanded arguments directed at FHFA’s new claim.

from www.namb.com

Federal Reserve Chairman Ben Bernanke says that "We’ll see the recession coming to an end probably this year.”  He also stated in his "60 Minutes" interview that the country will begin to recover next year and will gradually pick up steam over time.

Not to necessarily say that the economy will bounce back into the pre-recession days of two years ago, but Mr. Bernanke said that the economy’s problems should begin to stabilize this year. That recovery, however, is dependent on having the backing of lawmakers and the public.

Mr. Bernanke has now set a time frame on what he believes will be the end of the uneasiness that has fallen on the US economy.

Three of the four mortgage products tracked by Freddie Mac in its Primary Mortgage Market Survey hit new interest rate lows this week.  For the 30-year it was the fourth time in 2009 that a new record has been established.

The survey which covers the week ended April 2 reported that the average interest rate on a 30-year fixed-rate mortgage (FRM) was 4.78 percent compared to the previous record low set last week of 4.85 percent.  Fees and points were unchanged at 0.7 point.  Freddie Mac has been tracking the 30-year FRM since 1971.

The Senate on Wednesday voted to expand the economic stimulus package called the "Responsible Homeowners Act" with a tax credit for homebuyers of up to $15,000, a provision championed by Republicans as addressing a root cause of the recession.  The vote to add the tax credit, at a cost of about $18.5 billion, came as Senate leaders seemed to be nearing completion of negotiations.

The tax break for homebuyers, which the Senate approved by voice vote without opposition, was the second amendment in two days intended to encourage consumers to make major purchases.

The tax credit would give buyers 10 percent of the price of a primary residence bought within one year, up to $15,000, and is intended to stabilize plummeting home prices, which caused a wave of foreclosures and led to the near collapse of the financial system as Wall Street firms wrote down billions in mortgage-backed assets.

With Wednesday’s additions, the cost of the Senate package has climbed well above $900 billion — the limit that Mr. Obama has set for the final legislation.