3Q09 - Delinquencies up, rate slows
According to credit reporting agency TransUnion, delinquent mortgages were up 58% from 3.96% a year ago, and as of Sept. 30, 6.25% of U.S. mortgage loans were 60 or more days past due. Two months delinquency is considered a first step toward foreclosure because it's hard for homeowners to catch up with payments at that point. The rate of delinquency is slowing, however. The rate was up 7.6% from the second quarter -- a much smaller jump than the 11.3% rise in the second quarter and a 14% rise seen in the quarter before that. F.J. Guarrera, vice president of TransUnion's financial services division, says that while the slower rate is encouraging, the co9ntinual increase shows there are still a lot of problematic mortgages out there.
Mortgage delinquencies remain highest in the four states where the crisis has hit the worst: in Nevada, the rate reached 14.5%, up from 7.7% a year ago; in Florida, the rate was 13.3%, up from 7.8% last year; in Arizona, the rate hit 10.4%, up from 5.5% in 2008; and in California, the rate jumped to 10.2%, from 5.8% last year. Two things have to get better before mortgage delinquency rates start reversing themselves: home values and unemployment. "Until we see improvement in both of those areas, it's possible that it will take longer for delinquency to improve," Guarrera said.
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Wednesday, November 18, 2009
Tuesday, November 10, 2009
BOA loans $184 billion in Q309
BOA loans $184 billion in Q309
Bank of America (BOA) extended nearly $184bn in new credit
during Q309, bringing the total of new credit issued for the first nine months of the year to $759 billion. During the first nine months of the year, the bank said its originated $292 billion in first mortgages for more than 1.3 million borrowers. During the quarter, BOA originated $96 billion in first mortgages for nearly 450,000 borrowers purchase homes or refinance mortgages. The $759 billion in new credit extended is equal to nearly $17 for every $1 of the $45 billion of Troubled Asset Relief Program (TARP) funds it received from the federal government.
By November 16, Bank of America will pay more than $2.5 billion in dividend payments to the US Treasury Department. “As households and communities across America continue to feel financial strain, we are working hard to revitalize the US economy by making every good loan that we can to individuals, businesses of all sizes, and municipalities and nonprofits across the country,” said Bank of America’s consumer policy executive Andrew Plepler. “We are hopeful that our ongoing efforts will not only improve economies across America, but also provide consumers the relief they need during these difficult times.”
Bank of America (BOA) extended nearly $184bn in new credit
during Q309, bringing the total of new credit issued for the first nine months of the year to $759 billion. During the first nine months of the year, the bank said its originated $292 billion in first mortgages for more than 1.3 million borrowers. During the quarter, BOA originated $96 billion in first mortgages for nearly 450,000 borrowers purchase homes or refinance mortgages. The $759 billion in new credit extended is equal to nearly $17 for every $1 of the $45 billion of Troubled Asset Relief Program (TARP) funds it received from the federal government.
By November 16, Bank of America will pay more than $2.5 billion in dividend payments to the US Treasury Department. “As households and communities across America continue to feel financial strain, we are working hard to revitalize the US economy by making every good loan that we can to individuals, businesses of all sizes, and municipalities and nonprofits across the country,” said Bank of America’s consumer policy executive Andrew Plepler. “We are hopeful that our ongoing efforts will not only improve economies across America, but also provide consumers the relief they need during these difficult times.”
Tuesday, November 3, 2009
Foreclosures pick up in suburbs
Foreclosures pick up in suburbs
A report from RealtyTrac says dramatic increases in foreclosures in Q309 came in suburban areas previously believed to be stable, such as Boise, Idaho, up nearly 22% from Q209, and Provo, Utah, which rose nearly 11% in the same period. In several states, foreclosure activities drifted toward smaller towns with previously self-sustaining industries. Chico, California in Sacramento Valley, an agricultural hub, had a 98% increase in foreclosures from Q308, according to the report. “You’re moving from Phoenix to Prescott, you’re moving from Las Vegas to Reno,” said Rick Sharga, the vice president of marketing at RealtyTrac.
Sharga sees the foreclosure crisis coming in three waves, and with this new data, the market is showing signs of the second one. “That first wave of foreclosures cratered the economy, which created job losses, which created the second wave. Now, we’re seeing prime rate loans affected by unemployment. And the third wave will be really a repeat of wave one, except this time we’re going to see a switch of Option ARM and Alt-A loans out for the subprime loans. It will probably be as big but somewhat shorter lived.” Sharga said that he expects a peak in foreclosures in 2010, only a marginal improvement in 2011 and a return to normal monthly foreclosure activity sometime in 2012.
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A report from RealtyTrac says dramatic increases in foreclosures in Q309 came in suburban areas previously believed to be stable, such as Boise, Idaho, up nearly 22% from Q209, and Provo, Utah, which rose nearly 11% in the same period. In several states, foreclosure activities drifted toward smaller towns with previously self-sustaining industries. Chico, California in Sacramento Valley, an agricultural hub, had a 98% increase in foreclosures from Q308, according to the report. “You’re moving from Phoenix to Prescott, you’re moving from Las Vegas to Reno,” said Rick Sharga, the vice president of marketing at RealtyTrac.
Sharga sees the foreclosure crisis coming in three waves, and with this new data, the market is showing signs of the second one. “That first wave of foreclosures cratered the economy, which created job losses, which created the second wave. Now, we’re seeing prime rate loans affected by unemployment. And the third wave will be really a repeat of wave one, except this time we’re going to see a switch of Option ARM and Alt-A loans out for the subprime loans. It will probably be as big but somewhat shorter lived.” Sharga said that he expects a peak in foreclosures in 2010, only a marginal improvement in 2011 and a return to normal monthly foreclosure activity sometime in 2012.
www.youtube.com/jdsproperties1
www.jdspropertiesmemphis.com
now serving memphis and st. louis
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