SHADOW INVENTORY, A SCARY SHADOW!
The worst kept secret in the real estate industry is the amount of time a delinquent (defaulting) homeowner can live in theirhome without making a payment.No hard numbers are known but estimates are that close to 10,000,000 defaulting owners are living in homes that they are not paying a dime for.Wall Street Journal published a state by state graph showing the average time that borrowers spend in their homes during delinquency and foreclosure: See Graph Here.Here are the states with the highest number of ‘living free’ days:500-600 days: Florida and New York and others400-500 days: California, Nevada, Washington State, Texas, Ohio, Indiana and many others..200-400 days: The rest of the country.Bottom line, the most amount of time someone can live payment free…600+ days. The LEAST amount of time is nearly a year.
Wednesday, November 17, 2010
Peace of Mind: Title Insurance
Cyborgs are signing documents. The powers that be are scratching their heads in confusion. And MERS is ... well, who knows. In states like California, with its infamous unemployment rate hovering at 12 percent, a real estate industry in an earnest nosedive is the last thing anyone needs.
Unfortunately, that could be the outcome without a swift resolution. And with foreclosures and short sales making up a huge part of the California market, there are many - Realtors, investors, escrow companies, contractors, the surrounding real estate service sectors - whose livelihoods depend on how these issues will ultimately play out.
On this week’s Norris Group Real Estate Radio Show, Kurt Pfotenhauer, CEO of American Land Title Association (ALTA), joins host Bruce Norris for a discussion about the title industry’s take on the situation.
First up, one of the most talked about acronyms in the industry these days: MERS (or Mortgage Electronic Registration Systems).
“Our experience with MERS, speaking on behalf of a broad swath of our membership, is that MERS played an excellent role in bringing some much-needed efficiency to the marketplace,” Kurt said.
The system is fairly simple. A title searcher goes into the public record and finds the MERS name on the mortgage. With it is a MERS Identification Number. Plug that into the MERS system and you know who owns an official interest, who has been assigned the interest, and where the servicing rights are.
Before MERS, every change in assignment would have to be done at the local courthouse, which added cost. Even worse, courthouses would get behind and lien releases could take months.
“MERS was intended to bring order to a fairly chaotic situation,” Kurt said. “It’s delivered on that.”
Having cleared that up, Bruce drives at something many have been wondering:
“We hear rumors of Stewart Title placing restrictions on policies for properties foreclosed on by JP Morgan,” Bruce said. “Was that a temporary concern, or do you think there are insurers that are going to sidestep the issue by not insuring some transfers?”
“I appreciate the opportunity to clear this up,” Kurt said. “The title industry has continued to provide insurance on REO properties. Fidelity, the largest title insurer in the country, last week announced they would not insure any property on which they did not have an indemnity agreement with the bank that owned the property. That’s the first real restriction that I’ve seen on this REO market. “
In an effort to keep REO markets running smoothly, ALTA was working with Fannie, Freddie and lender groups to create an indemnity agreement. Kurt envisioned a handshake where the bank says to the title company: “I warrant that we have followed proper procedure foreclosing on this property. Should there by any issue surrounding the foreclosure, we’ll hold you harmless for the legal costs that you incur defending.”
However, last week the title industry came out against an industry-wide indemnity agreement, as the current operational and procedural review by the banks gave the title industry assurance this wasn’t necessary. As long as confidence in the chain of title can be obtained, title insurance would be insured sans indemnity waiver.
As this story unfolds, we may find overlays in the market depending on the title company and the banks that own the foreclosed properties. Investors who buy at the courthouse steps may find themselves in a position where a lender won’t provide a warranty if required and/or a title company that’s risk averse.
“Every title insurance company has a different appetite for risk. My guess is, if you’re persistent, you’re going to be able to find a title insurance company that’s comfortable with the risk,” Kurt said.
The talk then turns to Bruce’s inbox: “Every weekend I get an email about another lender no longer existing. So what happens to title insurance - let’s say there’s a warranty from a lender who no longer exists on Friday?”
Kurt explained that that it’s an issue individual title companies are considering. While there won’t be a one-size-fits-all solution, title insurers and lenders have equal interest in seeing the market work smoothly.
“And if a title insurance company goes upside down and you’re holding one of those policies?” Bruce asked.
“The title insurance industry is very strictly regulated as to its capital requirements,” Kurt said. “It’s a monoline insurance, meaning we can’t commingle the reserves for title insurance reserves with any other kind of reserves. It’s made the industry extraordinarily solvent even through this down cycle."
“I think you can say the title industry has been a regulatory success story, because it’s still around to provide the protection it promised.”
Bruce then asked about the effect of title insurance binders when exiting a property, and Kurt explained that they provide a company standing behind your ownership claim.
“There’s always some grey area in the law, some nuance to the law and its application,” Kurt said. “I think what that does is give future owners or lenders confidence that the collateral or the property is there. And that’s the whole benefit of this system. Without those guarantees commerce doesn’t move around as quickly.”
In recent months, stories have circulated in the media regarding foreclosed homeowners breaking into their former houses and taking possession. “We know of several cases where a trustee sale buyer buys on the courthouse steps, fixes up the house, and the previous owner attempts to move back in,” Bruce said. “Then these guys are getting sued for quiet title actions. Had they had policies, that legal indemnification would kick in and there would be attorneys from the insurance world protecting their interest. Is that accurate?”
“Exactly right,” Kurt said. “And more importantly, there probably would have been due diligence done to discover any flaws or potential claims against the title prior to getting mugged by it.”
Kurt said it best when he said the real benefit of this insurance is peace of mind. You know what you have is yours. Somebody has done a very thorough job in establishing that - and in the unlikely case it’s challenged - you have somebody there to handle the claim.
Cyborgs are signing documents. The powers that be are scratching their heads in confusion. And MERS is ... well, who knows. In states like California, with its infamous unemployment rate hovering at 12 percent, a real estate industry in an earnest nosedive is the last thing anyone needs.
Unfortunately, that could be the outcome without a swift resolution. And with foreclosures and short sales making up a huge part of the California market, there are many - Realtors, investors, escrow companies, contractors, the surrounding real estate service sectors - whose livelihoods depend on how these issues will ultimately play out.
On this week’s Norris Group Real Estate Radio Show, Kurt Pfotenhauer, CEO of American Land Title Association (ALTA), joins host Bruce Norris for a discussion about the title industry’s take on the situation.
First up, one of the most talked about acronyms in the industry these days: MERS (or Mortgage Electronic Registration Systems).
“Our experience with MERS, speaking on behalf of a broad swath of our membership, is that MERS played an excellent role in bringing some much-needed efficiency to the marketplace,” Kurt said.
The system is fairly simple. A title searcher goes into the public record and finds the MERS name on the mortgage. With it is a MERS Identification Number. Plug that into the MERS system and you know who owns an official interest, who has been assigned the interest, and where the servicing rights are.
Before MERS, every change in assignment would have to be done at the local courthouse, which added cost. Even worse, courthouses would get behind and lien releases could take months.
“MERS was intended to bring order to a fairly chaotic situation,” Kurt said. “It’s delivered on that.”
Having cleared that up, Bruce drives at something many have been wondering:
“We hear rumors of Stewart Title placing restrictions on policies for properties foreclosed on by JP Morgan,” Bruce said. “Was that a temporary concern, or do you think there are insurers that are going to sidestep the issue by not insuring some transfers?”
“I appreciate the opportunity to clear this up,” Kurt said. “The title industry has continued to provide insurance on REO properties. Fidelity, the largest title insurer in the country, last week announced they would not insure any property on which they did not have an indemnity agreement with the bank that owned the property. That’s the first real restriction that I’ve seen on this REO market. “
In an effort to keep REO markets running smoothly, ALTA was working with Fannie, Freddie and lender groups to create an indemnity agreement. Kurt envisioned a handshake where the bank says to the title company: “I warrant that we have followed proper procedure foreclosing on this property. Should there by any issue surrounding the foreclosure, we’ll hold you harmless for the legal costs that you incur defending.”
However, last week the title industry came out against an industry-wide indemnity agreement, as the current operational and procedural review by the banks gave the title industry assurance this wasn’t necessary. As long as confidence in the chain of title can be obtained, title insurance would be insured sans indemnity waiver.
As this story unfolds, we may find overlays in the market depending on the title company and the banks that own the foreclosed properties. Investors who buy at the courthouse steps may find themselves in a position where a lender won’t provide a warranty if required and/or a title company that’s risk averse.
“Every title insurance company has a different appetite for risk. My guess is, if you’re persistent, you’re going to be able to find a title insurance company that’s comfortable with the risk,” Kurt said.
The talk then turns to Bruce’s inbox: “Every weekend I get an email about another lender no longer existing. So what happens to title insurance - let’s say there’s a warranty from a lender who no longer exists on Friday?”
Kurt explained that that it’s an issue individual title companies are considering. While there won’t be a one-size-fits-all solution, title insurers and lenders have equal interest in seeing the market work smoothly.
“And if a title insurance company goes upside down and you’re holding one of those policies?” Bruce asked.
“The title insurance industry is very strictly regulated as to its capital requirements,” Kurt said. “It’s a monoline insurance, meaning we can’t commingle the reserves for title insurance reserves with any other kind of reserves. It’s made the industry extraordinarily solvent even through this down cycle."
“I think you can say the title industry has been a regulatory success story, because it’s still around to provide the protection it promised.”
Bruce then asked about the effect of title insurance binders when exiting a property, and Kurt explained that they provide a company standing behind your ownership claim.
“There’s always some grey area in the law, some nuance to the law and its application,” Kurt said. “I think what that does is give future owners or lenders confidence that the collateral or the property is there. And that’s the whole benefit of this system. Without those guarantees commerce doesn’t move around as quickly.”
In recent months, stories have circulated in the media regarding foreclosed homeowners breaking into their former houses and taking possession. “We know of several cases where a trustee sale buyer buys on the courthouse steps, fixes up the house, and the previous owner attempts to move back in,” Bruce said. “Then these guys are getting sued for quiet title actions. Had they had policies, that legal indemnification would kick in and there would be attorneys from the insurance world protecting their interest. Is that accurate?”
“Exactly right,” Kurt said. “And more importantly, there probably would have been due diligence done to discover any flaws or potential claims against the title prior to getting mugged by it.”
Kurt said it best when he said the real benefit of this insurance is peace of mind. You know what you have is yours. Somebody has done a very thorough job in establishing that - and in the unlikely case it’s challenged - you have somebody there to handle the claim.
Monday, November 1, 2010
ECONOMY AND THE VOTE
This week is one big week for the markets. Since Sept 21st at the conclusion of the FOMC meeting when the Fed announced it was prepared to buy more treasuries the bond and mortgage markets have had a yo-yo ride. On the announcement it set up a big move lower in rates taking the 10 yr down 40 basis points, then markets began to see an easing move as a step to increase inflation and the bond and mortgage markets turned and now sit about where interest rates were prior to the FOMC meeting. On Wednesday the FOMC will actually announce what the Fed intends. Unless there is some form of shock and awe the Fed's easing move may simply be another failed attempt to revive the housing markets and the economy.
Economic data ends the week with the employment report on Friday. In the meantime the data calendar has key data ;points everyday this week except Tuesday, election day. The election is the least of the issues this week as there is little doubt Republicans will take the House but likely not the Senate. Talk of grid-lock with the change in Congress; normally considered good, grid-lock this time is something to avoid with the economy barely holding on. Nothing expected from the elections until January when the new Congress gets underway, in the meantime the lame duck Congress is all about scrambling the eggs. Extending the tax cuts coming at the end of the year is the main event.
Difficult to predict how the bond market will take the FOMC policy statement on Wednesday, in the meantime the rate markets will likely stay about where they are. Friday's Oct employment report is expected with just 60K non-farm private job growth and the unemployment rate unchanged at 9.6%. Unless job growth exceeds 100K a month it doesn't even cover the new entries in the job market let alone those that have lost jobs in the recession.
This week is one big week for the markets. Since Sept 21st at the conclusion of the FOMC meeting when the Fed announced it was prepared to buy more treasuries the bond and mortgage markets have had a yo-yo ride. On the announcement it set up a big move lower in rates taking the 10 yr down 40 basis points, then markets began to see an easing move as a step to increase inflation and the bond and mortgage markets turned and now sit about where interest rates were prior to the FOMC meeting. On Wednesday the FOMC will actually announce what the Fed intends. Unless there is some form of shock and awe the Fed's easing move may simply be another failed attempt to revive the housing markets and the economy.
Economic data ends the week with the employment report on Friday. In the meantime the data calendar has key data ;points everyday this week except Tuesday, election day. The election is the least of the issues this week as there is little doubt Republicans will take the House but likely not the Senate. Talk of grid-lock with the change in Congress; normally considered good, grid-lock this time is something to avoid with the economy barely holding on. Nothing expected from the elections until January when the new Congress gets underway, in the meantime the lame duck Congress is all about scrambling the eggs. Extending the tax cuts coming at the end of the year is the main event.
Difficult to predict how the bond market will take the FOMC policy statement on Wednesday, in the meantime the rate markets will likely stay about where they are. Friday's Oct employment report is expected with just 60K non-farm private job growth and the unemployment rate unchanged at 9.6%. Unless job growth exceeds 100K a month it doesn't even cover the new entries in the job market let alone those that have lost jobs in the recession.
Wednesday, October 27, 2010
GREAT TIPS TO IMPROVE YOUR CREDIT SCORE.
Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.
Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari, developed the top 10 credit don'ts during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals
Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.
Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari, developed the top 10 credit don'ts during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals
Tuesday, October 26, 2010
MARKET RECAP
We can't say that the post-tax credit lull is officially over, but recent housing data lead us to believe it is. Housing starts again surprised on the upside, increasing 0.3 percent in September to 610,000 seasonally adjusted annual units, after jumping 10.5 percent in August. More importantly, single-family starts were noticeably stronger, increasing 4.4 percent month-to-month.
Gains in the immediate future might be tougher to come by. Permits declined 5.6 percent, lead by an acute decline in the multi-family segment, which tumbled 20.2 percent after a 9.8 percent rise in August. The bad news on multi-family permits – which tend to be volatile anyway – is offset somewhat by the good news that single-family permits edged up 0.5 percent.
Improving sales and more construction helped lift the Housing Market Index – a gauge of homebuilder sentiment – to a 16 reading in October after posting at 13 in September. Although the sentiment is still low, it should continue to improve: the HMI component for sales expected in the next six months rose to 23 from September's 18.
We don't want to minimize legitimate concerns, but the tendency is to extrapolate near-term news farther into the future than it probably deserves. Admittedly, news has been underwhelming due to tax-credit expirations, sluggish job growth, shadow inventory build up and foreclosure-gate, but these things can pass as quickly as they come. Indeed, we are already seeing reports that last week's fears of a country-wide foreclosure meltdown were seriously overdone.
In the meantime, mortgage rates remain stable (which also means they show little inclination to go lower), as do home prices, so it's important to keep the long term in perspective. Few people doubt that there's a high probability that a refinance or a home purchase today will look like a very savvy investment five years hence.
the economy.
Another Reason We Think Home Prices Have Bottomed
Last week we discussed quantitative easing and the prospect of the Federal Reserve injecting more money into the banking system. The scuttlebutt on the street says the Fed could pump another trillion dollars into the system through Treasury-bond purchases. It's no slam-dunk, though; the money supply is already at an all-time high, according to the St. Louis Bank of the Federal Reserve.
Because of heightened uncertainty, new money has had only a minor impact on consumer prices. In other words, consumer-price inflation remains low (though prices haven't been falling either). Much of the inflation associated with the new money has shown up in the investment markets instead, particularly in stock and gold prices.
We think it's only a matter of time before consumer prices come under inflationary pressure. The fact is that even if the Federal Reserve doesn't add more money to the system, the banks could. They are sitting on $980 billion of excess reserves, which could easily be drawn into the loan markets, thus further expanding the money supply.
All this money and the potential for even more money will help keep home prices stable in nominal terms. And it's these nominal values that serve as the basis for home appraisals and loan amounts. In other words, if the Fed's goal were to maintain a median home price of $200,000, it could theoretically pump enough money into the economy to make it happen. It wouldn't necessarily be a good idea, but it is an option if price stability were the goal.
We can't say that the post-tax credit lull is officially over, but recent housing data lead us to believe it is. Housing starts again surprised on the upside, increasing 0.3 percent in September to 610,000 seasonally adjusted annual units, after jumping 10.5 percent in August. More importantly, single-family starts were noticeably stronger, increasing 4.4 percent month-to-month.
Gains in the immediate future might be tougher to come by. Permits declined 5.6 percent, lead by an acute decline in the multi-family segment, which tumbled 20.2 percent after a 9.8 percent rise in August. The bad news on multi-family permits – which tend to be volatile anyway – is offset somewhat by the good news that single-family permits edged up 0.5 percent.
Improving sales and more construction helped lift the Housing Market Index – a gauge of homebuilder sentiment – to a 16 reading in October after posting at 13 in September. Although the sentiment is still low, it should continue to improve: the HMI component for sales expected in the next six months rose to 23 from September's 18.
We don't want to minimize legitimate concerns, but the tendency is to extrapolate near-term news farther into the future than it probably deserves. Admittedly, news has been underwhelming due to tax-credit expirations, sluggish job growth, shadow inventory build up and foreclosure-gate, but these things can pass as quickly as they come. Indeed, we are already seeing reports that last week's fears of a country-wide foreclosure meltdown were seriously overdone.
In the meantime, mortgage rates remain stable (which also means they show little inclination to go lower), as do home prices, so it's important to keep the long term in perspective. Few people doubt that there's a high probability that a refinance or a home purchase today will look like a very savvy investment five years hence.
the economy.
Another Reason We Think Home Prices Have Bottomed
Last week we discussed quantitative easing and the prospect of the Federal Reserve injecting more money into the banking system. The scuttlebutt on the street says the Fed could pump another trillion dollars into the system through Treasury-bond purchases. It's no slam-dunk, though; the money supply is already at an all-time high, according to the St. Louis Bank of the Federal Reserve.
Because of heightened uncertainty, new money has had only a minor impact on consumer prices. In other words, consumer-price inflation remains low (though prices haven't been falling either). Much of the inflation associated with the new money has shown up in the investment markets instead, particularly in stock and gold prices.
We think it's only a matter of time before consumer prices come under inflationary pressure. The fact is that even if the Federal Reserve doesn't add more money to the system, the banks could. They are sitting on $980 billion of excess reserves, which could easily be drawn into the loan markets, thus further expanding the money supply.
All this money and the potential for even more money will help keep home prices stable in nominal terms. And it's these nominal values that serve as the basis for home appraisals and loan amounts. In other words, if the Fed's goal were to maintain a median home price of $200,000, it could theoretically pump enough money into the economy to make it happen. It wouldn't necessarily be a good idea, but it is an option if price stability were the goal.
Home Buying and Selling Tips for Fall
Here are some of their tips for fall buyers and sellers:
Fall Sellers:
Replace faded summer plants with fall-blooming flowers and add autumn decorations to the home.
Expect low-ball offers and be prepared with higher counter offers.
Freshen up listing photos by shooting pictures that make it less obvious that the seasons have changed.
Price the home to sell. A price that is a little lower than the competition may be a winning move.
Be willing to show the property and hold open houses whenever potential buyers are ready
Fall Buyers:
Look for motivated sellers who have a reason to move on by the end of the year.
Explore new constructions. Builders are often interested in selling before the new tax year.
Beware of fall maintenance issues. Consider overflowing gutters and leaf-covered lawns.
Shape offers carefully. Even in this market it is possible to turn sellers off with a too-low bid.
Fall Maintenance
1. Check your heating system including filters, pilot lights and burners. Have the system serviced by a qualified professional. Cleaning and servicing now can save you money later. Learn steps to boost your furnace's efficiency and how to replace your furnace filter.
Here are some of their tips for fall buyers and sellers:
Fall Sellers:
Replace faded summer plants with fall-blooming flowers and add autumn decorations to the home.
Expect low-ball offers and be prepared with higher counter offers.
Freshen up listing photos by shooting pictures that make it less obvious that the seasons have changed.
Price the home to sell. A price that is a little lower than the competition may be a winning move.
Be willing to show the property and hold open houses whenever potential buyers are ready
Fall Buyers:
Look for motivated sellers who have a reason to move on by the end of the year.
Explore new constructions. Builders are often interested in selling before the new tax year.
Beware of fall maintenance issues. Consider overflowing gutters and leaf-covered lawns.
Shape offers carefully. Even in this market it is possible to turn sellers off with a too-low bid.
Fall Maintenance
1. Check your heating system including filters, pilot lights and burners. Have the system serviced by a qualified professional. Cleaning and servicing now can save you money later. Learn steps to boost your furnace's efficiency and how to replace your furnace filter.
Wednesday, October 20, 2010
Bank of America Foreclosures to Resume in 23 States (CA not included yet)
Here’s a list of the 23 states in which Bank of America will begin reissuing foreclosures:
Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, Wisconsin
Bank of America will resume mortgage foreclosures in 23 states.
The bank, which earlier this month stopped foreclosures across the nation, announced its plans to restart foreclosure sales in nearly half of those states by October 25, which is next Monday. Chase Bank, PNC Bank and Ally GMAC have all stopped foreclosures in those 23 states.
The bank reported that it had not found any improper paperwork so far. It will resume 102,000 foreclosures next week as a result of the decision.
“Our initial assessment findings show the basis for our foreclosure decisions is accurate,” Bank of America said in a statement. “Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly.”
Here’s a list of the 23 states in which Bank of America will begin reissuing foreclosures:
Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, Wisconsin
Bank of America will resume mortgage foreclosures in 23 states.
The bank, which earlier this month stopped foreclosures across the nation, announced its plans to restart foreclosure sales in nearly half of those states by October 25, which is next Monday. Chase Bank, PNC Bank and Ally GMAC have all stopped foreclosures in those 23 states.
The bank reported that it had not found any improper paperwork so far. It will resume 102,000 foreclosures next week as a result of the decision.
“Our initial assessment findings show the basis for our foreclosure decisions is accurate,” Bank of America said in a statement. “Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly.”
Monday, October 18, 2010
California Latinos: Paying the High Price of Foreclosure
Latinos and African Americans in California have experienced significantly higher foreclosure rates than non-Hispanic borrowers in the state, according to the Center of Responsible Lending. These communities represent more than half of all foreclosures, with 48% of foreclosures on Latinos and 8% on African Americans. The study analyzed more than 600,000 foreclosures.
Latinos and African Americans in California have experienced significantly higher foreclosure rates than non-Hispanic borrowers in the state, according to the Center of Responsible Lending. These communities represent more than half of all foreclosures, with 48% of foreclosures on Latinos and 8% on African Americans. The study analyzed more than 600,000 foreclosures.
Wednesday, October 13, 2010
A DAY OF JOY FOR HUMAN KIND!!
What a glorious day!, they have rescued the 33 miners in Chile!
For the last two months we have grown used to listening about the terrible ordeal that these poor men and their families were enduring, imagine being trapped a mile under the surface, with slight to none chances of surviving. It went from a headline news to a second rated notice, except for these poor people.
Today billions of people around the world watched, with tears in our eyes, the exhiliarating moments of a great triumph of man kind, of our technology, or persistence, and more than anything, the miracle of life.
It made me think. How lucky we are, no matter how trapped we feel by our economy, our joblessness, our family problems, when we compare our ordeal to what these men went through, all our problems sudenly seem so, so small, so pale.
This day, today, is without a doubt, the happiest day of all of these guy's lives, and why are they so happy?, because they now are aware that no matter how poor they are, how bad their situation was, it can always be much worse and how ever their life was before being trapped, it was a life worth living, they could look at the sunset, admire the beauty of nature, they were loved by their families, they could enjoy the wonders of God's creation for free, and they had taken all of this for granted, as we all do.
We are so immersed in our little world, that we forget to enjoy the truly amazing things that God placed are around us every day.
That is why we all cried, that is why, this is a great day for all of us, humans, because this fantastic event in that tiny town in Chile, has given us all, a chance to reflect, to rethink our priorities, to appreciate what we have, and to praise our God and thank him for making this life so amazingly wonderful!
What a glorious day!, they have rescued the 33 miners in Chile!
For the last two months we have grown used to listening about the terrible ordeal that these poor men and their families were enduring, imagine being trapped a mile under the surface, with slight to none chances of surviving. It went from a headline news to a second rated notice, except for these poor people.
Today billions of people around the world watched, with tears in our eyes, the exhiliarating moments of a great triumph of man kind, of our technology, or persistence, and more than anything, the miracle of life.
It made me think. How lucky we are, no matter how trapped we feel by our economy, our joblessness, our family problems, when we compare our ordeal to what these men went through, all our problems sudenly seem so, so small, so pale.
This day, today, is without a doubt, the happiest day of all of these guy's lives, and why are they so happy?, because they now are aware that no matter how poor they are, how bad their situation was, it can always be much worse and how ever their life was before being trapped, it was a life worth living, they could look at the sunset, admire the beauty of nature, they were loved by their families, they could enjoy the wonders of God's creation for free, and they had taken all of this for granted, as we all do.
We are so immersed in our little world, that we forget to enjoy the truly amazing things that God placed are around us every day.
That is why we all cried, that is why, this is a great day for all of us, humans, because this fantastic event in that tiny town in Chile, has given us all, a chance to reflect, to rethink our priorities, to appreciate what we have, and to praise our God and thank him for making this life so amazingly wonderful!
Tuesday, October 12, 2010
Foreclosure Moratorium, Robo-Signer Fiasco Should Be Resolved Soon.
The White House, yielding to common sense, opposes a national moratorium on foreclosure sales on the grounds that it would harm the housing market. (Finally something good from the Obamas)
David Axelroid, a White House senior adviser, said on CBS’s “Face the Nation” on Suday: “I’m not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward.”
That brings up the question of what a valid foreclosure is. My definition: When a homeowner hasn’t made mortgage payments in at least three months, and the servicer has notified all necessary parties that it intends to take back the property, and the borrower doesn’t reach some sort of accommodation with the servicer, then a foreclosure is valid.
Some readers commented last week that mortgage servicers forged documents. The robo-signing issue has nothing to do with forgery. The robo-signers aren’t accused of faking documents. They’re accused of not closely reading the documents, which mostly are legal boilerplate.
Other readers say the foreclosing servicer should be required to prove ownership of the loan. I’m not sure what the argument is here. The borrower doesn’t send checks to the servicer. After a few months, that same servicer starts the foreclosure process. Obviously, the servicer works on behalf of the owner (or owners) of the loan.
When two servicers foreclose, I can see where ownership of the loan becomes a valid question. But I don’t think there are a lot of cases of multiple servicers foreclosing on the same loan.
Hot off the press from Bloomberg.
It appears that the robo-signer…foreclosure moratorium will be resolved this week.
Title insurers are in talks with banks and regulators to obtain warranties from lenders assuring they followed proper procedures before selling foreclosed homes, said Kurt Pitohouse, head of the insurers’ trade group.
“Everyone sort of sees the same risks, and that’s the good part,” Pitohouse, chief executive officer of the American Land Title Association, said today in a telephone interview. “You just have to craft a solution that’s acceptable to all the parties, and we’re making progress.”
Bank of America Corp., the biggest U.S. lender, on Oct. 8 extended a freeze on foreclosures to all 50 states amid concern by federal and state officials that homes are being seized based on faulty information. The Charlotte, North Carolina-based bank agreed that day to issue warranties for Fidelity National Financial Inc., the largest title insurer, said Peter Sidransky executive vice president and chief legal officer for Fidelity.
“It’s a representation that there are no issues going forward and an indemnity if someone makes a mistake,” he said.
JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC Mortgage unit have also stopped repossession cases in 23 states where courts supervise home seizures, amid allegations that employees submitted documents with unverified or false data to speed the process.
End of Week
A decision on the warranties may be reached by the end of the week, Pitohouse said. The assurances would help lenders resume foreclosures of homes with mortgage defaults and continue selling off their backlog of repossessed properties, he said. Pitohouse wouldn’t name the companies or regulators involved in the talks.
Fidelity National shares have dropped 10 percent this month. The company had about 38 percent of the market in the second quarter, according to the title insurance association. Shares of Santa Ana, California-based First American Financial Co., the No. 2 insurer, have fallen 5 percent.
Costs for title insurers to defend customers and reimburse for lost properties rose to $480.5 million in the first half of 2010, an increase of 14 percent from a year earlier, according to the American Land Title Association.
Among the tasks performed by title insurers is reviewing the public record for a court order that confirms a bank owns a particular property before it’s foreclosed on, Pitohouse said.
“Court rulings on valid foreclosures are going to be challenged,” he said. “That means we may get pulled into litigation.”
Preventing Risks
The warranties in the works are intended to protect title insurers from similar risks in the future, Pitohouse said.
Bank of America’s agreement with Jacksonville, Florida- based Fidelity National calls for the lender to cover the title insurer’s costs in the event of an error in the company’s processing of foreclosure documents, Sidranski or (Charransky, as his friends call him) said. The bank will notify the insurer in each case that the foreclosure complies with state laws and regulations.
Bank of America is in talks with other title insurers for similar agreements, said Richard Bramhall, the bank’s chief title officer. He declined to name the other companies.
“Our goal is to restore order to the chaos,” he said. “We’re optimistic that this will help calm the waters in regard to all the anxiety you see all over the country.”
The White House, yielding to common sense, opposes a national moratorium on foreclosure sales on the grounds that it would harm the housing market. (Finally something good from the Obamas)
David Axelroid, a White House senior adviser, said on CBS’s “Face the Nation” on Suday: “I’m not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward.”
That brings up the question of what a valid foreclosure is. My definition: When a homeowner hasn’t made mortgage payments in at least three months, and the servicer has notified all necessary parties that it intends to take back the property, and the borrower doesn’t reach some sort of accommodation with the servicer, then a foreclosure is valid.
Some readers commented last week that mortgage servicers forged documents. The robo-signing issue has nothing to do with forgery. The robo-signers aren’t accused of faking documents. They’re accused of not closely reading the documents, which mostly are legal boilerplate.
Other readers say the foreclosing servicer should be required to prove ownership of the loan. I’m not sure what the argument is here. The borrower doesn’t send checks to the servicer. After a few months, that same servicer starts the foreclosure process. Obviously, the servicer works on behalf of the owner (or owners) of the loan.
When two servicers foreclose, I can see where ownership of the loan becomes a valid question. But I don’t think there are a lot of cases of multiple servicers foreclosing on the same loan.
Hot off the press from Bloomberg.
It appears that the robo-signer…foreclosure moratorium will be resolved this week.
Title insurers are in talks with banks and regulators to obtain warranties from lenders assuring they followed proper procedures before selling foreclosed homes, said Kurt Pitohouse, head of the insurers’ trade group.
“Everyone sort of sees the same risks, and that’s the good part,” Pitohouse, chief executive officer of the American Land Title Association, said today in a telephone interview. “You just have to craft a solution that’s acceptable to all the parties, and we’re making progress.”
Bank of America Corp., the biggest U.S. lender, on Oct. 8 extended a freeze on foreclosures to all 50 states amid concern by federal and state officials that homes are being seized based on faulty information. The Charlotte, North Carolina-based bank agreed that day to issue warranties for Fidelity National Financial Inc., the largest title insurer, said Peter Sidransky executive vice president and chief legal officer for Fidelity.
“It’s a representation that there are no issues going forward and an indemnity if someone makes a mistake,” he said.
JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC Mortgage unit have also stopped repossession cases in 23 states where courts supervise home seizures, amid allegations that employees submitted documents with unverified or false data to speed the process.
End of Week
A decision on the warranties may be reached by the end of the week, Pitohouse said. The assurances would help lenders resume foreclosures of homes with mortgage defaults and continue selling off their backlog of repossessed properties, he said. Pitohouse wouldn’t name the companies or regulators involved in the talks.
Fidelity National shares have dropped 10 percent this month. The company had about 38 percent of the market in the second quarter, according to the title insurance association. Shares of Santa Ana, California-based First American Financial Co., the No. 2 insurer, have fallen 5 percent.
Costs for title insurers to defend customers and reimburse for lost properties rose to $480.5 million in the first half of 2010, an increase of 14 percent from a year earlier, according to the American Land Title Association.
Among the tasks performed by title insurers is reviewing the public record for a court order that confirms a bank owns a particular property before it’s foreclosed on, Pitohouse said.
“Court rulings on valid foreclosures are going to be challenged,” he said. “That means we may get pulled into litigation.”
Preventing Risks
The warranties in the works are intended to protect title insurers from similar risks in the future, Pitohouse said.
Bank of America’s agreement with Jacksonville, Florida- based Fidelity National calls for the lender to cover the title insurer’s costs in the event of an error in the company’s processing of foreclosure documents, Sidranski or (Charransky, as his friends call him) said. The bank will notify the insurer in each case that the foreclosure complies with state laws and regulations.
Bank of America is in talks with other title insurers for similar agreements, said Richard Bramhall, the bank’s chief title officer. He declined to name the other companies.
“Our goal is to restore order to the chaos,” he said. “We’re optimistic that this will help calm the waters in regard to all the anxiety you see all over the country.”
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