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US economic crisis – foreclosure info and what has the housing bailout package done to help – created another agency that President Bush and US Congress appoints?


The number of total foreclosure filings rose from about 885,000 in 2005 to 1,259,118 in 2006.

U.S. Foreclosure Filings Up 42 Percent From 2005
Colorado, Georgia, Nevada Post Highest Foreclosure Rates

Colorado, Georgia, Nevada post highest foreclosure rates
Colorado documented the nation’s highest state foreclosure rate for the year, one foreclosure filing for every 33 households — or 3 percent of the state’s households. The state reported a total of 54,747 foreclosure filings during the year, an 85 percent increase from 2005 and the eighth highest total among all the states.

IRVINE, Calif. – Jan. 25, 2007 (realtytrac)


WASHINGTON (Thomson Financial) – The number of foreclosures filed by US homeowners increased sharply in December and left calendar-year 2007 foreclosures higher by nearly 1 mln compared with 2006, according to a private sector report released today.

The number of foreclosure filings for December was 215,749, up 6.8 pct from November, according to California-based RealtyTrac.

December foreclosure filings are 97 pct higher than the number of foreclosures seen in December 2006.

This rise led to a total of 2.2 mln foreclosures in 2007, up 75 pct from the roughly 1.26 mln the company reported in 2006. RealtyTrac said 1 pct of all US households was in ‘some stage of foreclosure’ in 2007, up from 0.58 pct in 2006.
AFX News Limited
US foreclosures rise in December; reach 2.2 mln in 2007, up 75 pct from 2006
01.29.08, 5:16 AM ET



Number of Foreclosure Filings Hits Record High in August
September 19th, 2008 by admin

When the numbers for August foreclosures were reported, it can not be considered as good news especially considering that there were actually 304,000 homes in default. To make this even more depressing, data gathered by RealtyTrac showed that about 91,000 American families lost their homes to foreclosure.

Including all the houses that were repossessed by the mortgage lenders since August last year, there is already a total of 770,000 homes. More can actually be expected as the problems in the credit industry culminated in the bankruptcy filing of Lehman Brothers and rescuing of AIG by the federal government this week.

For Fannie Mae, the record high numbers are not surprising since they are expecting the foreclosure crisis to bottom out during the last months of the present year. With the national economy suffering another huge blow and the number of unemployed reaching 400,000 every month, it is not surprising that the bottom is much deeper than anticipated.


Foreclosure starts are reported by the Administrative Office of the Courts

U.S. Foreclosures Hit Record in August as Housing Prices Fell

By Dan Levy
Enlarge Image/Details

Sept. 12 (Bloomberg) — U.S. foreclosure filings rose to a record in August as falling home prices made it harder to sell or refinance homes to pay off the mortgage, RealtyTrac Inc. said.

Owners of 303,879 properties, or one in 416 U.S. households, got a default notice, were warned of a pending auction or foreclosed on last month. That was the most since reporting began in January 2005. Filings increased 27 percent from a year earlier,

[ . . .]

The worst housing slump since the 1930s shows little sign of abating. Home prices in 20 U.S. metropolitan areas declined 15.9 percent in June from a year earlier, according to the S&P/Case- Shiller index. Prices may fall another 10 percent through the end of 2009, according to analysts at Lehman Brothers Holdings Inc.

August filings were 11 percent higher than the previous record of 273,001 set in May, according to RealtyTrac. Filings rose 12 percent from July. Bank seizures, the last stage of the foreclosure process, known as real estate-owned or REO properties, more than doubled from a year ago to 90,893.

Defaults rose 10 percent and auctions rose 7 percent from August 2007, said RealtyTrac, which has a database of more than 1.5 million properties.

Unsold Homes

There are 3.9 million unsold existing single-family homes, the most since at least 1982, according to the Chicago-based National Association of Realtors.

To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net
Last Updated: September 12, 2008 05:00 EDT



U.S. foreclosures jump 57%

Dan Levy, Bloomberg  Published: Tuesday, April 15, 2008
U.S. foreclosure filings jumped 57% and bank repossessions more than doubled in March from a year earlier as adjustable mortgages increased and more owners gave up their homes to lenders.

More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households, Irvine, California-based RealtyTrac Inc., a seller of default data, said today in a statement.

[ . . . ]

About US$460-billion of adjustable-rate loans are scheduled to reset this year, according to New York-based analysts at Citigroup Inc. Auction notices rose 32% from a year ago, a sign that more defaulting homeowners are “simply walking away and deeding their properties back to the foreclosing lender” rather than letting the home be auctioned, RealtyTrac Chief Executive Officer James Saccacio said in the statement.

“We’re not near the bottom of this at all,” said Kenneth Rosen, chairman of Rosen Real Estate Securities LLC, a hedge fund in Berkeley, California and chairman of the Fisher Center for Real Estate at the University of California at Berkeley. “The foreclosure process will accelerate throughout the year.”

Rising foreclosures will add more inventory to an already glutted market, keep home prices down through at least next year and thwart efforts by Congress and President George W. Bush to help homeowners avoid default, Rosen said in an interview.

About 2.5 million foreclosed properties will be on the market this year and in 2009, Lehman Brothers Holdings Inc. analysts led by Michelle Meyer said in an April 10 report. U.S. home price declines will probably double to a national average of 20% by next year, with lower values most likely in metropolitan areas in California, Florida, Arizona and Nevada, mortgage insurer PMI Group Inc. said last week in a report.

Borrowers who owe more on their mortgages than their homes are worth may be buffeted by increasing job losses in a “very substantial recession,” Rosen said. About 8.8 million borrowers had home mortgages that exceeded the value of their property, Moody’s Economy.com said last week.

“At least 2 million jobs will be lost because of this recession, so we’ll get a cumulative negative spiral,” Rosen said. “A normal recession is 10 months. We think this one may be twice as long.”

Bank seizures climbed 129% from a year earlier, according to RealtyTrac

Some borrowers are “hanging on at the margins” in the face of resets, said Mark Goldman, a loan officer at Windsor Capital Mortgage Corp. in San Diego.

Goldman said one of his clients is a self-employed contractor whose adjustable-rate mortgage rose by two%age points two months ago. His mortgage payment has increased to US$7,200 from US$4,900.

The Federal Housing Finance Agency is an independent federal agency created as the successor regulatory agency resulting from the statutory merger of the Federal Housing Finance Board (FHFB) and the Office of Federal Housing Enterprise Oversight (OFHEO), absorbing the powers and regulatory authority of both entities, with expanded legal and regulatory authority, including the ability to place government sponsored enterprises into receivership or conservatorship.[1][2][3]

The enabling law establishing the FHFA is the Federal Housing Finance Regulatory Reform Act of 2008, which is Division A of the larger Housing and Economic Recovery Act of 2008, Public Law 110-289, signed on July 30, 2008 by President George W. Bush. One year after the law was signed, the OFHEO and the FHFB shall go out of existence. All existing regulations, orders and decisions of OFHEO and the Finance Board remain in effect until modified or superseded. James B. Lockhart III, the director of OFHEO, is the director of the new FHFA.[4][5][6]

Congress > Legislation >  2007-2008 (110th Congress) >  H.R. 3221
Text of H.R. 3221: Housing and Economic Recovery Act of 2008

The US banking sector’s short-term liabilities as of October 11, 2008 are 15% of the GDP of the United States or 43% of its national debt, and the average bank leverage ratio (assets divided by net worth) is 12 to 1.[1]

Deregulation – 1980s

Legislation passed by the federal government during the 1980s, while the House of Representatives was under control of the Democratic party and President Jimmy Carter, such as the Depository Institutions Deregulation and Monetary Control Act of 1980 and the Garn-St. Germaine Depository Institutions Act of 1982, diminished the distinctions between banks and other financial institutions in the United States. This legislation is frequently referred to as “deregulation,” and it is often blamed for the failure of over 500 savings and loan associations between 1980 and 1988, and the subsequent failure of the Federal Savings and Loan Insurance Corporation (FSLIC) whose obligations were assumed by the FDIC in 1989. However, some critics of this viewpoint, particularly libertarians, have pointed out that the federal government’s attempts at deregulation granted easy credit to federally insured financial institutions, encouraging them to overextend themselves and (thus) fail.

A list of many commercial banks in the United States can be found at the website of the Federal Deposit Insurance Corporation (FDIC).[2]. According to the FDIC, there were 8,430 FDIC-insured commercial banks in the United States as of August 22, 2008. Every member of the Federal Reserve System is listed here along with non-members who are also insured by the FDIC. This list does not include banks and investments that are not FDIC-insured.

50 largest banks / bank holding companies in the United States

Associated  BancWest  Bank of America  Bank of New York Mellon  BBVA USA  BB&T  BOK Financial Corporation  Capital One  Citigroup  Citizens Financial Group  City National  Colonial  Comerica  Commerce Bancshares  FBOP  Fifth Third  First BanCorp  First Citizens  First Horizon National  First National of Nebraska  Fulton  Harris  HSBC Bank USA  Huntington  JPMorgan Chase  Key  M&T  Marshall & Ilsley  National City  New York Community  New York Private  Northern Trust  PNC  Popular  RBC Bank  Regions  South Financial Group  State Street  SunTrust  Synovus  Taunus  TCF  TD Banknorth  U.S. Bancorp  UnionBanCal  W Holding  Wachovia  Webster  Wells Fargo  Zions



Lenders mortgage insurance

Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.[1] Typical rates are $55/mo. per $100,000 financed[2], or as high as $1,500/yr. for a typical $200,000 loan[3].