“Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place—such as additional assistance on refinancing and helping unemployed homeowners stay in their homes—and ensuring that help is available to homeowners as soon as possible.”

“HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis,” said acting Assistant Secretary for Financial Stability Tim Massad. “Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.”

The October Housing Scorecard features key data on the health of the housing market including:

-Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low interest rates have helped more than 7.1 million homeowners refinance, resulting in more stable home prices and .7 billion in total borrower savings.

-As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added billion in home equity in the second quarter.

-More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010—nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million).

-At nine months, almost 90% of homeowners remain in their permanent HAMP modification, with 11% defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16% of permanent modifications are 60+ days delinquent.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

For more information, visit www.hud.gov.

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“Over the last 17 months, the Obama Administration has taken comprehensive action to keep interest rates at record lows, provide incentives to responsible home buyers, and help millions of families stay in their homes,” said HUD Assistant Secretary Raphael Bostic. “But we’re certainly not going to stop fighting to turn things around. That’s why we are focusing on successfully implementing the programs we have put in place, such as additional assistance on refinancing and helping unemployed homeowners stay in their homes, and will continue to monitor the market closely in case more is needed.”

“We’ve been steadily enhancing our programs to help struggling homeowners avoid foreclosure,” said Treasury Assistant Secretary for Financial Stability Herb Allison. “We understand that the foreclosure crisis can be highly localized and some regions have seen severe home price declines and faced severe unemployment. As a result, we have announced more than billion for states hit hardest by this crisis. Our goal is to help build a sustainable, long-term housing recovery. As part of that effort, we have delivered critical support to struggling homeowners while the market continues to heal.”

The September Housing Scorecard features key data on the health of the housing market including:

-Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and .7 billion in total borrower savings.

-Existing and new home sales shifted downward in July, though stabilizing housing prices drove improving expectations in some regions. As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales showed a dip in July. At the same time, home prices have leveled off in the past year after 30 straight months of decline and homeowners added billion in home equity in the second quarter.

-More than twice as many modification arrangements have begun compared to foreclosure completions. More than 3.35 million modification arrangements were started between April 2009 and the end of July 2010. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.6 million proprietary modifications under HOPE Now. The number of agreements offered continued to more than double foreclosure completions for the same period (1.24 million).

-More than 468,000 permanent modifications granted to homeowners; more than 33,000 homeowners received a HAMP permanent modification in August. In addition, servicers continue to work aggressively through their backlog of pending modifications, which is expected to decline in coming months. Homeowners in permanent HAMP modifications have a median monthly payment reduction of 36%, or more than 0 per month. Homeowners in permanent modifications saw their median first-lien housing expenses fall from nearly 45% of their monthly household income to 31%.

For more information, visit www.hud.gov.

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“While there has been some stabilization in the housing market, it remains clear that we have more work ahead,” said HUD Assistant Secretary Raphael Bostic. “Through the Obama Administration’s efforts over the past 16 months, we have seen increased price stabilization and improved home affordability for prospective, qualified homebuyers. At the same time, we know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation’s hardest hit neighborhoods.”

The August Housing Scorecard features key data on the health of the housing market including:

• Stabilizing housing prices drive improving expectations in some regions. After 30 straight months of decline, home prices have leveled off in the past year; futures indices have shifted upward since January 2009 as signs of recovery continue, although overall housing outlook measures remain mixed.

• More than twice as many modification arrangements begun compared to foreclosure completions. More than 3.15 million modification arrangements were done from April 2009 through the end of June 2010. This includes more than 1.3 million trial Home Affordable Modification Program (HAMP) modifications started, over 472,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and 1.4 million proprietary modifications under HOPE Now. The number of agreements offered continues to more than double foreclosure completions for the same period (1.24 million).

• More than 4.2 million families have benefited from housing counseling since April 2009. Working with a HUD-approved housing counselor can help borrowers manage debts apart from a mortgage – car payments, credit cards and personal loans, for example – and help them avoid falling into default.

• More than 37,000 homeowners received a HAMP permanent modification in July. While the pace of program entry has slowed due to upfront documentation requirements in place since June 1, this policy change streamlines the process to help more eligible homeowners convert to a permanent modification. Homeowners in permanent modifications are experiencing a median payment reduction of 36 percent, or more than 0 per month.

“HAMP, which represents just one, targeted piece of the Administration’s larger efforts on housing, has so far offered more than a million and half responsible homeowners the chance to modify their mortgages. This program has helped to stabilize a housing market that remains fragile and has redefined the modification standard for the industry – both of which are delivering real benefits to struggling homeowners in communities across the country,” said Treasury Assistant Secretary for Financial Stability Herb Allison. “Currently servicers are working through their pending modifications, and while Making Home Affordable works for a number of homeowners, many others are offered other means of avoiding foreclosure. As careful stewards of the scarce resources of the American taxpayer, we see this as prudent progress – and we will keep working to help the Americans hardest hit by this crisis.”

Data in the scorecard show that the recovery in the housing market continues to remain fragile, with some measures suggesting recovery will take place over time. For example, foreclosure starts went up slightly in July from the previous month, but remain well below July 2009 levels.

Foreclosure completions also inched upward as the volume of serious delinquencies continues to work through the pipeline.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration’s unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

The Obama Administration’s complete Housing Scorecard available at: www.hud.gov/scorecard

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

“Passing this bill was no easy task. To get there, we had to overcome the furious lobbying of an array of powerful interest groups and a partisan minority determined to block change,” Obama said in a pre-signing speech, surrounded by cheering congressional leaders and administration members.

Alternating between hitting Wall Street and acknowledging its economic importance, the president said that the historic Restoring American Financial Stability Act of 2010 seeks to strike a balance that would protect consumers while allowing the vital financial sector to prosper.

“The fact is the financial industry is central to our nation’s ability to grow, to prosper, to compete and to innovate. This reform will foster innovation, not hamper it. It is designed to make sure everybody follows the same set of rules,” he said. “Unless your business model depends on cutting corners or bilking customers, you’ve got nothing to fear from reform.”

The signing marked the third major legislative accomplishment for Obama, after an 0 billion stimulus and tax-cut package and a regulatory revamp of the health care sector. Still, the president has slumped in the opinion polls, dragged down by a sluggish economy. Polls also suggest that the broader public is ambivalent about the new measure.

To combat that, Obama and congressional Democrats went to extremes to highlight all the consumer provisions in the legislation. There are numerous measures to combat predatory lending, and the president invited borrower Robin Fox of Rome, Ga., to the speech. She’d been hit with unexpected interest rate increases on a credit card balance. “With this law, unfair rate hikes, like the one that hit Robin, will end for good,” Obama said.

Underscoring the historic nature of the legislation, which updates many rules that date to the 1930s, the televised signing ceremony wasn’t at the White House but at the Ronald Reagan Building, in a large auditorium where about 400 invited guests could bask in the accomplishment.

The legislation seeks to fix much of what went wrong in the lead-up to the nation’s deep financial crisis. It gives regulators the power to dissolve large, interconnected financial institutions and allows the Federal Reserve to break up companies that it thinks are so large that their failure would pose a risk to the U.S. and global economy.

The lack of this authority forced the Bush administration and a Democratic-led Congress to choose unpopular bank bailouts over a disruptive bankruptcy process that Fed Chairman Ben Bernanke warned could have led to a global economic depression.

“The bill isn’t perfect, since it represents what was politically achievable in an election year. But it sets some important starting points for more detailed work in areas where oversight has been lacking, such as viewing risk from a systemic point of view and increased consumer protection,” said Scott McCleskey, the author of the new book When Free Markets Fail, which seeks to explain the crisis in layman’s terms. “In the end, though, the crisis made abundantly clear the fact that we need more regulation because the markets have become too complex to regulate themselves.”

For ordinary Americans, the legislation will be felt most directly through the creation of a new and independent Bureau of Consumer Financial Protection. It will police credit extended to consumers, be it mortgages, credit cards, student loans, auto loans or even payday loans.

“For the first time, families will have a tough, independent cop in Washington to help clear out the tricks and traps hidden in consumer credit agreements,” Elizabeth Warren, a Harvard University professor who’s credited with developing the idea of the bureau, said in a statement.

Gail Hillebrand, a senior attorney for the advocacy group Consumers Union, added that “millions of Americans have been hit by shady loans, hidden fees and surprise rate increases, and this Consumer Financial Protection Bureau will take dead aim at these kinds of problems.”

Business groups frowned on the new law. “This legislation, while drafted with the best intentions, paints the U.S. business community with a broad brush and will have many unintended consequences for the more than 12,000 nonfinancial publicly traded companies,” Larry Burton, the executive director of the Business Roundtable, said in a statement.

The U.S. Chamber of Commerce, which aggressively lobbied against the legislation, didn’t pull punches in its statement upon signing. “Such a broad, sweeping bill epitomizes a law with unintended consequences that creates more uncertainty for American businesses,” said Thomas J. Donohue, the chamber’s president and CEO. “For years the chamber has called for reform that modernizes our financial system. Yet this law is like adding new paint on an old car; it’s still not going to run at the pace and with the agility that is currently demanded.”

Regulators will sit together on a special council to collectively study risks to the broader financial system. They’ll be empowered to order that banks keep more capital on hand to guard against future losses, and they’ll have knowledge that they didn’t have before about the complex financial instruments called over-the-counter derivatives. The size of the market for these private bets between parties is valued in the trillions of dollars, yet these deals largely have been hidden from regulators.

Now, most trading in these complex instruments will be done on public exchanges or clearinghouses, and regulators will have the authority to limit a financial player’s overall holdings in contracts for oil, natural gas, wheat or other commodities if it appears that anyone is seizing so much of the market that prices could be manipulated.

“It gives us the transparency, tools and teeth we need to better regulate the markets we already oversee and to bring light to the more than 0 trillion over-the-counter markets which are currently unregulated,” said Bart Chilton, a commissioner on the Commodity Futures Trading Commission (CFTC). “Many key items will be decided in the near future: How do we actually oversee and regulate the OTC markets? How do we implement position limits? And how are we going to use some of these new professional-grade regulatory tools to police these markets? For example, CFTC has had only one successful manipulation prosecution in 35 years. The law was broken but the bill gives us new authority to go after disruptive trading practices.”

(c) 2010, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

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Have you seen the absolutely ridiculous tax that our fearless leader is going to be hitting real estate professionals and normal homeowners with in the very near future? If you are either, buying or selling homes in any fashion, this will apply to you! Listen in to this week’s Friday Coffee break as I cover this buried real estate tax that will affect you.
We also cover whether you can buy and sell a Fannie Mae backed bank owned property within 90 days, whether or not a short sale property needs to be listed when making an offer, whether or not you can withdraw a short sale offer after a BPO and if you use the same entity when doing so and more.

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