14 Comments

1. 

   Jim the Realtor on February 5, 2011 at 10:32 am

   The Fannie/Freddie update (thanks JimG!)

   The U.S. Treasury Department is expected to announce an overhaul of Fannie Mae and Freddie Mac next week that will call for a significant reduction of their share of the U.S. mortgage market, CNBC has learned.

   Sources tell CNBC that major elements of the Treasury plan include a call for an increase in the cost of government-backed mortgage insurance, essentially a hike in the fees charged to borrowers. Treasury is also expected to endorse a reduction of the government’s share of the mortgage market, to less than 50 percent from the current 95 percent.

   In addition, Treasury is expected to propose reducing the maximum size for mortgages guaranteed by the government, to $625,500 from the current $730,000. The limit was temporarily raised in September.

   Sources cautioned, however, that changes to the plan could yet be made in the week before its release.

   The long-awaited plan to restructure the two agencies, taken over by the government amid the financial crisis of 2008, was required as part of the Dodd-Frank reform bill passed last year.

   http://www.cnbc.com/id/41429486

2. 

   FreedomCM on February 5, 2011 at 1:42 pm

   I’m not holding my breath for the drop of the top loan. I thought that it would drop off the 730 mark last year but the REIC managed to lobby enough to keep it high.

3. 

   tj & the bear on February 5, 2011 at 2:23 pm

   It shouldn’t even be $625.5K (although it’s a start).

   National median & average prices are back to 2004 levels, therefore the conforming limit for SFR’s should be same as 2004 too: $500.55K in high cost areas ($333.7K elsewhere).

   Imagine what effect that would have.

4. 

   Daniel on February 5, 2011 at 4:40 pm

   Here is one for you at ONLY 1.399K. And check the comments about “remoteness”. Amazing, simply amazing.

5. 

   Daniel on February 5, 2011 at 4:41 pm

   Forgot the link, I was laughing too much.
   http://www.youtube.com/watch?v=30tly2YFB48&feature=player_embedded

6. 

   Art Eclectic on February 5, 2011 at 5:26 pm

   I agree with TJ, it is absolutely inexcusable for the govt to be guaranteeing loans of that size.

7. 

   Tgrady on February 5, 2011 at 6:46 pm

   Thanks for the sunset jim…it was another cold one in Boston today.

8. 

   Jim the Realtor on February 5, 2011 at 8:20 pm

   Thanks to SM for sending this along, from Yahoo Finance:

   NEW YORK (AP) — Bank of America Corp. on Thursday said it is splitting its mortgage business into two units, with a new division created specifically to handle foreclosures and discontinued loan products.

   The bank said the new Legacy Asset Servicing unit will be responsible for resolving issues involving faulty paperwork that led Bank of America to suspend foreclosures in all 50 states in October. After reviewing procedures, it resumed the actions nationwide in December.

   The legacy unit will also handle mortgage modifications and buyback claims on bad home loans sold to investors. It will be led by Terry Laughlin, who joined Bank of America in July 2010 as an executive in its mortgage unit handling credit loss mitigation strategies.

   The move is the latest in a series of management shifts since Brian Moynihan took over as CEO in January 2010.

   Bank of America Home Loans lost $8.92 billion (flesh wound…) in 2010, according to the bank’s year-end financial report, largely due to the toxic loans it acquired when it bought Countrywide Financial Corp. in 2008.

9. 

   Jim the Realtor on February 5, 2011 at 8:25 pm

   what are you going to do, bleed on me?

   http://www.youtube.com/watch?v=zKhEw7nD9C4

10. 

    Kathy on February 6, 2011 at 6:57 am

    JIM:
    (1) Is there somewhere where we (average mortals) can see foreclosure data real-time for free, or is it only available via a service you pay for?
    (2) What kind of buyer can purchase these homes? Must you be non-contingent? All cash and if not, what % cash?
    Thanks for all of your great info!
    Kathy

11. 

    Ohio Dave J on February 6, 2011 at 8:14 am

    Jim,

    Thank you for the sunset. That is the only vitamin D I’m probably going to get. As I was watching the sunset, my computer sreen is in front of the window…….looking out at a 28 degree, cloudy and snow-ice-snowy day. Love the sun and blue sky. Why am I still in OHIO?

12. 

    InExile on February 6, 2011 at 10:23 am

    watching from vt, zero would be warm.

13. 

    JimG on February 6, 2011 at 8:22 pm

    If they do drop the limit to 625K then all sellers will take a hit IMO, even sacred CV can’t avoid that one. RE does not operate in a vacuum, that slack has to be taken up.

14. 

    Sean on February 7, 2011 at 8:49 am

    Pull the trigger lenders! Short sale? No. Kaboom! Loan mod? No. Kaboom! Start bringin down the hammer until it sounds like a machine gun, baby. Now THAT would be music to my ears.