Tag Archives: Housing Affordability

A new federal task group set up to investigate residential mortgage-backed securities fraud made progress Friday when officials signed off on subpoenas for 11 undisclosed financial institutions. Numerous high-ranking federal officials joined New York Attorney General and co-chair Eric Schneiderman at a press conference to outline the Residential Mortgage-Backed Securities Working Group, which President Barack Obama announced he would form during his State of the Union address Thursday.

Interest rates for mortgage loans went up for the first time in several months this week but remain near historic lows. Finance Web site Bankrate.com and mortgage giant Freddie Mac reported modest increases for mortgage rates across the board. Freddie Mac found the 30-year fixed-rate mortgage rising from an all-time low of 3.88 percent last week to 3.98 percent this week, far below 4.80 percent seen for the loan at the same time last year. Bankrate.com posted a similar increase from 4.18 percent last week to 4.25 percent this week. Europe's debt crises have helped keep rates low.

New-home sales crawled to a seasonally adjusted annual rate of 307,000 in December despite modest signs of recovery. The Commerce Department said Thursady that new-home sales fell 2.2 percent below expectations from November, which held that homebuyers would pick up a seasonally adjusted 314,000 homes annually. New homes from last month carried a median sales price around $210,300, with the average sales price hovering around $266,000. Experts suggest contract failures, foreclosures, short sales, and tight credit helped slow sales.

President Barack Obama used his State of the Union address Wednesday to tout his accomplishments and propose several new housing ventures, including possible expansions to refinance programs, consumer financial protection, and new federal initiatives to combat abusive lending practices. The speech weighed in on risky lending practices in particular and went after Republicans for their opposition to his policies, including consumer financial protection. Experts remain on the sidelines about an expanded refinance program.

After falling to new lows last week, interest rates for 30-year fixed-rate mortgages climbed to 3.82 percent, real estate Web site Zillow said Tuesday. The Web site polled anonymous quotes from online users to release the latest Zillow Mortgage Marketplace, which it offers weekly. While the 30-year loan averaged 3.8 percent, the 15-year fixed-rate mortgage hovered around 3.12 percent. Mortgage rates have remained near all-time lows as investors continue to flee from European markets, which remain afflicted by concerns over their debt crises.

An awkward and slightly tense air greeted Consumer Financial Protection Bureau director Richard Cordray at his first congressional hearing Tuesday, where the new appointee cast his agency as one that would strive to reduce duplication and increase transparency. Although careful in their approach to the new director, Republican committee members frequently cited their concerns about federal overreach, the constitutionality of his recess appointment, and interests for transparency. The CFPB can now supervise nonbank financial entities.

Candidates for the Republican presidential nomination roundly criticized Freddie Mac Monday, taking swipes at rival and former House Speaker Newt Gingrich for services he rendered to the mortgage company as an independent contractor in 2006. Yesterday The Gingrich Group ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô founded by its namesake and currently doing business as the Center for Health Transformation ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô revealed that Freddie Mac paid Gingrich $25,000 in monthly fees for consulting services he rendered to the mortgage company as an independent contractor.

Ahead of the primary in South Carolina Saturday, Republican presidential hopefuls will compete for the chance for a face off with President Barack Obama ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a contest remarkably lacking in housing proposals for one that will take place in 15 battleground states with slipshod home values. The Progressive Policy Institute issued a policy brief Friday that said home values have fallen by 16 percent since October 2008, and that ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô despite a correspondingly steep drop in household wealth ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô few voters should expect candidates from either party to address housing finance reform in the election.

The Federal Housing Administration finalized a new rule Friday that makes it tougher to qualify for loans insured by the agency. To qualify for mortgage insurance, lenders must offer up evidence that their seriously delinquent and claim rates remain at or below 150 percent of aggregate rates in home states. The rule authorizes more extensive examination for lenders in order to ensure that they are able to meet the FHA├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós new qualifications. It requires that certain lenders indemnify HUD in claims over loans. The move arrives amid criticism that diminishing capital for the FHA may necessitate its bailout.

Existing-home sales climbed by 5 percent in December as more consumers felt the confidence needed to move forward with home purchases. The National Association of Realtors reported the figures Friday, showing that total existing-home sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô those sales in the process of closing ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô moved forward to 4.61 million in December, up from 4.39 million in November. The trade group said that existing-home sales arrived at 4.26 million, reflecting a 1.7 percent rise from 4.19 million last year. All-cash sales reflected about 31 percent of purchases in December, up from 28 percent in November.