In past DealWire's, we've talked quite a bit about the meltdown, and when the culmination of everything would eventually hit rock bottom and start to trend back up. My stance has always been that no one really knows the answer. Well, it appears as though this week some of the industry experts are shedding some light (at least their opinion) on when we can expect the market as a whole to rebound.
At the Mortgage Bankers Association's annual convention, officials from Fannie Mae and Freddie Mac as well as CEO's from two major mortgage banks, collectively agreed that "no price recovery is likely until at least 2009." The prediction, longer then I expected, was based on the rapidly increasing foreclosures and the growing inventory of unsold homes on the market. And while things seem bad now, the problem is only going to get worse as an estimated 2.5 million mortgages will reset at higher rates at the end of 2008.
So maybe they're right? If so, it will be interesting to see the legislation that is created and passed in the coming months and years to help offset this extended recovery prediction. I think it's safe to say we can't count on the government to do anything in a timely manner, so it's up to us to stay diligent. The good news is that over the next three to four years, people are still going to need help getting into new homes and finding viable solutions to stay in their existing homes. It's our job to help them any way we can, so stay the course.
P.S. I know that you're busy and can't read all of the DealWires, so I wanted to make sure you knew about our year end customer appreciation special. If you haven't heard about the special, please give me a call so I can walk you through the details.
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RedSofts |
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| People try to self sell their homes to avoid the cost of a real estate agent. But when they come across people who put offers blindly and get stuck with low standard offers they go in search of a loan officer. As normal people are usually unaware of the mortgage lending standards, you as a loan officer can benefit a lot from being in the scene.
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CNNMoney |
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| If your credit is weak or your savings anemic, here are two phrases you're likely to hear from mortgage loan officers in the next few years: FHA and mortgage insurance.
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NewYorkTimes |
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| Two months ago, when credit markets around the world were freezing up in panic over failed mortgages, Treasury Secretary Henry M. Paulson Jr. said that he was confident investors would work things out for themselves.
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InternationalHeraldTribune |
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| U.S. housing prices will continue to decline at least through the end of next year and may not begin creeping upward again until 2010, executives from the biggest mortgage financiers said Monday.
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CNNMoney |
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| It's getting hard to wrap your brain around subprime mortgages, Wall Street's fancy name for junk home loans. There's so much subprime stuff floating around - more than $1.5 trillion of loans, maybe $200 billion of losses, thousands of families facing foreclosure, umpteen politicians yapping - that it's like the federal budget: It's just too big to be understandable.
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Bloomberg |
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| Bank of America Corp., JPMorgan Chase & Co. and Wachovia Corp. may post their first profit declines since 2005, as more than $3.4 billion of writedowns and loan losses dragged third-quarter profits lower.
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SignoOnSanDiego |
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| The new owner of Accredited Home Lenders yesterday gave the ailing subprime mortgage outfit a $100 million influx of working capital that will allow the San Diego company to resume making mortgage loans next week.
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TriangleBusinessJournal |
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| Bank of America and several other financial institutions have agreed to launch a fund in an effort to boost the market for mortgage-backed securities and similar investments.
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AJC |
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| Foreclosure actions for metro Atlanta hit an all-time high this month, with 6,809 properties in 13 counties threatened with public auction in November.
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AustinBusinessJournal |
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| Texas Attorney General Greg Abbott proposed a series of foreclosure prevention measures to three mortgage lending and loan servicing companies.
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iBerkshires |
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| The House plans to vote this week on anti-foreclosure legislation that would require 20,000 non-bank loan originators to receive state licenses, give $3 million to state regulators for broader monitoring of mortgage lending, and encourage lenders to shift adjustable rate mortgages to fixed rates.
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DailyHerald |
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| U.S. Rep. Melissa Bean said Monday she and officials in Lake County are working together to promote legislation and educational programs to help at-risk families avoid foreclosures.
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NewYorkTimes |
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| The first report of a stolen identity and of the opening of a bogus charge account at Home Depot in the victim’s name came from a Queens resident, according to the police. Within a week, five more people complained that they, too, had been victimized.
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NewsDay |
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| Two mortgage company employees were arrested yesterday for their role in a multimillion-dollar mortgage and identity theft scam in Queens and Long Island, police sources said.
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