Delinquent Prime Mortgage Cure Rate 6.6%, down from 45%

What is a cure rate? It's the percentage of loans where people who have fallen behind in their payments manage to make up the difference and get back up to date and in good standing.

From the Fitch press release:

While the number of U.S. prime RMBS loans rolling into a delinquency status has recently slowed, this improvement is being overwhelmed by the dramatic decrease in delinquency cure rates that has occurred since 2006, according to Fitch Ratings. An increasing number of borrowers who are 'underwater' on their mortgages appear to be driving this trend, as Fitch has also observed.

Unhappy Housing - Mortgage Metrics Report Released

The OCC & OTC have issued a report on mortgages. These are some astounding numbers on just how many homeowners are in big trouble:

The report, based on data from loan servicing companies that manage 64 percent of all first-lien U.S. mortgages, shows:

  • The number of loan modifications significantly increased. During the quarter, servicers implemented 185,156 new loan modifications, up 55 percent from the previous quarter and 172 percent from the first quarter of 2008.

12% of all mortgages behind in payments - what is behind these numbers?

By now you all saw the headlines, 12 pct. are behind on mortgage or in foreclosure, but what is behind these numbers?

Firstly the foreclosures are expected to reach an all time high next year.

Now people cannot pay their mortgage simply because they lost their jobs, businesses and income.

Some facts:

The New York Times Foreclosure map (05-25-09):

foreclosure map

Ability for Bankruptcy Judges to Modify Mortgages Defeated in the Senate

The Senate just voted down an amendment to allow bankruptcy judges to modify home mortgages in bankruptcy.

The U.S. Senate rejected a measure that would let bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure, a victory for banks and credit unions that said the legislation would increase loan costs.

Almost Half of All Subprime ARM Loans are Past Due

The Mortgage Bankers Association released Delinquency data today and almost half of all subprime loans, in the United States are now past due.

Subprime ARM loans and prime ARM loans, which include Alt-A and pay option ARMs, continue to dominate the delinquency numbers. Nationwide, 48 percent of subprime ARMs were at least one payment past due and in Florida over 60 percent of subprime ARMs were at least one payment past due.

The overall delinquency rate is 7.88% by the end of Q4, 2008. This breaks the record of their delinquency data going back to 1972.

If one includes the number of mortgages with one payment behind the percentages hit 11.93%.

Fannie Freddie New Mortgage Restructuring Plan

Some details on the Freddie Mac/Fannie Mae restructuring plans:

Under the proposal, mortgage servicers will work with borrowers to reduce monthly payments to 38 percent of their gross income, a threshold of affordability, by lowering the principal, reducing interest rates and extending the length of the loan term. The plan doesn't include money from the Treasury's $700 billion bank rescue and isn't mandatory for companies that received federal aid.

Conditions and Fees

Homeowners that qualify will receive notices about the program. Their loan modifications won't become final until they have made three consecutive payments, and there is no limit to the number of times a loan can be modified. The new payment will include all of the borrower's monthly housing costs, such as taxes and condominium payments.

$800 Billion Additional Dollars - RTC 2.0 - Shock and Awe

The original title just 24 hours ago was below. Now this price tag is $800 billion dollars.

$500 Billion Additional Dollars - RTC 2.0 - Shock and Awe

Bloomberg has well basically no details except they are negotiating that some of that money should go to the taxpayer. The taxpayer, just some???? We're paying for it assholes therefore it's ALL ours!

Negotiate? Unbelievable. This is in addition to the $900 billion dollars of the other bail out tally.

FDIC Restructures IndyMac Mortgages - Homeowners finally catch a break?

This looks like some sane and welcome news. Appears FDIC is going to restructure mortgages, lowering interest and payments for people who have housing financing at the failed IndyMac.

The FDIC suspended foreclosures originating from IndyMac and they are managing $15B of mortages.

Bloomberg: FDIC Modifies Mortgages for Some at IndyMac:

The FDIC, which is running IndyMac while seeking a buyer, may also extend repayment terms or base payments on reduced principal to help borrowers, FDIC Chairman Sheila Bair said today in a conference call with reporters. The program might serve as a ``catalyst to promote more loan modifications for troubled borrowers throughout the country,'' Bair said.