The Forgotten GSE: Fannie Mae Backs 1 out of Every 4 U.S. Residential Mortgages. Default Rates Have Tripled Since Last Year.
The two enormous government sponsored entities Fannie Mae and Freddie Mac have garnered little attention since their government take over late in 2008. Fannie Mae was placed into conservatorship on September 6, 2008 when it was brought under the Federal Housing Finance Agency (FHFA). But the losses keep mounting. In the second quarter Fannie Mae [...]
Option ARM Silent Bomb: $189 Billion in Outstanding Option ARMs with $134 Billion Recasting in 2 Years. 94 Percent of Borrowers Made Minimum Payment.
There is devastating news out this week regarding option ARM loans. Option ARMs are a unique kind of mortgage since they offered borrowers a variety of methods to pay their monthly mortgage. The problem with the data coming out this week is that 94 percent of borrowers elected to go with the most financially destructive [...]
How Much California Inventory? 3.9 Months from Public Data. A drop from 6 Months at the Start of the year and down from 16 Months Reached in Early 2008. Yet Distress Properties are still a Big Part of the Market.
According to recent data from the California Association of Realtors, there is only 3.9 months of unsold inventory on the market. This is actually low. For many that don’t follow the housing market a healthy amount of inventory hovers around 5 to 6 months. 3.9 months is well below that. In early 2008 when few [...]