Archive of posts tagged losses

Valuations and Sales Discounts Eat Away at Foreclosure Proceeds

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Low property valuations and steep sales discounts reduce the proceeds from liquidated loans by almost a third, according to Moody’s Investors Service. As home prices drop, equity erosion drives most of the losses incurred on defaulted mortgage loans, but the analysts at Moody’s say in today’s environment that’s not the whole story. They maintain that …

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Fannie Mae & Freddie Mac to close down?

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Home Runs? Government announces plans to “wind down” Fannie Mae and Freddie Mac Responding to financial losses and market distortions caused by mortgage giants Fannie Mae and Freddie Mac, the Obama administration sent Congress a plan to “wind down” the two government-owned secondary lenders over several years, “shrink the government’s footprint in housing finance, and …

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Household Wealth Increases

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According to the Federal Reserve in a DSNews.com article, the average American’s financial situation has improved. And that means good news for the mortgage market, which has been stressed by the recently increasing number of borrowers who have had trouble paying their mortgages because of deteriorating personal finances. During the third quarter (from July to …

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Lenders may closely monitor borrowers for life of a loan

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In a kind of crisis intervention, IndiSoft is working on computer programs that track borrower behavior so that if a life-changing event occurs, steps can be taken to ensure timely payments are made. The day is coming when lenders will no longer turn their clients loose after they leave the closing table, never to be …

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