• Pivotfarm
    04/18/2014 - 12:44
    Peering in from the outside or through the looking glass at what’s going down on the other side is always a distortion of reality. We sit here in the west looking at the development, the changes and...

Mortgage Bankers Association

Tyler Durden's picture

The Housing Recovery Myth In New York And New Jersey Ends With A Bang As Foreclosures Surge





It was about a year ago when we noted a core component of the US housing non-recovery: the time to sell foreclosed homes had just hit a record of 400 days across the nation. Fast forward to today when even the last traces of the lie that sustained the housing recovery myth are being swept away, and we get the following article from Bloomberg titled "Foreclosures Surging in New York-New Jersey Market."  The good news (according to some): thousands of people could live mortgage free for years until the bank delays obtaining the keys to the foreclosed property. This was money which instead of going to the mortgage owner, would instead go to buy Made in China trinkets and gizmos and otherwise keep the US retail party humming. Which brings us to the bad news: the party - retail and otherwise - is ending, as courts and banks finally catch up with inventory levels on both sides of the foreclosure pipeline, and those who lived for years without spending a dollar for the roof above their head are suddenly forced to move out and allocated the major portion of their disposable income toward rent.

 


Tyler Durden's picture

Citi Warns "Housing Sentiment Got Carried Away"





The divergence between the NAHB index and other housing indicators has continued to suggest that sentiment was “getting ahead of itself" and as Citi's Tom Fitzpatrick warns would suggest that the qualitative nature of the overall housing recovery is less robust than one would like.  Housing should pause/consolidate possibly even for most of this year as the weather argument that is trotted out by so many commentators does not seem to hold up to even a basic examination with the worst data coming from the West Coast. Simply put, Citi warns, we think housing sentiment got carried away as it did into 1994 and 1998 post the housing/savings and loan crisis of 1989-1991.

 


testosteronepit's picture

Housing Bubble II: What’s Ruining Home Sales? Not The Weather!





Not a word about soaring prices and higher rates that have pushed median-priced homes beyond the reach of hardworking Americans

 


Tyler Durden's picture

The Crisis Circle Is Complete: Wells Fargo Returns To Subprime





Those of our readers focused on the state of the housing market will undoubtedly remember this chart we compiled using the data from the largest mortgage originator in the US, Wells Fargo. In case there is some confusion, as a result of rising interet rates (meaning the Fed is stuck in its attempts to push rates higher), the inability of the US consumer to purchase houses at artificially investor-inflated levels (meaning housing is now merely a hot potato flipfest between institutional investors A and B), and the end of the fourth dead-cat bounce in housing (meaning, well, self-explanatory), the bank's primary business line - offering mortgages - is cratering. So what is a bank with a limited target audience for its primary product to do? Why expand the audience of course. And in a move that is very much overdue considering all the other deranged aspects of the centrally-planned New Normal, in which all the mistakes of the last credit bubble are being repeated one after another, Reuters now reports that the California bank "is tiptoeing back into subprime home loans again."

 


testosteronepit's picture

The Multi-Pronged Mortgage Debacle Next Year (So Long, “Housing Recovery”)





First hint of what happens when the heavily subsidized industry is being encouraged to try to stand on its own wobbly feet.

 


rcwhalen's picture

Mortgage Market Slump: Is it Interest Rates or Jobs and Consumer Income?





Investors need to stop listening to the happy talk coming from the economists, and start focusing on what banks and other lenders are saying and doing operationally to adjust for the mortgage market of 2014 and beyond.  

 


Tyler Durden's picture

Frontrunning: September 12





  • Syrian Rebels Hurt by Delay (WSJ), U.S. seeks quick proof Syria ready to abandon chemical weapons (Reuters)
  • Lavrov Brings Acerbic Pragmatism to Syria Meet With Kerry (BBG)
  • Five years after Lehman, risk moves into the shadows (Reuters)
  • U.S. shares raw intelligence data with Israel, leaked document shows  (LA Times)
  • Japan to raise sales tax, launch $50 bln stimulus (AFP) - so 1) lower debt by sales tax, then 2) raise debt through stimulus.
  • Blackstone’s Hilton Files for $1.25 Billion U.S. Initial Offer (BBG)
  • Second Life Bankers Thrive in Dubai as Boutiques Boost Fees (BBG)
  • Brussels probes multinationals’ tax deals (FT)
  • Wall Street's Top Cop: SEC Tries to Rebuild Its Reputation (WSJ) ... and fails
  • Tablet sales set to overtake PCs (FT)
  • The end of angst? Prosperous Germans in no mood for change (Reuters)
 


Tyler Durden's picture

Up In ARMs: Adjustable Rate Mortgage Applications Soar To 2008 Pre-Lehman Mania Levels





"In the last week of June, the dollar value represented by ARM applications accounted for 16 percent of mortgage requests, the highest share since July 2008, two months before Lehman Brothers Holdings Inc. collapsed, according to Mortgage Bankers Association in Washington." Oops.

 


Tyler Durden's picture

Guest Post: The Wealth Effect Shifts Into Reverse





And so the wealth effect shifts into reverse. Fewer people can afford mortgages, so home prices stop rising, making homeowners feel less rich. Stock prices stop rising (or, like today, start going down) and the record number of people who have been buying on margin see their exciting gains melt away. They feel both less rich and suddenly very stupid. Most of them will spend less, and the recovery will stop in its tracks. Which means it’s time to think about the next big announcement...

 

 


CapStruc's picture

Are Businesspeople Really Fooled?





What if the businesses were fully aware that interest rates were being manipulated? What if they knew exactly how and why this was happening? Would they still misallocate their investments?

 


4closureFraud's picture

Fraudclosure Fail | ROMAN PINO vs THE BANK OF NEW YORK – Florida Supreme Court: We Can't Stop the Fraud





There are no ramifications if you get caught defrauding the court. Just take a voluntary dismissal and start over. We now have a court system, an entire judicial system, that supports fraud...

 


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