Tuesday, August 24, 2010

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

The cost of private origination and securitization justifies government involvement in the housing market, according to PIMCO bond-fund guru Bill Gross.

In his monthly investment outlook, Gross said 95% of existing mortgages written over the past 12 months were government guaranteed because the private market contracted so much, reiterating what he said last week at the Treasury Department’s housing-finance summit in Washington.

Gross' answer to the housing collapse recognizes "the necessity, not the desirability, of using government involvement," including rolling FNMA, FHLMC, and other housing agencies into one giant agency and guaranteeing a majority of existing and future originations" Gross said.

Gross said the private/public nature of Fannie Mae and Freddie Mac ultimately led to their demise because that structure “incentivized executives and stockholders to go for broke with the implicit understanding that Uncle Sam would be there as a backstop should anything go wrong.”

Gross believes origination points and private insurance fee would instantly disappear, if the housing market continues to be government dominated. In his proposal for what to do with the GSEs, he claims taxpayers would be protected through tight regulation, adequate down payments, and an insurance fund bolstered by a fee of 50 to 75 basis points attached to all mortgages.

"If you eliminated the private incentive and provided a tighter regulatory watchdog, we would have no more ‘liar loans’ or ‘no docs’ and a much sounder foundation for future homeowners and investors," Gross said. "The private market, to my mind, had really lost its claim as the most efficient and judicious arbiter in this particular case. Markets and private incentives without proper guardrails were as threatening to a sound economy in the 21st century as too much regulation and government ownership proved to be in the 1970s."

by JASON PHILYAW HousingWire August 24, 2010


PIMCO's Gross Sees Government Backing of Mortgages Undesirable but Necessary « HousingWire

Sunday, August 22, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Market Recap - Week Ending August 20, 2010

The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

Next week's economic data will begin with housing market reports. Existing Home Sales will be released on Tuesday. New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic growth, will also be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Friday, along with Consumer Sentiment. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Market Recap - Week Ending August 20, 2010

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Inside the 'Glass Pavilion' - Yahoo! Real Estate

Glass Pavilion

Known for his modern designs, Los Angeles- based architect Steve Hermann finished his latest project in Montecito, Calif., about four months ago.

Glass Pavilion

Mr. Hermann considers the home, called the Glass Pavilion, his “opus.”

When he builds in the Hollywood Hills or Beverly Hills, Mr. Herman says he is usually restricted to a small lot.

This lot measures about three-and-a-half acres and gave him the space he needed to create a home featuring walls of glass.

Slide Show: Inside the 'Glass Pavilion' Inside the 'Glass Pavilion'

Glass Pavilion

"Here I have complete privacy," Mr. Herman says.

"It allows you to be one with nature inside the house."

The 13,875-square-foot home features five bedrooms, five-and-a-half bathrooms, a kitchen with a wine room and an art gallery that displays the architect’s vintage car collection.

Glass Pavilion

Mr. Hermann, who has a passion for mid-century modern furnishings, also designed some of the home's furniture, including the benches in the hallway.

He originally built the home for himself, but while the six-year project was underway, he says, his plans changed.

Among those changes, he notes, was the birth of his daughter, now 10 months old.

Glass Pavilion

Mr. Hermann says he will likely rent another home for awhile before embarking on another project for himself.

The home is now listed for $35 million, and the furnishings are negotiable. Suzanne Perkins of Sotheby's International Realty has the listing.

Click here to see more photos of the "Glass Pavilion"


By Sushil Cheema, photos by William MacCollum and Jim Bartsch, WSJ.com August 18, 2010


Inside the 'Glass Pavilion' - Yahoo! Real Estate

Friday, August 20, 2010

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Valley mortgage delinquencies drop

Valley homeowners are doing a better job keeping up with their mortgage payments, according to a new reading of credit-bureau data.

For the second straight quarter, Phoenix-area mortgage delinquencies dipped in the April to June period, reported TransUnion.

As of midyear, 12.3 percent of Valley homeowners were 60 days or more late on payments, down from 12.71 percent in the first quarter and a cyclical peak late last year of 13.16 percent.

Delinquencies also have eased nationally, with 6.67 percent of borrowers two months or more past due in the second quarter, down from 6.77 percent in the first quarter and 6.89 percent late last year.

"We do think we're seeing a trend of improvement," said FJ Guarrera, a vice president in TransUnion's financial-services group.

Some of the most cash-strapped borrowers already have been forced out of their homes, but those who remain are doing a better job saving money, spending less and managing payments, he said.

The TransUnion mortgage study, based on a sampling of thousands of credit reports, coincides with a couple of other promising local statistics.

For example, Valley bankruptcy filings have declined for the past four months.

Also, Arizona's jobless rate has stabilized in the 9.5 percent to 9.6 percent range this year after climbing sharply over the past 2 1/2 years.

Home values and employment are two of the biggest factors influencing mortgage delinquencies, Guarrera said.

Still, the Valley's mortgage-delinquency ratio ranks as the 22nd highest of more than 360 metro areas examined.

by Russ Wiles The Arizona Republic Aug. 20, 2010 12:00 AM




Valley mortgage delinquencies drop

Thursday, August 19, 2010

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

Low mortgage rates out of reach for most Arizonans

Mortgage rates have fallen to unprecedented lows this year, but local analysts said only a fraction of Arizona consumers meet the financial requirements to take advantage of them. Even fewer prospective borrowers have the sort of financial pedigree that would earn them today's lowest advertised rates, they said.

The lowest available rate for a conventional, 30-year fixed-rate mortgage in Arizona was less than 4 percent on Wednesday, according to online lender exchange LendingTree.com.

Also on Wednesday, the Mortgage Bankers Association reported that the national average rate for a 30-year fixed loan was 4.6 percent, and the latest available data on Federal Housing Administration loans indicates an annual rate just above 5.2 percent.

In all cases, today's mortgage rates are the lowest in years, offering a huge financial incentive to buy a home or refinance an existing mortgage.

The only challenge is meeting lenders' underwriting standards.

It's a challenge most Arizona consumers are not able to meet, said Paul Klimke, president-elect of the Arizona Association of Mortgage Professionals.

Klimke said that underwriting standards aren't any tougher today than they were 15 years ago but that the financial climate has changed dramatically.

"The tough economy has pushed people's financial history and financial stability to the point where they don't qualify," said Klimke, who is also branch manager at AmeriFirst Financial Inc. in Mesa.

For an FHA loan, the easiest mortgage loan for which to qualify, a buyer must have enough cash for a down payment of 3.5 percent of the home's purchase price.

The minimum down payment for a conventional loan, the kind guaranteed by government-sponsored guarantors Fannie Mae and Freddie Mac, is at least 5 percent.

The vast majority of today's loan applications are for FHA loans, said Tina L. Rose, branch manager of Allied Home Mortgage in Phoenix.

While the FHA does not technically have a minimum credit-score requirement, she said, most lenders will not underwrite an FHA loan unless the borrower's credit score is at least 620.

"You still have to satisfy the lender," said Rose, who is also vice president of the Arizona Association of Mortgage Professionals.

To get loan terms akin to the 4 percent rate touted by LendingTree.com, Klimke said, the borrower most likely would need a credit score of at least 720 and would have to put 20 percent down on the home purchase.

Other general requirements for all mortgage loans include having enough money left in the bank to cover mortgage payments for two months, no credit-card payments more than 30 days late within the past two years, and no home foreclosure, deed in lieu of foreclosure or short sale within the past three years, Klimke said.

While such requirements existed on paper even throughout the housing boom, Klimke said lenders have stopped ignoring them and are now allowing no exceptions.

"Banks are holding (applicants) to the letter of that standard," he said.

by J. Craig Anderson - Aug. 19, 2010 12:00 AM



Low mortgage rates out of reach for most Arizonans

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