Home prices are at their most affordable in many years, which has opened up homeownership to many who had been locked out during the housing boom. And now, the federal government -- and many states - are launching plans to hook up buyers of repossessed properties with very attractive terms.
The feds made nearly $6 billion available for the Neighborhood Stabilization Program, which intends to combat blight by reducing the number of foreclosed homes on the market.
The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.
"The NSP was designed to help deal with all the properties in foreclosure around the nation," said Antonio Reilly, executive director of the Wisconsin Housing and Economic Development Authority (WHEDA), which will administrate the program in several counties in the state. Respectively (I Guess)
The bulk of the NSP funds will come from the $3.92 billion that was approved as part of the Housing and Economic Recovery Act of 2008 passed in August.
By regulation, these funds must be spent in communities with the highest incidences of foreclosures and subprime loans. They'll go to helping households earning no more than 120% of the median income of the local area, with 25% of the money going to families earning less than half the median
So we have already identified the fact that lenders made loans available called:
SIVA, SISA, NINA. Why were those loans made? Because they didn't qualify for a loan that's why! My point is this, once again it seems like there's a lot of talk and
not enough action to stop the crisis to those that need it most. I promise you the
105% FHA Refinance product is worthless in markets where the loss is well over 50%
of the loan to value.
-Christopher Rockey
Tuesday, June 30, 2009
Friday, June 26, 2009
Tired of a Cold Market / Move to Seattle
I spent the first half of this week in LA and the second half in Seattle. While in Seattle I had the unique opportunity to speak to the Hispanic Chamber of Commerce on the subject of 'The Demand for market Stabilization and the importance of Short Sale vs. Foreclosure.' I am going to be honest I was really impressed with the speaker. Usually I get off track or rant on about a superfluous subject but for whatever reason in Seattle I just felt at peace. I did have one small hick-up that I need to apologize for. Often I forget the vast cultural and market differences between major market places outside of California. Yesterday at the Chamber although I fully announced that home owners should always seek a Loan Modification, I was more down on Loan Modification companies than up. One gentlemen really had to set me straight that there are in fact people of integrity and professional morals doing Loan Modifications. He is right, now if i was in California I would even say he was right! But here's the big problem:
The California Real Estate Commissioner, Jeff Davi, announced the issuance of a Consumer Alert by the California Department of Real Estate (DRE) warning consumers about loan modification scams and informing consumers of what they can do to protect themselves. If your not sure what Jeff davi looks like read my April article that's just before my camera got stolen in Las Vegas.
“With so many people struggling to stay in their homes, foreclosure rescue scams have risen dramatically,” DRE Commissioner Jeff Davi said. “The Consumer Alert will educate consumers and help homeowners avoid becoming victims to loan modification scams.”
With new state and federal programs, as well as new laws and regulations in place, more and more loans are being successfully modified to keep homeowners in their homes. Earlier this week, the California Department of Corporations released the results of its first quarter survey of mortgage servicers, which showed that there have been more modifications during the first three months of 2009 than there were at the same time last year. While it is welcome news that more Californians are remaining in their homes, it is also important for consumers to make sure they understand their options in regards to loan modifications. The Consumer Alert can be a valuable resource, especially since unscrupulous operators are looking to take advantage of vulnerable consumers.
Loan modification scams are worrisome and widespread. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October the DRE has filed over 200 Desist and Refrain Orders and Accusations involving loan modification scams and the list of offenders continues to grow. A list of the companies and persons the Department has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.
Enforcement efforts are not enough; consumer education is the key to preventing any further fraud. The Consumer Alert contains important information on how consumers can protect themselves against unscrupulous providers who collect advance fees promising financially stressed borrower’s relief, but instead, do little or nothing. The alert also provides information on where to report fraud and what resources may be available to victims of fraud to recover losses suffered at the hands of illegal or incompetent operators.
It is worth noting that not all firms who collect advance fees for loan modification services do so illegally. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with the Real Estate Law.
The Commissioner encourages all consumers to log on to DRE’s website at http://www.dre.ca.gov/mlb_adv_fees.html to check out any real estate broker wanting an up-front fee in exchange for loan modification help. Be aware, even real estate brokers with compliant advance fee agreements are prohibited from collecting advance fees for loan modification services involving a property against which a Notice of Default has been recorded.
No person is required to pay a third party for a loan modification. A consumer can simply call his or her lender or use the services of a nonprofit housing counselor. Commissioner Davi encourages consumers to visit the DRE’s website for information on loan modifications. “Log on, look ‘em up and check ‘em out” to ensure that a company wanting an advance fee is properly licensed and can legally collect an advance fee before they sign on the dotted line.
Now back to the positive note about Seattle. Not only is it absolutely beautiful, great skiing, trails, green forests (A Little Rain) but it is by area the most and highest educated population amongst any other City in the United States.
Thank you for setting me straight on Loan Modifications.
I am certainly anxious to return to Seattle!
-Christopher Rockey
The California Real Estate Commissioner, Jeff Davi, announced the issuance of a Consumer Alert by the California Department of Real Estate (DRE) warning consumers about loan modification scams and informing consumers of what they can do to protect themselves. If your not sure what Jeff davi looks like read my April article that's just before my camera got stolen in Las Vegas.
“With so many people struggling to stay in their homes, foreclosure rescue scams have risen dramatically,” DRE Commissioner Jeff Davi said. “The Consumer Alert will educate consumers and help homeowners avoid becoming victims to loan modification scams.”
With new state and federal programs, as well as new laws and regulations in place, more and more loans are being successfully modified to keep homeowners in their homes. Earlier this week, the California Department of Corporations released the results of its first quarter survey of mortgage servicers, which showed that there have been more modifications during the first three months of 2009 than there were at the same time last year. While it is welcome news that more Californians are remaining in their homes, it is also important for consumers to make sure they understand their options in regards to loan modifications. The Consumer Alert can be a valuable resource, especially since unscrupulous operators are looking to take advantage of vulnerable consumers.
Loan modification scams are worrisome and widespread. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October the DRE has filed over 200 Desist and Refrain Orders and Accusations involving loan modification scams and the list of offenders continues to grow. A list of the companies and persons the Department has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.
Enforcement efforts are not enough; consumer education is the key to preventing any further fraud. The Consumer Alert contains important information on how consumers can protect themselves against unscrupulous providers who collect advance fees promising financially stressed borrower’s relief, but instead, do little or nothing. The alert also provides information on where to report fraud and what resources may be available to victims of fraud to recover losses suffered at the hands of illegal or incompetent operators.
It is worth noting that not all firms who collect advance fees for loan modification services do so illegally. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with the Real Estate Law.
The Commissioner encourages all consumers to log on to DRE’s website at http://www.dre.ca.gov/mlb_adv_fees.html to check out any real estate broker wanting an up-front fee in exchange for loan modification help. Be aware, even real estate brokers with compliant advance fee agreements are prohibited from collecting advance fees for loan modification services involving a property against which a Notice of Default has been recorded.
No person is required to pay a third party for a loan modification. A consumer can simply call his or her lender or use the services of a nonprofit housing counselor. Commissioner Davi encourages consumers to visit the DRE’s website for information on loan modifications. “Log on, look ‘em up and check ‘em out” to ensure that a company wanting an advance fee is properly licensed and can legally collect an advance fee before they sign on the dotted line.
Now back to the positive note about Seattle. Not only is it absolutely beautiful, great skiing, trails, green forests (A Little Rain) but it is by area the most and highest educated population amongst any other City in the United States.
Thank you for setting me straight on Loan Modifications.
I am certainly anxious to return to Seattle!
-Christopher Rockey
Tuesday, June 23, 2009
Is Your Money Safe?
Below is a list of all the US banks that have closed this year, with the most recent ones first.
A total of 40 banks have failed so far in 2009, versus 25 for all of 2008.
Failed Banks 2009
Bank Location Date Closed Assets Cost to FDIC
First National Bank of Anthony Anthony, Kan. 6/19/09 $156.9 mil. $32.2 mil.
Cooperative Bank Wilmington, N.C. 6/19/09 $970 mil. $217 mil.
Southern Community Bank Fayetteville, Ga. 6/19/09 $377 mil. $114 mil.
Bank of Lincolnwood Lincolnwood, Ill. 6/5/09 $214 mil. $83 mil.
Citizens National Bank Macomb, Ill. 5/22/09 $437 mil. $106 mil.
Strategic Capital Bank Champaign, Ill. 5/22/09 $537 mil. $173 mil.
BankUnited, FSB Coral Gables, Fla. 5/21/09 $12.80 bil. $4.9 bil.
Westsound Bank Bremerton, Wash. 5/8/09 $334.6 mil. $108 mil.
America West Bank Layton, Utah 5/1/09 $299.4 mil. $119.4 mil.
Citizens Community Bank Ridgewood, N.J. 5/1/09 $45.1 mil. $18.1 mil.
Silverton Bank, N.A. Atlanta, Ga. 5/1/09 $4.1 bil. $1.3 bil.
First Bank of Idaho Ketchum, Idaho 4/24/09 $488.9 mil. $191.2 mil.
First Bank of Beverly Hills Calabasas, Calif. 4/24/09 $1.5 bil. $394 mil.
Michigan Heritage Bank Farmington Hills, Mich. 4/24/09 $184.6 mil. $71.3 mil.
American Southern Bank Kennesaw, Ga. 4/24/09 $112.3 mil. $41.9 mil.
Great Basin Bank of Nevada Elko, Nev. 4/17/09 $270.9 mil. $42 mil.
American Sterling Bank Sugar Creek, Mo. 4/17/09 $181 mil. $42 mil.
New Frontier Bank Greeley, Colo. 4/10/09 $2.0 bil. $670 mil.
Cape Fear Bank Wilmington, N.C. 4/10/09 $492 mil. $131 mil.
Omni National Bank Atlanta, Ga. 3/27/09 $956 mil. $290 mil.
TeamBank, National Association Paola, Kan. 3/20/09 $669.8 mil. $98 mil.
Colorado National Bank Colorado Springs, Colo. 3/20/09 $123.5 mil. $9 mil.
FirstCity Bank Stockbridge, Ga. 3/20/09 $297 mil. $100 mil.
Freedom Bank of Georgia Commerce, Ga. 3/6/09 $173 mil. $36.2 mil.
Security Savings Bank Henderson, Nev. 2/27/09 $238.3 mil. $59.1 mil.
Heritage Community Bank Glenwood, Ill. 2/27/09 $232.9 mil. $41.6 mil.
Silver Falls Bank Silverton, Ore. 2/20/09 $131.4 mil. $50 mil.
Pinnacle Bank of Oregon Beaverton, Ore. 2/13/09 $73 mil. $12.1 mil.
Corn Belt Bank and Trust Company Pittsfield, Ill. 2/13/09 $271.8 mil. $100 mil.
Riverside Bank of the Gulf Coast Cape Coral, Fla. 2/13/09 $539 mil. $201.5 mil.
Sherman County Bank Loup City, Neb. 2/13/09 $129.8 mil. $28.0 mil.
County Bank Merced, Calif. 2/6/09 $1.7 bil. $135 mil.
Alliance Bank Culver City, Calif. 2/6/09 $1.14 bil. $206.0 mil.
FirstBank Financial Services McDonough, Ga. 2/6/09 $337 mil. $111 mil.
Ocala National Bank Ocala, Fla. 1/30/09 $223.5 mil. $99.6 mil.
Suburban Federal Savings Bank Crofton, Md. 1/30/09 $360 mil. $126 mil.
MagnetBank Salt Lake City, Utah 1/30/09 $292.9 mil. $119.4 mil.
1st Centennial Bank Redlands, Calif. 1/23/09 $803.3 mil. $227 mil.
Bank of Clark County Vancouver, Wash. 1/16/09 $446.5 mil. $120-$145 mil.
National Bank of Commerce Berkeley, Ill. 1/16/09 $430.9 mil. $97.1 mil.
So now that I can do the research and find out who's closed, would you like to know who's staying open?
Remember this is just me talking (Writing) out loud:
Bank of America
Chase
Wells Fargo
Citibank / Citigroup
Goldman Sachs (international/National Banking and Asset management)
Beyond those, nothing shocks me. Even B of A has had major exposure issues.
-Christopher Rockey
A total of 40 banks have failed so far in 2009, versus 25 for all of 2008.
Failed Banks 2009
Bank Location Date Closed Assets Cost to FDIC
First National Bank of Anthony Anthony, Kan. 6/19/09 $156.9 mil. $32.2 mil.
Cooperative Bank Wilmington, N.C. 6/19/09 $970 mil. $217 mil.
Southern Community Bank Fayetteville, Ga. 6/19/09 $377 mil. $114 mil.
Bank of Lincolnwood Lincolnwood, Ill. 6/5/09 $214 mil. $83 mil.
Citizens National Bank Macomb, Ill. 5/22/09 $437 mil. $106 mil.
Strategic Capital Bank Champaign, Ill. 5/22/09 $537 mil. $173 mil.
BankUnited, FSB Coral Gables, Fla. 5/21/09 $12.80 bil. $4.9 bil.
Westsound Bank Bremerton, Wash. 5/8/09 $334.6 mil. $108 mil.
America West Bank Layton, Utah 5/1/09 $299.4 mil. $119.4 mil.
Citizens Community Bank Ridgewood, N.J. 5/1/09 $45.1 mil. $18.1 mil.
Silverton Bank, N.A. Atlanta, Ga. 5/1/09 $4.1 bil. $1.3 bil.
First Bank of Idaho Ketchum, Idaho 4/24/09 $488.9 mil. $191.2 mil.
First Bank of Beverly Hills Calabasas, Calif. 4/24/09 $1.5 bil. $394 mil.
Michigan Heritage Bank Farmington Hills, Mich. 4/24/09 $184.6 mil. $71.3 mil.
American Southern Bank Kennesaw, Ga. 4/24/09 $112.3 mil. $41.9 mil.
Great Basin Bank of Nevada Elko, Nev. 4/17/09 $270.9 mil. $42 mil.
American Sterling Bank Sugar Creek, Mo. 4/17/09 $181 mil. $42 mil.
New Frontier Bank Greeley, Colo. 4/10/09 $2.0 bil. $670 mil.
Cape Fear Bank Wilmington, N.C. 4/10/09 $492 mil. $131 mil.
Omni National Bank Atlanta, Ga. 3/27/09 $956 mil. $290 mil.
TeamBank, National Association Paola, Kan. 3/20/09 $669.8 mil. $98 mil.
Colorado National Bank Colorado Springs, Colo. 3/20/09 $123.5 mil. $9 mil.
FirstCity Bank Stockbridge, Ga. 3/20/09 $297 mil. $100 mil.
Freedom Bank of Georgia Commerce, Ga. 3/6/09 $173 mil. $36.2 mil.
Security Savings Bank Henderson, Nev. 2/27/09 $238.3 mil. $59.1 mil.
Heritage Community Bank Glenwood, Ill. 2/27/09 $232.9 mil. $41.6 mil.
Silver Falls Bank Silverton, Ore. 2/20/09 $131.4 mil. $50 mil.
Pinnacle Bank of Oregon Beaverton, Ore. 2/13/09 $73 mil. $12.1 mil.
Corn Belt Bank and Trust Company Pittsfield, Ill. 2/13/09 $271.8 mil. $100 mil.
Riverside Bank of the Gulf Coast Cape Coral, Fla. 2/13/09 $539 mil. $201.5 mil.
Sherman County Bank Loup City, Neb. 2/13/09 $129.8 mil. $28.0 mil.
County Bank Merced, Calif. 2/6/09 $1.7 bil. $135 mil.
Alliance Bank Culver City, Calif. 2/6/09 $1.14 bil. $206.0 mil.
FirstBank Financial Services McDonough, Ga. 2/6/09 $337 mil. $111 mil.
Ocala National Bank Ocala, Fla. 1/30/09 $223.5 mil. $99.6 mil.
Suburban Federal Savings Bank Crofton, Md. 1/30/09 $360 mil. $126 mil.
MagnetBank Salt Lake City, Utah 1/30/09 $292.9 mil. $119.4 mil.
1st Centennial Bank Redlands, Calif. 1/23/09 $803.3 mil. $227 mil.
Bank of Clark County Vancouver, Wash. 1/16/09 $446.5 mil. $120-$145 mil.
National Bank of Commerce Berkeley, Ill. 1/16/09 $430.9 mil. $97.1 mil.
So now that I can do the research and find out who's closed, would you like to know who's staying open?
Remember this is just me talking (Writing) out loud:
Bank of America
Chase
Wells Fargo
Citibank / Citigroup
Goldman Sachs (international/National Banking and Asset management)
Beyond those, nothing shocks me. Even B of A has had major exposure issues.
-Christopher Rockey
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