chaos, presenting many problems for lenders and mortgage debt
servicers...and those problems go wide and deep.
Over the past two years, consumer bankruptcy filings have more than doubled.
April consumer bankruptcy filings were 125,618, the American Bankruptcy Institute reported.
Bankruptcy filings by individuals jumped by nearly one-quarter in just one month.
Borrower bankruptcies continued to climb and are expected to increase further.
Those who refinanced with ARMs tied to the MTA index are sitting with
low rates. May 2004 was the last time that the Monthly Treasury Average
has been this low.
Those who refinanced with ARMs tied to the COFI index are doing good
as well. Just when it appeared that the Cost of Funds Index couldn't go any
lower, it sank to its lowest level on record.
Judges across the country are ruling in various ways against banks and it's
servicers. A South Carolina supreme court judge has halted foreclosures
on Fannie Mae and Freddie Mac loans.
The moratorium is targeted at loans that qualify for modifications under
federal programs.
Two other big states have also recently extended the time needed by lenders to foreclose.
In the News you'll hear reports that sales are up and the market is coming
back...don't believe it. U.S. bankers continue to tighten their residential lending.
Why? Because most bankers expect further deterioration in their portfolios.
Delinquency has continued further into record territory.
At the same time, Fannie Mae has made changes to its requirements for
using nontraditional credit scores. Depending on the sources, a total of four
to six sources are required, and one of the nontraditional sources used in
developing a nontraditional credit report must be housing-related.
Fixed mortgage rates sit at the lowest point since Freddie Mac began
tracking them... trading in Treasuries suggests fixed rates may head higher.
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