Category: Economic Crisis

Mortgage Rates Jump to New High

By Mike Colpitts Borrowing rates for home mortgages jumped above 4.00% for the first time since last October on 30-year fixed rate mortgages, hitting 4.08% this week, the highest they have been in six months, according to Freddie Mac. The jump in rates was driven by higher returns being paid for U.S. Treasuries to investors… Continue reading Mortgage Rates Jump to New High

Larger Number of Homeowners Will Walk from Mortgages

Five years into the housing downturn, a larger number of homeowners with mortgages say they will walk away from their homes if their property values continue to drop, according to a new Housing Predictor opinion poll. Almost half or 47% said they would walk away from their mortgages, while almost an equal number or 53%… Continue reading Larger Number of Homeowners Will Walk from Mortgages

Chinese Copper Pipe New Toxic Scare

By Mike Colpitts Imported Chinese copper pipe already blamed for leaks in hundreds of new homes, may not even be manufactured from copper and could pose serious toxic health risks, according to a U.S. consumer watchdog group. “We are confident the defective Chinese copper plumbing pipe disaster is going to affect hundreds of thousands of… Continue reading Chinese Copper Pipe New Toxic Scare

Investors Home Buying Binge Rages

By Mike Colpitts Investors accounted for almost 1 in 4 home purchases during the month of January, up to 23% of purchases, demonstrating that the home buying binge by investors is controlling a large portion of the U.S. housing market as bargain hungry investors attempt to cash in on deals. The figure was up 2%… Continue reading Investors Home Buying Binge Rages

Renters Face Severe Affordability Shortage

By Mike Colpitts Homeowners forced to rent homes and apartments as a result of foreclosures are finding the lowest affordability of rental housing in decades as rental rates in the majority of U.S. cities climb, according to a national housing advocacy group. An estimated 70% of low income tenants are finding housing unaffordable in the… Continue reading Renters Face Severe Affordability Shortage

Straw Breaking Foreclosure Crisis Back

By Kevin Chiu The landmark $25 billion settlement between state attorneys general and the U.S. largest five banks opens the flood gates to another tsunami of foreclosures, but leaves bank servicing companies in the position to temper the flow of foreclosed properties on to the real estate market for resale. The settlement with the banks… Continue reading Straw Breaking Foreclosure Crisis Back

Bankruptcy Drop Shows Economic Upside

By Mike Colpitts Consumer bankruptcy filings declined through the latter half of 2011 and have now reached pre-recession levels, indicating a positive sign for the U.S. economy, according to credit report bureau Equifax. The drop in bankruptcy petitions paralleled a similar decline in foreclosures. Consumer and commercial bankruptcies dropped steadily from the second quarter of… Continue reading Bankruptcy Drop Shows Economic Upside

Bank of America Settles Largest Mortgage False Claims Case

By Kevin Chiu The nation’s largest bank has settled the biggest mortgage false claims case with the U.S. government in history. Bank of America will pay $1-billion to resolve wrongdoing uncovered by the U.S. Justice Department in mortgage lending by loan officers operating for Countrywide Mortgage, which BofA acquired at the height of the financial… Continue reading Bank of America Settles Largest Mortgage False Claims Case

Homeowners Receive Short Sale Cooperation

By Mike Colpitts Homeowners are receiving cooperation from banks and mortgage lenders to sell their unaffordable homes as short sales at higher levels. The increase in short sales is being driven by investors calling for banks to cut their losses, resulting in a reduction of homeowners walking away from their home mortgages. Scam artists preying… Continue reading Homeowners Receive Short Sale Cooperation