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US home sales plunge as manufacturing rebounds
An index of pending sales of existing homes in the United States unexpectedly fell to the lowest level in four years in March, signaling the real-estate slump may linger as prospective buyers hold out for lower prices. Another report showed the US manufacturing sector displayed surprising strength in April, growing at a faster-than-expected pace that helped accelerate prices The index of signed purchase agreements, or pending home resales, fell 4.9 percent to 104.3, the lowest since March 2003, after a revised 1.1 percent gain in February, the National Association of Realtors said Tuesday in Washington. The index was down 10.5 percent from March 2006. A wave of subprime mortgage defaults is throwing more homes back on to the market and prompting banks to tighten lending standards.
Wyoming foreclosure rate second-lowest in US
The Bargain Network, a firm that provides real estate information, reports that Wyoming had 21 foreclosures last month. That is one foreclosure for every 10,659 households, the nation's second-lowest rate. Only Vermont had a rate lower than Wyoming's, with one foreclosure for every 24,532 households. The national foreclosure rate is about one in 425 homes. Colorado's rate is one for every 161 households. According to the report, the number of foreclosures in Wyoming has remained fairly constant over the past six months. The Bargain Network says that more than 80 percent of the foreclosure activity nationwide involves single-family residences. John Robbins, chairman of the Mortgage Bankers Association headquartered in Washington, D.C., said earlier this month that foreclosures most often are the result of local economic conditions, not the result of loans to subprime borrowers.
Fitch Rates $662.2MM Lehman Mortgage Trust Mtge PT Ctfs, Series 2007-4
The 'AAA' rating on the senior certificates reflects the 5.75% total credit enhancement provided by the 2.5% class B1, 1.15% class B2, 0.7% class B3, 0.2% class B4, privately offered 0.4% class B5, privately offered 0.45% class B6, as well as the non-rated, privately offered 0.35% class B7. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, the master servicing capabilities of Aurora Loan Services LLC (rated 'RMS1-' by Fitch), and the primary servicing capabilities of Aurora Loan Services LLC, IndyMac Bank, F.S.B., and Washington Mutual Bank. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates.
US Fed plans action on mortgage abuses
The US Federal Reserve Board, taking a step towards curbing abusive home mortgage lending practices, said it would hold a hearing next month on how it might use its rule-making authority to stamp out such abuses. The Fed said in a statement on Thursday that the June 14 hearing at its offices in Washington was prompted partly by increased subprime mortgage foreclosures and also by testimony in four mortgage-related hearings held last year. At least 20 lenders in the subprime mortgage sector, which serves borrowers with poor credit histories at high interest rates, have gone out of business in recent months. "The goal is to find ways to promote sustainable home ownership through responsible lending, informed consumer choice and effective guidance and regulation," Fed Governor Randall Kroszner said in a statement.
Subprime lending root of deferred dreams for African Americans
WASHINGTON (NNPA) Subprime loans have been the gateway to the American dream of homeownership for many, especially African Americans. These loans, however, are in close relation to high trends in foreclosures and is having a significant effect on black borrowers, say fair-housing experts. "It is not enough to put more Americans into their own homes if we fail to arm them with the tools needed to sustain homeownership," said Marc Morial, president and chief executive officer of the National Urban League. "Far too many first-time homebuyers with limited financial experience have fallen into the trap of predatory lending where unscrupulous mortgage brokers steer them into unsuitable and exploitive mortgage products and turn their American dream into the American nightmare." The National Urban League reports that in 2004, African American homeownership soared to nearly 50 percent, a historic high.
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