March 9, 2012
- From Fox Business: Fannie Mae, the biggest source of money for US home loans, posted a $2.4 billion loss for the fourth quarter for a total 2011 net loss of $16.9 billion. They are seeking an additional $4.6 billion in federal aid.
- The FHA financed mortgage insurance is going from 1% to 1.75% as of April 1st. This means, on a $200,000 house, the amount goes from $2,000 to $3,500 plus a $270 monthly charge.
- From Banker and Tradesman: Bay State foreclosure activity climbed in January posting double digit increases in both starts and completed foreclosures.
- Again, from Banker and Tradesman: The Mortgage Forgiveness Debt Relief Act is set to expire in 10 months. It allows homeowners who have received principal reductions on their mortgages as a result of loan modifications, short sales or foreclosures to avoid income taxation on the amounts forgiven. There are indications on Capitol Hill that it may not be extended. The cost of extending the program is $2.7 billion for two years. In addition to the cost, some see this as another fundamentally unfair federal benefit for people who didn’t pay their mortgages subsidized by taxpayers who did the right thing and stayed current on their loans, even while underwater themselves or facing severe financial distress.