Here is the Q3 negative equity report from First American CoreLogic mentioned last night. From the report: Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth. Data Highlights Nearly 10.7 million, or 23 percent, of all…
From the WSJ: 1 in 4 Borrowers Under Water The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23% … Home prices have fallen so far that 5.3 million U.S. households are tied to mortgages that are at least…
From Kenneth Harney at the LA Times: Homeowners who ‘strategically default’ on loans a growing problem National credit bureau Experian teamed with consulting company Oliver Wyman to identify the characteristics and debt management behavior of the growing numbers of homeowners who bail out of their mortgages with none of the…
I’ve been asked many times what people should do financially during a recession. My first answer has always been “Keep your job if you can!” Earlier this week, David Leonhardt at the NY Times wrote: Wages Grow for Those With Jobs, New Figures Show Even though unemployment has reached its…
From the WaPo: Housing Agency’s Cash Reserves Will Drop Below Requirement The Federal Housing Administration has been hit so hard by the mortgage crisis that for the first time, the agency’s cash reserves will drop below the minimum level set by Congress, FHA officials said. The FHA guaranteed about a…
From Fitch: $134B of U.S. Option ARM RMBS To Recast by 2011 Of the $189 billion securitized Option ARM loans outstanding, 88% have yet to experience a recast event … Of these loans that have not yet recast, 94% have utilized the minimum monthly payment to allow their loans to…
From MarketWatch: U.S. consumer credit down record amount in July UU.S. consumers reduced their credit burden by a record amount in July, the Federal Reserve reported Tuesday. Total seasonally adjusted consumer debt fell $21.55 billion, or at a 10.4% annual rate, in July to $2.47 trillion. This is the sixth…
Typically retail companies start hiring for the holiday season in October, and really increase hiring in November. Here is a graph that shows the historical net retail jobs added for October, November and December by year. Click on graph for larger image in new window. This really shows the collapse…
Here are a few graphs from the Freddie Mac June Investor Presentation . Click on graph for large image. The first graph shows the average LTV of the Freddie Portfolio (graph doesn’t start at zero). The second graph shows the current breakdown by LTV and credit score.
Read more here…