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’Fitch on Spanish mortgage walkaways
Fitch seems angry.
In a Friday statement, the rating agency dealt with a recent ruling by a judge in the Spanish province of Navarra, which said that giving a mortgaged house back to a bank is sufficient to cancel mortgage debt,
Revisiting negative equity and labour mobility
Hands up — looks like we’re gonna have to rethink one of our previous previous assumptions.
Sam Schulhofer-Wohl, a researcher at the Minnesota Fed, scutinised a previous study showing that an increase in negative equity (like what we’ve seen since the end of the housing bubble) harms labour mobility and therefore contributes to higher unemployment — and he found its methodology flawed.
Forget non-performing loans, how ’bout performing ones?
Non-performing loans — those defaulted or nearly-defaulted loans — have naturally grabbed headlines during the US housing crisis. In fact, they tend to be a focus for nearly every bond or bank investor in gauging investment risk.
Negative equity still declining, for now
CoreLogic released its quarterly report on US underwater mortgages on Monday, showing that negative equity has declined for a third straight quarter — though not for the best of reasons:
CoreLogic reports that 10.8 million,
Housing lessons unlearned
The Washington Independent has an excellent story today about an ongoing housing programme in the US that is almost breathtaking in its stupidity.
Known as “Affordable Advantage”, it involves a kind of partnership between Fannie Mae,
US homeownership minus negative equity = 61.6%
Knock 5.6 percentage points off the American dream: US home ownership.
Doing that will effectively strip out those homeowners currently in negative equity, according to a Federal Reserve paper by Andrew Haughwout,
Principals, forgiveness and a reborn Hamp?
Tuesday provided a veritable bonanza of info for any one following the US Treasury’s increasingly curious forays into mortgage modification.
The US House Financial Services Committee met to discuss the government’s response to the mortgage foreclosure crisis,
Majority of current RMBS borrowers underwater, Fitch says
How’s this for a negative equity data point: the majority of borrowers whose home loans have been wrapped into a US residential mortgage backed securities transaction owe more on their mortgages than their homes are currently worth,
Deutsche Bank on those drowning US homeowners
Karen Weaver, Deutsche Bank’s formidable global head of securitisation research, warned in a report on Wednesday that the percentage of US mortgage-holders facing negative equity would nearly double by 2011.
Nationwide offers 125% mortgage
Negative equity mortgages are being offered to customers of Nationwide that will allow homeowners once again to borrow more than the value of their intended house purchase, the FT reported. Nationwide has begun offering its customers suffering from negative equity a mortgage that provides up to 125 per cent of a property’s value,
Negative equity hot spots
Inspired by Tuesday’s report on prime RMBS from Fitch.
Click to get the enlarged FT.com version.
Related links:
Fitch report highlights negative equity woe – FT