Applications for mortgage refinancing made up only 58 percent of all mortgage applications during the week ended February 21, down 3 percentage points from the previous week and the lowest market share since last September. According to the Mortgage Bankers Association (MBA) its Refinancing Index was 11 percent lower than the week ended February 14 and almost all other application volume markets fell as well. Read more
The FHA is insolvent … but that is nothing new. And why again, is that OK with everyone? This article is a clear indication that while the housing market does appear to be improving – it is a far cry from being safe and secure.
“This month, the FHA’s private GAAP-estimated net worth deteriorated by $400 million. The estimate for January of the FHA’s GAAP net worth is –$26.10 billion, down from –$25.70 billion in December 2013 (revised), up from –$28.40 billion in January 2013, and up from –$26.91 billion in January 2012. It is noteworthy that the FHA has shown virtually no improvement in its GAAP net worth since January 2012. Read more
“Five years later, the United States financial sector is in much better condition. Banks have absorbed losses from loans made during the bubble and rebuilt their capital, and investor confidence has returned. Mr. Geithner’s proposals did not all work right away or in the scale initially envisioned. In the end, however, Secretary Geithner deserves credit for making good on what he promised.” Read more