After the biggest housing boom and bust in U.S. history, prices of existing homes managed to increase by only 25% over the past 10 years, according to the National Association of Realtors.
GMAC is in line to get an additional $3.5 billion in assistance from the Treasury Department to cover mortgage losses from its troubled Residential Capital unit, according to published reports.
To expedite sales of foreclosed properties, Fannie Mae says it will accept a buyer’s purchase offer without notifying the servicer and before it determines whether the lender has to reimburse the secondary market agency for any losses.
The serious delinquency rate of Fannie Mae’s single-family loans nearly hit 5% at the end of October and its loan performance is deteriorating at a rate of 100 basis points per four-month period.
House prices were unchanged in October after a 0.4% increase in September, according to the Standard & Poor’s/Case-Shiller 20-city house price index.
The volume of requests for conforming loans submitted online to Zillow’s Mortgage Marketplace last week dropped 26% from the prior week.
The Treasury Department will stop purchasing Fannie Mae and Freddie Mac mortgage-backed securities on Dec. 31, but the department is increasing its capital support for the two financially strapped government-sponsored enterprises.
