It has been seven years since the mortgage crisis first hit the country, and much has been written about “recovery” for housing and for the consumer lending market. Is that “recovery” finally upon us now?
According to a study released by TransUnion on Wednesday, yes, the consumer lending market will experience a full recovery from both the mortgage crisis and the subsequent Great Recession by the end of 2016.
More here @ DSNews.com
TransUnion’s 2016 Forecast Expects Consumer Credit Markets to Complete Recovery
“Borrowers who refinanced in 2014 will save on net approximately $5 billion in interest over the first 12 months of their new loan. Over the course of last year, borrowers continued to take advantage of near record low mortgage rates to lower their monthly payments, shorten their loan terms and overwhelmingly choosing the safety of long-term fixed-rate mortgages – more than 95 percent of refinancing borrowers chose a fixed-rate loan. Fixed-rate loans were preferred regardless of what the original loan product had been.”
“In an article in Freddie Mac’s Executive Perspectives blog Bowden writes that this is good news for taxpayers who are currently benefiting from Freddie Mac’s profits, however, some potential buyers may be worried about being priced out of the REO market. The brokers who handle HomeStep properties are getting more questions from those buyers about how multiple offers are handled and how buyers can best position themselves to submit a winning one.”
“As a result of the collapse of the mortgage market, many feel that replacing Fannie Mae and Freddie Mac is a necessity, but, according to an article recently published in Forbes, phasing out Fannie and Freddie as a consequence to the mortgage meltdown is like “pulling over when the check engine light comes on and changing a tire, the fix has nothing to do with the problem.”
By Michael Aneiro
My Current Yield column in this week’s Barron’s magazine discusses how agency mortgage-backed securities – those underwritten by GSEs like Fannie Mae (FNMA) and Freddie Mac (FMCC) – look rich, and yield-hungry investors are turning to non-agency MBS and other, newer types of bonds called risk transfer securities.
“Sub-prime mortgages have been creeping back into the mainstream for months now, but a sympathetic article that appeared in The New York Times over the weekend presented them as a misunderstood tool that helps non-standard applicants get a mortgage. Rafferty Capital Markets VP of equity research Richard X. Bove sees this as confirmation that winding down Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) and the creation of Qualified Mortgage rules will only move the risk somewhere else.”
Purchasing the tax sale certificate is merely the first step. The tax sale certificate holder does not own the property, but merely has a lien against the property. The amount of the lien is the amount paid for the tax sale certificate plus interest (which normally accrues at a rate of 18%), costs and fees, including the certificate holder’s attorneys fees. The tax sale certificate holder must foreclose on the tax lien in order to become the owner of the property. The certificate holder has priority over any other liens against the property, including mortgages and other lien holders. The certificate holder must wait a statutorily proscribed periodafter the date of the sale of the certificate to initiate a foreclosure action. A municipality which purchased the certificate must wait six months; any other purchaser must wait two years.
via New Jersey Property Tax Sale Certificates and Foreclosures – New Jersey Lawyers Blog.