BofA reaches $16.65B settlement over "toxic waste" mortgages

BofA reaches $16.65B settlement over "toxic waste" mortgages

Loans date back to Countrywide and Merrill Lynch

KBRA: More smoke than fire in Ocwen’s restated earnings

Cautions that MSR transactions could see more regulatory scrutiny

Truth is, those recent housing numbers aren't so shiny

Housing starts? More like housing stops, amirite?
W S

Investments

Why are these the top 10 markets for mom-and-pop landlords?

This is where rents outstrip mortgage payments
Trey Garrison
Some places it just pays more to rent out your home when you move someplace else rather than simply selling it, because it pays every month.
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Existing home sales reach 2014 high

July sales still trail 2013
Trey Garrison
Existing home sales increased in July to their highest annual pace of the year, but are down 4.3% year over year, and the ongoing decline in distressed sales reached an important milestone, according to the National Association of Realtors.
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BofA reaches $16.65B settlement over "toxic waste" mortgages

Loans date back to Countrywide and Merrill Lynch
Brena Swanson
The rumors from yesterday are now confirmed. “Bank of America knew that such wholesale channel loans – described internally as “toxic waste” – presented vastly greater risks of severe delinquencies, early defaults, underwriting defects, and prepayment," according to the SEC filing on the settlement.
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Countrywide’s Mozilo may face lawsuit over subprime mortgages

This time prosecutors have a new weapon
Brena Swanson
Although Countrywide Financial no longer exists, co-founder Angelo Mozilo is allegedly not in the clear as prosecutors still want to hold him responsible for the company’s role in the U.S. housing bubble, according to a Bloomberg report.
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Distressed sales down to lowest share since before housing bubble broke

Sales accounted for just 11% of total home sales in June
Trey Garrison
For the 19th consecutive month, distressed home sales fell on a year-over-year basis, declining to 11.4% of home sales in June.
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What can you get for $1 million in housing these days?

It's not two houses at the same time or even a bigger house
Trey Garrison
Home values are down 11% from their pre-meltdown peak in 2007, and $1 million doesn’t go nearly as far as it used to, according to Zillow’s number crunchers.
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Chicago FHLB launches Ginnie Mae MBS program

Gives small banks access to secondary mortgage market
Brena Swanson
The Federal Home Loan Bank of Chicago will soon launch its new program that allows members to originate and sell government-backed loans into Ginnie Mae mortgage-backed securities.
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Multifamily housing starts soar while single-family permits remain flat

Starts and permits up but gains driven more by apartments, not homes
Trey Garrison
After plunging in June, housing starts and housing permits recovered in July, printing at 1,093,000 and 1,052,000, respectively. The bad news is that almost all of those gains from June to July are in multifamily rental housing.
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RealtyTrac: Cash purchases disappearing from home sales

Institutional investors keep cooling down
Ben Lane
“The flurry of purchases by institutional investors and other cash buyers that kicked off two years ago when U.S. home prices hit bottom is finally showing signs of subsiding,” said Daren Blomquist, RealtyTrac vice president, noting that the U.S. median home prices bottomed out in March 2012.
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Compass Point: Refi burnout hurting Walter Investment

Reiterates “sell” rating and lowers target price by 20
Ben Lane
Citing increasing operating costs and declining profit margins, Compass Point Trading & Research said that Walter Investment is headed towards a poor 2014 and an even worse 2015.
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