A look at stories across HousingWire’s weekend desk, with more coverage to come on bigger issues:

Servicers continue to capture the heat of economists and researchers who claim new data shows servicing shops were not equipped to process millions of loan modifications in the wake of the mortgage market meltdown.

The Chicago Tribune elaborated on a report from the University of Chicago Booth School of Business and the National Bureau of Economic Research this past week.

The report claims even under the best of circumstances, the government’s loan modification program could have helped 3 to 4 million households. Yet, their best possible performance amounts to just one-third of that figure.

The low expectations and turnout is attributed to servicing shops not having the support and operations needed to handle the influx.

Real estate flippers have returned to the market with cash in hand. The latest Foreclosure News report from RealtyTrac says flippers are back. But unlike the shaky days of the late real estate boom, flippers are playing it safe and buying properties with cash rather than financing them.

In turn, they are spending tens of thousands of dollars in renovations to later sell the cash-bought homes at a profit. Octavio Nuiry with RealtyTrac documents the development, saying “Flipping is big business. Nationally, investors flipped 99,567 homes in the first six months of 2012, up 25 percent from the 79,826 flipped properties in 2011.”

Three states have signed onto a contentious lawsuit challenging the legality of the Dodd-Frank financial reform bill, The Hill reported. Michigan, Oklahoma and South Carolina officials signed onto the suit, claiming the bill gives the Treasury too much power to liquidate a failing bank without having to consult with impacted states.

Michigan Attorney General Bill Schuette is quoted in the piece as suggesting that Michigan alone has much to lose with its public-employee pension funds maintaining large investments in systemically important banks.

No new bank failures were recorded by the FDIC in the past week.

Click here to read more.


About the Author

Most Popular Articles

Freddie Mac: Mortgage rates reverse course from last week’s low

This week, the average U.S. fixed rate for a 30-year mortgage jumped to 3.69%. That’s still more than a percentage point lower than the 4.85% of the year-earlier week.

Oct 17, 2019 By

Latest Articles

Harvard: Number of cost-burdened senior households hits all-time high

Over the next two decades, households in their 80s will be the fastest-growing age group, according to a recent study by the Joint Center for Housing Studies of Harvard University. With the increase in numbers of households 65 and over, the study noted that a widening gap in housing inequality is becoming more apparent.

Oct 17, 2019 By