Report: Mortgage Litigation Eases in Q1, Expected to Level Off

While this year’s $25 billion mortgage settlement may have eased mortgage litigation in the first quarter, legal activity still remains relatively high, according to a report from Mortgage Daily.

The site tracked 216 mortgage-related lawsuits that saw activity during the first quarter of 2012, a slight easing from activity in fourth-quarter 2011, during which 244 cases were tracked. The decline in activity was attributed mostly to changing standards brought on in response to the national mortgage settlement.

However, mortgage litigation activity remains high by historical standards. Legal activity in Q1 was higher year-over-year, and most categories experienced elevated activity compared to Q1 2011.

Cases related to foreclosure, servicing, and criminal activity all fell from the end of 2011 but jumped up year-over-year. Meanwhile, investor cases saw the same amount of legal activity as reported for Q4 2011 and were up year-over-year.

Meanwhile, the number of title cases saw a huge increase year-over-year, spiking to 47 cases – a small quarter-to-quarter increase from 46, but a massive leap from 8 cases tracked in Q1 2011.

The ranking of busiest categories didn’t change from the end of 2011, with foreclosure litigation topping the list (89 cases tracked). It was followed by servicing (65) and investor (62) cases.

In a white paper released with the report, Ballard Spahr LLP partner Christopher Willis commented that a quarter-to-quarter drop in mortgage litigation shouldn’t be interpreted by itself as the start of a positive trend.

“This continued high level of foreclosure activity, coupled with the sustained media and governmental interest in the mortgage industry, suggests that we may see a plateau of mortgage litigation that remains at levels comparable to the last three quarters for the remainder of the year,” Willis wrote. “At least for the time being, a high level of litigation seems to be the ‘new normal’ for the industry.”

 

Advertisements

Mortgage Financing Increases While Distressed Sales Fall: Survey

The popularity of FHA mortgages is slowing down, while the use of mortgage financing is growing overall, according to the Campbell/Inside Mortgage FinanceHousingPulse Tracking Survey.

“Conventional mortgages are making a comeback whileFHA mortgages are not,” said Thomas Popik, research director for Campbell Surveys. “Reasons for the growth in conventional mortgages include low rates, increased underwriting of high LTV mortgages by private mortgage insurers, and a price structure including insurancepremiums that is cheaper than the FHA alternative.”

FHA-backed transactions made a slight increase in August to 25.9 percent from 25.5 percent in July. The percentage is down from January, when FHA transactions accounted for 27.3 percent of all home purchase transactions.

Overall, mortgages were used to finance 68.9 percent of home purchase transactions in August, an increase from 67.5 percent in July.

According to a HousingPulse release, the trend toward mortgage financing rather than cash transactions is due to a surge in purchases of non-distressed properties.

The HousingPulse Distressed Property Index (DPI) showed the share of home purchases for distressed properties decreased to 40.4 percent in August, a drop from 42.2 percent in July. The figure for August is also the lowest level recorded since January of 2010.

When investors do buy distressed homes, a large majority of investors (77 percent) in August said they relied on cash.

The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey includes about 2,500 real estate agents across the U.S.

According to feedback from agents, mortgage availability has improved over the summer months.

“Mortgages for home buyers with less than 20% down were available more than in previous months,” said one agent from California. A Texas agent said, “Contrary to media reports, there is no shortage of mortgage money available for buyers with down payments less than 20%.”

 

Delinquencies Fall Further in LPS First-Look August Data

Loan delinquency in the United States continued to drop in the month of August, according to first-look data fromLender Processing Services (LPS).

According to data released Monday, the total delinquency rate (for loans 30 or more days past due but not inforeclosure) was 6.87 percent in August, down 2.3 percent from July. Year-over-year, delinquencies fell 10.6 percent.

An estimated 3,430,000 properties were 30 days or more past due (but not in foreclosure) at the end of August. Approximately 1,520,000 were 90 or more days delinquent but not in foreclosure.

A total of 5,450,000 properties were 30 or more days overdue or in foreclosure.

The foreclosure pre-sale inventory rate fell 1.0 percent from July, with the number of properties estimated at 2,020,000. Yearly, the inventory rate dropped 2.0 percent. The estimated foreclosure pre-sale inventory rate was 4.04 percent.

Nevada and Florida once again made the list of the top five states with the highest percentage of non-current loans. They were joined by Mississippi, New Jersey, and New York.

The list of states with the lowest percentage of delinquent loans included Montana, Alaska, South Dakota, North Dakota, and Wyoming, all of which consistently rank near the top.

 

Case-Shiller Indexes to 20-Month High

U.S. home prices continued to increase in July, according to Case-Shiller, with its 20-city index up 1.6 percent from June and the 10-city index up 1.5 percent.

The 10- city index rose to its highest level since November 2010 and the 20-city index to the highest level since October 2010. Prices rose month-month in all of the 20 cities.

Year-year, the 10-city index was up 0.6 percent and the 20-city index rose 1.2 percent. Economists surveyed by Bloomberg had expected the 20 city index to increase 1.7 percent from June and 1.2 percent from July 2011.

Prices had increased in all 20 cities in May and June. If prices had risen in Detroit in April, this month’s report would have been the fourth consecutive month in which prices rose in all 20 cities.

While the Case-Shiller index showed across-the-board price gains in July, the National Association of Realtors reported the median price of an existing single family homedropped 0.5 percent in July and another 0.2 percent in August.

The prices gains reported by Case-Shiller were led by 3.7 percent gain in Minneapolis, a 3.3 percent increase in Detroit, a 2.7 percent rise in Chicago and 2.6 percent improvement in Atlanta.

Prices rose year-year in 16 of the 20 cities – compared with June when prices rose year-year in 13 cities — led by Phoenix, 16.6 percent, Minneapolis, 6.4 percent, Detroit,6.2 percent, Denver 5.4 percent and Miami, 5.3 percent.

The steepest year-year price drop was in Atlanta, 9.9 percent, followed by New York, 2.6 percent, Las Vegas, 1.0 percent and Chicago, 0.9 percent.

Even with the improvement in April, the 10-city price index is down 30.5 percent from its June 2006 peak and the 20-city index is down 30.0 percent from its July 2006 high point.

STOP FORECLOSURES…..

You Need To Stop a Foreclosure Sale or Judgment or Eviction – Now! OR You have been Evicted and want to Reclaim your Property; and/or You Received a Notice of Default or Acceleration of your Balance Due on your Mortgage/Deed of Trust Note; OR You Just Received Court Papers for the Bank Foreclosing; and/or You Received a Notice of Trustee’s or Sheriff’s Sale. OR You just receive a Notice to Quit or Eviction Papers or Unlawful Detainer Court Paperwork Demanding You Leave Your Home; or maybe You have sought help to stop foreclosure or to prevent it from starting before and you have gotten the run around from the bank or someone supposedly assisting you to stop foreclosure; OR Maybe Everyone is to expensive and you think you can’t afford effect expert help to stop foreclosure.

If any of that sounds like your situation then you are in the right place. With the expert help here at Help To Stop Foreclosure.Net You Can Fight Foreclosure and Win, don’t give up hope. Signup or Call Today! for fast Help to Stop Foreclosure.

Visit our website for all your Real Estate and Legal needs…….www.ksiconsultingco.us

Case-Shiller Indexes to 20-Month High

U.S. home prices continued to increase in July, according to Case-Shiller, with its 20-city index up 1.6 percent from June and the 10-city index up 1.5 percent.

The 10- city index rose to its highest level since November 2010 and the 20-city index to the highest level since October 2010. Prices rose month-month in all of the 20 cities.

Year-year, the 10-city index was up 0.6 percent and the 20-city index rose 1.2 percent. Economists surveyed by Bloomberg had expected the 20 city index to increase 1.7 percent from June and 1.2 percent from July 2011.

Prices had increased in all 20 cities in May and June. If prices had risen in Detroit in April, this month’s report would have been the fourth consecutive month in which prices rose in all 20 cities.

While the Case-Shiller index showed across-the-board price gains in July, the National Association of Realtors reported the median price of an existing single family homedropped 0.5 percent in July and another 0.2 percent in August.

The prices gains reported by Case-Shiller were led by 3.7 percent gain in Minneapolis, a 3.3 percent increase in Detroit, a 2.7 percent rise in Chicago and 2.6 percent improvement in Atlanta.

Prices rose year-year in 16 of the 20 cities – compared with June when prices rose year-year in 13 cities — led by Phoenix, 16.6 percent, Minneapolis, 6.4 percent, Detroit,6.2 percent, Denver 5.4 percent and Miami, 5.3 percent.

The steepest year-year price drop was in Atlanta, 9.9 percent, followed by New York, 2.6 percent, Las Vegas, 1.0 percent and Chicago, 0.9 percent.

Even with the improvement in April, the 10-city price index is down 30.5 percent from its June 2006 peak and the 20-city index is down 30.0 percent from its July 2006 high point.

 For all your Real Estate and Legal needs ;Please visit our website; http://www.ksiconsultingco.us………Making your Real Estate and your Legal needs pleasurable.

BLS Breaks Down Unemployment Stats, West Region Still Hurting Most

While the national unemployment dropped in August, some regions are still reeling from above-average jobless rates, the Bureau of Labor Statistics (BLS) reported Friday.

Across the United States, 26 states recorded unemployment rate increases in August, while 12 states and the District of Columbia posted decreases. Unemployment didn’t change month-to-month in the remaining 12 states.

BLS also reported that non-farm payroll employment increased in 28 states, with Texas, Florida, and Missouri leading the pack in month-over-month increases. Meanwhile, Virginia, D.C., and Washington led the 21 states that saw a decline in employment. Colorado was the only state with no changes reported.

Regionally, the West continued to record the highest unemployment in August, posting 9.4 percent. The Midwest once again reported the lowest rate at 7.5 percent. Over the month, the Northeast experienced the only “statistically significant” change in unemployment rate, a 0.2 percent increase.

Meanwhile, among the nine geographic divisions, the Pacific continued to report the highest jobless rate, posting 10.0 percent in August. The West North Central registered the lowest rate at 5.9 percent.

In terms of state-by-state unemployment rate, Nevada again placed highest among the states with 12.1 percent. It was followed by Rhode Island and California, which posted 10.7 percent and 10.6 percent, respectively. North Dakota continued its trend of low unemployment, recording 3.0 percent.

In total, 21 states reported jobless rates significantly lower than the national average of 8.1 percent, while 12 had “measurably higher” rates, and 17 states and D.C. had rates that weren’t appreciably different.

Of the 17 states that reported statistically significant year-over-year changes in unemployment, only New York recorded an increase (increasing 0.8 percentage point).