Treasury conference: Gone are the days of government boosting homeownership for all

The Treasury Department’s Tuesday summit on the “Future of Housing Finance” — with drew together major governmental, housing-industry research and private-industry figures — came as the Obama administration develops a plan to overhaul Fannie Mae and Freddie Mac, the government-sponsored enterprises that have required a $150 billion taxpayer bailout thus far. The participants came from a wide variety of viewpoints. But all recognized that the days of the government boosting homeownership for all are over. Mark Zandi, the chief economist for Moody’s Analytics, put it this way: “Not everyone can or should have a single-family home.”

Obama to help unemployed homeowners

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The return of the $1,000-down mortgage

“In today’s world, without question, we’ve learned two lessons,” FHA Commissioner David Stevens told reporters this winter. “One: homeownership is important to the sustainability of communities. And two: not everybody should own a home.”

Debt settlement companies evade state restrictions

Minnesota has one of the country’s toughest laws regulating debt settlement companies, firms that claim to help consumers with debt but often end up taking big fees while doing nothing to chip away at financial obligations. But of the 2,000 debt relief companies operating in the U.S. — many that advertise on the radio or telemarket here — only seven have registered for licenses with the Department of Commerce, leaving Minnesotans like Bill Gustafson at the mercy of people whose aim, consumer advocates say, is to squeeze profit from those already in dire financial straits.

Strategic default penalties threaten struggling homeowners

Last week, Fannie Mae announced new penalties for homeowners who strategically default on their mortgages. The move brings up the immediate concern — for both defaulting homeowners and the agencies trying to keep them paying — of how to distinguish “strategic” defaulters from those defaulting because they have no choice.

New home sales plummet to record low

The Commerce Department reported today that sales of new homes went off a cliff after the expiration of the Obama administration homebuyer tax credits. In May, sales were at a rate of 300,000 a year. That’s 33…

Foreclosure crisis disproportionately affects blacks, Latinos

In a new study, the Center for Responsible Lending analyzes the demographics of the foreclosure crisis, and finds that foreclosure has disproportionately impacted black and Latino homeowners. All in all, a home owned by a black family is 76…

Franken homeowner amendment passes Senate

The U.S. Senate approved an amendment sponsored by Sen. Al Franken that would create an office to investigate complaints by homeowners who believe their mortgage handlers are breaking the law. The amendment would create an Office of the Homeowner…

Harvard study addresses the state of the American housing market

Harvard’s Joint Center for Housing Studies released its 2010 report on the state of the American housing market yesterday. The verdict? Not good, if stable.
The bottom line:

Mortgage delinquency rate hits 10 percent, mortgage applications plummet

Two reports from the Mortgage Bankers Association today — one mixed, one troubling.