TheMReport — News and strategies for the evolving mortgage marketplace.
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THE LATEST ANALYTICS HUD Scorecard Shows Unpredictability According to the Obama administration, January's HUD report reveals some forward movement for the country's housing markets but confusion remains. T he Treasury Department and HUD released the January edition of the Obama administration's housing scorecard recently, providing a comprehensive report on the nation's housing market. The scorecard generated mixed signals. Inventory levels and fore- closure starts showed improve- ment, while home prices and sales continued to be fragile. "While we should be encour- age by the positive trends on inventories and foreclosure starts, the mixed overall outlook means that we must remain diligent to improve conditions in the na- tion's housing market," said HUD Assistant Secretary Raphael Bostic in a recent statement. 60 | THE M REPORT According to the report, in- ventory levels showed improve- ment in the last two quarters by declining from 3.2 million in the second quarter of 2011 to 2.4 mil- lion in the fourth quarter. The number of homes held off the market declined, from 3.9 million in the first quarter to 3.6 million in the fourth quarter. And while existing-home sales continued to increase, new home sales declined. The report indicated that foreclosure starts continued to fall, from 71,700 in November 2011 to 58,300 in December 2011, whereas foreclosure completions "ticked upward" to an approxi- mate 62,000, from December 2011's 56,000. Mortgage delinquency rates also continued to decline, from 4.7 percent to 4.4 percent. The Obama administration re- vealed enhancements to the Home Affordable Modification Program (HAMP), including a extensive plan to "provide responsible borrowers an opportunity to re- finance, protect tenants at risk of displacement due to foreclosure, and provide more robust relief to underwater homeowners," accord- ing to the report. "The administration's recent proposals are critical to promot- ing healing in the market. Our efforts to ramp up economic development in fragile neighbor- hoods and to expand homeown- er access to low-interest refinance options reflect our commitment to turning these markets towards growth," said Bostic. The scorecard noted that eligible homeowners entering HAMP "have a high likelihood of earning a permanent modi- fication and realizing long-term success." Of those who entered HAMP, 84 percent in the last 18 months have received a permanent modification with an average trial period of 3.5 months. More than 94 percent of homeown- ers remain in their permanent modification, after six months in the program. "The recent enhancements we have announced will bring fur- ther assistance to homeowners, renters, and their communities as our nation continues to heal from an unprecedented housing crisis," Tim Massad, Treasury assistant secretary for financial stability, said in the statement. SECONDARY MARKET ANALYTICS SERVICING ORIGINATION