November 2012

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 71 of 79

THE LATEST SECONDARY MARKET Freddie Mac Granted Dismissal of Class Action Suit A putative class action legal filing against the GSE was found "legally defective" in a New York district court. Improving Markets Index Hits New High in October T that have shown improvement from their respective troughs in housing permits, employment, and house prices for at least six straight months. A total of 103 housing markets across the country qualified for the list in October, up from 99 in September and the highest level since the list started a year ago, NAHB said. At its October level, the number of qualifying markets approaches nearly 10 times the number from when the index was first created. The markets on the list repre- sent metros from 33 different states 74 | THE M REPORT First American Title's Improv- ing Markets Index (IMI) broke the triple-digit mark in October, NAHB reported. The index identifies metro areas he number of markets listed on the National Association of Home Builders (NAHB) and and the District of Columbia. NAHB noted that 11 new housing markets received the "improv- ing" designation in October, while seven slipped off the list. Ninety- two metros retained their spots. Markets added to the October list include Santa Cruz, California; Pocatello, Idaho; Abilene, Texas; and Savannah, Georgia. The metro areas included in September's index but absent in October's were Jacksonville and Lakeland, both in Florida; Lawton, Oklahoma; Bloomington, Indiana; Bend, Oregon; Charlottesville, Virginia; and Texarkana, Texas. Kurt Pfotenhauer, vice chair- F October statistics indicate that more than 100 markets displayed forward momentum, pushing the index into the triple digits. than 100 metros marks an important milestone on the road to recovery," Pfotenhauer said. "For potential buyers across the country, it is becoming increasingly apparent that now is a good time to explore a new- home purchase." However, NAHB chief economist David Crowe said that restrictive credit conditions are limiting buyers' options and hampering further growth in the improvement index. "The fact that most markets Originally filed in August 2008, the putative class action lawsuit against the government- sponsored enterprise (GSE) was dismissed with prejudice in a New York district court. The recent decision follows reddie Mac has emerged as the victor in a legal battle over alleged securities fraud. an April 2011 proceeding in which an earlier version of the plaintiffs' claims was dismissed, with the plaintiffs retaining leave to file an amended complaint. However, the most recent filing was found to be "legally defective" by Judge John Keenan of the U.S. District Court for the Southern District of New York. Supporting the GSE's "motion to dismiss, with prejudice, all claims asserted against Freddie Mac and certain of its former senior officers," Judge Keenan also denied the plaintiffs' attempt to file a Third Amended Complaint in the case. Additionally, the judge rejected man at First American, remarked that the index's improvement should signal to potential buyers that the time to purchase is now. "The expansion of the improving markets list to more are maintaining their spots on the improving list from month to month is an important indication that the recovery trend is solidi- fying," Crowe said. "At the same time, overly tight credit condi- tions are certainly constraining consumers' ability to purchase homes as well as builders' ability to construct them." claims that Freddie's public disclosures from November 20, 2007, to September 7, 2008, were materially false or misleading. "We are very pleased with the court's decision and with Judge Keenan's thoughtfully reasoned opinion," concluded William McDavid, EVP, general counsel, and corporate secretary for Freddie. SECONDARY MARKET ANALYTICS SERVICING ORIGINATION

Articles in this issue

Archives of this issue

view archives of TheMReport - November 2012