Why are Banks Hiding High End Residential Real Estate? Courtesy of the Real Estate Channel:
- Without the FTB tax credit, the housing market is receiving artificial demand and price support from the FHA loan guarantees and banks sitting on mortgages of homes once valued at $300,000
- Banks in areas that were severely damaged by the downturn in domestic real estate (Cook County, Illinois, Miami-Dade County, Florida, Orange County, California) have significant inventories of homes worth more than $300,000 that they will not put on the market, even after foreclosures lasting more than 2 years
According to Bruce Krasting over at Zero Hedge, the FHA is "Officially Broke" anyway: FHA – “We are Officially Broke” After perusing the data above, one would wonder why... (Link to FHA/FR)
SUMMARY: A recently issued independent actuarial study shows that the Mutual Mortgage Insurance Fund (MMIF) capital ratio has fallen below its statutorily mandated threshold.
More Reggie Middleton on Residential Real Estate:
As I Made Very Clear In March, US Housing Has a Way to Fall
Recent Mortgage Loss and Credit Performance Commentary
This is the public version of our quarterly review of Alt-A and subprime mortgage performance sourced from the NY Fed and FDIC data. All paying subscribers can access the entire document here: 4Q09 Alt-A and Subprime commentary (452.33 kB 2010-05-21 05:49:09).
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