VIEWS: 3 PAGES: 3 CATEGORY: Business & Economics POSTED ON: 7/14/2010
"As badasthe2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans," [James J. Saccacio] said. "After peaking in July. . . we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline.""The recession technically ended last year," said Stuart Hoffman, chief economist for PNC Financial Services in Pittsburgh. "However, the normal rapid economic rebound seen in the first year or so following past deep recessions will not occur.""Consumers' short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months," said Lynn Franco, director of The Conference Board's Consumer Research Center. "Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists."
credit world By Emily Grace An Uncertain Future While consumer confidence is improving, the housing market still faces several significant challenges in 2010 W ith both mortgage delinquencies and foreclosure filings hitting record highs in 2009, there will likely be a considerable volume of foreclosures number of properties receiving at least one foreclosure filing during the year makes up 2.21 percent of all housing units. This percentage is up from 1.84 percent in 2008, 1.03 percent in 2007 and expansion of the homebuyer tax credit is also stimulating the housing industry. The Worker, Homeownership and Business Assistance Act of 2009, signed into law Nov. 6, 2009, extended this year. Because the timeline of an and 0.58 percent in 2006. the tax credit of up to $8,000 for economic recovery is unpredictable, the “As bad as the 2009 numbers are, qualified first-time home buyers housing and mortgage landscape for they probably would have been worse if purchasing a principal residence and 2010 remains just as uncertain. not for legislative and industry-related authorized a tax credit of up to $6,500 delays in processing delinquent loans,” for families that have lived in their Delinquencies Saccacio said. “After peaking in July… homes for at least five years and wish to According to the December 2009 we saw four straight monthly decreases purchase a new home. The credit Mortgage Monitor Report released by driven primarily by short-term factors: applies to homes purchased or under Lender Processing Services, one in trial loan modifications, state legislation contract by April 30, 2010. every 7.5 homeowners in the United extending the foreclosure process and States is either behind on mortgage an overwhelming volume of inventory Economic Factors payments or in foreclosure. clogging the foreclosure pipeline.” The Economic Advisory Committee Total delinquencies, excluding of the American Bankers Association foreclosures, increased to a record high Government Initiatives predicts the annualized inflation- of 9.97 percent of all loans in December, The Home Affordable Modification adjusted real GDP growth rate will be representing a month-over-month Program (HAMP) is designed to reduce approximately 3.1 percent throughout increase of 5.46 percent and a year-over- delinquent and at-risk borrowers’ 201
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