Federal Housing Finance Agency Mortgage Metrics Report was released today, including the Real Estate Owned (REO) Acquisitions. During first quarter 2008, REO acquisitions averaged 10,054 per month with 5,406 classified as prime and 4,648 classified as nonprime mortgage properties. Sounds pretty horrible, doesn't it?
Do the numbers released today by the Federal Housing Finance Agency (FHFA) in this report, the agency that is the conservator of Fannie Mae and Freddie Mac operations, reflect what you are seeing/hearing in the news? This report shows in 1st half of 2008, more of the homes these enterprises received back through foreclosure proceedings were due to defaulted Prime loans - good creditworthy borrowers! - not Subprime loans.
Another noteworthy item I found of interest in this report is that of the $5.2 Trillion dollars the enterprises have in the 30,197,018 outstanding mortgages they currently service, 2.63% are 60 days or more delinquent. Absolutely devastating for the families affected, but do these numbers warrant the continual bombardment by the media? I don't think so!
Another factor we don't hear/see reported very often is the number of homes in the United States that have nada/zip/zilch owed against them. (Page 178 of the American Housing Survey for the United States: 2007)
Let's hear more about the THIRTY-THREE PERCENT OF OWNER OCCUPIED UNITS THAT ARE OWNED OUTRIGHT WITH NO MORTGAGE AGAINST THEM. And while they're at it, pipe up some more about the 97.37% of U.S. Mortgages that are NOT IN DEFAULT. Happy to be homeowners! A much rosier picture, don't you think?
Folks?...Don't believe all you hear!
See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com
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