Wells Sees 60-70% Loss Severity in Option-ARMs

FHFA launches pilot REO property sales The winning bidders for the pilot program have been selected, according to the Federal Housing Finance Agency (FHFA), and bulk sales of the first foreclosed properties should be completed during the third quarter of this year. The identities of the winning bidders will be released publicly at that time, officials indicated.

Current State of CRE Lending for CMBS Marielle Jan de Beur Senior Analyst Head of Structured Products Research CMBS and Real Estate Research marielle.jandebeur@wachovia.com (212) 214-8047 May 13, 2010 Please see the disclosure appendix of this publication for certification and disclosure information

Ginnie Mae Setting Historic Pace in August Wells Sees 60-70% Loss Severity in Option-ARMs. GMAC Suspends All Foreclosures Nationwide – Shadowproof – GMAC, the struggling financing arm of General Motors, whose mortgage arm holds $26 billion of mortgages, just suspended foreclosures in 23 states in a harried, chaotic policy shift. Ally Financial.

Jobless claims fall by 12,000 filings U.S. jobless claims fall, productivity sags The number of Americans filing new claims for unemployment benefits fell last week, showing little sign of a pick-up in layoffs in the wake of a slump.

Ginnie Mae Setting Historic Pace in August Wells Sees 60-70% Loss Severity in Option-ARMs. GMAC Suspends All Foreclosures Nationwide – Shadowproof – GMAC, the struggling financing arm of General Motors, whose mortgage arm holds $26 billion of mortgages, just suspended foreclosures in 23 states in a harried, chaotic policy shift. Ally Financial.

But we wouldn’ t be surprised to see 70 percent default with 70 percent severity, a 49 percent loss or $58.6 billion loss-$34.3 billion more than the write-down taken to date. Home Equity Portfolio Our second-biggest area of concern is Wells Fargo ‘s home equity portfolio, which grew by approximately $55 billion (more than 50 percent) with.

Private sector gains 130,000 jobs in October Employers in the private sector added 130,000 new jobs to their payrolls this month, the ADP National Employment Report showed Wednesday. That was the lowest reading since April and was below.Treasury: 99% of TARP investments paid back Bailout Scorecard | Eye on the Bailout | ProPublica – While the Treasury has paid out money to 978 recipients, only 780 of those received funds via investments meant to return money to taxpayers. The rest received subsidies through TARP’s housing programs – that money (so far totaling .1 billion) isn’t coming back.

Research by Wells Fargo projects a high rate of failure in Option ARMs over the next several years, but it does not expect this to have a significant impact on home price appreciation. While foreclosure sales are expected to peak next year, the report authors believe the worst of the damage has.

Excel Magic Trick 407: Amortization Table W Variable Rate Wells Sees 60-70% Loss Severity in Option-ARMs Tagged with: applying for a loan modification bank of america bank of america loan modifications bank of america success story citibank david stern lawfirm diana olick economic recovery economy fannie mae find the investor that owns my loan find the trust that owns my loan foreclosure crisis.

Wells Fargo researchers expect cumulative losses on prime ARMs to range from 2% among ’04 vintages to 6% among ’07 vintages. Cumulative losses should range between 6% and 11% among Alt-A/B ARMs.

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