Michael Williams, CEO of Fannie Mae, has announced that he is resigning from his multi-million dollar compensated position as soon as a replacement is located. Williams took the job in 2009, and has presided over increasing losses since at Fannie Mae. Former Fannie Mae CEO Daniel Mudd was charged by the SEC in December with securities fraud for misrepresenting the financial condition of the mortgage giant during his tenure.
Jingle Mail on the Rise
Jingle Mail, or strategic default, is the practice of homeowners walking away from mortgages they can afford and mailing in their keys. They’re walking away because they’ve seen their equity disappear, and they’re now in the hole, owing more than their homes are worth.
One recent university study showed that more than 3 out of 10 mortgage defaults in 2010 were by homeowners who could afford to make their payments. That was an 8% rise from 2009. While home prices seemed to be stabilizing this past summer, they began falling again the last half of the year, dropping 7.5 percent in the third quarter of 2011.
A combination of factors influence whether an underwater homeowner decides to strategically default. The greatest motivator is knowing that it’s probable they will need to sell before prices make a comeback, and they either can’t or don’t want to write a big check to get rid of their homes.
Federal Reserve Wants to Do More
Despite many who believe the Federal Reserve is printing money and increasing debt without substantial results in helping the housing market, Federal Reserve officials want to do more to kick-start the housing market.
With unemployment around 8.5% and home prices still falling, the government is trying to come up with ways to help that are actually effective, as some of the past expensive measures don’t seem to have been very helpful.
Big Banks in Trouble Again with the Law
A New York State financial services agency is investigating several major banks for allegedly fraudulently steering homeowners into overpriced insurance policies.
The investigation is mostly centered on “force-placed” insurance. That’s when a homeowner is in financial stress and misses an insurance payment. Their mortgage allows the bank to place emergency force-placed insurance on the home to avoid a period without coverage. In some cases these policies were provided by affiliates of the banks and were very expensive.
Tell Your Rental Tenants Their Credit Benefits from On-time Rent
Last year, Experian, one of the three largest credit reporting companies, added a section to their credit reports showing on-time rental payments. This is raising the credit scores of many people. This year though they’re going to add in negative marks for late rent payment or bounced checks.
Fannie Mae CEO to Resign
Michael Williams, CEO of Fannie Mae, has announced that he is resigning from his multi-million dollar compensated position as soon as a replacement is located. Williams took the job in 2009, and has presided over increasing losses since at Fannie Mae. Former Fannie Mae CEO Daniel Mudd was charged by the SEC in December with securities fraud for misrepresenting the financial condition of the mortgage giant during his tenure.
Jingle Mail on the Rise
Jingle Mail, or strategic default, is the practice of homeowners walking away from mortgages they can afford and mailing in their keys. They’re walking away because they’ve seen their equity disappear, and they’re now in the hole, owing more than their homes are worth.
One recent university study showed that more than 3 out of 10 mortgage defaults in 2010 were by homeowners who could afford to make their payments. That was an 8% rise from 2009. While home prices seemed to be stabilizing this past summer, they began falling again the last half of the year, dropping 7.5 percent in the third quarter of 2011.
A combination of factors influence whether an underwater homeowner decides to strategically default. The greatest motivator is knowing that it’s probable they will need to sell before prices make a comeback, and they either can’t or don’t want to write a big check to get rid of their homes.
Federal Reserve Wants to Do More
Despite many who believe the Federal Reserve is printing money and increasing debt without substantial results in helping the housing market, Federal Reserve officials want to do more to kick-start the housing market.
With unemployment around 8.5% and home prices still falling, the government is trying to come up with ways to help that are actually effective, as some of the past expensive measures don’t seem to have been very helpful.
Big Banks in Trouble Again with the Law
A New York State financial services agency is investigating several major banks for allegedly fraudulently steering homeowners into overpriced insurance policies.
The investigation is mostly centered on “force-placed” insurance. That’s when a homeowner is in financial stress and misses an insurance payment. Their mortgage allows the bank to place emergency force-placed insurance on the home to avoid a period without coverage. In some cases these policies were provided by affiliates of the banks and were very expensive.
Tell Your Rental Tenants Their Credit Benefits from On-time Rent
Last year, Experian, one of the three largest credit reporting companies, added a section to their credit reports showing on-time rental payments. This is raising the credit scores of many people. This year though they’re going to add in negative marks for late rent payment or bounced checks.