Securitization Revamp

US dollar bill with bandaidsThe Federal Housing Finance Administration announced on Monday that it plans to establish a new business entity that will be jointly owned by mortgage giants Fannie Mae and Freddie Mac. Their goal is to create a new securitization infrastructure that will revamp the US housing market and prevent future “bubbles” in the market caused by misaligned incentives, shoddy lending, and reckless money grabbing.

FHFA Director Edward DeMarco said the enterprise will initially be owned and funded by Fannie and Freddie, but the overall goal is to create something of value that could be sold or used as a foundational element of the mortgage market in the future. The entity is designed to be flexible in order to meet the goals and direction of policy makers initiating housing finance reform.

FHFA hopes that this rebirth of securitization will allow banks to lay off some of their risk in granting mortgages and prevent a repeat of the last housing crash.

Source: Forbes

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Florida has the Nation’s Highest Foreclosure Rate

Florida foreclosureFlorida now has the highest foreclosure rate nationwide, and it is becoming a major problem.

Of the 10 metropolitan areas with the highest foreclosure rates, seven are in Florida. In 2012, foreclosure filings jumped 20 percent, and one in five mortgages in the state are currently delinquent.

According to the Orlando Sentinel, Seminole County Judge Alan Dickey had, at one point, scheduled 300 foreclosure cases in three days. He said if everyone showed up, he would have enough time for 30 seconds per case.

The foreclosure process currently takes more than 600 days to run its course in Florida, which is adding to the problem of the courts being backlogged.

The latest bill introduced to correct this problem, HB 87, was filed in Tallahassee at the beginning of January, but it is already being attacked by consumer advocates. This is the third attempt by the state legislature to correct this problem, and each has been met with consumer outcry.

If you feel like you may be facing foreclosure, don’t wait until it is too late and you are sucked into the court system; contact Boyer Law Firm today to discuss your options. We have successfully helped clients lower their payments and avoid foreclosure through either an in-house loan modification program or government program.