Month: August 2023

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The two most hyped technologies in recent years – blockchain and artificial intelligence – may solve for each other’s greatest drawbacks.

Blockchain technology, which in layman’s terms is a registry of data or transactions, could be the answer to how different industries, including home finance, track and keep records of its machine learning or AI decisioning. The possibilities of how the two technologies can mesh with one another is being actively discussed in technology circles, especially in the financial sector, industry stakeholders say. 

Some predict fairly soon technology companies using AI will look to the online ledger to outline their methodologies and data usage, creating “snapshots of data” visible to those with access. 

This pairing is now getting attention because “in the last two to three months, the whole discussion has shifted towards transparency, especially because of ChatGPT,” said Subodha Kumar, professor of data science at Temple University.

Grouping the technologies could answer the top-of-mind question of how to make the actions of AI more explainable by potentially opening up the “black box,” about which the Consumer Financial Protection Bureau has issued several warnings.

“Companies must take responsibility for the use of these tools,” CFPB director Rohit Chopra said in an interagency statement co-released with the Civil Rights Division of the Department of Justice, Federal Trade Commission and the Equal Employment Opportunity Commission in April. “Unchecked AI poses threats to fairness and our civil rights.”

But blockchain is not a panacea. Industry experts warn that the tech will not solve ethical concerns around machine learning and AI.

Technologists in the mortgage industry point out the inherent compatibility of blockchain and AI make them destined to come together, sooner rather than later.

Both have positives that can complement one another, said Prabhakar Bhogaraju [PB], the vice president of financial fitness app Finlocker.

“AI’s strength is finding abnormal patterns of what [may at first] look like normal data and it does this by recognition,” said PB. “Blockchain on the other hand has some strengths on data provenance, data lineage and absolute control on data, which itself is immutable.” 

He noted that “AI can help in optimizing how blockchain resources themselves are used [and] blockchain can help AI in providing more traceability of the data sets on the model iterations themselves.”

“But that’s still, in my opinion, very early stage matchmaking,” PB added.

Being able to view what is saved on blockchain, with the proper approval, can also be the key to battling fraud, industry stakeholders say.

“If it’s your IP nobody can touch it or change it and any variant of your IP will actually look like a variant 100% of the time,” said PB. “So blockchain can help fill one of the gaps that AI has, which is this deep-fake kind of problem.”

Blockchain could be effective for ensuring security in the property valuation space, Leah Price, co-chair of MISMO’s Emerging Technology community and independent advisor to fintechs, predicts.

“With the proliferation of deep fakes, how is anyone able to tell what is true?” Price said. “If you think of a property valuation and there are photos of a property, how exactly do you know that the photos haven’t been manipulated? It’s very easy to get a photo of a house and cover up potential problem areas.”

“But with an appraisal, you could put a hash and a timestamp on the photos, the data and documents to make sure that they’re authentic and haven’t been altered,” she added. “Blockchain has been designed in a way that you can always tell what’s true and authentic.”

The ledger technology may also have an impact on disclosures of what data AI systems are analyzing and relying on to make their lending decisions. 

Per Subodha, participants on the blockchain “can see how the data collection has been transformed.” 

“When a system is built out on the blockchain it allows different people to share information like who is putting something in and why and these types of things can be checked when somebody’s trying to mess with the system,” he said.

“People can see what the data [used to build a system] actually looked like and [from that] people can see the data itself was biased and some correction can be made based on that,” Subodha added.

The transparency provided by the blockchain can potentially allow permissioned industry participants to see what went into the underwriting of a loan, added Price.

“You could take all the inputs, you can have hashes on them and as a loan is originated, that data can be put on the chain,” Price said. “As the loan is sold into the secondary market, various participants would have access to that loan and see that a borrower’s credit report is authentic and that their income report is authentic, so that’s the kind of transparency that a blockchain would bring.”

But before blockchain and AI come together, some kinks need ironing out.

For example, when you create a see-through box, where all of your data is accessible to a third party, you also amplify the risk of fraud, technologists interviewed say.

“Blockchain helps you in creating more security, but at the same time, the blockchain also creates transparency, but with more transparency there is a chance people can misuse the data,” said Subodha. “So that’s going to be a very interesting challenge going forward for the financial industry…” 

Apart from potential fraud scenarios, being more open with data usage and how a company builds its internal code can also reveal a company’s well-guarded trade secrets, which could be a barrier for implementation in the financial sector, some warn.

Brett Brumley, CEO of Lender Toolkit, noted that if the two technologies come together “there needs to be a delicate balance between transparency and protecting a company’s proprietary information.” 

“Disclosing the exact coded variables could reveal too much about how the system works and remove competitive advantages,” said Brumley. “At the same time, too much information could actually put mortgages at risk. If you post too much information to a blockchain, you can actually make investors very nervous by sharing normal changes that are expected in the manufacturing process of a loan.”

Last but not least – though not necessarily a barrier – blockchain will not solve the problem of bias, which Rohit Chopra, director of the CFPB warns “poses threats to fairness and our civil rights.”

“Blockchain in itself is not going to make the data better or algorithms better,” said Subodha. “It cannot and does not have the capability to do that, but it creates more transparency, and more involvement of people can magnify the understanding of results.”

Going forward, the ledger technology will not be the only tool used by the financial sector to disclose their use of AI. It is believed regulators will roll out guidelines in the near future.

“[It is uncertain whether] every AI will require a blockchain kind of solution, or model provenance, but I do think blockchain definitely should be a part of the solution kit,” PB said. “One of the business constraints in these two technologies moving faster than they are is we don’t have the right regulatory governance yet.” 

Source: nationalmortgagenews.com

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[UPDATE] This article was updated on 8/13 to include a statement from the FHFA.

Refinance mortgage loans sold to Fannie Mae and Freddie Mac after Sept. 1 will include a new adverse-market refinance fee of 0.5%, the two government sponsored enterprises announced Wednesday night. This fee will be assessed for both cash-out and no-cash-out refinances.

“In light of market and economic uncertainty resulting in higher risk and costs incurred by Fannie Mae, we are implementing a new loan-level price adjustment,” the letter from the larger of the two government-sponsored enterprises said.

Freddie Mac’s bulletin specifically cited the pandemic.

“As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new Market Condition Credit Fee,” it said.

With refinance activity rising to 65.7% of total applications – posting 12 straight weeks of year-over-year growth – the fee’s effects will be felt immediately.

For example, for a loan of $291,300 – the median home price in the second quarter – that .5% will cost lenders $1,456. The Sept. 1 sell date means some of the refis impacted are already locked and can’t be adjusted at this point, so lenders will have to pay the fee. If the deal isn’t locked, the cost likely will be passed on to the consumer.

The new credit fee doesn’t apply to purchase mortgage loans.

When reached for comment, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, gave this statement: “Based on their projected COVID-related losses, Fannie Mae and Freddie Mac (the Enterprises) requested, and were granted, permission from FHFA to place an adverse market fee on mortgage refinance acquisitions.”

The Mortgage Bankers Association issued a statement calling the new fee “ill-timed” and said it runs counter to the goals behind one of the directives signed by President Donald Trump on Saturday to support homeowners.

“Tonight’s announcement by the GSEs flies in the face of the administration’s recent executive actions urging federal agencies to take all measures within their authorities to support struggling homeowners,” the MBA statement said.

“Requiring Fannie Mae and Freddie Mac to charge a 0.5% fee on refinance mortgages they purchase will raise interest rates on families trying to make ends meet in these challenging times,” it said. “This means the average consumer will be paying $1,400 more than they otherwise would have paid.”

The timing of the announcement will result in consumers who have loans already in process being faced with unexpected costs, MBA said.

“Even worse, the Sept. 1 effective date means that thousands of borrowers who did not lock in their rates could face unanticipated cost increases just days from closing,” the trade group said.

“The housing market has been able to withstand many of the most severe effects of the COVID-19 pandemic,” MBA said. “The recent refinance activity has not only helped homeowners lower their monthly payments, but it is also reducing risk to the GSEs and taxpayers. At a time when the Federal Reserve is purchasing $40 billion in agency MBS per month to help reduce financing costs for mortgage borrowers to support the broader economy, this action raises those costs and undermines the Federal Reserve’s policy.

MBA called on the FHFA to reverse the decision.

“This announcement is bad for our nation’s homeowners and the nascent economic recovery,” the MBA statement said. “We strongly urge FHFA, which had to approve this policy, to withdraw this ill-timed, misguided directive.”

Source: housingwire.com

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Apache is functioning normally

Conventional wisdom says its best to list your home in spring if you want to get the most bang for your buck.

And by that, I mean sell your home in a relatively short amount of time for a good price.

After all, once winter thaws there are typically a lot more buyers on the lookout for their dream home, which means bidding wars and attractive offers.

But a new analysis from Redfin (yes, them again) revealed that winter is in fact the best season to list and sell a home, at least if the past couple years are any indication.

The real estate brokerage looked at listings from March 22, 2011 to March 21, 2013, and found that homes sold more often, faster, and for more money during winter than any other season.

For example, 65% of winter listings (Dec. 21 – March 21) were likely to sell within six months, compared to just 56% of non-winter listings.

And the average sale-to-list price ratio was -2.3% for winter listings, compared to -3.5% for non-winter listings. Amazingly, summer was the worst season in this department.

The average days on market were also significantly lower for winter listings, at 26 compared to 33 for non-winter months.

Warmer Winter Wonderlands Even Better

  • Redfin found that homes sold faster in winter
  • In areas that are warm year-round
  • But in the cold parts of the country
  • The numbers were lower as expected

In places where winters aren’t all that cold, the likelihood of selling a home quickly was strongest in winter.

In red-hot Phoenix, homes had a 75% chance of selling in six months when listed in winter. That compares to 70% in spring, 69% in fall, and 68% in summer.

Several large metropolitan areas in sunny California exhibited similar numbers.

And though the numbers were much lower in bitter-cold areas of the nation, including Boston, Chicago, and Washington DC, winter was still outperforming other seasons in this key metric.

So Why Is Winter a Winner?

  • If you’re wondering why winter works wonders
  • It’s because only the serious buyers come out when it’s cold
  • Summer brings with it lots of lookie loos
  • Who may just make you spin your wheels

Well, the takeaway from Redfin was that only “serious buyers” come out to play in winter, while the lookie loos typically waste everyone’s time during the warmer months, namely spring and summer.

Put simply, winter home selling is all about getting the deal done, not testing the waters or walking into an open house because the home looks “cute.”

At the same time, there will always be individuals that need to buy a home, no matter what the season. Things like job relocation or a growing family come to mind.

Redfin noted that this winter could be especially strong, seeing that there’s a lot of fear about mortgage rates rising above 5% in 2014.

So last minute shoppers might be trying to beat the expected interest rate rise before it’s “too late.”

Yes, people seem to think mortgage rates in the 4-5% range is the norm, so avoiding the dreaded 5% and up rate will be paramount for today’s buyers.

For the record, there are generally fewer listings during the colder months, but there are also fewer prospective buyers.

Additionally, winter sellers might be more desperate to unload their homes, making it a good time to land a gem of a property while avoiding a bidding war.

I’d just take this analysis with a grain of salt, given how weird the housing market has been over the past couple years. Similar reports say it’s best to list in spring to yield the highest sales price.

Read more: Home selling tips to get top dollar.

Source: thetruthaboutmortgage.com

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Friday, April 7, marked a day for celebration. After four years of Congress hiking Veterans Administration (VA) so-called “Bluewater Navy” mortgage loan fees as an offset to pay for other critical veterans’ benefits, Congress has finally let those excessive VA mortgage loan fees expire.

This good news for homebuyers comes on top of FHA action in late February to cut the annual premium on FHA loans by 30 basis points, from 0.85% to 0.55%, saving most families around $800 starting last March 20. And it follows actions over the last year by FHFA to cut Fannie Mae and Freddie Mac LLPA fees for certain first-time homebuyers.

What does the VA loan fee reduction mean for veterans and active-duty families using their no-down-payment mortgage, an “earned benefit” thanks to their uniformed service to the nation? It means that first-time buyers using VA loans will see guarantee fees fall 15 basis points, from 2.30% to 2.15%, and other buyers will see a 30-basis point improvement, from 3.60% to 3.30%. For these families, savings will range from $600 to $1,200 saved starting this week. 

The expiration of the higher VA mortgage fees was not a sure thing and should not be taken for granted going forward. Last November, the Community Home Lenders of America (CHLA) wrote a Letter to top members of Congress asking Congress to let these fees expire. 

Why was CHLA concerned? Because just one year earlier in November 2021, Congress, in their perpetual hunt for “offsets” to pay for other federal spending, hiked fees on Fannie Mae and Freddie Mac loans by $21 billion over 10 years to help pay for part of the cost of the totally unrelated $1 billion infrastructure bill. And technical budget offset concerns played a big role in delaying FHA’s action in cutting FHA premiums.

Meanwhile, Congress and the president are gearing up for a fight over spending cuts in connection with an increase in the debt limit. Any revenue source that has been used in the past could be a target. But at least for now, veteran homebuyers and homeowners are the clear winners.

Charging fees higher than needed for insurance purposes has prevented some qualified families on the margin from being able to escape rents that have been rising faster than incomes. Given that the VA (and FHA) loan programs serve a higher proportion-of first-time buyers and lower-FICO score buyers than conventional loans, reducing these costs helps redress wealth inequities over time. 

To be clear: these loan fee reductions are not some giveaway to families that ought not buy a home — the reductions redress the issue of artificially high fees keeping qualifying families from buying a home. CHLA supports actuarially-based insurance fees to ensure programs remain solvent and proper insurance pricing that balances both risk and opportunity.   Mortgage loan fees should not be higher than needed to safely run government-backed lending.

So, a thank you to FHA for making FHA mortgage loans more affordable, a thank you to FHFA for making GSE mortgage loans more affordable, and a thank you to Republicans and Democrats in Congress for making VA mortgage loans more affordable.

The year is yet young, but this mortgage news for young families has so far been positive.  CHLA stands ready to work with Washington stakeholders to keep the good news coming.

Rob Zimmer is Director of External Affairs for the Community Home Lenders of America (CHLA).

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the author of this story:
Rob Zimmer at [email protected]

To contact the editor responsible for this story:
Sarah Wheeler at [email protected]

Source: housingwire.com

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Is the housing shortage merely awful, or jaw-droppingly catastrophic? Depends on who you ask. The Harvard Joint Center for Housing Studies estimates that there’s a deficit of 1.5 million dwellings. Realtor.com says that we’re 2.3 million units short. Zillow says it’s 4.3 million, and the National Association of Realtors (NAR) guesses we’re shy 5 million to 6 million homes.

The Biden administration recently announced several programs to goose the construction of affordable housing. The efforts won’t situate everyone into a decent place that they can afford to rent or buy. But over the next few years, the programs could ease housing burdens for hundreds and maybe thousands of households.

The problem is that the federal government is engaging the situation with a polite nudge when true progress requires a rude shove. If Congress would increase funding and the White House would apply more imagination, the impact could be bigger.

Two main causes for the housing shortage

In five years, the median resale price of an existing home went up 51%, to $406,700 in July 2023, according to the NAR. Prices are too high for many would-be buyers. In early 2022, Freddie Mac polled Gen Z adults (ages 18 to 25 at the time), and 34% of them agreed that “homeownership at any point seems out of reach financially.” Mortgage rates have zoomed since that poll was conducted, making homes even more unaffordable.

Housing experts blame the shortage of low-cost housing on two primary factors: the cost of land and the expense of borrowing money to build. High lumber prices and a scarcity of construction workers are problems, too, but land costs and financing are the biggies that the Biden Housing Supply Action Plan addresses.

It’s expensive to develop and build

When builders talk of land costs, they mean more than the price of vacant acreage. They also refer to costs imposed by local governments: impact fees, zoning rules that limit the size and spacing of new homes, and wasted time while projects are delayed by legal challenges and political opposition.

It’s often a long, costly slog to get approval for housing, especially for dwellings for low-income households, apartments and other multifamily units. As the Harvard Joint Center puts it in its 2023 report on the nation’s housing: “The national housing shortage is also the product of local restrictive zoning policies and other regulatory barriers that make it difficult to build a range of housing types at different price points.”

Cities overwhelmingly zone land for single-family houses, effectively banning duplexes and apartments. Minimum lot sizes mean builders can construct only so many houses on a block, so they build expensive homes to maximize profits.

“Considering everything, they are saying, ‘Well, only way to make the numbers work, we are focusing on this larger-size home,'” the NAR’s chief economist, Lawrence Yun, said in a C-SPAN interview in early August.

Feds need to be firmer with local governments

Elected local leaders set the rules that drive up the cost of housing in communities blue and red. Several states, from California to Connecticut and Montana to Maine, have responded by restricting local governments’ land-use powers in order to promote multifamily and affordable housing.

Some housing advocates think the federal government should step in and compel local governments to make room for less expensive housing, such as apartments. In a March 2021 paper, Overcoming the Nation’s Daunting Housing Supply Shortage, Jim Parrott of the Urban Institute and Mark Zandi of Moody’s Analytics wrote that “federal policymakers should push communities to reorganize their approach to development from the ground up.”

The Biden administration adopted this approach. Its flagship program, Pathways to Removing Obstacles to Housing, dangles an $85 million pot of money. Local governments can receive grants from it to implement reforms that allow for denser housing, to plan transit-oriented development, to streamline permitting and to address gaps in financing, among other things.

It’s a well-meaning effort, with two problems: It lacks bite and it’s stingy. (The administration requested $10 billion and Congress appropriated $85 million.)

“It’s a nice idea, but, you know, we need some stick with the carrot,” says David Dworkin, president and CEO of the National Housing Conference. He means that the effort would be more effective if the federal government would withhold money from cities that refuse to relax zoning. Such an approach worked in the 1980s, when the feds threatened to deny highway funding to states that refused to raise the drinking age to 21. That was a shove, not a nudge — and it worked.

Playing hardball might yield results with housing, Dworkin says. “This is about having apartment buildings in communities, and duplexes or quadplexes, and the failure of communities to address the political pressure of residents who say, ‘I’ve got mine, no one else gets theirs,'” he says.

A miserly response to an expensive problem

As for the amount of money that Congress approved: In their paper, Parrott and Zandi imagined a federal program that would hand out $50 billion per year for 10 years to cities that “ease regulations and other building restrictions.” The generous program would increase affordable housing by 275,000 units per year, they estimated.

If $50 billion per year for 10 years would help solve the affordable housing shortage, the $85 million Pathways to Removing Obstacles to Housing program is laughably small. It’s as if Parrott and Zandi presented a $500 repair estimate, and Congress fished three quarters and a dime out of its pocket. If $50 billion in funding would result in 275,000 affordable homes, as Parrott and Zandi estimate, then $85 million would be good for 468 affordable homes.

The Department of Housing and Urban Development (HUD) said it will ask Congress for more funding.

Other programs address the housing shortage indirectly. The Department of Transportation will chip in money to local governments that extend public transportation to and from affordable housing, partly through zoning reform. The Commerce Department, when handing out Economic Development Administration grants, will favor development projects that allow people to live closer to work.

Making borrowing easier for developers

The other major way to stimulate the construction of affordable apartments is by making it easier and faster for builders to borrow money to fund their projects. HUD has come up with two solutions.

First, it has increased the threshold of what constitutes a “large loan” to build or rehabilitate apartments. The increase from $75 million to $120 million will reduce paperwork and costs to build or rehab large apartment complexes.

Second, HUD removed a $25 million cap on the size of FHA-insured loans on apartment construction that uses a streamlined Low-Income Housing Tax Credit (LIHTC). This means more apartment complexes will be eligible for the LIHTC, which reduces investors’ tax bills.

These tactics — loosening the purse strings to boost apartment building — might hasten construction for projects that have already won approval. But in the long term, this country can’t solve its housing shortage if cities and towns continue to use regulations to restrict new construction. If paying them to cut red tape doesn’t work, then state and local governments might have to withhold funding.

Source: nerdwallet.com

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By Ellen Coughlan For Mailonline

Updated: 05:26 EDT, 26 August 2023

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For couples who live together décor choices could pose an interesting challenge for lovers with different aesthetics.

Rebecca Snowden, interior style advisor at Furniture And Choice, has teamed up with Billy Reid, relationship coach of Get Your Dream Partner, to share just what your home décor habits reveal about your relationship.

Whether you have recently moved in with your new squeeze or are years into co-habiting with your life partner your home decor can say a lot about your relationship. 

Rebecca said: ‘Moving in with a significant other is an exciting milestone in many people’s lives and is a huge step to showing your commitment to that person. 

‘Make sure to take time when decorating your house together, enjoying the process and reaping the benefits of quality time spent together. Decorating your house with love will ensure you have a home for years to come.’

Rebecca Snowden, interior style advisor at Furniture And Choice, has teamed up with Billy Reid, relationship coach of Get Your Dream Partner, to share just what your home décor habits reveal about your relationship (stock image) 

1. The always work-in-progress home

Means: unity is needed to bring balance

‘An unfinished home could be symptomatic of a relationship that is looking for unity in terms of a shared goal and purpose. 

‘It’s key for both partners to be on the same page when approaching any task, especially one as big as a home renovation, so it’s important to ensure there’s the right communication tactics and desire to progress in place. 

‘Setting time aside to finish the project, and spend time together whilst doing it, can be key for seeing this through to the end.’

2. The show home

Means: respect and mindfulness

‘The best adjusted couples tend to have organised rotas, schedules for chores and housekeeping and even simple things like maintenance when things break around the home, where each partner is mindful of what the other has done and will contribute in another equal or noticeable method.

‘These relationship structures are as much about fairness as they are about respect, mindfulness and conscientiousness. 

‘It also can be incredibly sexy having a partner anticipate a situation and step into executing a chore you were not able to do unprompted. 

‘Don’t sleep on chores and organisation, it can help other areas of the relationship too.’

3. The functional home

Means: appreciation and understanding

‘In couples where they appreciate the same things, function can suit both as much as appearance and homeliness can. 

‘Where the couples are usually split, one couple may concede over the other for their wants if they feel more strongly about it. 

‘One person may prefer to have all utensils out of sight but is not necessarily against pots and pans on display if there is an aesthetic visual benefit.

‘Often this battle is more about the tidy against the untidy, the uncluttered against the hoarder and issues can be dispersed by each respective partner taking time to familiarise oneself with the other’s bugbears and not to poke them.’

4. The knick knack home

Means: making memories is key

‘Where some may see clutter, you might see trinkets that act as a reminder of the happy years you’ve spent together. 

‘Whilst a busy interior could potentially reflect a lack of organisation or time, ensuring you’re both spending time on household activities can stop tasks from building up and offer up a chance to be attentive to your living space.

‘There’s one thing for certain, having a home filled with bits and bobs that have sentimental value can really help in creating a comforting home that will show off your relationship to anyone that enters. 

‘Just be careful not to over-do it as this can mean more upkeep is required which can have more impact on your relationship.’

5. The up-cycled home

Means: passion and creativity

‘If upcycling is a shared passion, then this can be an amazing bonding process for a couple. Shared values with regard to the environment, thrifting and recycling can represent a strength in a relationship.

‘It can be fun to look for new furniture and new places to find that furniture. The creativity involved to make one thing into another, can become a social enterprise as well as financially more conscious.

‘Equally, if one partner cares more than the other it can cause friction. Shared values, respect and communications should always be the first step before embarking on any purchasing or designing with a shared property or living space. 

‘Introduce your partner gently into the things you care about if they are alien to them.’

Source: dailymail.co.uk

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While mortgage delinquencies inevitably continue to rise, foreclosure starts in relation to those figures have fallen, according to the FHFA September Foreclosure Prevention Report released today.

The report, which covers Fannie Mae and Freddie Mac’s 30.7 million residential mortgages, revealed that loans 60+ days delinquent (including those in BK and foreclosure) increased to 2.21 percent of the total portfolio as of the end of the third quarter.

That figure is up from 1.46 percent as of the end of the first quarter and 1.73 percent as of June 30.

Despite the rise in borrowers falling behind on their mortgage payments, foreclosure starts as a percent of loans 60+ days delinquent fell from 8.29 percent in the first quarter to 7.12 percent in the third quarter.

And loans for which foreclosure was completed stabilized at 2.55 percent between the second and third quarter after rising from 2.41 percent in the first quarter.

Fannie Mae’s Homesaver Advance Making Numbers Look Pretty?

However, loan modifications completed fell from 15,372 in the second quarter to just 13,450 in the third quarter, though loans reinstated via Fannie’s Homesaver Advance program skyrocketed, and accounted for 45 percent of all loss mitigation activity.

But it’s unclear whether an unsecured personal loan extended to an ailing borrower to temporarily cure a first lien loan will be enough to head off foreclosures over the long haul.

The number of more favorable (grain of salt) loan modifications completed in the third quarter have actually fallen from both the first and second quarter, and averaged just over 4,000 a month in the latest quarter.

Meanwhile, completed foreclosure sales averaged more than 15,500 a month in the third quarter, up about 5,000 per month from earlier this year.

So unless Homesaver Advance sees some serious long-term success, these seemingly optimistic numbers are nothing more than a false calm before a very real storm.

And the numbers look to get even more muddled thanks to the foreclosure moratorium imposed by the pair over the holidays.

Source: thetruthaboutmortgage.com