BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Modesto and Patterson this summer are preparing to speed the foreclosure process on hundreds of homes because an unusually large number of residents in six subdivisions are delinquent on their Mello Roos taxes. About 145 homes are at risk in parts of the Village I neighborhood in east Modesto and in the Fairview Village development in southwest Modesto. In Patterson, 489 homes are delinquent on their Mello Roos taxes in the Patterson Gardens, Walker Ranch, Miraggio and Sutter Point developments. Residents in those subdivisions could receive foreclosure notices by September because of the accelerated collections process in the special tax districts, Modesto City Manager George Britton and Patterson City Manager Cleve Morris said this week. The Mello Roos taxes are different from the property taxes all homeowners pay. Failure to pay general property taxes would not trigger foreclosure for five years. The concentration of delinquent taxes in those subdivisions is so great that a clause was triggered in the bonds that forces the agencies to move to collections after just one missed tax payment. Yes that is just a couple of small subdivision in one state, but the same mess is playing out in state after state. I simply do not have time to list them all. But the important point is: as go rising delinquencies, so goes foreclosures. Therefore it should be no surprise that the The percentage of U. S. mortgages entering foreclosure in the first three months of the year was the highest in more than 50 years, according to the Mortgage Bankers Association. As the association released its numbers, the Federal Reserve held a hearing to determine whether regulators could do anything to crack down on abusive lending practices, which have exacerbated the problem. The problems weren't uniformly spread around the country. Doug Duncan, chief economist for the mortgage bankers group, said the rate of new foreclosures would have dropped had it not been for big jumps in California, Florida, Nevada and Arizona. He said high rates in Ohio, Michigan and Indiana also drove up the overall percentage of loans in foreclosure. Doug Duncan, chief economist for the mortgage bankers group, said the rate of new foreclosures would have dropped had it not been for big jumps in California, Florida, Nevada and Arizona. Proof of income from borrowers. No penalties for early mortgage payments. And a guarantee that property taxes and insurance bills are covered. The Federal Reserve is considering these and other measures as a way to remedy the troubled market for high-risk, or subprime, mortgages. The central bank held an all-day hearing on the matter Thursday. Lawmakers are pushing the Fed to act as late payments and new foreclosures on adjustable-rate home mortgages made to people with spotty credit climbed to all-time highs in the first three months of the year. “We have had more than enough talk,” Sen. Sherrod Brown, D-Ohio, said in a statement. His state has been hit particularly hard by a wave of foreclosures. “The Federal Reserve should have acted long ago to stamp out the abuses we have seen in Ohio and across the country.” “Certainly the headlines haven't been pretty,” President Bush's housing secretary, Alphonso Jackson, said in a speech at a mortgage market conference in Washington. Jackson called the current housing slump “a needed correction” of an overheated market, which still has room to grow, he said. Foreclosure filings were up 90 percent in May compared with last year according to RealtyTrac. Congress is just acting now. As for Alphonso Jackson's ' ” I have to ask: was he admitting we needed a correction a year ago? Two years ago? Somehow in the aftermath of massive delinquencies and foreclosures we find out this was ' Housing and Urban Development Secretary Alphonso Jackson has a message to sub-prime lenders: 'We need to reach out' to African-American, Hispanic and other first-time buyers with better loan concepts, more flexible guidelines and quicker service, said Jackson in an interview. 'I am absolutely emphatic about winning back our share of the market' that has slipped away to subprime lenders.' If that is not one of the dumbest things anyone in government ever said, what is? Since when is it the role of government to be ' We do think if you're dumb enough to buy a home builder (share), you ought to buy us,' Ryland Group Inc. Chairman and Chief Executive Officer R. Chad Dreier, told an investor audience at the JP Morgan Basics and Industrials Conference this week The content on this site is provided as general information only and should not be taken as investment advice. 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