Following 45% Collapse, Mortgage Applications Are Back To 2011 Lows

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The One Chart That Proves We’re Not … And Never Have Been … In A ‘Recovery’


Following 45% Collapse, Mortgage Applications Are Back To 2011 Lows (ZeroHedge, July 17, 2013):

For the 9th week of the last 10 mortgage applications fell (led by refis – down 55% from their peak). Now down an incredible 45% from its May highs – the largest 10-week plunge since December 2010 – overall mortgage activity is languishing around the lowest levels of the post-recession ‘recovery’. Year-over-year, applications have dropped 44% which is close to the worst on record as applications and mortgage rates track one another in their ‘whocouldanode’ perfectly correlated manner. It seems – for all those blinkered pollyannasgiven this morning starts and permits disaster, that home sales are the next shoe to drop and judging by the empirical relationship with apps and rates, the ‘surprise’ could be significant for many who remain hopeful.

Not pretty at all…

Insanity: How To Buy A Home In Martha’s Vineyard With Zero Money Down

American Insanity: How to Buy a Home in Martha’s Vineyard with Zero Money Down (Liberty Blitzkrieg, June 5, 2013):

The absurd new housing bubble created by Banana Ben Bernanke’s cheap money, private equity slumlords and crony foreign oligarchs looking to launder their ill-gotten funds, continues to provide what would be hilarious headlines if only they weren’t so sad.  In the following story, we find that courtesy of the Department of Agriculture (USDA), the struggling folks on Martha’s Vineyard have access to zero money down home loans.  The USDA you ask? Well, it turns out that the “entire island is designated as a rural area eligible for a USDA loan.”  Why do we even have a government at this point?

From CNBC:

The zero down mortgage is back—in Martha’s Vineyard.

Ira Stoll at the Future of Capitalism bloghas come across an article on “Home Buying 101″ in the spring of 2013 “Real Estate & Homes” supplement to the Vineyard Gazette. A local mortgage broker by the name of Polly K. Bassett is quoted as touting how.

Bassett, the “co-owner and a broker of Martha’s Vineyard Mortgage Company, L.L.C., said: “We have access to a wide range of programs such as USDA, which is a program where you can put no money down, 100 percent financing, and we also do a 97 percent financing with three percent down….There are a lot of programs out there for people buying their first home.”

Read moreInsanity: How To Buy A Home In Martha’s Vineyard With Zero Money Down

Bank Of Ireland Doubles Mortgage Rates, Homeowners Fear More To Come

Bank Of Ireland Doubles Mortgage Rates, Homeowners Fear More To Come (ZeroHedge, May 2, 2013):

With the Bank of England cutting its wholesale interest (bank) rate to historic lows and now the ECB slashing 50bps off its key rate (as well as remonstrating on the reduction in fragmentation across European nations), it is perhaps perplexing (or simply too obvious) that a bank would raise its mortgage rates. As the Daily Mail reports, government-owned Bank of Ireland (BOI) doubled mortgage rates for 13,500 customers in the UK leaving homeowners with huge increases in their monthly payments. The bank, exploiting small print in the legacy mortgage contracts, will hike the interest cost for 1-in-14 homeowners from 2.25% to 4.99% (raising the spread over the bank rate on these loans from 1.75% to 4.49%). Anger is rife as customers complain “it’s all very frustrating,” adding that they thought this was a ‘tracker’ mortgage but BOI defends their massive rate hike on increased funding costs and the need to maintain higher levels of capital. The disconnect between wholesale gorging provided by the Central Bank and wholesale gouging of the real economy grows ever wider it seems.

Via The Daily Mail,

Thousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight.

will affect some 13,500 UK customers,

Read moreBank Of Ireland Doubles Mortgage Rates, Homeowners Fear More To Come

Marc Faber’s 50 Minute Lecture On Virtually Everything: ‘Keynesians Like Paul Krugman Should Go And Live In North Korea’ (The Bubble Film Interview)

Marc Faber: “Paul Krugman Should Go And Live In North Korea” (ZeroHedge, Dec 13, 2012):

If there is one thing better than Marc Faber providing a free, must-watch (and listen) 50 minute lecture on virtually everything that has transpired in the end days of modern capitalism, starting with who caused it, adjustable rate mortgages, leverage, why did the Fed let Lehman fail, why was AIG bailed out, quantitative easing, Operation Twist, where the interest on the debt is going, which bubbles he is most concerned about, a discussion of gold and silver, and culminating with his views on a world reserve currency, is him saying the following: “The views of the Keynesians like Mr. Krugman is that the fiscal deficits are far too small. One of the problems of the crisis is that it was caused by government intervention with fiscal and monetary measures. Now they tells us we didn’t intervene enough. If they really believe that they should go and live in North Korea where you have a communist system. There the government intervenes into every aspect of the economy. And look at the economic performance of North Korea.” Priceless.

50 minutes of Faberian bliss:


YouTube

Agenda 21 – Land Grab In America – Iron Mountain – NWO Fascist Dictatorship – Big Brother – Propaganda – False Science – HAARP (Video)


YouTube Added: 02.08.2012

U.S. Files Mortgage Fraud Lawsuit Against Wells Fargo

U.S. files mortgage fraud lawsuit against Wells Fargo (Reuters, Oct 9, 2012):

The U.S. government filed a civil mortgage fraud lawsuit on Tuesday against Wells Fargo & Co, the latest legal volley against big banks for their lending during the housing boom.

The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil penalties from Wells Fargo for more than 10 years of alleged misconduct related to government-insured Federal Housing Administration loans.

The lawsuit alleges the FHA paid hundreds of millions of dollars on insurance claims on thousands of defaulted mortgages as a result of false certifications by Wells Fargo, the fourth-biggest U.S. bank as measured in assets.

Read moreU.S. Files Mortgage Fraud Lawsuit Against Wells Fargo

The Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One

The Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One (Activist Post, Oct 3, 2012):

Federal Reserve Chairman Ben Bernanke is determined to push mortgage rates to record low levels and he is encouraging the banks that the Fed regulates to make home loans more freely. Wait a second – isn’t that exactly what caused the last housing bubble?

After 9/11, the Federal Reserve slashed interest rates and this caused mortgage rates to steadily fall. Financial institutions were urged to help “expand home ownership” in America, and many of them started making home loans to people who never, ever should have gotten home loans. When mortgage rates started to go back up, millions of families with adjustable rate mortgages discovered that they could not make their monthly payments. Mortgage delinquencies absolutely soared and large numbers of mortgage-backed securities suddenly turned into garbage.

Read moreThe Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One

The Truth About How The Fed Has Destroyed The Housing Market

The Truth About How The Fed Has Destroyed The Housing Market (ZeroHedge, Aug 16, 2012):

When observing the trends in the housing market, one has two choices: i) listen to the bulls who keep repeating that “housing has bottomed”, a false mantra which has been repeated every single year for the past four, or ii) look at the facts. We touched briefly on the facts earlier today when we presented the latest housing starts data:construction of single family residences remains 46 percent below the long-term trend; the more volatile multifamily houses is 15 percent below trend and demand for new homes 47 percent below. This is indicative of reluctance by households to make long-term investments due to fear of another downturn in housing prices. Bloomberg summarizes this succinctly: “This historically weak demand for new homes is inhibiting the recovery of demand for construction workers as well, about 2.3 million of whom remain without work.” But the best visual representation of the housing “non-bottom” comes courtesy of the following chart of homes in negative or near-negative equity, which via Bloomberg Brief, is soared in Q4, and is now back to Q1 2010 level at over 13.5 million. What this means is that the foreclosure backlog and the shadow inventory of houses on the market could be as large as 13.5 million in the future, which translates into one simple word: supply.

Here is Bloomberg’s Joseph Brusuelas on this topic:

Approximately 13.5 million households hold negative or near-negative equity positions on their mortgages. Many of them will likely lose  those homes to foreclosures, which are again on the rise. At best, an increase in foreclosures will constrain a recovery in prices; at worst, a flood of inventory to market will put further downward pressure on prices.

In other words it is Bloomberg, not us, coming up with the perfectly logical idea that a number as large as the total number of underwater mortgages may and will end up on the market as foreclosures, which in turn will clog up the market clearance piping for years, if not decades to come.

Read moreThe Truth About How The Fed Has Destroyed The Housing Market

Keiser Report: Virtual Virtual Economy (Video)


YouTube Added: 31.07.2012

Description:

In this episode, Max Keiser and Stacy Herbert discuss the virtual virtual economy getting hit by a dustbowl and there are no gully washers or toad stranglers on the horizon to bring reliefe; meanwhile out in the virtual real economy it’s all the bath-salts and beer you can drink and scalps for sale in California as eminent domain falls into the hands of private bankers. In the second half, Max interviews Teri Buhl about the possibility of San Bernardino county using eminent domain to seize mortgages from one set of rich private investors to give them to another set of rich private investors.