Market News Update - Foreclosures Down Amid Wells Fargo Fraud

The housing recovery just keeps rolling along.  The number of foreclosures has hit the lowest point in 5 years.  Filings in total are down 7% from August and 16% lower than the same time last year.  The combination of an improving economy and lenders working much harder and effectively to help homeowners remain in their homes is what has created the improving conditions.

Some irony for this morning is that Wells Fargo reported record profits primarily related to their improvement in their mortgage banking division the same week that the government filed a lawsuit against Wells Fargo for mortgage fraud.  Wells Fargo’s currently announced record profits have nothing to do with the timing of the lawsuit because the government is accusing the bank of mortgage fraud on loans closed between 2002 and 2010.  What I do find very interesting and disturbing is that the mortgage crisis began in 2007 and based upon the government’s lawsuit, Wells Fargo may have been continuing to commit fraud through 2010 which is 3 years into the mortgage and housing crisis.  We will have to watch and see how this plays out.

What excites me most about all the positive housing news is that even though the market is improving off of very low numbers, the fact is that the positive news for housing just keeps coming.  It is likely that with the continuing positive housing news homebuyers will begin to flock back towards the purchase market further improving the overall housing market.

The stock market continues to remain stuck in neutral, as the concerns about Spain’s financial troubles along with the stalemate in Congress regarding the “fiscal cliff” has investors sitting on the sidelines.  It is clear that until the election is settled, we cannot expect any movement in government.

Next week’s economic reports are:

• Monday October 15^th – Retail Sales
• Tuesday October 16^th – Consumer Price Index and Industrial Production
• Wednesday October 17^th - MBA Applications and Housing Starts
• Thursday October 18^th – First Time Jobless Claims
• Friday October 19^th – Existing Home Sales

I appreciate your business and look forward to talking to you soon! Have a great day!!!
 
Sincerely,

Cindy Tomlinson
Loan Officer

USLending Company

DRE Lic # 01520422
NMLS # 214851   

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