The delinquency rate in New York state increased 73 basis points between the second and third quarters of the year, the overall percentage delinquencies was at 8.84 percent, according to seasonally-adjusted data from the Mortgage Bankers Association, released today. Nationwide, delinquencies on residential loans hit record-breaking levels in the third quarter this year. The delinquency for mortgages on U.S. residential properties with one-to-four units hit 9.64 percent in the quarter, according to the MBA. The figure is 265 basis points up from the same time period last year and up 40 points from the second quarter this year. The record had been set last quarter, when the delinquency rate was at 8.86 percent, but MBA experts said that prime and FHA loans, coupled with continued job losses nationwide, spurred delinquencies. “Despite the recession ending in mid-summer, the decline in mortgage performance continues,” Jay Brinkmann, chief economist with MBA, said. “Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP.” TRD

Governor David Paterson and the New York State Legislature have passed a bill that will provide additional protection to New York state homeowners and renters facing foreclosure. The bill will expand the mandatory 90-day grace period to holders of all types of home loans, not just subprime mortgages, so more homeowners will have a grace period to address their situation before facing foreclosure. The bill will also help distressed renters, allowing them to remain in their apartments for the remainder of their lease, or 90 days, whichever is longer, before receiving an official foreclosure notice. The bill also protects vulnerable homeowners by prohibiting brokers who offer distressed property consulting services from accepting any payment upfront, in order to avoid fraud. Lastly, the bill will allow the Banking Department and the Division of Housing and Community Renewal to find and correctly identify all residents facing foreclosure. This legislation comes at the same time as the news of Federal Deposit Insurance Corp’s massive real estate sales so far this year — the most since 1996, according to the group’s Web site. Bloomberg reports that the jump in the FDIC’s sales numbers is due to its takeover of more properties from failed lenders. The agency has sold 1,706 properties so far this year, compared with the entirety of 1996, when the FDIC sold 2,045. [Crain's] and

Although Freddie Mac reported a $6.3 billion third quarter loss Friday, it says that it doesn’t need any federal assistance at the moment, marking the second straight quarter that it has eschewed a financial aid request. This could change in the future, however, as the company said that rising unemployment could force it to request government aid. Sibling government-funded institution Fannie Mae requested $15 billion in aid on Thursday, bringing the total amount of federal assistance the two institutions received to $112 billion over the last year.

Thanos Papalexis’ former home at 269 Pendleton Avenue. It was sold at auction in February 2009 for $3.55M.

From the South Florida Web site: The foreclosure wave has broken on every Florida shore, even the pricey ones of Palm Beach.

Foreclosed homes on the affluent island don’t sport giant “For Sale” signs advertising the bargains tucked discreetly behind the estate fences.

It’s been a tough year at the top end of the market, even if foreclosure rates are a fraction of those found at less affluent price ranges, and make a smaller contribution to the state’s unwelcome designation as the fourth worst housing market in the country, according to RealtyTrac.

Through early October, foreclosures have been filed on 13 single-family homes in Palm Beach, according to Christine Franks, Palm Beach real estate broker and owner of Wilshire International Realty, who tracks sales data for clients and to keep on top of the market. Five of them have sold, all of them fetching at least $1 million. It’s not a typical time, she said, with a slow sales season underlying the extraordinary financial distress some Palm Beachers are suffering, however discreetly.

As speculation over a possible FHA bailout abounds, some analysts are questioning whether the FHA should require higher down payments to temper the risk of default on loans. Congress member Scott Garrett told CNBC that he believes requiring a greater down payment would keep borrowers who can’t afford to pay back their mortgages from getting the FHA-backed loans in the first place. But Hoawrd Glaser, principal of the Glaser Group and a former vice president of the Mortgage Bankers Association, said that there is no documented evidence to prove that higher down payments negate risk. [more]

The older population tends to experience greater challenges managing debt, according to a report from AARP, due in part to the housing slowdown that limits payback options. The study showed that of those U.S. residents who carry debt, 25 percent of the over-50 population spends more than 75 percent to pay off creditors. The report suggests that, before the housing crisis, seniors were likely to sell their homes or take out reverse mortgages to help pay off debt. Gail Cunningham, a representative from the National Foundation for Credit Counseling, told Newsweek that her group has seen “an across-the-board increase in seniors coming to [it] for help.”

The average rate on 30-year fixed mortgages has remained below 5 percent, coming in at 4.92 percent for the week ending Oct. 15, according to Freddie Mac. This marks a gradual increase from last week’s average rate of 4.87 percent. Frank Nothaft, Freddie Mac vice president and chief economist, said that the low rates have been a boon to the residential market, with homebuyers taking advantage of the lower figures. Last year at this time, the average 30-year fixed mortgage rate was 6.46 percent.

The National Association of Home Builders/Wells Fargo Housing Market
Index declined one point this month, according to statistics released
by the association today. The numbers are down because the first-time
homebuyer tax credit is set to expire in the relatively near future,
interest rates have gone up recently and credit is still tight for home
loans. The declines took place in the southern part of the country,
where the index dropped three points. In the Northeast, the index saw a
one-point gain. TRD 
[more]

As home values deteriorate, lenders are pressuring appraisers to be
more conservative in their estimates of home values. Doing appraisals
is more difficult even without that pressure, as home values are
shifting quickly and sale prices from previous months no longer match
the market. Several appraisers said many of the appraisals they are
doing now are too low to allow the homeowners to refinance their
mortgages. Low appraisals can also result in homeowners’ home equity
credit lines being seized, as happened to the owner of one
2,650-square-foot Manhattan apartment appraised at $1.475 million in
2005 and worth $600,000 today. [more]