Foreclosure delays in New York lead housing agency to charge adverse-market fee

New York /
Jan.January 03, 2014 08:48 AM

The long foreclosure delays in the tristate area have led the Federal Housing Finance Agency to keep in place an adverse-market fee that was instituted nationwide in 2008 but removed in other states last month.

The fee is applicable to all mortgages bought by Fannie Mae and Freddie Mac, and is equal to 0.25 percent of the mortgage loan amount. The decision not to remove the fee in the tristate area – and in Florida – is a recognition by the housing agency that long foreclosure timelines have an impact on costs, according to CoreLogic’s chief economist Mark Fleming.

“If it takes two years to get through a foreclosure, time is money,” Fleming told the New York Times.

Indeed, a housing agency study from 2013 seen by the Times shows that it took, on average, 820 days to complete a foreclosure in New York, 750 days in New Jersey, and 690 days in Connecticut. The national average was 405 days. [NYT]  – Hiten Samtani


Related Articles

arrow_forward_ios
161 Maiden Lane, Fortis CEO Jonathan Landau and Bank Leumi CEO Avner Mendelson (Hill West Architects; Fortis; Bank Leumi)
“Leaning” Seaport condo facing foreclosure on $120M loan
“Leaning” Seaport condo facing foreclosure on $120M loan
Denizen Bushwick at 54 Noll Street (Photo via Google Maps)
All Year Management in default on $170 million Brooklyn mortgage
All Year Management in default on $170 million Brooklyn mortgage
CIM Group's Shaul Kuba and HFZ Capital's Ziel Feldman (Getty)
Foreclosures tied to 4 HFZ condo buildings halted, for now
Foreclosures tied to 4 HFZ condo buildings halted, for now
(iStock)
Foreclosure filings are way down. There’s a reason
Foreclosure filings are way down. There’s a reason
From left: 161 East 29th Street in East Flatbush, 2 Jardine Place in Ocean Hill and 163 Montauk Avenue in Cypress Hills (Google Maps)
Former Brooklyn lawyer accused of $8M deed theft scheme
Former Brooklyn lawyer accused of $8M deed theft scheme
Federal Reserve chairman Jerome Powell (Getty; iStock)
Mortgage originations at 2nd highest level in 20 years: Fed
Mortgage originations at 2nd highest level in 20 years: Fed
381 Broadway (Google Maps)
Two-year foreclosure battle in Tribeca culminates in bankruptcy filing
Two-year foreclosure battle in Tribeca culminates in bankruptcy filing
(iStock)
Foreclosure filings picked up in October up despite moratoriums
Foreclosure filings picked up in October up despite moratoriums
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...