Tuesday, April 14, 2009

Big Banks Increase Foreclosure Activity

by Bill McBride on 4/14/2009 08:46:00 PM

From the WSJ: Banks Ramp Up Foreclosures

J.P. Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac all say they have increased foreclosure activity in recent weeks. Those companies say they have lifted internal moratoriums which temporarily halted foreclosures.
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Citigroup Inc. says it stopped all foreclosures until March 12, at the Obama administration's request, on loans serviced for Fannie and Freddie. Since then, says a spokesman, it has "reverted to our previous business-as-usual moratorium."
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Wells Fargo has also increased foreclosure actions since the expiration of its foreclosure moratorium ...

Both Fannie and Freddie have stepped up sales of foreclosed properties since their moratoriums ended on March 31.
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More than 2.1 million homes will be lost this year because borrowers can't meet their loan payments, up from about 1.7 million in 2008, according to Moody's Economy.com.
Just something to be aware as foreclosure activity picks up again - the lull was because of the moratorium, not market fundamentals.