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Wednesday, November 03, 2010

Misc: Bankruptcy Filings increase, Freddie Mac reports loss, and more

by Calculated Risk on 11/03/2010 09:46:00 PM

  • From the American Bankruptcy Institute: October Consumer Bankruptcy Filings increase slightly from Previous Month. There will be close to 1.6 million consumer bankruptcy filings this year.

  • Yields on Ireland 10-year bonds soared to 7.44% today. The yield on the Greece 10-year hit 10.85%, and the Portugal 10-year was up to 6.3%.

  • Freddie Mac reported a $2.5 billion net loss. Freddie Mac's REO inventory increased 20% from 62,178 at the end of Q2 to 74,897 at the end of Q3. And that is expected to increase sharply in Q4:
    Foreclosure activity for non-performing loans also continued to increase during the third quarter as many of those loans transitioned to REO. The timing and volume of the company's future REO activities could be adversely affected by deficiencies in the foreclosure practices of the company's mortgage servicers, as well as related delays in the foreclosure process.
    And the costs for the REOs are increasing too:
    included in non-interest expense for the third quarter of 2010 was REO operations expense of $337 million, compared to REO operations income of $40 million in the second quarter of 2010, reflecting higher property write-downs due to lower estimated REO fair values as well as higher expenses driven by increased REO inventory.
    Earlier stories today:
  • FOMC Statement: QE2 Arrives, $600 Billion by end of Q2 2011

  • U.S. Light Vehicle Sales 12.26 million SAAR in October

  • From the Institute for Supply Management: October 2010 Non-Manufacturing ISM Report On Business®. The October ISM Non-manufacturing index was at 54.3%, up from 53.2% in September - and above expectations of 54.0%. The employment index showed expansion in October at 50.9%, up from 50.2% in September.

  • ADP reported "Private-sector employment increased by 43,000 from September to October". This was above expectations for 20,000 private sector jobs in October.