Housing's Newest Threat: More People Are Losing Their Jobs

[Purveyor]

I just received a troubling report from the FHFA, the overseer of Fannie Mae and Freddie Mac . It shows just how much job losses are exacerbating the housing crisis.

The report, which is a monthly event, gives the usual numbers on the Enterprises' homeowner assistance programs, but this time breaks out some new data to give us a better idea of why exactly so many loans are going into foreclosure.

FHFA reports that due to recent foreclosure "suspensions" that expired March 31 of this year, completed foreclosures and third party sales fell 77 percent in December from the prior three-month average and fell 79 percent in January.

No surprise there, and no surprise that at the same time, loans that were 60+ and 90+ days delinquent increased, overall by 47 percent. Now here's the bad part: Non-prime loan delinquencies increased by 23 percent. Prime loan delinquencies increased by 70 percent.

The prime loan delinquency increase is driven not by faulty loan products or falling home prices, but by job losses, plain and simple.

This current housing crash has distinguished itself from all previous because it was not caused by any economic downturn. Quite the contrary, it caused the economic downturn.

MORE...

http://www.cnbc.com/id/30329564

[BlooInBloo]

1. CNBC... The place to go, if you want your news last.

[Purveyor]

2. Actually, while I mostly dislike the CNBC 'talkingheads' I have found that

when truly 'Breaking News' is happening it is most likely reported there first. Mind you, I'm talking major news events that cross the financial wires.

Also please note, I posted this article in "Editorials & Other Articles" and didn't proclaim it to be 'news'.

Have a nice evening.