Monthly Archives: August 2012
One of the main factors to determine how the real estate market is doing is to actually look at the books of a company such as Fannie Mae. Just posted on Wednesday, August 8th, Fannie Mae recorded a $5.1 billion profit during the months of April through June. This is a big sign as the company will not need any more bailout money this past quarter.
Fannie Mae received a huge bailout back in 2008 due to being near bankruptcy. This is a good sign that the company is bouncing back as well as the real estate market.
As of the end of the second quarter, Fannie Mae has profited $7.8 billion the first half of 2012. The reason behind the company’s successful quarter is due to “improved home prices, improved sales prices on the company’s real-estate owned properties, and a decline in the single-family serious delinquency rate”, according to executive vice president and chief financial officer, Susan McFarland.
According to Fannie Mae’s press release, single-family serious delinquencies have declined for the ninth consecutive quarter.
Fannie Mae is using these profits to pay back its debts to the Department of Treasury. Fannie Mae has stated to be paying out $2.9 billion to the Department of Treasury for their second quarter dividends.
No one is going to declare a housing recovery as of yet, but it is encouraging when the signs show improvement.
Here is a chart provided my Fannie Mae regarding the withdraws from the Department of Treasury as well as the pay backs between 2008 to 2012.
As of August 1, 2012, Fannie Mae has opened Mortgage Help Centers in the Inland Empire. These help centers provide free education and counseling to help California homeowners that are struggling in keeping their home. The goal is to provide valuable and helpful information that will provide the tools necessary to avoid foreclosure.
As we discussed in a previous blog, Fannie Mae is hoping these Mortgage Help Centers will reduce the amount of foreclosures in the country. In order for these help centers to be effective, homeowners need to seek help early on while there is still time to make changes and prevent foreclosure.
Fannie Mae wants to stress that these Mortgage Help Centers are absolutely free. This is information available to the public to help communities and struggling homeowners.
According to Clemente A. Mojica, President and CEO of Neighborhood Partnership Housing Services, Inc. “The Fannie Mae Mortgage Help Center is an example of bringing tangible resources to address a regional issue.”
The Los Angeles Mortgage Help Center, which opened in November of 2010, has already helped 2,320 homeowners. According to Keosha Burns from Fannie Mae, “more than sixty percent of those who have been helped have received a workout that allowed them to stay in their homes.”
As long as struggling homeowners are aware of these help centers and seek help before it is too late, these centers can be very helpful in keeping their home. It will provide knowledge and steps to make improvements in one’s financial situation in order to maintain ownership. Currently, there are twelve Fannie Mae Mortgage Help Centers in the country.
These mortgage centers do not guarantee the ability to avoid foreclosure, but they can evaluate each situation and provide counsel to make the right steps.