Thursday Links Unstoppable

Home-Buyer Psychology Changes, Fuels Rental Market – WSJ

There is “a change in one’s thought process about the benefits or wisdom of owning a single-family home,” he said at a recent industry conference. “There is no one in this room who doesn’t know someone who is upside down in a house or whose parents can’t sell the home to move to Florida or … know someone who can’t sell their house and move to another community to take a new job opportunity.”

Fannie Mae: Get Out of The Way! – Shame on the Banks

Sadly, instead of allowing a neighbor helping neighbor solution to not only help stabilize this neighborhood, but also stabilize the Brown family, Fannie Mae is imposing their own solution which will displace the Brown family and result in yet another vacant bank-owned REO in Palmdale, a city already saturated with REOs begging for the buyers First Look is designed to attract.

Lenders go after money lost in foreclosures -WaPo

Over the past year, lenders have become much more aggressive in trying to recoup money lost in foreclosures and other distressed sales, creating more grief for people who thought their real estate headaches were far behind.

Lennar Quietly Offering 3.25% Mortgages – WSJ

Builder Lennar Corp. is quietly offering new home buyers a mortgage rate as low as 3.25% for five years–one of the lowest rates ever dangled by a public home builder–an early sign that attention-grabbing specials are coming back.

Delisting Fannie, Freddie: Clearing the Path for Change – WSJ

The big issue now is what happens to the companies moving forward, and Wednesday’s delisting helps clear the pathway a bit towards doing something completely new as opposed to taking steps to restore the value of the current companies. And it’s also a sign that the common shareholders “don’t play a role in that future structure,” says Bose George, an analyst at Keefe, Bruyette & Woods Inc.

Italian economists slam austerity measures – Telegraph, Ambrose Evans-Pritchard

“The `politics of sacrifice’ in Italy and in Europe run the risk of accentuating the crisis in the end, causing a faster rise in unemployment and company failures, and could at a certain point compel some countries to leave monetary union. We must have an immediate debate on the extremely grave errors in economic policies now being committed,” the economists said.

Challenges to Foreclosure Docs Reach a Fever Pitch – American Banker

The backlash is intensifying against banks and mortgage servicers that try to foreclose on homes without all their ducks in a row.

Because the notes were often sold and resold during the boom years, many financial companies lost track of the documents. Now, legal officials are accusing companies of forging the documents needed to reclaim the properties.

Toll Brothers: Demand Choppy, Sales Down – Calculated Risk

Just a few weeks ago, new Toll CEO-designate Doug Yearley, Jr. noted:

“With demand increasing in many areas, we are very focused on growth.”

Uh, nevermind …

Fitch Projects Steep Re-Default Rates on HAMP Modifications – DS NEWS

The company says that within 12 months, 55 to 65 percent of the prime loans modified under the federal program will likely re-default. For modifications on subprime and Alt-A loans, the projection is even higher – 65 to 75 percent.

Is the BP Gusher Unstoppable? – Mother Jones

“What does this mean?

“It means they will never cap the gusher after the wellhead. They cannot…the more they try and restrict the oil gushing out the bop?…the more it will transfer to the leaks below. Just like a leaky garden hose with a nozzle on it. When you open up the nozzle?…it doesn’t leak so bad, you close the nozzle?…it leaks real bad, same dynamics. It is why they sawed the riser off…or tried to anyway…but they clipped it off, to relieve pressure on the leaks “down hole”. I’m sure there was a bit of panic time after they crimp/pinched off the large riser pipe and the Diamond wire saw got stuck and failed…because that crimp diverted pressure and flow to the rupture down below.

Housing Market Slows as Buyers Get Picky – NY Times

These days, it is the buyers who are coldly seeking the absolute best deal while the sellers are left in emotional turmoil.

Goodbye to the office – Seth Godin

When you need to have a meeting, have a meeting. When you need to collaborate, collaborate. The rest of the time, do the work, wherever you like.

CitiMortgage Suspends Foreclosures in Gulf Coast Region – HousingWire

The suspension will last three months and will go into effect June 17 and end Sept. 17. All foreclosure sales and evictions on REO properties will halt in the region during that time. The foreclosure suspension affects borrowers occupying homes in ZIP codes within roughly 25 miles of the coastline including Louisiana, Mississppi, Alabama and the Gulf Coast of Florida. It would total 515 counties, according a Citi spokesperson.

Feds bust billion-dollar mortgage fraud ring – CNN

Farkas was indicted on charges of conspiracy and bank, wire and securities fraud. He ripped off the Federal Housing Administration and investors in at least two financial firms, and tried to make off with funds from the Troubled Asset Relief Program, officials said.

Under federal guidelines, he could face life in prison if convicted.

“The gravity of this fraud is really quite amazing,” said Assistant Attorney General Lanny A. Breuer (right). He said losses from the scheme will be measured “in the billions.”

The Next Housing Crisis – Prison Planet

Did the Federal Reserve collude with the big banks to hold millions of houses off the market until the Fed finished adding $1.25 trillion to the banks reserves?  Did the Fed do this to make it appear that its bond purchasing plan (quantitative easing) was stabilizing prices when, in fact, it was the reduction in supply that stopped prices from plunging? It sure looks that way…

Really Cool Interactive Map Showing Where People Are Moving – Forbes.com