Home Loans Improving Good News for Big Banks (BAC, FRE, FNM)

Housing and Money

The number of borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.  Good news for Bank of American (NYSE:BAC), Fannie Mae (NYSE:FNM), and Freddie Mac (NYSE:FRE).

Ticker Company Price Change Chg % Mkt Cap
FNM Fannie Mae 1.01 -0.01 -0.97% 1.14B
BAC Bank of America Corp. 15.98 +0.10 0.63% 138.23B
FRE Freddie Mac 1.22 0.00 0.00% 790.97M

Shares of Freddie, Fannie, and BofA are unchanged on the news of home loans improving but its a great sign for a recovering economy. The Mortgage Bankers Association said Friday that the percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October to December quarter, down from 3.8 percent in the third quarter. The decline was even more surprising because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.

The new trend in late payments is significant because it means the number of people going into foreclosure will continue to decline this year. And that is important for all homeowners in areas where cheaply priced foreclosures are bringing down neighboring values.

In high-foreclosure cities like Las Vegas, Phoenix and Miami, for example, homes have lost roughly half their values from their peaks. But Friday's report showed Nevada, Arizona and Florida had some of the biggest declines in new delinquencies.

SOURCE: http://news.yahoo.com/s/ap/20100219/ap_on_bi_ge/us_foreclosures;_ylt=AlQ9_HlCVU4iicb_43kEoDeyBhIF;_ylu=X3oDMTJnc2FyZThvBGFzc2V0A2FwLzIwMTAwMjE5L3VzX2ZvcmVjbG9zdXJlcwRjcG9zAzEEcG9zAzIEc2VjA3luX3RvcF9zdG9yeQRzbGsDcmVwb3J0ZmV3ZXJw

WallStNation.comThanks for visiting WallStNation.com, to assist your investing research try using our Search (click to access) or review the list of Tickers (click to access) that link directly to articles related to the given stock/security.

To Browse our Most Recent Stories (click here)


Share WallStNation.com Content

Share this article with others, WallStNation.com is the Independent Wall Street Newspaper. Thanks for Reading!

Daily Market Summary




Please Review the WallStNation.com Disclaimer and remember that information provided by our site is at the investor's sole financial risk. Please Review for more Details