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Radian Group Inc. Message Board

  • cjdbs cjdbs Nov 15, 2012 12:48 PM Flag

    Serious Mortgage Delinquencies Fall to Lowest Since 2008...

    from Bloomberg news:

    The rate of seriously delinquent U.S. mortgages, a proxy for the so-called shadow inventory of homes, fell to the lowest since 2008 as employment improved and recovering housing demand made it easier for homeowners to sell.

    The percentage of home loans that were more than 90 days behind or in the foreclosure process fell to 7.03 percent in the third quarter from 7.31 percent in the previous three months, the Mortgage Bankers Association said in a report today. The rate was 7.89 percent a year earlier.

    Delinquent homeowners are catching up on payments or finding alternatives to foreclosure as the economy improves. That’s helping to reduce shadow inventory -- typically defined as homes with seriously delinquent mortgages, in foreclosure or held by banks and not for sale -- and limiting the prospect that distressed properties will flood the market and depress prices.

    “The drop of the shadow inventory is a real positive for the housing market because it reduces concerns that this backlog will be with us,” Michael Fratantoni, the Mortgage Bankers Association’s vice president of research and economics, said in a telephone interview today from Washington.

    The serious-delinquency rate was the lowest since the fourth quarter of 2008, when it was 6.3 percent. The percentage of loans in the foreclosure process at the end of the third quarter was 4.07 percent, down 0.2 percentage point from June. That was the biggest drop in records dating to 1979, Fratantoni said.

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    • The 5.9 months supply of homes for sales is the lowest since May 2006.

      The lack of homes for sale is causing homes prices to rise.

      The banks will benefit has they start to release homes for sale to the market and companies like Radian will benefit by paying lower claims.

      MGIC's and Radian's older more stubborn delinquency will get resolved too after the banks are satisfied with the higher prices.

      Tomorrow morning will be interesting when 'Existing Home Sales Report' is released by NAR.

      Sentiment: Strong Buy

    • Lower defaults and NIW of about $4 billion a month in 2013 will send Radian to profits not seen since 2007

      Sentiment: Strong Buy

    • If this is a good news why MTG and RDN tanking today. What is the catalyst of what is happening right now.

      Sentiment: Hold

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