Thursday, September 27, 2012

Velocity of Money is Slowing

Graph of Velocity of MZM Money Stock According to data from the St. Louis Federal Reserve, the velocity of money (M2) continues to slow down...   I think this is one reason why Ben B keeps printing money via QE3---those inflationary pressures from money creation should help to offset the deflationary pressures of slowing velocity.

Bank of America Mortgage Delinquencies

Bank of America has roughly 11% of its mortgages 30 days past due or worse. That's ticking up a little bit from recent quarters, according to this chart shown at the company's presentation during the most recent Barclays Conference.

Wednesday, September 26, 2012

Wells Fargo Foreclosure Rate and Delinquencies

Wells Fargo's recent presentation given this september at the Barclays conference shows thatthe company has some of the lowest rates of foreclosure and delinquency on mortgages of any large bank.

Well's has a delinquency rate of 4.9% versus Citi's 6% and Chase's 5.6%.

And it's foreclosure rate is 2.3% vs. 4.1% at Bank of America.

Saturday, November 5, 2011

Freddie Mac Foreclosure Data by Year of Origination

Freddie Mac Default statistics show that the rate of mortgages in default or foreclosure have measurably improved in 2010 and 2011. The worse years for mortgage companies were 2006, 2007 and 2008 just before the big real estate melt down. For example, for conforming loans that were originated in 2007, now there are almost 7% of those that have been foreclosed or sold-short. That's a horrible number.... Almost 7 times worse than what was experienced during 2000 and 2001 (of course back then the prices of homes weren't as high... So it's easier for home buyers who bought in 2000 to sell their house and have enough to pay off their mortgage; whereas, many more people who bought in 2007 are underwater in their mortgage. So they be choosing to strategically walk away or look for a short-sale that the bank agrees to.