Federal Reserve Study: Subprime Didn't Increase Minority Homeownership.

Federal Reserve of Boston study of Massachusetts subprime lending is HERE.

Tip of Hat to Washington Independent; their story is HERE. Quote from report, and story:

"We show that much of the subprime lending in the state was concentrated in urban neighborhoods and that minority homeownerships created with subprime mortgages have proven exceptionally unstable in the face of rapid price declines. The evidence from Massachusetts suggests that subprime lending did not, as is commonly believed, lead to a substantial increase in homeownership by minorities, but instead generated turnover in properties owned by minority residents."

Estimate: 50,000 Owner Occupied Subprime and Alt A ARM Loans will Adjust in Next Year in Oregon and Washington.

I have prepared two tables HERE, that show the number of Oregon and Washington Subprime and Alt A loans, the number of those loans that are ARMS, and my estimate of the number of subprime and Alt A loans that will adjust in the next 12 months (Federal Reserve data is from August, so 12 months runs from August 08-July 09).

Note that this analysis includes a focus on owner occupant subprime and Alt A loans. This data is useful in evaluating the need for states to quickly implement new revenue bond refinancing programs authorized by the federal housing legislation enacted at the end of July.

(The Bond Buyer table graphic HERE shows the additional bond authority allocated to the states in the summer federal housing legislation. In part this additional authority was to provide expanded resources to finance this new new revenue bond refinancing program; Oregon received an additional $123 million in revenue bond authority and Washington received an additional $212 million in revenue bond authority).

Web Video: Barney Frank Speaking to National Association of Realtors.

The always entertaining Chair of the House Financial Services Committee Barney Frank spoke yesterday to a mid year legislative meeting of the National Association of Realtors.

Broadcast by C-SPAN, the speech can be viewed on line using either the Flash or Microsoft Windows Median player in the right pane of a C-SPAN website HERE.

Fannie Losses More than Double in 4th Quarter, Top $3.55 Bllion.

Bloomberg story HERE says that Fannie Mae losses for 4th quarter 2007 were $3.55 Billion.That's move than double the $1.52 Billion in losses reported during the prior (3rd.) quarter.

My earlier post on favorable tax treatment for Fannie is HERE.