Tuesday, August 14, 2007

Quarterly Industry Update

Mortgage Fraud Bill Advances - A bill defining residential mortgage fraud passed in the North Carolina Senate in June 2007. Experts say it is likely that prospective home buyers with weak or no credit history will find it
more difficult to secure mortgages if the bill becomes law. Prosecutors
could charge mortgage sellers who lie or intentionally leave out information even if the buyers don't lose money. The bill moves to the House of Representatives for a final vote.
Subprime Issues Impact Market Psychology - Problems in the US housing market are mostly contained within the subprime mortgage sector, according to mortgage financer Freddie Mac. Rising default rates in the subprime sector are confined to a few geographic regions, a company vice president says. The biggest threat, according to Freddie Mac, is the fear that problems will spread to the larger real estate and other financial markets.
New Home Sales Continue Falling - New US home sales fell 21.1 percent in
the first five months of 2007 compared to the same period in 2006.
Residential real estate brokers are negatively impacted by declining home sales. Sales declined 30.9 percent in the West, 21.4 percent in the Midwest, 21.1 percent in the Northeast, and 20.6 percent in the South.

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