Pete the Banker: Geithner Sees Signs of Housing Market Stabilization, Experts See Bad News Ahead and a Housing Double Dip

July 9, 2010

SHARE

More whoppers from Treasury Secretary Tim Geither as reported here recently:

“Treasury Secretary Timothy Geithner defended financial policies initiated under the Troubled Asset Relief Program (TARP), linking them to improved economic conditions over the past year. …. Geithner said delinquencies for many loan categories appear to have peaked, and home prices are showing signs of stabilization.”  

Nice timing Secretary, since most housing analysts are warning of a double dip in housing fueled by falling sales of new and existing homes and the failed Home Affordable Mortgage (Modification) Program (here).  
The recent Office of Comptroller Metrics report (page36), disclosed that approximately 41% of loan modifications made in the second quarter of 2009 were now more than 60 days delinquent.  Those for the first quarter of 2009 were over 50%. The failure rate on loans modified during the 4th quarter of 2008 was over 50% after nine months of aging and nearly 58% twelve months after modification (here).    Recidivism continues to be a problem in the Home Affordable Mortgage Modification Program (HAMP), increasing the inventory of homes on the market, placing downward pressure on home prices and dragging out the housing crisis.
This is just another case of those in Washington DC being out of touch with the American public.  Since the expiration of the First Time Homeowner Tax Credit on April 30 and despite record low mortgage interest rates, sales of homes and mortgage applications for home financing have plunged.  Meanwhile, the Secretary trumpets housing market stabilization. 
Resign Mr. Secretary.  You are out of touch with reality!!  



Tell ’em where you saw it. Http://www.victoriataft.com