Will 24 mortgages even make a dent?

From HousingWire:

New York launches “first of its kind” program; will buy delinquent mortgages from FHA

In what officials are calling a “first of its kind” program, the city of New York announced Thursday that it is plans to buy a number of delinquent loans from the Federal Housing Administration as part of an effort to keep struggling homeowners from losing their homes to foreclosure.

According to the office of New York Mayor Bill de Blasio, the “Community Restoration Program” will see the city purchase 24 distressed mortgages for one- to four-family homes – with a total of 41 residential units – in the Bronx, Brooklyn, Queens, and Staten Island.

The goal of the program? According to de Blasio’s office, the program is designed to stabilize neighborhoods that are not yet recovered from housing crisis.

And what makes this program unique, according to de Blasio’s office, is that marks “one of the first times” that a municipality buys distressed Federal Housing Administration mortgages that would otherwise have been sold at auction to the highest bidder.

“We are fighting to help homeowners stay in the neighborhoods they helped build. And we won’t let predators force them out,” said Mayor Bill de Blasio. “The Community Restoration Program is the first of its kind, and it puts government squarely on the side of struggling families so they can keep their homes.”

The program will cost $13 million, which is being funded by a combination of several sources.

According to de Blasio’s office, the $13 million program is being funded with $1 million in seed money allocated by the New York City Council, $6.9 million in private financing from Goldman Sachs’ Urban Investment Group, and a $2.2 million grant from the Local Initiatives Support Corporation, a major national affordable housing group, that was funded by a bank settlement obtained by the New York State Attorney General.

The program will also be funded by $2.9 million received from Morgan Stanley as part of their $3.2 billion settlement for “deceptive” mortgage bond practices, which was announced in February.

According to de Blasio’s office, after purchasing the mortgages, the non-profit partner organizations will do “active outreach” and work one-on-one with homeowners, providing counseling and identifying potential solutions to keep current homeowners in their home.

The primary goal is home retention through mortgage modification or refinancing, de Blasio’s office said. “When neither is feasible, for example if a home has been abandoned or a homeowner is not eligible for a modified loan, the fund will work to ensure that the homes are repositioned as affordable homeownership or rental housing opportunities,” de Blasio’s office added.

“With this program, New York continues to lead the path forward in our collective efforts to rebound from the depths of the foreclosure crisis,” Schneiderman said.

“It’s one more tool in the City’s and State’s arsenal for preserving affordable housing and helping homeowners still reeling from the housing crash,” Schneiderman continued.

This entry was posted in Foreclosures, NYC, Politics. Bookmark the permalink.

20 Responses to Will 24 mortgages even make a dent?

  1. grim says:

    Hat tip Ritholtz – great chart from the economist:

    http://www.economist.com/blogs/graphicdetail/2015/03/daily-chart-2

    College selectivity vs income over median by degree type. Very eye opening.

    Moral of the story – Go anywhere for Engineering or Math, High end schools only marginally beat out the low end for Business. And absolutely don’t bother with an Arts or Humanities degree, especially not expensive ones.

  2. GOP's broken (the good one) says:

    no true. this is google facebok uber effect. economist a right wing rag blaming students

    ivy in english will always do very well

    jj was neither engineer nor ivy and was best paid in her

  3. Comrade Nom Deplume. Citizen, 2nd Class. says:

    [2] twitiot

    Still trying to justify that community college degree?

  4. GOP's broken (the good one) says:

    skool about getting an education, not a gtor of roi

    that’s why it should be free

    just like the wars in Iraq, taxpayer funded

  5. Grim says:

    Cue discussion about how there is little difference between overpriced liberal arts schools and Trump U when it comes to impact on income.

  6. Juice Box says:

    Laureate International Universities, Bill Clinton was paid 16 million to promote this for profit via taxpayer funded loans for useless degrees, hardly a peep from the press.

    https://en.m.wikipedia.org/wiki/Laureate_International_Universities

  7. Juice Box digging his own grave ( joys of home ownership) says:
  8. Now Spanky be reasonable says:

    #7 – Interesting indeed. Holiday weekend – check. Nobody paying attention – check. Early Saturday morning – check. Now we continue with our regularly scheduled programming.

  9. Essex says:

    NEW YORK (Reuters) – Republican presidential candidate Donald Trump on Saturday tweeted an image of rival Hillary Clinton alongside hundred-dollar bills and a Jewish star bearing the words “most corrupt candidate ever!”, prompting outrage and bafflement on social media.

    Two hours after his initial tweet, Trump tweeted a similar image in which the six-pointed Star of David – which appears on Israel’s flag and which Jews were forced to wear on their clothing by the Nazis during the Holocaust – was replaced by a circle. The original tweet was deleted.

  10. [1] Engineering degrees are like 30 year US treasury bonds. The ones from 20 and 30 years ago pay much, much, better yields than the ones offered today.

  11. Grim says:

    Watched brewsters millions – the similarity to the Trump campaign is staggering.

  12. Out of the last week of stock trading I am most mystified by only yesterday’s stock market action. Out of all S&P 500 sectors, Consumer Discretionary stocks lead the day. For the majority of the trading day there was only 1 or 2 stocks down out of the 80+ stocks in that sector. That’s OK, but all day the worst performing companies were doing the best and the best companies were gaining the least. I’ll allow Harley Davidson (takeover rumor) and Netflix at the top of the list and maybe even Chipotle at the bottom, but the whole rest of the list is damn near upside down of what you would expect. Maybe that’s the new QE? Each day a different sector gets boosted by the Fed (or their agents) going in and buying up the stock of the worst companies?

    Here’s how they finished yesterday:
    Symbol %Change
    HOG 19.76%
    NFLX 5.67%
    RCL 2.92%
    BWA 2.61%
    SPLS 2.55%
    BBY 2.48%
    SIG 2.11%
    GM 2.08%
    HAR 2.05%
    MAR 2.00%
    GPS 1.95%
    HBI 1.87%
    AN 1.81%
    AAP 1.67%
    HRB 1.65%
    DLPH 1.63%
    HOT 1.56%
    PCLN 1.52%
    HD 1.51%
    CCL 1.49%
    TSCO 1.41%
    AMZN 1.41%
    EXPE 1.33%
    LKQ 1.32%
    VFC 1.32%
    KMX 1.28%
    WYNN 1.27%
    KORS 1.21%
    URBN 1.20%
    F 1.19%
    DHI 1.18%
    ORLY 1.15%
    NWSA 1.15%
    TIF 1.09%
    TWX 1.05%
    FOX 0.95%
    GT 0.94%
    GPC 0.88%
    NWS 0.86%
    PVH 0.85%
    MAT 0.83%
    SNI 0.82%
    BBBY 0.81%
    FOXA 0.79%
    CBS 0.77%
    UA 0.75%
    NKE 0.74%
    YUM 0.74%
    LEN 0.69%
    WYN 0.67%
    AZO 0.61%
    LB 0.60%
    LOW 0.54%
    TGNA 0.52%
    RL 0.51%
    TRIP 0.48%
    JWN 0.47%
    NWL 0.43%
    IPG 0.39%
    WHR 0.38%
    TGT 0.33%
    OMC 0.25%
    DIS 0.21%
    VIAB 0.14%
    CMCSA 0.14%
    GRMN 0.12%
    FL 0.11%
    KSS 0.11%
    DISCA 0.08%
    MCD 0.05%
    ULTA 0.04%
    COH -0.02%
    M -0.03%
    PHM -0.05%
    HAS -0.11%
    MHK -0.21%
    SBUX -0.23%
    TJX -0.35%
    JCI -0.36%
    DLTR -0.49%
    DRI -0.54%
    LEG -0.55%
    DG -0.55%
    ROST -0.60%
    CMG -2.20%

  13. A Home Buyer says:

    Who was just arguing that the mother who killed her two daughters only did so because firearms make it easy?

    http://www.cnn.com/2016/07/02/us/memphis-mom-kills-4-children/index.html

  14. [13] Well she was 29 already and the oldest of her 5 children mentioned was only 7. My bet is she felt depressed because she’s still taking care of small kids while all of her friends are probably done raising kids and are now happy grandparents.

  15. Captain Nom Deplume, Besotted Rummy says:

    I’ll just leave this one out there

    “GOP’s broken (the good one) says:
    July 2, 2016 at 10:22 am

    skool about getting an education, not a gtor of roi”

  16. Amerigeddon says:

    grim (11)-

    Brewster’s Millions way more entertaining.

  17. Amerigeddon says:

    Why won’t some nut take a shot at De Blasio?

  18. Anon E. Moose, Second Coming of JJ says:

    Geddon [17];

    Why won’t some nut take a shot at De Blasio?

    Because he’s THEIR bastard.

  19. Anon E. Moose, Second Coming of JJ says:

    Speaking of Ithaca the other day…

    Scientists Slowly Reintroducing Small Group Of Normal, Well-Adjusted Humans Into Society

    Story says they’re going to be released in Ithaca. I would have thought they’d choose a more hospitable (intellectual) climate for such fragile research.

  20. Comrade Nom Deplume. Citizen, 2nd Class. says:

    [18] moose

    I see what you did there

Comments are closed.