Enlarge image Wells Fargo Dominates Home Lending as BofA Retreats Wells Fargo’s control raises concerns that U.S. consumers and the housing market may suffer if the bank falters. Wells Fargo’s control raises concerns that U.S. consumers and the housing market may suffer if the bank falters. Photographer: Scott Eells/Bloomberg Wells Fargo & Co. (WFC), already the largest U.S. home lender, won the biggest market share ever recorded as competitors led by Bank of America Corp. (BAC) pulled back after suffering more than $65 billion in combined mortgage losses. Wells Fargo made 33.9 percent of the $385 billion of mortgages originated in the first quarter, up from 30.1 percent in the preceding three months, according to Inside Mortgage Finance. That’s more than triple the share of ... Continue reading →

The recovery's been weak these last few years. But if the federal government hadn't reacted to the financial crisis the way it did, things would have been a lot worse. That's the conclusion of a new research note from Fitch Ratings, in collaboration with Oxford Economics, which argues that the country's economic growth would have been even lower in 2010 and 2011 without the stimulus policies meant to combat the Great Recession. In fact, the Fitch report argues, "the U.S. might still be mired in a recession" if not for the various stimulus measures enacted by Presidents George W. Bush and Barack Obama. For Americans who aren't economists, of course, it can be hard to tell that the country isn't still mired in a recession. ... Continue reading →

Matthew and Carina Hensley offered $10,000 more than the asking price for a three-bedroom house in suburban Seattle, then lost out to one of seven other bidders. Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month- old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside. Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers. The number of contracts to buy previously ... Continue reading →

House for sale in California. Photographer: Tim Rue/Bloomberg The Obama administration will extend mortgage assistance for the first time to investors who bought multiple homes before the market imploded, helping some speculators who drove up prices and inflated the housing bubble. Landlords can qualify for up to four federally-subsidized loan workouts starting around May, as long as they rent out each house or have plans to fill them, under the revamped Home Affordable Modification Program, also known as HAMP, according to Timothy Massad, the Treasury’s assistant secretary for financial stability. The program pays banks to reduce monthly payments by cutting interest rates, stretching terms, and forgiving principal. The government’s need to protect neighborhoods from blight and renters from eviction by keeping the current owners in ... Continue reading →

21 Feb 2012 Allee Willis Kitsch Of The Day – Shooting Dr. Phil Today With Sly Stone As we speak, I’m racing out of the house to be on Dr. Phil with Sly Stone of Sly and the Family Stone fame. Normally I’d be a little excited to be on TV but the show is all about saving another iconic singer from self-destruction. A couple of weeks ago I got a call from a mutual friend who’d worked with Sly back in the heyday to see if I was interested in writing with him because he was clean and sober and a comeback felt possible. I can’t even tell you how much influence this guy had on me. One of the earliest purveyors of fusing ... Continue reading →

David Brancaccio: You know how vast numbers of Americans owe more than their house is worth. You know that many lenders are allowing people to do short sales -- that is, selling a house for less than what's left on the mortgage. But who knew some banks are reportedly paying cash to homeowners to sweeten the pain of moving? Bloomberg News reports a case of a J.P. Morgan Chase letter to a homeowner that said "you could sell your home, owe nothing more on the mortgage, and get $30,000." Prashant Gopal is the Bloomberg News reporter on the story. Prashant, thanks for joining us. Prashant Gopal: Great to be here. Brancaccio: Help me understand this: you have seen an example where a lender offers cash ... Continue reading →

Enlarge image Banks Paying Homeowners a Bonus to Avoid Foreclosures Jewel Samad/AFP/Getty Images Abandoned houses at the Desert Mesa subdivision are pictured in North Las Vegas. Abandoned houses at the Desert Mesa subdivision are pictured in North Las Vegas. Photographer: Jewel Samad/AFP/Getty Images Enlarge image Banks Paying Homeowners a Bonus to Avoid Foreclosures Jewel Samad/AFP/Getty Images Abandoned houses at the Desert Mesa subdivision are pictured in North Las Vegas. Abandoned houses at the Desert Mesa subdivision are pictured in North Las Vegas. Photographer: Jewel Samad/AFP/Getty Images Enlarge image Banks Paying Homeowners a Bonus to Avoid Foreclosures Losses for lenders are about 15 percent lower on the sales than on foreclosures, which can take years to complete while taxes and legal, maintenance and other costs accumulate, ... Continue reading →

Enlarge image Baltimore Streets Test Obama Plan to Lure Investors The partially renovated 2200 block of Linden Avenue, with East Baltimore in the background, stands in the Reservoir Hill neighborhood. The partially renovated 2200 block of Linden Avenue, with East Baltimore in the background, stands in the Reservoir Hill neighborhood. Photographer: David Banks/Bloomberg Enlarge image Adam Meister Adam Meister, homeowner in the Reservoir Hill neighborhood, stands for a photograph on the porch of his house in Baltimore, Maryland, on Oct. 31, 2011. Adam Meister, homeowner in the Reservoir Hill neighborhood, stands for a photograph on the porch of his house in Baltimore, Maryland, on Oct. 31, 2011. Photographer: David Banks/Bloomberg Enlarge image Reservoir Hill Neighborhood of Baltimore The Neighborhood Stabilization Program paid for renovation of ... Continue reading →