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Automatic TRANSCRIPT

Good morning and welcome to home solutions with the wind three team in the X. P. realty I am Bob Zach buyer and I am joined in the studio today by Jerry son to V. I. P. mortgage morning Jerry what about how are you I am good I'm good that I'm thankful that maybe traffic will send out just a little as the gem and mineral show kind of winds down and and hopefully get back to normal boy the last you know couple weeks it just if you're in in town and specially on the south side of of Tucson on I. nineteen during during rush hour it it's been just backed up for miles to get off of the freeway you know I have never gone to the gem show this is the first year I got to attend and I you know you hear about how big it is I mean it's really you know a wedding is that if you went to see it all I mean I don't know that you can get it all in and in two weeks now I I so much to see and and and E. but yes it's definitely you know good turn out I the weather wasn't that cooperative this year either is colder than than normal but thankfully there wasn't a whole bunch of rain but you know that it rained quite a few days as well so we you know we just came through Valentine's day and and I saw on the news that the this year was the biggest Valentine's day ever that the people that it's estimated that that people spent twenty seven point four billion billion dollars on on Valentine's cards and candies and and flowers and stuff that is a sign the economy is doing very well exactly and and that I'm speaking of the economy and we we've got some we got the new to some numbers out from the net from the to some a cessation of realtors and also I want to talk about Fannie Mae released their profits on February thirteenth and they reported a net income of fourteen point two billion dollars so this is a government sponsored you know enterprise advise the loans from lenders like you and and you know them the main street lenders that are that are giving the people the loans and then they they sell them on the secondary market to free up their cash to go give more loans and and it's kind of interesting the fourth quarter of twenty nineteen and keep in mind that typically the fourth quarter is the slowest of the well second slows to the of the first quarter is usually the the January is the slowest months of the year for real estate sales and then it kicks up quite a bit in March but the fourth quarter and there were four of four point four billion of their of of any mage fourteen point two billion dollar profit came in the fourth quarter so that's well over twenty five percent uhhuh Fannie Mae provided more than six hundred and fifty dollars are instilling intern fifty billion dollars in liquidity to the mortgage market helping finance more than three million purchases refinances and rental units they are the largest issuer of single family mortgage related securities in the secondary market during twenty nineteen but the nest a market share of thirty seven percent of all the single family homes are that are purchased so any mame why are their profits are high and this is something that they earned their new director mark Calabrian basically started selling off non performing loans so if you got loans are going slow or ordered people starting to get behind on them or something rather than retain those they they basically just pull them up in Salem to Wall Street and and and and non performing loan they'll sell those off at a discount from what's owed on them but then that improves the credits for your banks have credit scores just like people do and by getting rid of all their non performing loans or credit scores actually hire they can leverage more and they can do more loans and they have a higher rating because they don't have these non performing loans on their books anymore so it it's kind of interesting the how this strategy has worked for them the portfolio value last year was a hundred and seventy nine point two billion and they're down to one hundred fifty three point six billion so is so basically they they lopped off twenty six billion dollars worth of loans and they were all loans that were you know not as well performing as the others the gains during the fourth quarter twenty nineteen was nine hundred twenty three million dollars I'm third quarter nineteen was two hundred fifty three million dollars but that's a one point eight billion total for twenty nineteen I'm an increase from last year's final number of nine hundred fifty two million so twenty nineteen one point eight billion compared to nine or fifty million they doubled it they doubled the return that they made on their investments that's what good managing if you ask me yeah that I think that telling her about this article that is you know obviously we finances help with rates dropping there was a lot of that's where a lot of this could have happened but the the I think that the telling thing about this articles that says here told fox business is the late last year the Fannie Mae and Freddie Mac are billing the capital necessary to go out of conservatorship yeah they're still little wave it ways to go I haven't been keeping up on what the number that they're looking to obtain is but actually the very last paragraph they address that regulators will know what the target capital level is for Fannie and Freddie sometime next year noting they he feel comfortable with a whole lot more than they have today so now and they would you know during the recession these are government sponsored entities and both of them were failing and and they had to be bailed out so the government took control and and once you give Congress attain additional income an Emmy for fourteen point six billion dollar profit yeah you don't think they want to let that they don't want to live there hanging even though we're you know the economy the recovery actually started in twenty eleven there we are nine years later and they're still like now with their hold on just to see for a little bit longer so so now let's talk about there's an article caught my eye in a middle course everybody has been spouting off about re sessions and this is the longest economic recovery in history and there's always been a downturn before now we get closing in on almost a year longer than the last one this time that we've ever seen a continuation and answer this article came out it's a South Beach blues Miami's delinquency rate nears six percent so people that are behind on their mortgages near six percent CoreLogic found the nation's overall delinquency was three point nine percent so of every hundred loans just under four I know you know the people are struggling to make the payment in there behind not foreclosed on your delinquent that's a marginal declined from four percent last year so we're at three point nine this year November's reading was the lowest reading for November in more than twenty years so yeah you know it sounds like wall three percent is is high no it isn't it's the lowest in twenty years the share of delinquent mortgages in November historically peak in two thousand and nine and eleven point five percent since March of twenty eighteen the overall delinquency rate each month has been lower than the pre crisis period between two thousand and two thousand six which was a huge ramp up in a you know that we we we got a little slow down in that area right around two thousand one when this trade center went down the World Trade Center and then it just took off running in two thousand four five and six we just saw off the charts appreciation here in Tucson it leveled off and seven and then tumbled like a rock the serious delinquency rate those more than ninety days late including those in foreclosures was one point three percent so for the people again and this is seriously delinquent some more than thirty days sixty days ninety days I'm at ninety days that's when most lenders contact attorneys and start the foreclosure process and for most people that is that is the point of no return because not only do they have to make up three missing payments plus late fees now they get hit with the attorneys you know that the foreclosure attorneys and normally that's going to add at least three to five thousand dollars onto your delinquency and in most families just don't have that in their budget to recover from that but the ninety day delinquent is at one point three percent a year ago or actually into in November of eighteen it was a one point five CoreLogic says the serious delinquency rate has remained at one point three percent since April of twenty nineteen so I mean that's really very very encouraging the share of mortgages that are in some stage of foreclosure right now nationwide zero point four percent I am in a solo it is it is so it this is very very good news in in just a few one understand where it is and why it is keep in mind that we had a really serious hurricane season last year so the southern states that have the most hurricane damage are the states that have the highest percentage of failure Mississippi is leading the charge on the higher share of of thirty day lates is at seven point six percent or again in Colorado have are tied for the lowest rate at one point nine percent in North Carolina has the largest decline some people that were in trouble that are now rebuilding after the hurricane and getting back on track and add a point seven percent decline in the number of seriously delinquent mortgages so this is all good news and then of the ten largest metropolitan areas Miami as the highest thirty day plus past due at five point four percent in San Francisco as the lowest at one point two which is good you know some of this was one of the most overpriced markets in the country we'll see how that looks a year from now is it you know he's just numbers are are are are very low it just gauge just goes to show how strong the economy is and you know when someone says will gossip that real estate market is so strong why would there be any foreclosures out there whatsoever you know there there are things that are out of people control people lose their jobs fade what if someone **** yeah I mean you know there are things that there's a divorce they're angry they you know they don't wanna sometimes maybe spite or or motion can can dictate over logic and so they're always going to be in the best time for is gonna be some percentage of homes in foreclosure sure I mean what if you just bought a home and now a month later get diagnosed with some disease or you know or or like you say somebody **** and unexpectedly and now you can afford that household without two incomes and invent you haven't owned it long enough to see that appreciation of only only the year it's not gonna appreciate enough to pay all the costs of selling it typically in that amount of time especially on VA loans where they got a hundred percent financing and oftentimes wrapped in the cost of the of the of the closing costs so now they actually got a loan or USDA loan that's a hundred and two percent of appraised value but even with all that these are extremely extremely low numbers great news for the economy when we come back after the break we are going to talk about mortgage debt for older people how that's being affected by the market and also the new MLS numbers that came out this week from to service association of realtors we'll be right back this to some solutions presidents day weekend is finally here and eBay is giving you plenty of reason to celebrate.