Sheila Bair cautions banks are in no way out of the weeds: “Given the economic uncertainties, we believe all banks should continue to exercise caution and maintain strong reserves.”
Housing Limbo Home prices continue to rise but at a slower rate suggesting, given the sensitive market and hesitant buyers, that prices could start to fall in the coming months. With a trend leaning toward a downward shift in home prices, why haven’t we seen more buyers in the market? According to Wellesley College economist Karl Case there are “a whole bunch of people who are sitting and waiting in the wings.” The question is how long are prospective buyers willing to wait?
The Epic Comes to an End We reported all summer on the David and Goliath struggle between small towns and mortgage giants over the Property Assessed Clean Energy, PACE program. Tuesday, Fannie Mae and Freddie Mac informed homeowners they must pay off their PACE loans before they can refinance their mortgages. Proponents of the PACE program argue the program helps them make the often expensive energy improvements to their house, while at the same time creating jobs.
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