|
'I'm home!' Adult children move back in and Fannie Mae needs bigger lifeline
|
|
|
|
The number of adult children who live with their parents, especially young males, has soared since the economy started heading south. Among males age 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005, according to Census data released Thursday. Meanwhile, 10% of women in that age group live at home, up from 8% six years ago.Among the college-aged set, the 18- to 24-year-olds, 59% of males and 50% of females lived with their parents, up from 53% and 46%, respectively.The fact that so many young people are unable or unwilling to flee the nest "cuts into the formation of new households quite a lot," said Mark Zandi, chief economist for Moody's Analytics.Zandi calculated that there are about 150,000 fewer households being formed per year than the 1.2 million that would be in a normal, well-functioning economy. [Read the full article]
The company reported Tuesday a net loss of $5.1 billion, compared to a net loss of $2.9 billion in the second quarter. A year ago, Fannie Mae reported a net loss of $1.3 billion.The current quarter's loss was driven mainly by continued delinquency issues in mortgages it had purchased or guaranteed before 2009. Additionally, Fannie Mae suffered from an increase in expenses related to foreclosed properties. Declining interest rates also contributed to the company's losses.Fannie Mae's (FNMA, Fortune 500) latest request for Treasury funding brings its total bailout to $112.6 billion. This will require an annualized dividend payment to the government of $11.3 billion, more than the company has ever earned in annual net income.Last week, Fannie Mae's twin, Freddie Mac, asked the government for an additional $6 billion, after reporting a $4.4 billion quarterly loss. It has now received $72.2 billion from the Treasury Department. [Read the full article]
Foreclosure filings were reported on 230,678 properties nationwide in October, a 7% increase from September, reported RealtyTrac, an online marketplace for foreclosed properties. Despite the increase, filings were still 31% below year-earlier levels, though.RealtyTrac said one in every 563 U.S. homes had either a default notice, a scheduled auction or a bank repossession filing during the month."The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we've been in for the past year as lenders corrected foreclosure paperwork and processing problems," said James Saccacio, RealtyTrac's CEO.A year ago, several major banks -- including Ally, Bank of America (BAC, Fortune 500), and JPMorgan Chase (JPM, Fortune 500) -- acknowledged problems with paperwork they were using to file foreclosure actions against delinquent homeowners. [Read the full article]
|
