Geithner remains confident (publicly, at least) that the economy is OK but there are plenty of signs out there that say otherwise. More housing problems and loan issues do not suggest a healthy environment or a move in the right direction. After the credit bubble excesses, it's not realistic to assume rapid recovery to the housing market. That process will take years. The good news in this report is that foreclosure rates are stabilizing. They're at very high numbers but leveling off is still a decent sign. CNBC:
Because the report also finds that the "cure rate," which is the rate at which bad loans actually get better, i.e. the borrowers start to pay again, is getting worse.
After a two-month decline, deterioration ratios increased, with 2.5 loans rolling to a "worse" status for every one that has improved. The number of delinquent loans that "cured" to a current status declined for every stage of delinquency, except in the "greater than six months delinquent" category. This improvement was likely the result of trial modifications made through the Home Affordable Modification Program (HAMP) that transitioned into permanent status.
Oh good, so the HAMP program is helping "cure" those 6 month+ delinquencies. No, they're just delaying them yet again, since we know that the re-default rate on HAMP is only rising. Forget cure and think remission.
