Rising mortgage rates are likely to trigger a jump in mortgage defaults in California by the second quarter of 2005, according to Foreclosures.com, a Sacramento-based investment advisory firm.Alexis McGee, president of Foreclosures.com, said unemployment is no longer the main cause of foreclosures. "The problem now is that too many households are overloaded with debt," Ms. McGee said, noting that many consumers have continued spending by using adjustable-rate home equity credit lines. "You could say that homeowners got addicted to a combination of low interest rates and double-digit price appreciation every year. Now that combination has reversed itself." The housing market had begun softening in California but is now undergoing a year-end surge because "fence-sitters" want to lock in lower rates before mortgage rates rise further, she said. Ms. McGee predicted that California housing markets will slump in the first quarter, causing defaults to climb. The company can be found online at http://www.foreclosures.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
10h ago