PrivoCorp - best contract mortgage processor

Biz Journals - Existing home sales jump 7.6%

The business Journals quoting the National association of Realtors said that the sales of existing homes in April were up 7.6 percent in March, led not only by the homebuyer tax credit, but by improving consumer confidence and favorable affordability conditions.

This is great news for processing companies like PrivoCorp who are on the verge of getting licensed  throughout the country to be able to process loans in accordance with the recent NMLS and SAFE guidelines. For more information on PrivoCorp - check our website at www.privocorp.com, and for more information on the article, check the Washington Journal here

WSJ - 72 Banks closed so far

Four months in to 2010, 72 banks have closed, with experts predicting there are many more to come, according to a report in the Wall Street Journal.

On Friday (May 14th 2010), Akron-based FirstMerit Corp. agreed to take over the branches and deposits of Illinois-based Midwest Bank & Trust Co., which had $3.17 billion in assets, but was in deep financial trouble, according to the Journal. Elsewhere, regulators in Georgia, Illinois and Michigan closed three one-branch banks.

For more information check out the WSJ (paid subscription required)

Vanguard: US Economy looking up?

The United States continued to show signs of recovery this week as retail sales, industrial production, and business inventories all increased. Although the good news was somewhat dampened by a widening trade deficit in March, many economists believe the continued increase in both U.S. exports and imports is another signal of an economy that is beginning to strengthen.For more information visit the Vanguard website. We at PrivoCorp regularly look out for signs of how the overall economy is performing in order to track the mortgage markets.

Global view of the housing bubble - old stuff but interesting

According to this MGI research although the current crisis started with the bursting of the US housing bubble, other economies around the world are feeling the effects of their own real-estate booms and busts. From 2000 through 2007, a remarkable run-up in global home prices occurred (see exhibit). But that trend has reversed abruptly. In 2008, the value of US residential real estate fell 10 percent; the global average fared only somewhat better, declining by almost 4 percent. We estimate that falling home prices erased more than $3.4 trillion of household wealth in 2008. And because home prices are slow to correct, the current slide may persist for some time, which could depress global consumption.

Check the McKinsey article (Global capital markets: Entering a new era.)  for more details