BluegrassForeclosure.com

More 3Q reports.  I think it is important to get a snapshot from banks to see where we are heading in the final few months of the year and for next year as well.  FHL reporting the following:

“At September 30, 2009, 98 percent of our mortgage-backed securities were issued by Fannie Mae or Freddie Mac, which we believe have the backing of the United States government. Only 2 percent ($211 million) of the holdings were in private-label mortgage-backed securities, which comprise high-quality residential mortgage loans issued and purchased in 2003 and which were rated triple-A at September 30, 2009. The underlying collateral has a de minimis level of delinquencies and foreclosures as reflected in the average serious delinquency rate (loans at least 60 days past due) of 0.54 percent of total principal, while their average credit enhancement stood at 7.5 percent. We expect to experience no credit losses on any of our mortgage-backed securities.”

They are projecting that they should be able to hold firm for now.  It will be very telling once the first time home buyer’s credit finally runs out.  All bets are off though, if Congress extends the credit and/or broadens who can use it, which is a distinct possibility.

Read FHL Bank’s full report.