Reliant Mortgage Company

Housing inventory is up nationally as sellers look towards the spring market, particularly in the Boston area.

Home inventory was up 2.97% in March and up 6.83% over a three month period ending in March 2011, according to the Altos Research’s 10-City Composite Index.

The 10-City Index is highly correlated with the S&P/Case-Shiller Index, and is based on single-family homes in Boston, Chicago, New York, Los Angeles, San Diego, San Francisco, Miami, Las Vegas, Washington D.C., and Denver. However, Altos also reports figures from other cities around the country.

The potential Federal Government Shutdown will delay the mortgage processing and closings.

A shutdown would delay the processing of FHA, USDA, and VA loans, as well as holdup tax transcript verifications and the issuance of flood insurance.

HUD owned properties would most likely not close.

Mortgage finance industry executives sent an open letter on Tuesday, December 21^st, to regulators asking them to adopt national standards for the securitization of home loans as soon as possible, starting with the disclosure and risk retention rules outlined in the Dodd-Frank Act.

The market participants said regulators "must develop new standards for the secondary market in mortgage loans" that promote a sustainable securitization market.  The new definition of what is a qualified residential mortgage "should be the gold standard in all areas" of origination, securitization, servicing, and disclosure.

"The private residential mortgage securitization market is frozen as to new issuance.  The housing market is suffering from a dearth of credit, which is causing a serious lack of confidence among potential homebuyers," the letter said.