Posts Tagged ‘recovery’

The Recession: 10 Years Later

Posted on December 08, 2017 by Laura Lam

In December 2007, employment peaked and started to head south – for two long years.  What followed: The loss of more than 8 million jobs, half the value of the Dow and the S&P 500, and trillions of dollars in retirement accounts and household wealth. Lives and businesses were ruined and whole neighborhoods emptied out, as banks took back homes bought on badly underwritten credit. A decade later, the American economy has recovered in many ways. Employers have been steadily adding jobs since early 2010, the stock market is booming and home prices have reached new all-time highs.  But in…

Irma Affected More than 90% of Florida Mortgages

Posted on September 21, 2017 by Laura Lam

More than 90% of all mortgaged properties in Florida are in a FEMA-designated disaster area following Hurricane Irma, nearly three times the number impacted by Hurricane Harvey, according to Black Knight.  “While the total extent of the damage from Hurricane Irma is still being determined, it is clear that the size and scope of the disaster is immense,” said Ben Graboske, Black Knight data & analytics executive vice president. Irma significantly outpaces even the number of borrowers impacted by Hurricane Harvey.  “More than 3.1 million properties are now included in FEMA-designated Irma disaster areas, representing approximately $517 billion in unpaid…

Hurricane Aftermath: Over 25% Could Miss Mortgage Payment

Posted on September 13, 2017 by Laura Lam

Over one-quarter of all mortgages in the areas affected by Hurricane Harvey are likely to become delinquent within 4 months because of the storm, according to an analysis from Black Knight.  Approximately 300,000 mortgage borrowers will miss at least one payment on their loan because of the storm, with 160,000 not making 3 or more payments.  Black Knight modeled this estimate based on changes in the delinquency rate in Louisiana and Mississippi following Hurricane Katrina in 2005. Mortgage delinquencies in affected areas in Louisiana and Mississippi peaked at 34%, with the rate of seriously delinquent loans peaking at 16%. But there…

Majority of Homes Priced Below Pre-Recession Peak

Posted on May 17, 2017 by Laura Lam

While many reports show that home prices in many markets surpassed their previous peak, Trulia’s new study shows this is just the average, and more homes than not have yet to recover their full value lost in the recession.  When it comes to individual homes, the U.S. housing market has yet to recover, according to the study. It shows just 34.2% of homes reached values surpassing their pre-recession peak. While a full 98% of homes in Denver and San Francisco surpassed their pre-recession peaks, this is not the case across other metros in the U.S. In Las Vegas and Tucson, Arizona,…

People Are Still Seeing Red Over the Housing Collapse

Posted on May 05, 2016 by Laura Lam

The nation’s housing markets may be finally getting over the foreclosure crisis, but for many Americans the anger hasn’t subsided.  This recent home sale in Florida may be the perfect encapsulation of the fury felt by some of the more than 5 million Americans served with a foreclosure notice after the housing bubble burst. This 5-bed, 4-bath home in the Lake Cypress Cove suburb of Orlando was valued at $2.7 million back in 2006. We all know what happened next – the collapse in U.S. home prices sent millions of Americans into foreclosure and sparked a Great Recession.  The house…

New Jersey's Jobs Recovery Lags Far Behind Nation

Posted on May 11, 2015 by Saldutti

Nearly every New Jersey county had fewer businesses with fewer employees in 2013 than at the start of the recession, although the numbers have been rising more recently, according to the latest data.  The US Census Bureau’s recently released County Business Patterns data shows New Jersey had nearly 230,000 business establishments in 2013, employing more than 3.4 million people on March 12 of that year. Both of those numbers were about 1% higher than a year earlier. However, there were still fewer businesses with fewer workers than in March 2008 – the early days of what has come to be known as…

The Rebirth of Big Banks

Posted on November 13, 2014 by Saldutti

It’s been nearly six years since the bankruptcy of financial giant Lehman Brothers, an event that triggered a chain reaction of Chapter 11 filings from some of the biggest banks on Wall Street and pulled the country into the Great Recession. More than half a decade out, as the country limps to recovery, it’s understandable that many are still wary of big banks. In spite of this, public opinion is shifting – particularly among the wealthy as we learned in yesterday’s post.  A recent Nielsen survey found that the reputation of big banks has improved significantly in the last several…

Long-Term Unemployment Lingers Long After Recession

Posted on September 23, 2014 by Saldutti

Of those who sustained the worst blows from the Great Recession, few have healed, according to a Rutgers University study released this week.  Federal figures indicate a recovery: Last year, about 38% of the nation’s jobless had been unemployed for 27 weeks or more, which this year dropped to 28%. But the Rutgers study revealed that long-term jobless workers have made long and fruitless job searches, salary concessions in newly accepted positions and serious lifestyle adjustments. The study was part of a series of research examining the views of Americans about work, the economy and government. It was a nationally…

Is Today's Mortgage Market Worse Than Before the Crash?

Posted on May 19, 2014 by Saldutti

In some respects, now is as bad a time for the mortgage business as the aftermath of the disaster of 2008. Of course, the crash was terrible but the industry got the benefit of unparalleled subsidies. Now the business may lose its crutches before it’s ready to keep its balance. More than $100 billion of taxpayer money has been pumped into Fannie Mae and Freddie Mac to keep them on an even keel. The Federal Reserve Board kept short-term interest rates low and bought enormous amounts of mortgage-backed securities, driving down long-term yields and enabling a refi boom that kept…

Happy 5th Annivesary to the Financial Crisis

Posted on September 16, 2013 by Saldutti

Over the course of one week five years ago, the U.S. financial system was brought to its knees. As a reminder of just how bad that week was, consider this timeline: 9/15/2008: Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection. On the same day, Bank of America announced its intent to purchase Merrill Lynch for $50 billion. 9/16/2008: The Federal Reserve Board authorized the Federal Reserve Bank of New York to lend up to $85 billion to AIG under Section 13(3) of the Federal Reserve Act. 9/16/2008: The net asset value of shares in the Reserve Primary Money Fund…