On Site Coverage: Distressed Property Holding Back Mortgage Markets
LAS VEGAS -- Radian Guaranty CEO Teresa Bryce told credit union mortgage executives that the numbers of foreclosed and distressed properties were weighing down the mortgage market.
The private mortgage insurance firm executive told attendees at the American Credit Union Mortgage Association 2010 Fall Conference here that the large volume of mortgage refinances that many CUs are seeing only constitutes a "boomlet" compared to previous refinance market surges.
She added that the numbers of foreclosed or otherwise distressed properties were impacting the market for new mortgages that credit unions could otherwise acquire. Bryce explained that 46% of property sales so far this year have been of foreclosed or otherwise distressed properties.
She said she personally experienced the effects when she and her husband wound up buying exactly the sort of distressed property that is making up the bulk of sales.
"We purchased a house which the builder had run out of money before he could finish," Bryce told the credit union executives. "So that meant that we had to spend more money working with other contractors to finish the house." She said she felt in good company after she saw the statistic on how many of these properties have moved this year.