Massachusetts Economy Continues its Rapid Descent (MassBenchmarks) – March 27, 2009

The Massachusetts economy contracted at a 4.2 percent annualized rate in February according to the latest MassBenchmarks Current Economic Index. Recent data revisions indicate that the state economy declined at a 4.7 percent annualized rate in the fourth quarter of 2008, substantially worse than the 3.5 percent decline previously reported but comparatively better than the 6.3 percent annual rate of contraction the US experienced during the same period.

Please click here to read the full bulletin from MassBenchmarks.

FDIC Releases Proposal to Accelerate Loan Modifications – November 17, 2008

The FDIC has initiated a systematic loan modification program at IndyMac Federal Bank to reduce first lien mortgage payments to as low as 31% of monthly income. Modifications are based on interest rate reductions, extension of term, and principal forbearance.

The FDIC’s proposal is designed to promote wider adoption of the systematic loan modification program:

  1. by paying servicers $1,000 to cover expenses for each loan modified according to the required standards; and
  2. sharing up to 50% of losses incurred if a modified loan should subsequently re-default

The FDIC envisions that the program can be applied to the estimated 1.4 million non-GSE mortgage loans that were 60 days or more past due as of June 2008, plus an additional 3 million non-GSE loans that are projected to become delinquent by year-end 2009. Of this total of approximately 4.4 million problem loans, the FDIC expects that about half can be modified, resulting in some 2.2 million loan modifications under the plan

Please click here to read further details of the proposal on the FDIC’s website.

HUD Releases Notice on Green Retrofit Program for Multifamily Housing – May 13, 2009

The Recovery Act is designed to stimulate the economy through measures that, among other things, modernize the Nation’s infrastructure, jump start American energy independence, and protect those in greatest need. Green Building is an approach to sustainable development that is designed to result in a property that reduces energy demand, costs less to operate, improves the residents’ quality of life, and reduces its impact on the environment. Issuance of the Notice implements the Green Retrofit Program.