from WealthCycles:
The housing market comprises the asset base of the banking and financial system. When home prices fall, the loss is not marked-to-market price, as the hit to lenders is taken when the foreclosure process is completed.
With the new year comes the annual promises of a housing recovery. As we reported on the 2012 outlook here, prices have continued falling. Institutions had better be ready to take some of the hit from their mélange of non-performing loans or continue to extend and pretend, delaying final write-down of loss.
Banks had better be ready, because according to the latest from Lender Processing Services, foreclosures have risen to an all-time high for the month of January, up 28%!
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