Mortgage News

How Much Home Can You Afford?

Tue, 14 May 2013 02:07:44 GMT

The nation’s residential housing market is experiencing the best period it has in years. New home sales and existing home sales are on the increase; creating a seller’s market in some areas of the country.
For most Americans, purchasing a home represents one of the most important decisions they will make in their life—financial or otherwise.
Despite the significant financial investment, a survey conducted by the real estate website Zillow reveals that most people do not properly prepare themselves for the home buying process and later they don’t know when is best to mortgage refinance.

FHA Makes Mortgage Insurance Premium Permanent for New Borrowers

Tue, 07 May 2013 01:39:19 GMT

Written By: John B Landers

The Federal Housing Agency (FHA) originally presented FHA Emergency Fiscal Solvency Act of 2012 to Congress in March 2012. The House passed the measure in late 2012. Beginning in June, the FHA starts enforcing the component of its plan designed to restore the agency to fiscal solvency.
Borrowers who fall below the requisite 20% down payment or equity requirement must pay insurance premium for the entire term of the loan, which may be as long as 30 years.
Apparently, this is how the FHA plans to bolster its finances.

MBA Reports: Mortgage Refinance Demand Rose Last Week

Wed, 01 May 2013 23:55:33 GMT

Written By: Admin

Home Mortgage Applications rose last week driven by high demand for mortgage refinance as interest rates dropped, industry data showed on Wednesday.
The Mortgage Bankers Association (MBA) reported its seasonally adjusted index of mortgage application activity, which includes both refinancing and home buying demand, increased 1.8 percent in the week ending April 26.

15 Year Mortgage Refinance Rates Today Are Ridiculously Low

Thu, 25 Apr 2013 13:56:15 GMT

Written By: Admin

The 15-year fixed rate mortgage fell to 2.61% today, down from 2.64% last week. These low interest rates haven’t been seen since Nov 2012. Freddie Mac released its rates update today showing national rates dropping on a continued slide, across the board. For four weeks in a row, the most popular, 30-year fixed rate mortgage is on a decline, falling a one basis point to 3.40%.
Variable mortgage rates were also down, 5/1 ARMs being the biggest winner loosing 2 basis points down to 2.58% and one-year ARMs lost a single point to reach 2.62%.

Demand in Mortgage Refinance Advances Applications

Wed, 24 Apr 2013 01:20:41 GMT

Written By: Admin

Mortgage applications for U.S. homes increased last week for 3rd week in a row, helped by renewed demand for refinancing, data from an industry group showed on Wednesday.
The Mortgage Bankers Association (MBAs) reports its seasonally adjusted mortgage application activity index, which includes both mortgage refinancing and home buying demand, was up 5 percent in the week ended April 19. The number of home purchases increased by 3.9 percent to reach the highest levels since May of 2010, while the refinance index increased by 5.2 percent.

What HARP 2.0 Extension Means for the Housing Market

Sat, 20 Apr 2013 12:45:34 GMT

Written By: John B Landers

Many home owners watched helplessly as their homes values plunged an average of 34 percent below peak prices. In some states, home values plunged 50-60 percent before the real estate market began its current recovery. Many of these homeowners need to refinance their home loans to take advantage of low interest rates, reduce their monthly mortgage payments and enhance their financial stability.
Home owners who have underwater mortgage may be eligible to refinance under the Homes Affordable Refinance Program (HARP). The program, which has been around since April 2009, has been gone through several revisions.

Foreclosure Activity Levels the Lowest Since Housing Crash

Sun, 14 Apr 2013 23:52:17 GMT

Written By: John B Landers

For the first quarter of 2013, the year-over-year figures for foreclosure-related activities decreased by 23 percent. This is the lowest level of initial notices of default, foreclosures auction and banks taking title to homes since the second quarter in 2007.
To pout thing into perspective, the California-based foreclosure tracking firm RealtyTrac reports that banks foreclosed on 44,000 in March. During the month of September 2010, more than 100,000 home owners lost their homes to foreclosure. The firm’s vice –president Daren Blomquist said "We're getting back to normal and will be there by next year."

Mortgage Settlement Payouts to Start on Friday

Thu, 11 Apr 2013 00:47:52 GMT

Written By: John B Landers

Homeowners who were caught up in the foreclosure process in 2009 or 2010 may be eligible to participate in a $3.6 billion settlement reached between the government—Federal Reserve and the Office of the Comptroller of the Currency (OCC), and 13 mortgage servicing companies.
The amount of the settlement check each borrower receives depends on the amount of damage caused by the loan servicer. Military service members whose homes were foreclosed on while they were on active duty will receive the largest settlement checks.
Each of the 1,082 persons in this group will receive a check for $125,000 because the foreclosure action by the mortgage servicers violated the Service Members Civil Relief Act. It was disclosed that banks foreclosed on 53 service members who were actually on time with their home loan payments.

Inventory Shortage Intensifies Bidding on Homes for Sale

Tue, 09 Apr 2013 02:11:14 GMT

Written By: John B Landers

Across the nation, real estate markets are experiencing tight inventories in the midst of increasing demand for homes. The once abundant supply of homes, especially foreclosures has virtually vanished. Potential home buyers and small investors must compete with international buyers—62% of who pay cash for all transaction according to the National Association of Realtors (NAR). Institutional investors and private equity funds also have the bankroll to pay cash and even bid up the price in some markets as they purchase properties by the hundreds.

Most Existing Home Sales Since November 2009

Thu, 04 Apr 2013 23:44:22 GMT

Written By: John B Landers

Anyone question whether the housing market is actually in recovery may want to look at the latest existing home sales data for February. The National Association of Realtors (NAR) reports that existing -homes sales increase 0.8% compared to January. The increase represents a seasonally adjusted annual rate of 4.98 million units.
This volume of sales is also 10.2% higher than the 4.52 million unit rate reached in February 2012. NAR revised the January annual rate up to 4.94 million units.
For 20 straight months, sales have exceeded year-to-year levels. February sales registered the highest volume for existing homes since November 2009 when the first time home buyer tax credit was in effect.

Fannie and Freddie Release Plan to Help Home Owners

Wed, 03 Apr 2013 22:41:16 GMT

Written By: John B Landers

This week, Fannie and Freddie introduced a plan that would eliminate the requirements for borrowers who are 90 days delinquent in their mortgage payment to have to prove hardship to have their home loans modified to a lower monthly payment.
Almost since his appointment as acting director of the Federal Housing Finance Agency (FHFA) Ed Demarco remained steadfast about not deviating from the agency’s mission as a guardian over taxpayers’ assets—held by Fannie Mae and Freddie Mac.
This was in response to call for Demarco to make policy changes at Fannie and Freddie that would help struggling homeowners during the housing crisis. Demarco has sole authority over the government-sponsored enterprises.

Mortgage Refinance Strategies For The Improved Housing Market

Mon, 01 Apr 2013 00:11:55 GMT

Written By: John B Landers

After losing an average of 35% in home equity since the real estate crash, many Americans have seen their home equity increase significantly as the market improves. Based on a Federal Reserve Board report, equity has risen by $1.7 trillion since 2011.
In fact, a recent Federal Reserve board study shows that homeowners experience about a half $1 trillion increase in home equity during the final quarter of 2012. The current total of $8.2 trillion in equity represents the highest amount since the beginning of the housing crisis. As a result, mortgage refinance has opened as an option for many borrowers.

Homes Prices: Biggest Increase Since Housing Bubble Burst

Thu, 28 Mar 2013 00:12:08 GMT

Written By: John B Landers

Housing market analysts have expressed concern about a supply shortage of existing-homes for sale. The volume of existing homes for sale has plummeted to the lowest volume in decades. The lack of sufficient inventory has a direct correlation with the number of homeowners who have been incapable or unwilling to sell their homes.
Many of these homeowners have underwater mortgages—they owe the bank more than their home is worth or experienced a significant drop in the value of their homes over the past several years and want to try and regain some of the lost equity.
Until recently, the glut of foreclosures on the market and slower mortgage refinance caused a housing glut and made it financially impractical for home builders to construct new homes.

Qualify for a VA Loan after Foreclosure

Thu, 21 Mar 2013 00:38:19 GMT

Written By: John B Landers

After the financial crisis of 2008, many people lost jobs or suffered other mishaps that eventually resulted in 4.5 million foreclosures by 2012. Service Members and other borrowers with VA loans were among those affected. Today, the housing market recovery has finally taken hold. Although the unemployment rate is 7.7%, the job market has started to show a little life.
Like many people who lost their homes to foreclosure, veterans want to get back into home ownership. To qualify for a VA loan after a foreclosure, the person must wait at least two years in most states.

Foreclosures Drop to 5-Year Low, Caution Remains

Tue, 19 Mar 2013 01:35:58 GMT

Written By: John B Landers

Across the US, foreclosures have dropped nearly 29% compared to the same in 2012. Is the lowest rate of foreclosure activity since 2007 and it comes in the midst of war effort by state legislatures and courts to regulate property seizures after more than 4.5 million Americans lost their homes between 2007 and 2012.
According to information released by Irvine, California-based RealtyTrac, home repossessions totaled 45,038 in February-- an 11% decrease compared to January. It represents the fewest numbers of foreclosures since September 2007. Foreclosures in Oregon dropped to 78%. Massachusetts experienced the next highest highest decrease in foreclosures at 69%.

Is Jumbo Mortgage Refinance Possible and Under Which Terms?

Fri, 15 Mar 2013 00:58:39 GMT

Written By: John B Landers

Many homeowners who buy homes with high property values, and can afford to make larger monthly mortgage payments, usually take on nonconforming or jumbo loans.
A jumbo loan refers to mortgage financing for loan amounts higher than the maximum conforming limits established by Freddie Mac and Fannie Mae. Mortgage lenders also have blended jumbo loan products, which combines a home loan and home equity line of credit.
According to the trade publication Inside Mortgage Finance, lenders completed $38 billion in private jumbo mortgage applications during the second quarter last year. This represented a 65% year over year increase above 2011 and the highest quarterly dollar volume since the first quarter of 2008.

Homeowners Renovate to Increase Equity To Sell Or Mortgage Refinance

Fri, 08 Mar 2013 12:24:34 GMT

Written By: John B Landers

A home renovation is different than applying a fresh coat of paint, installing a new front entrance door, or staging your home to show to interested buyers. Depending on the extent of the renovation, you can spend a few thousands or tens of thousands of dollars.
Some people choose to take advantage of low interest rates, complete a mortgage refinance and remodel their homes. They intend to stay put for the next 15 or 20 years, which can be very rewarding experience. Other homeowners have decided to renovate their homes—increase the value even more—and sell.
Here are some considerations both homeowners will find helpful:

Lenders Must Base Mortgage Refinance Rejections on Credit-Worthiness

Wed, 06 Mar 2013 22:18:25 GMT

Written By: John B Landers

Mortgage lenders receive lots of publicity about foreclosures and lending practices related to faulty paperwork and other business processes. One problem that has not received as much attention is mortgage discrimination.
This situation occurs when mortgage companies reject home mortgage or mortgage refinance applications for inappropriate reasons, which violates state and federal laws.

Short Sales Volume Helps Stabilize Market for Mortgage Refinancing

Mon, 04 Mar 2013 01:40:33 GMT

Written By: John B Landers

Last year, mortgage lenders completed more short sales transactions than foreclosures--by a three-to-one margin. Foreclosed homes accounted for about 11% of all home sales in 2012, compared to 13 % in 2011. The volume of short sales increased by 5% and made up 32% of home sales deals.
Many homeowners have been unable to qualify for a mortgage refinance and take advantage of the historic low mortgage interest rates. Some of these people elect to enter short sales transactions to get from under the financial burden of costly underwater mortgages.

Increased Home Equity Helps Retirees Qualify for Reverse Mortgage Refinance

Wed, 27 Feb 2013 00:15:18 GMT

Written By: John B Landers

Between 2007 and 2012, home values plunge an average of 35% across the nation. In some areas like Florida, Nevada, California, and Arizona, home owners loss as much as 60% of their homes’ value--and home equity.
In the fourth quarter of 2011, home equity for U.S. homeowners dropped to a low of $6.45 trillion, according to figures released by the Federal Reserve. From January to September 2012, the trend reversed, with home prices rising 20%. Homeowners experienced a $1.3 trillion increase in home equity to $7.71 trillion.
Home price appreciation presents good news to all homeowners—especially retirees or and people close to retirement who plan to tap into their home equity to finance their lifestyles. Increasingly, a common option for older homeowners who have equity in their homes is to use that wealth to obtain a reverse mortgage or complete a reverse mortgage refinance.

Homeowners Hurt By "Zombie Foreclosure" Debt after Walking Away

Fri, 22 Feb 2013 13:49:40 GMT

Written By: John B Landers

Housing experts estimate that anywhere from tens of thousands to as many as 2 million “zombie” foreclosures line neighborhoods across America. The term refers to homes where borrowers move out after a foreclosure auction has been scheduled. However, months—sometimes years later, it’s discovered that the auction never materialized or the mortgage lender failed to transfer title to the property.

President Obama Wants to Eliminate Obstacles to Mortgage Refinance

Fri, 15 Feb 2013 12:48:32 GMT

Written By: John B Landers

After nearly six years of a badly deteriorated housing market, the real estate analytics firm Corelogic estimates that 4.5 million Americans lost their home. According to the S&P Case-Shiller Home Price Index, the average U.S. homeowner lost about 35% off the value of their home 2007 - 2012. That amounts to almost $7 trillion of wealth—most of it which homeowners planned to use to help fund their retirements.
Currently, 11 million Americans have an underwater mortgage, based on Corelogic numbers. The term has become synonymous with homeowners who owe more on the balance of their home mortgage than the actual market value of their home.

Determine If Refinancing to Shorter Term Loan Is a Good Choice

Sun, 10 Feb 2013 23:25:47 GMT

Written By: John B Landers

Higher home values and low mortgage interest rates have many homeowners consider refinancing their mortgages. In additional more borrowers are choosing loan products with shorter terms. This presents a viable option for homeowners who want to save more money on the mortgage over the long-run.
Borrowers who have a high-interest rate and can refinance to a significantly lower rate, may be able to avoid higher monthly mortgage payments. However, many people who refinance to a loan with a shorter payback period will end up with higher payments.

Big Investors Dominating Residential Real Estate Investment

Wed, 06 Feb 2013 01:52:37 GMT

Written By: John B Landers

Cheap foreclosed homes across the nation have attracted droves of investors to the recovering housing market. The traditional mom-and-pop investors who have always depended on real estate investing to fund their retirements no longer have this landscape to themselves. The chance to earn huge profits has gained the attention of big-time investors.
Big investors see significant profit opportunities after five years of real estate values plummeting. Between 2007 and 2012, residential home prices plunged an average of 34% nationwide, based on the S&P Case-Shiller Home Price Index. In some areas like Las Vegas and Miami, home prices dropped 50% to 60%.

New Subprime Mortgage Refinance Loan Proposed by Housing Advocates

Mon, 04 Feb 2013 00:40:09 GMT

Written By: John B Landers

Historically, lenders made subprime loans to borrowers with damaged credit or inadequate credit histories. These mortgages, which carry interest rates substantially higher than the prime rate, include compensation paid to lenders for the increase risk.
The combination of historic low interest rates, falling home prices and new home construction have many housing advocates calling for a new type of “subprime loan,” which will cater to individuals with lower income or faulty credit.
Faith Bautista, of the National Asian American Coalition, said it would help many former homeowners who were caught in the mortgage meltdown, and suffer job loss or damage credit, chance to rebuild their finances. Many of these people have found new jobs and saved the necessary down payment.

Six Mortgage Refinance Strategies for 2013

Mon, 28 Jan 2013 01:55:39 GMT

Written By: John B Landers

With mortgage interest rates still floating around historic lows, everything points to now as a good time for homeowners who have not already done so to mortgage refinance. Along with extremely low mortgage rates, the employment picture has improved and home prices have increased. Some impediments to refinancing remain, such as low appraisals and tighter credit criteria. These factors make it challenging for some borrowers to refinance.
Nonetheless, here are a few strategies to help you determine if a mortgage refinance is right for your current circumstances.

Home Prices and Sales Affected by Low Inventory

Wed, 23 Jan 2013 13:38:41 GMT

Written By: John B Landers

The housing industry has been a major source of good economic news lately after five years of poor performance. Home values have appreciated across the country for five straight quarters through December 2012. Last year, home prices rose nearly 6 percent, which is twice the historical average. The average home price appreciation for a single year is 3 percent.
Stan Humphries the chief economist for the real estate website Zillow, warns home owners to not expect the same rate of home value appreciation in 2013. Humphries states that he anticipates the market will slow to a more “sustainable pace. In 2013, “home prices will increase an average of 3.3 percent across the U.S., according to Zillow.

Mortgage Refinance Surge May Be Approaching a Top

Sat, 19 Jan 2013 13:51:17 GMT

Written By: John B Landers

The major banks have added significant profits to their bottom lines due to a surge in mortgage refinance completions in 2012. This is in great contrast to activity level seen after the Great Recession, which started in June 2007. Mortgage lenders were completing very few mortgage refinance applications because unemployment, high consumer debt, and falling property values dominated the housing market, which made it difficult for homeowners to qualify for refinancing.

New Rules for Mortgage Lenders Go Into Effect January 21

Thu, 10 Jan 2013 14:58:18 GMT

Written By: John B Landers

Starting January 21, mortgage borrowers will know precisely what their mortgage product cost them and other terms based on new regulations released by the Consumer Financial Protection Bureau (CFPB). The primary purpose of the new rules is to prevent mortgage lenders from making loans to borrower who do not have the resources to pay off the mortgage, according to CFPB’s director Richard Cordray.

Bank of America Settles another Mortgage Bond Case

Tue, 08 Jan 2013 01:45:07 GMT

Written By: John B Landers

Bank of America (BofA) has entered into an $11.6 billion agreement with Fannie Mae to settle the bad loans it sold to the government sponsored enterprise in the form of mortgage-backed securities (MBS). The total settlement includes a cash payment of $3.6 billion made to Fannie Mae.
In addition, the bank must buy back 30,000 risky mortgages, worth $6.75 billion purchased and insured by Fannie. These home loans have a high risk of going into default. The lender also pays the mortgage agency $1.3 billion for failure to deal with foreclosures in a reasonable time frame.

Refinance Mortgage or Buy Now Before Interest Rates Increase

Fri, 04 Jan 2013 18:56:12 GMT

Written By: John B Landers

Home owners who intend to complete a mortgage refinance soon and people looking to purchase should move quickly to take advantage of low interest rates.
This is the message put forth by two Federal Reserve by economists Andreas Fuster and David Lucca, who work at the New York regional bank. The communication contradicts the dynamics of the relationship between mortgage rates and mortgage bonds.
Usually, mortgage interest rates have a direct correlation with mortgage bonds. For example, if the interest rates paid on bonds falls lower, a decrease in mortgage interest rates usually follows

New Home Sales Reach Two-Year High in November

Sun, 30 Dec 2012 23:23:34 GMT

Written By: John B Landers

According to the U.S. Census Bureau, in November new home sales increased to the highest level in two years. For the month, new homes sales climbed 4.4 percent to 377,000. Year-over-year sales rose 15%. The last time the annual rate of new home sales reached this level occurred in April 2010. At that time, the temporary tax credit for home buyers was in effect.
With existing home sales and home construction also showing improvement, the current data provide multiple signals that the housing market has entered into recovery mode. In addition, historic low mortgage interest rates, fewer foreclosures on the market, and a declining unemployment rate, has increased demand among home buyers.

Mortgage Interest Rate Mixed as Mortgage Refinance Applications Fall

Wed, 26 Dec 2012 22:04:10 GMT

Written By: John B Landers

Mortgage refinance rates turned in mixed result based on amidst various reports on inflation and housing construction, based on figures released by Freddie Mac. The benchmark 30-year fixed rate product rose to a six week high at 3.37% compared to a rate of 3.32 percent a week ago and a year-over-year rate of 3.91 percent. Overall, the 3.37 percent rate still calculates lower than the average rate of 3.5 percent, which covers the past 13 weeks.
The 15-year fixed rate decreased from 2.66 percent to 2.65 percent the prior week. The rate for hybrid adjustable-rate-mortgage (ARMs) was 2.71 percent for the five-year ARM-- up from 2.7 percent. The one-year ARM dropped to 2.52 percent, down from 2.53 percent the previous week.

Determine If Mortgage Refinance Makes Sense For You

Tue, 18 Dec 2012 01:08:31 GMT

Written By: John B Landers

As mortgage interest rates continue to plummet and inflation remains under the Federal Reserve two percent benchmark, more and more people ask the question: Should I Refinance My Mortgage. Even a just a slight difference in the interest rate on a 30-year fixed-rate mortgage can make a significant difference.

You should run various scenarios to decide whether you would benefit from a mortgage refinance other if you would lose on the proposition. Of course, your interest rate will depend on your credit score.

Fed to Likely to Intervene in Economy- More Banks Sued by Bond Investors

Tue, 11 Dec 2012 19:57:41 GMT

Written By: John B Landers

If all goes as expected on Wednesday, the Federal Open Market Committee will vote to increase its purchase of Treasury Securities to give a badly need stimulus to U.S. economic growth as we enter the new year. The Feds announced after the close of its September policy meeting that it would start buying an additional $40 billion worth of bonds-- starting that same month.
It also left open the possibility that it would take further action if the labor market did not improve.
As we border on a new year, the housing market seems to finally be in recovery with inventories falling across the nation, demand up, a high mortgage refinance applications, more ground-breaking for new homes, and home prices appreciating after five years of decline.

Which Government Program Helped the Most and What the Fed Has in Mind for 2013?

Tue, 04 Dec 2012 23:59:03 GMT

Written By: John B Landers

The major criticism about President Obama’s housing programs has been the failure of the programs to help as many homeowners as were originally intended.
The first program called the Home Affordable Modification Program (HAMP) was originally introduced right after the financial crisis in late 2008. When the administration announced HAMP in February of 2009, it promised to help over 4 million American homeowners. The Home Affordable Refinance Program (HARP) came along in March 2009.
Neither program has lived up to its original claims.

What the Fiscal Cliff Means for Homebuyers and Mortgage Refinance

Wed, 28 Nov 2012 23:40:09 GMT

Written By: John B Landers

By now, the average U.S. homeowner has probably heard numerous news reports about the looming “fiscal cliff.” Many potential borrowers who plan on a mortgage refinance or to buy a home may be unclear about what the fiscal cliff means and how it affects their personal circumstances.
Fiscal cliff refers to financial repercussions of actions the federal government will be forced into taking--in the form of tax increases and budget cuts—if Congress fails to resolve certain budgetary issues as outlined in the Budget Control Act of 2011. The law goes into effect at midnight on December 31, 2012.

The Time for Mortgage Refinance Is Now

Tue, 27 Nov 2012 00:42:43 GMT

Written By: John B Landers

At long last, it seems the five year freefall in home values have reached a bottom and the housing recovery has finally gotten on track. Some economists continue to exercise caution before jumping completely on the bandwagon. They cite tight credit underwriting criteria that are still too tight and a mortgage refinancing backlog caused lenders by reluctance to hire more staff to process mortgage refinance applications.
Record low interest rates have also helped to fuel demand for mortgage refinances. Federal Open Market Committee (FOMC) also express that the housing market has a long ways to go to reach the “optimum level” needed to help grow the economy. To ensure interest rates stay low, and possibly push rates lower, the FOMC has indicated that it will buy more bonds when the current maturity extension program called Operation Twist, which began in late 2011, expires in 2013.

Banks Release Preliminary Report for Mortgage Settlement Agreement

Tue, 20 Nov 2012 16:03:45 GMT

Written By: John B Landers

According to a report released by the independent settlement monitor Joseph A. Smith Jr., the lenders to the mortgage settlement have paid out $26 billion to more than 300,000 homeowners. In February 2012, five big banks-- Citibank, JPMorgan Chase, Bank of America, Wells Fargo and Ally Financial, reached a deal with state and federal government negotiators to resolved issues related to the robo-signing scandal, which dominated news headlines in October 2010.
The robo-signing scandal alleges the lenders used deficient paperwork, illegal signatures and faulty procedures to illegal foreclosures on homeowners.
The average settlement amount is $84,385 per homeowners from 49 states and the District of Columbia. The State of Oklahoma worked out a separate settlement with the banks.

FHA Mortgage Refinance: Options for Homeowners Affected by Sandy

Thu, 15 Nov 2012 14:24:49 GMT

Written By: John B Landers

As a result of Hurricane Sandy, borrowers who were in the midst of FHA mortgage refinancing, or other mortgage transactions in affected areas, should understand that many of these dealings have now been put on hold. A large number of homes will have to be inspected or re-inspected for potential damages caused by the superstorm. Estimates of damages from the storm is somewhere between 60 billion and $90 billion over seven states.
The Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHFA)— oversight authority for Fannie Mae and Freddie Mac—encourage lenders to work with home owners who homes were destroyed or need repairs, individuals in the trial period of mortgage modifications, or borrowers who need to refinance their homes.

Action on Senate Mortgage Refinance Bill Postponed

Tue, 13 Nov 2012 10:33:36 GMT

Written By: John B Landers

The mortgage refinancing deal proposed by Senators Robert Menendez (N.J.) and Barbara Boxer (CA) has been postponed. The legislation was introduced in the early summer as a measure to help millions of homeowners refinance their home loans into low-interest rate mortgages and help fuel the economic recovery.
As it now stands, lawmakers will not address the issue of mortgage refinance until after they return from their Thanksgiving holiday leave. Initially it was thought that the bill would come up for the first vote immediately after the summer recess. However, it has been delayed, In the meanwhile, a sportsmen's bill sponsored by Sen. Jon Tester is slated for completion sometimes this week.
According to some reports, the mortgage refinancing legislation, which has received heavy support from President Obama because of its possibility of helping borrowers who have trouble making their mortgage payment, could show up on Senate agenda in December along with legislation designed to avoid the fiscal cliff-- huge spending cuts and massive tax increases, which automatically go into effect at the end of the year.

What President Obama’s Reelection Means for the Mortgage Bond Market

Thu, 08 Nov 2012 00:03:55 GMT

Written By: John B Landers

The largest real-estate investment trust (REIT) listed on the New York Stock Exchange, Annaly Capital Management Inc., like other companies that specializes in the purchase of mortgage-backed securities (MBS) are not among the many who celebrate the reelection of Barack Obama as president of the United States.
REIT refers to firms that have a collection of the real estate related investments. Besides investing in mortgage bonds, REITS may have holdings in commercial real estate, residential properties, and the equities of firms connected with real estate, which include mortgage lenders.
The biggest fear of firms like Annaly Capital Management concerns the possibility a second term for President Obama will lead to more aggressive housing schemes, which will assist home owners to refinance from high-interest rate loans into low-interest rate mortgages--especially home owners who have obligations insured by Fannie Mae or Freddie Mac.

Help for Home Owners and Renters Impacted by the Super Storm

Sat, 03 Nov 2012 19:53:55 GMT

Written By: John B Landers

Mortgage Relief is coming for homeowners hit hard by Superstorm Sandy. The government-sponsored enterprises (GSA), Fannie Mae and Freddie Mac, own or insure 60 to 70 percent of all the mortgages in the U.S. In the aftermath of super storm Sandy, the GSAs will help homeowners with plans to offer breaks on mortgage payments and other types of financial assistance. who lose their source of income or face a decline in home value as a result of the historic storm. The GSAs have instructed mortgage lenders that service their loans to provide assistance to home owners.

Obama vs. Romney Real-Estate and Mortgage Refinance (Infographic)

Fri, 02 Nov 2012 14:49:01 GMT

Written By: Admin

This infographic compares the 2012 Presidential candidates where they stand on the Financial Industry and who is more likely to turn the Real-Estate around for the benefit of the taxpayers. Facts show that Obama has made a lot more effort to jump start Mortgage and increase Real-Estate sales whereas Romney relies on faith that the market will re-adjust itself and the only action needed is to sell 200,000 vacant foreclosed homes owned by the government.
Obama's QE3 program if applied and run properly should guide the real-estate market back in gear as soon as the Federal government starts making profit on their MBS investment.

Freddie Denied Mortgage Refinances to Earn Higher Profits

Thu, 01 Nov 2012 14:08:19 GMT

Written By: John B Landers

According to a report published on the ProPublica website, the taxpayer-owned government-sponsored enterprise (GSA) Freddie Mac resisted refinancing the mortgages of millions of Americans from high interest rate home loans out of worry that it would cut into Freddie’s profits.
More than 10.8 million Americans have underwater mortgages. This figure represents about 22% of all homeowners with mortgages. The inability for many of these homeowners to receive financial relief in an environment of record-low interest rates constitutes one of the major failures of President Obama’s administration.

Bank of America Charged with Fast-Tracking Home Mortgages

Mon, 29 Oct 2012 01:11:47 GMT

Written By: John B Landers

Following a settlement with J.P. Morgan Chase and the filing of a lawsuit against Wells Fargo Inc., the federal government has filed litigation against the Bank of America (BofA) for mortgage fraud. In its complaint, the U.S., Attorney General says that the Bank of America committed fraud by selling defective mortgages.
The scheme became known within the corridors of the Bank of America offices as "the Hustle.” It’s a moniker for the BofA streamlines mortgage origination process program called High-Speed Swim Lane (HSSL).
Mortgage refinance loans were purchased by government-backed mortgage finance firms Fannie Mae and Freddie Mac, and resulted in over $1 billion in taxpayers losses and countless foreclosures, according to the charges announced Wednesday by the U.S. Attorney for the Southern District of New York.

Flopping: Short Sale Scheme Swindles Mortgage Lenders

Thu, 25 Oct 2012 00:08:02 GMT

Written By: John B Landers

A short sale occurs when the homeowner list the property for sale but receives an offer that is lower than the balance on the home loan. The homeowner accepts the buyer’s offer and wants to get out with no foreclosure and $0 debt.
However, to consummate a legally binding sales contract, the mortgage lender must agree to accept less than what the borrower owes on the mortgage and sign the offer to purchase. By signing off on the offer to purchase, the bank forgives the remaining balance on the home mortgage.
The seller benefits by getting relief from a burdensome home debt and avoiding the negative ramifications of a foreclosure on their credit report.

Will QE3 Save The Real-Estate Market Infographic

Wed, 24 Oct 2012 16:19:06 GMT

Written By: Admin

The Federal Reserve, Central Bank of United States launched a QE3 (Quantitative Easing 3) Program in effort to repair the broken mortgage industry. QE3 will buy $40 Billion dollars worth of MBS (Mortgage-Backed Securities) each month hoping to lower mortgage interest rates and motivate mortgage banks to lend more money.

Less Competition Adds to Cost of Purchases and Mortgage Refinance

Tue, 23 Oct 2012 00:50:31 GMT

Written By: John B Landers

For the last few months, some mortgage industry analysts and professionals have stated that historic low mortgage interest rates should be even lower. The publisher of Inside Mortgage Finance Guy D. Cecala states that if lenders had the same profit margin that was in place of a few years ago, a 30-year fixed-rate mortgage at an interest rate of 3.55 percent would be about a ½ point lower or 3.05 percent.
This would save a borrower about $30,000 on a $300,000 mortgage, said Cecala.
In light of the fact that major mortgage lenders have reported record-breaking profits in the third quarter 2012, the argument that borrowers should be paying lower interest rates when buying or refinancing mortgages takes on more relevance.

Morgan Stanley Sued For Risky Mortgage Lending

Fri, 19 Oct 2012 15:06:10 GMT

Written By: John B Landers

The American Civil Liberties (ACLU) filed litigation in U.S. District Court in New York. This lawsuit represents the first legal action that specifically names an institution that funded subprime loans as opposed to suing the bank that made the loans. The complaint alleges that Morgan Stanley collaborated with a division of the failed mortgage lender New Century Financial Corp to targeted African-Americans for the marketing of subprime mortgage loans. According to court documents, the investment bank colluded with New Century Financial to sell mortgage products to blacks, which had unjustifiably high costs. These high-cost mortgage products also had a significant possibility of leading to homeowner default.
Then, Mortgage Stanley packaged these home loans into mortgage-backed securities (MBS), which it sold to bond investors. Morgan Stanley also received exorbitant fees by securitizing subprime mortgages and selling them on the bond market.