Mortgage News

FHA Fee Reductions May Help 3.5 Million Borrowers To Mortgage Refinance

Tue, 22 May 2012 02:28:22 GMT

Today, many borrowers have a desire to refinance their mortgages to take advantage of historic low mortgage interest rates. However, over 11 million Americans have experienced a decline in their home values below what they owe on their loans. The S& P/Case -Shiller Home Prices Index reports that the value of the average home declined 34 percent since the housing market reached its top nearly six years ago.
Almost in lock step with the decline in home values, the percentage of mortgages guaranteed by the Federal Housing Agency (FHA) have increased from just two percent of total mortgages in 2006 to over 18 percent in 2011.
Like many of their fellow homeowners with privately held mortgages or loans guaranteed by Fannie Mae and Freddie Mac, borrowers with FHA-insured mortgages have found it nearly impossible to participate in the FHA’s Streamline Refinance Program because they have “underwater” mortgages.

Ninety-Five Percent of Borrowers Prefer Fixed-Rate Mortgages When Refinancing

Wed, 16 May 2012 14:09:18 GMT

Written By: John B Landers

Freddie Mac released its Quarterly Product Transition Report for the first three months of 2012. U.S. homeowners who mortgage refinance overwhelmingly chose fixed-rate mortgages over other loan products. Over 95 percent of borrowers prefer fixed rate mortgages whether they had adjustable-rate mortgages (ARMs) or fixed rate loans originally.
The percentage of borrowers who refinance to fixed-rate loans remain at the same share as reported Q1 last year.
The report reviewed mortgage refinance applications submitted to Freddie Mac during the first quarter of 2012. Following are some of the metrics revealed in the Freddie Mac survey:

Four Things to Watch For in Housing and Mortgage Markets

Thu, 10 May 2012 02:10:38 GMT

Written By: John B Landers

When the housing market peaked in the summer of 2006, Barron’s magazine wrote that home prices would drop as much as 30% over the next few years. The economists underestimated, and home prices have dropped to an average of 36% according to the latest S&P Case/Shiller home price index.
For most of last nearly six years, the housing market has declined to levels that would have been impossible for most people to imagine during the boom years. Starting in the last quarter of 2011, and continuing through the first quarter of 2012, the housing market has sent a bundle of mix signals as it attempts to find a bottom.
For homebuyers and real estate investors, the deep recession has a presented an opportunity to buy properties at bargain rates and finance them at low mortgage interest rates.

Cheap Home Prices and Low Mortgage Rates Present Buying Opportunity

Wed, 09 May 2012 12:53:02 GMT

Written By: John B Landers

In many regions of the country, it seems all the indicators point to home prices starting to stabilize. Many housing market economists believe that homes prices have reached the bottom in most regions of the country. Homes prices have dropped an average of 34 percent since July 2006. In addition, homebuyers can obtain interest rates for home mortgages and mortgage refinance at extraordinary low rates. Many housing analysts have signaled that 2012 may present the best opportunity for homebuyers to purchase the home they want at cheap prices.

Mortgage Refinance Rates at Record Lows

Mon, 07 May 2012 00:57:03 GMT

Written By: John B Landers

The Mortgage Bankers Association report that mortgage applications rose over the previous week by 0.1 percent. More borrowers showed a willingness to take than the week ending April 27, 2012. The volume of mortgage refinance requests declined 0.7 percent from the prior week. Refinancing application dropped to 72.6 of mortgage activates as compared to 73.4 percent. Consumer loan and mortgage information statistics from MortgageRefinance.com reports the nationwide average for a 30-year fixed rate mortgage at 3.97 percent.
The average 15-year mortgage rate was 3.04%, down from the record of 3.11% set four weeks ago.

Fifth Third Bank Offers HARP 2.0 Mortgage Refinancing

Tue, 01 May 2012 15:32:24 GMT

Written By: John B Landers

On Monday, the 14th largest mortgage originator in the U. S., Fifth Third Mortgage Company, announced plans to become a player in the Home Affordable Refinance Program or HARP 2.0. Fifth Third Mortgage Company is a subsidiary of Fifth Third Bank.

Mortgage Recasting - Lowering Your Monthly Mortgage Payments

Mon, 30 Apr 2012 16:49:47 GMT

Written By: John B Landers

Some homeowners want to reduce their monthly mortgage payment, but prefer not to or cannot mortgage refinance. A little known option, called “recasting” or “re-amortization, can help you accomplish this objective.
The technique requires you to make a lump sum payment. The mortgage lender recalculates the mortgage to reflect the one-time payment. Recasting your mortgage does not reduce the amortization period. If you start out with a 30-year fixed rate mortgage, the term remains the same.

Three Factors that Support Home Buying Now

Fri, 27 Apr 2012 02:22:57 GMT

Written By: John B Landers

In a recent JP Morgan report, entitled Market Insights, the authors say the United States has the "cheapest housing market in decades." The recent S&P/Case- Shiller Housing Price Index states that housing prices have fallen to the lowest prices since the market top occurred in mid-July. The figures support the claim of cheap housing prices, with price an average of 35 percent off their high.
The report listed several characteristics of the current market that screams now may represent one of the best opportunities in recent history to become a homeowner.
Following are three of the attributes evaluated in the JP Morgan analysis:

Home Prices Near Bottom Says Economists

Thu, 26 Apr 2012 00:48:00 GMT

Written By: John B Landers

The most recent version of the S&P/Case-Shiller Home Price Index released on Tuesday shows that home prices hit new lows since values peaked nearly six years ago. The index registered a decline of 3.5%, in the 20 Metropolitan areas measured, compared to February of 2011. The 10-City Composite dropped 3.6 percent over the same period. The current home price index values have home values at their lowest levels since November of 2002.
The Metropolitan Statistical Areas of Atlanta, Charlotte (-1.8%), Cleveland, Chicago (-6.9%), Las Vegas (-8.5%) and New York (-3.0%) Portland (-3.0%), Seattle (-2.9%) and Tampa (-2.9%) all reached new lows in home value. Home prices in Atlanta have dropped for five straight months and plummet more than 17.3 percent between February 2011 and February 2012 --the biggest drop in the 20-year history of the index. Home values in Atlanta have fallen to 1998 price levels.

Applications for Mortgage Refinance Going Up

Thu, 19 Apr 2012 16:13:58 GMT

Written By: John B Landers

The latest Mortgage Banker Association (MBA) polls shows that the volume mortgage applications rose 6.9 percent for the week, ending April 13, 2012. Unadjusted figures have the index percentage increase at 6.5 percent. The purchase index declined 11.2 percent over the previous week. The mortgage refinance component or mortgage refinance index rose 13.5 percent over the prior week.
Refinance applications were up 75.2 percent of total applications, up from 70.5 percent. Adjustable rate mortgages accounted for 5.3 percent of all applications—a decline from 5.5 the previous week.

Six Trends for Mortgage Refinance and Home Buying

Tue, 17 Apr 2012 16:57:18 GMT

Written By: John B Landers

Developing trends in the housing market may indicate its time to purchase a home or that investment property if you have been waiting for the “right opportunity.” Driven by historic low interest rates and low home values, many buyers have started to come into the market simply because it may make a better bargain than renting and interest rates will probably not go much lower.
Most of the good news goes to homeowners interested in mortgage refinance and underwater homeowners. Millions of borrowers will have the opportunity to mortgage refinance through two government programs that make the refinancing process affordable.
The time may be right for people living considering a purchase to buy their home. Trying to time if home values have reached bottom or if prices will continue to drop more mean risking higher interest rates or home prices.

Foreclosure Filings Rise After Mortgage Settlement

Mon, 16 Apr 2012 14:25:18 GMT

Written By: John B Landers

When the team of federal and state negotiators reached the $26 billion agreement with the five major mortgage lenders earlier this year, one of the consequences has been a resumption of foreclosures. RealtyTrac reports that most foreclosure activities have declined. However, during the first quarter of 2012, foreclosures flings have increased an average of 10% in 26 states. Indiana registered a 45 percent on an annual basis, and Florida‘s foreclosure filings rose by 26 percent. Florida has about 25 percent of the nation’s foreclosures, with more than 365,000 foreclosures cases.
Since the housing crash in 2008, more than 3.4 million Americans have lost their homes to foreclosures, according to the real estate analytics firm CoreLogic. This number of foreclosures overwhelmed mortgage lenders and mortgage servicers.

FHFA Principal Reductions Can Help Over 600,000 Underwater Homeowners

Fri, 13 Apr 2012 02:28:30 GMT

Written By: John B Landers

The Federal Housing Finance Agency (FHFA) continues to receive pressure from Democrats and housing advocates to principal reductions on mortgages held by Fannie Mae and Freddie Mac. A study completed by Fannie Mae and Freddie Mac reveals that hundreds of thousands of borrowers with underwater mortgages can receive financial relief and Fannie and Freddie can save money through a principal reduction program.
FHFA’s acting director of FHFA Edward J. DeMarco has resisted efforts by the Obama administration to permit principal reductions for loans owned or insured by Fannie Mae and Freddie Mac. However, the analysis conclusion on the impact of a principal reduction program has the acting director reconsidering his position on the issue.

How to Find a Low Interest Rate Mortgage Loan with Low Fees?

Tue, 10 Apr 2012 00:02:44 GMT

Written By: John B Landers

According to Mortgage Refinance, current mortgage rates for a 30- year fixed rate mortgage averages 4.04%, up from 3.97% from last week. The average for a 15- year fixed-rate mortgage current sits at about 3.25%, versus 3.21% the prior week. Even with recent upticks, mortgage interest rates remain near all-time lows. Americans contemplating refinancing a mortgage or purchasing a home can obtain loans at interest rates levels that are unlikely to drop much below current levels.
Multiple factors influence the mortgage rates consumers receive, such as the movement of bonds in the European financial markets or investors selling off treasuries to buy stocks. The interconnectedness of global financial market causes mortgage rates to vary more than ever.

FHA Tightens Credit Guidelines for Insured Mortgages

Thu, 05 Apr 2012 01:24:37 GMT

Written By: John B Landers

A new rule change by the Federal Housing Agency (FHA) has made it tougher for borrowers to qualify for FHA-insured mortgage. The state of the economy has made FHA mortgages more popular for homebuyers looking to finance home purchases. Borrowers who have more than $1000 in debt disputes will not qualify for an FHA mortgage without proving the resolution of credit issues. The rule change in the FHA underwriting standards will even affect people who have perfect credit scores.
Under the general underwriting criteria, FHA have always allowed FHA-approved mortgage to make a decision within their underwriting departments on whether or not the borrower met qualifications for FHA insured loans. For example, if the borrower disagreed with certain medical or hospital charges, the mortgage lender made a call as to the legitimacy of the disputed account. The FHA lender determined if the matter presented grounds for rejecting the FHA loan mortgage application.

Bank of America to Offer Pilot "Mortgage to Lease" Program to Some Homeowners

Mon, 02 Apr 2012 15:41:53 GMT

Written By: John B Landers

Homeowners, who live in homes that are worth less than the loans they owe, and have a loan owned by the Bank of America, may have the opportunity to get from under the financial burden that has overwhelmed more than 11 million Americans. Bank of America intends to provide a small number of borrowers the chance to have their mortgage debts wiped clean and to stay in their homes as renters.
The bank will only offer the option to fewer than 1000 borrowers in Nevada, Arizona and New York. According to the Bank of America, Legacy Asset Servicing director Ron Sturzenegger, the bank will evaluate the program and determine its acceptance among customers, investors and the community.

11 Million Homeowners Need Principal Reductions

Thu, 29 Mar 2012 19:03:54 GMT

Written By: John B Landers

On the surface, it would seem that principal reduction to help get homeowners out underwater mortgages would make good financial sense for borrowers and banks. The idea being that it is much more profitable to mortgage lenders to modify mortgages by reducing mortgage principals and helping struggling homeowners to avoid a short sale or the foreclosure process.
However, that has not been the case and is something that has been especially puzzling considering the state of the U.S. housing market over the last three or four years.

Common Questions Borrowers Ask About Mortgage Refinance and HARP 2.0

Wed, 28 Mar 2012 13:19:42 GMT

Written By: John B Landers

Many homeowners who are current on their mortgage payment, but have not been able to obtain a mortgage refinance through conventional means. Like nearly 11 million Americans, they have underwater mortgage – owe more on their loans that the value of their homes. The revised edition of the Home Affordable Refinance Program (HARP) will help millions of borrowers refinance into lower interest rate loans.
Homeowners must apply for the program and meet the less stringent underwriting criteria. As the program is set to go into full bloom, many people have questions concerning eligibility. Following are three of the most common questions borrowers have about HARP 2.0.

Mortgage Interest Rates Up - Past 4%

Fri, 23 Mar 2012 16:44:24 GMT

Written By: John B Landers

For several weeks, mortgage rates have hovered near record low. However, the most recent Freddie Mac survey shows that the 30-year fixed rate mortgage has climbed from 3.92% to 4.08%, its highest level since late October 2011. Since the beginning of 2012, the 30-year fixed rate mortgage has gone back and forth within a very narrow range – 3.87% and 3.98%.
In addition, the 15 year fixed rate mortgage climbed to an average of 3.16% in the past week to 3.30%. Mortgage rates follow the yield on the team year Treasury note. An onslaught of good economic news in recent weeks has motivated investors to move out of the safety of long-term U.S. Treasury into equities. This dynamic has pushed the yield on treasury bonds higher.

Home Buying Smarter Then Renting?

Fri, 23 Mar 2012 01:31:16 GMT

Written By: John B Landers

Declining home values coupled with historic low interest rates have not been enough to get able homebuyers off the fence when it comes to buying a home. However, the latest figures regarding the state of the rental market may motivate potential homebuyers who have trouble deciding between renting versus buying.
Of 100 markets surveyed by Trulia, it was more affordable in 98 of the areas for people to own their own homes than to rent. The online real estate firm reports that the convergence of low mortgage interest rates and upward trending rent prices has created an advantage for the average person to own their home.

Taxpayers Gain $25 Billion from Housing Crisis Program

Wed, 21 Mar 2012 00:40:31 GMT

Written By: John B Landers

An initiative, which actually started under the Bush administration, provided unlimited financial support to Fannie Mae and Freddie Mac during critical times of the financial crisis in 2008. Uncle Sam bought billions of dollars worth of mortgage-backed securities (MBS), which provided much needed liquidity in the mortgage market. The infusion of funds restored a bit of confidence in the market.
The MBS program also made the money available for borrowers to obtain home mortgages during the financial crisis. The investment earned a $25 billion windfall for American taxpayers.

Home Mortgage Applications Up 4.4 Percent, Mortgage Refinance Down

Thu, 15 Mar 2012 13:15:07 GMT

Written By: John B Landers

The Mortgage Banker Association (MBA) released the numbers for its weekly survey known as the Market Composite Index. It registered seasonally adjusted 2.4 percent decrease in mortgage-related activities, for the week ending March 9, 2012, from the previous week. This index measures the volume of mortgage applications for both new home mortgage and mortgage refinance. The unadjusted figured shows a 1.8 percent decrease.
Applications for the home mortgages component rose 4.4 percent, on a seasonally adjusted basis, its highest level since January 6, 2012. The unadjusted home mortgage figure came in at 6.0 percent. Transactions for home purchase application represent 24.9% of the total mortgage activity, which increased from 23% the previous week.

Most Underwater Borrowers Not Eligible to Participate in $26 Billion Mortgage Settlement

Wed, 14 Mar 2012 23:51:58 GMT

Written By: John B Landers

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Ally Financial will let out a collective sign a relief on Monday because the Justice Department filed for court approval of the mortgage settlement reached several weeks ago. The agreement, which took more than one year to work out, amounts to $6 billion more than the initial amount of $20 billion floated about by the mortgage settlement early in the negotiations.
Since the announcement of the mortgage settlement, individual homeowners have started to discern what the agreement means for their personal circumstances. Some market players believe the deal does not help enough homeowners to mortgage refinance. Furthermore, the five lenders walk away, after causing serious damage to the housing market and the economy without adequately paying for their actions.

FHA Mortgages Will Cost Home Buyers More in Upfront Fees

Sat, 10 Mar 2012 22:59:45 GMT

Written By: John B Landers

Homebuyers seeking home mortgages from the Federal Housing Agency (FHA) will pay higher fees to help bolster FHA’s diminishing capital reserves. On Monday, the government agency announced it plans to raise upfront fees to replenish its capital base. It also wants to encourage private lenders to make more loans to borrowers in the residential mortgage sector.

BofA to Reduce Mortgage Balances To Market Value - $100,000 or more

Sat, 10 Mar 2012 22:29:43 GMT

Written By: John B Landers

More details about the February 9, $26 billion settlement between the government and five major mortgage servicers have emerged. Bank of America has agreed to reduce the mortgage principle for as many as 200,000 eligible homeowners. When officials announced the settlement last month, they said about one million homeowners would receive an average principal reduction of $20,000 on their mortgages. Many critics of the settlement complain that the average payment would do little to help borrower saddled with outstanding mortgages, which were severely underwater. The new twist in the mortgage settlement helps qualified homeowners by providing a larger principal reduction, which should bring the loans on these homes in line with the current market value of the homes.

Mortgage Rates Dip - Home Prices More Affordable for Median Income Families

Fri, 09 Mar 2012 13:34:01 GMT

Written By: John B Landers

Once again, mortgage rates have declined into the all-time record low territory. The benchmark 30- year fixed-rate for mortgage refinance declined to 3.88%, which is only 0.01 percentage point off the previous record reached in January. The 15-year fixed-rate mortgage is also at its lowest point in six decades, with an average rate of 3.13%. This is just one basis point off the all-time low of 3.14% reached last month.

Help for Homeowners -- Lower FHA Fees and Review

Thu, 08 Mar 2012 02:48:49 GMT

Written By: John B Landers

The White House continued the string of announcements geared to pump life into the housing market and the economy. The Federal Housing Administration (FHA) will reduce the fees it charges homeowners seeking to refinance their mortgages through its streamline program. The program only applies to borrowers who have loans taken out on or before May 31, 2009.
Homeowners must already have an existing FHA mortgage, to qualify for the program. In addition, borrowers must be current on their monthly payments and have a $500 on cash back loans. Borrowers do not have to undergo income verifications nor do they need appraisals. Borrowers were underwater with their mortgage can apply for the program since an appraisal is necessary to establish the property value.

Underwater Mortgages Insured by United Guaranty - Some Loans Not Eligible for HARP

Wed, 07 Mar 2012 01:52:26 GMT

Written By: John B Landers

Some borrowers who planed to refinance their mortgages under the Home Affordable Refinance Program (HARP 2.0) program might not be able to take advantage of the benefits of taking on a low interest rate loan because of a provision contained in their original mortgage documents.
Homeowners with mortgages insured by United Guaranty Corp. might have their mortgage application denied because United Guaranty did not agree to the new streamlined procedures, which required mortgage insures to waive certain clause in the original mortgage paperwork.
Usually, mortgage lenders must repurchase loans with faulty underwriting, or loans in need of additional documentation. If United Guaranty refuses change its position, as many as 15% of borrowers with underwater mortgages, and otherwise eligible to participate in HARP 2.O, may miss the chance to move into low interest rate loans.

Four Million Foreclosed Homeowners Have to July 31 to Request Review

Mon, 05 Mar 2012 15:21:58 GMT

Written By: John B Landers

The $26 billion mortgage settlement agreed to by the five mortgage servicers and government negotiators received massive news coverage from all the major media outlets. However, a resolution reached in April 2011, between federal officials and 14 mortgage servicers did not receive as much publicity.
The Independent Foreclosure Review agreement awards financial compensation to aggrieved homeowners who suffered unfair foreclosures practices. Some people lost their homes; other borrowers still reside in the residences.
Federal regulators, which include the Office of the Comptroller of the Currency (OCC), secured the services of independent auditors to evaluate 4.3 million foreclosure cases and identify abusive foreclosure practices.

Mortgage Rates Rise As Housing Market Recovers

Mon, 27 Feb 2012 14:55:59 GMT

Written By: Gina Ragusa

After nearly a month at a record low, 30-year fixed mortgage rates inched upward as signs of a rebounding housing market dominate the news.
While the rise was slight, the increase is being taken as an indication that the housing market may be on an upward swing. Freddie Mac reports that the 30-year fixed loan rate increased from 3.87% last week to 3.95%. Rates on the 15-year fixed loan only eked upward from 3.16% last week to 3.19% today.
Fueling the positive attitude toward the housing market is a report that the percentage of borrowers who are delinquent in their loans is decreasing and that new home construction is showing signs of life.

Maryland to Receive Nearly $1 Billion of $26 Billion Mortgage Settlement

Mon, 20 Feb 2012 13:26:29 GMT

Written By: John B Landers

Maryland homeowners victimized by the robo-signing scandal, faulty foreclosure documents and other questionable foreclosure practices will receive up to $1 billion in benefits from the recent settlement reached by the government and the five largest mortgage servicers. Undoubtedly, Prince George County residents will receive a significant amount of the $1 billion because one-third of Maryland’s foreclosures emanate from that county.
The billion-dollar windfall represents Maryland's portion of a $26 billion agreement hammered out by state and federal negotiators, after more than a year of talks with Wells Fargo, Bank of America, J.P. Morgan Chase, Citibank and Ally Bank. Forty-nine states have agreed to the terms.

Congress Unlikely to Pass Mortgage Refinance Plan without Heavy Public Pressure

Tue, 14 Feb 2012 22:33:04 GMT

Written By: John B Landers

Calling all homeowners ― if you have a standard mortgage (Fannie Mae or Freddie Mac does not own or insure the loan,) have not missed a mortgage payment in the last six months, or missed one payment in the six months prior, and have a minimum credit score of 580 ― President Obama wants to mortgage refinance your home .
If the administration can somehow find a way to get this last housing proposal through Congress, an estimated 3.5 million homeowners who hold private mortgages become eligible to refinance their current loans, to low interest rates mortgages hovering around 4%. The Federal Housing Administration (FHA) will administer the new program and guarantee the loans.
Beyond the conditions outlined above, underwriting standards will only require lenders to verify borrowers’ employment. In addition, the FHA’s new program proposal eliminates appraisals and the need for borrowers to submit tax returns.

Short Sales Produce Incentives for Homeowners

Mon, 13 Feb 2012 16:42:18 GMT

Written By: Gina Ragusa

In response to rising costs, banks are now offering foreclosure bound homeowners as much as $35,000 cash incentive to go for the short sale instead of continue to struggle directly into foreclosure.
The practice of short selling a home has become more popular in the wake of the mortgage bust only a handful of years ago. Until recently, many strapped homeowners just opted for foreclosure, unable to make mortgage payments or sell their home.
Unfortunately, foreclosure has a negative effect not only on the homeowner, but it can be extremely expensive for the lender, especially with the bounty of foreclosures currently haunting the market.

Mortgage Deal to Help Underwater Homeowners Could Approach $34 billion

Fri, 10 Feb 2012 13:41:21 GMT

Written By: John B Landers

In what has been characterized as a major development, a team of federal and state negotiators announced they had finally reached an agreement with the five major lenders. The $26 billion deal settles some of the issues connected with the housing crisis.
The state and federal negotiators consisted of representatives from the state attorney generals offices, U.S. Department of Housing and Urban Development, and U.S. Department of Justice. The five firms signing the agreement were Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, and Ally Financial

White House Stomps for Congress to Approve Private Mortgage Refinance Plan

Fri, 10 Feb 2012 12:12:51 GMT

Written By: John B Landers

After revealing his plan for the housing industry in mid-week, President Obama followed up on the theme of “helping American homeowners,” in his Saturday radio address. He beckoned the public to get in contact with their lawmakers, and urge them to pass his housing proposal, which could help millions of Americans refinance from high-interest rate loans into low interest rate mortgages.
The plan cost $5 billion to $10 billion and will need. The President proposes to pay for the initiative by assessing a fee on big banks. Homeowners who are behind on their mortgages or in foreclosure will not receive any financial relief from this proposal.

Expect Mortgage Refinance Activities to Continue Pointing Up

Thu, 09 Feb 2012 15:08:25 GMT

Written By: John B Landers

The weekly mortgage refinance applications survey conducted by the Mortgage Bankers Association (MBA), for the week ending February 3, also shows mortgage applications up 7.5% over the previous week. Refinance applications, as a percentage of total applications, increased 80.5% versus 80%, from the previous week, according to MBA.
Super-low home mortgage interest rates and less stringent Home Affordable Refinance Program Requirements (HARP) have undoubtedly kindled more demand in the mortgage refinancing market. According to some reports, Bank of America (BAC) continues to have problems servicing the volume of mortgage refinancing applications it is receiving.

Some States Not Ready to Sign On Foreclosure Deal

Wed, 08 Feb 2012 17:18:17 GMT

Written By: Gina Ragusa

Not all 50 states are keen to the deal aimed at providing mortgage loan relief to approximately one million underwater homeowners. Currently 40 states have signed on to the proposal that could provide up to $20,000 in principal mortgage relief but other states continue to hang back.
The deal is between five of the country’s largest banks and federal and state officials that could produce up to $25 billion in mortgage relief for qualified homeowners if all 50 states come to an agreement. This is the largest amount dedicated to housing relief since the housing bubble burst.

Obama’s Mortgage Refinance Plan for 3.5 Million Private Mortgages

Thu, 02 Feb 2012 21:23:25 GMT

Written By: John B Landers

On Wednesday, President Obama continues to roll out plan to help homeowners refinance their mortgages, from high interest rate loans into low interest rate mortgages. This proposal will allow millions of borrowers, but only those current on their mortgage, to save to an average of $3000 a year by refinancing into FHA-backed loans.
The administration estimates the cost will fall somewhere between $5 billion to $10 billion and will not add to the mammoth debt. Unlike other plans, this one will require the U.S. Congress to approve it. To pay for his plan, the president proposes Congress charge large banks a fee.
Some critics already predict the plan will not make it out of the House.

Will A Two-Pronged Government Effort Resolve The Mortgage Crisis?

Mon, 30 Jan 2012 22:28:36 GMT

Written By: Gina Ragusa

While big bank and regulator negotiations continue, government officials have assembled a comprehensive mortgage meltdown task force.
On Friday, U.S. Attorney General Eric Holder and Department of Housing and Urban Development Secretary Shaun Donovan announced the formation of the "Residential Mortgage-Backed Securities Working Group" aimed at developing new mortgages for those who are still struggling and buying and selling mortgages to distribute the risk.

Massive Mortgage Modification Plan Unveiled

Mon, 30 Jan 2012 20:48:02 GMT

Written By: John B Landers

In a move that runs contrary to the so-called rumors making the rounds several weeks ago, last Friday the White House announced it would make yet more revisions to the Home Affordable Modification Program, otherwise known as HAMP. The latest proposal expands the number of American homeowners, burdened with significant debt loads, able to seek financial relief by obtaining better mortgage terms through mortgage refinance modifications.
In addition, in a turnabout of previous policy, some investors become eligible to have their loans modified. This change applies to homes currently occupied by tenants, or vacant units slated for rental at some point in the future.

Historic Low Housing Sales in December 2011

Mon, 30 Jan 2012 20:31:38 GMT

Written By: John B Landers

After receiving a string of good news regarding housing indicators in the past few weeks, the U.S. Census Bureau and HUD recently released statistics that show new-home sales for the year came in at a paltry 302,000 units for 2011.
The number not only represents a decline of 6.2% below 2010 sales, but the figure represents the lowest number of home sales in any one year since the government began tracking home sales nearly 50 years ago.
Furthermore, for December 2011, single-family home sales dropped 2.2%, to 307,000 units on a yearly basis. This falls below the projection of 321,000 units put out by the market analyst firm Briefing.com. Compared to the annual rate of home sales in December 2010– 329,000 units annually, sales actually declined 6.9%.

Obama's "No More Red Tape" Mortgage Refinance Plan

Wed, 25 Jan 2012 20:02:51 GMT

Written By: Gina Ragusa

During last night’s State of the Union address, President Obama acknowledged continued concern for the housing market by proposing a mortgage refinance plan that would save homeowners $3,000 a year on their mortgage.
The President said that there would be, "No more red tape. No more runaround from the banks." Adding that, "Responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief."
According to the Associated Press, the proposal is a new arm to the recently renovated Home Affordable Refinance Program (HARP 2.0). Instead of only allowing borrowers with government-backed mortgages to refinance, those who financed through private lenders would also qualify.

Negotiators and Mortgage Servicers Close to Settlement

Tue, 24 Jan 2012 20:58:14 GMT

Written By: John B Landers

The Attorney Generals (AGs) will evaluate two possible scenarios for a final settlement. The first deal depends on California agreeing to the settlement. The loan servicers will pay up to $25 billion, to be used for underwater mortgage refinance and loan modification according to sources familiar with the negotiations.
The second option kicks in if California rejects the banks’ settlement offer—the settlement amount falls to $19 billion.
California Atty. Gen. Kamala Harris has been a thorn in the side of lenders because she believes negotiators have not been hard enough on the banks. Since California ranks in the top four states (Nevada, Florida and Arizona) incurring foreclosure activities, it works to the lenders’ advantage to bring the AG in on any agreement, which would limit their future legal and financial liability.

Government and Banks Play "Let’s Make a Mortgage Deal"

Tue, 24 Jan 2012 20:38:20 GMT

Written By: Gina Ragusa

Regulators and government officials continue to slug it out with the big banks, trying to come to a resolution surrounding improper mortgage procedures that occurred last summer.
An astounding eight million U.S. homeowners have faced foreclosure since the market went bust and some lenders, in their haste to process foreclosures failed to verify information on the documents and even practiced “robo signing” where unauthorized employees signed documents.

CoreLogic: 2012 Could Be “The Year of the Housing Turnaound”

Thu, 19 Jan 2012 22:30:20 GMT

Written By: Gina Ragusa

CoreLogic’s MarketPulse report released on January 18, indicated that 2012 could be the year the housing market finally starts to rebound. Some factors influencing predictions include improved unemployment figures, low mortgage rates and the rash of affordable homes.
Signs of life are everywhere. The Mortgage Bankers Association say that loan applications rose 23% last week and mortgage refinance activity swelled to 26.4% the week ending January 13.
The MBA says that this is the highest level since early August, as applications for new mortgages increased by 10.3% week over week.

Mortgage Refinancing for an Ailing Economy

Wed, 18 Jan 2012 21:42:27 GMT

Written By: John B Landers

The idea of a massive mortgage refinance plan to stimulate the American economy seems to have grown legs in recent days. The concept calls for the federal government to use its power over the Government-Sponsored Enterprises― Fannie Mae and Freddie Mac, to create economic conditions for large-scale mortgage refinancing. This plan helps borrowers who do not have sufficient equity in their homes to refinance their mortgages under conventional requirements.
This in turn would stimulate “aggregate demand,” or the ability of consumers to spend the money they save, by refinancing to low interest rate mortgages, on other goods and services.

Transforming Foreclosures to Rentals

Thu, 12 Jan 2012 12:31:17 GMT

Written By: Gina Ragusa

The government’s plan to reduce the number of abandoned, foreclosed homes in neighborhoods across the country may provide positive gains for the housing market.
In an effort to get the housing market back on track the Federal Housing Finance Agency, the Treasury Department and the U.S. Department of Housing and Urban Development are behind a strategy to sell government-owned (Fannie Mae and/or Freddie Mac backed properties) foreclosures in bulk to investors with the goal of transforming the properties into rentals.

Foreclosures Down at Three Year Low

Thu, 12 Jan 2012 12:21:56 GMT

Written By: John B Landers

According to RealtyTrac, foreclosure activities fell significantly in 2011, with 1.89 million foreclosure filings ― a 34 percent drop over 2010. Many market analysts and economists quickly jumped on the news as a sign that the housing market may have finally touched bottom, and despite other issues with the economy, the market finally has the foundation needed for some semblance of sustained recovery.
However, the chief economist of Moody’s Analytics cautioned against too much premature celebration. Zandi states that the system continues to have a sizable number of foreclosures to resolve. With millions of Americans still suffering from the average 34 percent dropped in home values combined with income and jobs concerns, they could eventually lose their homes.

Massive Mortgage Refinance Rumor

Tue, 10 Jan 2012 19:52:48 GMT

Written By: John B Landers

On Thursday, Bank of America (BAC) stock rose 8.6 percent. Market insiders attributed part of the stock’s rally to the unfounded rumor that the Obama administration was working on a scheme to fund a huge mortgage refinance initiative beyond HARP 2.0. costing as much as a $1 trillion dollars according to some estimates.
Citibank, JP Morgan and other bank stocks came in line with the broader industry index, which rose 2.2 percent. BAC’s market advance may point more to the effect investors believe a massive mortgage-refinancing program would have on the bank’s significant exposure to bad mortgages.

2012: The Year of the Mortgage

Thu, 05 Jan 2012 21:50:44 GMT

Written By: Gina Ragusa

Why 2012 is the year to finally buy a home or refinance your loan.
If your New Year’s Eve fortune cookie advised you to enter (or re-enter) the real estate market, it may be time to listen. Although rates have held tightly at historically low levels, impossible lending criteria and appraisals have made it difficult for the average consumer to obtain a mortgage.
However, with the dawn of a new year a light is being shed on the real estate and mortgage market that gives, “striking while the iron is hot” new meaning. Finally, consumers are seeing more opportunity to refinance or purchase a home today versus what they experienced over the past few years. Why?