|
|
-
- MortgageRefinance.com
10/2/2013 12:58:02 AM
At the beginning of the year, lenders begin lowering the underwriting standards for prime mortgages. These loans are made to borrowers with AAA credit. The loans have the least chance of default and carry the lowest interest rates. The Federal Reserve released data that shows the move by lenders spurred demand for prime loans by eligible borrowers.
It’s only in the last few months that lenders have begun to relax the draconian lending criteria put in place after the housing market crisis for borrowers with blemished credit profiles have found it easier to qualify for loans, according to the mortgage origination software firm Ellie Mae. Read more
-
- MortgageRefinance.com
5/7/2013 1:39:19 AM
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. Read more
-
- MortgageRefinance.com
4/20/2013 12:45:34 PM
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. Read more
-
- MortgageRefinance.com
4/3/2013 10:41:16 PM
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. Read more
-
- MortgageRefinance.com
2/4/2013 12:40:09 AM
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. Read more
-
- MortgageRefinance.com
11/15/2012 2:24:49 PM
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. Read more
-
- MortgageRefinance.com
10/10/2012 11:48:36 AM
On Tuesday, the federal government filed a lawsuit against the nation’s largest mortgage lender Wells Fargo. The legal action accuses the bank of engaging in the systematic practice of “reckless underwriting” and knowingly running a fraud-infested mortgage operation.
According to the claim, Wells Fargo engaged in these practices for nearly ten years. Over this timeframe, the bank submitted approximately 100,000 mortgages insured by the Federal Housing Administration (FHA). The suit says the lender knew that many of these mortgages had significant underwriting issues. Read more
-
- MortgageRefinance.com
7/12/2012 1:40:08 AM
The quarterly report issued by the Office of the Comptroller of the Currency (OCC) shows the mortgage market finally stabilizing after a prolong slide nearly five years ago. Private mortgage lenders have 39% fewer homeowners delinquent with their mortgage payments. Furthermore, the rate of foreclosures has dropped by 10%.
On the federal side of the ledger, the delinquency rate of government- insured loans, mostly guaranteed by the Federal Housing Agency (FHA), increased 27% for the year ending March 31, 2012. The number of government foreclosures climbed 17%. However, Fannie Mae and Freddie Mac recorded a 15% percent decline in delinquencies and 6% dropped in the foreclosure rate. Read more
-
- MortgageRefinance.com
4/13/2012 2:28:30 AM
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. Read more
-
- MortgageRefinance.com
4/5/2012 1:24:37 AM
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. Read more
-
- MortgageRefinance.com
3/10/2012 10:59:45 PM
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. Read more
-
- MortgageRefinance.com
3/8/2012 2:48:49 AM
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. Read more
-
- MortgageRefinance.com
12/16/2011 2:28:51 PM
Hearing the term “underwater mortgage” has become commonplace ever since the market crash in 2007 - 2008. Millions of homeowners found themselves stuck in a home they couldn’t afford, making payments that extended beyond their income level and in a home that was rapidly depreciating. Approximately 11 Americans owe more on their home than what it is worth today and in many cases, when they purchased their inflated-priced homes at the height of the market; they paid a considerably higher mortgage loan rate.
Here are 3 Mortgage Refinance Options for Underwater Borrowers: Read more
-
- MortgageRefinance.com
7/12/2011 8:52:46 PM
When the government created Fannie Mae and Freddie Mac, the intent behind these government-sponsored enterprises (GSE) was to make home ownership a possibility for more Americans. Fannie Mae states on its website the objective to “serve the need for liquidity, stability and affordability in the U.S. mortgage refinance market. Despite it critics and some bookkeeping issues, the GSEs did a decent job of helping to turn the real estate industry into one of the most robust sectors of the economy. Read more
-
- MortgageRefinance.com
5/18/2011 3:05:07 PM
Making Home Affordable programs offer comprehensive options to homeowners struggling to make current mortgage payments. The refinance plans were created to make refinancing much easier according the new circumstances in the field and provide relief to struggling homeowners. Read more
|
|