mortgage industry news: Alphonso Jackson (HUD Secretary) Will Be Announcing His Resignation Tomorrow! - 03/31/08 12:09 AM
Though specifics haven't been released, the rumors seem to be confirmed. I'm sure you'll hear more as the day progresses tomorrow.
The Wall Street Journal says:
"The news is a setback for the Bush administration and its efforts to combat the housing and mortgage mess. HUD, usually out of the spotlight, has been at the heart of the administration's attempts to ease problems for homeowners. Although Treasury Secretary Henry Paulson has taken the lead on many initiatives, Mr. Jackson has been a partner on many, including programs such as Hope Now, an administration-backed industry plan to loosen the terms on hundreds of thousands … (8 comments)
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mortgage industry news: More on the J.P. Morgan/Bear Stearns Deal - 03/24/08 04:35 PM
The financing terms for the purchase will look like this:
$29 Billion @ 2.5%
10-Year Adjustable Rate
Sweet deal huh? I'd certainly say so!
READ ON
[Source: CNBC]
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mortgage industry news: Soulda, Coulda, Woulda - 01/26/08 03:15 AM
Do you ever stop and think it's just one of those days...I shoulda put gas in the car last night. Now it's early, there's traffic, and I'm gonna be late to work. Uuggghh!!!I shoulda bought milk and creamer from the grocery store, now I'm drinking my coffee black! Eew.. blagh...
If you've been reading the Daily Mortgage Updates over on The Industry Report, you know that rates dipped to a low of 4.875 - 5% on a conforming 30-year fixed rate mortgage early Wednesday morning!
But the low was short-lived! It was a literally a (4) four to (5) five … (3 comments)
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mortgage industry news: These are the facts! - 01/22/08 07:25 PM
Mortgage rates are low!
Now typically, I'm not one to sell the whole:
"Now is the perfect time!"
"Rates are at historical lows!"
But...
Ladies and gentlemen of the jury, these are the facts, READ: Mortgage Rate Update: January 22, 2008 + Emergency Fed Funds Rate Cut
… (2 comments)
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mortgage industry news: Bank of America IS Buying Out Countrywide: rumors quenched all in a days notice! - 01/11/08 10:53 AM
Now it's official! Bank of America who had previously invested $2 Billion in the struggling mortgage lender has now "officially" announced that they will be acquiring Countrywide for a total $4 Billion dollars!From MarketWatch, Mozillo is quoted for saying:
"We believe this is the right decision for our shareholders, customers and employees." -- Mozillo, Chairman and Chief Executive
Though the acquisition/purchase isn't expected to close until the 3rd quarter and though the Countrywide name is expected to stay (this according to a Countrywide employee) the move effectively launches Bank of America into the number (1) one position in mortgage lending! … (7 comments)
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mortgage industry news: The End for Countrywide? - 01/10/08 05:13 PM
And guess who's buying if at all?
BANK OF AMERICA!
That's right! Bank of America has the "Right of First Refusal" (ROFR) in acquiring Countrywide. In this case, Right of First Refusal means that Countrywide is giving Bank of America the first option on entering into a business transaction with them before any other third party becomes involved. With rumors of advanced talks/negotiations taking place, does this finally mark the end of Countrywide? We'll have to wait and see. But note that Bank of America had already purchased $2 Billion Preferred shares back in August of 2007!From MarketWatch: (Quote)
Countrywide shares traded at … (11 comments)
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mortgage industry news: Weak Jobs Report Means Better Interest Rates: Here's why in a quick explanation... - 01/04/08 06:16 PM
From Bloomberg.com:
Hiring in the U.S. slowed more than forecast in December and unemployment jumped to a two-year high, raising the odds that the Federal Reserve will cut interest rates by half a point this month to ward off a recession.
The jobless rate increased to 5 percent from 4.7 percent in November. -- Quoted from Bloomberg
Further commentary from Barney Frank, Chairman of the House Committee on Financial Services:
"Today's employment numbers unfortunately confirm that the weakness in the economy is getting worse. These numbers are deeply troubling in themselves because it means more men and women are unemployed in … (0 comments)
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mortgage industry news: A New Nationwide Mortgage Licensing System - 01/02/08 10:28 PM
The Mortgage Banker's Association announced the new Nationwide Mortgage Licensing System today; the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) are the owners of the new venture. The intended aim?
The NMLS will bring greater uniformity and transparency to the mortgage industry while maintaining and strengthening the ability of state regulators to monitor the industry and protect their citizens. -- (Quoted from www.stateregulatoryregistry.org)
States that are currently participating in the new venture...
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mortgage industry news: FHA Modernization Bill (S. 2338) Passes the Senate - 12/15/07 08:06 PM
The House Committee on Financial Services issued a Press Release yesterday, December 14, 2007 on the passage of the new FHA Modernization Bill (S. 2338) in the Senate. From the Press Release:
“I welcome the Senate’s passage of their FHA legislation. We are in agreement that this is an important action in dealing with our subprime challenges, and that we should act quickly so that the FHA can be a resource for people who can refinance their loans." Rep. Barney Frank, chairman of the House Committee on Financial Services
Some of the features of the proposed legislation include...
READ ON
™
Mortgage Advisor
Direct: 323.810.2175 … (4 comments)
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mortgage industry news: Foreclosures Double...Late Payments Are Up...the Latest on Countrywide!!! - 12/13/07 10:29 PM
Countrywide's (the nation's biggest U.S. mortgage lender) production for the month of November 2007 totaled $23 billion in total mortgage loan fundings; that's a drop in production of 40% since November 2006!
From Bloomberg.com:
"Countrywide Financial Corp., the biggest U.S. mortgage lender, said foreclosures doubled in November and late payments continued to rise amid the U.S. housing slump..."
This trend isn't too uncommon in light of the vast changes our market has seen. Though programs like the recent Rate Freeze plan are meant to ease these occurrences, it seems that our foreclosure numbers have more to do with a lack of income … (4 comments)
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mortgage industry news: Another Fed Funds & Discount Rate Cut - December 11, 2007 - 12/11/07 04:39 PM
In much anticipation, the Federal Open Market Committee met today to discuss monetary policy and the outcome was yet another Fed Funds Rate cut; 25 basis points (.25%) down to 4.25%.
From the Press Release:
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time.
Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, … (1 comments)
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mortgage industry news: Wamu Cuts A Few Thousand Jobs - 12/11/07 08:37 AM
Washington Mutual "is the latest lender to get out of the subprime mortgage business" and rightly so! With the market being the way it is, frankly they can't afford to hold such a portfolio. The unfortunate news for us and for employees is Job Cuts and tighter lending standards!
From MarketWatch:
Shares of WaMu fell 7% to $18.49 in pre-open trade.
"We believe the fundamental news at WaMu is significantly worse than the company and we had previously expected," Bear Stearns analysts said on Monday evening. The moves by one of the nation's biggest mortgage lenders indicate that shockwaves triggered by the … (1 comments)
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mortgage industry news: Weekly Mortgage Update ~ Dec. 10, 2007 - 12/10/07 07:17 AM
Let's Recap: The 30 Year Fixed Mortgage averaged 5.96%, down from 6.10% just last week.
The 15 Year Fixed Mortgage averaged 5.65%, down from 5.73% just last week.
The 1 Year Adjustable Rate Mortgage averaged 5.46%, up from 5.43% just last week.
The Week Ahead: The biggest news on the Economic Calendar this week is the FOMC meeting on Tuesday. We've already seen rates hedge downward in anticipation of a rate cut which is expected to be between .25 - .50%. If you can secure a rate below 6%, I'd lock at application right away. If a rate cut … (5 comments)
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mortgage industry news: Loan-to-Value Cuts...Limited Coverage...and Increased Prices - 12/08/07 10:22 PM
That's right! We have some loan-to-value reductions, limited coverage with respect to Mortgage Insurance and some increased prices to go along with it all.
MGIC Investment Corp. is the nation's largest mortgage insurer. On Friday, they announced plans of raising prices and limiting their coverage ratios to those borrowers with: (1) bad credit, (2) those termed higher-risk loans.
"Where there's multiple risk layering going on is where most of these restrictions are coming in..." Zimmerman
The maximum loan-to-value will be capped at 95% for areas like California and Florida (those deemed declining markets). This is applicable to loan programs like HOME POSSIBLE and … (8 comments)
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mortgage industry news: ARM Freeze Proposal Is In... - 12/07/07 07:23 AM
President Bush & Secretary of the Treasury Hank Paulson announced our government's plan to Freeze ARM Interest Rates yesterday afternoon. You can read the proposal here. Though many call it a Subprime "bail-out" plan, President Bush said that it is everything but for investors.
It is estimated that approximately 1.8 million Subprime mortgages are due to reset (which means higher rates) by 2008 & 2009. Ensuing foreclosures at which point appear inevitable.
Well, the premise of the new plan is to aid an estimated 1.2 million homeowners in avoiding foreclosure (this according to Paulson).
From the article on MarketWatch: … (8 comments)
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mortgage industry news: Credit Crisis: A Video - 12/06/07 09:48 PM
This has got to be the most sophisticated explanation of our subprime mess and the ensuing credit crisis...and I say this with a hint of sarcasm!
Watch...laugh or cry (whatever your pleasure)...and enjoy!
… (4 comments)
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mortgage industry news: Wells Fargo Writes Down Losses from their Prime Portfolio...and you thought this problem was only subprime... - 11/30/07 05:58 PM
From the San Francisco Chronicle: "On Tuesday, Wells Fargo said it will set aside $1.4 billion for home-equity loans it expects to go bad in 2008 and 2009. What it didn't say in its news release was that these are not loans to borrowers with subprime credit scores.
'This was a prime portfolio,' Wells Fargo spokesman Chris Hammond says.
The average FICO credit score for all Wells Fargo home-equity loans is 750, well into prime territory.
The midpoint of all credit scores in America is 723. Only 40 percent of credit scores are 750 or higher. Subprime starts in the mid-600s … (1 comments)
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mortgage industry news: Extra, Extra..Read All About It... Mortgage Rates Are Down! - 11/30/07 04:00 PM
.
"Extra..Extra...Read all about it!!!"
Big news in the mortgage market yesterday and today...the 30-Year Fixed Rate Mortgage is pricing below 6%! That's the lowest level we've seen since October 2005; that's (2) two full years ago!
It seems rates are all ready hedging downward in anticipation of yet another Rate Cut by the Fed come December 1th's FOMC Meeting. Here are some of Bernanke's comments per the Charlotte Business Journal:
"At the Fed panel's Dec. 11 meeting, the committee will 'have to judge whether the outlook for the economy or the balance of risks have shifted materially,' Bernanke … (0 comments)
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mortgage industry news: Citigroup Shares Down As A Result of Recent Layoffs - 11/26/07 06:35 PM
It seems this has been the trend in recent months; at least since August...
Under-performing portfolio = fewer earnings = job cuts
From MarketWatch:
"Citigroup shares fell under $30 for the first time in five years at one point on Monday after CNBC reported the firm could lay off up to 45,000 staffers.CitiGroup Inc. closed down 3.2% at $30.70 after touching a low of $29.75 earlier on Monday.The expected layoffs are the result of several billion dollars of mortgage losses at Citigroup. The bank said Monday that it's in a planning process to become more efficient and … (4 comments)
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mortgage industry news: The Mortgage Reform & Anti-Predatory Lending Act Passed the House Yesterday...what happens next? - 11/16/07 06:48 PM
Well, the bill passed the House of Representatives yesterday and it's definitely big news for the origination business. Here's what happened:
The House voted 291-127 to approve HR3915 - This ultimately brings forth new rules for lending standards, predatory lending AND nationwide mortgage broker licensing. Just to note, Democrats voted 227 Yeas and 0 Nays while Repulicans voted 64 Yeas and 127 Nays.
Now just hang tight, in order for the Bill to affect our industry, it will have to become Law first and that process is going to take some time. First...
READ ON
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