illinois mortgage lender advisor adviser greg zaccagni: Mortgage Application Surge as 30 Year Hits Record low Rates!
- 03/26/09 11:46 AM
News of the Fed's pledge to buy up more mortgage-backed securities and treasuries, sent mortgage rates sharply lower. Home loans apps jumped 32.2 percent on a seasonally adjusted basis compared to one week earlier, 31.4 percent unadjusted, and were up 18 percent compared to the same week a year ago. It was all about the refinances, which increased 41.5 percent from the week prior, though purchase activity and FHA lending saw mild gains as well. The refinance share of mortgage activity increased to 78.5 percent of total applications, up from 72.9 percent a week earlier as rates plummeted. The 30-year fixed-rate mortgage … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: The Mortgage "Blame Game"
- 03/13/09 08:24 AM
JP Morgan Chase CEO Jamie Dimon is hearing it from the National Association of Mortgage Brokers after making an ill-advised comment at the U.S. Chamber of Commerce's 3rd Annual Capital Markets Summit yesterday. "My biggest mistake, probably of my whole career, was not closing down our mortgage broker business sooner," Dimon said, while citing loss rates two to three times higher on broker-originated loans versus those originated by retail employees. NAMB president Marc Savitt responded in kind, saying, "It is disappointing to once again refute senseless attacks on the mortgage brokerage industry based on misinformation. Mr. Dimon's comments clearly reflect his … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: Bad Economy GOOD for Mortgage Rates!
- 03/12/09 12:33 PM
Mortgage rates dropped "thanks" to a weak jobs report, mortgage financier Freddie Mac reported today. The 30-year fixed averaged 5.03 percent during the week ending March 12, down from 5.15 percent last week and 6.13 percent a year ago. That's very close to January's all time recorded low of 4.96 percent. Rates have drifted up and down only by about one-quarter of a percent in the first months of this year. The 15-year averaged 4.64 percent, down from 4.72 percent a week earlier and 5.60 percent this time last year. A weaker jobs market may slow consumer spending and keep inflation at bay," said … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: New Home Affordable Questions & Answers
- 03/06/09 01:46 AM
Who is eligible? To apply for a Home Affordable Modification, you must: Own and currently occupy a one- to four-unit home. Have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties). Have a loan that was originated before January 1, 2009. Have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax) monthly income. And, have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses. If you answered YES to all of these questions, … (1 comments)
illinois mortgage lender advisor adviser greg zaccagni: What Are Seller Concession Offers?
- 02/26/09 10:05 AM
Seller's Concessions/Buyers Assist is where the seller agrees to pay part or all of the buyers closing costs. The seller must agree to the seller assist and it must be stated in the sales contract. Most banks allow 3% seller concessions. Some lenders will limit the seller concession based on the amount financed. If you are taking a loan for more than 90% then the lender may only allow a 3% max seller concession. Under 90% they may allow 6%. The seller assist is not a part of the loan and cannot be financed. The seller is lowering their gain from the sale … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: Home Builders Lobby for 2.9% Mortgage Rates for New Home Buyers
- 12/19/08 09:27 AM
The chief executive of the National Association of Home Builders NAHB wants a government program launched to lower interest rates on home loans to 2.9 percent, along with an expanded homebuyer tax credit. Their proposed program would only be available to new homebuyers, and not those currently struggling to keep up with their monthly payments. NAHB boss Jerry Howard believes the glut of unsold housing inventory could be off the market in six to 12 months. He believes predicted 4.5 percent mortgage rates aren't enough to really stimulate housing, as evidenced by recent builder promotions that have done little to stem flagging … (1 comments)
illinois mortgage lender advisor adviser greg zaccagni: Huge Declines in Subprime Mortgage Lending Volume!
- 12/09/08 02:15 PM
Subprime lending volume was relatively modest in 1995 and 2000, but surged in 2005 and 2006, before easing in 2007 and completely dropping off this year. It's forecasted that 2008 subprime originations will total just $10 billion, making up a mere 0.58 percent of the estimated $1.7 trillion in total residential lending volume. www.MortgageAdvisor.info & www.GregZaccagni.com
… (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: My Solution for the US Auto Manufacturers
- 11/21/08 10:48 PM
I don't totally blame our US manufactures for their present situation. Americans like their big cars & trucks and they were happy to accomodate. If we were gurateed that gas prices would stay down to their present level of UNDER $2.00 per gallon american consumers would be buying big vehicles all over again. I was encouraged when GM came out with big SUV hybrids (tahoe, yucon, escalde etc.) with gas mileage similar to economy cars in 2008. One was even named "green car of the year."The solution seems obvious. In exchange for the US tax payers bailing out these companies, why not demand US … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: What are Mortgage Derrivatives
- 11/19/08 10:34 PM
Mortgage backed securities are formed by dividing the cash flows from a pool of mortgages into obligations with payment characteristics substantially different from the underlying mortgages. Mortgage derivatives are created by combining Collaterlized Mortgage Obligations (CMO) with different characteristics & maturity classes; Interest-only (io), receiving only interest payments; Principal-only (PO), a security receiving only loan principal payments Mortgage residual which are the excess cash flow after debt service payments. Derivative securities often are used as hedging devices to immunize a loan portfolio against interest rate risk but also make it more difficult to predict their performance due to the inconsistent characterstics of the mortgages … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: What is a Credit Default Swap (CDS)?
- 11/12/08 10:25 PM
They were the key reason for the demise of AIG and a large part of the reason for our current mortgage mess. If you buy a bond from General Motors or mortgage bonds, you are lending them money for a set interest rate for a specified length of time. You face two risks. 1. They go bankrupt and don't pay you back. 2. That interest rates rise and the bond falls in value (think of bond prices and interest rates as being on opposite sides of a see-saw). Investors in bonds often choose to take out a "type" of insurance aganst … (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: New FHA Loan Limits By County
- 11/11/08 11:02 PM
FHA has issues Mortgagee Letter 08-36 which covers the New Loan Limits for 2009. The new loan limits for Illinois will be: FHA requires properties to be owner ocupied "OO" and has changed the maximum LTV to 96.5% (3.5% downpayment) for purchases effective with all case number issued January 1, 2009 forward. Ask me for a copy of mortgagee letter 2008-23 for details. For more information about FHA insured loans visit the FHA & VA page of my website today! www.GregZaccagni.com & www.MortgageAdvisor.info
… (0 comments)
illinois mortgage lender advisor adviser greg zaccagni: Feds use their New Financial Interest in Fannie & Freddie to accelerate mortgage help for homeowners
- 11/11/08 12:49 PM
The new mortgage assistance plan was announced by the Federal Housing Finance Agency, which seized control of Fannie and Freddie in September 2008. Officials say they hope the new approach, which takes effect Dec. 15, will become a model for loan servicing companies that collect mortgage payments and distribute them to investors. These companies have been roundly criticized for being slow to respond to a surge in defaults. To qualify, borrowers would have to be at least three months behind on their home loans and would have to owe 90 percent or more than the home is worth. Investors who do … (2 comments)
illinois mortgage lender advisor adviser greg zaccagni: Ditech's Demise?
- 11/08/08 07:31 AM
Ditech is owned by GMAC's holding company, Residential Capital (ResCap). Recently GMAC financial services posted a 2.5 billion net loss, up from $1.6 billion 1 year earlier. $1.9 billion was attributable to ResCap. Over the past few months, ResCap has halted wholesale loan production via its Homecomings Financial lending channel, closed all its GMAC Mortgage retail offices, and stopped virtually all production outside the United States. GMAC has forgiven nearly $200 million in mortgage debt to keep the unit compliant with its net worth requirements. "Adverse market conditions have made it difficult for ResCap to maintain adequate capital and liquidity levels," … (2 comments)
illinois mortgage lender advisor adviser greg zaccagni: Government Says Home Builders Cannot Require you use their lender to receive incentives
- 10/25/08 01:58 PM
Federal Real Estate Settlement (RESPA) rules require that incentives not be built into the cost of the homes they build. According to the Federal Trade Comissions website (www.ftc.gov) "tie in sales" may violate federal anti-trust laws because they harm competition. Tie in sales are defined as the sale of one product on the condition the consumer purchase a 2nd product which the consumer may not want or could buy elswhere at a lower price. When a builder links an upgrade or closing cost rebate to the required use of an affiliated lender that can be considered a tie in. When the tie … (15 comments)
illinois mortgage lender advisor adviser greg zaccagni: Wauchovia Posts 23.9 BILLION 3rd QUARTER Loss!
- 10/22/08 08:29 AM
Wauchovia was offering pick a pay loan programs as recently as June 08 making one wounder why? 66 percent of borrowers with these loans have at least some deferred interest balance. Their current average loan-to-value is 95 percent, up from 71 percent upon origination. That means their equity is now averaging 5% of the properties estimated home value! More Information Related Articles: Payment Option Below Market Mortgage Rates Explained Illinois Attorney General Sues Countrywide for alleged deceptive loan practices Bank United asks for help to implement their Mortgage Assistance (MAP) Plan Loan Modification Explained … (0 comments)
News of the Fed's pledge to buy up more mortgage-backed securities and treasuries, sent mortgage rates sharply lower.;)
;)
