mortgage lenders: Buying a Home? Mortgage Advice from Steve Cook
- 02/24/12 11:52 AM
Do your clients need an incentive to start moving on buying a home? 2012 may be your year, as 30-year fixed rate mortgages are at an all-time low.
However, mortgages are becoming more difficult to get approval for, which may result in your real estate deals falling through. Today’s Equifax Finance Blog post by real estate expert Steve Cook details his interviews with Margaret Kelly and the CEO of Total Mortgage Service Adam Walsh on the latest real estate and mortgage news.
“The Federal Reserve promising to keep short-term interest rates at zero for the next three years,” says Cook. However, … (12 comments)
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mortgage lenders: The New Rules of Real Estate
- 06/09/11 11:02 AM
While current market conditions most certainly present challenges to potential home buyers, I still believe there has never been a better time to buy a home. This week on CBS MoneyWatch I blogged about the 5 New Rules of Real Estate. Understanding these changes in the real estate market is essential to successfully navigating the changing real estate world.
Some of the biggest changes include:
No more big housing price jumps. If you want to buy a house, you have to have enough income to support the mortgage. Lenders will not approve you without a really good credit score. They only … (3 comments)
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mortgage lenders: What Does the OCC's Plan for 8 Major Banks Really Mean?
- 04/29/11 08:59 AM
The Office of the Comptroller of the Currency announced this month that it has created a mandatory course of enforcement action against eight major mortgage service providers like JPMorgan Chase, Citibank, and Wells Fargo. Unlike the loan modification programs, the banks can't choose to sit this one out. But what are the banks really required to do? On today's Equifax personal finance blog, I break down what the OCC's plan means for the big banks, consumers, and the real estate market. Basically, the plan requires improvement in these problem areas: Better communication with borrowers Prevention against dual tracking Oversight and control of third-party vendors … (3 comments)
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mortgage lenders: BREAKING NEWS Obama Administration Calls For Housing Overhaul, Winding Down of Fannie Mae and Freddie Mac
- 02/11/11 03:35 AM
It’s no secret the role of government-controlled mortgage finance companies Fannie Mae and Freddie Mac has grown out of control.
The fate of the mortgage giants has been discussed for a while now, but today action has been proposed.
Treasury Secretary Timothy Geithner announced his recommendation for the future of Fannie Mae and Freddie Mac, and it involves a lot less involvement for the government-controlled mortgage finance companies.
The Obama administration supports this proposal to “wind down" the market share currently held by the government mortgage buyers, but says we should continue to count on Fannie and Freddie as a … (3 comments)
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mortgage lenders: How To Think About Debt When Buying A Home
- 11/12/10 12:48 AM
Michelle sent me the following question:
I am currently reading your book 100 Questions Every First-Time Home Buyer Should Ask because my husband and I are hopefully buying a home within the next year. It is a very helpful book! There is something I never understand, and I thought, who better than you to ask?
Why is it that worksheets/calculators online always ask for my GROSS income? What I actually net is about a third of my gross, between contributions to my retirement, taxes, and other deductions. Shouldn’t I be using my net to do calculations? Thanks!
Here's how I responded: … (3 comments)
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mortgage lenders: Strategic Default: The Consequences Of Not Paying Your Mortgage
- 11/05/10 02:42 AM
When companies take on more debt than they can afford, they typically walk away from some of it to better balance income and expenses. Walking away from certain debts in order to shore up your balance sheet is called “strategic default.”
Here’s an example: The Mortgage Bankers Association built a beautiful new headquarters in Washington, D.C., several years ago, and then found it couldn’t afford its mortgage. So the nonprofit association turned the keys over to the lender and walked away from the property. Strategic defaults happen in corporate America all the time. And it’s considered a perfectly legitimate way of … (2 comments)
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mortgage lenders: Why Mortgage Lenders Pull Your Credit Score Twice
- 08/27/10 04:15 AM
In today's new world of mortgage finance, lenders are tightening credit requirements. It's far more difficult to get a mortgage today than it was five years ago. Even borrowers who have near-perfect credit histories with credit scores in the 800 range are being rejected for reasons that seemingly make no sense-like a small investment loss taken on a tax return, or an extra $500 deposited into a savings account that couldn't be adequately explained.
Things that you might not think of as being a big deal could hurt your credit score and mortgage lenders are on the lookout for changes to … (0 comments)
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mortgage lenders: Sexual Discrimination By Mortgage Lenders
- 08/03/10 03:57 AM
Are mortgage lenders defying federal fair housing laws by denying home loans to pregnant women, new moms and their partners or spouses?
In a recent story, the New York Times wrote about how mortgage lenders had tightened loan requirements so much that new mothers who were at home on short-term disability were denied a loan because their disability income was less than their full-time income.
The story was astonishing, as federal law prohibits sex discrimination. The action also seemed to run afoul of fair housing laws.
The Department of Housing and Urban Development (HUD) took note and on July 21, … (2 comments)
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mortgage lenders: Mortgage Lender Requirements Result in Closing Problems And A Dry Closing
- 04/26/10 04:24 AM
Mortgage lender requirements are confusing brokers, buyers, and even the lenders who are giving the loans. The new world of mortgage financing requires very strict qualifications for the buyers, and brokers and lenders are having trouble keeping track of the rules.
It's very hard to get mortgage financing right now, and some mortgage financing deals are falling through at the last minute because the lenders and brokers don't know what will make the buyer fail to fulfill the mortgage lender requirements. The result of these loan requirements is closing problems and a dry closing.
Read more about this confusion at ThinkGlink.com
… (0 comments)
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mortgage lenders: Taylor Bean And Whitaker and 1098 Mortgage Interest Tax Forms
- 02/10/10 09:36 AM
Former Taylor Bean and Whitaker borrowers are continuing to have problems with their former TBW loans. Now these borrowers can't seem to get their 1098 mortgage interest tax forms. The forms should have been sent out by TBW by the end of January, but many cusotmers haven't received them.
If you did not get one and you have an online account with them, you might want to see if you can log into the account and download the form. Taylor Bean ceased operating last summer and many of its loans were transferred to other loan servicers. If your loan was transferred, … (2 comments)
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mortgage lenders: Taylor Bean And Whitaker: Continuing Mortgage Lender Problems And Escrows
- 02/09/10 09:22 AM
Taylor, Bean and Whitaker was shut down in August. Months later, customer complaints are still rampant. The new loan servicing companies won't honor the amounts these borrowers paid TBW in their escrow accounts. You would think that escrow accounts (money held by a lender in trust on behalf of their borrowers) for the payment of real estate taxes and insurance premiums would be safe. The accounts, though, are frozen.
You'd think that the federal government would have a law on the books that forces lenders to keep those accounts safe and segregated and readily available to transfer from one lender to … (0 comments)
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mortgage lenders: 67 Mortgage Lenders Failed To Meet Criteria For FHA Recertification
- 02/09/10 09:05 AM
Taylor, Bean and Whitaker Mortgage Companies of Ocala, Fl had their FHA approval to grant loans suspended in early August. Its shutdown resulted in hundreds of thousands of homeowners being thrown into a mess of confusion, including bounced checks from Taylor Bean, and misleading information on which lenders took over Taylor, Bean and Whitaker loans.
Taylor Bean hasn't been the only one to have their certification revoked. The Department of Housing and Urban Development’s (HUD) Mortgagee Review Board from July 10, 2008 to August 4, 2009, reveals nearly 200 mortgage companies settled actions, paid civil money penalties, had their FHA approvals … (0 comments)
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mortgage lenders: How Long Should You Keep Tax Records?
- 12/23/09 04:58 AM
How long are you required to keep your tax records? The IRS only requires you to hold onto your tax records for seven years. But a lender might want more. Find out what they are looking for, or consider working with another lender.
Even the IRS doesn't require you to keep your tax returns more than 7 years - except if they suspect you of fraud. That's a long way to go back in time and I'm not sure I understand why a lender would want to see write-offs that are that old. (If any lenders reading this column have … (1 comments)
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mortgage lenders: Underwater? Maybe You Should Walk Away From Your Mortgage?
- 11/30/09 05:44 AM
According to the latest figures, some 23 percent of Americans are underwater with their mortgage. That means their home is worth less than the amount they owe to their lender.
If you have a job, and can afford your payments, being underwater may not cause anything other than a really bad headache. But if you’ve lost your job, you’re probably running through all of your available cash plus anything you can beg, borrow and perhaps steal in order to keep making your mortgage payments.
The question on Brent T. White’s mind is “Why?”
White is a professor at The University of … (4 comments)
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mortgage lenders: Do I Have to Live in My Primary Residence As Dictated by My Mortgage Lender?
- 10/08/09 03:28 AM
Q: I bought a house as a primary residence in 2006. In 2007, I bought another home that I intended to use as my primary residence. I was recently informed by my lender that their current lending guidelines require my first home be owner-occupied. I tried to appeal but they didn't budge.
I'd like to know if the clause from my loan document is sufficient. Even if their current guidelines dictated owner-occupancy for all loans, will satisfying the terms of the loan I signed override their current requirements?
A: Yes. The documents you signed govern your relationship with your lender. That … (2 comments)
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mortgage lenders: Can't Pay Mortgage? Should You Be Worried About A Deficiency Judgment?
- 08/26/09 04:28 AM
In today’s economic environment, tens of thousands of homeowner’s are struggling. For many of these homeowners, their financial problems are tied to medical problems. IPaying the mortgage for most is one of the largest expenses and many just can't pay the mortgage payment on a monthly basis and fall behind.
If the debt is not paid and the homeowner stops paying the mortgage, the lender has the right to take back title to the property by foreclosing on the home. Upon the foreclosure, the bank sells the home to settle as much of the balance owed on the mortgage as possible. … (0 comments)
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mortgage lenders: Foreclosure Affects Credit But Homeowner May Avoid Deficiency Judgment
- 07/07/09 03:59 AM
Going through foreclosure isn't what anybody wants to go through. For some, going through foreclosure can be the start of a process that can drag on for years. If the foreclosure process does not yield enough money to pay off the mortgage that the lender had given the homeowner that homeowner could be stuck with a deficiency judgment and having to repay the difference for years to come. If the lender does not pursue the deficiency judgment or can't, the foreclosure will still have a negative effect on the homeowner's credit history and credit score for years to come.
Quesiton: We … (0 comments)
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mortgage lenders: Questions for HUD Secretary Shaun Donovan
- 06/20/09 11:10 AM
Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD), spoke to a members of the National Association of Real Estate Editors yesterday afternoon in Washington, D.C. A copy of his prepared remarks can be seen here. After he made his prepared remarks, Donovan took questions from the media.
Question: Why Make Preventing Foreclosures the Top Priority? Q: There’s a lot of emphasis on preventing foreclosures. But if you let foreclosures happen now, perhaps you’re not delaying the inevitable. You’ll also make houses cheaper, which will make them more affordable for buyers. Why make preventing foreclosures the first priority? … (0 comments)
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mortgage lenders: Can I Combine My First Mortgage And Home Equity Line of Credit Into One Loan?
- 06/17/09 06:42 AM
Can you refinance to combine a first mortgage with a home equity line of credit if you owe more than your house is worth? Borrowers across the country are finding that if they are underwater with their mortgage (that is, their house is worth less than the mortgage amount), lenders will not combine their loans into one mortgage with a lower interest rate. What are a borrower's options? Samuel J. Tamkin explores the situation in this column.
Question: I live in California and I have a first mortgage and a home equity line of credit with the same bank. My first … (0 comments)
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mortgage lenders: Mortgage Lender May Have Long-Term Access To Your Credit History
- 04/24/09 12:40 PM
Summary: When you apply for a mortgage you allow the mortgage lender to access your credit history and other financial data. But how long can a mortgage lender pull these records? In many cases, a mortgage lender may access your credit history indefinitely in order to screen you as a customer for other products. Screening customers using their credit histories is similar to what credit card companies do. Can you put a time limit on how long a mortgage lender can access your credit history or other financial data?
Question: I had been reading Robert J Bruss's real estate column for … (1 comments)
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Do your clients need an incentive to start moving on buying a home? 2012 may be your year, as 30-year fixed rate mortgages are at an all-time low.
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