mortgages: What Does the OCC's Plan for 8 Major Banks Really Mean? - 04/29/11 03:59 PM
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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mortgages: Have We Reached The Tipping Point? - 03/14/11 09:54 AM
Every recession has its "tipping point." So, are we there yet? According to credit expert Janet Dedrick, consumers generally have less outstanding debt now than they did in 2008, which is good news. But the Catch-22 of debt is that it actually grows the economy until a certain level. Dedrick says we've reached that tipping point now. While it may seem like the worst levels of consumer debt are behind us, Dedrick still sees credit challenges for consumers, and especially home buyers. Payment stress is high for prime mortgage borrowers, not just subprime borrowers, and there is unprecedented payment stress on … (1 comments)
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mortgages: FHA Increases Mortgage Insurance Premium to Increase Capital Account - 02/15/11 10:23 AM
The ailing FHA announced yesterday it would be increasing mortgage premiums by a quarter of a percentage point (.25) on all 30- and 15-year loans. Federal Housing Administration’s Commissioner David H. Stevens announced the new premium structure for FHA-insured mortgage loans that will require borrowers to pay approximately $30 more per month.
The plan is to bolster capital reserves and aid the return of private investment in the housing market.
President Obama’s FY 2012 budget projects the FHA will insure $218 billion in mortgage borrowing in 2012. Among government-backed Fannie Mae and Freddie Mac and the Federal Housing Administration the three groups … (2 comments)
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mortgages: How To Avoid Foreclosure After One Missed Mortgage Payment - 01/24/11 03:28 PM
The number of emails I’ve received from homeowners in distress has increased in the last few weeks. It’s almost as though the Christmas foreclosure freeze has thawed, and lenders are trying to fight through the backload of homeowners who aren’t paying their mortgages.
Maybe this is what’s happening. I don’t know.I do know that lenders are on the lookout for borrowers who miss their first payment. It’s well-known in the lending industry that the vast majority of homeowners who miss a single payment, and are late just by 30 days, will figure out a way to catch up on their payments.
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mortgages: How To Get A Mortgage Now - 01/10/11 03:56 PM
What do mortgage lenders look for when they scrutinize your finances? It all boils down to financial stability and making sure you’re a good credit risk. But how exactly do lenders get a snapshot of your finances?On your application, you’ll be asked to disclose personal finance information that will help the lender decide whether your finances are stable or precarious at that moment in time. From your employment status to your cash reserves to your credit score, there are numerous pieces of the puzzle that will help paint of picture of your financial situation. If you're trying to buy a home in … (0 comments)
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mortgages: 2010 End of Year Credit Trends - 12/20/10 11:40 AM
We’re approaching the end of the year, and the big topic in credit trends seems to be delinquency rates. These rates, which measure loan nonpayment levels, were increasing in 2009 and had not peaked, while today they are no longer at historic highs and are declining. Even mortgage delinquencies are declining:Select Delinquency Rates From Oct 2009 Oct 2010 Mortgage 7.76% 7.17% [8% decline] HELOC 3.39% 3.05% [10% decline]Card 4.58% 3.50% [24% decline]Auto 1.21% 0.92% [24% decline]However, it is still tough out there, given the last few years of recession and the nascent recovery. Mortgage and HELOC delinquencies are still at levels … (1 comments)
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mortgages: Options for Refinancing a Mortgage on an Inherited Property - 11/02/10 09:35 AM
If you've inherited a property, you may be considering a mortgage refinance. I received a question from a reader whose son passed away, leaving her and her husband with his condo. Should they refinance the mortgage on this inherited property? Q: My son purchased a condo in August, 2008. He paid $240,000 and put down 20 percent in cash. Similar properties are now selling for about $200,000. My son passed away in June leaving no will. After a period of 60 days, our county court signed over the title to me and my husband. The condo is rented out and we … (1 comments)
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mortgages: Loan Modification Can Lower Your Monthly Mortgage Payment With A Willing Lender - 07/05/09 02:35 PM
If you have an adjustable rate mortgage (ARM) on your home but want to lock in the rate without refinancing, are there "loan modifications" that could do this? Or is refinancing the only option?
At various times over the past 20 years, some lenders have offered to modify the terms on borrowers loans quickly and with simple loan documentation. Some times that process is referred to as a streamline loan modification or streamline refinance. Lenders have used different names for this process over time so you shouldn’t get hung up on the name.
The essence of the process is … (1 comments)
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mortgages: Home Mortgage: The Balloon Loan - 01/09/09 12:30 AM
A home mortgage with one larger payment at some point is called a balloon loan. This type of mortgage is usually on a second mortgage. With these mortgage loans, most people will sell or refinance before the balloon payment is due. Watch this Expert Real Estate Tips video about these special mortgages and find out if a balloon loan is right for you. … (1 comments)
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