mortgage news: GAO Reports On TARP – High Risk - 12/10/08 03:22 PM
A “heightened risk that the interest of the government and taxpayers may not be adequately protected,” is what the Government Accountability Office stated about the TARP program.
The TARP program which was designed by the Treasury to purchase toxic mortgage loans quickly switched over into a program called the Capital Purchase Program (CPP) which is now used to inject capital into banks and other financial institutions.
Since the $700 billion TARP program began, $195 billion has been disbursed to 87 institutions through the CPP program. Oversight of this money once it leaves the Treasury is virtually nonexistent according to the report … (0 comments)
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mortgage news: Fannie Mae, Freddie Mac: Where Do They Stand - 07/20/08 12:51 PM
It is no doubt that Fannie Mae and Freddie Mac are the backbone to the success of the US mortgage industry. So how is it that these two mortgage giants came to a position where the government is stepping in to make certain that they do not fail?
Fannie Mae, created in 1938, and Freddie Mac, founded in 1970, buy mortgages from lenders and package them into securities that are sold to investors. This frees lenders to provide new mortgages, making it easier for more Americans to buy homes. The entities hold or guarantee $5.3 trillion in mortgages, about half the … (0 comments)
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mortgage news: A Week Of Dismal Reports - 04/10/08 10:48 PM
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mortgage news: Washington Mutual Dropping Wholesale Mortgage Lending - 04/10/08 06:42 PM
Washington Mutual, once the second largest residential mortgage lender in the US will stop originating mortgage loans through independent mortgage brokers. However, WAMU will still originate mortgage loans through its 2,200 retail bank branches located throughout the country.
Washington Mutual was an early leader to offer subprime adjustable rate mortgages to the general public and by the end of last year the losses started to mount. In the fourth quarter of 2007 WAMU posted a loss of $1.87 billion wiping out all earnings for the 2007 year. The beginning of 2008 is not looking good for WAMU’s mortgage lending business with … (0 comments)
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mortgage news: Refinancing Boom Amid Falling Mortgage Rates - 03/26/08 12:37 PM
Refinancing Boom Amid Falling Mortgage Rates
Mortgage applications nearly doubled last week after the Federal Reserve slashed interest rates by 0.75 percent last week.
Refinance mortgage applications increased by 82 percent last week as mortgage rates begun to decline for the first time since February 2008. Home purchase applications also increased last week by 10.6 percent which helped bring the overall mortgage application increase to 48.1 percent.
Over the past two weeks the fixed cost of borrowing dropped 0.63 percentage points, which is the largest drop in over four years. In response homeowners raced to refinance by applying for more mortgages … (0 comments)
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mortgage news: Mortgage Rates Fall During Week - 03/20/08 03:35 PM
This week there has been a number of huge factors contributing to the recent decline in mortgage rates. The Fed has lowered interest rates by 0.75 percent, JP Mortgage purchase Bear Sterns and Fannie Mae and Freddie Mac are pumping $200 billion into the housing industry.
The 30 year fixed rate mortgage average fell from 6.13 percent to 5.87 percent from a week earlier, while the 15 year fixed rate mortgage average fell from 5.60 percent to 5.27 percent during the same week according to Freddie Mac. This is the first time that mortgage rates have fallen since February of this … (0 comments)
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mortgage news: FPF Mortgage Minute - 02/12/08 02:57 PM
Making the news today include Michigan’s loan modification issues, Montana’s mini refinance boom and New Yorkers getting the much need mortgage help that they need.
As home values continue to decline in Michigan many homeowners are hoping that the new stimulus package will help them keep their homes. Even with mortgage rates on the decline many homeowners just do not have enough, if any, equity left in their homes to refinance into a payment that is affordable or out of an adjustable rate mortgage.
Homeowners in Michigan are urged to contact their lenders immediately if they have exhausted all other … (0 comments)
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mortgage news: Mortgage Rates Spiraling Downwards - 01/25/08 07:58 PM
Future Planning Financial
Strictly Mortgage
Thanks to the Federal Reserve’s emergency rate cut earlier in the week, fixed rate mortgages have declined for the fourth straight week in a row. The news has brought forth a refinance boom that could save many homeowners from their adjustable rate mortgages and possibly cut monthly mortgage expenses for those with a fixed rate mortgage above 6 percent.
The 30 year fixed rate mortgage has been under 6 percent for the third consecutive week with the current average 30 year fixed rate mortgage sitting at 5.48 percent, according to Freddie Mac. That is down 0.21 … (0 comments)
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mortgage news: Missouri Homeowners To Receive $99 Million From Mortgage Lenders - 01/05/08 03:39 PM
Three mortgage lenders were ordered to pay $99 million in punitive damages to Missouri residents who were charged illegal fees on second mortgages. On top of the $99 million in punitive damages, another $5.1 million in actual damages was ordered to be paid.
GMAC Mortgage Group, one of the three lenders, was hit hardest by the lawsuit. They are ordered to pay $4.33 million in actual damages and $92 million in punitive damages. Household Finance was ordered to pay $420,489 in actual damages and $4.5 million in punitive damages. Wachovia Equity Servicing, the third lender, was ordered to pay $374,957 in actual … (0 comments)
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mortgage news: A New Law Gives Judges Power Of Mortgages - 01/05/08 11:59 AM
Federal legislators are trying to pass a law that would give judges power over mortgage terms. The law was passed by the House Judiciary Committee on December 12th but still has to pass through the House of Representatives, the Senate and the President.
If passed, the new law would allow bankruptcy judges to lower the interest rate or extend the duration of a mortgage for up to 30 years, allowing borrowers to have a more affordable mortgage. Many believe the law, dubbed the Homeowners Mortgage and Equity Saving Act, could help more than 500,000 borrowers already in default to avoid foreclosure.
Many banks … (0 comments)
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mortgage news: 1/3/2008 – National City Mortgage Job Cuts - 01/03/08 11:06 AM
National City Corp., one of the nation's top ten largest banks, is eliminating another 900 employees after letting 2,500 employees go in the middle of 2007. The job cuts will affect about one-seventh of their mortgage personnel, leaving 32,804 employees overall.
National City also hired Goldman Sachs & Co. as an adviser and hopes with this new relationship they can put together a plan to help dig them out of the mortgage meltdown. The bank is anticipating that their stocks will fall from 41 cents a share to 21 cents a share, ending 15 straight years of increases.
National City is not out … (0 comments)
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mortgage news: 1/2/2008 – Mortgage Broker Tracking Launched - 01/02/08 07:52 PM
Seven states launched a new mortgage broker tracking process in hopes of weeding out any unethical mortgage brokers jumping from one state to another after their license has been suspended or revoked in a particular state.
In the publics' eyes, mortgage brokers hold the biggest blame when it comes to the mortgage meltdown that began in 2007. The new tracking system is just another effort for law makers to tighten national standards and hold individuals responsible for their actions.
The new tracking system creates a uniform application for mortgage brokers that allow banking regulators keep tabs on unethical mortgage brokers from bouncing from … (0 comments)
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mortgage news: 12/18/2007 - Fed Taking Steps To Clean Up Mortgage Lending Practices - 12/18/07 05:03 PM
Amid one of the worst US housing slumps in decades, the Fed is racing to tighten up the rules governing home loans. Some of the proposed rules are directed towards sub-prime mortgages which are responsible for the surge in home foreclosures.
Mortgage fraud has also played a big role in the decisions that government agencies are making to tighten lending guidelines. Bernanke said, lack of "market discipline" during a years long housing boom which has been followed by an almost two-year long housing downturn has hurt the economy tremendously.
"The consequences, as we are currently seeing, can include the proliferation of unfair and … (0 comments)
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mortgage news: Washington Mutual Cleaning Up Mortgage Originations - 10/02/07 11:56 AM
10-02-07 - Washington Mutual Inc., the sixth largest home mortgage lender in terms of volume in the U.S., is requiring mortgage brokers to provide more information to borrowers in an effort to clean up the origination process.
In addition to providing more information to borrowers, WAMU will be calling every loan originated by mortgage brokers to ensure that the mortgage they are about to take on has been fully explained. This includes making sure the new mortgage holder understands whether or not the interest rate will adjust, pre-payment penalties, any negative amortization, interest rate, loan amount and all the other fine details … (0 comments)
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mortgage news: Decision One Mortgage – Sub-prime Mortgage Victim - 09/22/07 02:37 PM
According to sources within the industry Decision 1 Mortgage, a division of HSBC Finance, will no longer be accepting sub-prime mortgage loan applications through mortgage brokers in the U.S. If you have applied for a mortgage loan through Decision 1 Mortgage, your loan must close on or before September 28th, 2007.
As a result of Decision 1 Mortgage closing their doors in the U.S. another 750 employees in the mortgage industry will be losing their jobs.
HSBC has stated that they seeking greater control of their lending procedures and policies and therefore have decided on lending directly to consumers. This tactic seems … (0 comments)
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mortgage news: More Mortgage Companies In Trouble - 08/07/07 11:35 AM
National City Mortgage, Aegis Mortgage and American Home Mortgage are the latest names in the mortgage industry that have closed down their doors to new mortgage applications. This proves that even mortgage lenders who do not specialize in sub-prime mortgages are in trouble and that the worst housing crunch in decades could be widening.
On Monday August 6th, 2007 National City Mortgage Corp. said that its wholesale home equity unit has stopped taking applications for loans and lines of credit as problems in the mortgage industry continue to spread. "This is one of a number of steps National City has taken in … (0 comments)
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