mortgage: Mortgage Standards Standing Firm - 11/07/13 05:05 AM
Mortgage standards don’t appear to be budging, even though over the third quarter of 2013 we have seen interest rates rise, causing fewer refinances and a lower demand for mortgages.
The Federal Reserve conducted a survey over the first half of October, of federal loan officers in 73 domestic banks and 22 international branches, in regards to a 1% rise in interest rates for a 30 year fixed mortgage in 3Q13.
The survey found that 80% of banks did not adjust their credit standards at all, while 15% of banks admitted to lowering their standards slightly.
Erik Johnson, senior U.S. … (0 comments)

mortgage: Turn Your 30 Year Mortgage Into $2 Million! - 09/09/13 03:45 AM
Buying a home is often times an exciting time for new home buyers; however the mortgage payment is a different story.  The thirty year mortgage although the most common, can also be thought of as a retirement account.
 
Paying your mortgage off early is not a new idea and not the strategy for everyone, but is a conservative approach and may not be for those who are looking for larger returns.  Age may also be a factor in whether a homeowner would like to continue paying a mortgage for a full term.

The idea is simple in itself; a … (0 comments)

mortgage: NAR Blames Real Estate Appraisals For Holding Down Sales Prices - 10/11/12 10:51 PM
 
A news release on October 10th by the National Association of Realtors blamed real estate appraisals and tight mortgage credit for holding back home sales. In the news release, it was noted that while most appraisers were competent and provided valuations compliant with guidelines by Uniform Standards of Professional Appraisal Practice (USPAP), changes in the appraisal process and the fact that appraisals generally lag market conditions were factors contributing to problems in the home buying process.
The report sighted a survey carried out in September, in which 35% of realtors surveyed said that a contract was cancelled, delayed or renegotiated … (22 comments)

mortgage: Is A 760 Credit Score High Enough? - 10/04/12 10:17 PM
 
Ron Phipps, Immediate Past President NAR, quipped, “that means 15% of potential buyers cannot qualify (for a mortgage).”  What exactly did Ron mean?
In his recent post in the National Association of Realtors weekly blog, he was referring to the change in underwriting standards and the powerfully negative impact it has on his client base, home buyers.
Specifically, Ron notes that prior to 2004, the credit score needed to qualify for a mortgage that involved Freddie Mac or Fannie Mae was 720; today the credit score needed is 760. 
Based on whatever math Ron performed, he surmised that 15% … (0 comments)

mortgage: Freddie Mac And The Inverse Floater - 10/04/12 10:05 PM
 
In January the National Public Radio (NPR) website ran a story accusing Freddie Mac, a government sponsored entity of betting against homeowners, by investing billions of dollars to ensure that they do not refinance their mortgages at lower rates. The broadcaster had sighted an investigation carried out by NPR and ProPublica, an independent not for profit news room.
 
Freddie Mac was chartered by congress to stabilize the nation’s residential mortgage markets and expand opportunities for homeownership and affordable rental housing in 1970. However there were accusation that in 2010 and 2011, Freddie Mac set out to make gains for … (1 comments)

mortgage: Should Counties Use Eminent Domain To Help Avoid Foreclosure? - 10/03/12 01:25 PM
 
 
The recent housing burst and the eventual financial crisis that preceded it has opened up a lot of debate about what our economic system really can handle and what the role of government in society should be.  One such debate has been the conversation about whether counties and cities should be able to use eminent domain as a tool to take over underwater mortgages in their jurisdictions in hopes of saving communities from the woes brought about by mass foreclosure.
In a society where some have steadfastly pushed for a move to Laissez faire economic principles, the fact that … (0 comments)

mortgage: Short Sale Fraud Or Poor Documentation? - 09/29/12 12:13 AM
 
According to reports by the Mortgage News Daily website, misuse of the FHA Pre-foreclosure Sale Program, may have cost the Department of  Housing and Urban Development (HUD) over $1 billion in claims that did not meet program requirements.  Was it short sale fraud or was it poor documentation and enforcement?
The program was introduced in December of 2008, with the release of Mortgagee Letter 2008-43. It is supposed to give home owners relief, by allowing borrowers in default due to an adverse and unavoidable financial situation sell their home at fair market value and use the proceeds to pay off … (6 comments)

mortgage: Jumbo Loan Market As A Leading Housing Market Indicator? - 09/03/12 08:52 PM
                Could the return of jumbo loan market signal the easing of credit markets for the housing market in general, and specifically be a leading market indicator? 
As reports about the recovery of the housing market continue to grow, larger high-cost home loans (referred to as jumbo loans) not guaranteed by the federal government are making a comeback. Reports indicate that lenders gave out $38 billion in private high-cost mortgages during the second quarter of 2012, which is an improvement of 65% from a year earlier and the highest quarterly dollar amount since the first quarter of 2008 according to … (2 comments)

mortgage: Turning A Corner - 08/11/12 02:34 AM
 
In an earlier article by Zillow.com (http://www.zillow.com/blog/2012-07-16/rents-rise-as-more-americans-flock-back-into-cities/), the City of Chicago found both rent price and rent demand shoot up at an unprecedented rate as young adults flocked downtown and away from suburbs. One of the reasons, Stan Humphries of Zillow.com stipulates, why young adults avoided suburbs and home purchases were the credit restrictions many young adults couldn't navigate around.
 
But according to a recent article on dsnews.com, Mark Lieberman reported that The Federal Reserve and commercial banks lowered standards for mortgage loans in order to meet the growing demand.
What is most heartening is not the … (0 comments)

mortgage: Is The Buyer Really So Smart? - 06/26/12 09:50 AM
Earlier today, we received the following message, "The value opinion is wrong, please correct it to what we think it should be."  Interesting comment indeed given that the message was from a homeowner who asked for the opinion of market value because they wanted an appraisal in their file for their cash offer on a property.
This got me to thinking, 'Is the buyer really so smart'? or are they just seeking emotional fodder for their pocketbook to avoid buyer's remorse?
In this case, I think it is the latter and not the former.  Yet, how many times in the imperfect … (3 comments)

mortgage: How Long Can They Go? - 06/07/12 10:48 PM
With each passing week, it seems someone is talking about interest rates with a renewed abandon. 
"Can you imagine interest rates below 4%?!", I heard one realtor say yesterday.  Really, it was only a couple years ago when, people were saying Can you imagine interest rates below 6% because 8% used to be absolutely the lowest rate for the past X years (you insert your perspective here on the # of years based on your longevity in the industry).
And it many times that is followed up by, "I remember when I was paying 20%+ for my home mortgage and I … (1 comments)