fannie mae: Are 4.5% mortgage rates here?
- 12/03/08 12:53 PM
We are not there yet. But, we are closer than you might think. The Treasury Department , working around the clock to save the day. Only if they had a cape and a phone booth_ The need to stop housing price declines which seem to be accelerating to stave off a deep recession. Just hours ago, the Treasury announced that they are developing a plan to try to reduce mortgage rates on home loans to 4.5 percent .
The plan would see mortgage finance companies Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) expand their purchase of mortgage … (10 comments)
fannie mae: Rent-to-Own Nightmare in Phoenix AZ
- 11/14/08 02:20 AM
I have been writing short sale nightmare stories in Phoenix, Scottsdale, Peoria, Fountain Hills and Tempe for some time. I have shared stories about banks ignore offers that request Down Payment Assistance. There are banks that will only accept cash offers. I have spoken about lenders wanting additional monies for buyers using FHA loans. I have even spoken about sellers . I also shared a seller nightmare with short sales who had money in a bank account frozen due to a pending short sale with that same bank. Today, we have a new and very said story about the little … (22 comments)
fannie mae: This is NOT a BAILOUT for Fannie Mae!! It is Modernization
- 11/10/08 03:10 AM
Phoenix home prices are down 30%++ Scottsdale home prices are dropping. Phoenix area Condo project sales have stalled and are revering to rentals. Foreclosures rising by staggering amounts in Maricopa County. Many Arizona Builders are drowning and Bankruptcy is the only life preserver. Liar-loans and sub-prime mortgages are may total more than $100 Billion in losses according to Moody's. The lending industry is going through tough times. Some might use the word "Crisis" IndyMac, First National Bank of Arizona, Bear Stearns are giant names on the tombstones in the wholesale lending graveyard. Lending giants Fannie Mae and Freddie Mac are on … (6 comments)
fannie mae: Financial Rescue Package - at what cost??
- 10/27/08 03:29 AM
I have recently written several articles about my support for the Housing Rescue and Financial Bailout Package that is now weeks into effect. I believe it is an important piece of Legislation that does 2 important key things to add support to the ailing housing and credit markets. It creates badly need liquidity in the credit . Opposition was strong in many camps arguing to block grants on the grounds that "the principal beneficiaries of this type of plan would be private lenders - who are now the owners of the vacant or foreclosed properties - instead of struggling homeowners who … (8 comments)
fannie mae: Danger Signs that your Finances are in Trouble!
- 10/22/08 04:54 AM
As real estate prices continue to slide in greater Phoenix and the surrounding towns including Scottsdale, Fountain Hills, Peoria, Tempe, there has been a flurry of activity of an again emerging class of buyers, First-Time home buyers. Prices have fallen back into affordability levels. Interest rates are still historically very low. And with Federal legislation allowing incentives and exceptions in Fannie Mae and Freddie Mac financing, ...these buyers are who had been for many years, priced out of entry level housing are now the lone winner of they housing crisis sweepstakes. However, if you are in the market to buy a … (18 comments)
fannie mae: FED Rescue Package Hurts Financially Responsible
- 10/20/08 12:25 PM
The Federal Regulators, including the Treasury Department have swooped in to offer unprecedented guarantees to mortgage lenders Fannie Mae and Freddie Mac to stave off possible financial collapse of the United States banking system. I applauded and had previously argued that the FED should move quickly to prevent a failure of Fannie Mae and Freddie Mac. Russ Wiles of the AZ Republic wrote an excellent leading opinion that the boom in housing was led by greed shared by lenders, buyers and Wall Street mortgage investors; "Unqualified buyers reaching for unaffordable homes and Wall Streets investment (mortgage) banks willingness to offer almost anyone … (8 comments)
fannie mae: Fannie Mae's New lending guideline
- 10/20/08 03:32 AM
I often get asked by homeowners who are having difficulty selling their home, can they buy another home prior to a successful sale. The common trend recently has been to rent your existing home and purchase a new home using the rental income from you existing home to offset a portion or all of the mortgage payment. If you have been waiting to buy a home while your home is in escrow pending a sale or you have been considering renting your home until the market improves, please be aware of these important Fannie Mae lending guideline changes. FANNIE MAE … (8 comments)
fannie mae: Credit Crisis - Let's Play the Blame Game !
- 10/19/08 03:20 AM
Sub-prime lending and easy credit are widely considered the primary factors that caused the expansion of the housing bubble and the expansion of housing prices that led to the ultimate implosion of the real estate economy. However, ....what are the reasons that caused the mortgage crisis? and the collapse of Bear Stearns, IndyMac, Fannie Mae and Freddie Mac and a free-fall in housing prices in greater Phoenix and in virtually every part of the country. Who really is to blame? Borrowers - The vast majority of borrowers where honest in their loan applications. These are the neighbors that are hardest … (9 comments)
fannie mae: Will mortgage brokers become extinct?
- 10/17/08 03:00 AM
earlier this year, while it was still in business, Wachovia Bank announced that they, (Wachovia) is exiting the General Bank wholesale mortgage origination channel. This was a shocking follow up from the announcement from Bank America closing its wholesale division of lending through mortgage brokers. Look no further than www.ML-Implode.com; Here you can watch the wreckage in the mortgage lending business tallied for the world to see. Industry guru, Rob Blake wrote asked ... are Mortgage Brokers are an endangered species? He pointed out that If you listen to Mortgage (broker) Industry insiders you will hear whispers that the 'all-powerful' "banking … (12 comments)
fannie mae: Cell Phone Loans
- 10/16/08 02:08 AM
A recent Associated Press article noted that in Finland, Sweden and other Northern European countries you can get "Text-Loans" - in which borrowers send text messages to lenders to receive money in minutes. According to the Wire Report, a borrower would send a text message containing amount requested, their address, personal Identification number (SS#) and bank account number. The lender checks an on-line database and wires money if the applicant has a clean credit record. Granted, the maximum loan amount is $300. However, this type of easy lending with extraordinary lending fees and interest rates is not so unfamiliar to the … (11 comments)
fannie mae: Who to blame for the Financial Crisis
- 10/10/08 04:47 AM
Sub-prime lending and easy credit are widely considered the primary factors that caused the expansion of the housing bubble and the expansion of housing prices that led to the ultimate implosion of the real estate economy. However, ....what are the reasons that caused the mortgage crisis? and the collapse of Bear Stearns, IndyMac, Fannie Mae and Freddie Mac and a free-fall in housing prices in greater Phoenix and in virtually every part of the country. Who really is to blame?? Borrowers - The vast majority of borrowers where honest in their loan applications. These are the neighbors that are hardest … (14 comments)
fannie mae: Can the FED by a profitable company for once! 'Google' anyone ?
- 09/17/08 11:07 AM
Earlier this year the FED helped arrange the buyout of Bear Stearns. As the credit crisis persisted throughout the summer the FED left the borrowing window open to depositor banks to borrow money (at very low rates of return to the FED) to the borrowers be repaid later. Just weeks ago, the FED bailed out Fannie Mae and Freddie Mac which will cost the Federal Reserve (you, the taxpayer) tens of Billions of dollars. Yesteday, the FED agreed to invest in (bailout) American Insurance Group (AIG) to the tune of a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent … (8 comments)
Fannie Mae announced recently that they have increased their elapsed time -frame guidelines for clients in foreclosure for when they will consider a borrower to have ‘ re-established ‘ their credit in order to get a loan; They have increased the time period for which they will consider borrowers for loans after a short sale or foreclosure from 4 years to 5 years (as of June 1st). In Calculated Risk , Fannie Mae Tightens Guidelines Again, he highlights the reasoning and change in lending policy. The presence of a prior foreclosure action in the borrower's credit history is evidence of … (4 comments)
fannie mae: 4 Reasons to Buy a Scottsdale Home Today
- 09/10/08 10:58 AM
We have all seen the front page news, including such headlines as the USA Today stating that the " Housing Market gets uglier and uglier" ! So, you ask me, "why one should take the plunge into turbulent waters and finally buy. Here are 4 crucial home buying reasons to consider: 1) Fannie Mae has significantly eased their lending guidelines and is hoping to stimulate buying as well as well as stave off a negative astigmatism on local housing. This easing of credit, effort to stimulate the Real Estate market along with the inference of reduced risk to a company whose … (5 comments)
fannie mae: Back to the Basics
- 08/22/08 10:10 AM
One of the big reasons the FED is not using the "B" word (Bailout) for Fannie Mae and Freddie Mac, helps Bear Stearns and rushed to pass the Homeowner Rescue Act is to instill Consumer Confidence. A difficult task amidst the variety doomsday headlines of the many news media sources. Unfortunately, consumers are afraid. The question is how do you keep your customers and find new clients. It is time to go Back to the Basics. Be a Marketing Machine Advertise , Advertise, Advertise - Work more when you making less Call your past clients - even to … (4 comments)
fannie mae: Fannie & Freddie Reduce Down Payment Requirements
- 08/20/08 11:41 AM
Fannie Mae announced a new policy to make every effort to help the mortgage and real estate markets by reducing down payment requirements in areas that were previously designated "declining zip codes'. Big Brother must be listening or at least reading Wexzilla (please see May 1st Blog -Is the declining zip code a self-fulfilling prophecy? ) According to Fannie Mae the new national down payment policy will supersede the policy the company adopted in December requiring higher down payments in markets where home prices are declining , essentially requiring higher down payments in these markets (virtually all of greater Phoenix was … (2 comments)
fannie mae: Investors Dump Fannie Mae & Freddie Mac
- 08/18/08 04:33 AM
Today on Wall Street, "Investors dumped the stocks of Fannie Mae and Freddie Mac on Monday after Barron's reported the increasing likelihood of a U.S. Treasury bailout that would approach nationalization of the two housing finance titans." Freddie Mac and Fannie Mae have recently indicated that they do see challenging housing and lending markets for the near future and some further decline in pricing. However, today at least, investors seem to see a continued downturn in housing and lending was factored into the market by Wall Street (and Main Street )and possibly there may be moer Treasury involvement before a Real Estate correction is … (0 comments)
fannie mae: Alt-A ...the new sub-prime ?
- 08/06/08 05:56 AM
I am starting to see a lot of analysts, industry insiders and mortgage brokers discuss Alt-A as the new Sub-prime. Earlier today, Freddie Mac posted a financial loss that was more than 3X larger than expected. Note, that the losses were concentrated in Arizona, California, Florida and Nevada. The news was especially disturbing for real estate and the economy as mortgage delinquinces spread past the sub-prime category into borrowers with good credit into what are called Alt-A mortgages. Freddie Mac Chief Financial Officer Buddy Piszel told The Associated Press that the credit problems are emerging mostly in the company's Alt-A portfolio, … (0 comments)
fannie mae: Seller-Assisted Down Payments to be Allowed ?
- 08/04/08 10:26 AM
I have been standing on my soapbox yelling at the top of my voice about what I think is too broad a flat ban on down payment assistance programs (DPA) by the new housing stimulus package. I think someone heard the many voices of those who complained aloud: 2 members of Congress introduced a new bill to revise this ban on Down payment assistance. The pending draft would change, revise and regulate who would qualify under programs like Ameridream; not outlaw and ban charitable down payment assistance completely. The Bill To revise the requirements for seller-financed down payments for "mortgages … (2 comments)
fannie mae: House Approves Home Owner Stimulus Package
- 07/23/08 11:32 AM
House Approves Homeowners Stimulus package just moments ago. The Bill designed to help more than "400,000 strapped homeowners avoid foreclosure and preventing the collapse of troubled mortgage companies Fannie Mae and Freddie Mac". The resounding vote helped solidify stability in the financial markets and specifically the stocks of Fannie Mae and FreddieMac The now House approved lesgislation is on track to pass the Senate and become law within days. I applaude the President for his support. Most importantly, As Secretary of Treasury , Henry Paulson said , "portions of this bill are orders of magnitude more important to turning the corner on the … (6 comments)
We are not there yet. But, we are closer than you might think.;)
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