mortgage: Senate Introduces Financial Reform Bill - 03/26/10 06:22 AM
The Senate has introduced a Financial Reform Bill, introduced by Banking Committee Chairman, Christopher Dodd (D-Connecticut).
If the bill is passed it will create a Consumer Financial Protection Bureau to watchdog unfair, abusive and predatory financial services and products. It will be housed within the Federal Reserve. Banks and credit unions with assets over $10 billion will be monitored by this new agency, as will mortgage brokers and servicers, debt collectors and consumer reporting agencies.
The bill also includes a council that oversees systemic financial instruments and practices in an effort to avoid the kinds of exotic products that led to … (2 comments)

mortgage: Only 170,000 Permanent Loans Under HAMP - 03/23/10 11:08 PM
The HAMP program issued one bit of good news: permanent loan mods were up 45% in January. The bad news is, this is just a miniscule amount of the 1.8 million homeowners who are behind in their payments in the U.S.
The total HAMP permanent loans processed during the month of January Were 170,000 according to the Treasury Department.
There are nearly another 92,000 awaiting the homeowner’s signature to move from trial to permanent loan.
Lenders have sent offers to 1.3 million homeowners to start the program, which is less than the government’s goal of reaching out to 3 to 4 … (3 comments)

mortgage: Jumbo Loan Default Rate Escalates - 03/16/10 10:42 PM
Serious delinquencies of jumbo loans ($417,000 in most areas and $729,750 in certain high-priced markets) were higher for the 32nd month as of January according to Fitch Ratings, a credit rating organization. These 60 day+ late loans jumped to 9.6% of the residential mortgage-backed securities market compared to 9.2% in December. This trend has been in place since 2007 and nearly tripled in 2009.
In California, which holds 44% of the jumbo loans, the delinquency rate was 11.3% in January and expected to climb. Jumbo prime loan delinquency rates also rose in Florida, New Jersey, New York and Virginia. Fitch officials … (0 comments)

mortgage: Refinance Applications are Up - 03/13/10 12:14 AM
After a 3 week decline in mortgage refinance applications, the Mortgage Bankers Association reported a 17.2% upswing in refinance applications during the last week in February compared to the week before. The refinance share of total mortgage applications was up by a point to 69.1% of the total applications.
The mortgage rates dropped below 5%, which is one of the reasons cited for the increase in new applications. According to the Wall Street Journal, the majority of these refinance loans are going, not to the people who necessarily need it the most, but to people will very good credit. Those who … (1 comments)

mortgage: Ocwen a Winner in Loan Modification Arena - 03/10/10 09:23 PM
Ocwen is gaining a reputation as one of the most aggressive lenders when it comes to offering programs for loan modification under the Home Affordable Modification Program (HAMP).
Ocwen’s rate of converting trial modifications to permanent ones is 10 to 20 times higher than other lenders, and the new loans are more sustainable than those devised by the competition. Ocwen’s HAMP re-default rate is under 5%, while the industry average is 19 to 34%.
Ocwen’s president, Ronald M. Faris, has testified to Congress that principal write downs should be a part of the HAMP process. He also recommends that under performing … (2 comments)

mortgage: HUD Unveils a Loan Modification Scam Reporting Site - 03/09/10 09:02 AM
HUD has a new website, Preventloanscams.org, to build a data base of shady loan modification practices and reported scams. The database will allow non-profit agencies trying to help homeowners to identify problems across regional lines. In the past HUD could not share such data with non-profits.
The database was planned and created by HUD in partnership with the Loan Modification Scam Prevention Network and the Lawyers’ Committee for Civil Rights Under Law.
Homeowners who believe they have been victimized can fill out a complaint online.
 
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA  22208
703-538-2566
davidrose@mris.com
www.HighlandAgents.com

… (0 comments)

mortgage: Mortgage Verification Process Proposed - 02/19/10 07:22 AM
Congressman Kenny Marchant (R-Texas) has introduced an electronic verification process requirement for those seeing loan modifications and refinancing through FHA, Fannie Mae and Freddie Mac.
Marchant points out that studies have shown that much of the mortgage fraud that left unqualified people in homes they could not afford involved undocumented workers who received assistance in providing false employment and income documents by mortgage brokers anxious to close deals between 1995 and 2005.
On his website Marchant sites a Nevada case where a mortgage broker falsified documents for illegal aliens in 233 cases and 58 of these loans have since gone into … (2 comments)

mortgage: CRITICAL UPDATE- HUD Rules Might Eliminate ALL Seller Financing - 02/13/10 09:23 PM
There is news spreading around the last couple days of new HUD rules that could eliminate ALL seller financing unless the seller lives in the home or is a licensed loan originator.
You can check out the proposed rules at http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a6b033
Now, as with all laws, this one is supposed to be clear and narrowly focused. However, as is typical, there are multiple interpretations of the new rules. Some people are screaming and running for the hills, while others believe that they will be unaffected.
The deadline for comment on the new rules is February 16, 2010, so there is still … (2 comments)

mortgage: Refinancing Hits a High Note - 02/11/10 08:54 PM
Homeowners are clearly worried about the possibility of higher interest rates later this year and are asking for refinancing at increasing rates. The Mortgage Banker's Association reported a jump the last week in January to a 6 week high for new and refinanced loan requests. The MBA mortgage index jumped 21% the last week of January, with a 26.3% jump in demand for refinancing and a home purchase loan application increase of 10.3%. People are still trying to take advantage of 30 year fixed interest rates that hover around 5% and that are expected to rise again soon.
The housing affordability … (0 comments)

mortgage: Home Delinquency Rates Exceed 10% - 02/11/10 02:56 AM
The Lender Processing Services (LPS) reports that home loan delinquency rates in the U.S. have now exceeded 10%. This means that for every 10 households nationwide, one has a loan at least 30 days late. Picture it this way: there's a late payment in at least two households on every block in the country!
Taken together with existing pre-foreclosures 13.3% of all mortgages are either delinquent or in default. This rate translates into over 7.2 million mortgages that are behind on payments, and another 1 million properties have already been taken back by Lenders.
The new serious delinquencies (90 days or … (1 comments)

mortgage: New GFE: Not all costs on the GFE are locked in! - 01/30/10 09:50 PM
Finding your way through the new GFE almost requires a detective to help identify the twists and turns, what can change and, which fees are set in stone, unless, of course, it falls under one the exceptions..... As most of you already know, the new rules require mortgage originators to lump the origination costs - including the interest rate and underwriting fees - under one bundled fee on the GFE; once lenders receive GFE's from mortgage brokers, they have to accept the charges.
However, not all costs on the GFE are locked in; charges affected by "changed circumstance" can be modified … (4 comments)

mortgage: Treasury Dept Announces Home Affordable Foreclosures Alternative Program - 01/23/10 11:02 PM
On April 5, 2010, a new Treasury Dept program entitles - Home Affordable Foreclosure Alternatives Program (HAFA) goes into effect. HAFA is part of the Home Affordable Modification Program (HAMP).
It provides incentives in connection with a short sale or a deed-in-lieu of foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac. It is a complex program with 43 pages of guidelines and forms, designed to "simplify" and streamline use of short sales and deeds-in-lieu of foreclosures.
Highlights of the HAFA:
Complements HAMP by providing … (0 comments)

mortgage: FHA to Lift Mortgage Insurance Fees - 01/20/10 09:42 PM
The Federal Housing Administration will announce more-stringent lending requirements and higher borrower fees on Wednesday to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency.
The FHA, which has taken on a major role in the housing market during the economic downturn, doesn't lend money to home buyers, but insures lenders against default on loans that meet FHA criteria. In exchange for that backing, borrowers who take out FHA-backed loans must pay an upfront insurance premium, currently set at 1.75% of the total loan amount. The premium can be rolled into the loan.
The … (3 comments)

mortgage: Despite new mortgage cost disclosure rules, problems still exist - 01/18/10 09:07 AM
New disclosure regulations have gone into effect and, I'm not clear the problem has been solved. Having been in the business for 22 years, I have had lots of opportunities to work with some really great loan officers who were fully knowledgeable about their products and associated fees. Like there are some less than capable Realtors, there are also some loan officers who deliberately or inadvertently understate the projected closing fees.
As I understand, the new regulations are not particularly helpful in many different situations unless there is actually a contract in place for a specific property. It appears that loan … (0 comments)

mortgage: Who Will Provide Mortgage Relief for American Veterans Wounded in Iraq and Afghanistan? - 04/23/09 10:57 AM
Clearly, everyone who has trouble making mortgage payments does not deserve a bail-out. But figuring out who does is proving to be tricky. So while the Obama administration scrambles to check the surge of middle-class foreclosures, many Americans will continue to complain that not enough is being done, that they have been left out. There is one community; however, that DOES deserve help, in a big way and soon – current era veterans who suffer from life-altering injuries connected to their military service. If the U.S. government fails to address their housing problems the heavy burden will bring down more of … (0 comments)

mortgage: VA Loans – Ugh & Arrghh! - 10/06/06 09:54 AM
I hate VA loans, except when higher income debt ratios are needed or when the purchaser has credit issues that make getting approved conventionally less likely.
Can anyone out there give me better reasons to encourage a purchaser to use his VA eligibility for the 1st or even worse, the 2nd time? 
For folks that haven’t had the experience of being in the middle of a VA deal, here are a few things to keep in mind:
If you have a purchaser with a lot of debt, but they are insisting they will buy a home with or without you, I … (7 comments)

mortgage: A Fixed-Rate Solution to Equity Line Uncertainty - 09/22/06 10:05 PM
There was an interesting article in the Post today about options for reducing payments and making home equity line payoff more predictable. With the slowly, but steadily increasing interest rates, particularly for home equity loans, some folks are getting nervous about payemts on $70,000 to $100,000 and more lines of credit. There is a shorter-term solution than letting the payments drag out until you either pay it off or sell the property - with most banks and many mortgage companies, you can convert the equity line in whole or in part, to a fixed rate mortgage for an agreed upon priod … (2 comments)

mortgage: Qualifying for a Reverse Mortgage - 09/17/06 09:41 PM
An elderly past client of mine has a life estate on her home. After she dies, the property will go to her son. She wanted to take out a reverse mortgage to help with expenses. Can she do it? No. To obtain a senior citizen reverse mortgage, the homeowner must be 62 or older (which she is) and hold fee-simple absolute title. A life estate does not qualify. … (0 comments)