news: Fed Lowers Rates...
- 10/08/08 07:35 AM
Global Banks Unite in Unprecedented Rate Cuts Ben Bernanke and the Fed brought financial aid to the streets, lowering the Federal Funds Rate and Discount Rate by 0.50%. In an unprecedented emergency move, central banks across the globe joined in lowering interest rates. This move follows Washington's passing of the $700 billion Rescue Plan. From Wall Street to Main Street, a common concern has been heard by Washington. "We need money... no, let me rephrase that...we need cheap money." Rates Could Rise From HereHome loan rates have benefited from the weakness in the financial markets. Fixed rate mortgages remain very attractive. … (0 comments)
news: FHA Important Changes
- 09/23/08 06:59 AM
Recently Fannie Mae & Freddie Mac issued guidelines with the intent to stop buyers from conducting a "buy and bail" strategy, which applied to ALL Conventional loans. A "buy and bail" strategy is when a buyer purchases a new home using their current residence as a "rental property" to qualify for the new mortgage, with the intent of never leasing out their home and letting it go into foreclosure. Up until Thursday 9/18, FHA had not adopted any of the policies issued by Fannie Mae & Freddie Mac. But as of Friday September 19th, HUD issued new guidelines regarding these transactions … (5 comments)
news: Conventional loans with 3% downpayment
- 05/16/08 12:38 PM
Fannie Mae announced today new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97% LTV ratios for conventional, conforming mortgages processed through DU, and 95% LTV ratios for loans underwritten outside of DU, in all geographic locations in the United States. "The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over … (2 comments)
news: Fed Lowers Rates...
- 01/30/08 06:44 AM
It's Fed Day! Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve Open Market Committee (FOMC) cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words, economic data suggests a slowdown in the US economy, and the Fed is acting accordingly. Although we had some Economic Reports released this morning showing a mixed view … (2 comments)
news: Fed Lowers Rates...
- 01/22/08 04:20 AM
Those hoping for lower overnight rates got them. "The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3.5%. The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets. The Committee expects inflation to moderate in … (4 comments)
news: Bank of America & Countrywide
- 01/11/08 08:47 AM
The BofA-Countrywide rumor turned into an official press release last night (soon followed by rumors of either Chase or Citi buying WaMu). There are also rumors about, since Moody's downgraded over 30 Countrywide tranches of mortgage debt in addition to the company being near bankruptcy, that the Federal government will stand behind any Countrywide losses. ( Not a bad deal, having the government back up the deal). Certainly takes some risk out of it...... Bank of America Corp., the biggest U.S. bank by market value, agreed to buy Countrywide Financial for about $4 billion in stock, five months after making their … (4 comments)
Global Banks Unite in Unprecedented Rate Cuts
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