foreclosures: CNBC's Larry Kudlow hints at housing recovering
- 07/25/08 06:30 AM
Larry Kudlow is joining fellow CNBC personality Jim Carmer in discussing housing very favorably this week. Cramer stated that it was now time to buy a house and Kudlow is taking mainstream media to task for remaining pessimistic while there is strong data to support the slowdown's end is near if not already over. Kudlow's points to support a housing recovery: Median prices nationwide have climbed 10 percent since February. June'08s numbers were down six percent compared to June 07 - but have risen four months in a row when comparing month over month rather than year over year. Homes sold in the … (3 comments)
foreclosures: CNBC's Jim Cramer Says "Buy A House - NOW!!!"
- 07/23/08 03:25 PM
Let's face it, CNBC can be pretty boring for most folks. But interesting personalities like Jim Cramer take the relatively mundane topic like stock performance and economic conditions, mix it with an exciting "ESPN SportsCenter-esque" format and it is tolerable. And it works, Cramer has tons of followers - almost a cult like following. So Cramer's Mad Money show has a pretty big influence. Today he stated "I was the first guy that said torch your house for the insurance money (8 months ago). I am now telling you that between now and the next six months you have to buy … (20 comments)
foreclosures: Brave New World
- 07/14/08 01:42 AM
Here we are on the dawn of the first trading day following IndyMac's collapse and the Federal Government's prop up of Fannie Mae and Freddie Mac and I must say that I'm not sure how the market will react. First, Fannie and Freddie have always had the implied backing of the Federal Government. And while they still say that don't need it, the Fed has made unprecidended statements about these GSE's access to fund through the Fed. Our founding fathers were wise - checks and balances work. And when Fannie and Freddie were created, the check and balance always was that the Government … (3 comments)
foreclosures: Loan Officer Compensation Hurts Lenders
- 07/01/08 07:14 AM
The State of Florida is suing Countrywide for misreprenting loan programs and aggressively approving subprime borrowers. "It is unthinkable that a company would try to take advantage of someone's dream of homeownership," Florida Attorney General Bill McCollum said in a statement. I was taught in Journalism School to follow the money. If something stinks, follow the money and you'll probably find the source of the smell. Human beings originate loans and those humans can have ethics and morals below were we'd hope them to be. It sounds like CW management pushed deals that shouldn't be done. Again, humans making mistakes. But … (8 comments)
foreclosures: CNBC Reporting 33% of Existing Sales "Distressed"
- 06/26/08 09:39 AM
Diane (I've Never Seen Any Good News in the Market) Olnick is reporting that sales nationwide are holding at just under 5 million homes in May which is good, but that 33% of the homes selling are those either in foreclosure or approaching foreclosure. She quotes "the Realtors" as saying 33% are distressed. Is that the National Association of REALTORS or a pity party of former Realtors hanging out at Starbucks? I was a Journalism Major - I was taught that if you can't clearly state your source, then you'd better think twice about publishing the story. Who is the source … (0 comments)
foreclosures: Why FHA is the Right Choice Today
- 06/25/08 04:07 AM
With Mortgage Backed Securities (MBS) markets in turmoil for about a year now, the new emphasis for loans with a higher Loan to Value than 90%. Why is this? The answer lies with Ginnie Mae (GNMA) - Fannie Mae and Freddie Mac's cousin specializing on Government loans - and the way their loans are insured. Fannie and Freddie don't guarantee payments on home loans, but the FHA does. Does the FHA guarantee the servicer payments and also the payments on underlying collateral? FHA guarantees for a fee (known as MIP) to the GNMA MBS security issuer that the borrower will make … (2 comments)
foreclosures: Updates on Rates
- 06/20/08 02:58 AM
The market is still commanding a premium on Mortgage Backed Securities relative to 4 weeks ago - the talk of inflation has investors on the sideline forcing rates up. However, this morning we are enjoying the lowest rate of the last 2 weeks. We aren't back to the mid-5's but it looks like we're getting some relief for a bit. Remember, the rates ALWAYS got up quicker than they go down. Give me a call for a quote on your scenario and lock in the relief we are seeing. … (0 comments)
foreclosures: Increased Incentives Carry Challenges
- 06/20/08 02:37 AM
Today the Tennessean is reporting about the increased and unusual incentives being offered by sellers. (see the link below) One builder is offering a car or a trip or a year's tuition to Vanderbilt. Sounds great! But buyers need to be aware that such incentives will likely reduce the amount that a lender can lend off of, essentially voiding the incentive. For example: Sales Price: $350,000 Incentive: $10,000 Sale Price Lender will use: $340,000* *This number is then the starting point for all lending factors - ie, 80% LTV, appraisal, ect 80% LTV = $272,000 Borrower would bring $78,000 to closing … (3 comments)
foreclosures: FHA Loans - Mortgage Insurance Changes
- 06/18/08 03:15 AM
Changes to FHA Mortgage Insurance are right around the corner. Please get your clients to application BEFORE July 14th in order to enjoy the current 1.5% Upfront Premium and .5% Monthly for all borrowers. After July 14th, FHA will istitute a risked based Mortgage Insurance schedule - outlined below. Please note - the FHA case number must be assigned by July 14th. It would be wise to get to application a day or two earlier to make sure the number is assigned by the 14th. Also note, case numbers are specific to the borrower AND the property address. If the inspection … (1 comments)
foreclosures: The Real Numbers on Foreclosures
- 06/13/08 02:08 AM
To say that I'm tired of the media's constant negative coverage of the Real Estate Market is an understatement. As a former journalist, I'm disgusted by the coverage. Case in point is today's numbers from RealyTrac (a firm that makes money by helping people location foreclosures - not exactly an impartial source) showing that foreclosures jumped 48% in May. OK, a 48% increase is pretty significant increase but the percentage doesn't tell the entire story. To try to be more compelling (remeber, they are selling memberships to their site) the story also also goes on to state that 1 in every 483 homes … (4 comments)
Larry Kudlow is joining fellow CNBC personality Jim Carmer in discussing housing very favorably this week. Cramer stated that it was now time to buy a house and Kudlow is taking mainstream media to task for remaining pessimistic while there is strong data to support the slowdown's end is near if not already over. 
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