The Real Estate Hotwire

Last Post

2010-01-21T09:26:00.000-08:00

After 12+ years in the Real Estate industry, it is time for me to move on to new opportunities.

It has been a real pleasure and there are many people whom I will miss very dearly.

Working at Corinthian Title has been a wonderful experience and were I ever to return to the industry, Corinthian would be my first choice. They are a no-nonsense family-friendly company staffed with extraordinary people and I will miss the hard-working, fun-loving atmosphere.

I would encourage anyone who is in need of title and escrow services to contact Sherrie Suanico at sherrie.suanico@corinthiantitle.com or 619-299-4800 x1008.

While I am sad to leave Corinthian, I am excited about new opportunities and wish you all a happy and prosperous 2010!

For those who are interested, my personal blog can be found at www.TheDawgRun.blogspot.com .

Blessings,

Matt Linden

FHA Cracks Down on Dubious Lenders

2010-01-13T09:28:00.000-08:00

The Federal Housing Administration served subpoenas Tuesday on 15 mortgage companies with high default rates for FHA-backed loans.

The agency has previously taken action against several lenders with questionable records, including Lend America and Taylor, Bean & Whitaker Mortgage Co.

Department of Housing and Urban Development's Inspector General, Kenneth Donohue said he plans to determine why these 15 lenders had so many loans that defaulted shortly after they closed.

LINK HERE

Mortgage Rates Mostly Fall This Week; 30-Year Fixed at 5.09%

2010-01-08T08:31:00.000-08:00

Mortgage rates declined this week after a month of gains, with the average rate on 30-year fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's weekly survey of mortgage rates.

LINK HERE

Rep. Frank Argues for Cramdown Legislation

2010-01-06T09:26:00.000-08:00

U.S. Rep. Barney Frank, chair of the House Financial Services Committee told CNBC Tuesday that making loan modifications mandatory for banks is nearly impossible to do fairly.

“What do you then say to the individual who says, ‘Wait a minute, we’re equally circumstanced. I’ve got the same mortgage she’s got. I’ve been more prudent. I’m not in distress; she is. Why does she get the reduction?’” he said.

LINK HERE

Buyer Tax Credit Could Be Renewed Again

2009-12-29T11:11:00.000-08:00

Will the housing tax credit be extended again – past the current April 30 deadline?

Sen. Johnny Isakson, a Georgia Republican and former real estate practitioner, swore in October that there would be no more extensions, but some observers predict that the answer is yes.

LINK HERE

Mortgage Rates Rises, 30-Year Near 5%

2009-12-28T09:49:00.000-08:00

Mortgage rates rose this week, with the average rate on 30-year fixed-rate mortgages climbing closer to 5%, according to Freddie Mac's weekly survey of mortgage rates.

Frank Nothaft, Freddie's chief economist, noted rates followed yields on Treasurys, which have risen in recent days on a litany of political and economic news. He added that the 30-year rate has been below 5% for nearly two months, which has contributed to a wave of refinancing activity.

LINK HERE

Mortgage Rates Rise for First Time in Five Weeks

2009-12-11T09:00:00.001-08:00

After five weeks of declines, rates on most mortgages moved higher this week, following long-term bond yields that rose after an upbeat employment report, Freddie Mac's chief economist said Thursday.

LINK HERE

Freddie: 30-Year Mortgage Rate At 38-Year Low

2009-12-04T08:06:00.000-08:00

Mortgage rates generally fell again this week, with the average rate on 30-year fixed-rate mortgages reaching the lowest level in at least 38 years, according to Freddie Mac's weekly survey.

"Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time low while the average rate on five-year (adjustable-rate mortgages) hovered near its record set in the previous week," Frank Nothaft, Freddie's chief economist, said Thursday.

LINK HERE

Mortgages Tie Record Low of 4.78%

2009-11-30T05:59:00.001-08:00

Rates on 30-year fixed-rate home mortgages averaged 4.78% this week, matching an all-time low in Freddie Mac's weekly survey of conforming mortgage rates, released Wednesday.

LINK HERE

Housing Recovery Stumbles A Bit

2009-11-24T10:39:00.000-08:00

Recent talk of a recovery in housing prices appears premature. Prices as a whole recorded an 8.9% drop in the third quarter, compared to a year earlier -- a big improvement from the 15% and 19% drops in the prior five quarters, according to the S&P/Case-Shiller Home Price Index, the leading measure of U.S. home prices. But the drop for the closely watched 20-city index, 9.4%, was worse than expected.

LINK HERE

One in Four Borrowers Is Underwater

2009-11-24T08:25:00.000-08:00

The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

LINK HERE

More Homeowners Fall Behind on Mortgages

2009-11-23T08:17:00.000-08:00

About one in seven American households with mortgages is behind on payments or in foreclosure, according to new data from the Mortgage Bankers Association. That is up from about one in 10 a year ago.

LINK HERE

15-Year Rate Hits Record Low

2009-11-20T10:24:00.001-08:00

The average rate for 15-year mortgages reached a new bottom this week, dipping from 4.40 percent to 4.32 percent—the lowest level since Freddie Mac began tracking rates in 1991.

LINK HERE

Delinquent Mortgages Reach Record Levels

2009-11-20T10:22:00.000-08:00

Almost 10 percent of all mortgages on one- to four-unit properties are in some stage of foreclosure, up from 2.65 percent a year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association’s National Delinquency Survey released Thursday.

LINK HERE

Mortgages Decline to Lowest Rates in Five Weeks

2009-11-19T07:30:00.000-08:00

Home-mortgage rates fell this week, with long-term mortgage rates hitting their lowest levels in five weeks, Freddie Mac reported Thursday.

LINK HERE

The Lowdown on Home-Buyer Tax Credits

2009-11-12T09:17:00.000-08:00

Last week, President Barack Obama signed a law that extends through next spring a temporary tax credit of up to $8,000 for some first-time home buyers, which was due to expire Nov. 30. The law also adds a new tax credit of up to $6,500 for certain repeat home buyers. The package, which the government estimates will cost a total of $11 billion, is intended to help spur housing sales, a critical part of the economy.

Here are some answers to common questions about the new rules.

LINK HERE

Mortgage Rate Falls Below 5%

2009-11-06T08:45:00.000-08:00

Home-mortgage rates fell this week, with the average rate on 30-year fixed-rate mortgages retreating back below the psychologically significant 5% level, according to Freddie Mac's weekly survey of mortgage rates.

LINK HERE

Senate Approves Tax Credit Extension, Expansion

2009-11-05T10:34:00.000-08:00

The Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.

LINK HERE

Senate Passes Extension Tax Credit for First-Time Homebuyers

2009-10-29T15:01:00.000-07:00

Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. So if you want to still purchase a home, you will receive that credit. The tax credit provides up to $8,000 to first-time homebuyers. This tax credit was set to expire at the end of November.

LINK HERE

Tax Credit Extension Seems Likely

2009-10-27T10:09:00.000-07:00

It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.

LINK HERE

Long-Term Mortgages Near Record Low

2009-10-09T10:15:00.000-07:00

Thirty-year, fixed-rate mortgages moved closer to the all-time low of 4.82 percent reached in May, falling to 4.87 percent this week from 4.94 percent a week ago, according to Freddie Mac.

LINK HERE

Banks Making Short Sales Tougher

2009-10-09T10:14:00.000-07:00

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic.

LINK HERE

One-Third of Home Mortgage Applicants Denied

2009-10-01T13:33:00.000-07:00

Nearly one third of people who applied for a mortgage last year were denied, the Federal Reserve reported Wednesday.

The denial rate was up 29 percent from 2006 when approvals were highest. Last year’s denial rate was twice as high for African-Americans and Hispanics as it was for whites.

LINK HERE

Banks Bite Bullet on Loans

2009-10-01T08:40:00.001-07:00

Banks and loan investors are starting to bite the bullet and lower the principal due on home mortgages for some struggling borrowers, a new report from bank regulators shows.

That's good news for some homeowners, but may portend more write-offs over the next few years for banks and other lenders now wading through hundreds of thousands of applications for loan modifications. The tradeoff for banks is that by taking the hit now they can boost their chances of being repaid.

LINK HERE

Guess Who's Ditching Their Mortgages?

2009-09-30T10:39:00.000-07:00

A study of 24 million credit files by national credit bureau Experian and consulting company Oliver Wyman has shown that home owners with high credit scores are 50 percent more likely to deliberately walk away from a mortgage than lower-scoring borrowers.

LINK HERE

Wha' Happa'?

2009-09-29T14:35:00.000-07:00

As we all slog our way through “The Great Recession” one of the recurring questions is, “What happened? How did we get here?”

Most people know the collapse started with banks making mortgage loans to risky borrowers. After that, mortgages were bundled into mortgage-backed securities which were then sold to someone or other (maybe the stock market) and then everything went bad . . . .

Well, that’s sort-of what happened – and the reason I know is because I just listened to a This American Life episode entitled “Return to the Giant Pool of Money”.

In it, they explain exactly what happened and why – interviewing sub-prime borrowers, mortgage brokers, they guys that packed mortgage-backed securities and on up the food chain.

The whole thing was fascinating and they way they put it together was captivating and entertaining.

If you are even slightly interested in “Wha’ Happa’?” I highly recommend you check it out!

$35 Billion Slated for Local Housing

2009-09-29T08:52:00.000-07:00

The Obama administration is close to committing as much as $35 billion to help beleaguered state and local housing agencies continue to provide mortgages to low- and moderate-income families, according to administration officials.

LINK HERE

Rates Hold Steady

2009-09-28T09:49:00.001-07:00

Home-mortgage rates held the line this week, remaining at three-month lows, with the average rate on 30-year, fixed-rate mortgages remaining just above 5%, according to Freddie Mac's weekly survey.

LINK HERE

Rates Steady on Mortgages

2009-09-25T09:09:00.000-07:00

Home-mortgage rates held the line this week, remaining at three-month lows, with the average rate on 30-year, fixed-rate mortgages remaining just above 5%, according to Freddie Mac's weekly survey.

LINK HERE

Talks Stall on Mortgage Program

2009-09-24T08:11:00.000-07:00

Talks have stalled between the Obama administration and U.S. banks on how to fix the only federal effort geared toward homeowners who owe much more on their mortgages than their homes are worth.

Under Hope for Homeowners, a program first launched by the Bush administration, lenders must agree to extinguish a second mortgage before borrowers who are deeply underwater can refinance into a more affordable first mortgage. As many as half of seriously delinquent borrowers have a second mortgage, such as a home-equity or down-payment loan, according to analyst estimates.

LINK HERE

Unemployed Home Owners May Get Assistance

2009-09-21T15:13:00.000-07:00

The Obama administration has opened a dialogue with major lenders, economists, and government officials over the possibility of extending a financial lifeline to home owners who no longer can afford their mortgages because of job losses.

LINK HERE

Mortgage Rate Nearer to 5%

2009-09-18T08:57:00.000-07:00

Home-mortgage rates fell again this week, remaining at three-month lows, with the average rate on 30-year, fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's weekly survey.

LINK HERE

Home Buyer Tax Credit Countdown Begins

2009-09-04T11:36:00.000-07:00

The first-time home buyers tax credit ends in 60 days. Is it possible to buy in the next two weeks and still close in time to collect it?

Some professionals say yes. “It still can be done in six weeks," says RE/MAX Town & Country associate Lynn Ayers in West Chester, Pa.

LINK HERE

Troubles For 'Prime' Borrowers Intensify

2009-09-04T08:14:00.000-07:00

The long recession and rising joblessness are taking an increasing toll on the nation's most credit-worthy borrowers, who are now falling behind on their mortgage and credit-card payments at a faster pace than people with poor financial histories.

LINK HERE

Mortgage Rates Fall, Boost Sales

2009-09-04T08:13:00.000-07:00

Interest rates on home mortgages dropped this week, with the 30-year fixed-rate mortgage averaging 5.08%, according to Freddie Mac's weekly survey of conforming mortgages.

The 30-year fixed-rate mortgage averaged 5.14% last week and 6.35% a year ago. Fifteen-year fixed-rate mortgages also dropped, averaging 4.54% for the week ending Sept. 3, down from 4.58% last week. The mortgage averaged 5.9% a year ago.

LINK HERE

Unemployment Rises Everywhere. El Centro, Calif., Hits 30.2 Percent

2009-09-01T12:27:00.000-07:00

Unemployment has kept on growing in every one of the nation's 372 metropolitan areas, the Bureau of Labor Statistics reports. Unemployment was higher in July 2009 in each metro than at this time last year.

Of the 19 metros where joblessness tops 15 percent, California lays claim to 12. God bless El Centro, Calif., which has the highest unemployment at 30.2 percent. Another five of the most miserable metros are in Michigan.

LINK HERE

Pending Home Sales on a Record Roll

2009-09-01T11:09:00.000-07:00

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7.

LINK HERE

Fewer Catching Up on Lapsed Mortgages

2009-08-31T09:34:00.000-07:00

Homeowners who fall behind on their mortgage payments have become much less likely to catch up again, a new study shows.

The report from Fitch Ratings Ltd., a credit-rating firm, focuses on a plunge in the "cure rate" for mortgages that were packaged into securities. The study excludes loans guaranteed by government-backed agencies as well as those that weren't bundled into securities. The cure rate is the portion of delinquent loans that return to current payment status each month.

LINK HERE

Commercial Real Estate Lurks as Next Potential Mortgage Crisis

2009-08-31T09:32:00.000-07:00

Federal Reserve and Treasury officials are scrambling to prevent the commercial-real-estate sector from delivering a roundhouse punch to the U.S. economy just as it struggles to get up off the mat.

Their efforts could be undermined by a surge in foreclosures of commercial property carrying mortgages that were packaged and sold by Wall Street as bonds. Similar mortgage-backed securities created out of home loans played a big role in undoing that sector and triggering the global economic recession. Now the $700 billion of commercial-mortgage-backed securities outstanding are being tested for the first time by a massive downturn, and the outcome so far hasn't been pretty.

LINK HERE

Mortgage Rates Still Near Record Lows

2009-08-28T09:59:00.000-07:00

Long-term mortgage rates remain near record lows, despite rising slightly this week. Freddie Mac reported that average interest on a 30-year fixed loan was 5.14 percent, up from 5.12 percent a week ago.

LINK HERE

Mortgage Fraud: A Classic Crime's Latest Twists

2009-08-27T08:07:00.000-07:00

In the wake of the mortgage meltdown, regulators and law-enforcement officials are sounding alarms about the potential for yet another type of mortgage fraud—this time, in the small but fast-growing reverse-mortgage market. Such fraud, though still rare, "is occurring in every region of the United States and reverse-mortgage schemes have the potential to increase substantially," according to a recent publication issued by the Federal Bureau of Investigation and the Office of Inspector General at the U.S. Department of Housing and Urban Development, which oversees the federally insured loans that account for some 99% of the reverse-mortgage market.

LINK HERE

New Home Sales Surge 9.6% in July

2009-08-27T07:53:00.000-07:00

New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month
and beating expectations as the housing market shows continuing signs of rebounding from its historic downturn.

LINK HERE

First-Time Buyer Tax Credit Extension Possible

2009-08-24T12:21:00.000-07:00

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

LINK HERE

Souring Prime Loans Compound Mortgage Woes

2009-08-24T09:07:00.000-07:00

A survey found that one in eight U.S. households with mortgages was in foreclosure or behind on its mortgage payments during the second quarter, putting added pressure on programs aimed at preventing foreclosures.

While foreclosure starts have slowed on the subprime loans that ignited the mortgage and banking crisis, loans extended to borrowers with good credit are deteriorating at a faster clip as falling home prices and mounting job losses weigh on more households.

LINK HERE

Can Vanished Real Estate Wealth Come Back?

2009-08-24T09:05:00.000-07:00

Everyone talks about house price averages. But how much actual wealth have American households lost in the real estate crash? (And what, if anything, does this mean for you and your money?)

LINK HERE

Banks Plan to Keep Lending Tight

2009-08-18T12:14:00.000-07:00

Banks tightened standards for all types of loans in the second quarter, the Federal Reserve reported Monday.

About 35 percent of senior loan officials said they tightened standards somewhat and none of the 51 responding banks said they loosened standards for prime mortgages. The rest said their standards for mortgages remained the same or were substantially stronger.

Banks also told the Fed that they expected to maintain strict lending standards until at least the second half of 2010.

LINK HERE

FHA Program Offers Purchase, Renovation Aid

2009-08-17T16:01:00.001-07:00

The Federal Housing Administration is encouraging use of its little-known 203(k) loan program.

The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.

LINK HERE

Buyers Rush to Beat Tax Credit Deadline

2009-08-17T15:59:00.000-07:00

Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30.

LINK HERE

Mortgage Rates Increase This Week

2009-08-14T11:39:00.000-07:00

Freddie Mac confirms that average interest on 30-year fixed mortgages rose this week to 5.29 percent from 5.22 percent a week earlier.

LINK HERE

Taylor Bean Suspended From Making FHA Loans

2009-08-05T08:11:00.001-07:00

The Federal Housing Administration suspended Taylor, Bean & Whitaker Mortgage Corp. from making loans insured by the federal agency, and raised questions about the company's business practices and financial disclosures.

The move, coming a day after federal investigators raided Taylor Bean headquarters in Ocala, Fla., could hamper the company's operations and deal a setback to hundreds of mortgage brokers and community banks that originate loans through Taylor Bean.

LINK HERE

FHA Program to Help Struggling Home Owners

2009-07-31T12:45:00.000-07:00

The newly enhanced FHA Making Home Affordable Loan Modification Program will help struggling home owners—who qualify—to significantly reduce their monthly mortgage payments and stay in their homes, said NAR President Charles McMillan in a public statement.

The changes expand the Obama administration's Making Home Affordable Loan Modification Program to include FHA borrowers. NAR is optimistic that this will have positive implications for thousands of home owners, McMillan said.

LINK HERE

Graph: Home Foreclosures vs Loan Modifications

2009-07-29T10:07:00.001-07:00

ARTICLE HERE

Jeepers

2009-07-27T11:57:00.001-07:00

Planet money has a telling graph putting the recent rise in new home sales in perspective:

Larger Version here.

Article Here.

30-Year Mortgage Rates Rise

2009-07-24T09:41:00.000-07:00

The average rate for a 30-year fixed mortgage this week rose to 5.2 percent from 5.14 percent a week ago, Freddie Mac reports.

Industry professionals are keeping a close watch on the rate, hoping it does not climb too high and derail a recovery in the housing sector.

LINK HERE

House Extends High Limits for Federal Loans

2009-07-21T11:42:00.000-07:00

The House Appropriations Committee approved an extension of the $729,750 loan limits for Fannie Mae, Freddie Mac, and Federal Housing Administration financing in high-cost areas through September 2010.

LINK HERE

Home Lending Rates Falling Again

2009-07-17T10:20:00.000-07:00

Rates on 30-year fixed mortgages fell to 5.14 percent for the week ended July 16, down from 5.20 percent a week before and 6.26 percent a year earlier, Freddie Mac reports.

Interest on fixed home loans has fallen in four of the past five weeks, and Freddie Mac economist Frank Nothaft says rate activity during that time has lowered the monthly payment on a $200,000 loan by $56.

LINK HERE

Senate Grills Officials Over Progress on Foreclosure Prevention

2009-07-17T08:09:00.000-07:00

Senators expressed bipartisan outrage over the Obama administration's poor progress on stemming foreclosures, which continue to mount at an alarming monthly pace.

Senators, speaking at a Banking Committee hearing Thursday, were at times harshly critical as they grilled two senior officials over the tepid results of the administration's $75 billion foreclosure prevention effort.

LINK HERE

Foreclosures Increase Despite Intervention

2009-07-16T11:11:00.001-07:00

The foreclosure crisis continued to grow in the first half of 2009, affecting more than 1.5 million homes, according to a mid-year report from foreclosure listing service RealtyTrac Inc.

The report cites a 9 percent increase in total properties in foreclosure compared to the previous six months, and a nearly 15 percent increase in total properties facing foreclosure compared to the first six months of 2008.

The report also says that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.

LINK HERE

First-Time Buyers: Hurry for $8,000 Tax Credit

2009-07-15T09:55:00.001-07:00

It’s time to remind first-time home buyers that in order to qualify for the government’s $8,000 gift in the form of a tax credit, the deal must close by Dec. 1.

LINK HERE

Single-Family Home Prices Rise in May

2009-07-15T09:54:00.001-07:00

Nationwide, detached, single-family home prices gained 1.6 percent in May, according to Integrated Asset Services, a specialist in default management and residential collateral valuations.

The increase is the largest since July 2005, IAS reported. The index had previously declined more than 19 percent from its peak in June 2007.

LINK HERE

Mortgage Firms Prodded to Modify More Loans

2009-07-14T08:17:00.000-07:00

The Obama administration is pressing mortgage-servicing companies to step up their efforts to modify troubled loans under its housing-rescue program, the latest sign of frustration with the pace at which mortgage companies are reworking troubled loans.

"We believe there is a general need for servicers to devote substantially more resources to this program for it to fully succeed and achieve the objectives we all share," Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan said in a letter to 25 mortgage-servicing firms.

LINK HERE

Freddie Mac Turns to YouTube

2009-07-09T10:24:00.001-07:00

Freddie Mac has turned to YouTube to help late-paying borrowers understand how to get loan modification assistance through President Obama’s Making Home Affordable program and other workout initiatives.

LINK HERE

Foreclosures Continue to Flood Market

2009-07-09T10:22:00.000-07:00

The U.S. housing market is being flooded with foreclosed homes held by trusts managing pools of securitized mortgages.

The trusts sold six times as many properties as banks during the six months ending March 31. The average property sold for 69 percent of the original loan amount, according to data compiled primarily in the Atlanta area by Data Intelligence Corp., a real-estate analytics firm.

The dump isn’t over yet with thousands of properties still awaiting sale.

LINK HERE

No-Doc Loans Could Return

2009-07-09T10:21:00.000-07:00

Bank attitudes toward risky lending is making it very difficult for the self-employed, even those with high incomes, to secure mortgages.

No-doc loans are particularly hard to get, locking out people whose incomes are derived from investments or who are able to tax-shelter significant dollars.

LINK HERE

Congressman Proposes Home Plan to Save Jobless

2009-07-09T10:20:00.001-07:00

Refinancing a home when the borrower is unemployed is practically impossible, but U.S. Rep Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, is proposing to spend $2 billion to help.

The proposal would revive a 1975 program that lends money to the unemployed so they don’t lose their homes.

LINK HERE

Another Rash of Foreclosures Coming Soon

2009-07-06T10:41:00.000-07:00

Some economic observers are predicting another wave of foreclosures later this summer or in the fall. That’s because lenders that have held off on foreclosures as part of President Obama’s plan will now move forward aggressively to clear the backlog of troubled mortgages.

LINK HERE

Treasury Makes Refinancing More Attractive

2009-07-02T13:09:00.000-07:00

The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home’s value.

LINK HERE

Mortgage Apps Down, Again

2009-07-01T10:58:00.000-07:00

The Mortgage Bankers Association just released its weekly index of applications to buy a home or refinance a loan, and the numbers aren't good: it fell last week by 19 percent -- the biggest plummet since February. As you can see from our nifty chart, applications have fallen by over 50 percent since April. The data suggests that the Obama administration's plans to help out the housing market aren't entirely working yet.

LINK HERE

Is Mortgage Forgiveness the Answer?

2009-07-01T10:04:00.000-07:00

Some housing experts say the next logical step for helping home owners with negative equity is loan forgiveness.

Home owners with no equity stake and no likelihood of having one anytime soon are increasingly likely to walk away. Some theorize that curbing that trend is the only thing that will stabilize the market.

The nonprofit Milken Institute has devised a plan that would use Fannie Mae to refinance underwater loans with government money. Under the plan, a private lender would provide the money for the value of the home and the U.S. Treasury would issue a second, interest-only loan for the portion of the current mortgage that is underwater. Every year the home owner keeps current with payments, the Treasury would forgive a portion of the loan.

LINK HERE

Pending Home Sales Rise Again

2009-07-01T10:02:00.000-07:00

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of REALTORS®.

LINK HERE

New Programs Target Low-Income Buyers

2009-06-29T13:20:00.000-07:00

Under the federal Neighborhood Stabilization Program, many new state and local initiatives are expected to roll out in the next few weeks that will help middle- and low-income families buy foreclosed homes in hard-hit neighborhoods.

LINK HERE

Real Estate Improves in California

2009-06-27T04:26:00.000-07:00

Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.

LINK HERE

Mortgage Rates on a Roller Coaster

2009-06-27T04:24:00.000-07:00

After spiking to six-month highs a couple of weeks ago, mortgage rates fell again last week only to rise again this week.

Interest on 30-year fixed mortgages settled at an average of 5.42 percent this week, reports Freddie Mac, up from 5.38 percent in the previous week but lower than the prevailing rate of 6.45 percent a year ago.

LINK HERE

Borrowers Struggle to Get Help

2009-06-23T09:36:00.000-07:00

Getting help through the Obama administration’s mortgage-assistance program has been an impossible challenge for thousands of applicants.

Home owners who apply for mortgage modifications can expect to wait 45 to 60 days before hearing anything from their mortgage service company, according to a report from foreclosure-prevention counselor NeighborWorks America.

LINK HERE

Existing-Home Sale Continue to Rise

2009-06-23T09:34:00.000-07:00

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the NATIONAL ASSOCIATION OF REALTORS ®. May’s increase was the first back-to-back monthly gain since September 2005.

LINK HERE

Home Buyer Tax Credit Could Expand

2009-06-22T16:12:00.000-07:00

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it.

LINK HERE

Mortgages Climb Past 5.5%

2009-06-12T09:34:00.001-07:00

Home-mortgage rates took another leap this week, bringing the average rate on a 30-year fixed-rate mortgage to its highest in seven months, Freddie Mac reported Thursday.

The 30-year fixed-rate mortgage averaged 5.59% for the week ended June 11, according to Freddie Mac's weekly survey of conforming mortgage rates. That is up from 5.29% last week. The mortgage averaged 6.32% a year ago, and the rate hasn't been higher since the week ending Nov. 26, when it averaged 5.97%.

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Too Early to Call Housing Bottom

2009-06-08T15:54:00.001-07:00

Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.

A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values. It examined 330 markets and found homes are underpriced in 248 of them.

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Mortgage Rates Hit 25-Week High

2009-06-05T11:10:00.000-07:00

Mortgage rates across the board jumped this week, with conventional mortgages reaching their highest point so far this year.

Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent.

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Housing Picture Brightens in California

2009-06-03T08:40:00.001-07:00

California's median price for existing homes rose 1.4% in April from March, marking the second consecutive monthly increase in housing prices and prompting some industry officials to declare that the state's long swoon in housing values could be at or near the bottom.

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Low Mortgage Rates Are Going, Going…

2009-06-03T08:37:00.000-07:00

If you're looking for a new 30-year mortgage, last week's events from the financial markets carry a very simple message: Get 'em cheap while you still can.

Rates on conforming 30-year loans jumped dramatically in just a few days, ending the week at an average of 5.27% according to Bankrate.com. That's still OK by historic standards, but it's a jump from the levels seen just a few weeks ago, when you could get loans at 4.75% or below.

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Housing Sales Slowly Emerging From the Woods

2009-06-03T08:35:00.000-07:00

WSJ's Nick Timiraos says that there is more good news for housing as the pending home sales index has risen for the third straight month, but may not entirely be out of the woods yet.

The National Association of Realtors said its index of pending-home sales rose 6.7% in April to 90.3 from 84.6 in March. Increases in contract signings typically lead to more sales a month or two later.

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More Borrowers Default on Mortgages

2009-06-02T04:27:00.001-07:00

The number of borrowers who were at least two months behind on their mortgages reached 5.22 percent, rising compared to the previous quarter for the ninth quarter in a row, according to credit analyst TransUnion.

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As Rates Rise, Fed Holds Steady

2009-06-02T04:25:00.000-07:00

Yields on U.S. Treasury bonds rose in March and April and yields on mortgage-backed securities continue to increase, pushing 30-year fixed home loans up to 5.44 percent—the highest rate for mortgages since early February.

The Federal Reserve is buying Treasurys and mortgage-backed securities (MBS) in an attempt to keep borrowing costs low and to provide the financial system with money for lending.

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Housing Prices Pick Up in California

2009-05-29T10:10:00.001-07:00

As the biggest residential property market in the United States, California often serves as a bellwether for the nation's economic health. And new research from that state suggests that housing prices nationally could start to rebound relatively soon.

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Mortgage Rates Continue to Fall

2009-05-22T11:40:00.000-07:00

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.

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Activist Financier 'Terrorizes' Bankers in Foreclosure Fight

2009-05-21T16:33:00.000-07:00

Bruce Marks doesn't bother being diplomatic. A campaigner on behalf of homeowners facing foreclosure, he was on the phone one day in March to a loan executive at Bank of America Corp.

"I'm tired of borrowers being screwed!" Mr. Marks yelled into the phone. "You're incompetent!" Before hanging up, he threatened to call bank CEO Kenneth Lewis at home to complain about the loan executive.

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Home Affordability Hits 18-Year High

2009-05-21T16:29:00.000-07:00

Housing affordability is reaching record levels with nearly 73 percent of all homes sold in the first three months of 2009 considered affordable.

That’s the highest percentage ever reported by the 18-year-old, quarterly Housing Opportunity Index, compiled by the National Association of Home Builders and Wells Fargo Bank.

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Rates Below 5% for Ninth Week Straight

2009-05-15T11:41:00.001-07:00

Freddie Mac reports a slight rise this week in the 30-year fixed mortgage rate to 4.86 percent from 4.84 percent in the previous week.

Rates have been below 5 percent for nine weeks in a row. Last year at this time, the average 30-year rate was 6.01 percent.

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Homes May Be Undervalued Today

2009-05-15T11:39:00.000-07:00

After dropping for two years, home prices appear to be bottoming out, and any further declines would be an overcorrection, NAR Chief Economist Lawrence Yun told thousands of practitioners at the REALTORS® Midyear Legislative Meetings in Washington, D.C., on Thursday.

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Foreclosures Set Blistering Pace in April

2009-05-15T08:23:00.001-07:00

Foreclosures continued to accelerate with April, exceeding even the record pace in March. More than 342,000 homes received foreclosure notices—that's one of every 374 U.S. homes, marking the highest monthly rate since online foreclosure marketer RealtyTrac began counting four years ago.

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U.S. Median House Price Declines 14%

2009-05-13T09:22:00.000-07:00

The median price for a single-family house fell 14% to $169,000 in the first quarter from a year earlier, the National Association of Realtors reported.

The trade group said first-time home buyers accounted for half of all purchases in the quarter, and many of them zeroed in on foreclosed homes. That dragged down the median, the Realtors said.

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Tax Credit Can Be Used for Down Payment

2009-05-12T13:22:00.000-07:00

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

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House-Price Drops Leave More Underwater

2009-05-07T07:05:00.001-07:00

The downturn in home prices has left about 20% of U.S. homeowners owing more on a mortgage than their homes are worth, according to one new study, signaling additional challenges to the Obama administration's efforts to stabilize the housing market.

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Banker: 'What'd I Do Wrong, Officer?' Cop: 'You've Got Algae in the Pool, Sir'

2009-05-07T06:56:00.001-07:00

INDIO, Calif. -- Officials at a Citigroup Inc. office in St. Louis placed a call to this desert town recently. The bank had caught word that Indio was coming after the lending giant with fines and threats of criminal charges. The offense: an algae-infested swimming pool at 79760 Eagle Bend Court.

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Senate Defeats Mortgage Cramdown Bill

2009-05-01T12:22:00.001-07:00

The proposed law allowing bankruptcy judges to modify mortgages, known as the cramdown bill, was voted down Thursday by the U.S. Senate.

The financial industry opposed the bill, arguing that the change would drive up interest rates and make the market less stable. Some senators also were concerned that their constituents who pay their bills on time would resent this measure.

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Loan-Modification Plan Revised to Address Second Mortgages

2009-04-30T10:18:00.000-07:00

The Obama administration on Tuesday laid out new guidelines for its foreclosure-prevention program that aim to address one key stumbling block to its efforts to stabilize the housing market: how to deal with borrowers who have home-equity loans and other second mortgages.

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More Homes in California Are Selling

2009-04-29T15:26:00.000-07:00

California's housing-market slump showed hints of improvement in March, with sales of existing single-family homes increasing 64% from the prior-year period and median home prices rising month-to-month for the first time since August 2007, according to a trade group report.

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Cramdown Bill Faces Senate Opposition

2009-04-28T16:46:00.001-07:00

The bill that would let judges modify the mortgages of home owners in bankruptcy, known as cramdown, is facing still more troubles as it moves to the U.S. Senate.

"I hope we can muster the courage and find the votes, although I know it will be hard," says Senate Majority Whip Richard J. Durbin, an Illinois Democrat. "It's hard to imagine that today the mortgage bankers would have clout in this chamber, but they do."

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U.S. to Offer Incentives to Modify Seconds

2009-04-28T16:44:00.000-07:00

The Obama administration is announcing incentives today for mortgages servicers to modify home equity loans and other second mortgages.

Servicers must agree to modify second mortgages when the first mortgage has been modified. They must extend the term of the second mortgage and match the rate of the first mortgage. Then the government will share the cost with the servicer of cutting the rate to 1 percent for amortizing loans and 2 percent for interest-only loans.

LINK HERE