|
FHA Extends Credit to Purchase
Investor's Business Daily (06/01/09) P. A2
The U.S. government has agreed to "monetize" its new tax credit for first-time home buyers so that it can be put toward actual purchase costs. To qualify, borrowers must have an FHA-insured loan and contribute a minimum down payment of 3.5 percent. HUD Secretary Shaun Donovan said that by allowing home buyers to use the tax credit for their purchase, the housing market can be stabilized more quickly.
(More)
|
Credit Unions in Alliance See Mortgage Volume Rise
Washington Business Journal (06/01/09) Switzky, Bryant Ruiz
Residential mortgage lending volume has rocketed 242 percent in the first quarter from a year ago for credit unions participating in a mortgage alliance between Fannie Mae and the National Association of Federal Credit Unions. More consumers are looking to refinance into lower mortgage rates, and the alliance allows credit unions to sell mortgages directly to Fannie Mae in order to obtain money to meet the demand.
(More)
|
Genworth Helping Clients Stave Off Foreclosure
Richmond Times-Dispatch (VA) (06/01/09) Morley, P. Kevin
Genworth Financial Inc. has stepped up its efforts to help people avoid foreclosure, having arranged more than 15,400 "workouts" nationwide during the year ended March 31. That is a 66.7-percent increase from the year before. For the Virginia-based mortgage insurer, these workouts make sense in that they have prevented foreclosure on more than $2 billion of mortgage debt.
(More)
|
Why Some Say Brokerage Model Still Can Rebound
American Banker (06/01/09) P. 9; Finkelstein, Brad
Although the economic downturn and mortgage crisis have reduced loan brokers' share of the business, experts believe they have a future -- but they may have to alter their business models. Fannie Mae and Freddie Mac's Home Valuation Code of Conduct, possible reform of the Real Estate Settlement Procedures Act, a move to prohibit yield-spread premiums and a decrease in available warehouse credit all pose challenges; but experts say brokers able to arrange FHA and VA loans will survive. In response, brokers increasingly are considering mergers with retail mortgage chains, joining net branch outfits or forming other joint ventures; and some brokers are taking steps to become mortgage bankers.
(More)
|
Fed Mortgage Efforts Prove Costly
Wall Street Journal (06/01/09) P. C3; Rappaport, Liz
Since fall 2008, the Federal Reserve has purchased more than $480 billion in mortgage-backed securities and more than $130 billion in Treasury bonds in an effort to hold down mortgage rates; but with the 30-year fixed rate rising above 5 percent in the most recent week, experts say the central bank's purchase program has had a limited impact. A J.P. Morgan Chase & Co. analysis of the Fed's portfolio shows it is approximately 10 percent underwater and would suffer a $5 billion loss if these investments were marked to market. Although the Fed's per-borrower cost is about $2,500, according to the report, its purchases have assisted 2 million borrowers in refinancing who otherwise could not have.
(More)
|
Mortgage Delinquencies Increase Again
Wall Street Journal (06/01/09) Kingsbury, Kevin>
TransUnion.com reports that the number of borrowers at least two months behind on their mortgage payments increased for the ninth consecutive quarter, to 5.22 percent. The first-quarter U.S. average is 14 percent higher than the fourth-quarter average and 62 percent higher than during the same period a year earlier. Furthermore, TransUnion.com reports that the quarterly delinquency-growth rate is almost twice that seen during 2001's recession. Geographically, delinquency rates were highest in Nevada and Florida and lowest in North Dakota.
(More)
|
Consumers Invited to Comment on FTC Rulemaking on Deceptive Mortgages
Ecommerce Journal (06/01/09)
The Federal Trade Commission is considering a rule that would create standards for the practices of companies providing foreclosure rescue and loan modification services. The public has until July 15 to comment on the Mortgage Assistance Relief Services rulemaking -- which would restrict or prohibit firms from seeking advance fees for services, in an attempt to protect homeowners from unscrupulous businesses. The FTC also is giving the public until July 30 to comment on the Mortgage Acts and Practices rulemaking, as it seeks to determine whether rules are needed to protect consumers from practices throughout the life cycle of a home loan.
(More)
|