A Change in Approach Could Ease Housing Crisis

The United States is on track to experience a record number of foreclosures this year and could break another record in 2011, says columnist Ezra Klein, who lists four ideas housing industry experts are weighing as they attempt to jump-start a struggling market.

One is to revamp the Home Affordable Modification Program (HAMP) to empower housing counselors to modify mortgages using a standard formula, rather than leaving this task to the banks.

Second, banks could be given an incentive to participate in HAMP by empowering bankruptcy judges to modify the principal on mortgages.

Third, experts say that making mediation programs a mandatory requirement will give banks an opportunity to meet with every distressed home owner, look through the papers, consider the nuances of the situation, and make a good-faith effort to work out an arrangement.

And fourth, right-to-rent programs could be expanded for foreclosed home owners — like the one operated by Fannie Mae, which lets home owners rent their homes at fair-market value for five years.

Source: Washington Post, Ezra Klein (10/15/10) 

© Copyright 2010 Information Inc.
 

Government Struggles to Keep Interest Rates Low

Mortgage rates are rising, despite the government’s efforts to hold them down.

 

The government can’t control all the factors that affect mortgage rates. Mortgage interest has climbed because more borrowers refinanced when rates fell and boosted the supply of mortgage bonds.

 

Experts also attribute rising rates to expanded borrowing by the government to pay for stimulus packages, worries about Fannie Mae and Freddie Mac, and concerns about whether the central bank will continue to purchase mortgage bonds after June.The suggestion that the government solve the problem by creating an entity that offers 30-year mortgages at preset rates of 4 percent or 4.5 percent has drawn criticism.

 

“Not a lot of buyers are likely to want to buy a 3.5 percent mortgage-backed security, so the government may end up being a significant holder of these loans,” said Nicholas Strand, a mortgage strategist with Barclays Capital.  “And that number could run up to trillions of dollars.”

 

Source: The Wall Street Journal, Prabha Nataraian (02/03/2009)

Fannie/Freddie-Ban on Foreclosures!!

Freddie Mac and Fannie Mae Announce Ban on Foreclosures Until Jan. 2009

Mortgage finance giants Fannie Mae and Freddie Mac revealed Thursday afternoon they will work to keep Americans in their homes, announcing a suspension on foreclosures starting Nov. 26, 2008 until Jan. 9, 2009.

The two companies said no evictions will take place during that time period.

Furthermore, they instructed loan servicers and attorneys working for them to suspend foreclosure sales of single-family homes.

The release on Fannie Mae’s website said, “The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes.”

The release from Freddie Mac had a similar reasoning: “The temporary suspension is also expected to give servicers more time to help borrowers avoid foreclosure.”

By Megan Ainscow and edited by Sarah Sussman

* This seems like a very short period of time for them to actually be effective. Seems like a bit of holiday relief -I guess they do have a conscience..however those facing foreclosure- we NEED to do all we can in this time to stop it, readjust mortgage plan, or fight for a short sale approval.

Home Prices Fall to 2005 Levels

U.S. home prices fell 5.5 percent in July compared with the same month a year ago and are about equal to where they were in Oct. 2005, according to the Federal Housing Finance Agency.

Prices were down 0.6 percent from June on a seasonally adjusted basis, according to the agency.

James Lockhart, director of the agency, urged Fannie Mae and Freddie Mac to loosen lending standards to encourage more sales.

“I expect any changes to reflect both safe and sound business strategy and attentiveness to the (companies’) mission,” Lockhart said Tuesday in testimony prepared for a Senate Banking Committee hearing. He also said that modifying loans for troubled borrowers should be a “high priority.”

But some observers think availability of mortgages is only part of the problem. “The crash of other financial assets has made folks rather uncomfortable,” said Keith Gumbinger, a senior vice president with HSH Associates financial publisher. “It’s not about keeping Fannie and Freddie afloat any more.”

Source: The Associated Press, Alan Zibel (09/23

Why This Autumn is a Great Time to Buy

This fall could be a particularly great time for first-time or buyers long out of the market to jump in, say a variety of real estate professionals.

Here are the reasons why:

  • Interest rates are likely to decline as Freddie and Fannie get government help.
  • The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back come Jan. 1, when the loan limit will shrink to $625,500.

The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.

  • The tax credit will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax, will get the money as a refund.

The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.

Source: The Washington Post, Elizabeth Razzi

Mortgage Lenders

Renovation Mortgage Plus

Mario E. Boles/ Diego Hodge

FHA/203K/Fannie Mae (Homestyle)/Freddie Mac (Renovation Mortgage)

2475 Northwinds Parkway, suite 200

Alpharetta, GA 30009

Office: 770-753-6239 

mario.boles@renovationmp.com

diego.hodge@renovationmp.com

*Vonda Henry, Loan Officer (West End Resident)

Advertent Mortgage 

 404-374-3557 

*Bank of America Mortgage

Darren Smith

Mortgage Loan Officer

Assistant Vice President

6075 Roswell Rd

Atlanta, GA. 30328

 404-256-6326  Phone

 866-517-8923  Right Fax

404-358-6883 Cell

 

*Sam Thompsonread my blog:  http://samthompson.thewrittenblog.com

Home Mortgage Consultant

Home Services Lending, LLC

An Affiliate Of Wells Fargo Home Mortgage

MAC M2046-030

3391 Town Point Drive, Ste 325

Kennesaw,  GA  30144

(678) 355-0785 Tel

(770) 301-0527 Cell

1-866-737-9015 E-Fax

sam.thompson@hsl-ga.com

 

web address to apply on-line:

www.homeloans.com/sam-thompson

 

 

*Jayson Duff (can also do FHA loans for 550- 580 credit score!)

Mortgage Banker- REMN, Inc.

500 Town Park Lane Suite 145

Kennesaw, GA. 30144

Office:  770-373-5410 

Cell:  678-360-1969 

jduff@remn.com

www.remn.com

www.jaysonduff.com

 
*Countrywide Bank, FSB

Brian Rains

Home Loan Consultant
4531 Olde Perimeter Way, Suite 200
Atlanta, GA 30346
Cell:   (404) 964-4803

Email: Brian_Rains@Countrywide.com