The lending criteria for residential investment property (1-4 units) have tightened up and rates are relatively high. Prequal of both the borrower and the property is recommended! /// Few lenders are still prepared to advance loans for investments in residential property (1-4 units) in a company name by the way. And those that do - you've guessed it - charge more. I recommend investors weigh the pros and cons (legal and tax implications, cost of borrowing) carefully. Feel free to call if I can help. /// Make it a good week folks! - Paul
Measure to let judges rework mortgages fails in the Senate
A measure to allow bankruptcy judges to rework the mortgages of strapped homeowners failed in the U.S. Senate. Read more
Foreclosure Prevention Plan expanded to 2nd mortgages
The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors.
Read more (For loan mod info and help go here - P)
High yield, short-term mortgage investment opportunities
- $70K 2nd 60% LTV, 12 month term, 14% rate
Home sales can't fall forever
Forbes: March's numbers are bleak, but in time, demographics will trump the collapse. Read more
Rates at record lows
For the week ending April 30th the 30-year fixed averaged 4.78% with an average 0.7% fee, down from last week when it averaged 4.80%. This time last year it averaged 6.06%."The housing market may be edging towards a bottom. Existing home sales stayed near its 4-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since Jan 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since Dec 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the NRA, which date back to Jan 1971".
Freddie Mac rate surveys.
Home Valuation Code of Conduct in short...
Consumers cannot order an appraisal directly from the appraiser. -
Mortgage brokers cannot be directly involved in selecting an appraiser. - Lenders must order appraisals through an appraisal-management company, or an employee not involved in loan origination. - The rules do not apply to government-insured loans such as FHA or VA loans.
New home-appraisal rule stirs opposition
The rule change, effective today, has been criticized for months by local mortgage brokers and appraisers.
Read more
