The Obama plan now called the
"Making Home Affordable Program" (MHAP) is good.
Details. It has been said that it cuts the
Gordian Knot. While it covers only a limited number of scenarios it establishes well-defined criteria for refinances for properties under water (to 105% for now), and
loan modifications. // Most FHA lenders are raising the minimum credit score to 620.
I can still do them with a minimum 540 for now. Have a good week!
- Paul
Report: Obama mortgage plan has some issues
The Obama administration's new mortgage modification plan is a positive step forward but questions remain about how the government will enforce new standards and what agency officials plan to do about problematic second mortgages, according to a congressional oversight panel report on Friday. Read more
Loan Modification Calculator
There are rules, common practices, and each lenders has unique policies. All of these change frequently, so the best we can do is estimate based on our experience and assessment of the current rules. Check your potential benefit with our
Loan Mod Calculator.
The Mortgage Debt Relief Act
The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Read more.
Rates up a bit
For the week ending March 5th the 30-year fixed averaged 5.15% with an average 0.7% fee, up from last week when it averaged 5.07%. This time last year it averaged 6.03%
Freddie Mac rate surveys
Available now...
* Jumbo loans at near non-Jumbo rates
* Helocs in 1st position to 75% ltv
* ARMs starting at 3.75%
* 85% ltv firsts without PMI
_________________________
"Man never made any material as resilient as the human spirit"
The Homeowner
Affordability and Stability Plan (HASP) is launching March 4th. Read
about
the details here. Meanwhile
getting a loan is getting
tougher across the board: higher credit scores, more down
payment, higher PMI rates, surcharges - and more. See below. Not
pretty
- Paul
Homebuyer Tax Credit forms and
rules now in place
The tax credit represents 10% of
the purchase price of a home up to a maximum of $8,000 or $4,000 for
married taxpayers filing separate returns. The $7,500 credit that
was authorized under earlier legislation last year was actually a 15
year loan; the new tax credit does not have to be repaid by the
homeowner under ordinary circumstances.
Read more
Fannie and Freddie plan big fee
increases
Fannie Mae and
Freddie Mac are both toughening credit score and down-payment rules
as of April 1. In response, major lenders are already factoring in
the higher fees. Under the new guidelines, buyers with down payments
of less than 25% will be charged a 0.75% add-on penalty, no matter
how high their credit score. Buyers of duplexes, where one unit is
owner-occupied and the other is rented, will be charged a 1% add-on.
Refinances with cash out will be charged as much as 3%.
Read
more
Is your mortgage deduction
under fire?
They say
nothing less is at stake than the mortgage interest deduction. Next
to fall will be motherhood and apple pie.
Read more.
Roundup: What is does
to owning vs renting
Mortgage Insurance: Harder to get
With losses mounting
within the mortgage-insurance industry, some applicants are being
turned away, while others will have to pay higher premiums.
Read
more
FHA and conforming loan limits released
HUD
has released new FHA and conforming loan limits based on changes
enacted as part of the economic stimulus bill. Loan limits in
high-cost areas are increased to $729,750, the same as last year.
They had dropped to $625,500 this year before passage of the
legislation. Check
local loan limits here.
Rates
flat For the
week ending Feb 26th the 30-year fixed averaged 5.07% with an
average 0.7% fee, up from last week when it averaged 5.04%. This
time last year it averaged 6.24%
Freddie Mac rate
surveys
Available now...
* Jumbo loans at near
non-Jumbo rates
* Helocs in 1st
position to 75% ltv
* ARMs starting
at 3.75%
* 85% ltv
firsts without PMI
_________________________
"The manner of giving is worth more than the
gift"
The Homeowner Affordability and Stability Plan (HASP) is by and large good news. The devil is often in the details with newly announced initatives, and I will keep you posted as more specifics become known. March 4 is the date when most initiatives launch. The plan will help many, but not all - and lenders are incented to help, but they don't have to. Read more
HASP highlights
Refi's up to 105% LTV
Government subsidized loan modifications to 150% LTV
Uniform guidance for loan modifications
Bankruptcy judges can modify loans
HASP information
Executive Summary (Dept of Treasury) Read
Fact sheet (Dept of Treasury) Read
Q&A for borrowers not in default Read
Q&A for borrowers in default Read
Not all modifications fit under HASP
Modification eligibility under the plan is (or will be) defined - but the actual modification formula is not. Lenders are not required to include any loan under the plan, and each lender will have a
unique approach to eligibility and what modifications will look like. Also some situations do not fit under the plan at all, including:
- Second mortgages
- Properties other than primary residence
- Jumbo loans (over $417,000)
- Private label loans: non-FHA and non-GSE (Fannie, Freddie, VA, others) loans
Rates for all products down
For the week ending Feb 19th the 30-year fixed averaged 5.04% with an average 0.7% fee, down from last week when it averaged 5.16%. This time last year it averaged 6.04% Freddie Mac rate surveys.
Available now...
Jumbo loans at near non-Jumbo rates
Helocs in 1st position to 75% LTV
ARMs starting at 3.75%
Contact me for further information or assistance
_________________________
"It is human nature to think wisely and act in an absurd fashion"
Rates are up, and from my point of view high volumes have a lot to do with it.
Lenders raise their rates (or not lower them) because they have too much business. Some mainstream lenders have turn times of up to a month, and even longer. No kidding. // Loan mod terms are much better now, and may soon become more predictable. A formula is being developed. We'll see.
Read more. Have a good week folks
. - Paul
Analysis: Loan mods much better, and tough to get
The terms are now so much better than last year. Different reasons for this: Rates are lower, lenders realizing it is a critical for loss mitigation, and the anticipation of a number of events: a foreclosure moratorium, fed funds for loan mods, cram-downs, and others. All have compelled lenders to be more forthcoming.
And they are also tough to get - It's a zoo out there. High volumes, lender inertia, and lack of organization add up to total chaos. Watch as a US Congresswoman tries to help 3 different home owners to modify their mortgage
Video. We know how to get loan mods, and how to extract the best possible terms from lenders. The cost is less than a refinance and the potential benefit (apart from saving the property) can run in the 100's of thousands of Dollars. Don't let your clients go it alone!
Refer them to me, and I will even pay you a small commission.
Read more.
Rates climb
For the week ending Feb 5th the 30-year fixed averaged 5.25% with an average 0.8% fee, up from last week when it averaged 5.10%. This time last year it averaged 5.67% Rate survey.
Rates rise despite Fed's efforts to push them down
Even as the Fed has continued to buy billions of dollars' worth of mortgage-backed bonds each week, home loan rates are at their highest level since mid-December. Read more
Mortgage initiatives mired in detail
While senior administration officials are finalizing the central elements of their rescue plan for the banking system, they are not as far along in working through the daunting details of how to spend as much as $100 billion to help homeowners facing foreclosure.
Contact me for further information or assistance
_________________________
"Be who you are, and be that well"
A big thank you to all of you who recommended real estate and bankruptcy attorneys to me. It's very helpful. // It looks like we will shortly discover what the Obama administration has in mind for the housing/mortgage markets. We have heard about 4% mortgages, fed funds for loan modifications, bankruptcy courts modifying loans, and other initiatives. It is clear there is no self-evident, single, or perfect set of solutions - but any reasonably coherent program will be better than nothing. - Paul
Rates hold steady
For the week ending Wednesday Jan 29 the 30-year fixed averaged 5.10% with an average 0.7% fee, down from last week when it averaged 5.12%. Rate survey.
Credit scores could benefit from new formula
In the wake of the nation's credit crisis, credit scores are about to get a makeover. Fair Isaac Corp., the leading company that figures consumers' credit scores, will change the way it crunches the numbers. Read more.
New rules: When a residence beceomes a rental property
Many people opt to convert their home into an investment property rather than selling before buying a next home. Fannie Mae introduces new rules for conversions of residences to investment property. In short: Equity matters, and more reserves are likely required. Read the details.
Contact me for further information or assistance
_________________________
"The more refined and subtle our minds,
the more vulnerable they are."
Paul Tournier (1998-1986)
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