NNEREN Mortgage Corner

New Home Sales Fall Unexpectedly In October. Median Prices Plummet

2010-11-24T14:34:00.000-05:00

The U.S. Census Bureau and the Department of Housing and Urban Development have jointly released NEW RESIDENTIAL SALES for October 2010.

The survey is primarily based on a sample of houses selected from building permits. Since a "sale" is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. It takes four months to establish a trend of new home purchases.

Despite the expectation that the absence of a Homebuyer Tax Credit would lead to slow sales, analysts expected home sales to rise to 310,000 in October, which would have constituted a marginal increase from Septembers rate of 308,000.

Full story here: http://www.mortgagenewsdaily.com/11242010_new_home_sales_fall_unexpectedly_in_october_median_prices_plummet.asp

Low rates, don't miss out

2010-05-18T11:20:00.001-04:00

Long-term mortgage rates fell to the lowest level of the year this week, after falling for five consecutive weeks. Freddie Mac's weekly rate report puts the average 30-year fixed-rate mortgage at 4.93 percent in the week ending May 13, down from 5 percent last week.

Source: Washington Business Journal, Jeff Clabaugh,(05/17/2010)

Sign of improvement

2010-05-14T13:37:00.000-04:00

TransUnion's quarterly analysis of trends in the mortgage industry found that national mortgage loan delinquency rate (the ratio of borrowers 60 or more days past due) decreased in the first quarter of 2010 after steady increases for 12 consecutive quarters. The delinquency rate dropped to 6.77 percent -- a level slightly lower than in the fourth quarter of last year.

This statistic, which is traditionally seen as a precursor to foreclosure, reflects a decrease of 1.74 percent from the previous quarter's 6.89 percent average. Year over year, mortgage borrower delinquency is still up approximately 30 percent (from 5.22 percent.)

Highest mortgage borrower delinquency rates in the first quarter of 2010 continued to be highest in Nevada (15.98 percent) and Florida (14.65 percent), while the lowest mortgage delinquency rates continued to be found in North Dakota (1.76 percent), South Dakota (2.44 percent) and Nebraska (2.68 percent). Seventeen states showed increases in delinquency from the previous quarter with Alaska (+11.3 percent), New Hampshire (+6.3 percent) and Hawaii (+4.8 percent) leading the pack.

The average national mortgage debt per borrower decreased (0.47 percent) to $192,774 from the previous quarter's $193,690.

REAL Trends, Inc.

Final weeks of homebuyer credit can be tough times

2010-04-29T16:25:00.001-04:00

As the final weeks of the homebuyer tax credit tick away, many sellers are playing a game of "chicken" with buyers by refusing to negotiate on price and seeking other concessions, knowing that buyers may not have time to find another home in time to make the tax credit deadline, according to reports from real estate professionals across the country in the popular real estate site, Active Rain. Some sellers are asking buyers to compromise home inspections or raise prices after credit-driven buyers turn out for open houses. Real estate agents around the country report a sudden shift in the climate between buyers and sellers. Some real estate agents report that sellers, who experience a higher number of showings, may decide to hold out for a higher price and others say sellers are trying to reduce the period for a home inspection so that they can find another buyer before the credit expires if the deal falls through.

Source: RealEstateEconomyWatch.com, Steve Cook

Info on March's market

2010-04-20T12:30:00.000-04:00

First-time homebuyers drove the housing market in March, posting a record high share, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

The survey found that a huge 48.2% of March's home purchase transactions were attributable to first-time homebuyers. This eclipsed the previous peak of 46.9% reached last October when the expected November expiration of the original homebuyer tax credit sent purchases by first-time homebuyers soaring.

The surge in first-time homebuyer activity in March came at the same time the volume of distressed properties in the housing market climbed to over 50%, according to the Campbell/Inside Mortgage Finance survey. This was far above the low of 37.3% recorded in November, when a combination of government-mandated loan modification efforts and foreclosure moratoriums significantly reduced the inventory of distressed properties in the housing market.

Source: from REAL Trends

Mortgage Delinquency

2010-04-13T15:10:00.000-04:00

The number of mortgages delinquent at the end of February 2010 is 21.3% higher than the same time last year despite government-led modification efforts, according to the latest monthly report from Lender Processing Services. Both delinquent and foreclosure inventories remain bloated as high volumes of problem loans remain held up in pipeline due to loss mitigation efforts and foreclosure moratoria, LPS found in the report.

Delinquencies recorded a seasonal decline from 10.25% a month earlier, but the national delinquency rate remains high at 10.2%, based on LPS's study of 40 million loans nationwide. LPS also found that foreclosure inventory reached another record high. February's foreclosure rate of 3.31% represented a 51% increase over 2009.

More than 7.9 million first-lien mortgages are in non-current or real estate owned (REO) status, LPS said. The percentage of problem loans as well as new problem loans remains at a five-year high. More than 1.1 million loans that started 2010 in current status were at least 30 days delinquent or in foreclosure by the end of February.

Source: Housingwire.com, Diana Golobay, (04/12/2010)

Treasury Official Says Administration is Working on Principal Reduction Plan

2010-03-31T16:47:00.002-04:00

The Obama administration is actively working on a plan to help both jobless workers and those who owe more than their homes are worth and details of the plan are coming "very very soon," a top Treasury official said on Thursday.

http://www.mortgagenewsdaily.com/03252010_principal_reduction.asp

When is it a bad idea to pay down your mortgage?

2010-03-22T09:40:00.009-04:00

Ron Lieber, New York Times personal finance columnist, explores that question this week.

A great read. Go to

http://blog.oregonlive.com/frontporch/2010/03/when_its_a_bad_idea_to_pay_dow.html

Mortgage help from Uncle Sam, aka the American taxpayers

2010-03-16T14:21:00.000-04:00

More than 170,000 troubled homeowners are breathing a lasting sigh of relief now that they've received permanent modifications under the Obama administration's foreclosure prevention program. Some 15.5% of those who entered the program have gotten long-term adjustments through February; up from 11.5% a month earlier, according to a report from Treasury officials issued on Friday. An additional 91,800 permanent modifications have been approved by servicers and are pending borrower acceptance. And more than 88,600 people have been denied lasting help because they did not meet the program's criteria, while another 1,499 homeowners have had their permanent modification terminated.

Source: CNNMoney.com, Tami Luhby, (03/12/2010)

News on shortsales

2010-03-09T11:48:00.001-05:00

Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process. The program will offer cash payment to the homeowner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance. To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

Source: The New York Times, David Streitfeld (03/08/10)

low rates means more refinancing

2010-01-21T16:23:00.000-05:00

Mortgage application volumes increased a seasonally adjusted 9.1% last week from the week before, mainly reflecting an uptick in refinancing activity, the Mortgage Bankers Association reported on Wednesday.

Exterior remodeling is best bang for your buck

2009-12-22T11:35:00.001-05:00

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by REALTORS® who completed a recent survey.
Here are the highlights:
• On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000.
• Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement--a new addition to this year's list--recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%. Wood deck additions recouped 80.6% of costs.
• On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.
• Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements - midrange wood, midrange vinyl, and upscale vinyl-all returned more than 76% of costs upon sale.
Similar to last year's report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.

Source: NAR

Mortgage applications up 8.5%

2009-12-09T10:37:00.001-05:00

WASHINGTON (AP) — Mortgage applications jumped 8.5% the week ended Dec. 4, as more borrowers refinanced loans to lock in interest rates near record lows, according to the Mortgage Bankers Association.

Full story here: http://www.usatoday.com/money/economy/housing/2009-12-09-mortgage-applications_N.htm

Upbeat

2009-11-24T11:14:00.000-05:00

From Real Trends:

Existing-home sales surged 10.1 percent to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008.

Sales activity is at the highest pace since February 2007 when it hit 6.55 million. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace, down from an 8.0-month supply in September. Unsold inventory totals are 14.9 percent below a year ago.

The national median existing-home price for all housing types was $173,100 in October, down 7.1 percent from October 2008. Distressed properties, which accounted for 30 percent of sales in October, continue to downwardly distort the median price because they usually sell at a discount relative to traditional homes in the same area.

Fannie Mae seeks more federal aid

2009-11-09T14:50:00.002-05:00

Fannie Mae, the federally controlled mortgage finance giant, said it lost $19 billion in the third quarter and had submitted a request to the Treasury Department for $15 billion in more aid to stay afloat.

FUll story here: http://www.washingtonpost.com/wp-dyn/content/article/2009/11/05/AR2009110505223.html

Mortgage rates rise for third week

2009-11-02T15:26:00.001-05:00

Rates for 30-year home loans climbed to 5.03 percent this week, the third consecutive weekly increase.

Story from Washington post here: http://www.washingtonpost.com/wp-dyn/content/article/2009/10/29/AR2009102905090.html

10 questions for lenders

2009-10-23T11:09:00.001-04:00

Once you've narrowed the lender field to a short list of finalists, it's time to compare their offers. http://www.bankrate.com/finance/mortgages/10-questions-for-lenders-1.aspx

Mortgage applications jump

2009-10-09T13:53:00.000-04:00

From Real Trends Inc.:

Mortgage application volume increased 16.4% from one week earlier, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2009. On an unadjusted basis, the Index also increased 16.4 percent compared with the previous week. The refinance share of mortgage activity increased to 66.3 percent of total applications from 65.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.2 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.89 percent from 4.94 percent, with points increasing to 1.13 from 0.94 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This rate is at its lowest level since May 2009 when it was 4.81 percent.

Mortgage rates approach all-time lows

2009-10-02T12:57:00.002-04:00

Freddie Mac's average 30-year fixed-rate loan falls below 5% for first time since May, to 4.94%. The record is 4.78%.

Story here: http://www.latimes.com/business/la-fi-mortgage-rates2-2009oct02,0,2691708.story

Mortgage Rate closer to 5%

2009-09-18T15:07:00.001-04:00

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.

Full story here: http://online.wsj.com/article/SB125323489977821721.html

Census Bureau: Real Median Household Income Fell 3.6%

2009-09-10T14:25:00.001-04:00

The U.S. Census Bureau announced today that real median household income in the United States fell 3.6 percent between 2007 and 2008, from$52,163 to $50,303. This breaks a string of three years of annual income increases and coincides with the recession that started in December 2007.

Full story here: http://www.calculatedriskblog.com/2009/09/census-bureau-real-median-household.html

Mortgage Rates down to 5.12%

2009-08-24T14:27:00.001-04:00

Rates for 30-year fixed loans fell this week to the lowest level since May, reducing borrowing costs for hesitant buyers as signs show the recession- plagued U.S. housing market may be bottoming.
The average 30-year rate fell to 5.12 percent from 5.29 percent, mortgage buyer Freddie Mac said today in a statement. The 15-year rate was 4.56 percent.

Full story here: http://www.bloomberg.com/apps/news?pid=20601103&sid=aUXl0qDZSceo

More signs the bottom may be behind us

2009-08-10T14:42:00.002-04:00

Freddie Mac reported second-quarter net income of $768 million, compared with a $9.9 billion loss in the first quarter and a $821 million deficit in the period a year ago.

For the first quarter in four, Freddie Mac said it would not need a capital injection from the Treasury to maintain its business of providing credit for U.S. housing. But it said it continues to rely on government money to keep it afloat.

Interest Rates up today (August 4th)

2009-08-04T11:35:00.002-04:00

Over the weekend mortgage rates were around 5.05% and on August 4th they are up to 5.24%

Full story here: http://bx.businessweek.com/us-economic-stimulus/view?url=http://www.lowestrateconsolidation.com/home-mortgage-loan-rates-interest-rates-up-on-august-4th/

A good time for a mortgage transaction

2009-07-20T13:47:00.002-04:00

First-time homebuyers and those thinking about refinancing are in a sweet place.

Mortgage rates just fell for the third straight week, according to mortgage finance firm Freddie Mac.

Story here: http://www.dallasnews.com/sharedcontent/dws/bus/personalfinance/stories/072009dnbusperfi.3beacbd.html

Real Estate Professionals Are Indicted on Mortgage Fraud Charges

2009-07-09T14:16:00.002-04:00

Employed in nearly every profession in the real estate industry, they included lawyers, real estate agents, appraisers and bank workers. They are accused of participating in numerous sham real estate transactions.

Full story here: http://www.nytimes.com/2009/07/09/nyregion/09mortgage.html?ref=nyregion

Government refi program expanding

2009-07-02T11:35:00.000-04:00

The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part. Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%. The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program.

Things looking up

2009-07-02T11:30:00.001-04:00

Home sales continued their modest upward swing in May, according to a closely watched industry report that rose for the fourth straight month for the first time in nearly 5 years.

Mortgage rates holding steady this week

2009-06-30T15:50:00.003-04:00

Little change seen in mortgage rates this week so far, but employment figures will be released on Thursday, so expect some possible reaction if the news is unexpectedly good or unexpectedly not good.

Getting Transferred? Securing a Mortgage Could Be Harder.

2009-06-22T16:33:00.000-04:00

Real estate may be showing signs of a turnaround in many local markets, but the nation's largest mortgage players are continuing to ratchet up their underwriting rules, making home purchases more difficult for some buyers.

Full story here: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/19/AR2009061901260.html

Rates rise

2009-06-09T12:03:00.000-04:00

After months of low rates some of which broke long-time records, mortgage interest rates shot up drastically during the week ended June 4. Freddie Mac released the results of its Primary Mortgage Market survey, showing that the 30-year fixed-rate mortgage (FRM) for the week averaged 5.29 percent with 0.7 point. This is the highest rate for the 30-year FRM since the week ended December 18, 2008 when the average was 5.19 percent. The new number is an increase of 37 basis points over last week's average 4.91 percent with 0.7 point.

Signs of a housing recovery?

2009-06-02T13:36:00.002-04:00

The index of housing demand surged well beyond expectations in April, leading markets to shoot up half an hour into the open. The Pending Home Sales Index ― which looks at contracts that have been signed, but not finalized ― shot up 6.7% in April, far above the +0.5% consensus expectation, and following a 3.2% gain in March.

“Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit,” said the press release from the National Association of Realtors.

Since April 2008, the index has improved 3.2%, indicating that claims of housing market stabilization could be justified. In addition to housing, the index is valuable in measuring general momentum in the economy.

“This is yet another positive indication that the bottoming process is forming,” said Jennifer Lee from BMO Capital Markets. “Now if only prices would stabilize.” Looking ahead, NAR chief economist Lawrence Yun said signings should increase over the summer and into the fall.

“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

Tax Breaks That Shouldn't Be Overlooked When Refinancing a Mortgage

2009-05-18T14:12:00.002-04:00

In addition to the regular write-offs that all homeowners have -- such as deductible mortgage interest and property taxes -- people who refinance their mortgage often overlook some tax breaks:

Story here: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/16/AR2009051600020.html

Freddie Mac: Mortgage rates rise as outlook brightens

2009-05-08T08:33:00.001-04:00

Mortgage rates remain near historic lows, but rates ticked up a bit this week, a move Freddie Mac links to the improving outlook for the U.S. economy.

The average rate on a 30-year fixed-rate mortgage rose to 4.84 percent this week, up from last week's 4.78 percent, which tied for the lowest rate for a 30-year mortgage since Freddie Mac started keeping track in 1971. A year ago, 30 year fixed-rate mortgages averaged 6.05 percent.

Full story here: http://www.bizjournals.com/triangle/stories/2009/05/04/daily62.html

Refinancing boom returns

2009-04-24T16:17:00.001-04:00

The mortgage business may have slowed to a snail’s pace late last year, but lenders say they have been working a feverish pitch lately....

Story here: http://www.richmondregister.com/localnews/local_story_113211005.html

Do You Qualify for Federal Mortgage Assistance Programs?

2009-04-13T16:29:00.001-04:00

Link is here: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/11/AR2009041100078.html

Do not fall for mortgage rescue scams. Free help available.

2009-04-07T16:25:00.003-04:00

If you are in trouble with your mortgage, there's an army of scammers out there waiting to con you out of your money and possibly your home.
Here are some tips from the Federal Trade Commission, plus phone numbers and web sites to consult for help.

http://blogs.suntimes.com/sweet/2009/04/do_not_fall_for_mortgage_rescu.html

Renters get foreclosure relief

2009-03-24T19:23:00.003-04:00

Fannie Mae and Freddie Mac have introduced new programs that let renters (and in Freddie Mac's case, former homeowners) continue to occupy the home after foreclosure.

Link to story here: http://www.bankrate.com/brm/news/mortgages/20090323-renter-foreclosure-relief-a1.asp

Mortgage rates below 5%

2009-03-20T09:45:00.002-04:00

After the Federal Reserve said it would double its purchases of mortgage debt, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point and are now under 5 percent.

Story here: http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/032009dnbusmortstory.3ec1823.html

Housing Starts Unexpectedly Rebound

2009-03-17T13:03:00.001-04:00

The U.S. housing sector showed unexpected strength in February, with housing starts and building permits both rising against expectations for continued declines.

Story here: http://www.mortgagenewsdaily.com/03172009_housing_starts.asp

Mortgage Talk

2009-03-13T13:42:00.000-04:00

What is a cram down?

In Bankruptcy, the reduction of various types of Debt to a lower amount, with acceptance by the bankruptcy court. For real estate assets, the loan may be reduced (crammed down) to the property value, even over the objection of the lender.

Example: The bankruptcy judge considered the $100,000 property value that was encumbered by a $90,000 first mortgage and $25,000 unsecured debt. He allowed $90,000 to the first mortgage holders, and crammed down the $25,000 unsecured debt to $10,000.

Congress wrestles with home mortgage crisis

2009-03-09T13:35:00.002-04:00

Against robust opposition from finance industry lobbyists, the House voted 234-191 to give primary homeowners the bankruptcy option to alter the terms of loans that has long existed for second homes, vacation homes, or investment property.

Full story here: http://features.csmonitor.com/politics/2009/03/06/congress-wrestles-with-home-mortgage-crisis/

Citigroup Cuts Mortgage Payments for Jobless

2009-03-03T15:09:00.001-05:00

Homeowners who have lost their jobs and are 60 days or more behind on their Citigroup mortgage could see their payments reduced to $500 for three months.

Story here : http://www.thestreet.com/story/10467396/1/citigroup-cuts-mortgage-payments-for-jobless.html?cm_ven=GOOGLEN

Details of the Obama mortgage plan

2009-02-20T14:44:00.001-05:00

Link to plan facts: http://www.mercurynews.com/news/ci_11734484

Leading Domocrat talks nationalization of some US banks

2009-02-20T14:40:00.003-05:00

The U.S. may have to temporarily nationalize certain banks, Senate Banking Committee Chairman Christopher Dodd said Friday in an interview on Bloomberg Television.
The headlines sent shares of Citigroup and Bank of America down more than 20% on fear they could be involved in any such nationalization plan.

Full story here: http://www.mortgagenewsdaily.com/02202009_temporary_bank_nationalization.asp

Mortgage Talk

2009-02-13T14:36:00.000-05:00

When does a reverse mortgage get paid back and how?

The reverse mortgage loan is due and payable when the last remaining borrower sells the property, permanently leaves the home, or passes away. Of course the key feature of a reverse mortgage is that so long as the borrower lives in the home, there are no payments due. Only when the borrower no longer occupy the home as principal residence will the loan becomes due. The amount that then must be paid will include: The total funds received from the mortgage, the initial fees and closing costs financed as part of the loan, and accrued interest.
Therefore, if the borrower decides to sell their home, the loan becomes due. When the home is sold, the homeowner can use the money received from the sale of the home to pay off the reverse mortgage. Then any additional income from the sale of the home is theirs to keep. Further, if the borrower moves to an assisted living community or passes away, the loan becomes due six to twelve months following the date they no longer occupy the home. This allows time for the house to sell so the proceeds can be used to pay off the loan. Then any additional money left over would go to the homeowner or their heirs.
If the homeowner or their heirs want to keep the home, repayment can be accomplished by refinancing the existing reverse mortgage into a conventional mortgage loan. Or simply paying off the loan in full and keeping the house.

Link to whole story https://www.quickenloans.com/mortgage-news/reverse-mortgages-after-the-life-of-the-loan-how-is-a-reverse-mortgage-paid-back-5501

Equity Loans Down in 4th Quarter

2009-02-02T15:49:00.001-05:00

Equity Loans down in 4th quarter of 2008:

In the fourth quarter of 2008, U.S. homeowners cashed out $17.5 billion in home equity through the refinance of prime first-lien mortgages, the lowest amount since the first quarter of 2001, according to Freddie Mac’s quarterly refinance review.

Link to whole story http://originatortimes.com/content/templates/standard.aspx?articleid=4172&zoneid=5