Check Eligibility Online for HARP 2.0

What is HARP?

• The Home Affordable Refinance Program (HARP) allows homeowners refinance their mortgages, even if the mortgage owed is greater than the value
• HARP Refinances are made in cooperation with Fannie Mae and Freddie Mac through the Making Home Affordable program endorsed by President Obama
• HARP Mortgage Lenders are licensed by the CA Department of Corporations, the CA Department of Real Estate and applicable National regulations

http://refinanceharp.org/Harp%20Mortgage%20Refinance.html

© 2012 RefinanceHARP.org, all rights reserved.

Fannie and Freddie Set Timeline Requirements for Short Sales

Fannie and Freddie Set Timeline Requirements for Short Sales

http://www.dsnews.com/articles/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17?utm_source=twitterfeed&utm_medium=twitter

Click on the above or cut and paste into your browser for the full text.

Provided courtesy of Linkedin TODAY

Fannie Mae Raises Cost of Mortgages

Here's mortgage giant Fannie Mae's sobering New Year's greeting for homebuyers in 2011: Give me more money! If you want a loan this year, you're going to have to pay more — thousands of dollars more in some cases — even if you've got stellar credit scores and bundles of cash handy for a down payment. Things could get much worse if your scores have been sagging with the economy and you don't have much money upfront. In a Dec. 23 memo to lenders in its network, Fannie announced that it has decided to impose a new schedule of higher add-on fees, similar to what Freddie Mac — the other huge congressionally chartered mortgage investor — rolled out to jeers from the real-estate industry just before Thanksgiving. Both corporations have required massive federal financial infusions — estimated at close to $150 billion — since the housing market began deteriorating, and now operate under a federal "conservatorship" arrangement. The Obama administration plans to submit long-promised proposals to Congress this month on what to do with the two — phasing them out, restructuring them, privatizing one or both of them, or other solutions. But meanwhile, Fannie and Freddie continue to fund or guarantee upward of two-thirds of new mortgage originations. Because of their sheer size and market dominance, they play pivotal roles in determining whether — and how fast — the housing market can rebound. Their new fees scheduled to start this spring, however, don't appear likely to make financing a home any easier. In fact, some potential buyers who have high credit scores and hefty down payments may be surprised that even they are being targeted for higher "risk-based" fees. Consider these examples of how Fannie's revised list of loan add-ons will affect borrowers. Say you want to buy a house that requires a $300,000 first mortgage. You have impressive FICO scores — above 800 — and cash for a down payment just under 25 percent. Purely on the basis of your credit score and loan-to-value (LTV) ratio, Fannie now plans to charge an extra quarter of a percentage point of the loan amount — $750 — to do the deal. During 2010, by contrast, your substantial down payment combined with your FICO score — signifying virtually no risk of default — would have cost you zero. Now take the same loan amount, but substitute a lower score and smaller down payment. Say your FICO score is 679, and you have down-payment money just under 20 percent, Fannie will soon begin hitting you for 2 ¾ percent in add-on fees — a staggering $8,250 extra solely attributable to your FICO and LTV.

Refinancing

Realty Times of February 11, 2010

Resolve to Take a Look at Refinancing by Broderick Perkins

If you haven't looked into refinancing your mortgage under federal programs, you could be missing an opportunity to save money, keep your home and give the economy a little juice.

Federal mortgage refinance programs have given more than 2 million homeowners a better shot at holding on and the economy a much needed shot in the arm.

What's more, the year began with fixed interest rates hovering slightly above 5 percent, but still near record lows, according to Erate.com.

First American CoreLogic's "How the U.S. Consumer Has Benefited from Mortgage Finance Programs in 2009," reveals a group of 2.2 million homeowners have saved an average $120 a month on their mortgage payment -- a 10.5 percent reduction from the previous mortgage payment.

The study says the refinance activity will result in $2.3 billion in mortgage payment savings for borrowers who refinanced in the first six months of 2009. Over the next five years, the total benefit to homeowners who refinanced in 2009 will grow to $11.5 billion.

The study analyzed residential mortgage refinances that occurred between October 2008 and June 2009 to test the impact of Federal Reserve efforts to lower interest rates and to measure effect of the Making Home Affordable's Home Affordable Refinance Program (HARP).

This summer, HARP gave a hand up to more homeowners suffering mortgages larger than the value of their home.

Borrowers current on payments with Fannie Mae or Freddie Mac guaranteed loans could be eligible for refinancing into new loans even if they owe as much as 125 percent of the home's current value. The previous HARP loan-to-value limit was 105 percent.

Also, if the existing mortgage were written without mortgage insurance, the new loan won't be burdened with the extra cost. Fannie Mae and Freddie Mac loans typically require mortgage insurance when the loan is more than 80 percent of the home's value.

Of course, if the current mortgage has mortgage insurance and the new loan is 80 percent or more of the home's value, mortgage insurance comes with the deal.

The new 125 percent limit also may not apply if a second mortgage combined with the first exceeds the limit. The new deal also doesn't allow homeowners to take cash out.

Another plus from the program: The higher loan-to-value ratios were first available only to qualified borrowers who applied through their existing servicer.

That's changed.

Since Oct. 1, 2009, homeowners got the option to shop around and refinance through any Fannie or Freddie lender.

In addition to lowering your monthly payment, a refinanced mortgage can move you to a fixed or adjustable rate, shorten the term of your home loan, or let you tap home equity -- with a lender's approval.

"The quantitative easing policies of the Federal Reserve and refinance activity made possible by the Home Affordable Refinance Program (HARP) have allowed more than 2 million consumers to reduce their monthly mortgage debt obligations and put more money in their pockets," said study author, Mark Fleming, Ph.D. and First American's chief economist.

"This permanent increase in monthly income is likely to, in part, be used to increase consumption and help to drive growth as the economy rebounds. The combination of lower payments and fixed-rate terms should also reduce the risk of future foreclosure," he added.

Perhaps, but some say the economy needs more than lower rates.

"Low fixed rates are only part of the solution to our economic problems," says Nancy Osborne, chief operating officer at Erate.com.

"Home buyers can enjoy record low rates to help them qualify for more home, and this in conjunction with the government's home-buyer tax credit work to stimulate the purchase market, yet the rising unemployment rate may make purchasing a home somewhat risky for all but the most securely employed," she added.

To check your eligibility for a refinance under the new provision, go to Making Home Affordable.

To compare rates, costs and other factors by state, go to Erate.com.


Copyright © 2010 Realty Times. All Rights Reserved.

REO Discontent

Note - A REO is Real Estate Owned - Banks don't want REO's. Bank owned/Lender owned properties are not Short Sales, they move much quicker!

Realty Times of January 11, 2010

Washington Report: REO Discontent
by Kenneth R. Harney

Mortgage giant Fannie Mae is unhappy about the mounting thousands of REO houses it's stuck with, but now it's moving to sell off that inventory faster than it has in the past, potentially opening up some interesting opportunities for home buyers and their agents.

In a new policy announcement, Fannie says it will now accept purchase offers for its REO immediately after listing, without notifying lenders or mortgage servicers whose loan files are under review.

Under its previous policy, Fannie gave lenders and servicers fifteen days to find a better purchase offer for new REO they sent to the company following foreclosure.

That policy affected all repossessions where Fannie demanded the loan file on the house - potentially exposing errors in underwriting or servicing, and requiring reimbursement for losses by the lender.

But that policy also had a negative impact on Fannie's ability to move its REO out the door quickly. The fifteen day time-out slowed down the works - and sometimes kept properties out of reach of ready and willing buyers.

Partly as a result, Fannie's portfolio of unsold acquired real estate has been ballooning lately. According to its most recent securities filing, the company, now under federal control, took in more than 98,000 properties following foreclosures during the first three quarters of 2009.

During the same time, it sold about 90,000 houses.

But because of a widening imbalance of REO in and out the door dating to prior years, Fannie was sitting with 72,000 unsold houses -- about a 7 percent jump from the same period the year before.

Fannie's response to this REO bloat? Sell off the houses faster by accepting purchase offers through its network of real estate listing agents earlier.

In the company's memo to lenders and servicers, it basically said this: We're now going to market houses as soon as they come in the door and we've established a current value.

No more fifteen day time out period for lenders whose REO we've selected for loan file reviews.

As soon as Fannie lists an REO property, it will be fair game for home buyers. And if Fannie ultimately sells for a loss -- and the loan file review turns up bad underwriting or other problems -- Fannie plans to stick the lender with the loss.

Bottom line for home buyers and agents under the policy change: Look for earlier access to REO properties, and earlier decisions on purchase offers.

Fannie is determined to slim down its REO portfolio in 2010, and that just might provide opportunities for heads-up buyers and agents looking for deals.

Copyright © 2010 Realty Times. All Rights Reserved.

Fannie Mae Deed for Lease™ Program

November 5, 2009

Fannie Mae Announces Deed for Lease™ Program

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.Our job is to help those who house America.

Fannie Mae Resource Center Telephone 1-800-7FANNIE
(1-800-732-6643)

NEW APPRAISAL AND LOAN PROBLEMS

The Home Valuation Code of Conduct(HVCC)went into effect on May 1, 2009. HVCC establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. Realtors® and mortgage brokers are prohibited from selecting appraisers except for In House staff appraisers.

To date, only Fannie Mae and Freddie Mac have agreed to adopt the Code. There is a strong feeling in the Real Estate Industry that the new system has created manor negative results in the home sales environment. In one long sentence, sales fall through due to delays and bad appraisals, Appraisers are given less time to complete their work and get paid less, many appraisers have left the business, and the system even sends appraisers from another state to work in unfamiliar territory. One or more appraisers from California were sent to Tucson to perform appraisel work?

To date HUD, who administrates FHA, has declined to accept the HVCC. Suddenly, FHA is becoming the lender of choice in our floundering Real Estate Market.

A few facts from recent news releases and information offered on radio programs:

1) Approximately 1/3 of all home owners in the U.S. are upside down on their homes (i.e. their loan is greater than the current value of their home!)

2) An estimated 75 to 80% of those loans are sub-prime loans.

3) And for the first time in history, over 7% of those loans are prime loans!

4) In Phoenix, the national 33% estimate becomes 51% of homeowners that owe more than their house is worth.

An Arizona judge recently forced Wells Fargo Senior Vice President Joe Ohayon to Phoenix for 2 days to explain why so few loan modifications had been granted and why they failed to communicate with those seeking help?

The customer that filed the case that prompted this judicial action said they never told her there was a problem with her request paperwork, they failed to tell her they had turned her down on her request for help, and she states she is now about to lose her home of 15 years. Nice job, Wells Fargo.

For those facing the potential for foreclosure, please see my last blog, "Mortgage Help". I wish you success in overcoming the barriers that seem to persist.

From Realty Times of July 13, 2009

Washington Report: Home Affordable Refinance Program by Kenneth R. Harney

The Obama administration's latest expansion of its "home affordable" refinance program, outlined just before the July 4 holiday, could be huge news for tens of thousands of owners whose houses are seriously "underwater," or where they're worth a lot less than the mortgage balance owed on them.

Under the new rules, even where borrowers have negative equities of as much as 25 percent, they may be able to refinance into better loan terms, provided their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.

Under the original rules for the program, the cutoff point was just five percent negative equity -- or a "loan to value" (LTV) ratio of 105 percent.

Though an estimated 80,000 owners already have been refinanced by Fannie and Freddie, HUD Secretary Shaun Donovan and Treasury Secretary Tim Geithner decided that the 105% LTV limit left too many borrowers out of reach.

In some parts of California, Nevada, Arizona and Florida, 40 to 50 percent of home owners are now stuck with negative equities, according to industry estimates. In Las Vegas, 67 percent of owners are underwater.

Zillow.com estimates that nationwide, 22 percent of all owners have negative equity in their properties - many of them by more than five percent.

The newly-expanded "home affordable" program opens the door not only to lower monthly payments for seriously underwater borrowers, but also to the possibility of shorter loan pay-off terms to reduce mortgage principal debts much faster.

Here's an example of how the expanded program could work:

Say your house is currently valued at $240,000, but your mortgage balance is $300,000.

You are underwater by 25 percent.

If your loan is owned or guaranteed by Fannie or Freddie, and you're not behind on your payments, you should be eligible for a "home affordable" refi.

Say your current payments are eighteen hundred sixty dollars a month. By refinancing into a new 30-year, $300,000 loan at five and a quarter percent, you could cut your principal and interest payment to about sixteen hundred sixty a month - a $200 saving.

Or you could shorten your loan term from 30 years to say, 15 years or 20 years at five and an eighth percent. If you could handle the slightly higher monthly payments, you'd accelerate your principal paydown speed, build equity and go from underwater to above water much faster, even without local market value appreciation.

To take advantage, contact your loan servicer to see if your mortgage is owned by Freddie or Fannie. Or you can check online at either fanniemae.com/loanlook, or freddiemac.com/mymortgage.

Copyright © 2009 Realty Times. All Rights Reserved.

Reshaping Fannie and Freddie

Realty Times of June 8, 2009

Washington Report: Reshaping Fannie and Freddie
by Kenneth R. Harney


Congress took its first step last week on a mission that could totally reshape the American mortgage market.

A House financial services subcommittee held the first hearing on what to do with Fannie Mae and Freddie Mac -- the failed, trillion-dollar mortgage giants that are now operating under direct federal control.

The ultimate answers are likely to determine the types of loans and interest rates that home buyers will have in the future. That's because Fannie and Freddie have dominated the real estate market for decades, writing the rulebook on everything from loan sizes, credit requirements, downpayments and underwriting standards.

Among the idea floated at last week's Capitol Hill hearing were a “utility” concept, where Fannie and Freddie might be merged into a single, privately-owned, federally-regulated superstore for mortgage money.

The model would be along the lines of the water, power and sewage utilities we see all over the country, but there'd just be one mega-utility to fund mortgages. The utility concept was first proposed last year by former Treasury Secretary Hank Paulson. The Obama Administration has not spoken out publicly on it yet.

Another idea floated at the hearing was to broaden the mortgage menus of whatever agency or agencies replace Fannie and Freddie to include types of mortgages they currently can't touch -- especially jumbo home loans and commercial real estate mortgages.

Frances Martinez Myers, representing the National Association of Realtors, said jumbos and commercial real estate loans are suffering in the credit crunch and need more support. Commercial and investment property owners in particular, said Myers, find themselves unable to refinance because there is neither a private nor public secondary market for their loans at the moment.

The Mortgage Bankers Association came to the hearing with a white paper listing various alternative futures for Fannie and Freddie, including turning them into a government-owned version of the FHA and Ginnie Mae, but targeted on conventional mortgages.

Without endorsing any particular alternative, the MBA also suggested consideration be given to a private “cooperative” model, in which banks and other mortgage industry players would pool their assets and provide secondary market services in addition to mortgage originations.

Under this scenario, the federal government would provide back-up insurance against “catastrophic losses” that exceed the private cooperative's capital and pledged assets.

Where's the debate over Fannie and Freddie headed? Look for Congress to hold more exploratory hearings this year. Then, maybe as early as next year if the recession is over and the market is healthier , the Obama administration might begin drafting its preferred solution - which almost certainly will not involve total privatization.

Copyright © 2009 Realty Times. All Rights Reserved.

Top 10 People to Blame for the Financial Crisis

Get your dartboards out - here are the names of those to put on the target!

From National Realty News of Thursday, February 19, 2009 - By Stefan Swanepoel:

TOP 10 PEOPLE


.

Inside the Meltdown

Last night I watched a 1 hour show on the Public Broadcast System's "Frontline" called "Inside the Meltdown".

It was, without question, the most comprehensive explanation I have seen of why we are in the economic mess facing us today. I urge you to spend the nearly 1 hour viewing the show to better understand the mistakes that were made and where we are headed now. It clearly explains why lending for homes came to a screching halt, what toxic loans are, and why we must not let this ever happen again.

We regrettably have now begun to nationalize the nation's financial structure as we now own, as citizens, or as our government if you prefer, the 2 largest financial firms in the world, Fannie Mae and Freddie Mac and a percent of the dozen major banking firms.

You can view the show on your own computer and develop your own opinions on how to deal with what the future holds by going to
FRONTLINE
and clicking on "Inside the Meltdown". It takes a few minutes to load - then click on the Green Arrow and turn up your sound.

You are given the opportunity to download the video by mowing your cursor around the page and playing the program in Real Player at your own pace if you prefer. I also suggest you close any open pages on your browser to ensure a clean viewing of the program.

Folks, IT IS WORTH THE TIME! The better we understand how and why this happened, the better we can individually deal with it - and perhaps even help to prevent our grandchildren from facing this terrible ordeal again!

.

Lower Mortgage Rates

From Realty Times of February 13, 2009

Lower Mortgage Rates Translate into Large Volume of Refinancing

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.

The 15-year FRM this week averaged 4.81 percent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.25 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. A year ago, the 5-year ARM averaged 5.19 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. At this time last year, the 1-year ARM averaged 5.00 percent.

"Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance," said Frank Nothaft, Freddie Mac vice president and chief economist. "This would translate into a monthly payment savings of around $188 on a $200,000 mortgage."

"The Bureau of Economic Analysis estimated that the weighted average mortgage rate of loans outstanding was about 6.2 percent in the fourth quarter of 2008. As a result, the share of refinancing among the total number of conventional mortgage applications has exceeded 50 percent for the past 11 weeks and averaged 80 percent over this period, according to the Mortgage Bankers Association."


Copyright © 2009 Realty Times. All Rights Reserved.

Top Five Myths About Loan Modification

From Realty Times of January 26, 2009

Top Five Myths About Loan Modification by Ralph Roberts

DETROIT--(BUSINESS WIRE)-- Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, today released a list dispelling the top five myths about loan modification. Intended to better educate homeowners facing the prospect of losing their home in foreclosure, the following list demystifies the most common misconceptions surrounding the loan modification process.

MYTH #1: My bank wants me out of my house. My bank wants my home. Banks and other lending institutions do not want to foreclose. They earn more money if you can make your payments. When they foreclose, they not only lose your monthly payments, but they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions). In today's market, there's a good chance they'll have to sell the home at a loss. This is all good news for you – it means the bank is highly motivated to make a deal with you.

MYTH #2: My credit score is bad so I won't qualify. Unlike the option of refinancing out of trouble, which requires you to apply for a new loan, loan modification simply adjusts the terms and perhaps reduces the balance of a loan you already have. Your credit score is much less of a factor in determining whether you qualify for a loan modification. In addition, a successful loan modification can actually improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy.

MYTH #3 I am not late on my mortgage payments so I won't qualify. I have to miss a payment to be eligible. Early on, this was true. In fact, some early eligibility requirements stated that you had to be 61 days delinquent in order to qualify. In other words, you would have had to have missed two full payments. The truth is that the eligibility requirements are constantly changing and differ among lenders. Many lenders are now working out loan modifications with borrowers who are up to date on their payments. It's difficult to determine whether you qualify until you actually discuss your situation with the lender or with an attorney who is knowledgeable and experienced in loan modifications.

MYTH #4: I would be better off walking away or declaring bankruptcy than modifying my loan. Walking away from the home and filing for bankruptcy are certainly two options, but they are rarely the best options when you are facing foreclosure. If you simply walk away, the lender is unlikely to pursue legal action against you, but in some jurisdictions, the lender can pursue a deficiency judgment against you to collect the difference between what the lender receives for your home at auction and what you currently owe on the balance of the mortgage. Filing for bankruptcy may be better than just walking away, but it can leave a blemish on your credit history that makes it difficult to borrow money in the future. A successful loan modification is almost always a more prudent choice.

MYTH #5: It's too late. I have already received a foreclosure notice. As long as you still reside in the home – that is, you didn't voluntarily abandon it, and the home hasn't been sold at a foreclosure auction – you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you have available and the more time you have to pursue the best option, but you can still negotiate late into the process. By contacting the lender or, better yet, having your attorney contact the lender on your behalf, you demonstrate a good faith effort to work out a solution and can often buy yourself extra time to negotiate a loan modification.

--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.

.

Few Borrowers Can Revise Mortgage Loans

We do not wish to only present the good news - you will get the other side of the story here as well!

Not everyone agrees that the bailout is working. One woman's story as it appears in RISMEDIA, January 23, 2009:

A different view of the bailout!

It appears our new president has a major challenge ahead of him in this area!


.

Federal bailout is working, Zions banker says

The first clear feedback on the TARP progream:

This article from the AZ Republic Newspaper of Jan. 18 indicates that "the effort appears to have bolstered the stability of the banks and has helped to get credit flowing again."

Federal bailout is working

It is significant to note that the writer does feel the government will be repaid the funds provided by this program. That doesn't seem to get mentioned very often!

.

More on Lower Interest Rates

Realty Times of January 16, 2009

Slow Economy and Government Actions Lead to 11 Weeks of Lower 30-Year Fixed Rates

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.96 percent with an average 0.7 point for the week ending January 15, 2009, down from last week when it averaged 5.01 percent. Last year at this time, the 30-year FRM averaged 5.69 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year FRM this week averaged 4.65 percent with an average 0.7 point, up from last week when it averaged 4.62 percent. A year ago at this time, the 15-year FRM averaged 5.21 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.25 percent this week, with an average 0.6 point, down from last week when it averaged 5.49 percent. A year ago, the 5-year ARM averaged 5.40 percent. The 5-year ARM has not been lower since the week ending September 8, 2005, when it averaged 5.24 percent.

One-year Treasury-indexed ARMs averaged 4.89 percent this week with an average 0.5 point, down from last week when it averaged 4.95 percent. At this time last year, the 1-year ARM averaged 5.26 percent.

"Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low.

"In December, the unemployment rate rose to 7.2 percent, the highest since January 1993, and the economy lost 2.6 million jobs over 2008, the largest annual drop since 1945. That brought down yields on Treasury securities and mortgage rates followed."

--------------------------------------------------------------------------------

Copyright © 2009 Realty Times. All Rights Reserved.

.

Low-Interest-Rates

Realty Times for January 15, 2009

Quick! Take That Low-Interest-Rate Holiday by Broderick Perkins


One holiday Blue Light Special appears to be working.

Interest rates are as low as they been since Freddie Mac started tracking them, refinancing applications are soaring and home buys are on the move.

Freddie Mac on Christmas Eve, bless them, said the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008. That's the lowest the rate has been since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year rate averaged 4.91 percent.

Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.

Talk about visions of sugar plums.

With home prices in a trough, with all the money you've been saving on reduced holiday spending and gasoline conservation, with all those motivated sellers out there twisting in the frigid wind?

It's a good time to consider refinancing your mortgage and it's a good time to be thinking "Buy A Home -- Now!"

Forget settling down for a long winter's nap.

It's obviously time to put on your refinance thinking cap or your buy-a-home lid, not that go-to-sleep winter topper.

Either way, you won't be alone. Jack Frost can't hold a candle to housing consumers who feel the heat.

On Dec. 24, the Mortgage Bankers Association's composite index of mortgage applications to buy a home or refinance a mortgage -- bless it also -- rose to 1,245.4, the highest since 2003, from 841.4 a week earlier. The group's refinancing gauge rose 63 percent and purchases gained 11 percent.

Low rates have you looking to refinance?

The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago, even if they had a small equity stake in their home and used an ARM to buy.

The key, say the experts, is to examine your options.


Visit your existing lender first, especially if your lender doesn't sell loans and has a vested financial interest in keeping its portfolio intact. It will prefer to refinance you at the going rate rather than cut a loan modification and lose money.
Also shop around at other banks, credit unions (especially credit unions) and other lenders that also retain loans.


Trading an ARM for a fixed rate that's slightly higher also isn't a bad deal if that ARM rate will eventually explode with an upward adjustment.

A 40-year mortgage also can help offset the cost of trading an ARM for a fixed rate, due to the longer term's relatively smaller payments.

If you have both equity in your home and pristine credit, bargain hard. You have the most options.

Quickly pull your credit report from the only federally-sanctioned free service, AnnualCreditReport.com and check it twice for accuracy.

Don't overlook trading one ARM for another, especially if the new ARM is a hybrid that provides enough breathing room, say five or seven years or more before the first adjustment.

A U.S. Housing and Urban Development-approved counselor, experienced mortgage broker or mortgage adviser can help you quickly sort through options from lenders, bailout programs and other sources to get you a refinanced mortgage -- fixed or adjustable -- that is most viable.

Examine all potential options by comparing all loan costs of each refinance from a variety of sources -- in-house lenders, secondary market lenders and brokers.
Low rates making you think about buying?

Budget. Know all sources of every penny and where every penny goes. You can't know where you can cut costs until you know in detail what those costs are.

Save. Pinch Pennies. Save More. Being miserly isn't lame. It's a prerequisite to homeownership. If you don't have a savings account worth three to six months of your net income, you are already a financial disaster waiting to happen should there be an emergency. In addition to money for the down payment, lenders today will expect you to have some cash left over for insurance, taxes, maintenance and other costs that come with homeownership.

Don't just get your credit report, read the darn thing. Your credit report is a report card on your credit use -- the good, the bad, the ugly -- and, too often, the incorrect. Which is why you want to see it. If there are errors, follow the instructions to correct them.

Get professional help. Can't determine what your credit report is trying to tell you? Not sure how to calculate what you'll need to save for a down payment? Don't know how to set up a budget? Most consumers don't. It's okay to ask for help. It's smart to ask for help. You don't know everything about buying a home, even if you are moving up, but especially if you are a first-timer. Save the pride for after the purchase.

Whether it's a financial planner, financial counselor, real estate agent, mortgage broker, loan officer, or real estate market nerd, ask family, friends, co-workers and others you trust for references to find those who can help you. Get help in setting goals, sifting through mortgage programs, understanding the title and escrow process, finding a home and keeping a home -- all well before you are actually in the market for a home.

Learn about market and economic conditions that could impact your decision. Learn about home prices, mortgage rates, home buying costs and other issues surrounding what's likely to be your most complicated purchase ever.

Attend workshops, seminars and classes.

Browse for housing information from online content providers, including MyMoney.gov, the Better Business Bureau (search "Tips for Troubled Homeowners") and Deadline Newsroom's home buyers search results.


Pick up a few books, or save some bucks in the library reading "Buying Your First Home" (Nolo, $24.99); "The National Association of Realtors Guide To Home Buying" (Wiley, $19.95) and "Let's Get Real About Money" (Financial Times, $19.99), among others.

Above all -- refinancing or buying -- move fast. The mortgage market is as volatile as it's ever been. Rates could quickly reverse course and head back into Scrooge territory.

--------------------------------------------------------------------------------

Copyright © 2009 Realty Times. All Rights Reserved.

.

Fannie Mae Updates

Fannie Mae recently released new guidelines that you need to know about. Go to FannieMaeUpdates
to read the summary of these changes.

This will give you a guide as to what your lender must comply with on new loans following disposition of current loan problems.


.

Fannie Mae and Freddie Mac suspending foreclosures for 16,000

From the Arizona Republic of Nov. 20, 2008

Fannie Mae, Freddie Mac halting foreclosures

The Associated Press

WASHINGTON - Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures for about 16,000 households during the holiday season.

The two companies said Thursday that they will halt foreclosure sales between Nov. 26 and Jan. 9, while they evaluate whether borrowers qualify for a new loan modification program announced last week.

Fannie Mae said about 10,000 households would be affected, while Freddie Mac said the changes would affect about 6,000 borrowers who are facing foreclosure. The change does not apply to vacant homes.
The announcement “provides a new measure of certainty to many of these families during the holidays,” Freddie Mac Chief Executive David Moffett said in a release.

Both Fannie and Freddie were seized by the government on Sept. 7. The companies' former CEOs were ousted and the government now has direct control over the pair.

Fannie and Freddie's loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies.

Under the program, the new primary mortgage payments — including taxes and insurance —shouldn't total more than 38 percent of homeowners' pretax monthly income.

Fannie and Freddie are the dominant players in the U.S. mortgage market but hold only 20 percent of delinquent loans. Ultimately about 400,000 households are likely to qualify for the loan modification program, according to Priya Misra, a mortgage analyst with Barclays Capital.

By contrast, the Federal Deposit Insurance Corp. estimates that more than 4.4 million borrowers will become delinquent by the end of next year, not including loans backed by Fannie and Freddie.

.

Real Estate Market Defying Odds

An encouraging article from Realty Times of October 14, 2008:

Real Estate Outlook: Real Estate Market Defying Odds by Kenneth R. Harney


The panic and fear that have been shaking Wall Street aren't translating into negative numbers for real estate -- in fact, it's been the reverse.

While the Dow Jones index peeled off a record fourteen hundred points in a matter of days, the latest pending home sales index was moving in the opposite direction -- up strongly to its highest level in more than a year.

Pending sales jumped by 7.4 percent in the latest month, according to the National Association of Realtors.

Financial industry analysts had forecast a one and a half point DECLINE in the index for the month, but pent-up demand for housing, plus rock bottom bargain prices in many markets, convinced buyers that this is a good time to get off the sidelines and get into the game.

The pending home sales index measures new contracts for home purchases that haven't yet gone to closing, but should do so in the near future. It's a widely accepted predictor of sales activity two to three months down the road.

Mortgage rates and new loan applications also defied the negative spiral in the stock market: Applications for home purchases to be financed with conventional mortgages jumped by three percent last week, and new FHA applications were up by nearly 10 percent, according to the Mortgage Bankers Association's national survey.

Interest rates on 30 year fixed rate loans dropped to 5.9 percent and 15 year rates hit 5.7 percent.

Why the sharp divergence in performance between home real estate and Wall Street?

One key reason is that real estate -- which helped trigger the financial crisis through lending abuses and fraud -- has been undergoing its own correction on pricing and underwriting practices for the past two and a half years.

It's already taken its lumps, and has now reached a point where prices in former boom markets are so affordable that smart buyers are swooping in.

Also - although we keep hearing about the global credit squeeze and banks' unwillingness to lend money, that's definitely NOT the case in the mortgage market. There's plenty of money available - as long as you have a solid credit history and some downpayment cash.

Fannie Mae, Freddie Mac and the FHA now account for well over 90 percent of home financing volume, and all three are backed by the federal government.

They've got a direct and virtually unlimited pipeline into the capital markets.

And with mortgage rates under 6 percent, no wonder consumers are shopping for -- and buying -- houses at great prices.

Copyright © 2008 Realty Times. All Rights Reserved.

-----------------------------------

Phoenix area progess is on my website at www.denismarque.com on the Welcome page and on the Buyer Help page. Pay us a visit!


.