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Posts Tagged ‘home loans’

FHA may be Teetering on the Edge

December 26th, 2012 Comments off

Townhall tells MHProNews the Federal Housing Administration (FHA) continues to make risky loans to borrowers with low credit scores and/or high debt ratios. Based on zip codes, these borrowers have an expected foreclosure rate of 15 percent, accounting for 44 percent of FHA loans to people of low to moderate means. Not only are taxpayers exposed to the possibility of a bailout, but foreclosures and the ensuing blight reduce the tax rate, making it tougher for municipalities to provide services to those neighborhoods. Backing over $1 trillion in U.S. home loans, the FHA may be facing a $16.3 billion shortfall by the end of Sept. 2013, according to an article in The Wall Street Journal. FHA is attempting reforms that may or may not be successful, but time may be running out for an effective correction to be made.

(Image credit: FHA)

Homeowners Benefit from Government Programs

December 18th, 2012 Comments off

HousingWire informs MHProNews the Home Affordable Modification Program (HAMP) assisted 13,400 homeowners in obtaining trial modifications for the terms of their home loans in Nov., a drop from 15,200 the previous month. Meanwhile, 16,000 received permanent modifications in Nov., an increase from 13,800 the previous month.

(Image credit: realtor)

Delinquency Rate Drops

November 16th, 2012 Comments off

NationalMortgageNews tells MHProNews the delinquency rate for government-backed loans inched down third quarter 2012 over the second quarter, from 11.89 percent to 11.14 percent as of Sept. 30. The Mortgage Bankers Association (MBA) reports the rate a year ago was 12.09 percent. Federal Housing Administration (FHA) loans late 90 days or more also nudged down from nine percent June 30 to 8.54 percent Sept. 30. With consumers owing approximately $9.4 trillion on home loans, MBA says 7.4 percent of all outstanding mortgages were late as of Sept. 30, 2012, a drop from 7.99 percent a year ago.

(Image credit: moneycontrol)

Residential Mortgages Set High Mark for Q1 2012

May 15th, 2012 Comments off

NationalMortgageNews tells MHProNews.com $462 billion in residential mortgages were funded in Q1 2012, the highest volume since the fourth quarter of 2010. The numbers are based on secondary market loan purchases reported by Fannie Mae, Freddie Mac, and Ginnie Mae. For 2010 the industry funded $1.67 trillion in home loans, $22 trillion more than the $1.45 trillion in 2011. At the current rate the industry could expect to see $1.8 trillion this year, though most analysts and economists expect loans to decrease towards the year’s end.

(Image credit: MoneyControl)

Big Box Discounter Offering Mortgages

May 2nd, 2012 Comments off

Discount merchandiser Costco is entering the mortgage and student loan business, OriginationNews tells MHProNews.com. Already into financial services with marine and recreational loans, credit cards, health and auto insurance, and investing services, Costco has partnered with New Jersey-based First Choice Bank and ten other lenders to offer full-service home loans. The company has already written 10,000 mortgages for its members.

(Image credit: ForeclosureListings)

Good News, Bad News…

March 7th, 2012 Comments off

According to research done by Moody’s Analytics and Equifax, the total balance of outstanding home loans dropped $1 trillion, 10.4 percent, in the last four years, an indication of consumers getting rid of debt. Although mortgage rates are at historic lows, credit remains tight, which MHProNews.com has learned could be the reason for the outstanding home loans falling in value. At the same time, consumers are responding to more solicitations for credit cards. Equifax Chief Economist Amy Crews Cutts says consumers are set to spend again, according to HousingWire. She says, “The most promise we have seen has primarily been within the consumer spending and auto financing sector, while the housing market continues to see incremental progress toward gaining traction in the coming months.” One point of concern is student loans. As people lost jobs, they returned to school, but that segment is now seeing a higher than normal rate of delinquency.

(Graphic credit: MoneyControl)

New Hampshire’s Newest MH Community to Go Co-op

February 16th, 2012 Comments off

The 54 homeowners at Big W Mobile Home Park in Derry, New Hampshire, are celebrating ownership of their community. The New Hampshire Community Loan Fund (NHCLF) and ROC -NH (Resident Ownership Capital-New Hampshire) are celebrating their birthing of the 100th MHC in New Hampshire. Not one of the 100 has failed, through good and bad economic times over 27 years. The NHCLF provides financing and support for people of modest means to have decent, affordable housing. ROC-NH is part of ROC-USA which has been converting LLCs to cooperative ownership since 1984. Resident-ownership also means access to Cooperative Home Loans, a program which provides fair, fixed-rate mortgage loans to residents of MHCs. Craig Welch, vice president of housing wrote in his email to MHProNews.com, “The Derry homeowners join more than 5,600 others in NH, and another nearly 1,500 homeowners in 22 communities in the ROC-USA network, who enjoy the security, stability and affordability that cooperative resident ownership provides.”

(Photo credit: ROC-USA)

MHARR Head Heading to Hearing

January 30th, 2012 Comments off

HousingWire tells MHProNews.com Wednesday’s hearing before the House Financial Services Committee will feature John Bostick, Chairman of the Manufactured Housing Association for Regulatory Reform (MHARR), and president of Sunshine Homes. He will testify how HUD’s failure to implement certain provisions of the Manufactured Housing Improvement Act of 2000 has hindered credit to MH buyers and maintained the “trailer park” image of the industry as a whole. “Specifically, FHA Title I manufactured housing lenders must have minimum net worth of at least $10 million — as compared with $2.5 million for site-built lenders — plus 10% of the dollar amount of all outstanding manufactured housing mortgage-backed securities,” according to Bostick’s prepared testimony. He further states Fannie Mae and Freddie Mac continue to discriminate against MH buyers despite Congress’ admonition to create loans for the secondary market. In Nov. 2011, Kevin Clayton of Clayton Homes testified before the same committee and said less than one percent of GSE (government-sponsored enterprise) business is tied to manufactured home loans.

(Graphic credit: MHARR)

MetLife Exits Home Loan Business

January 12th, 2012 Comments off

Metlife Home Loans LogoFrom Housingwire, MHProNews.com learns that MetLife recently closed its forward home loan business. The company will continue to originate reverse mortgages, however. MetLife had had been trying to sell the division since October due to what the report says the company considered excessive regulations post-banking crisis. The insurance giant also recently sold its MetLife Bank in December to GE Capital Financial. Effective immediately, Irving, Texas-based MetLife Home Loans will no longer accept new mortgage applications. MetLife expects those already in the process to close within 90 days. Writing more than $22 billion in home loans, MetLife was the United States’ 13th largest mortgage originator in 2010.

(Image Credit: MetLife)

New Federal Rules May Tighten Credit More

April 12th, 2011 Comments off

CNNMoney reports that new rules proposed by federal regulators last week are intended to discourage risky investments, but will likely make credit even tighter.  On home loans where banks receive less than 20 percent down payment, they will be required to keep five percent of the loans instead of selling them as securities.  The end result could be that banks will not make loans where less than 20 percent is put down, adding weariness to an already wearied housing market.