Posts Tagged ‘new mortgage’

More Ifs for a Full Housing Recovery

August 1st, 2013 Comments off

While many signs in the first half of 2013 indicate the housing recovery is real and palpable—housing starts are up 24 percent over the first half of 2012, existing home sales increased 32 percent year-over-year in June (excluding foreclosures and short sales), and the delinquency/foreclosure rate fell 14 percent—rising mortgage rates and low inventory have some speaking bubble talk. Mortgage credit remains tight except for those who have already proven their creditworthiness, and will probably remain so leading up to Jan. 2014 when new mortgage rules will help define what loans are risky and how lenders might have skin in the game. In addition, Generation Y members are still in their parents’ homes, and a 2013 Q2 vacancy survey reports 5.6 percent of all housing units are now vacant, up from 5.1 percent in 2009. But as HousingWire tells MHProNews, the (possible) elimination of the mortgage interest deduction and of Fannie Mae and Freddie Mac have the potential to seriously derail a housing market recovery.

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Details on New Mortgage Servicing

January 22nd, 2013 1 comment

Adding onto an MHProNews story from Jan. 21 about the Consumer Financial Protection Bureau’s (CFPB) new mortgage servicing rules, the Texas Manufactured Housing Association (TMHA) offers a detailed summary from the American Banker’s Association (ABA). CFPB director Richard Cordray says, “We will exercise our supervision and enforcement authority to make these rules stick for mortgage servicers across the entire market.” Covered are the following: Dual tracking, foreclosure timetables, force-placed insurance, loss mitigation, fair review process, new disclosures, fixing errors, and exemptions for smaller servicers. Cordray also suggested that more rules governing mortgages may be forthcoming later this month. For ABA’s summary, please click here.

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CFPB Issues New Mortgage Rules

January 10th, 2013 Comments off

The long-anticipated set of mortgage rules, including the qualified mortgage, promised by the Consumer Financial Protection Bureau (CFPB) have finally been released, according to CNNMoney. Designed to correct the lax underwriting practices that led to the housing bubble fiasco, the new rules require documented financial feasibility of repaying the loan has to be fully determined by the lender before issuing the loan—income, debts, assets, credit scores, ability to take care of the home, etc. In exchange, lenders and originators will be protected from lawsuits brought by borrowers or mortgage-backed bond holders. If borrowers fall a little short in meeting all the guidelines, the mortgage may still be issued but only if the borrower can show mortgage payments do not exceed 43% of the borrower’s pretax income. MHProNews has been informed these rules take effect Jan. 21 with a 12-month trial period. Exceptions to the rules, which will be finalized this spring, include: Certain non-profits that issue mortgages to low-income homebuyers are to be exempt; some refis through the Home Affordable Modification Program (HAMP); and for certain loans made by small community lenders.

(Photo credit: globeandmail–Canada homebuyers)

Mortgage Apps Rise

December 5th, 2012 Comments off

According to Mortgage Bankers Association’s (MBA) data, refinancings accounted for 83 percent of new mortgage business, up from 81 percent the week before, as mortgage applications rose five percent, apparently with little concern for the fiscal cliff issue. Tying the all-time low, the average contract rate for a 30-year FHA-insured loan fell two basis points to 3.34 percent. Nationalmortgagenews tells MHProNews 30-year fixed rate mortgages (FRMs) with jumbo loan balances rose four points to 3.79 percent. Tracking the market since 1990, MBA’s survey covers 75 percent of the retail residential mortgage market.

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Mortgage Apps Fall, FRM Nudges Up

October 31st, 2012 Comments off

Tracking the residential mortgage applications through a composite index and covering some 75 percent of all residential applications, the Mortgage Bankers Association (MBA) says new mortgage apps fell five percent for the week ending Oct. 26 on the heels of falling 12 percent and four percent the two previous weeks, respectively. Refinancing applications fell one point to 80 percent from last week of all new business. The average 30-year fixed rate mortgage (FRM) last week stood at 3.65 percent, .02 percentage points higher than the previous week, as nationalmortgagenews tells MHProNews.

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New MBA Chair: Repair Lenders Image

October 23rd, 2012 Comments off

NationalMortgageNews says the new Mortgage Bankers Association (MBA) Chairwoman Debra Still says the mortgage industry has to repair its image from top to bottom toward rebuilding the housing and residential finance sectors. Noting lenders have to be committed to do a better job, she says, “Nowhere do we have more control than in how we choose to operate our own companies.” Mortgage brokers need to rise above the profit motive alone, and make sure their employees are properly trained and have a “genuine duty of care” for their borrowers, which includes insuring the lending process is transparent. “As the stewards of our industry we must lead,” Ms. Still said. “Together we have the responsibility and the opportunity to leave a positive legacy.” As MHProNews has learned, with over 30 years of experience in the mortgage industry, Still is CEO and president of Pulte Mortgage, and will serve a one year term as MBA Chair. CEO and president David Stevens manages daily operations of the organization.

(Photo credit: MortgageBankers–Debra Still)

CFPB Proposes New Mortgage Servicer Rules

August 14th, 2012 Comments off

In the face of mortgage servicers role in the national housing crisis by changing loan terms resulting in borrowers losing their homes, and foreclosing on homes when lenders missed payments, the Consumer Financial Protection Bureau (CFPB) has proposed a new set of rules to make borrowing more transparent and thus better protect borrowers. USA Today says the proposals require the servicers to provide clear monthly billing statements; connect borrowers with staff if they are in danger of foreclosure; notify borrowers if the interest rate is to adjust in case they want to refinance, or if they are being charged for insurance; and to keep better records to avoid mistakes. CFPB has concentrated on servicers since borrowers do not choose a mortgage servicer. Servicers buy the rights to service loan accounts and can charge fees for late payments. MHProNews has learned the CFPB will finalize the rules in Jan. 2013 after public comment ends Oct. 9.

(Image credit: HUD/Dean Hayes)

Underwater Borrowers: A Chance to Breathe Again?

December 22nd, 2011 Comments off

OriginationNews tells MHProNews that after a two-year study, a Columbus, Ohio-based insurance company has introduced the Home Value Protection(HVP) plan to offer a modicum of protection to homeowners interested in refinancing or taking on a new mortgage. In light of the negative equity many homeowners face, Home Value Insurance Co. offers insurance against home devaluation due to local market conditions. With monthly premiums usually less than $50, homeowners can recoup the difference between the value of the home at the time the insurance is purchased and the amount for which the house is sold. Available for primary, owner-occupied single-family homes and condominiums, the program has been approved by the Ohio Department of Insurance. The policy will cover losses up to 25 percent of the home’s value, but with a ten percent deductible if the house is sold after the first year of coverage and five percent deductible if sold after the second year. The initiative fits nicely with the Home Affordable Refinance Program to allow homeowners to take advantage of low interest rates.
(Photo/graphic credit: Bankrate)