Should the Government Help Homeowners With Underwater Mortgages?
Posted by admin / Under Mortgage Loan
According to real estate data firm CoreLogic, about 11 million American homeowners are underwater, and half of all U.S. mortgages are owned by non-government lenders. On Wednesday, President Obama announced plans to help homeowners facing foreclosure. Obama is seeking to make interests rates for borrowers lower, and he plans to pay for the estimated $5 billion to $10 billion cost with a fee on the nation’s largest banks. “It is wrong for anyone to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom,” Obama said. “I refuse to...
Published on Tuesday 7th of February 2012 08:11:03 AM
Obama's "Titanic" Mortgage Refi Plan - MBS Prices Could Fall 10% Pension Funds
Posted by admin / Under Mortgage Loan
Here is why these investors will lose a lot of money. Currently, Fannie Mae, Freddie Mac and Ginnie Mae (FHA) MBS are selling at what is called a “premium” above par value of 100. Let’s start with GNMA MBS. Notice that GNMA MBS prices are trading at a premium to par and the higher the coupon rate, the larger the premium. For example, the GNMA 6.0% coupon is currently selling for 109-22. That is $9 -22 above par. Why? Premium prices occur when sufficient number of borrowers do not refinance, either due transactions costs or inability to refinance their mortgage....
Published on Tuesday 7th of February 2012 08:11:03 AM
New York Sues Banks Over Mortgage Registry System[MERS]
Posted by admin / Under Mortgage Loan
New York Attorney General Eric T. Schneiderman sued three of the nation's largest banks over a private national mortgage registry system, contending it has resulted in a wide range of deceptive and fraudulent foreclosure filings. The lawsuit, filed in New York State Supreme Court in Brooklyn, names units of Bank of America Corp., J.P. Morgan Chase & Co. and Wells Fargo Corp. as defendants, as well as MERSCorp., which owns and operates the Mortgage Electronic Registration Systems, known as MERS. In his complaint, Mr. Schneiderman alleges that MERS has effectively eliminated the public's ability to track property transfers because those...
Published on Tuesday 7th of February 2012 08:11:03 AM
Rate on 30-year mortgage falls to record 3.87 pct.
Posted by admin / Under Mortgage Loan
WASHINGTON (AP) -- The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That below the previous record of 3.88 hit two weeks ago. The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s. Mortgage rates tend to track the...
Published on Tuesday 7th of February 2012 08:11:03 AM
Mortgage Spreads Highest Since 2008, Even Before Payroll Tax On Mortgages Go Into Effect
Posted by admin / Under Mortgage Loan
On December 29th, 2011, the Federal Housing Finance Agency (FHFA) acting director Edward Demarco released a statement detailing the increase to the guarantee fee charged by Fannie Mae and Freddie Mac, as part of the Temporary Payroll Tax Cut Continuation Act of 2011. As part of the legislation, FHFA is increasing the guarantee fee by no less than 10 basis points (bp), effective April 1st, 2012. This increase affects all single-family residential mortgages, and the additional 10 bp in fees will be remitted to the U.S. Treasury instead of being retained by the GSEs. Additionally, the minimum initial increase shall...
Published on Tuesday 7th of February 2012 08:11:03 AM
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