All posts tagged Homeowner Affordability and Stability Plan

Interest Rates And Obama’s Refinance

by Justin Miller on June 11, 2009 in Conventional Loans, FHA Loans, Foreclosure, General News, Interest Rates, Loan Modification with No comments

Rates have continued to increase.  This morning mortgage-backed securities are trading in positive territory.  As we already know higher interest rates could cause a problem with the recovery.  “Rising interest rates threaten to dim prospects for a housing recovery and choke off a refinance wave that was a major plank of the Obama administration’s economic-stimulus efforts.”

I do believe we are going to see rates improve over the next few weeks especially with the Fed meeting on the 23rd and 24th.  Hopefully they comment on their buying of bonds.  The article below makes a great point about how bonds are selling off as though they are risky investments.  They aren’t.  They are bonds.

Enough negative talk.  This could be great news if it really happens and there aren’t huge costs involved on the higher loan to values.  “A Treasury Department official said the administration is considering a range of tweaks to the program, including extending the program to borrowers with loan-to-value ratios as high as 125%. Freddie Mac on Friday announced changes designed to make its program easier to use.”

http://online.wsj.com/article/SB124467701447204165.html#mod=testMod 

Are Low Interest Rates Gone?

by Justin Miller on June 1, 2009 in Conventional Loans, FHA Loans, Interest Rates with No comments

I don’t think that is the case, at least not yet,  however they are certainly higher and face some resistance.  “This surge in mortgage rates, if it continues, is ominous news all around. It’s bad for those trying to refinance an existing mortgage, those looking to buy a new home, and those looking to sell their home. It may also be bad for the stock market, and maybe even for the dollar, too. More on that later.”

http://online.wsj.com/article/SB124381108186970343.html

Hope For Homeowners

by Justin Miller on May 6, 2009 in FHA Loans, Foreclosure, Guideline Changes, Loan Modification with No comments

“The Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes.”

http://www.hud.gov/news/2009-04-28.cfm

 

And they better do this b/c below is a scary statistic and one that could be even higher depending on who is calculating the value.  “The downturn in home prices has left nearly 30% of U.S. homeowners owing more on a mortgage than their homes are worth, according to one new study, signaling additional challenges to the Obama administration’s efforts to stabilize the housing market.”

 

However with the Hope for Homeowners (if they actually help as many as they said they were going to this time) and according to the rest of this article they may increase the loan to values on the current Obama Plan.  I don’t know how many lenders will allow this after they re-evaluate the risks involved just as Jaime Dimon, Chase’s CEO, decided with the current program and won’t allow up to 105% loan to value.  “For instance, fewer will qualify to take advantage of a key component of the Obama administration’s plan to stabilize the housing market. Under the plan, announced in February, as many as five million homeowners whose loans are owned or guaranteed by government-controlled mortgage giants Fannie Mae and Freddie Mac can refinance their mortgages, but only if the mortgage loan is a maximum of 105% of the home’s value. Government officials are considering an increase in that limit. “It’s a question that we’re looking at,” said James Lockhart, director of the Federal Housing Finance Agency, which regulates Fannie and Freddie.”  http://online.wsj.com/article/SB124156804522089735.html 

New Home Affordable Website

by Justin Miller on March 26, 2009 in Bailout, Foreclosure, Loan Modification, Refinance with No comments

Below is a new site for the Home Affordable program. 

http://makinghomeaffordable.gov/

Is It Better To Walk Away From Your Home?

by Justin Miller on March 19, 2009 in Bailout, Foreclosure, Loan Modification with 4 Comments

I wouldn’t advise anyone to just walk away from their home but the article below makes a lot of good points as to why people would think of doing it especially if the Obama Plan doesn’t help them. 

http://finance.yahoo.com/loans/article/106750/Thoughts-on-Walking-Away-From-Your-Home-Loan

Mortgage Investors Want Change To Obama’s Plan

by Justin Miller on March 15, 2009 in Bailout, Foreclosure, Loan Modification, Refinance with No comments

Is it that no one understands how mortgages are bundled up and sold off?  It seems that way or they just don’t care.  “Investors who hold billions of dollars of residential mortgage-backed securities are pressing the Obama administration to make changes in its housing rescue plan.

Participation by these investors will help determine the success of President Barack Obama’s $75 billion plan to reduce foreclosures and help stabilize the housing market. But many investors are critical of features of the program and have been meeting with Treasury officials in an effort to influence parts of the plan, such as how it treats second mortgages.”

http://online.wsj.com/article/SB123682290961203725.html

Freddie Mac Reports Loss, Has Restrictions On Refinances

by Justin Miller on March 15, 2009 in Bailout, Foreclosure, Loan Modification, Refinance with No comments

The WSJ reported that Home-mortgage company Freddie Mac reported a loss of $23.9 billion for the fourth quarter and said it will need a $30.8 billion injection of capital from the U.S. Treasury.

Meanwhile, a new mortgage-refinancing program offered by Freddie as part of the Obama administration’s foreclosure-prevention plan doesn’t allow borrowers to shop around for the lowest fees. Brad German, a spokesman for the government-backed provider of funding for mortgages, said any borrower with a Freddie-backed loan who wants to refinance under the program needs to do so through the company that services his current loan. Loan servicers, typically owned by lenders, collect monthly payments.

Fannie Mae, said borrowers with Fannie-backed loans will be able to seek refinancings under the program from more than 30,000 lenders nationwide. While Fannie is letting borrowers shop around, those deemed a higher risk are hit with fees that can total 3% or more of the loan balance. Freddie’s maximum fee on these refinancings is 0.25%.

http://online.wsj.com/article/SB123679936260698821.html

Be Careful Of The Scams With Obama’s Plan

by Justin Miller on March 11, 2009 in Bailout, Foreclosure, Loan Modification, Refinance with No comments

You need to speak with someone who is honest.  You will begin receiving letters in the mail that look like important documents in order to get you to call.  Here is what The Wall Street Journal had to say:

 

“President Barack Obama’s foreclosure-prevention plan, announced last week, is designed to give several million troubled borrowers another chance to lower their mortgage payments. But government officials and counseling agencies warn that it also presents a golden opportunity for firms to fleece unsuspecting borrowers.

Over the past few years, there has been a proliferation of firms that charge fees for what they promise will be quick results in negotiating with banks to get easier loan terms. In many cases, the firms take the homeowner’s money but never deliver the services promised. Even when the firms do deliver what they promise, they charge fees — often more than $1,000 — for services borrowers can receive free. In July, Congress increased to $360 million the funds it has allocated for foreclosure-prevention counseling to organizations that provide the service without charging consumers.

“Borrowers don’t need to pay anybody,” says William Apgar, a senior adviser to Shaun Donovan, President Obama’s new secretary of housing and urban development. But Mr. Apgar and others fear that the recent headlines about the Obama housing plan will prompt more consumers to seek help in the wrong places.”

http://online.wsj.com/article/SB123673412204590481.html?mod=todays_us_personal_journal

Does Fannie Mae or Freddie Mac Own My Loan?

by Justin Miller on March 9, 2009 in Bailout, Foreclosure, General News, Loan Modification, Refinance with 2 Comments

With the New Obama Plan you will need to know if you have a Fannie Mae or Freddie Mac Loan. 

 

For Fannie Mae go to http://www.fanniemae.com/homepath/homeaffordable.jhtml

 

For Freddie Mace go to:   http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/avoiding_foreclosure_form.html

 

Note that the address must be entered exactly i.e. Rd. or Road, St. or Street. 

Lenders To Keep A Part of Every Loan

by Justin Miller on March 9, 2009 in Bailout, Foreclosure, General News, Loan Modification with No comments

I think this is a great idea.  According to MarketWatch, “House Financial Services Committee Chairman Barney Frank, D-Mass., told reporters at a press conference that he is considering legislation that would require mortgage lenders to keep a stake in every loan that is securitized. “

 

Also, this may be impossible but ““Rep. Tom Price, R-Ga., plans to introduce legislation that would prohibit the use of government funds to modify mortgages for individuals that “lied about their income on their mortgage application.” Price’s measure would also prohibit government funding to any lender that failed to follow proper underwriting standards.”

http://www.marketwatch.com/news/story/story.aspx?guid=%7BAABB222B%2D4D22%2D4E51%2D9C76%2D6B3D1E2ABF2B%7D&siteid=rss

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