The Obama administration announced broad outlines of the revised Home Affordable Refinance Program on Oct. 24. Fannie Mae and Freddie Mac issued guidance last week that filled in most of the details. HARP 2 greatly reduces or eliminates the risk-based fees Fannie and Freddie charge on many loans and virtually eliminates the chance that [...]
With traditional investments delivering low returns, some are considering buying rental housing. However, potential investors should do their homework and avoid the following common mistakes. Making sense of the story Investing in real estate right now can be profitable, if everything goes as planned. Rents are increasing in many areas, and more properties may be [...]
Lenders are losing out on thousands of dollars–sometimes within just mere hours–due to short sale fraud, which is skyrocketing and plaguing the housing market, investigators say. In one of the most common short sale scams, an investor submits a low offer on a home that is underwater, in which the borrower owes more on [...]
In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts. The deadline to submit loan applications was July 1. According to an email from Bank of America, conventional loans [...]
Unless Congress takes action, the current loan limits will expire on Sept. 30 and the cost of a mortgage could rise significantly, especially in high-cost areas such as California. More than 30,000 California families could face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by [...]
Borrowers who can afford higher mortgage payments, and who meet lenders’ stricter loan guidelines, often opt to replace their 30-year mortgages with shorter term loans at near-record low rates. The latest Freddie Mac quarterly survey of homeowners who refinanced found that more than one in three borrowers who refinanced from a 30-year fixed-rate loan opted [...]
For the first time since 2009, Fannie Mae and Freddie Mac are raising risk fees charged to lenders on loans they buy for resale to investors. Fannie and Freddie also are adding risk fees to more loans offered to borrowers with exemplary credit. Although lenders could absorb the cost, most are expected to add the [...]
Part of the financial reform bill signed into law by President Obama includes the creation of a Consumer Financial Protection Bureau, which will write new rules and monitor problems and abuses in areas such as residential real estate settlements, credit scores, “truth in lending,” and equal credit opportunity. KEEP THIS IN MIND • Before the [...]
Just as we are getting some signs of stabilization in the housing market, we are charting into unknown waters starting next week. The Federal Reserve will end its purchase of mortgage securities this week. This could mean that mortgage rates will rise and put a damper on home sales. However, it’s expected that private investors [...]
According to a news release, the government is giving homeowners another year to refinance their loans under a little-used program designed to help borrowers whose homes have plummeted in value. My experience with clients who have tried to refinance their homes have had a total horrible experience with their mortgage holders. The Obama administration effort, [...]
