Repayment Plans Dominate Fannie and Freddie Loan Workouts
Fannie Mae and Freddie Mac saw an increase in loan modifications during the fourth quarter, but inferior repayment plans continue to dominate loss mitigation efforts, according to the latest report from the Federal Housing Finance Agency.
A total of 23,777 loan modifications were carried out during the fourth quarter, up from 13,488 in the third quarter, but still rather dismal numbers for the Enterprises’ stable Read more
FHA Loan Cash-Out Refinance Guidelines Changing – For the Worse!
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If you’re looking for the best cash-out refinance option available in today’s mortgage market, look no further than the FHA loan. At Quicken Loans we call it the FHA Express, and it offers easy and quick refinancing choices.
Cash-Out Refinance With an FHA Loan
The top benefit of refinancing with an FHA loan is the very generous cash-out amount that FHA loans offer. Right now, that amount is 95% of your home’s value, Read more
Decoding President Obama’s Housing and Loan Modification Plan
–>Still Confused by Whether the President’s “Making Home Affordable Plan” Will Help You? We Asked Quicken Loans Chief Economist Bob Walters to Decipher the Loan Modification and Refinance Plan.
If you’re like everyone else in America, you’ve probably heard about the President’s recently unveiled plan to help millions of homeowners to refinance or modify their mortgages.
However, despite plenty of Read more
Details of $75 Billion Loan Modification & Refinancing Programs Released
The details of the federal government's $75 billion loan modification and refinancing plans were released this morning. According to Housing Secretary Shaun Donovan, the plan could help financially stabilize up to 9 million homeowners.
The plan is outlined as 2 parts: one to modify loans for struggling homeowners and the second to refinance loans for homeowners with little or no equity.
The first is to aid homeowners Read more
Chase Banking Chief Says Loan Mod Re-Default Rate Not So Bad
JP Morgan Chase’s retail banking chief Charles Scharf told shareholders the delinquency rate on modified mortgages isn’t as bad as what’s been tossed around lately.
During the company’s investor day in New York, he said loan modifications can be successful “if done properly,” meaning if important things like income are actually verified the second time around.
He noted that a loan modification Read more
Higher Loan Limits, Tax Credit Included in Stimulus
Things are looking up, kind of.
As expected, higher conforming loan limits and a larger homebuyer tax credit are part of the latest stimulus package to be signed into law by President Obama in Denver today.
The $787 billion bill will push the high-cost conforming loan limit to as much as $729,750 in more expensive regions of the country, helping scores of borrowers refinance into more affordable loans Read more
Government May Subsidize Loan Modifications
In an effort to boost loan workouts and their related effectiveness, a plan is reportedly in the works to give mortgage lenders a subsidy if they cut mortgage rates for troubled borrowers, according to the Washington Post.
The Obama Administration is apparently mulling over a proposal that would provide greater incentives for lenders to offer loan workouts to more borrowers in need, not just those close to foreclosure.
Tarp Money Used to Fund 3.5 Percent 30-Year Fixed Loan Program
North Carolina-based Citizens South Bank announced yesterday that it will use the entire $20.5 million in TARP money it received to fund a 30-year fixed loan program with a 3.5 percent start rate.
The loan program will carry a teaser rate of 3.5 percent for the first 24 months, and then adjust into a 30-year fixed-rate mortgage set at 5.5 percent for the remaining duration.
“CPP funds issued as part Read more
Freddie Mac Launches Alt-A Loan Workout Plan
Mortgage financier Freddie Mac is piloting its new “Workout Strategy For High Risk Loans” designed to keep more of its most troubled borrowers in their homes.
Third party servicers that specialize in Alt-A loans and other higher risk mortgages, such as Ocwen Financial, will be employed to handle the surge in distressed mortgages.
Initially, the program will focus on an estimated 5,000 low documentation Read more
High Cost Loan Limit Drop Could Hinder Borrowers in 2009
As the New Year gets underway, a number of new laws are in effect, including things like bans on texting while driving.
With regard to mortgage, loan limits have also changed, which could mean big, bad surprises for those looking to refinance or purchase a new home in more expensive areas of the country.
As of January 1, the so-called high-cost conforming loan limit fell roughly 14 percent from $729,750 Read more