Obama Administration’s Making Home Affordable Plan Has Problems
Up to 9 million homeowners who are at risk of losing their homes were supposed to benefit from the Obama administration’s Making Home Affordable program. Participants were supposed to be able to lower their monthly mortgage payments through refinancing.
The plan was supposed to help more than 4 million homeowners by guaranteeing loans through Freddi Mac and Frannie Mae; other citizens in need were meant to benefit from the $75 billion in incentives given to providers in order to administer mortgage modifications. (more…)
Mortgage Applications Rate Lowest Since November
With mortgage rates the highest they have been all year, and borrower costs rising, the housing crisis seems to be deepening.
The number of people applying for U.S. mortgages continues to fall, hitting a level lowest since November last week. According to the Mortgage Bankers Association, application rates have fallen over 7% since the previous week, creating an overall decrease of 16% decrease in the index of applications for purchase or refinancing. (more…)
American Housing Foundation Files for Bankruptcy
Investors and lenders have been trying to force the American Housing Federation into bankruptcy since April; yesterday, the organization surprised all of them by filing for bankruptcy voluntarily.
A nonprofit organization, AHF was founded in 1989 and runs over 13,000 residential units and specializes in work force housing. Though this service has helped many low-income individuals and families secure a place to live, it, like many housing businesses today, is apparently not without controversy. (more…)
Mortgage Rates at a Seven-Month High
It looks like wheedling in new buyers with low rates like bribing children with candy simply isn’t working for mortgage providers. In fact, they seem to have given up on the strategy completely, as evidenced by yet another hike in mortgage rates this week.
Rates are now the highest they have been seven months, with the average 30-year fixed-rate mortgage at 5.59% and 15-year fixed-rate mortgages at 5.06%. Both of these numbers are still lower than last year’s rates at the same time.
‘The Worst is Yet to Come’
Business owners should start stocking up on beans and potatoes, because apparently the worst of the housing crisis hasn’t even hit yet.
“The worst is to come. .. typically, there’s a lag between when the economy softens and when defaults actually occur… Like all firms that hold these kind of mortgages, we’ll have some issues,”said Steven Kandarian, chief investment officer at Metlife Inc.
Kandarian says that once the current economic crisis ends, commercial mortgage delinquencies will still rise for two to three years. (more…)
Foreclosure Count Hits One Million
The count as of today is actually higher than one million–an unprecedented number in the United States up to this point. It’s even estimated to exceed two million by year’s end–and up to 9 million by 2012.
Sure, the Obama Administration has helped over 55,000 homeowners so far; but the Center for Responsible Lending estimates that there are 6,500 new foreclosures filed daily–or one every 13 seconds. These aren’t great odds in the least. (more…)
Mortgage Rates on the Rise
During the last week, mortgage rates have risen a half-point, the highest they have been since November. This may not sound like much. But that half-point can mean a few hundred dollars per month on a homeowner’s bill.
It’s no wonder that over 5% of borrowers are now behind on their payments–and have been for two months or more. And if rates keep moving on up, ability to pay will certainly decrease at a similar steady rate.
Record High for Mortgage Delinquencies
During the first quarter, there were a record number of mortgage delinquencies this year–the highest, at least, since surveys of mortgage payments were established in 1972.
Though the government has been making valiant efforts to curb the crisis, it seems that job losses are simply stronger than the government. Even so-called reliable borrowers with the best credit ratings are experiencing difficulty with payments–and even foreclosure.
The delinquency rate overall is just over 12%. At this time last year, it was 8%. (more…)
Countrywide = Risky Lending
Faced with a stack of lawsuits, allegations and regulatory investigations into its new acquisition, Bank of America swiftly dropped the name “Countrywide,” now referring to its mortgage programs as simply “Bank of America Home Loans.”
Though they’ve cast off the newly unpopular name, Bank of America still defends the former Countrywide, stating that one of the most recent lawsuits filed against the company is without merit and that the corporation “intends to vigorously defend the case.” (more…)
Mortgage Fraud Running Rampant
There is an infestation in the United States today that has nothing to do with rats or roaches or swime flu. This phenomena that appears to be affecting every corner of the country in none other than mortgage fraud.
Six in Dallas sent to federal prison for fraud. Three in Kansas City pled guilty for a $12.6 million conspiracy. Brokers in Minnesota, Detroit and Florida have all been faced with charges and indicted. (more…)