Mortgage News

FDIC Draws Brisk Bidding on Loans by Failed Banks
The Wall Street Journal
By Lingling Wei
December 23, 2009

Investors are jostling for the chance to buy a $1.1 billion package of commercial real-estate loans extended by failed banks, as these once-toxic assets attract growing interest.

More than a dozen investors, including Texas banker Andrew Beal, have submitted bids to the Federal Deposit Insurance Corp. for the portfolio of loans held by Franklin Bank, IndyMac Bank and other failed lenders, according to people familiar with the matter.

U.S. lifts $400 billion cap for Fannie, Freddie
Treasury: Lifeline cap nixed to remove uncertainty of U.S. commitment
The Associated Press
December 24, 2009

WASHINGTON - The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

Down-Payment Standards Eased
By Ruth Simon
The Wall Street Journal
December 19, 2009

Some mortgage insurers and lenders are beginning to relax their down-payment requirements, in a sign of increased confidence in the housing market.

The changes, which are being done on a market-by-market basis, mean buyers in some parts of the country can now borrow 95% instead of 90% of a property's value. Until recently, mortgage companies had tighter standards for these markets because of falling home prices.

Getting a Mortgage in 2010: 10 Things to Know
By Luke Mullins
US News & World Report
December 03, 2009

Freddie: 30-Year Mortgage Rate At 38-Year Low
By Joan E. Solsman
The Wall Street Journal
December 4, 2009

Mortgage rates generally fell again this week, with the average rate on 30-year fixed-rate mortgages reaching the lowest level in at least 38 years, according to Freddie Mac's weekly survey.

"Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time low while the average rate on five-year (adjustable-rate mortgages) hovered near its record set in the previous week," Frank Nothaft, Freddie's chief economist, said Thursday.

HAMPering Obama's Home Plan
By Peter Eavis
The Wall Street Journal
December 02, 2009

The Treasury's anger is perhaps telling.

The Obama administration wants banks and loan-servicing companies to amend hundreds of thousands of mortgages so they are easier for borrowers to pay—usually without reducing the principal owed. But this weekend, a Treasury official said lenders weren't doing enough—suggesting public embarrassment for foot-draggers.

Judge blasts bad bank, erases 525G debt
By KIERAN CROWLEY, RICH WILNER and DAN MANGAN

A Long Island couple is home free after an outraged judge gave them an amazing Thanksgiving present -- canceling their debt to ruthless bankers trying to toss them out on the street.

Suffolk Judge Jeffrey Spinner wiped out $525,000 in mortgage payments demanded by a California bank, blasting its "harsh, repugnant, shocking and repulsive" acts.

The bombshell decision leaves Diane Yano-Horoski and her husband, Greg Horoski, owing absolutely no money on their ranch house in East Patchogue.

Hiring Boom in Mortgage Restructuring
By Kyle Stock
The Wall Street Journal
November 19, 2009

Mortgage restructuring for strapped homeowners has emerged as a rare growth area in the economy as companies in the field keep hiring.

Four of the largest mortgages servicers -- Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. -- have collectively hired almost 17,000 people this year, mostly to work with financially ailing homeowners. With the number of defaults rising, many are planning to keep adding staff.

More Homeowners Fall Behind on Mortgages
By James R. Hagerty
The Wall Street Journal
November 20, 2009

About one in seven American households with mortgages is behind on payments or in foreclosure, according to new data from the Mortgage Bankers Association. That is up from about one in 10 a year ago.

The Lowdown on Home-Buyer Tax Credits
By Laura Saunders
The Wall Street Journal
November 12, 2009

Last week, President Barack Obama signed a law that extends through next spring a temporary tax credit of up to $8,000 for some first-time home buyers, which was due to expire Nov. 30. The law also adds a new tax credit of up to $6,500 for certain repeat home buyers. The package, which the government estimates will cost a total of $11 billion, is intended to help spur housing sales, a critical part of the economy.

Here are some answers to common questions about the new rules.