Mortgage News

Paperwork Eased in Loan-Modification Program
By James R. Hagerty
The Wall Street Journal
January 28, 2010

The Obama administration is trying to simplify the paperwork for people seeking lower home-mortgage payments in an effort to avert more foreclosures.

The Treasury outlined new guidelines Thursday aimed at streamlining requirements for mortgage relief under the administration's Home Affordable Modification Program launched a year ago.

Fed holds rates at record low to aid recovery
By Jeannine Aversa
The Associated Press
January 27, 2010

The Federal Reserve has decided to hold interest rates at a record low and pledged to keep them there for an "extended period" to nurture the economic recovery and lower unemployment.

The Fed made no reference to signs of improvement in the housing market, which it had after its previous meeting. The Fed said it still expects to end a $1.25 trillion program aimed at driving down mortgage rates as scheduled on March 31. But it reiterated that it remains open to changing that timetable if necessary.

Reports on home sales this week pointed to a still-fragile housing market.

Pennsylvania Mortgage Relief Wins Fans
Some See a Model for the Federal Effort to Rescue Troubled Home Loans in Long-Running State Program
By Ruth Simon
The Wall Street Journal
January 26, 2010

With the Obama administration stumbling to modify large numbers of troubled mortgages, a little-known Pennsylvania program designed to assist struggling homeowners has been attracting increasing attention.

Get help - before you fall behind on your FHA mortgage
By Les Christie
CNN Money
January 22, 2010

Struggling to pay your FHA mortgage? Now you no longer have to be late with your payments to get help.

On Friday, the Federal Housing Administration announced that it will assist borrowers before they become delinquent. All you need do is prove your problems were caused by a reduction of income from a job loss, fewer paid hours, slashed wages or a decline in self-employed business earnings.

You may also qualify because of a change in household circumstances, such as a death or disability.

Fannie, Freddie Losses May Hit U.S.
By Nick Timiraos
The Wall Street Journal
January 22, 2010

The U.S. government's move to deepen its ties to mortgage-finance giants Fannie Mae and Freddie Mac by agreeing to absorb unlimited losses for the next three years is igniting a debate over whether it should bring the business operations of the companies onto its books.

No Plans for Mortgage-Principal Reductions
The Wall Street Journal
By Michael Crittenden And Ruth Simon
January 20, 2010

Despite increasing pressure to take more aggressive steps to keep troubled borrowers in their homes, the Obama administration said Wednesday that it had no immediate plans to alter its foreclosure-prevention program by increasing its reliance on reducing loan balances.

The administration's statement came as attorneys general and banking regulators in 14 states warned that policy makers needed to do more to stem the tide of foreclosures.

Loan Modifications Help the Housing Market
The Wall Street Journal
By James R. Hagerty
January 19, 2010

President Barack Obama's plan to ease mortgage terms for millions of distressed homeowners, announced nearly a year ago, now is widely panned for having fallen short of its ambitious goals.

FHA to Lift Mortgage Insurance Fees
The Wall Street Journal
By Nick Timiraos
January 19, 2010

The Federal Housing Administration will announce more-stringent lending requirements and higher borrower fees on Wednesday to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency.

Is Slashing Mortgage Principal the Answer?
By James R. Hagerty
The Wall Street Journal
January 17, 2010

Many critics of the Obama administration’s mortgage loan-modification program say it won’t work because it doesn’t do enough to address “negative equity,” the plight of people who owe more on their home loans than the current value of those properties. Without equity in their homes, these critics say, borrowers have little incentive to keep paying and are apt to walk away as soon as things get tough, if not before.

Paperwork Woes Plague Mortgage Plan
The Wall Street Journal
By Ruth Simon And Michael Crittenden
January 17, 2010

Thousands of homeowners participating in the Obama administration's foreclosure-prevention plan could miss a government deadline for completing necessary paperwork, putting them at risk of disqualification.