Mortgage News

Souring Mortgages, Weak Market Force FHA to Walk a Tightrope
The Wall Street Journal
By Nick Tiniraos
January 19, 2010

David Stevens bought his first home almost 25 years ago, paying just 3% down with a loan backed by the Federal Housing Administration. "I had no money in the bank," he says. "If it weren't for the FHA, I wouldn't have gotten that home."

Low Rates for Just a Few
By Bob Tedeschi
NY Times
January 14, 2010

MORTGAGE borrowers might be forgiven for sometimes feeling like victims of a bait-and-switch scheme.

For the last year or so, news has been trumpeted about historically low interest rates on 30-year fixed-rate loans; the rates tilted near 4.5 percent late last year and are now hovering above 5 percent. But when a borrower calls a mortgage broker to secure such a rate, he or she often fails.

Bank of America's Secret of Success: Real-Estate Banking
By Anton Troianovski
The Wall Street Journal
Janaury 13, 2010

Bank of America Corp.'s shotgun marriage to Merrill Lynch & Co. has produced plenty of ill will, and big profits in real-estate investment banking.

'Shot in the Arm' or Shot in the ARM?
Jump in Cofi, a Mortgage-Rate Benchmark, May Be Good for Banks but It Isn't for Homeowners
By Carrick Mollenkamp
The Wall Street Journal
January 15, 2010

Late in the day on New Year's Eve, holders of adjustable-rate mortgages across the country got a jolt when the rate used to calculate their loans jumped by two-thirds, sending their loan payments up by 9% in many cases.

Mortgage Rates Mostly Fall This Week; 30-Year Fixed at 5.09%
The Wall Street Journal
By Joan W. Solsman
January 8, 2010

Mortgage rates declined this week after a month of gains, with the average rate on 30-year fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's weekly survey of mortgage rates.

Found an interesting article that explains what mortgage brokers are and how they work and a MB company that does things a little differently called Up Front Mortgage brokers(UpfrontMortgageBrokers.org). Thought I would share.

The article can be found at:

http://www.realtytrac.com/contentmanagement/realtytraclibrary.aspx?chann...

Scott

Rules to Clarify Cost of Mortgages
By James R Hagerty
The Wall Street Journal
December 31, 2009

Americans have long struggled with the complexities of shopping for home mortgages. Now Uncle Sam is trying to help.

Federal rules that take effect Friday require mortgage lenders and brokers to give consumers better estimates of the barrage of costs they incur when taking out home loans. The new rules mandate a standard three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders' offerings.

Time line: The slow collapse of Fannie, Freddie
By The Associated Press
December 30, 2009

Key events in the government's rescue of Fannie Mae and Freddie Mac:

• March 2008: As the housing market unravels, regulators loosen restraints on Washington-based Fannie and McLean, Va.-based Freddie so they can expand their support of the mortgage market. The chief executives of both companies commit to boosting the companies' financial cushion as concerns about their financial health rise.

Fannie, Freddie proving too big to shrink
By Alan Zibel
The Associated Press
December 30, 2009

The government's Christmas Eve pledge of unlimited financial aid to mortgage giants Fannie Mae and Freddie Mac is aimed at making sure the housing market doesn't take another turn for the worse and cause the economic recovery to unravel.

This insurance policy taken out by the Treasury Department will help keep mortgage rates low, and may wind up being a gift of sorts to struggling homeowners and banks. But there's a catch: the housing crisis is now likely to cost taxpayers much more.

Questions Surround Fannie, Freddie
By Nick Timiraos
The Wall Street Journal
December 30, 2009

The government's move to ease the limits on the securities holdings of Fannie Mae and Freddie Mac has ignited a debate among analysts about what the companies will do with their longer leash.