Mortgage News

Fannie and Freddie to Aid Mortgage Banks
By James R. Hagerty
The Wall Street Journal
October 08, 2009

Fannie Mae and Freddie Mac are preparing to introduce a program aimed at helping independent mortgage banks acquire the short-term credit they need to make home loans, according to people familiar with the plans.

Wall Street Wizardry Reworks Mortgages
Repackaged Investments Are Good for Bankers and Ratings Firms, but the Regulators Scoff
By Leslie Scism and Randall Smith
The Wall Street Journal
October 2, 2009

A new wave of financial alchemy is emerging on Wall Street as banks and insurers seek to make soured securities look better. Regulators are pushing back, saying the transactions don't have enough substance and stand to benefit bankers and ratings firms.

Will banks help kill the recovery?
Despite the Fed's efforts to flood the economy with cash, the broadest measure of the money supply is declining because most of the new money is just sitting in vaults.
By Jim Jubak
MSN Money
October 02, 2009

We've got a little problem in the economy. Tiny really. Nothing to worry about.

The government and the Federal Reserve are pumping money into the economy as fast as they can, yet the supply of money in the economy has started to fall -- and that, in turn, could endanger the entire economic recovery.

Worried About A Mortgage Rate Spike? You Have Options
By Brett Arends
The Wall Street Journal
September 30, 2009

Good news for prospective home buyers: You can find 30-year mortgages for less than 5% again. But those rates may not last . And these days it's almost impossible to lock in a rate while you hunt for a home. Banks—for understandable reasons—now want to evaluate a property before pre-approving borrowers.

$35 Billion Slated for Local Housing
By Deborah Solomon
The Wall Street Journal
September 28, 2009

The Obama administration is close to committing as much as $35 billion to help beleaguered state and local housing agencies continue to provide mortgages to low- and moderate-income families, according to administration officials.

The move would further cement the government's role in propping up the housing market even as some lawmakers push to curb spending at a time of rising debt.

Regulators close Ga. bank; 95th US failure in '09
By Marcy Gordon, AP Business Writer
September 25, 2009

Regulators on Friday shut down Atlanta-based Georgian Bank, the 95th U.S. bank to fail this year as loan defaults rise in the worst financial climate in decades.

In coming months, more banks are expected to buckle under the weight of commercial real estate and other loans that go sour. Those failures could imperil the insurance fund for deposits, already at the lowest point in nearly 20 years.

Mortgage rates are a point lower than last fall and close to spring's record lows
By Mike Sante, Interest.com
September 23, 2009

Mortgage rates are a point lower than last fall and close to spring's record lows
Mortgage rates have settled into a groove that makes buying or refinancing a home more affordable than it was last September.

The average rate for a 30-year, fixed-rate loan -- the most popular way to finance a home -- slipped to 5.36% in our latest weekly survey of major lenders taken Sept. 23.

Deadline looms for homebuyer credit
With no guarantee of an extension of the $8,000 tax credit, first-time buyers must aim to close before Nov. 30. Here's how to find a home and buy it quickly.
By Amy Hoak
MarketWatch
September 25, 2009

Tired of paying rent and enticed by a first-time-homebuyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. Yet he's already running out of time.

Avoid home price negotiation mistakes

Obama bolsters program that insures home loans
More homebuyers depend on government-insured FHA loans and defaults are rising. Federal housing officials take steps to lower the program's risk.
By Tami Luhby
CNN Money
September 18, 2009

With a growing number of homebuyers depending on government-insured loans, the Obama administration is taking steps to shore up the Federal Housing Administration program.

FHA Will Tighten Credit Standards
By James R. Hagerty
The Wall Street Journal
September 19, 2009

The Federal Housing Administration, which insures lenders against losses on home mortgages, announced Friday that it would tighten credit requirements but said it has enough reserves to handle expected claims.

"There will be no taxpayer bailout," FHA Commissioner David Stevens said.