Mortgage News

A Down Payment Anomaly
By Bob Tedeschi
The New York Times
September 4, 2009

HOME buyers are often advised to come up with at least a 20 percent down payment, or face the likely additional expense of private mortgage insurance. But this year, at least, that counsel would not have saved them as much money as in the past.

Demise of lender leaves confusion in its wake
By Mary Ellen Podmolik
The Chicago Tribune
September 4, 2009

The last thing homeowners needed was more uncertainty about their mortgages but that's just what they got with the early August shutdown of Taylor, Bean & Whitaker Mortgage Corp.

A month later, that uncertainty hasn't ebbed much.

The Ocala, Fla.-based company was the 12th largest U.S. home loan company before it was suspended by federal agencies for possible fraud, ceased operations and subsequently sought Chapter 11 bankruptcy protection.

A year later, exit from Fannie Mae, Freddie is a perplexing quandary for US government
By Alan Zibel
The Hartford Courant
September 4, 2009

WASHINGTON (AP) — A year after the near-collapse of Fannie Mae and Freddie Mac, the mortgage giants remain dependent on the government for survival and there is no end in sight.

Lenders tighten rules over job transfers
By Kenneth R. Harney
The Chicago Tribune
September 4, 2009

Real estate may be showing signs of a turnaround in many local markets but the nation's largest mortgage players continue to ratchet up underwriting rules, making home purchases more difficult for some.

Mortgage giant Fannie Mae, for example, issued a laundry list of tougher policies in June that could directly affect thousands of buyers, especially those involved in job-related transfers.

Mortgage Rates Fall, Boost Sales
The Wall Street Journal
By Amy Hoak
September 4, 2009

CHICAGO -- Interest rates on home mortgages dropped this week, with the 30-year fixed-rate mortgage averaging 5.08%, according to Freddie Mac's weekly survey of conforming mortgages.

The 30-year fixed-rate mortgage averaged 5.14% last week and 6.35% a year ago. Fifteen-year fixed-rate mortgages also dropped, averaging 4.54% for the week ending Sept. 3, down from 4.58% last week. The mortgage averaged 5.9% a year ago.

Mortgage rates dip, still above record lows
Average rate for a standard 30-year, fixed-rate loan is 5.08 percent
The Associated Press
September 3, 2009

Rates for 30-year home loans edged down this week, remaining close to record lows reached over the spring.

The average rate for a 30-year fixed mortgage was 5.08 percent, down from 5.14 percent a week earlier, mortgage company Freddie Mac said Thursday. Rates, while above the record low of 4.78 percent hit in the spring, are still at attractive levels for people looking to buy a home or refinance.

Low Mortgage Rates Are Back—For the Moment
By Brett Arends
The Wall Street Journal
August 28, 2009

If you missed out on refinancing your mortgage last spring, here's another opportunity.

A window has opened up in the mortgage market—thanks to some unusual movements in the bond market, rates have come down in recent weeks, and someone with good credit may be able to get a 30-year fixed rate for as little as 5% right now.

The Wisdom of Seller Financing
By June Fletcher
The Wall Street Journal
August 28, 2009

Q. My house has been on the market for seven months. We got our first offer this week. It was for the full asking price, but the buyer wants us to finance the mortgage. The buyer says that he lost his job last year and had to file for bankruptcy, but now has found another job and is paying off his bills. Because of the bankruptcy, he can't get a traditional loan. He has offered to pay us a better interest rate than we could currently get on a certificate of deposit.

Mortgage Rates Rise, But Activity Picks Up Too
By Nick Timiraos
The Wall Street Journal
August 26, 2009

Mortgage rates continue to hover in the low 5% range, producing a slight boost in mortgage activity.

Rates on 30-year fixed mortgages rose modestly to 5.24% last week, from 5.15% in the previous week, but still below 5.38% of two weeks ago, according to the Mortgage Bankers Association’s weekly survey of mortgage applications.

Mortgage Fraud: A Classic Crime's Latest Twists
As 'Reverse' Loans Grow More Popular, Scams Put Older Adults at Risk
By Anne Tergesen
The Wall Street Journal
August 27, 2009

Last summer, Lawrence Ford jumped into the fast-growing market for so-called reverse mortgages. The retired auto mechanic and horse trainer used the money he received to pay off his existing $70,000 mortgage and "piddled away" the remaining $24,000 on things like restaurant meals for his four girlfriends, he says.