Don’t be afraid to ask the customer service representative for your mortgage servicer who owns your mortgage. The owner, who is often referred to as the investor, might be different from the servicing company or bank that collects and processes your payments. Lenders often sell off the servicing rights, too. So it is very common […]
Posts Tagged: freddie mac
Are Banks Dumping Short Sales For Less Lucrative Foreclosures?
Are banks purposely rejecting short sales in favor of less profitable foreclosures? Maybe so, but why? Some say it may be for reasons such as avoiding fraud or favorable accounting rules allowing banks to foreclose on a home without having to write down a loss until that home is sold as opposed marking the loss […]
Government to Decrease Financial Involvement in Freddie and Fannie
The Obama administration has announced a ‘winding down’ of financial involvement in Fannie Mae and Freddie Mac at an annual rate of no less than 10% per year. Timothy Geithner predicts it will take three years for the housing market to recover. Then, an additional two to three years for legislators to come to agreement […]
Obama Administration Inconsistent On Mortgage Servicers
Homes in Stockton – Obama administration contradicts itself regarding mortgage servicers
Housing Regulators Plan New Fee System
U.S. housing regulators plan to impose a new fee system and standards for mortgage servicers by mid 2012. The Federal Housing Finance Agency instructed Fannie Mae and Freddie Mac to work with the Department of Housing and Urban Development in order to find ways to improve mortgage servicing for borrowers. They proposed imposing a service […]
Bank of America Settles with Freddie and Fannie
Bank of America has settled with Freddie Mac and Fannie Mae for $2.8 billion to silence claims that the bank sold them faulty loans. Investors are typically entitled to repayment by the lenders if the loans were sold on the basis of false assurances. Since Bank of America’s acquisition Countrywide Financial, they have been particularly […]
National Mortgage Standards are Encouraged
A group of investors together with academics has proposed a national standards system be created for Mortgages. The goal would be for such standards to be implemented as early as this spring.The group believes such standards could diminish conflict between servicers and investors, help avoid investor favoritism by servicers and set a standard for securities […]
Fannie Mae Announces New Loan Requirements
Download now or preview on posterous 12 02 10.pdf (24 KB) As of December 13th, Fannie Mae will allow buyers to use gifts and grants from nonprofit groups for their minimum 5% down payment. However since most lenders require a down payment of 10% or more, borrowers will still need to come up with the […]
Foreclosure Review Expected by January
According to Reuters, the Office of the Comptroller of the Currency (OCC) and the Federal Reserve are coordinating their reviews of lenders’ foreclosure policies, procedures and loan documentation. They also report that the major lenders also face state investigations and possible settlements would call for Bank of America Corp, JPMorgan Chase & Co, Wells Fargo […]
Central Valley Foreclosure Rates Down From Last August
Download now or preview on posterous 11 02 10.pdf (26 KB) CoreLogic reported that Stockton foreclosures rate was 4.41% this August, down from last year’s rate of 5.41%. Stockton’s mortgage delinquency rate also decreased with 14.87% at 90 days or more delinquent down from 15.72% a year ago. This is all good news, but Stockton […]
Home Sales Up in US but Down in CA – Lenders Partially to Blame
National home sales were up 10% this September according to the National Association of Realtors. Some factors contributing to this growth are low mortgage rates and high affordability, home prices are averaging 22% less of where they were five years ago. Affordability has been influenced by the weakness in home buying activity. September’s home sales […]
HUD Secretary – Foreclosure Problems Aren’t Systemic
In the Federal Task Force meeting on Wednesday, the Secretary of Housing and Urban Development, Shaun Donovan said they have been aware of violations with certain servicers for some time and they will “take actions”. However, he stopped shy of identifying any systemic problems instead citing isolated non specific problems. More details could become available […]
Federal Task Force Investigation into Foreclosure Fraud Could Lead to Criminal Charges
According to CNN, White House Press Secretary Robert Gibbs the Federal Housing Administration and Financial Fraud Enforcement Task Force are in the process of an investigation into foreclosure regulations and they will expect any bank that violated the law to be fully accountable for those actions. The Task Force is meeting on October 20, 2010 […]
Mortgage Rates at Fifty Year Lows – Good Time to Invest in Central Valley Real Estate
According to Freddie Mac, 30 year fixed mortgage rates declined to 4.19% and 15 year rates are at 3.62%. These are the lowest rates on record since the beginning of tracking such data, in 1971. Some experts have said we would have to look back approximately 50 years to see similar mortgage interest rates. With […]
Foreclosures – Suspended or Expedited? Depends on Who You Ask
On October 7, 2010, Barack Obama rejected the Interstate Recognition of Notarizations Act, which would require courts to accept documents that have been notarized in another state. Many are calling for a moratorium on foreclosures, stating banks have reclaimed homes on fraudulent documentation. Just last week, Bank of America, JPMorgan Chase and GMAC announced they […]
Understanding Deficiency Clauses
Recently a seller let an approved short sale go to foreclosure over a deficiency clause. This is a situation where everybody loses, the seller, the buyer, their agents, the servicers and the lenders all who spend their time and money to negotiate the approval. All wasted over two little sentences. “BAC Home Loans Servicing, LP […]
A Plan to Bail Out Those With Negative Equity
Download now or preview on posterous 09 09 10.pdf (90 KB) Keith Gumbinger, a vice president at HSH Associates mortgage consulting firm, has proposed a new mortgage relief program he calls “value gap coverage.” In this plan, he proposes that if a borrower did not cause the decline in their home’s value, and has been […]
Obama Launches New Mortgage Aid
Download now or preview on posterous Obama Mortgage Aid.pdf (70 KB) Over the last month we have mentioned in Could This Be The End of Short Sales? and No New Ideas From Mortgage Summit that it was rumored the Obama administration was about to order the government-controlled lenders to forgive a portion of the mortgage […]
Mortgage Rates Drop to New Low Record
Download now or preview on posterous 09 02 10.pdf (16 KB) Freddie Mac reports that the average rate for a 30-year fixed mortgage fell to another record low at 4.32%. The new 15 year fixed rate also dropped to 3.83%. These new record breaking rates show hope for a struggling housing market since the expiration […]
US Home Sales Plummet as Inventory Rises; Great Time for Central Valley Buyers
Download now or preview on posterous home sales plunge.pdf (60 KB) The latest figures for existing homes sales were released this week with very discouraging results. Existing homes sales have hit the largest monthly decline in history at 27.2%. This is coupled with a record breaking 11 year peak in housing inventory. On the bright […]
No New Ideas From Mortgage Summit
Download now or preview on posterous Mortgage Summit.pdf (29 KB) On August 12th in the post Could This Be The End of Short Sales? we wrote about how On August 17th the Treasury was going to be holding a hearing regarding the future plans for Fannie Mae and Freddie Mac. It was rumored that the […]
Fannie Mae and Freddie Mac Delinquencies Increase 50% in One Month for Most Credit Worthy Borrowers!
The increase in job losses, cut incomes and too much debt is taking it’s toll on the most credit worthy of borrowers. On April 21, Fannie and Freddie reported delinquencies among this group of homeowners rose fifty percent. The number of "prime borrowers" that are 60+ days delinquent on mortgages owned/guaranteed by Freddie and Fannie […]