Mortgage applications rose 13 percent last week as consumers refinanced at the lowest rates in decades. The Mortgage Bankers Association says the increase was driven by a 17 percent surge in applications to refinance home loans. Those taken out to purchase homes fell by more than 3 percent. The numbers are adjusted for seasonal factors. Get the full story »
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Bankers push govt. involvement in mortgage market
The Obama administration invited banking executives Tuesday to offer advice on changing the government’s role in the mortgage market. Their response: stay big.
While the executives disagreed on the exact level of support needed, the group overwhelmingly advocated the government should maintain a large role propping up the nearly $11 trillion market.
Rate of missed mortgage payments jumps in 2Q
The rate at which U.S. homeowners fell behind on their mortgage payments remained stubbornly elevated in the second quarter.
In the three months ended June 30, the number of mortgage holders 60 days or more behind on their payments was 6.67 percent, credit reporting agency TransUnion said Tuesday. That’s a big jump from 5.81 percent in the second quarter of last year, and well above the historical norm of 1.5 percent to 2 percent.
Fed sets mortgage disclosure, compensation rules
The Federal Reserve on Monday published new rules aimed at protecting consumers from abusive mortgage practices, including clearer cost disclosures and a ban on payments to mortgage brokers for steering borrowers into loans with higher interest rates.
The Fed said it would ban payments from lenders to brokers based on interest rates paid by borrowers or other loan terms. The final rule, which takes effect on April 1, 2011, will end the so-called “yield spread premium” payments blamed for pushing millions of borrowers into unaffordable loans. Get the full story »
Mortgage closing costs jump 40% in Illinois
(AP Photo/Paul Sakuma)
Average mortgage closing costs have jumped 40 percent in Illinois this year, according to an online survey by personal finance company Bankrate Inc.
The origination and third-party fees on a $200,000 mortgage added up to $3,505 in the the 2010 survey, up from $2,486 a year ago.
Illinois was not alone in the dramatic rise. Nationally average closing costs increased 36 percent to $3,741. Bankrate said one of the reasons for the increase has to do with new regulations implemented in January. Lenders are now required to provide an estimate of title and closing fees within 10 percent of what the final cost will bd, or they’ll risk penalties. The regulations require more labor in getting a loan together. Get the full story »
29% of Chicago area mortgages underwater
Almost 29 percent of all home mortgages in the Chicago area were underwater during the year’s second quarter, an improvement from the 31.8 percent level recorded in the first quarter, Zillow reported Monday.
Still, far more mortgages locally are underwater, meaning more is owed on the loans than the homes are worth, than nationally. Zillow, an online real estate site, said the number of single-family homes nationally that are underwater was 21.5 percent in the second quarter, compared with 23.3 percent in the first quarter and 23 percent a year ago. Get the full story »
FHA to raise cost of loans next month
The Federal Housing Administration plans on Sept. 7 to raise the cost of loans backed by the agency in an effort to strengthen its cash-strapped balance sheet.
The move follows Senate approval this week of a bill to allow the FHA to nearly triple the annual fees it charges borrowers, though the FHA plans more modest increases at first. The House had approved its version and President Barack Obama is expected to sign the bill this month. Get the full story »
Bernanke sees many ways to go on Fannie, Freddie
Federal Reserve Chairman Ben Bernanke believes lawmakers have multiple options when it comes to replacing troubled mortgage giants Fannie Mae and Freddie Mac.
“There are a variety of organizational forms that might replace Fannie Mae and Freddie Mac that could likely provide mortgage credit without the systemic risks associated with these institutions in the past,” Bernanke said in a set of written responses to Rep. Marcy Kaptur (D., Ohio) released Friday. Get the full story »
Fannie Mae narrows loss, but asks for more aid
Fannie Mae says that its financial condition has vastly improved over previous quarters, but the mortgage finance company still requested more government assistance.
The government-run company said Thursday it lost $1.2 billion in the second quarter, down significantly from an $11.5 billion loss in the prior quarter. Last quarter’s loss was the smallest since the government took Fannie Mae and Freddie Mac into conservatorship in September 2008. Get the full story »
Premium for FHA mortgage insurance set to rise
The Obama administration, in an effort to shore up the Federal Housing Administration’s finances, is set to increase the annual premium the agency charges borrowers for mortgage insurance.
Under a measure that cleared Congress this week, the FHA would get authority to raise the annual premium it charges borrowers to 1.55 percent from the current 0.55 percent. President Barack Obama is expected to sign the bill into law. Get the full story »
U.S. mortgage rates fall below 4.5%
U.S. mortgage rates fell in the past week to the latest in a series of record lows amid concerns about the state of the economy, according to a survey released on Thursday by Freddie Mac.
Rock-bottom rates offer a glimmer of hope for a housing market struggling to gain traction since the recent expiration of popular home-buyer tax credits.
Interest rates on 30-year fixed-rate mortgages, the most widely used loan, averaged 4.49 percent for the week to Aug. 5, down from 4.54 percent a week earlier and 5.22 percent a year ago, according to the survey. Get the full story »
30-year mortgage rates hit 6th straight record low
Fixed U.S. mortgage rates set record lows last week for the sixth straight week, keeping affordability high for borrowers who can get loans, home funding company Freddie Mac said Thursday.
Refinancing has picked up steam but the pace remains well below last year’s peaks when rates were similarly low. Get the full story »
More words of warning on mortgage modifications
It’s time for some more words of warning on how good intentions can mess up your credit report or credit score as you try to get mortgage payments you can handle.
Since writing about how mortgage modifications can tarnish your credit score, I have heard from many well intentioned people who ended up with a credit disaster as they tried to do the right thing with their mortgages.
