Wells Fargo's John Stumpf: How to fix the mortgage mess

By John Stumpf, chairman, president, and CEO, Wells FargoApril 4, 2011: 6:09 AM ET

FORTUNE -- For most Americans, their home is the largest and most important investment they will ever make. Ensuring that they have the right kind of mortgage is critical to their financial well-being and -- as we've seen recently -- critical to our entire economy.
That means we have to solve the Fannie Mae and Freddie Mac problem and eventually figure out the proper role of the federal government in supporting a secondary market for home mortgages. Doing that right is one of the most important issues facing Congress and the Obama administration.

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MSNBC reports Rates on 15- and 30-year mortgages tumble

5-year mortgage rate dips below 4% for first time in three months

By JANNA HERRON

NEW YORK — Fixed mortgage rates tumbled this week and the 15-year loan dipped below 4 percent for the first time in three months. Rates followed the yield on U.S. Treasury bonds, which fell on worries that the crisis in Japan could slow economic growth.

Freddie Mac said Tuesday the average rate on the 15-year fixed mortgage, a popular refinance option, dropped to 3.97 percent from 4.15 percent. The last time the rate was below 4 percent was in mid-December. It reached 3.57 percent in November, the lowest level on records dating back to 1991. CLICK HERE FOR FULL Article

30-year mortgages back above 5%

Washington Business Journal - by Jeff Clabaugh


Date: Thursday, February 10, 2011, 10:38am EST


Long-term mortgage rates continued to climb this week, with 30-year mortgages now back above 5 percent.
Freddie Mac says a 30-year fixed-rate mortgage averaged 5.05 percent in the week ending Feb. 10, up from 4.81 percent last week and the highest since April 2010. A 15-year fix averaged 4.29 percent, up from 4.08 percent last week.Adjustable rate mortgages also rose, with the average rate on a one-year adjustable-rate mortgage at 3.35 percent.
Read more: 30-year mortgages back above 5%
Washington Business Journal

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Washington Business Journal

NY Times Feature: Life Without Fannie or Freddie

Imagining Life Without Fannie and Freddie
By GRETCHEN MORGENSON


Published: February 12, 2011

KUDOS to Treasury and the Department of Housing and Urban Development for some straight talk about the nation’s broken mortgage system.

A report to Congress from those departments, published on Friday, provided some long-awaited analysis by the Obama administration about what went wrong in housing finance — and how to fix it.

The report, entitled “Reforming America’s Housing Finance Market,” zeros in on the perverse incentives created by the nation’s mortgage complex during the years leading up to the panic of 2008. The Treasury’s recommendation that we wind down Fannie Mae and Freddie Mac and let the private mortgage market step in is spot on.
Still, it is not clear that such moves, sensible though they are, will be enough to prevent taxpayers from having to bail out institutions that back mortgages in the future. That is because the debate over how to put the Treasury’s ideas into effect will soon become a brawl. Powerful participants are already working overtime to keep taxpayers on the hook.  CLICK HERE for Full Article

Mortgage rates dip after weeks of rising

NEW YORK — Rates on fixed mortgages dipped this week after rising steadily over the last two months.
Freddie Mac said Thursday the average rate on the 30-year mortgage dropped to 4.77 percent from 4.86 percent the previous week. It hit a 40-year low of 4.17 percent in November.
The average rate on the 15-year loan slipped to 4.13 percent from 4.20 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991. Rates have been rising since November. Investors have shifted money out of Treasurys and into stocks. Many expect the tax-cut plan will fuel economic growth and increase inflation. Yields tend to rise on inflation fears.

Mortgage rates tend to track the yield on the 10-year Treasury note. Those rates have been fluctuating in recent weeks.
Low mortgage rates did little to boost home sales last year and higher rates now could hamper a robust recovery.

Washington Post Reports: Public Officials Scrutinize Foreclosure Processing

Foreclosure mess prompts growing number of public officials to slow down process
By Ariana Eunjung Cha

Washington Post Staff Writer

Thursday, November 11, 2010; 10:23 PM

One month ago, the city of Chicago and the surrounding suburbs of Cook County became a foreclosure-free zone. It wasn't the banks or judges that instituted the moratorium, because they were still moving cases forward at a rapid clip. The holdup was elsewhere: at the sheriff's office.
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CNN Money Reports: Retirement fund or Mortgage downpayment?

Should we pay down the mortgage or save for retirement?

 
By Karen CheneyNovember 10, 2010: 11:50 AM ET

(MONEY Magazine) -- For more than a year, Kim Champney, 40, and Pat Minick, 41, have been kicking in an extra $650 to their $1,048 monthly mortgage payments. "We don't like carrying a lot of debt," says Minick, who stays home with their three kids, ages 7, 8 and 10.
At this pace, the couple will pay off the loan in 2018, eight years early. But with their mortgage rate a low 4.4% after a refi, they wonder if the house is the best place to stash their cash

Click Here For Full Article. 

MSNBC Reports: Mortgage rates Stay low, with more Loan applications

Home loan demand rises as rates stay low 

Mortgage applications up driven by demand for purchases, refinancing

By Julie Haviv

NEW YORK — U.S. mortgage applications rose last week, driven by higher demand for both home purchase and refinance loans, as interest rates remained near record lows, an industry group reported on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes purchase and refinance loans, increased 5.8 percent for the week ended Nov. 5. It was only the third time in eight weeks that activity rose.
The four-week moving average, which smooths the volatile weekly figures, was down 1.9 percent.

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Mortgage Rates Drop Even Lower!

Mortgage rates drop again, lowest in decades

30-year benchmark slides to 4.19 percent with 15-year at 3.62 percent MSNBC REPORTS

NEW YORK — Rates on 30-year mortgages fell to 4.19 percent, the lowest level in decades. They were pushed down by lower Treasury bond yields.

Investors are buying up Treasury bonds in anticipation of a move by the Federal Reserve designed to lower mortgage rates and yields on corporate debt.
As a result, the average rate for 30-year fixed loans dropped to the lowest level on records dating back to 1971, mortgage buyer Freddie Mac said Thursday. It's down from 4.27 percent the previous week.
The average rate on 15-year fixed loans fell to 3.62 percent. CLICK HERE FOR FULL ARTICLE

Foreclosures will continue to rise

No mortgage mods for many of the jobless
  
By Tami Luhby, senior
writer September 23, 2010: 12:11 PM ET

NEW YORK (CNNMoney.com) -- Unemployed homeowners cannot count jobless benefits as income when applying for mortgage modifications if they have loans backed by Fannie Mae. That could greatly limit their ability to get a long-term reduction in their monthly payments.
Because the jobless benefits can't be considered permanent income, the lender will instead evaluate troubled borrowers for forbearance plans of up to six months. The new guidelines, released Tuesday, will take effect Nov 1.  "We don't want to set up borrowers to fail, said Amy Bonitatibus, Fannie Mae spokeswoman. CLICK HERE for Full Article

MSNBC reports Plan Launched to assist Underwater Borrowers

Federal assistance for homeowners in trouble on their mortgage

By ALAN ZIBEL

WASHINGTON — The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth.

Starting Tuesday, the Federal Housing Administration will permit lenders to give these borrowers refinanced loans backed by the government. The lenders will be required to forgive at least 10 percent of the original mortgage amount. Investors who have control over the mortgages as part of their large portfolios will select which borrowers are invited to participate.
The plan was first announced in March. Its rollout represents the latest of numerous efforts by the administration to address the housing bust. So far, the government has only nibbled around the edges of the crisis, as its programs have run into numerous problems.
The lending industry was ill-prepared for a crush of distressed homeowners, the economy worsened and millions of homeowners had taken on so much debt that their financial woes have been nearly impossible to resolve.
Nearly half of the 1.3 million homeowners who have enrolled in the Obama administration's main mortgage-relief program — overseen by the Treasury Department — have already fallen out over the past year.CLICK HERE FOR FULL ARTICLE

Joseph Nalls Now with Prosperty Mortgage

One of our Favorite loan officers, Joe Nalls, has a new home with Prosperity Mortgage. Here is all of his new contact information- Congrats on the move and we wish you the best!
Joseph Nalls
Home Mortgage Consultant
Prosperity Mortgage Company
700 King Farm Blvd, Suite 125
Rockville, MD 20850
301-529-8611 Celll
301-230-1748 Office
joseph.nalls@prosperitymortgage.com
apply online at http://www.nallshomeloans.com/

MSNBC REPORTS: Homeowners Refinancing are Opting for Shorter Mortgage Lengths

Refinancing homeowners are going short
By Bill Briggs
Many customers take 30-year loans down to 15 or 20

After being blindsided by a job loss last spring, sales exec Ren Chirakos didn’t need his new MBA degree to calculate the scary numbers: The math got simple real fast.
Zero income + new COBRA bills + a house payment = something had to give in the Chirakos family budget. The answer: refinancing his 30-year home loan to a shorter mortgage that tapped into the trend of ever-shrinking interest rates.
“I needed to keep my house,” said Chirakos, who since has found work at a different company in Cuyahoga, Ohio. His wife is a stay-home mom who cares for their two daughters. “It forces you to look at 'OK, where is our money going?' You start looking for ways to shave fixed expenses. It really gives you cause to think.”
Chirakos was paying 5.375 percent on a 30-year loan before he became a victim of downsizing at toolmaker Snap-on Inc. As rates sank and slipped over the summer, he watched and waited. Then he pounced, locking in a 20-year, fixed-rate loan at 4.3 percent and slashing $140 off the monthly bill for his $220,000 home. With excellent credit and little debt, the re-fi cost him $900, so will pay for itself in about six months. “Every little bit helps,” he said.
For many refinancing homeowners, going shorter is suddenly more appealing. Fixed mortgages of 15 and 20 years are quickly gaining fans among those who previously held 30-year loans, balloon mortgages and adjustable rates, according to a new report from mortgage giant Freddie Mac. The number of fixed-rate, 15- and 20-year loans are at their highest level since 2004, the government-controlled company said.
 CLICK HERE FOR FULL STORY

CNN Money Report:The wasted 4.44% mortgage rate

Historic Low Mortgage Rates, Ample Inventory,  Where is the Boom?

 

by Nin-Hai Tseng, reporterAugust 16, 2010: 5:17 AM ET

FORTUNE -- It appears even the bright spots of this tired economy are still working against heavily indebted homeowners. Mortgage rates have hit new lows nearly every week, but many borrowers are still unable to take advantage of them.
Like it is in so many parts of today's sideways economy, relief is out of reach. Stimulus dollars are everywhere, but somehow never where they're needed most. CLICK HERE FOR FULL ARTICLE

MSNBC Reports: Mortgage rates drop to New Record low, Again

Mortgage Rates Keep on Dropping

U.S. mortgage rates sank to the lowest level in decades this week, pushed down by the weak economy and the Federal Reserve's move to help lift the recovery by purchasing government debt.

Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans this week was 4.44 percent, down from 4.49 percent last week. That's the lowest since Freddie Mac began tracking rates in 1971.
The average rate on the 15-year fixed loan dropped to 3.92 percent, down from 3.95 percent last week and the lowest on record.
Rates have fallen since spring and the government's July jobs report has investors worried about the United States slipping back into recession. They are shifting more money into the safety of Treasury bonds, lowering their yields. Mortgage rates tend to track those yields.
And the Federal Reserve is pushing those yields down even further. The central bank said Tuesday it would buy Treasurys to help aid the recovery, using the proceeds from debt and mortgage-backed securities it bought from Fannie Mae and Freddie Mac. CLICK HERE FOR FULL ARTICLE

Obama Administration Proposes 3 Billion in Aide for Jobless Homeowners

$3 billion more for jobless homeowners
By Hibah Yousuf, staff reporterAugust 11, 2010: 2:02 PM ET

NEW YORK (CNNMoney.com) -- The Obama administration is making $3 billion in additional funds available to help troubled homeowners avoid foreclosure.

One part of the plan, announced Wednesday, includes a new $1 billion program that will offer loans to unemployed borrowers at risk of losing their homes. The loans, which will be dispersed through nonprofit and housing agencies, will carry 0% interest and be good for a maximum of $50,000 for up to two years.
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MSNBC Reports: Mortgage rates drop to New Record low

Mortgage rates set new low again

National average for a 30-year fixed loan is at 4.54 percent

 

Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans.

Freddie Mac says the average rate for 30-year fixed loans this week was 4.54 percent, down from 4.56 last week. That's the lowest since Freddie Mac began tracking rates in 1971.
The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.
The rate on the 15-year fixed loan dropped to 4 percent, down from 4.03 percent last week and the lowest on record.
Rates have fallen since the spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Mortgage rates tend to track yields on Treasurys.

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NBC Washington Reports: More Help For Homeowners in Trouble

Homeowners Hope for Mortgage Help

Thousands of struggling homeowners, hoping to get a break on their mortgage payments, started lining up outside the Washington Convention Center early Friday morning.

They were waiting for the start of the Save The Dream tour. The Neighborhood Assistance Corporation of America has brought together lenders, financial counselors and homeowners in danger of losing their houses.
Over the next week, many homeowners will be able to negotiate lower interest rates. Some may also be able to lower the principal on their homes.Click Here for Full Article

CNN Money Reports: Bankruptcy Instead of Foreclosure

Bankruptcy can save your house from foreclosure

NEW YORK (CNNMoney.com) -- Slick TV commercials and online ads tell delinquent borrowers that they can save their homes by filing for personal bankruptcy. But is it true -- or just too good to be true?
True!
Bankruptcy can bring foreclosure proceedings to a halt, end harassment from debt collectors, and give borrowers time to make up missed payments and reorganize their finances. In some cases, bankruptcy can also help mortgage borrowers save their homes permanently.

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Washington Business Journal Reports: Refinances are up?

Wednesday, July 7, 2010, 12:19pm EDT  |  Modified: Wednesday, July 7, 2010, 2:45pm

Mortgage refinancing jumps to highest in a year

 Washington Business Journal - by Jeff Clabaugh

The number of applications to refinance an existing mortgage jumped to the highest level in more than a year last week, even as home sales slow, according to the D.C.-based Mortgage Bankers Association.
The trade group’s weekly report says overall mortgage applications rose 6.7 percent last week. Applications for purchases fell 2 percent from the previous week, while applications for refinancing rose 9.2 percent. Refinance applications reached the highest level since May 15, 2009, the Mortgage Bankers Association said.

Read more: Mortgage refinancing jumps to highest in a year - Washington Business Journal