Rising Home Prices Means Fewer Mortgage Modifications

A few years ago ‘mortgage modification’ was a word on the minds of millions of homeowners. Today in an improving housing market, the need for such modifications to save borrowers in danger of foreclosure is shrinking. But according to the Federal Housing Finance Agency  , those who do still need help are finding fewer options available. There were 13,200 permanent loan modifications made through Fannie Mae and Freddie Mac in February of this year, down 3 percent from the month before. Of Read more [...]

Refinancing a Jumbo Loan In Today’s Market

Fewer and fewer homeowners with jumbo loans are underwater these days, making it possible for them to take advantage of today's low interest rates. In fact, recent data from Zillow.com showed that during the first quarter of 2013, just 20.6 percent of all Americans with jumbo loans (those over the conventional loan limits of $417,000 in most parts of the country) owed more than their homes were worth. That's down significantly from 32.3 percent one year earlier. And in five of the nation's major Read more [...]

FHFA’s Streamlined Homeowner Relief Begins This Week

For a select number of struggling U.S. homeowners, life might get a little easier starting this week. The Federal Housing Finance Agency announced that it will be sending out notices to qualified borrowers about its new Streamlined Modification Initiative, a plan to help homeowners avoid foreclosure. The new program is available to homeowners whose mortgages are backed by Fannie Mae or Freddie Mac and who are at least 90 days late on their payments. Borrowers must also have had their loans for Read more [...]

Mortgage Relief Program Extended Through 2015

The Obama administration's foreclosure prevention programs have been granted an extension, even as foreclosure around the country are tapering off. "The housing market is gaining steam, but many homeowners are still struggling," said Treasury Secretary Jacob Lew in a statement announcing the government's decision to extend the Home Affordable Mortgage Program (HAMP) to all eligible homeowners. Lateer the same day Fannie Mae and Freddie Mac's regulator announced that both of those entities would Read more [...]

Modified Mortgages Post Poor Success Rate

A government program to save struggling homeowners from foreclosure  is producing disappointing results, although doing better than private sector modifications, according to a new report  from a federal inspector. The Home Affordable Modification Program, or HAMP, was designed by the Obama administration to help homeowners hit hard by the mortgage meltdown by lowering their monthly payments. The report from the office of Christy Romero, special inspector general for the Troubled Asset Relief Read more [...]

No Comments »

on April 26th 2013 in Mortgage News

Modified Mortgages Continue to Have High Default Rates

Even though mortgage modifications have helped many struggling homeowners avoid foreclosure, the “re-default” rate remains high, according to data from the Office of the Comptroller of the Currency (OCC.) In its latest report, the OCC found that 52.3 percent of the almost three million mortgages that have been modified since 2008 are either delinquent or in foreclosure. Breaking it down, through the fourth quarter of 2012, 7.1 percent of all modified loans were delinquent by 30 to 59 days, Read more [...]

Fannie and Freddie to Make Mortgage Relief Easier

The Federal Housing Finance Agency announced this week that it will now allow mortgage finance companies Fannie Mae and Freddie Mac to roll back one of the cumbersome rules in the mortgage modification process. The new guidelines will no longer require homeowners to provide proof of “financial hardship” if they are at least 90 days behind on their mortgage payments. "Our goal is to give homeowners an efficient way to avoid foreclosure and remain in their home,” said Leslie Peeler, Fannie Read more [...]

Foreclosures Rise As Lenders Work Through Backlogs

Foreclosure filings rose across the U.S. in August on a monthly basis, as lenders pushed out distressed properties that have been on hold for the past year, according to foreclosure data company RealtyTrac. There were 19,508 foreclosure filings - which include default notices, auctions and bank repossessions - an increase of 0.8 percent from July, but still down 15 percent from August 2011. After the robo-signing settlement, foreclosures now seem to be increasingly concentrated in "judicial Read more [...]

Banks Could Face Stiff New Foreclosure Rules

State attorneys general handed a new set of rules to the nation's big banks Thursday that would require them to write down loan balances on troubled mortgages. The only question is whether or not this 27-page proposal comes attached with any teeth. The document is partly a response to the "robo-signing" foreclosure mess from last fall. According the the Wall Street Journal: "The proposal represents the clearest indication that the 50 state attorneys general are working hand-in-hand with the Obama Read more [...]

Second Lien Mortgage Holders are Pushing Many Homeowners into Foreclosure

Representative Barney Frank (D-Mass), chairman of the House Financial Service Committee, sent a letter of petition to the country's top 4 banks this week demanding they take steps immediately to write down second mortgages. The letter sent to bank CEO's at Bank of America, Citigroup, JP Morgan Chase and Wells Fargo asked for the banks cooperation in helping underwater mortgage holders who have second mortgages with their bank. Frank's letter stated, "Many homeowners are eager to save their homes Read more [...]