A lot of Investigations and Lawsuits will Follow Paperwork Mess.
Several companies were using robo-signers, so now some Banks have delayed the foreclosure process for some homeowners. The sale of Bank Owned properties has also been delayed. These banks include Bank of America, JP Morgan Chase and Ally's GMAC.
A GMAC employee said in a deposition in December 2009, that his team of 13 people signed about 10,000 documents a month without verifying accuracy. That's just one team for one bank.
The lawsuits that have been brought on by homeowners claim that lenders used falsified documents to foreclose on homes. In some cases the banks didn't even hold title to the property.
This is just the beginning of a very big mess. Stay Tuned
Tuesday, October 12, 2010
Friday, October 8, 2010
Mortgage Rates Continue to Dive to Historic Lows
30 yr hits 4.27% with 15 yr at 3.72%
Rates on a 30 year loan fell for the 9th time in 12 weeks, hitting 4.27%. That is the lowest level on record dating back to 1971. Rates on a 15 year loan dropped to 3.72%, the lowest level for a 15 year since 1991.
Many investors have been shifting their money into the safety of treasury bonds lowering their yield and mortgage rates track those yields.
This proves a huge difference for buyers. For example, if you were taking a $400,000 loan at 6% your payment was upward of $3,000 with taxes and insurance. That same loan now at 4.3% is roughly $600 less a month with taxes and insurance.
It's a great time to buy with lower home prices and low rates. It is a rare combination in housing, take advantage!
Rates on a 30 year loan fell for the 9th time in 12 weeks, hitting 4.27%. That is the lowest level on record dating back to 1971. Rates on a 15 year loan dropped to 3.72%, the lowest level for a 15 year since 1991.
Many investors have been shifting their money into the safety of treasury bonds lowering their yield and mortgage rates track those yields.
This proves a huge difference for buyers. For example, if you were taking a $400,000 loan at 6% your payment was upward of $3,000 with taxes and insurance. That same loan now at 4.3% is roughly $600 less a month with taxes and insurance.
It's a great time to buy with lower home prices and low rates. It is a rare combination in housing, take advantage!
Thursday, October 7, 2010
New Agency Disclosure Law Goes into Effect on January 1, 2011
August 30, 2010, Gov. David Paterson signed a bill into law amending Real Property Law §443 to add two new components to the agency disclosure law relating to advanced consent to dual agency and agency disclosure for condominiums and cooperative apartments/units.
The new law and required forms do not take effect until January 1, 2011.
Under the new law, sellers, landlords, buyers and tenants are permitted to consent to dual agency or dual agency with designated sales agents in advance by indicating the same on a new revised agency disclosure form.
click here for the rest of the law
http://www.cnyrealtor.com/news/2010/sep/new-agency-disclosure-law-goes-effect-january-1-2011
The new law and required forms do not take effect until January 1, 2011.
Under the new law, sellers, landlords, buyers and tenants are permitted to consent to dual agency or dual agency with designated sales agents in advance by indicating the same on a new revised agency disclosure form.
click here for the rest of the law
http://www.cnyrealtor.com/news/2010/sep/new-agency-disclosure-law-goes-effect-january-1-2011
Tuesday, October 5, 2010
Senate Passes One-Year Extension on Higher GSE Loan Limits
Congress has voted to extend higher loan limits for the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Approved by the U.S. House of Representatives and Senate, President Barack Obama is expected to sign the initiative into law that would keep a ceiling of $729,750 for single-family home mortgages in high-cost areas other than Hawaii and Alaska in place until October 2011
The Senate approved the measure by a vote of 69-30 on Wednesday. The bill, HR 3081: Department of State, Foreign Operations, and Related Programs Appropriations Act of 2010, would extend the current conforming loan limits through the new fiscal year and provide the Federal Housing Administration’s (FHA) multifamily programs with additional commitment authority by providing $20 billion in loan commitment authority for FHA’s General and Special Risk Insurance Funds.
“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy," said Robert E. Story Jr., CMB, chairman of the Mortgage Bankers Association (MBA) "The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage."
The loan limit cap was set to drop to $625,500 at the start of fiscal year 2011. The passage of HR 3081 will further prolong the higher limit and keep interest rates low in order to boost the homebuying market.
“Likewise, providing the FHA with additional multifamily commitment authority will help ensure funding for the continued development, renovation and mortgage refinancing necessary to preserve affordable rental housing in this country," said Story. "This sector has been crucial during the recent housing downturn and credit crisis, and FHA needs the additional authority in order to ensure the market remains liquid."
The Senate approved the measure by a vote of 69-30 on Wednesday. The bill, HR 3081: Department of State, Foreign Operations, and Related Programs Appropriations Act of 2010, would extend the current conforming loan limits through the new fiscal year and provide the Federal Housing Administration’s (FHA) multifamily programs with additional commitment authority by providing $20 billion in loan commitment authority for FHA’s General and Special Risk Insurance Funds.
“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy," said Robert E. Story Jr., CMB, chairman of the Mortgage Bankers Association (MBA) "The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage."
The loan limit cap was set to drop to $625,500 at the start of fiscal year 2011. The passage of HR 3081 will further prolong the higher limit and keep interest rates low in order to boost the homebuying market.
“Likewise, providing the FHA with additional multifamily commitment authority will help ensure funding for the continued development, renovation and mortgage refinancing necessary to preserve affordable rental housing in this country," said Story. "This sector has been crucial during the recent housing downturn and credit crisis, and FHA needs the additional authority in order to ensure the market remains liquid."
Monday, September 27, 2010
Fannie Offers Housing Help to Military Families
Source: Associated Press
Payments could be cut for those struggling after death of service member
Mortgage giant Fannie Mae plans to give military families a break on their home loan payments if they are struggling because of the death or injury of a service member.
The Washington-based company says it will reduce or suspend borrowers' monthly payments up to six months. Fannie Mae is the largest buyer and backer of U.S. home mortgages, owning or guaranteeing about $3.2 trillion in home loans.
Fannie Mae also says it would suspend reporting to credit bureaus for up to six months to minimize the impact on the borrower's credit score.
To determine whether they are eligible, military members or their surviving spouses should contact their mortgage company. Or, they can call a special military phone number: 1-877-MIL-4566.
Payments could be cut for those struggling after death of service member
Mortgage giant Fannie Mae plans to give military families a break on their home loan payments if they are struggling because of the death or injury of a service member.
The Washington-based company says it will reduce or suspend borrowers' monthly payments up to six months. Fannie Mae is the largest buyer and backer of U.S. home mortgages, owning or guaranteeing about $3.2 trillion in home loans.
Fannie Mae also says it would suspend reporting to credit bureaus for up to six months to minimize the impact on the borrower's credit score.
To determine whether they are eligible, military members or their surviving spouses should contact their mortgage company. Or, they can call a special military phone number: 1-877-MIL-4566.
Wednesday, September 22, 2010
The Fastest & Easiest Path to Loan Approval
Source: Bank of America
If you prepare carefully before you apply for a mortgage (ideally, before you have found the house you want to make an offer on), and are further prepared for requests for additional information after you apply for the mortgage, you can greatly increase the chances that your loan approval experience will go smoothly and well.
Here are several steps you should take before you apply for a loan.
1. Check Your Credit Report
Go to the website annualcreditreport.com for instant free reports. Check the reports very closely to make sure there are no factual errors, like data mistakenly imported from someone else who happens to have the same name, but a very different payment record. Did you know there are errors found in nearly one in four reports? Credit-reporting agencies will work with you to clear up any errors. It’s better to get this done before you apply for a loan, since it can result in better credit reports and scores. You can also check your credit score at various sites (including myfico.com and www.IdentityGuard.com but they do charge a fee.
2. Collect All Your Information
Pull together all the many documents that your lender will need for rapid processing of your application. These may include specific records for the past two years at your current address (employer name, address, phone number, W-2 statements, federal income tax returns, with all schedules); 30 days’ worth of pay stubs; written verification of any other income (such as social security, alimony, annuities, etc.); check and savings bank statements for the past two months or most recent quarter; and the names and addresses of all your creditors with account numbers, balance and monthly payments for all fixed, installment and revolving debts.
Our Mortgage Application Checklist provides a detailed list of all items which, depending on your personal situation you may need to have on hand when starting a loan application. Your Loan would be happy to review this checklist with you to make sure you understand the specific documents requested.
3. After You Have Applied For Your Loan
Having negotiated to purchase a home, you need to be prepared to put together any additional requested documentation as quickly as possible, such as a letter explaining a late payment. This is the main cause of delays in the qualification process.
An important reminder: DO NOT take out any other financing or make large purchases during the mortgage qualification process. These can result in changes in your credit reports and credit scores. The confusion could cause delays and any changes could impede your qualification.
For A List of Lenders in Your Area, Contact us Directly at nyrealestateinfo@gmail.com
If you prepare carefully before you apply for a mortgage (ideally, before you have found the house you want to make an offer on), and are further prepared for requests for additional information after you apply for the mortgage, you can greatly increase the chances that your loan approval experience will go smoothly and well.
Here are several steps you should take before you apply for a loan.
1. Check Your Credit Report
Go to the website annualcreditreport.com for instant free reports. Check the reports very closely to make sure there are no factual errors, like data mistakenly imported from someone else who happens to have the same name, but a very different payment record. Did you know there are errors found in nearly one in four reports? Credit-reporting agencies will work with you to clear up any errors. It’s better to get this done before you apply for a loan, since it can result in better credit reports and scores. You can also check your credit score at various sites (including myfico.com and www.IdentityGuard.com but they do charge a fee.
2. Collect All Your Information
Pull together all the many documents that your lender will need for rapid processing of your application. These may include specific records for the past two years at your current address (employer name, address, phone number, W-2 statements, federal income tax returns, with all schedules); 30 days’ worth of pay stubs; written verification of any other income (such as social security, alimony, annuities, etc.); check and savings bank statements for the past two months or most recent quarter; and the names and addresses of all your creditors with account numbers, balance and monthly payments for all fixed, installment and revolving debts.
Our Mortgage Application Checklist provides a detailed list of all items which, depending on your personal situation you may need to have on hand when starting a loan application. Your Loan would be happy to review this checklist with you to make sure you understand the specific documents requested.
3. After You Have Applied For Your Loan
Having negotiated to purchase a home, you need to be prepared to put together any additional requested documentation as quickly as possible, such as a letter explaining a late payment. This is the main cause of delays in the qualification process.
An important reminder: DO NOT take out any other financing or make large purchases during the mortgage qualification process. These can result in changes in your credit reports and credit scores. The confusion could cause delays and any changes could impede your qualification.
For A List of Lenders in Your Area, Contact us Directly at nyrealestateinfo@gmail.com
Tuesday, September 21, 2010
FHA Mortgage Insurance Premium Going Up
Lock in Before October 4th 2010
FHA is giving homebuyers until October 4 to lock in a low monthly insurance premium. After this date premiums will go up 63 percent. A homebuyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. The same buyer waiting until after October 4 would pay $148.01. Although the upfront mortgage insurance premium is going down, there is an actual net increase in out of pocket costs because the monthly premium is going up by 63 percent.
FHA is giving homebuyers until October 4 to lock in a low monthly insurance premium. After this date premiums will go up 63 percent. A homebuyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. The same buyer waiting until after October 4 would pay $148.01. Although the upfront mortgage insurance premium is going down, there is an actual net increase in out of pocket costs because the monthly premium is going up by 63 percent.
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