Who Should Refinance into a Shorter Term Mortgage?

Posted on 6 Feb 2013 In: loan

Who Should Refinance into a Shorter Term Mortgage?News from Fox Business:
The near historic low interest rates have many homeowners clambering to not only refinance their mortgages, but also secure a shorter term loan.
But whether or not it makes sense to reduce your loan time depends on your income, current interest rate and how long you plan to stay in the home.
“It’s certainly dependent on the consumer’s ability to afford a higher monthly payment,” says Rick Allen, chief operating officer for Mortgage Marvel. “In most cases consumers will see an increase.”
Refinancing into a 15-year-fixed-rate loan […] Continue Reading…

US sues S&P over pre-crisis mortgage ratings

Posted on 5 Feb 2013 In: loan

US sues S&P over pre-crisis mortgage ratingsNews from Fox News:
The U.S. government accused Standard & Poor’s of inflating ratings on mortgage investments to boost its bottom line, taking aim at a key player in the run-up to the financial crisis.
In charges filed late Monday in Los Angeles federal court, the Justice Department said S&P gave high marks to mortgage-backed securities that later went sour, even though it knew they were risky. The government said S&P misrepresented the risks because it wanted more business from the banks.
 The case is the government’s first major action against […] Continue Reading…

Critics of $ 8.5 billion pact challenge BofA mortgage modificationsNews from Reuters:

A sign for a Bank of America office is pictured in Burbank, California August 19, 2011.
Credit: Reuters/Fred Prouser

By Karen Freifeld and Rick Rothacker
NEW YORK/CHARLOTTE, North Carolina | Mon Feb 4, 2013 5:33pm EST

NEW YORK/CHARLOTTE, North Carolina (Reuters) – A group of mortgage-backed securities investors says Bank of America Corp failed to buy back more than $ 30 billion in loans from investors after the bank modified the mortgages to reduce borrower payments.

The allegation, made in a letter sent to a New […] Continue Reading…

Small Lenders Ride US Mortgage Wave

Posted on 4 Feb 2013 In: loan

Small Lenders Ride US Mortgage WaveNews from CNBC.com:
Guaranteed Rate, a home loan company, opened shop in 2000 in Chicago with a single office. Now it is one of the 20 biggest U.S. mortgage lenders, with more than 140 offices.
Most of that growth has come in the last two years and Chief Executive Victor Ciardelli said in an interview he is not planning to slow down.
“We’ve hired over a thousand people over the last year and we’re trying to hire a ton more,” Ciardelli said.
Guaranteed Rate is one of scores of independent mortgage lenders and […] Continue Reading…

91-year-old caught in a reverse mortgage nightmare

Posted on 3 Feb 2013 In: loan

91-year-old caught in a reverse mortgage nightmareNews from Boston Herald:
WASHINGTON — The federal Department of Housing and Urban Development has a birthday gift for 91-year-old widow Jeanette Ogle that should cause any senior to think twice before signing up for a government-insured reverse mortgage.
Later this month, on Ogle’s 92nd birthday, her home in Lake Havasu City, Ariz., is scheduled for foreclosure — not because she did something wrong. Instead, she is expected to lose her house because during a refinancing in 2007, only her husband’s name was included on the reverse mortgage documents prepared […] Continue Reading…

Widow, 91, caught in reverse-mortgage nightmare

Posted on 2 Feb 2013 In: loan

Widow, 91, caught in reverse-mortgage nightmareNews from The Seattle Times:
Nation’s Housing
WASHINGTON — The U.S. Department of Housing and Urban Development has a birthday gift for 91-year-old widow Jeanette Ogle that should cause any senior to think twice before signing up for a government-insured reverse mortgage.
Later this month, on Ogle’s 92nd birthday, her home in Lake Havasu City, Ariz., is scheduled for foreclosure — not because she did something wrong.
Instead, she is expected to lose her house because during a 2007 refinancing, only her husband’s name was included on the reverse-mortgage documents prepared by a […] Continue Reading…

Bank sues Wrigley rooftop owner in loan default

Posted on 1 Feb 2013 In: loan

Bank sues Wrigley rooftop owner in loan defaultNews from Chicago Tribune:
January 31, 2013|By Ameet Sachdev | Tribune reporter

Wrigley rooftop owners showed an illustration of their vision for ads on their building overlooking Wrigley Field. (Wrigley rooftops/Handout)

The owners of a rooftop club across the street from Wrigley Field are being sued by their lender for defaulting on four loans totaling $ 7.65 million, according to a complaint filed Wednesday in Cook County Circuit Court.
R. Marc Hamid and Jeffrey Goby own a rooftop business at 3627 N. Sheffield Ave., known as Skybox on Sheff…………… […] Continue Reading…

Fixed Mortgage Rates Spike

Posted on 1 Feb 2013 In: loan

Fixed Mortgage Rates SpikeNews from Motley Fool:

By Rich Smith | More ArticlesJanuary 31, 2013 |

Freddie Mac released its weekly update on national mortgage rates this morning, showing a continuing upward trend.
Thirty-year fixed rate mortgages (FRM) spiked sharply this week, rising 11 basis points in comparison to last week to hit 3.53% — a new high for this still-young year and the first week the 30-year fixed-rate mortgage has averaged above 3.5% since Sept. 13, 2012. Fifteen-year FRMs are up a similar 10 basis points, to 2.81%.
Adjustable-rate mortgages are also on the rise. After […] Continue Reading…

Mortgage Rates get Boost from Stock Rally

Posted on 31 Jan 2013 In: loan

Mortgage Rates get Boost from Stock RallyNews from Fox Business:
Mortgage rates increased this week as many investors abandoned bonds to jump into the stock market rally. Is this a sign that low rates are about to become history?
The benchmark 30-year fixed-rate mortgage rose to 3.77% from 3.66%, according to the Bankrate.com national survey of large lenders. The mortgages in this week’s survey had an average total of 0.29 discount and origination points. One year ago, the mortgage index stood at 4.12%; four weeks ago, it was 3.58%.
The benchmark 15-year fixed-rate mortgage rose to 3.03% […] Continue Reading…

FHA to hike mortgage insurance premiums

Posted on 31 Jan 2013 In: loan

FHA to hike mortgage insurance premiumsNews from Chicago Tribune:The Federal Housing Administration announced Wednesday that it will increase the mortgage insurance premiums it charges as part of several steps being taken to shore up its finances.The agency also will require borrowers to pay mortgage insurance for the life of the loan.Annual mortgage insurance premiums will rise by 0.10 percent for most new mortgages and  0.05 percent for loans of $ 625,500 or more.In addition, homeowners with FHA-backed mortgages will be required to continue paying the premiums, based on the unpaid balance, for the […] Continue Reading…