Help wanted: Merrill Lynch CEO (CNN Money)

Taking on the top job at Merrill Lynch could turn an executive into a Wall Street legend, but it also has the potential to ruin anyone who takes the CEO post from the just-departed Stanley O'Neal. That stark choice may be one of the reasons Merrill hasn't lined up anyone just yet to lead the firm out of the crisis sparked by large losses from junk mortgages.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Subprime mortgages: Danger ahead (Corvallis Gazette-Times)

Lori DeBord knows how to keep a lot of plates spinning. A 40-year-old mother with three boys, she kept the bills paid by running her own small business, the Albany Dance Academy.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Best Mortgage Deals - Avoid Big Banks

Research suggests that the top 10 Biggest mortgage lenders offer amongst the most expensive mortgage deals in the UK. The council of mortgage lenders made a list of the best 250 mortgage deals and then worked out what % of these deals were offered by the big companies.The top 10 lenders offered only 11% of [...]

Read More...

[Source: Mortgage Blog]

Forecasts for UK Housing Market

Recent evidence of a slowing UK housing market emerged.Number of Mortgage approvals fell. According to the Bank of England, the number of mortgage approvals by UK banks fell to 102,000 per month. This is the lowest rate for over 2 years. see more at BloombergHouse repossessions forecast to rise. The council of mortgage lenders [...]

Read More...

[Source: Mortgage Blog]

UBS HIT BY SUBPRIME (New York Post)

ZURICH, Switzerland - UBS AG swung to a third-quarter net loss yesterday, largely as a result of bad investments in U.S. subprime mortgages, and said the problems aren't over. UBS had a third-quarter loss of 830 million Swiss francs ($712 million)...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mortgage Training Should Not Be An Option

Filed under: Mortgage servicing

When I first started in this business, I signed a contract that stated that I would be "fully trained" by the company that I signed on with. What a surprise it was to find out that I was supposed to "fake it until I make it." Many times when I would ask for help I was told that the answers would come to me over time, and to speak with confidence - that way the customer would have confidence in me.

Prior to getting into the mortgage business, I studied real estate in two states, Oregon and California. I was required to take many hours of courses and to have a certificate of completion prior to taking any tests for my licensure. But years later, as I sat with a blank expression on my face in my mortgage broker's office, I found myself wondering something I'm sure I wasn't alone in: Why don't mortgage brokers and loan officers face such a rigorous learning program?? I still to this day have not come up with an answer.

Today, more than ever, I am pushing for loan officers and consumers alike to educate themselves. I would highly recommend that ALL borrowers take a class or two, do internet research, and talk to many loan officers before locking yourself in with the first LO you find. It's not enough anymore to "trust" that brokers and LO's know what they are doing, many of them do know what they are doing - and many times - it's not good. My father had the best advice growing up: "If you want something done right, do it yourself." I've rambled and vented, and I believe that my point is this: education, education, education. Whether you are an industry professional, or a consumer, if you are educated - even self educated - you stand a better chance at obtaining the desired results.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

National Mortgage Regulation System As Soon As 2008

Filed under: News by state, Mortgage servicing

The National Association of Securities Dealers, Inc. and the Conference of State Bank Supervisors have entered into an agreement to develop a nationwide licensing system for state residential mortgage regulators. This 18-month effort, which involves CSBS, the American Association of Residential Mortgage Regulators and the industry to develop uniform mortgage licensing applications that would be used by each state mortgage regulator. Industry leaders are hoping that the system will lead to benefits from access to a national licensing and enforcement repository, and will likely be the result of the uniform application process and produce more closely related regulations throughout the states.

There are quite a few industry skeptics with growing concerns about how such a system will be implemented, but there are a few states that are currently testing the forms for new license applications. We could be seeing this new system available as early as January 2008, and so far a total of 30 state agencies have agreed to participate in the system. An online mortgage banking compliance service, iComply, suggests that careful consideration should be taken when deciding what information will go into the new system. A pilot program was tested in Illinois, in which implementation issues were much more dificult than anyone anticipated.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

The Dangers of 125% Financing

There are two main factors that determine how much equity you have in a home: The value of the home, and the amount owed on the home. In other words, if you have a property that is valued at $250,000 and a mortgage loan on which you owe $175,000 then you have $75,000 equity in your home. Since the amount of the loan in a 125% leaves the buyer with no equity, and in most loans, owing more than the home is worth, these loans generally pose the greatest risk and are not usually offered by most lenders. If the homeowner defaults on the mortgage, and the lender forecloses on the property, the lender will require the homeowner to repay the difference - and lose the home.

The present danger with the 125% loan is that many homes values are not rising at the pace they once were. This not only poses a problem for the homeowner, but for the lender as well. At this juncture, if there are lenders out there that are still offering home loans that are above the value of the home, this should be considered a red flag - unless you are taking out the loan to make major improvements on the home that will definitely raise the value of the home.

Some states actually have laws that prevent lenders from loaning out more than the value of the home. Tax deductions are not available on any part of a home equity loan that exceeds the fair market value of the home. The IRS has been monitoring the 125% loans with a watchful eye, making sure than homeowners aren't incorrectly trying to write off too much interest.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Distractions in the Mortgage Office - Part One

Filed under: Mortgage servicing

One of the more common "distractions" in the office (granted, this issue is not limited to the mortgage industry) is a non-producing attitude in co-workers. Although there are many techniques to avoiding the distractions associated with workplace sloths, you're going to need a bit of self control and discipline to pull it off, whether you choose to remain in the office, or take your work home with you.

One very realistic solution for many mortgage professionals is to set up shop in your home office. One of the most important factors in originating mortgages from the home is local and state laws. In some states, there may be laws regulating how the information is stored (such as in a locked room, locked file cabinet, etc.) If you're considering working from your home, you should also be aware of the possibilities of distractions in the home, such as T.V., family members, too many breaks, or other potentially distracting factors. Be sure that you set up your home office to prevent distractions, such as using a spare room with a door that you can close, and telephone line, computer & internet, a file cabinet and a fax machine.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Distractions in the Mortgage Office - Part Two

If you plan to continue working in the office, you may want to consider a few things that are sure-fire distractions. For example, you will definitely want to avoid these time consuming activities: Gossiping co-workers, personal phone calls, phone calls from rate shoppers, driving aimlessly while wondering how to get more business, discussions of recent television shows or office politics, dreaming up other money making ideas (other than mortgages), surfing the net, and one of the most common work-stoppers - Solitairre. Recent studies show that the average office worker (in any field) will spend about two hours on productive activities. In other words, before you put all the blame on your slothful co-workers, you should consider adding a few more productive hours to your day.

If you find that distractions are seeking you out, then you may need to consider a different work environment (such as shutting your door, or working at home.) In the event that you are unable to do either, consider pointing out to your fellow mortgage originators or brokers that with less than two hours of productive work in any given day, by the end of the 40-60 hour work week, the total number of "working" hours is lowered to just 10 hours. This makes sense in a job where you are paid by the hour, but it sure makes you wonder what your total monthly income would be in a commission only career if you were to actually WORK for the entire 40 hours per week - you'd be amazed.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Using Home Equity to Pay Off Credit Debt

Many homeowners around the world are turning to home equity loans, and home equity lines of credit, and even their IRAs and 401(K) funds to decrease or eliminate their credit card debt. Partly fueled by the recent growth in home equity and home values, partially due to lower interest rates on home loans, thousands of people per day are shifting their debt from their cards to their homes. While in some cases this can be beneficial, there are some very real hidden dangers to be aware of when chosing an option that involves taking from your home equity.

One thing that many borrowers are not aware of - or are chosing to ignore - is the definite possibility of homes in your area experiencing a "leveling off" of home values. While over the past few years the equity seemed to grow at an unreasonable rate - without much effort on the part of the borrower, that same equity could essentially disappear just as quickly. In addition to leveling home values, most ARMs are scheduled to begin to reset as early as 2007, and many homeowners will find themselves with a much higher monthly mortgage payment. For those who have a large enough monthly income to compensate for the higher payments, the jump in interest rates may not have as severe of an effect. But most borrowers will experience payment shock - even without adding in the credit card debt, and have a hard time with the monthly payments.

If a borrower has a low monthly payment now, and a higher than normal property value - it can cause a false sense of security, and lead to choices that would not otherwise be made based on the equity in the home. One of the most important thing to remember, is that there are collectors paid to collect on the credit card debt, and by not making the monthly payments on the debt - you could have your cards taken away. When you struggle to pay your monthly mortgage payments, the price is much higher - you could eventually lose your home. Taking the extreme risk of paying off credit card debt may seem like a wise decision due to the difference in interest rates between credit cards and mortgages, but weighing your options as well as the risks may save your home. And the biggest danger of all?? Most Americans who use their home equity to pay off their credit card debt refuse to change their habits and lifestyles, and actually see their zero-balance cards as an invitation to go shopping - perpetuating the cycle. However, in this cycle, there is one detrimental factor - home values will probably not continue to experience the rise, leaving the borrower with very few recovery options for the future.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Need Mortgage Education? Here are a few places to start...

Filed under: Mortgage servicing

One of my favorites is Mortgage Professor, run by Jack M. Guttentag. It is indepth, it covers a huge number of subjects that can be useful not only to buyers, borrowers, and sellers, but to mortgage professionals - and it's not written in mortgagese. You can visit their website for quick tips, better understanding of specific loan types, and more. Another well-put-together informational geared towards educating consumers against mortgage fraud is the "Stop Mortgage Fraud" website. They cover a great deal of information that can educate borrowers and mortgage professionals alike. For "lender specific" education, such as information about Freddie Mac, Fannie Mae, or HUD, visit their websites. Each has training and educational tools, and some even have classes or scheduled internet events that you can be a part of.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Homeowners "Needed" Creative Lending

In recent years, it borrowers were finding it more and more difficult to find a home loan that they could afford. But now it is catching up with all of us. Renters were crying out for solutions to high interest rates, bad credit loans, and in general - a way to jump on homeowner's bandwagon. It led the way for the interest only loans, the exotic loan, or as someone once put it - the "toxic loan". The question is, can lenders be creative enough to save millions of homeowners from sure financial disaster? The 40 and 50-year loans aren't gaining momentum the way it was once thought, and refinancing might become an impossibility since lenders are correctly hesitant to hand out 130% loans. Many people were unwittingly victim to the "scare tactics" used to create an urgency to buy before prices skyrocketed beyond affordability. Others bought their homes convinced that they would double their profits over the next few years. Creative lending may not be able to pull troubled homeowners out of the pending crisis at hand - and yet lenders don't seem overly concerned.

In my last post, I reflected on a comment made by a hopeful in the industry, who believes that the troubles that overburdened borrowers could experience may be an "opportunity" for lenders to cash in on the need to refinance. However, what he did not mention was the probability that many homeowners are using their equity as a cash giving ATM machine, and actually facilitating financial doom. A huge portion of buyers who were approved for either interest only or exotic loans would not have qualified under traditional standards. I have probably hit a nerve with some homeowners who feel entitled to own a home even though they can't afford one, but I speak from experience. I am a renter not only due to circumstance, but choice. I could have easily for a creative loan, but under the advice of my father, an attorney, I read the fine print. By doing so, I realized what my payments had the potential to become, and "disqualified" myself as a buyer at that time. I couldn't be happier that I made that decision. Signing the documents that were set before me would have nearly tripled the sticker price of the home. While I stood back and watched the housing market over the past 10 years, I can honestly say - right now the grass is greener in my rented yard, while my landlord stuggles with the rising interest rates and increasing mortgage payments.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Colorado Enacts Mortgage Licensing Regulations

Filed under: News by state

Colorado becomes the 49th state in the U.S. to enact licensing or registrations of mortgage brokers, leaving Alaska as the last state lacking regulation on the mortgage industry. Governor Bill Owens signed the house bill enacting the Mortgage Broker Registration Act, which will require a mortgage broker (as defined below) to register with the state by January 1, 2007, although the act went into effect July 1, 2006.

The act defines a mortgage broker as anyone negotiating, originating, or offers to attempt to negotiate or originate. Originate (under the act) means to submit an applications or documentation to a lender or underwriter in an attempt to obtain a loan. After January 1, 2007 a person may not broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker without first obtaining registration through the state of Colorado.

The act will also require registrants to pass a criminal background check, submit a disclosure of specified administrative discipline, and application fee, fingerprints, and a $25,000 bond or equivalent alternative. It also establishes criminal penalties for those who engage in any of these regulated activities without first obtaining the proper registration.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Possible Dangers in Home Equity Loans

Filed under: Interest rates, Mortgage servicing

Now, more than ever, home equity loans have become the "thing to do". With credit cards holding interest rates higher than the rate on most mortgages, homeowners are have been looking towards home equity lines of credit (HELOCs) to buy the toys that they have always dreamed of. Now this may not sound like much of an issue to the untrained ear, but to those in "the know", there is a huge problem brewing in the real estate and mortgage industries. Home prices are beginning to drop in previously booming areas, interest rates slowly climbing, and a burst the number of exotic loans have increased the risk for homeowners, borrowers, and industry professionals. So why are so many mortgage professionals remaining calm? This type of build-up of financial burdens on homeowners brings about a perfect opportunity to cash in on the increasing need to refinance to keep their mortgage payments under control. According to Brad Brunts, with Citi Mortgage, these changes will bring him more business, "It offers an opportunity."

Freddie Mac estimates that Americans took $556 billion in home equity loans or cash-out refinancing programs. With little or no equity left in their homes, many homeowners will find that when their mortgage adjusts, that their payments could nearly double. This may even leave the borrowing homeowner with very few choices, and none of them good. The homeowners could choose to sell their home, but would most likely be in a position in which they owe more on the house than it's worth, and many similar homes on the market.

So is there hope? There is, take action before it's too late. In fact, it would be better to act on it before millions of other interest-only or exotic mortgage holders join the rush to dump their homes on the market.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Getting Your Docs Signed Faster and Easier

I received a free disc in the mail, and I am truly impressed with the program. I usually don't like to try out the programs because there are so many so-called free programs that turn out to be demos. But this one said it was fully free, so I thought - what the heck.

The program is called SureDocs (some of you may already use the program.) The best thing, and worth mentioning first, is that it's FREE until January. So what does it do? Well - the part I like the best, it works within any LOS or application you are already using, sort of like a docs printer for your PC, and makes it clear where to sign with some really nifty "Sign Here" and "Date Here" symbols. Documents are immediately sent to you with an audit trail of when it was received, read, and signed. It can be easy to use either electronically with digital signatures, or the docs can be produced in PDF format for easy printing and faxing. It's definitely worth a try, and it's totally secure. Pick up a copy of the SureDocs program if you don't have a disc by visiting their download site.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

More Australians defaulting on mortgages: report (Australian Broadcasting Corporation)

With the next critical meeting of the Reserve Bank only a week away, there is fresh evidence of growing mortgage stress across Australia.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Buy-to-let for those who can't pay debts (BBC News)

Why are some lenders prepared to offer buy-to-let mortgages to people with bad credit histories?

Read More...

[Source: Yahoo! News Search Results for mortgages]

Rodobens Signs Partnership with Santander for 30-Year Mortgages (PR Newswire via Yahoo! Finance)

Rodobens Negocios Imobiliarios S.A. and Banco Santander S.A. signed a partnership agreement for the offering of 30-year mortgages at interest rate of 9%p.a.+TR to the homebuyers of units valued up to R$150,000 to be launched by Rodobens.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Beware of Lenders That Promise the World

Filed under: Mortgage servicing

When you make the decision to purchase a home, there are generally three types of financing you can opt to use to pay for the home: Cash, owner-carry, or obtaining a loan from a mortgage broker, lender, or loan officer. Chances are that you are least likely to pay cash, finding an owner to finance the purchase limits your choices in which home you would like to buy, which leaves the most popular choice: a mortgage loan. There is one very important thing to remember when looking for a lender or mortgage company - they are in the "sales" business. This is not to say that there aren't honest mortgage professionals in the industry - because there are many truly honest mortgage professionals. But because your purchase means part of your purchase price will include the paychecks of several individuals.

There are many loan officers and brokers that would like you to believe that they are not in a sales related industry, but that would be far from the truth. The reality is that all mortgage brokers, lenders, and loan officers have products that they offer, and if they are a successful sales person, their customers will "buy" their products. I have been involved in the mortgage industry for a long time, however, I believe that consumers have the right to make an informed decision about their purchases. I found a very commonly worded advertisement on Craigslist.org this evening, and thought that I would share something that I found interesting (and common) in the ad.

"Credit score is a big factor as a qualifying tool, but it's not the only one. There is a lot more to it than that and I would be happy to go over with and show you your options. You may qualify for more than you think. So give me a call for a complete NO cost evaluation even if you simply have questions." The first thought when I read the ad is that there are people out there that have bad credit, which could indicate that a buyer is not financially stable, and they are offering to find the most money available for a buyer's purchase. Okay, so in other words, more debt on an already financially strapped individual.first time buyer who does not know what they can or cannot afford, it may mean they are more likely to end up with a low introductory rate that leads to a future rate hike - and a mortgage payment that they can't afford to maintain.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

ABC Bank gives home mortgages a second try (BizJournals)

American Bank of Commerce has started offering mortgages in the Austin area after a 15-year hiatus from home loans.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mike Pero Mortgages Announces Scholarship Winners (Scoop.co.nz)

Three outstanding Year 13 high school students are the recipients of Mike Pero Mortgages Foundation tertiary education scholarships for the 2008 year.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Wachovia unit sued over option-ARM mortgages (BizJournals)

A lawsuit filed against Wachovia Corp.'s mortgage unit and World Savings Bank alleges the bank was less than honest in explaining its option-adjustable-rate mortgages to consumers.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Correcting Prices and the Interest Only Mortgage

There's been quite a bit of talk over the exotic loans and their affects on homeowners' equity lately. The more "leveling" we see in home values and prices over the next few years will have a great impact on how the loans will affect the borrower, and their ability to pay off the mortgage. Combine the "correcting" home values with the lack of payments toward the principal amount, factor in the borrowers' stretched incomes, and you have a recipe for disaster.

The interest only or I/O loan was originally set up and geared towards someone who is financially set and well prepared for the purchase of a home. However, many borrowers "stretched their buying power" with the interest loan, using the bulk of their monthly income to pay the mortgage payments. People who would not otherwise have qualified for a loan - instantly became qualified. The changes and adjustments that the rates may bring, added to the fact that many of these loans are in areas with inflated housing prices, may cause many homeowners to lose their homes and walk away with nothing due to lack of equity built up during the I/O period.

I watched a home go from $250K skyrocket to a range of $450k to $500k in just two years, then "corrected" back down to $350,000 in just a few months. If during that time a buyer "stretched" their buying limits to afford the home at $450k, in less than six months they are owing $100,000 more than the home can sell for, and with rising rates - possibly a mortgage they are no longer comfortable with. Of course, don't forget - there's relatively no equity built up in the first few years, and none for the first 10 years if the borrower obtained an interest only mortgage. Just a hypothetical - yet very real example.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

A False Sense of Equity

With so many Americans living with a false sense of security (called home equity), it's no wonder that spending has risen to an all time high. If it's not the pressure to take out a home equity loan to pay off credit card debt, there's the pressure of wanting the big kid toys like boats, cars, and oversized electronics. But what has fueled this excess spending? In part - inflated home values - in which homeowners can borrow money against their equity. The problem is, in some areas of the country, the equity in their homes is due to a temporary "bloating" of the value. This equity used to be viewed as security for the retirement years, but more and more individuals are watching their equity dwindle away while experiencing the rising debt on their home, and payments extending into their golden years. In a world where reality TV is a new form of entertainment, it's like watching a high-stakes game of "reality Monopoly".

Here's just a brief example I was able to witness in my lifetime: A home was purchased around 1970 for a price in the $40k range, and a 30-year mortgage with a monthly payment of around $80. By the mid 90's, the home was nearly paid off, but the car was getting old. The logical solution seemed to be at the time to take out a home equity loan, and buy a new car. Why not - it was becoming an increasingly popular way of obtaining the things that would otherwise not be affordable. Several years later, another new car, then an expensive sewing machine, and finally - a cruise with friends. Today - the home is valued around $300k, and the total monthly payment is in the range of $700. Not one of the more extreme examples, but a great example of the way homeowners view their home equity as a checking account - rather than a savings account.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Foreclosures Rates Jumped in June

Filed under: News by state

In May of 2006 the national foreclosure numbers came in with a grand total of 62,432. This number quickly jumped up by 7.4% with one in 1,726 households in foreclosure by June. While the total number for June topped out at 67,024 - six states have made up for more than half of the nations total.

Texas, Florida, Georgia, Ohio, and Illinois hold rates higher than the national average. California also made it into the top six states, with an increase of 19%. These six states together account for over 37,000 of the national foreclosure totals. In June alone, Texas had the highest foreclosure rate, totalling 12,693 - a 69% increase from May, raising the state's foreclosure rate to 2.7 times the national average.

This data was compiled using RealtyTrac, and many have speculated that these numbers are a small indication of what we may be seeing in the years 2007 and 2008 due to the large numbers of mortgage resets scheduled to begin in January. So far, there is very little to indicate that these numbers are not a forecast of what is to come. With the great number of exotic loans and interest only mortgages in the hands of homeowners that are already financially strapped, there is a great chance that these numbers will continue to rise, and many will find foreclosure unavoidable.

Read | Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

The Mortgages Welbog reaches the end of its term

It is my sad duty to inform all readers that this blog is retiring as of today. Our editorial priorites have gradually changed here at Weblogs, Inc., and while we are glad to have published in this space, the time has come to concentrate our resources elsewhere. As usual with our retired blogs, the Mortgages Weblog will remain visible and accessible, an archive of the excellent posts it holds. Thanks to everyone for reading!

(For fresh blogging about investing news, head over to the dynamic BloggingStocks.)

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

You've Got Mail - Mortgage Mail

Filed under: Mortgage servicing

So over the next few years, many mortgage holders will find that their mailboxes may be filling up with offers to help you refinance your mortgage. This is a serious time to consider your options. If you have a mortgage that has a low introductory rate, and you are nervous that your interest rate may rise out of control - you may actually be a prime candidate for the opportunity to break out of the adjustable rate mortgage. Although there are many people that are actually benefiting from the ARM - if your payments are already as much as you can handle - consider your options before the mortgage resets. When this happens, (for many borrowers, this could as much as double the payments) the payment shock can be overwhelming, and many borrowers could be in danger of default.

There are options that can prevent the drastic rate hike, and talking to a lender or broker that you trust can be the best option available. If you don't already have someone you trust, ask your friends and family. If you still don't have anyone you can talk to, the best thing you could do would be to talk to several mortgage and loan companies. Don't take the first answer you get as written in stone, you should definitely shop around. Also, don't be afraid to tell them that you are shopping around, you may actually get a better response, and a fair quote. Some loan officers will quote you the low introductory rates, and then you are subject to the same problems you may already have been experiencing. Not all mortgages are the same, and not all of them work in the same way. Use a mortgage calculator to come up with some figures that you are comfortable with, and then bring those figures to your lender. Discuss the possibilities with your loan officer, there are definitely things you can do to prevent disaster before your mortgage resets.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Changes Needed In Mortgage Industry

Is it enough just for consumers to be aware of the issues that the mortgage industry are facing - or maybe the mortgage industry needs to take some responsibility in the relaxed regulations that govern the industry. Possibly, but since that has been a topic of debate among industry leaders due to the increase in publicized mortgage fraud there has been less of an emphasis on the more common problem with loan officers, brokers, and lenders: commission-vision. Okay, so that's not an official, but compared with tunnel-vision the affects are surprisingly similar.

When a professional in the mortgage or lending business only has one thing on their mind, the results can be disasterous for the borrower. There are laws popping up all over the country regulating title loans and payday loans, so why are there not more laws regulating the mortgage industry, designed to protect the consumer? Well, most states have laws, although they could be more defined, and more closely monitored. Some states have no regulatory laws on the industry, and fraud is rising at an alarming rate. But paycheck "boosting" doesn't seem to fit very tightly into the current laws.

So how can you protect yourself as a consumer? Education. Knowledge is power - we've all heard it, but believe it. The more you know about a subject (and are confident about that knowledge) the less likely you are to be dooped. If you were receiving advice from your doctor that you didn't believe or agree with, you may opt for a second opinion - it may be best to also get a second opinion about your mortgage options. Don't believe everything that your loan officer tells you, check it out for yourself - it could save you thousands, or even save your home. The moral of the story? Just don't put all of your marbles into one jar because if it breaks, you may end up loosing your marbles!

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

100% mortgages twice as popular as last year (Money Marketing Online)

Twice as many people have taken out 100 per cent mortgages in the nine months to September 2007 compared to the same time last year according to the Mortgage Advice Bureau.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Types of Mortgage Fraud - Raising Awareness

There are many types of mortgage fraud, but to raise awareness about this extremely rampant crime - we all need to be aware of the different types of fraud that are used. As one of our readers pointed out, there are FBI agents that are currently pursuing individuals and groups who are not only committing crimes with full intention of defrauding their customers, but they are also actively investigating common documentation "errors" that can be construed as mortgage fraud.

While not all mortgage professionals are intentionally participating in criminal activity, the only way to stop the "mistakes" that can lead to criminal prosecution is to become truly educated in the mortgage process, and make sure that all the documentation is correct and complete. It is extremely important that the lender or broker provide copies of ALL documentation.

As a consumer, the best protection that you can give yourself is education. Read all documentation BEFORE you sign. Don't just trust that your mortgage broker or lender is going to be completely honest with you. Remember - their paycheck depends on the outcome of the transaction. If you feel uncomfortable, don't give in to pressure, you must feel comfortable with every aspect of the purchase, and may even be in your best interest to have an attorney go over the documents before you sign. If you are put into a position in which you do feel overly pressured, there may be a problem - there may be a hidden agenda that is in the works, and you have every right to take some extra time to read through the disclosures and the documents that you are signing. The key is education - so if you don't understand something, ask questions until you do.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

The Problem With Option ARMs

Filed under: Interest rates, Mortgage servicing

The option ARM became very popular, and with the real estate rush that we experienced over the past years, it's no wonder how so many people became wrapped up in the many types of creative loans for buyers to choose from. However, the option ARM wasn't intended to be used by buyers who "wanted more house for their money" - it was created as a good choice for investers and homeowners who were not going to own the home for very long. But the majority of buyers who are now stuck with this type of loan were exactly the buyers who should have been wary of the option ARM.

But in reality, rates have begun to rise and home values are dropping in many areas, and the option ARM has become more of a danger than it looked to be in the past. With an option ARM, there are several choices for the monthly payment, but the choice that poses the most risk is to pay the minimum due. This would be a similar risk to paying your credit card off by simply making the minimum payments. If you pay the minimum paymnet on your credit card, you would end up with a balance that is greater than the original charges. This would be exactly the result on an option ARM in which the homeowner paid just the minimum payment option.

Most borrowers with the opton ARM are opting to pay just the minimum payment, and are putting their homes at risk. The minimum payment is usually calculated using the first month's interest rate, generally a low "teaser rate" as low as 1-2%. When the monthly payments are not even covering the total amount of interest that is accumulating, the balance of the loan continues to grow, while the value of the home may not be rising as quickly as the balance due. Any unpaid interest is added to the principal, and the total of both are then used to calculate future payments. This is called negative amortization, which can present only problems for both the borrower and the lender.

Permalink | Email this | Linking Blogs | Comments

Read More...

[Source: The Mortgages Weblog]

Mortgage Interest rate Predictions.

UK interest rates are currently 5.75%. A few months ago, may forecast that interest rates would soon rise to 6% and possibly higher. However, recent events suggest that interest rates may have peaked already, and in the coming months interest rates could fall due to lower inflationary pressure.Reasons why interest rates are predicted to be [...]

Read More...

[Source: Mortgage Blog]

Awful forecast for mortgages (Long Island Business News)

In all phases of the mortgage industry, from the people who make the loans to the people who insure them, the news was bad - and most of them expect it to get worse.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mortgage industry pushes for e-mortgages (The Bolingbrook Sun)

The dream of today's mortgage lenders and brokers: paperless e-mortgages. The Internet and the digital era have opened the door to almost everything else - why not replace those piles of mortgage paper documents with a fast and easy paperless digital system? It could save a lot of time, money and frustration. But there are formidable problems in its development.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Long-term loan appetite low (FT.com via Yahoo! News)

The public is showing little interest in long-term fixed-rate mortgages, threatening to derail government plans to encourage borrowers to opt for long-term deals.

Read More...

[Source: Yahoo! News Search Results for mortgages]

NAMP Views FHA Reverse Mortgages as Providing Flexibility for Borrowers (PRWeb)

The FHA Reverse Mortgage Program provides homeowners past age 62 to borrow against the equity in their home, without limitations of asset or income, and without required payment for the duration that the home is occupied by the homeowner. The National Association of Mortgage Processors (NAMP) and FHA Online University seek to educate mortgage professionals about how they can arm themselves with ...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Rates on 30-Year Mortgages Drop Sharply (Washington Post)

WASHINGTON -- Rates on 30-year mortgages fell to the lowest level in six weeks as financial markets grew more hopeful that the Federal Reserve will boost the sluggish economy by cutting interest rates further.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Rates on 30-Year Mortgages Drop Sharply (San Francisco Chronicle)

Rates on 30-year mortgages fell to the lowest level in six weeks as financial markets grew more hopeful that the Federal Reserve will boost the sluggish economy by cutting interest rates further. Freddie Mac, the mortgage company, reported Thursday...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mortgage Rescue Schemes

Mortgage rescue is when a firm or the government step into prevent your home being repossesed. It involves selling your home to the firm. They then rent it back to you.Quite often a mortgage rescue firm will pay less than the market value for the house. However, the new rent will probably be less than [...]

Read More...

[Source: Mortgage Blog]

How To Get out of Debt and Live Prosperously

The UK is experiencing a record number of consumers struggling with huge personal debts. This book shows how you can get out of debt.It does not offer any quick fixes, but encourages the reader to target the root cause of debt, which is usually overspending. Drawing on personal examples, from the author’s own experience and [...]

Read More...

[Source: Mortgage Blog]

5 Tips to Consolidate Debt

Debt consolidation is the process of moving debts into one single debt, usually at a lower interest. These are some tips for getting best deal from debt consolidation.1. Use Value of HouseThe lowest interest bearing loan is probably your mortgage. Make sure that you use the equity in your house to consolidate debt. For [...]

Read More...

[Source: Mortgage Blog]

Mortgages Plc withdraws from medium adverse sector (Money Marketing Online)

Merrill Lynch subsidiary Mortgages plc has confirmed it is withdrawing from the medium adverse sector of the non-conforming market. Medium adverse products will be withdrawn on October 26 and all current applications must be submitted by October 31.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Countrywide to modify $16 billion in mortgages (The Philadelphia Inquirer)

Countrywide Financial Corp., the biggest U.S. mortgage lender, said yesterday that it would change the terms on $16 billion worth of adjustable-rate mortgages, making it easier for those homeowners to keep their properties.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Fewer Australians Looking to Banks for Mortgages (PRWeb)

One in two Australians no longer wants to deal directly with a bank for their mortgage, according to a research just released by Global Reviews. Mortgage brokers were seen as more focused on consumer needs, with just 15% of respondents saying that banks understood their mortgage needs compared to 33% for mortgage brokers. This research, the "Mortgages Industry Monitor 2007", was conducted online ...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Lenders slow to rescue failing mortgages (AP via Yahoo! News)

Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans with interest rates set to adjust by the end of 2008.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Paying your mortgage with a Credit Card

A report by You Gov suggested that 8% of young people are paying their rent or mortgage with a credit card. This is despite the fact that mortgage companies are often unwilling to permit credit card payments.The rise in use of credit cards is due to the increased cost of living in the UK. Rents [...]

Read More...

[Source: Mortgage Blog]

Countrywide will rework $16B in mortgages (WZZM 13 Grand Rapids)

Countrywide Financial announced Tuesday that it will restructure or refinance $16 billion in adjustable-rate mortgages.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Countrywide to refinance or modify $16-billion in mortgages (The Globe and Mail)

Troubled lender will begin calling borrowers to offer refinancing or modifications on adjustable rate mortgages

Read More...

[Source: Yahoo! News Search Results for mortgages]

Lender plans to redo mortgages; How does your loan compare? (USA Today)

USA TODAY's Noelle Knox has some good news for Countrywide customers. In an exclusive front-page report, she says America's largest mortgage lender plans to redo some $16 billion in adjustable-rate mortgages. Countrywide says the new policy will help 82,000 homeowners,...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mortgages for Your Children

The record increases in house prices has caused an increase in intergenerational wealth inequality. Basically, people who bought houses 20 years ago, have benefited from a rise in wealth. However, the younger generation face an uphill battle to get a mortgage.Therefore, many parents feel obliged to help their children get a mortgage.There are various ways [...]

Read More...

[Source: Mortgage Blog]

Is 2008 a good time to buy a house?

With concerns over falling house prices and a potential imminent collapse in property prices, many people are worried about whether they should delay buying a house.The IMF recently suggested UK house prices are overvalued by 50%. For example, they point to the fact house prices have risen faster than incomes and rent. However, this doesn’t [...]

Read More...

[Source: Mortgage Blog]

7 Simple steps to getting out of Debt

1. Don’t PanicIf you find yourself in debt, don’t let it dominate your life and thoughts. The best way to deal with debt, is to make a plan of action to resolve the situation. It is only when you know the full extent of your problem that you can work out what you need to [...]

Read More...

[Source: Mortgage Blog]

Congress bill targets predatory mortgages (The Arizona Republic)

A leading House Democrat took on the banking industry Monday with a bill to restrict lending practices partly blamed for the nationwide surge in mortgage foreclosures.{b} Predatory-loan proposal based on strict N.C. law

Read More...

[Source: Yahoo! News Search Results for mortgages]

Reduce mortgage or save?

If you find yourself with extra income you may wonder which is the best option, make payments to your mortgage or save the money in an alternative savings plan.Paying off your mortgage can save you significant interest payments. There is a snowball effect because the earlier you pay off the debt, the lower future interest [...]

Read More...

[Source: Mortgage Blog]

Mortgage Fraud

Mortgage fraud involves various practices of obtaining a mortgage through deception and false account. It can result in serious penalties; there are several cases of prison sentences involved.Mortgage fraud in the UK can involve:Fraudulent income statements.false driving licenses and other documentsinconsistent data.

Read More...

[Source: Mortgage Blog]

Hawaii could see rise in FHA-backed mortgages (BizJournals)

The Federal Housing Administration has backed little more than 2 percent of the nearly 55,000 mortgages written in Hawaii through September of this year.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Richer homeowners find reverse mortgages useful (Eagle-Tribune Online)

Reverse mortgages have been a popular tool for cash-strapped retirees, but wealthier folks are finding ways to use them, too.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Emerging markets could be next bubble (Market Watch)

WASHINGTON (MarketWatch) -- Investors searching for big returns and no exposure to U.S. subprime mortgages are looking at emerging markets, raising the possibility that too much money could flow in, pumping up another bubble, top international bankers warned Sunday.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Memo (Southeast Missourian)

Lawyer talks about mortgages via podcast The Missouri Bar is offering a podcast featuring real estate and banking lawyer Lee Viorel discussing options for people having trouble paying their...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Buyers Pounce as Homes Go on the Block (New York Times)

For some investors, the misery of subprime loans, exploding adjustable rate mortgages and slumping sales mean one thing: opportunity.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Doubts over UK fixed mortgages (FT.com via Yahoo! News)

Plans to help borrowers secure more affordable rates for long-term fixed-rate mortgages, announced in Alistair Darling's pre-Budget proposals, are unlikely to increase demand significantly, experts say.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Mortgage Refusals.

The number of prospective mortgage applicants who have been refused a mortgage, has increased by 60% since the northern rock problems.The reason for an increase in the number of mortgage refusals is:1. Many US mortgage lenders went bankrupt.Therefore, mortgage lenders are wary of taking on more sub prime debt. UK mortgage lenders are also becoming [...]

Read More...

[Source: Mortgage Blog]

Refused a Mortgage? - Options of things to do.

Getting refused a mortgage is not the end of the world. Also, it is unlikely to adversely affect your credit rating. It is not like applying for a credit card. Often getting refused for a mortgage simply means that you haven’t got sufficient income to get the desired amount of mortgage.Things to do if [...]

Read More...

[Source: Mortgage Blog]

She took a swing for better service (Minneapolis-St. Paul Star Tribune)

WASHINGTON - Sometimes truly American virtues arise in outlaws who -- by dint of heroic but questionable endeavors -- display the mettle of the national character. For instance: The Dillinger Gang, robbing banks (and destroying mortgages) when banks were foreclosing on the poor. Stephanie St. Clair, matron of the numbers racket during the Harlem Renaissance, striking a (dubious) blow for both ...

Read More...

[Source: Yahoo! News Search Results for mortgages]

House auction gives good news to North Side (Minneapolis-St. Paul Star Tribune)

A savvy inner-city housing investor with $11 million in her pocket emerged as the leading buyer Saturday for north Minneapolis homes that are part of a two-day auction of 300 bank-foreclosed Minnesota houses at the Minneapolis Convention Center. This is good for North Side neighbors, who have been disproportionately affected by vacant houses, thanks to loan scams and adjustable-rate mortgages ...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Getting best Mortgage Quote Deals

With mortgage repayments reaching upto 50% of household incomes, getting the best mortgage quote is of vital importance. It may seem just a few % points, but it can make a big difference to your quality of life. These are some factors which can help determine whether you get the best mortgage quote deal.Know the [...]

Read More...

[Source: Mortgage Blog]

UK lenders sell out of two-year mortgages in days (Financial Times)

Lenders are selling out of short-term mortgages within days as homeowners rush to remortgage properties on reduced rates. The offers have proved so popular they have been pulled from the market with no notice, leaving many customers stranded, advisers say.

Read More...

[Source: Yahoo! News Search Results for mortgages]

How mortgage payments and interest are calculated (Seattle Times)

The thing that most borrowers know about their mortgages is the amount of the initial scheduled payment. This is the amount they are obliged...

Read More...

[Source: Yahoo! News Search Results for mortgages]

Subprime mortgages shall return, but they will look different (Market Watch)

BOSTON (MarketWatch) -- Although "subprime" has become a four-letter word in the country's collective lexicon and no one is sure when the credit crisis that was spawned by a meltdown in the risky lending sector will ease, mortgage bankers say you can count on this: Subprime shall return.

Read More...

[Source: Yahoo! News Search Results for mortgages]

Timely Payments on New Mortgages Rise (WallStreet Journal via Yahoo! Finance)

More people are managing to keep up with payments on mortgages made in recent months, a study found, reflecting more-conservative lending policies.

Read More...

[Source: Yahoo! News Search Results for mortgages]