Monday, August 23, 2010
Monday, August 16, 2010
New Approval!!!! First Franklin 2nd Mortgage
Client is saving $447.00 a month and the interest rate has gone from 8.375% to 0%
Below is the Old and New Terms!
Old Terms
$137,800.00 Loan Amount
8.375% Interest Rate
30 Years
$1,047.00 Payment
11 Payments behind
New Terms
$124,749.00 Loan Amount
0.00% Interest Rate
$600.00 a month
17 Years 4 Months
Current
My Client is saving $114,506.72 in Interest alone!!!!! On top of that the Bank has agreed to allow the Client to payoff the loan for 25% of the balance down the road if the Client chooses too.
Let me help you Modify or Settle Your Mortgages!
Thursday, August 12, 2010
Fixed mortgage rates hit record lows: Freddie Mac Mortgages - MarketWatch
"Low rates are helping to heal many battered local housing markets by increasing home-purchase activity," said Frank Nothaft, vice president and chief economist at Freddie Mac, in a news release.
Fixed mortgage rates hit record lows: Freddie Mac Mortgages - MarketWatch
Monday, August 9, 2010
Loan Modification Approvals
http://www.mediafire.com/?sharekey=8sum968m68ldm
ASC
Old Terms
$548,000.00 Mortgage Balance
7.625% Interest Rate (Adjustable Rate)
$3,878.71 Principal & Interest
$644.02 Escrow
$4494.73 Total Payment
6 months behind
$1,396,335.50 total payments over the life of the loan
$848,335.50 total interest over the life of the loan
New Terms
$531,631.45
5.00% Interest Rate (Fixed Rate)
$3,145.30 Principal & Interest
$644.02 Escrow
$3,789.32 Total Payment
$1,027,869.54 total payments over the life of the loan
$495,999.54 total interest over the life of the loan
$368,465.96 Saved over the life of the loan.
Homeowner is now current.
Challenges for the Economy and State Governments
Below is an outline using excerpts from his speech. We've been grinding this ax for the last year or so and think it is an important perspective to keep in mind.
Read Story here http://www.mortgagenewsdaily.com/08022010_educate_america.asp
Read the Speech here http://www.federalreserve.gov/newsevents/speech/bernanke20100802a.htm
Need to Refinance, Purchase or Modify your home loan
Monday, August 2, 2010
Foreclosure Filings Increase By 21%
Recent data from RealtyTrac showed over 3.9 million foreclosure filings, including default notices, scheduled foreclosure auctions and bank repossession were reported on 2.8 million properties in 2009, up 21% from 2008 and 120% from 2007.
"As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans," said James Saccacio, chief executive officer of RealtyTrac, Irvine, Calif.
"After peaking in July with over 361,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline."
MortgageStats
Thursday, July 29, 2010
Fixed-rate mortgages break record lows
Thirty-year fixed-rate mortgages averaged 4.56% during the week ending July 22, down from 4.57% last week and 5.20% a year ago. Fifteen-year fixed-rate mortgages averaged 4.03%, down from 4.06% last week and 4.68% a year ago.
http://www.marketwatch.com/story/fixed-rate-mortgages-break-record-lows-2010-07-22
Tuesday, July 27, 2010
Friday, July 23, 2010
Five U.S. bank failures raises 2010 tally to 101 - MarketWatch
Five U.S. bank failures raises 2010 tally to 101 - MarketWatch
Thursday, July 22, 2010
4 Reasons To Fear Deflation - Yahoo! Finance
When the price of cars or sweaters or iPods declines, it's a break for consumers and a welcome sign that economic productivity is improving. That helps drive up living standards. But when the price of everything drops, it's an alarming development that portends stagnation.
The consumer price index, which measures inflation, declines every now and then, usually when there's a big drop in the price of volatile goods like energy or food. But there hasn't been sustained deflation in America since the early 1930s. Now, we may be on the verge of yet another unnerving economic adventure. Inflation over the last 12 months has been a scant 1.1 percent, which is below the level most economists deem optimal. And so far this year, inflation on a monthly basis has been negative as often as it's been positive. The odds are growing that low inflation could become deflation--with some economists worried that it has already started to happen.
[See 14 things that are getting cheaper.]
If you feel like cheering, don't. The Federal Reserve, with a mandate to keep inflation in check, prefers a "Goldilocks" economy, neither too hot nor too cold, with modest growth and an annual increase in prices of 1 to 3 percent. But inflation projections for the next couple of years are now coming in lower than that, and Fed policymakers have begun to hash out what to do if overall prices actually start falling. Here's why deflation can be such a thorny problem:
Once it arrives, deflation is hard to cure. Sustained deflation can become a pernicious problem that's hard to shake even when the government attacks it, as Japan has learned over a prolonged deflationary period that began in 1991. Falling prices cut into revenue at firms that build things and provide services, so they need to cut costs to remain profitable. That usually leads to layoffs and pay cuts. When people bring home less money, they invariably feel worse off and buy less. So demand for products falls further, forcing even deeper price cuts to entice consumers. Breaking the cycle becomes a destructive game of chicken between companies and consumers, with neither willing to take the first step.
[See why raises are so scarce.]
The mere fear of deflation can cause it. The level of confidence in the economy can be self-fulfilling, especially with deflation. If consumers believe that prices in general are falling, they'll wait as long as possible to buy stuff they don't immediately need, to get the lowest price. Falling demand then forces merchants to cut prices even more, to lure buyers. A good illustration is the struggling U.S. housing market, where falling prices have kept buyers on the sidelines as they wait for the market to bottom out--while lack of demand sends prices even lower. This is one reason why moderate inflation is considered healthy. If consumers believe overall prices are going up over time, they might wait for discounts or seasonal sales on some stuff, but they won't wait indefinitely to make ordinary purchases. Deflation, by contrast, can badly distort buying decisions.
Falling prices can be ruinous. Deflation also wreaks havoc with lending and credit, which is essential to a healthy economy. When prices and wages are falling, debts become more expensive over time, which is the opposite of what happens with normal inflation. If your income were falling by 3 percent a year, for example, and you made a fixed mortgage payment every month, then the mortgage payment would eat up an increasing amount of your income over time. Such perverse economics encourages savvy investors and ordinary consumers alike to hoard cash, since a 0 percent return on money stashed under the mattress is better than "investing" money in a home, business, or other asset that's likely to fall in value. Since credit is the lifeblood of capitalism, a sharp cutback in lending and investing is a sure way to torpedo growth or make a recession worse. That's what happened in Japan during its "lost decade," and even now, Japan still struggles with deflation and its nasty side effects.
[See 4 things financial reform won't do for you.]
Preventing deflation is tricky. The Fed has lots of experience at fighting inflation and fairly precise ideas for how to do it: Basically, raise short-term interest rates in order to raise the cost of borrowing, tamp down spending, and reduce the demand for goods, to help drive down prices. Doing the opposite to fight deflation works for a while, as lower rates make money cheap and boost the incentive to borrow and spend. The problem comes when the Fed's short-term rates get close to zero, which they are now. Since interest rates can't go below zero, this "zero-bound" problem forces the central bank to start pulling other, less-proven levers--like buying assets to inject money into the economy, which is essentially the same as printing money.
[See 6 strains on your financial future.]
The Fed has already executed some of those maneuvers, taking more aggressive action than bankers in Japan in the 1990s, who dawdled and made the problem worse. The Fed could do more if it seems necessary. The danger is that the Fed overshoots or guesses wrong, and ends up creating inflationary pressure that could force it to jack up rates down the road, which could choke off a recovery. At the moment, the Fed feels that deflation is possible but not likely, so it's sticking with policies geared toward low inflation. But the Fed has guessed wrong on the extent of unemployment and other issues, and its extended low-rate policy earlier this decade is widely viewed as a mistake that helped fuel the housing bubble. Let's hope the Fed has learned a thing or two.
4 Reasons To Fear Deflation - Yahoo! Finance
Wonk Room » GOP Calls For Ending Mortgage Modification Program, Leaving Homeowners To The Mercy Of The Banks
For months now, the Obama administration’s Home Affordable Modification Program (HAMP), which is meant to facilitate mortgage modifications for troubled borrowers, has been sputtering along, with more borrowers dropping out of the program than receiving permanent modifications. Banks have been reluctant to go along with the program, as it includes no stick when they fail to provide a modification for eligible borrowers. Alternate programs meant to cut loan principal (the outstanding loan amount) have also been slow to get up and running.
As Shahien Nasiripour pointed out, according to a recent Government Accountability Office report, the average homeowner in HAMP “owes their mortgage lender more than $1.50 for every dollar their home is worth, which means they fall into the stratum of homeowners most likely to simply walk away from their mortgages.” This has led a duo of Republican lawmakers to call for ending the program “immediately,” and to advocate leaving borrowers at the mercy of private modification programs:
“It defies common sense that taxpayer money is being used to pay banks to modify loans that are likely to default anyway,” said Rep. Darrell Issa (Calif.), the ranking Republican on the House Committee on Oversight and Government Reform. “In cases where loan changes could keep borrowers out of foreclosure, banks have a clear incentive to make changes without a need for public funds”…Issa and [Rep. Jim] Jordan (R-OH) argued that homeowners and taxpayers would be better off in private modification programs.Despite all of HAMP’s troubles, private modification programs are likely to be much worse, leaving homeowners up to the whims of banks that can’t even keep their borrowers’ documents straight. As Tim Fernholz pointed out, private modifications “don’t usually lower monthly payments enough to keep borrowers in their homes. Even the best industry modifications [only] attempt to make mortgage payments 38 percent of monthly income.”
“What [the industry] calls a loan-modification is really a workout plan. It is designed to bring their arrears up to date because of a one-time economic dislocation,” said Kathleen Day of the Center for Responsible Lending. “That is not a remedy for someone who holds a loan that is fundamentally flawed and unaffordable.” Diane Thompson, a lawyer with the National Consumer Law Center, said that homeowners would be worse off 90 percent of the time if they were forced into private modifications instead of public.
HAMP has absolutely been a disappointment and desperately needs some fixes if it is ever going to achieve the administration’s stated goal of keeping millions of homeowners in their homes. But abandoning any attempt to help borrowers who were buried by the bursting of the housing bubble will only result in more foreclosures and blighted neighborhoods, thus prolonging our economic difficulties.
Wonk Room » GOP Calls For Ending Mortgage Modification Program, Leaving Homeowners To The Mercy Of The Banks
Which Banks are -- and Aren't -- Modifying Home Loans? | BNET Financial Services Blog | BNET
Of the big banks, Bank of America has the worst record in using HAMP (regrettably not my mortgage lender). Of the roughly 796,000 mortgages B of A serviced that were at least 60 days late (counting loans made by its Countrywide unit), it invited some 100,000 homeowners, or 13 percent, to adjust their mortgages and started trial modifications with some 28,000, or four percent.
Such figures sound markedly less impressive than those cited by B of A chief executive Ken Lewis. In congressional testimony in June, he said his company had adjusted more than 311,000 loans since buying Countrywide in July 2008 (those numbers include all B of A modifications, not only those arranged under HAMP), telling lawmakers that the bank remains committed to “working with distressed homeowners to help them retain their homes.”
Nor does that four percent total seem entirely consistent with the sentiment recently expressed by Barbara Desoer, president of B of A’s home loans and insurance division. “We can control how we build our business to help families achieve their homeownership dreams,” she told the California Bankers Association in June. “And all of us can focus on finding solutions to the current crisis that help restore financial security and peace of mind to those we serve.”
Wells Fargo has the next worst record among large banks in helping keep families’ homeownership dreams alive, with only six percent of its mortgage customers getting a trial modification. Unfazed by single digits, Mike Heid, co-president of Wells Fargo Home Mortgage, nevertheless asserted in a statement today that “HAMP is an important part of the [Obama] administration’s efforts to provide mortgage relief and stabilize the housing market.” Evidently unconvinced, however, in this case by himself, Heid goes on in the news release to ruefully acknowledge that “we know we’ve fallen short of our customer service goals in some cases.”
The feds aren’t pleased with mortgage lenders. “I think we’ve been disappointed . . . about their performance in helping people in a timely fashion with the respect they deserve under difficult circumstances,” Assistant Treasury Secretary Michael Barr told McClatchy.
If it seems like I’m picking on big banks, I am. When they were struggling, both B of A and Wells Fargo sucked down taxpayer dollars like binge drinkers at a frat party. Some of that money came from their own mortgage customers, many of whom need help.
Still, it’s worth noting that no mortgage lender of any size is using HAMP as much as the government expected them to when it launched the program in February. Lenders avoid modifying loans for two major reasons: Fear that borrowers who get a modification will re-default on the loan, and hope that financially distressed homeowners will somehow manage to keep up their payments.
Fear and hope. The very stuff dreams are made of.
Which Banks are -- and Aren't -- Modifying Home Loans? | BNET Financial Services Blog | BNET
Current Loan Modification Approvals
Up to Date Loan Modification Approvals
Click below to see most updated Approvals! Banks are doing modificationsGet yours started today!
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http://www.mediafire.com/?sharekey=3d1ffe6f43605ab0ab1eab3e9fa335ca6c1c07dfff641360
Mortgage Rates Suffer as Lenders Process Influx of New Applications
The most aggressive loan pricing we've ever witnessed was offered by lenders last Friday. If you were trying to call a bottom, that's the latest one. The Mortgage Bankers Association confirmed this for us today when they released the results of their Weekly Loan Applications Survey.
From the Release:
"The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent, with points increasing to 1.04 from 0.96 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This was the lowest 30-year contract rate ever recorded in the survey. "
When the modest two day change in consumer borrowing cost is put in that light, a TWO(2) day losing streak doesn't seem all that bad. Does it?
I still have one more thing to share, this time it's good news: LENDERS REPRICED FOR THE BETTER THIS AFTERNOON!
They were a bit slow to do so and it took a hefty sell off in stocks to force it out, but lenders eventually reprice for the better this afternoon. Some reprices were big enough to erase the previous two days of weakness, but most just offset the cost increases seen this morning on first pricing releases.
The best par 30 year fixed mortgage rates are still in the 4.375% to 4.625% range. 4.50% is "best execution" on a no points loan. These quotes assume a borrower has minimal risk-based loan level pricing adjustments. On conventional loans, this means borrowers with 740+ middle FICO scores, looking to do an 80% or less loan to value rate and term (or purchase) on their primary residence. If this is not your credit/collateral profile, your borrowing cost will be higher. The highest rates that should be charged: 5.25% (lots of LLPAs!)
Because mortgage rates are near all time lows, more and more consumers (not as many as last year) are coming down off their fences and applying for a refinance. Refinance demand is driving activity in the mortgage market. The MBA's refinance applications index hit a 14 month high last week! This means lenders are operating near full-capacity. When this happens, lenders generally let loan pricing worsen to slow down new loan production. This is playing out right now in the primary mortgage market...(at three very large lenders specifically)
The manner in which loan pricing worsened today (wider primary/secondary spreads) indicates some lenders are trying to slow down the pace of new loan production via higher mortgage rates (relative to MBS prices/yields). Besides potentially higher borrowing costs, consumers and loan officers should also notice longer "turn times" at lenders, which is basically the amount of time it takes to go from application to closing.
Have you noticed longer "turn times" lately?
http://www.mortgagenewsdaily.com/consumer_rates/163946.aspx
Tuesday, July 20, 2010
25% of your Closing Costs* back to you in Cash once your loan closes!
This is Originated Points and Rebate Points Only. Title & Other Third Party costs are not included.
CLICK HERE to get started!!!
A Look at Foreclosures Costs
Earlier this month a reader, Pamela Norvell, wrote a suggestion for lessening the foreclosure crisis. She suggested a freeze and/or a rollback of interest rates to their original levels. In making her suggesting Ms. Norvell wondered what it was causing lenders to foreclose on properties rather than do a workout or a restructure. Made us curious too.
The cost of a foreclosure, it turns out, is pretty staggering and we wonder why lenders and the investors they represent aren't jumping at a solution, any solution, that would allow them to avoid going to foreclosure whenever possible.
According the Joint Economic Committee of Congress, the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300.
The cost of preventing a foreclosure is not easily categorized. We assume that it includes the staff costs of talking to the borrower, collecting financial documents (a task we have noted seems unreasonably difficult for the borrower) reviewing the documents, ordering and reviewing the appraisal, the cost of that appraisal (more likely to be a less expensive brokers price opinion or BPO) and the preparation of a justification to decision makers for any workout plan.
A Look at Foreclosures Costs
Thursday, July 15, 2010
Up to Date Loan Modification Approvals
Get yours started today!
800-208-4753 Office or refionce@gmail.com
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