A cash-out refinance is a refinancing of an existing mortgage loan, where the new mortgage loan is for a larger amount than the existing mortgage loan, and you (the borrower) get the difference between the two loans in cash. Basically, homeowners do cash-out refinances so they can turn some of the equity they’ve built up […]
Brian Leibowitz, CEO/Owner, Affordable Financial Services LTD, says the new rules from the U.S. Department of Housing and Urban Development regarding mortgages will negatively impact the mortgage lending business. He says the rules — which will take effect on January 10, 2014 — will place an unnecessary burden on these financial institutions, especially on the […]
The applications for the purchase of newly constructed homes have decreased last month by about 18% from October levels, according to The Mortgage Bankers Association’s (MBA) latest builder survey. The builder survey is conducted from mortgage subsidiaries of homebuyers across the U.S. After the data was concluded and assumptions about market coverage were made, sales […]
A growing number of U.S. borrowers have missed payments on home equity lines of credit (HELOC), even as mortgage delinquencies have been declining. As many borrowers are beginning to hit their loans’ 10-year anniversary, they will have to start paying the principal balance as well as the interest at this time. Therefore, homeowners will see […]
For the third consecutive month, loans that originated for purchasing homes have increased. According to Ellie Mae’s Organization Insight Report for April, these loans made up for 42% of total loan originations, compared to 38% in March and 27% in January. Of these loan originations, 68% were conventional loans and 22% were Federal Housing Association […]
Sigtarp, a report from the Troubled Asset Relief Program, showed that borrowers who had their mortgage payments reduced under the Home Affordable Modification Program (HAMP) are still having trouble keeping up with their payments, despite having their payments reduced on average by more than $400 a month. During the third quarter of 2009, forty-six percent […]
President Barack Obama recently announced that the Federal Housing Administration may need a bailout to the tune of $943 million in taxpayer money to keep the agency afloat. If this were to happen, it would the first time in FHA’s 80-year history that the government-based mortgage insurer would need a bailout. The FHA is taking […]
A recent study by NeighborWorks shows that prospective homeowners who underwent pre-purchase counseling before obtaining a mortgage were less likely to default on their mortgages than those who did not seek counseling. NeighborWorks studied 75,000 mortgages originated between 2007 and 2009 and found that those who went through the counseling program were 33% less likely […]
The Federal Housing Administration has announced that it will be implementing changes to its Home Equity Conversion Mortgage (HECM) program by the end of the month. These changes include a moratorium on the Standard Fixed Rate HECM reverse mortgage and creating guidelines for conducting financial assessments of borrowers and an escrow account to pay for […]
Homeowners who were forced to foreclose their homes are now said to be homeowners once again due to Federal Housing Administration-backed loans. A borrower usually does not receive mortgages for the allotted a seven-year period due to the foreclosure of their home. However, as a result of the new FHA loans put in place, homeowners […]