Category Archives: Loan Programs

What is a Cash Out Refinance?

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 […]

Affordable Financial Services LTD Says New HUD Regulations for Mortgages Will Hurt Smaller Lenders

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 […]

MBA: Home Purchase Applications Fall

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 […]

More Borrowers Missing Home Equity Payments

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 […]

Home Loan Originations Increase for Third Straight Month

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 […]

Report Says Almost Half of Homeowners in HAMP Default Again

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 […]

Obama: $943 Million May Be Needed to Bail Out Federal Housing Administration

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 […]

Study Shows Pre-purchase Counseling Can Be Effective Tool Against Default

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 […]

FHA Loans Help Foreclosed Homeowners Bounce Back

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 […]