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New Mortgage Rules Make Buying Harder For Riskier Buyers

2014 Gaaranteed Mortgage Rules

The new mortgage rules that went into effect on January 10th could hurt lower income buyers going forward. Under the Dodd-Frank Act that was passed in 2010, lenders are now going to have to have to make a ‚Äúreasonable, good faith determination‚ÄĚ that a borrower can repay the loan before the loan is written. This sounds like common sense, but ... Read More »

Half of Bank of America’s Mortgages are BAD

When the federal government talked Bank of America to take over Countrywide Mortgage they really hamstrung the North Carolina bank. After suffering multi billion dollar losses over the past couple of years and overwhelming the infrastructure with short sales and foreclosures Bank of America is taking action. Executive Terry Laughlin has stated that half of the banks mortgages are bad. ... Read More »

Freddie Mac and Fannie Mae To Be Shut Down?

Today the Obama administration outlined 3 different scenario’s that would shut down Freddie Mac and Fannie Mae as the backstops of the mortgage markets. All of the administration’s proposals envision a scaled-back role for the government, and officials emphasized the goal of restoring the market for mortgage-backed securities issued without the government’s guarantee. … One option proposed by the administration includes ... Read More »

The Coming Battle Over The Mortgage Interest Deduction

The real estate and mortgage lobby will be going to battle in Washington DC soon as the deficit commission is calling for the elimination of the mortgage interest deduction. For myself, it is an internal battle. As an advocate for the real estate industry the loss of the mortgage interest deduction will hurt the value of homes on the higher ... Read More »

Do Our Politicians Really Want To Fix Freddie Mac and Fannie Mae?

As we head to the end of the 2010 election cycle, Republican’s are announcing in their Pledge to America that they want an end to the government takeover of Freddie Mac and Fannie Mae. Democrat’s meanwhile like the idea of the home lending industry being under government control so that it can influence housing policy from a fiscal level. Yet ... Read More »

Taking Out A Mortgage? Banks Will Monitor Your Credit 24/7 Now

Fannie Mae is taking a dim view of mortgage borrowers who try to scam the system by taking out new loans while their mortgage is being processed. Typically banks will check your debt to income ration in the beginning of the application process. Some borrowers took that as a green light to add debt right after they qualified for the ... Read More »

Wells Fargo Requesting Motivation Letter From Potential Borrowers?

I have never heard of having to write a letter to the mortgage company explaining why a person needed a home loan and certain family circumstances associated with this loan. But that is the story coming from the New York Times as a Linda Falcao and her husband were asked to write a motivation letter on why they were making ... Read More »

Freddie Mac’s and Fannie Mae’s Relationship With Countrywide Raises Eyes

One of the big questions that has been asked in the aftermath of the housing meltdown has always been, how did things get so out of control? New information coming out of Washington shows that Fannie Mae was aggressively pushing Countrywide to sell it more loans, no matter the quality. Yes, you heard me right. The “quasi” government agency developed ... Read More »

Cash In Refinancing May Be A Smart Move

If you are underwater on your present mortgage you probably think refinancing is insane. But with the low interest rates available for homeowners with good credit it may make sense. What is Cash In Refinancing? Cash in Refinancing is the cousin of cash out refinancing that was all the rage in the early part of the century. With cash out ... Read More »

Mortgage Default Notices Down 43 Percent in California

Some good news for the California real estate market came out, mortgage default notices for the 2nd quarter of 2010 are down 43.8 percent. That is great news as the pressure of foreclosures on the housing market has been weighing down the California real estate market. Default notices, the first stage of the foreclosure process initiated by banks on troubled homeowners, plummeted ... Read More »