Mortgage and Refinance News

The News Review:

- Questions, Answers About Housing Crisis
- Fannie Working on Mortgage Plan
- How a good mortgage broker behaves
- Details of Texas Sect Activities; China Olympic Protests Examined;…
- Selling Your Home; Hispanic Home Buyers; Avoiding Foreclosure;…

Questions, Answers About Housing Crisis
FOXNews – Apr 12, 2008
What specifically is the administration doing? A. It expanded a Federal Housing Administration program so more homeowners who are having trouble making mortgage payments can refinance into more affordable government-insured loans. Some 2 million people are facing foreclosure this year. The administration also authorized the mortgage-finance companies Fannie Mae and Freddie Mac to buy more home loans and brokered help for homeowners through a private-sector mortgage industry group. Some lenders have agreed to offer a five-year rate freeze for people who have not missed payments. Also, some have offered a 30-day foreclosure pause for those behind in their payments.

Fannie Working on Mortgage Plan
Seattle Times – Apr 12, 2008
The government requires them to keep a certain amount on reserve to guard against risk. Under Fannie Mae’s new plan, the firms that collect payments for its mortgages will allow in more cases involving delinquent borrowers so-called “short sales” of homes for less than the amount owed on the loan. Fannie, as the mortgage guarantor, takes a hit on such sales, but can avoid the potentially larger loss from a home going into foreclosure. “Fannie Mae’s first priority is to work with our servicers to keep people in their homes,” Jason Allnutt, Fannie Mae’s vice president for credit loss management, said in a prepared statement. “If we exhaust our workout options, there are several ways we can help distressed homeowners avoid foreclosure, including negotiating a short sale. Washington-based Fannie Mae’s plan was disclosed this week by one of its executives at a real estate industry conference. It was first reported Wednesday by American Banker, a trade publication… “It is a balancing act. He also suggested it may be difficult to distinguish between deserving borrowers who are in over their heads with a mortgage and others just trying to take advantage of the system. The federal Office of Thrift Supervision, a division of the Treasury Department, has also drafted a plan to help such upside-down borrowers, allowing them to refinance into government-backed loans covering the home’s current value. To make up the difference, lenders would receive a special certificate equivalent to the remainder of the balance owed that they could redeem if the home were eventually sold at a higher price. –AP Business Writer Alan Zibel contributed to this report. Copyright © 2008 The Seattle Times Company More Business & Technology headlines.

How a good mortgage broker behaves
Sarasota Herald-Tribune – Apr 12, 2008
Good brokers are straight with their clients: Here are some broker statements that indicate they are not being straight. If you hear any of these, head for the door:– “I have a 1. 5 percent mortgage for five years. “– “Don’t worry about the rate increasing in two years; I will be there to refinance you into a lower rate before that happens. “– “Don’t worry about my fee; it’s being paid by the lender. “The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania.
Related: Linda Honold: Tax day good time to discuss investing in America’s…

Details of Texas Sect Activities; China Olympic Protests Examined;…
CNN International – Apr 12, 2008
As they continue their fight for the democratic presidential nomination, plus this. (BEGIN VIDEO CLIP) UNIDENTIFIED MALE: This bill is a major positive step in the right direction. (END OF VIDEO CLIP) HOLMES: Tackling the mortgage crisis. A journey of a thousand miles begins with a single step, then get ready for a long journey. NGUYEN: Plus, they are still waiting in the wings. More canceled flights this morning? It means more stranded travelers struggling to get home. (COMMERCIAL BREAK) HOLMES: Bitter is the word of the day on the democratic presidential campaign trail… Even before the senate voted, the White House attacked the plan, saying it’s tilted more towards lenders than homeowners. DANA PERINO, WHITE HOUSE PRESS SECRETARY: The bill would likely do more harm than good by bailing out lenders and speculators and passing on costs to other Americans who play by the rules and honor their mortgage debt obligations. BOLDUAN: Instead the administration announced its own plan, it would expand an existing government program to help more low and middle income families refinance their loans. But democrats criticize that move as far too narrow. NANCY PELOSI, (D) HOUSE SPEAKER: In terms of number of people affected, the president’s initiative most recent one affects 100,000 people when it should be affecting 10 to 15 times that many. BOLDUAN: House democrats are pushing yet another proposal — $300 billion to help up to 2 million cash-strapped homeowners lower their mortgage payments and tax breaks for first-time homebuyers.

Selling Your Home; Hispanic Home Buyers; Avoiding Foreclosure;…
CNN International – Apr 12, 2008
Representative Charlie Rangle introduced a bill on Tuesday that addresses parts of the Senate bill Democrats found favorable and does away with the sections they didn’t like, namely tax benefits for the industry. Representative Barney Frank has a plan on the table, as well. It would refinance at-risk borrowers into affordable mortgages. The price tag is big, $300 billion and works: The original lender writes down the value of individual mortgage loans to 85 percent of the current market value of the house. An FHA lender, that’s a lender affiliated with the government, refinances the loan and the borrower gets a new mortgage at 90 percent of the appraised right now value. The other 10 percent goes to the borrower as equity. Now, most notable here, lenders choose who gets help, not the government or borrows themselves… Is it working? Then, your next loan could be just a click away, but it won’t come from a bank. And how one woman saved her home by getting a reverse mortgage. (COMMERCIAL BREAK) WILLIS: The Fair Housing Act was supposed to stop home sellers and landlords from discriminating against homeowners. Everyone was suppose to have an equal house chance at housing, but 40 years after the bill was signed, I learned for many people it’s simply not working. (BEGIN VIDEOTAPE) (voice over): In the spring of 1968, the United States was a nation divided by race. (on camera): What was going on in the country? What was the tone? REV JESSE JACKSON, CIVIL RIGHTS ACTIVIST: Segregated schools, by race.
Related: Linda Honold: Tax day good time to discuss investing in America’s…

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