Todays Mortgage News 2/28
To tell us how the economy is doing, should we really look at the stock market? Probably not, as many experts believe that prices are more impacted by psychology than by fundamental items such as earnings — in spite of what reporters say. So although the markets have been rallying, and the majority of company’s earnings reports beating expectations, they are still paying a price. Companies are beating estimates due to cost cutting measures instead of growing revenue. In fact, of the companies recently reporting earnings, almost 75% reported year-over-year declines in revenue which does not bode well for economic fundamentals such as employment and ultimately for consumer spending.
Have you ever heard of Bayview Mortgage Capital? Me neither, until I read a report saying that they are a “newly formed” mortgage company, with their parent (Bayview, out of Florida) being owned by the Blackstone Group, and that they filed for a $500 million IPO (initial public offering). Per the report, they will be using the money to possibly qualify as a REIT and/or to use the money to buy distressed real estate loans from banks and other lenders and investors. “According to a filing with the U.S. Securities and Exchange Commission, the new company plans to use the real estate investment trust (REIT) tax structure…The company plans to buy and manage residential and commercial mortgage loans, mortgage-backed securities, real estate-related securities, real estate, and various other forms of real estate investment it believes are undervalued.”
WSFS Financial, out of Delaware, is backing out of its joint venture in the reverse mortgage field. Early last year WSFS acquired a majority interest in 1st Reverse Financial Services, but in their press release believe that it is unlikely that they will make a profit, and are therefore withdrawing from the venture. On the other hand, Security One Bank and Texas Capital Bank have agreed to double the size of its existing warehousing facility for reverse mortgages. In fact, according to the statement, Security One Lending has doubled its business since early March after it acquired OMNI Reverse Mortgage.
What is Flagstar’s current stance on the “government-offered, investor-disinterested” $8,000 tax credit for first time home buyers? (ARRA provides a tax credit of up to $8000.00 to first-time homebuyers who purchase a home on or before November 30, 2009. Government entities and FHA-approved non-profit agencies that are considered instrumentalities of government may provide tax credit advances with a second lien. The tax credit advance may be used to make the down payment and pay closing costs, discount points and pre-paid expenses.) Flagstar will allow tax credit advances with second liens from eligible governmental agencies and instrumentalities of government as long as the organization is also on Flagstar’s list of eligible community second programs.” Check out this website to make certain a non-profit agency is both FHA-approved and an instrumentality of government, refer to the appropriate homeownership center’s list of approved non-profit agencies.
Freddie Mac sent out a bulletin “providing detailed requirements for recently previewed and new changes for Relief Refinance Mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent, including expanding the reduced term incentive to cover a broader range of shorter term mortgages, expanding sale options for Relief Refinance Mortgages — Same Servicer with LTV ratios less than or equal to 105 percent to provide added flexibility for Seller/Servicers that traditionally sell mortgages through our servicing-released sales process, and expanding the Number of Units delivery fee grid and adding new delivery fee rates for eligible mortgages secured by 3- to 4-unit properties to reflect the higher LTV ratios permitted for Relief Refinance Mortgages.” Any originator interested in funding these loans had best refer to Freddie’s updated guidelines for accurate delivery instructions, since one wouldn’t want to make a mistake with a 125% LTV loan!
U. S. Bank’s Wholesale Division clarified the determination of the LTV to be used to calculate the monthly MIP for FHA Streamline Refinance transactions without appraisals. Specifically, the LTV for “FHA Streamline Refinance transactions, without an appraisal, must be calculated by dividing the new base loan amount (before adding the UFMIP) by the original property value. The Refinance Authorization, provided by the FHA Connection, provides the original property value to be used for calculating the LTV.” And “To ensure correct TIL disclosure, the LTV for FHA Streamline Refinance transactions, without an appraisal, must be calculated using the original property value and original mortgage amount from the previous FHA transaction.”
Important Information Regarding the MDIA (Mortgage Disclosure Improvement Act)
Effective Thursday, July 30, 2009, (for all applications received by Ascent Home Loans) some of the provisions in the final rule for revisions to the Truth-in-Lending Act (TILA) become effective. The specific provisions effective by this new rule implement the Mortgage Disclosure Improvement Act (MDIA). I have attached an announcement from Franklin American which covers the entire Act.
More Mortgage Stuff:
To tell us how the economy is doing, should we really look at the stock market? Probably not, as many experts believe that prices are more impacted by psychology than by fundamental items such as earnings — in spite of what reporters say. So although the markets have been rallying, and the majority of company’s earnings reports beating expectations, they are still paying a price. Companies are be…
When I was growing up, people didn’t have health clubs, thigh master, or Richard Simmons. We had Jack LaLanne. Everyone my age will be pleased to know that Jack (born in 1914) is still alive and well, living on the Central Coast in California. Born in San Francisco, his fitness show lasted 34 years on TV, and believes that “if man made it, don’t eat it” and “if it tastes good, spit it out”. Most o…
When I was growing up, people didn’t have health clubs, thigh master, or Richard Simmons. We had Jack LaLanne. Everyone my age will be pleased to know that Jack (born in 1914) is still alive and well, living on the Central Coast in California. Born in San Francisco, his fitness show lasted 34 years on TV, and believes that “if man made it, don’t eat it” and “if it tastes good, spit it out”. Most o…
Kraft takes $16.3B offer to Cadbury shareholders Kraft Foods Inc. took its $16.3 billion hostile takeover offer for Cadbury PLC straight to shareholders of the British candy company on Friday. The deal is nearly unchanged from an earlier offer that … Go to Source…
Can you refinance your home in today’s economy? Are there lenders out there that will work with you to try and better your financial position? Where do you start and what should you look for? The first thing that you should do is review and work on any issues with your credit history report. By getting that report correct and accurate then you can start to find lenders that can assist you in refin…
Can you refinance your home in today’s economy? Are there lenders out there that will work with you to try and better your financial position? Where do you start and what should you look for? The first thing that you should do is review and work on any issues with your credit history report. By getting that report correct and accurate then you can start to find lenders that can assist you in refin…
Bank of America Corp. (NYSE: BAC) said Monday it has provided mortgage relief through loan modifications for more than 600,000 homeowners since January 2008, according to Associated Press. Free Hot Penny Stocks, an online financial publication … Go to Source…
DALLAS, July 16, 2010 (GLOBE NEWSWIRE) — MicroStockProfit.com announces an investment report featuring Federal Home Loan Mortgage Corp. (OTCBB:FMCC). The report includes financial, comparative and investment analyses … Go to Source…
CHARLOTTE, N.C. — Four Democratic lawmakers are raising questions about Bank of America’s settlement with the government over soured mortgage-backed securities, asking whether the government got the best deal for taxpayers. In a letter to the agency … Go to Source…
Ever since Fannie Mae and Freddie Mac were taken over by the government in 2008, questions have swirled over who was responsible for their collapse. Friday, the Securities and Exchange Commission weighed in, filing fraud charges against former … Go to Source…
Posted in Refinance