Real Estate Directory

Interest Rates Low

Interest on 30-year fixed loans sank to 5.96 percent from 6.10 percent last week, landing at the lowest point seen since September 2005.

California Mortgage Freeze

California Gov. Arnold Schwarzenegger announced a deal Tuesday with Countrywide Financial Corp., GMAC Mortgage, Litton Loan Servicing and HomeEq Servicing to freeze adjustable interest rates for some of the state's highest-ri k borrowers. This in an effort to stave off what is believed to be an impending glut of repossessed homes all over California.

This deal covers over 25% of Cali's subprime mortgage loans.  "To lose your home, as probably everyone knows, through a foreclosure is an emotional crash and it sometimes takes years to recuperate from," Schwarzenegger said.

H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007

From Nations Bulding News:

Ongoing efforts in the housing finance industry to keep home owners from losing their homes, limit the amount of inventory returning to the market and help check further housing price declines are being hampered by federal tax law that legislators on Capitol Hill are attempting to change, according to NAHB economist Robert Dietz.

“The Internal Revenue Service treats all debt amounts that are reduced, forgiven or eliminated as part of a mortgage restructuring or foreclosure as taxable income,” Dietz writes in a special study for NAHB Housing Economics.

“For home owners struggling to make their regular mortgage payments, this phantom income taxation creates a disincentive against restructuring an existing mortgage to ensure continued payment and avoid foreclosure,” he says. “To prevent this tax from applying to home owners and lenders seeking to restructure existing mortgages, Congress must modify the nation’s tax code.”

H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007, which would eliminate the tax consequences associated with debt forgiveness, has been approved by the House of Representatives.

"Let's Make it Harder For Your To Get A Loan"

Cramer says Cuomo is making it harder for you to get a loan

Cramer says he will shut down the mortgage market. "Listen Washington Mutual stop lending!"

AG  Cuomo announced November 7 he was expanding his probe into the mortgage industry by sending subpoenas to Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) and urging them to conduct a total review of all Washington Mutual Inc. (NYSE:WM) appraisals and mortgages they purchased.

     “Why doesn’t he just destroy any opportunity we have to move the $1.25 trillion in houses that are just sitting on the market right now?...  Last week, Cuomo filed a suit against First American Corp. (NYSE:FAF) and its “eAppraiseIT” unit for “allegedly colluding with Washington Mutual to use a list of preferred appraisers to artificially inflate mortgage appraisals.”

Mortgage Aps Up: Bubble Over?

Mortgage Applications Up, Third Straight Week

U.S. mortgage applications increased for a third straight week, driven to a two-month high by demand for both purchases and refinancings, an industry trade group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted applications index rose 3.6%. Average 30-year fixed-rate mortgage rates, excluding fees, fell 0.04 percentage point to 6.10 percent, the lowest since 6.04 percent in the March 23 week. Best Mortgages.

SubPrime

Subprimes and Foreclosure

Freddie Mac and Fannie Mae plan to help homeowners with subprime loans avoid foreclosure.

In prepared congressional testimony, Fannie Mae Chief Executive Daniel Mudd is expected to tell the House Financial Services Committee today that the housing Government-Sponsored Enterprise is expanding its products to allow subprime borrowers to refinance out of certain adjustable-rate mortgages that carry low "teaser" rates for the first two or three years and then reset to much higher monthly payments.

Mortgage Update

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While Fannie and Freddie do not want to raise the conforming loan limit above $417,000, It seems Wells Fargo is liking the HARD MONEY.

In fact, Wells Fargo is the nation largest sub-prime lender above Ameriquest and New Century Funding (both of Orange county California).

It appears the institution does not plan to churn and burn, but actually educate. In fact, it has announced plans to teach financial education to these less than credit worthy borrowers.

The strategy will allow Wells to cross sell these borrowers into other financial products that Wells Fargo recommends.