Archive for July, 2008
U.S. Senate Passes Housing Stimulus Bill
Related Posts: Credit & Finance
hiThe U.S. Senate passed a bipartisan mortgage rescue bill on Friday that allows the Federal Housing Administration to refinance troubled mortgages – even those that are under water – as long as banks agree to take a loss.
The program would allow the FHA to help as many as 400,000 homeowners.
Now the bill goes to a bipartisan committee in the House for revision. Rep. Barney Frank (D-Mass.), the Financial Services Committee chairman and a primary supporter of the bill, says the few but significant revisions House leaders seek could be made in as little as one week.
The measure includes higher limits for FHA loans and creates a new regulator for Fannie Mae and Freddie Mac. It also would provide $14.5 billion in housing tax breaks, including a credit of up to $8,000 for first-time home buyers.
This is great news for all home buyers anxious to move forward with their housing goals and objectives who have had finacing as one of their concerns..
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FHA extends financing for immediate purchase of foreclosed homes !
Related Posts: Credit & Finance, Real Estate News
hiWASHINGTON – June 16, 2008 – In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.
For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.
“A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery,” said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. “The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country.”
FHA’s new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It’s reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property flipping, a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA’s new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.
© 2008 FLORIDA ASSOCIATION OF REALTORS
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Housing Inventories Fall in Major Cities
Related Posts: Real Estate News
hiThe supply of homes dipped 2.4 percent in a year-over-year change in 12 of 18 cities where ZipRealty Inc. does business, the brokerage says.
The data covers listings of single-family homes, condos, and town houses for sale on local multiple-listing services. This is the first decline since the firm began keeping tabs in mid-2006.
The data doesn’t include New York City, but Miller Samuel Inc., an appraisal firm, says the city’s inventory was up 31 percent compared to June of 2007 because Wall Street firms have cut jobs.
The following is a list of cities and their percentage of inventory decline:
- Boston: -10%
- Dallas: -10.6%
- Houston: -2.4%
- Las Vegas: -18.5%
- Los Angeles: -7.4%
- Minneapolis: -4.8%
- Orange County, Calif.: -15%
- Orlando: -3.1%
- Phoenix: -2.6%
- Sacramento: -22.4%
- San Diego: -6.7%
- Tampa, Fla.: -7%
Source: The Wall Street Journal, James R. Hagerty (07/10/08)
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5 Factors That Decide Your Credit Score
Related Posts: Credit & Finance
hiCredit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage.
The following factors affect your score: 1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, visit www.myfico.com.
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Rates for 30-year mortgages post first decline in five weeks * Source: USA Today
Related Posts: Credit & Finance
hiWASHINGTON — Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline this week as signals from the Federal Reserve eased worries about imminent rate increases. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.35% this week. That was down from 6.45% last week, which had been the highest level since last September. The decline pushed the rate to its lowest level in three weeks but it remained above 6%, where it has been since the week of May 29. Frank Nothaft, chief economist at Freddie Mac, said financial markets were relieved with the statement from the Federal Reserve last week that eased concerns about imminent rate hikes. At its regular meeting to set interest rates on June 24-25, the central bank brought to an end an aggressive rate-cutting campaign and said that the risks of inflation had increased. However, nothing in the Fed’s policy statement hinted that the central bank would start raising rates soon. Many private economists believe the Fed will leave the key short-term rates it controls unchanged for the rest of this year, not wanting to boost rates while the economy remains so weak. Nothaft noted that the federal funds futures market, where investors make bets on when the Fed will make rate changes, still is showing rate increases starting later this year, although these expectations declined a bit following the Fed’s statement from last week. Other types of mortgages showed decreases this week as well, according to the Freddie Mac survey. Rates on 15-year fixed-rate mortgages dropped to 5.92%, down from 6.04% last week. The five-year adjustable-rate mortgage fell to 5.78%, down from 5.99% last week. The rate on a one-year adjustable-rate mortgage declined to 5.17%, compared to 5.27% last week. The housing market is facing numerous headwinds at present. Slumping prices are keeping potential buyers on the fence while rising mortgage defaults are dumping more homes on an already glutted market. The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point. A year ago, rates on 30-year mortgages stood at 6.63%, 15-year mortgage rates averaged 6.30%, five-year adjustable-rate mortgages were at 6.29% and one-year adjustable-rate mortgages averaged 5.71%.
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