March 7, 1999
I could not agree more with Kenneth R. Harney's Feb. 14 Your Mortgage column headlined "Clinton Proposal Looks Like a Tax on Home Loans." Now instead of a tax, it will be called a "mortgage transaction fee." This will be buried in myriad paperwork when securing a refinance or mortgage loan and will undoubtedly be unnoticed by a majority of borrowers. Just another liberal boondoggle to keep the tax structure going on ad nauseam. It is time to have another Boston Tea Party. BOB HOFFMAN Newport Beach
November 10, 2011 |
The college class of 2010 now has a dubious distinction. Its graduates who had student loans owed a record-high average of $25,250, up 5.2% from the previous year, according to a new report from the Project on Student Debt, a nonprofit advocacy group. Last month, President Obama announced a plan to make it a little easier for 1.6 million college graduates to repay their government loans, recognizing the drag that $1 trillion in student debt is placing on the economy. In the early 1990s, most college students did not need to take out loans.
May 31, 1987 |
State and federal lawmakers are considering five proposals that consumer advocates say would put mortgage shoppers on more even footing with lenders. In Washington, Rep. Dean A. Gallo (R-N.J.) is expected to introduce a proposal later this week that would make it tougher for lenders to back out of an agreement to fund a low-interest loan after interest rates suddenly rise.
May 12, 2010 |
The U.S. Senate voted Wednesday to ban certain bonus payments to mortgage brokers and loan officers, cutting off what experts have called one of the key causes of the nation's mortgage meltdown. The little-known bonuses were paid for home loans that could be sold at higher prices because they carried higher interest rates and other more onerous terms than those for which the borrowers were qualified. Amending financial reform legislation as it makes its way through Congress, the Senate also voted to outlaw stated-income mortgages — loans made without using tax documents, pay stubs or bank records to verify that borrowers actually earn as much as they say they do. These so-called liar loans and the bonus payments are widely regarded as key factors leading to the subprime lending debacle that snowballed into the deep recession.
May 16, 2010 |
If you're thinking about applying for a home mortgage this year, here's some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing. The last-minute credit report will be designed to find out whether you've obtained — or even shopped for — new debt between the date of your loan application and the closing. If you've made applications for credit of any type — for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card — the closing could be put on hold pending additional research by the lender.
October 13, 2013 |
Anyone thinking of skating on mortgages owned by either Fannie Mae or Freddie Mac may want to think again. As a result of new government reports, the two companies say they are going to do a better job of going after so-called strategic defaulters. Fannie and Freddie can pursue judgments against borrowers who walk away from their loans even though they have the ability to make their payments. That's called a strategic default, and many borrowers are taking that step - typically throwing in the towel because their homes are no longer worth as much as they owe. But when their homes are sold at foreclosure and the proceeds are not enough to cover their outstanding loan balances, it creates a deficiency for which many defaulters either don't realize they are liable or don't care.
September 6, 2008 |
The decline of housing markets in California and Florida has led to record numbers of foreclosures and is causing even good borrowers to pay more for loans, according to analysis and statistics released Friday. To add to the bleak picture, the government Friday reported the eighth straight month of declining employment, increasing pressure on borrowers burdened by tumbling home prices and loans with rising interest rates. The U.S. jobless rate jumped in August to a nearly five-year high of 6.1%, with nonfarm payrolls down 84,000.
June 25, 2013 |
The student debt crisis is one of those issues that concentrates the minds of both parties in Congress. That's why there are at least half a dozen legislative proposals circulating in Washington to forestall a doubling of interest rates on many federal student loans scheduled to take effect July 1. But it doesn't explain why almost all those proposals ignore the one remedy to graduates' loan burdens that would make their squabbling over an interest-rate...
June 30, 2012 |
WASHINGTON - In a policy switch that could be important to thousands of applicants seeking low-down-payment home mortgages, the Federal Housing Administration has rescinded tough new credit restrictions that had been scheduled to take effect Sunday. The policy change would have affected borrowers who have one or more collections or disputed-bill accounts on their national credit bureau files in which the aggregate amounts were $1,000 or more. Some mortgage industry experts estimate that if the now-rescinded rules had gone into effect, as many as 1 in 3 FHA loan applicants would have had difficulty being approved.
June 23, 2010 |
For countless Americans struggling to make their mortgage payments, the problems have just begun. Although a loan modification or foreclosure might allow them to put their housing problems behind them, millions will be dogged for years by the aftermath — a credit score so tarnished by the housing debacle that lenders will avoid them. And if they are able to obtain loans, high interest rates are likely to strain their budgets. This is one remnant of the housing crisis that is sometimes ignored by economists, but the effects may well be a drag on the nation's consumption — and the economy as a whole — for a decade or more.