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.
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.
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.
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.
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 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.
January 27, 2010 |
Agreeing to settle 29 class-action lawsuits alleging predatory lending, the Ameriquest group of subprime lenders has pledged $22 million to repay aggrieved borrowers and their lawyers -- a fraction of its payments in previous suits before it shut down as the mortgage meltdown set in. The agreement potentially affects 712,000 borrowers from what once was the nation's largest subprime lender, based in Orange County. Many of the loans were from Argent Mortgage Co., an arm that funded borrowers through mortgage brokers.
March 28, 2013 |
In a push to simplify mortgage modifications, federal regulators announced a streamlined process that doesn't require borrowers to prove a hardship. "This new option gives delinquent borrowers another path to avoid foreclosure," Edward J. DeMarco, acting director of the Federal Housing Finance Agency, said in a statement announcing the modifications Wednesday. The new modifications, however, would not include reducing the loan balance, a move promoted by housing advocates and others but resisted by DeMarco, who says it would end up costing taxpayers money and would encourage defaults.
December 5, 2009 |
About 25% of borrowers helped under the administration's massive foreclosure prevention plan have already fallen behind on their new mortgage payments, according to government data that raise new questions about the program's effectiveness. The delinquency figures reflect the latest troubles of the program, known as Making Home Affordable. Treasury Department officials this week announced a campaign to put new pressure on lenders to do more to move struggling homeowners into loans with easier terms.
June 20, 2013 |
Last year's $25-billion national mortgage settlement required five giant banks to assign a single employee to each borrower seeking a loan modification - a personal guide who could cut through the bureaucracy. The so-called single-point-of-contact rule sought to address the biggest complaint of borrowers trying to save their homes: Getting bounced around among random employees with conflicting answers. Great idea. Too bad it hasn't worked much. According to a report this week from the settlement's official monitor, Joseph A. Smith Jr., a third of the 60,000 serious complaints about the banks' handling of distressed loans from last October through March involved single points of contact.