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REAL ESTATE
May 31, 1987 | DAVID W. MYERS
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.
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BUSINESS
September 6, 2008 | E. Scott Reckard, Times Staff Writer
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.
BUSINESS
May 12, 2010 | By E. Scott Reckard, Los Angeles Times
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.
BUSINESS
June 23, 2010 | By Gail MarksJarvis
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.
BUSINESS
May 16, 2010 | By Kenneth R. Harney
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.
BUSINESS
December 5, 2009 | By Renae Merle
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.
BUSINESS
November 26, 2009 | By Dina ElBoghdady
Fannie Mae, the giant mortgage finance company that helps shape lending guidelines, plans next month to raise minimum credit score requirements and limit the amount of overall debt that borrowers can carry relative to their incomes. The changes are the latest in a series of crackdowns by the mortgage industry and could surprise some prospective home buyers. The industry is tightening loose lending standards that led to the mortgage meltdown and the subsequent economic crisis.
BUSINESS
October 13, 2013 | By Lew Sichelman
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.
BUSINESS
November 10, 2013 | By Kenneth R. Harney
WASHINGTON - Could the real estate market be heading for a new financial storm? Maybe. Some mortgage and credit experts worry that billions of dollars of home equity credit lines that were extended a decade ago during the housing boom could be heading for big trouble soon, creating a new wave of defaults for banks and homeowners. That's because these credit lines, which are second mortgages with floating rates and flexible withdrawal terms, carry mandatory "resets" requiring borrowers to begin paying both principal and interest on their balances after 10 years.
BUSINESS
March 28, 2013 | By E. Scott Reckard, Los Angeles Times
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.
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