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Jumbo Mortgages

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March 7, 2008 | From Reuters
The federal agency that regulates Fannie Mae and Freddie Mac temporarily raised the cap on the size of mortgages the government-sponsored financial giants can buy or guarantee in 71 housing markets, including nearly all of Southern California. Under a newly enacted economic stimulus package, the companies will be permitted to finance loans as large as $729,750, up from $417,000, in an effort to stabilize the housing finance sector.
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BUSINESS
December 7, 2013 | By E. Scott Reckard
The Federal Housing Administration is reducing the maximum size of the mortgages it will back, a step already taken by housing finance giants Fannie Mae and Freddie Mac. As of Jan. 1, the limits for FHA-insured loans in the nation's most expensive areas will be $625,500 for a single-unit dwelling, down from $729,500, except for certain parts of Hawaii, where the caps will be $657,800 to $721,050. The FHA historically provided insurance on smaller loans so first-time borrowers and people with modest incomes could get mortgages.
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BUSINESS
December 7, 2013 | By E. Scott Reckard
The Federal Housing Administration is reducing the maximum size of the mortgages it will back, a step already taken by housing finance giants Fannie Mae and Freddie Mac. As of Jan. 1, the limits for FHA-insured loans in the nation's most expensive areas will be $625,500 for a single-unit dwelling, down from $729,500, except for certain parts of Hawaii, where the caps will be $657,800 to $721,050. The FHA historically provided insurance on smaller loans so first-time borrowers and people with modest incomes could get mortgages.
BUSINESS
September 9, 2013 | By E. Scott Reckard
Regulators plan to lower the maximum size of mortgages that can be backed by Freddie Mac and Fannie Mae, which is now $417,000 in much of the country and $625,500 in expensive areas such as San Francisco, Los Angeles and Orange County. The Federal Housing Finance Agency said the change would probably take effect at the end of the year.  “FHFA has been analyzing approaches for reducing Fannie Mae and Freddie Mac loan limits across the country, and any such change would be announced with adequate advance notice for implementation on Jan. 1," the agency said in a statement Monday.
BUSINESS
August 6, 2013 | By E. Scott Reckard
In twin securities-fraud lawsuits against Bank of America Corp., the federal government is accusing the nation's second-largest lender of lying to investors about supposedly prime loans that more closely resembled subprime "liar loans. " The civil suits, filed Tuesday by the Justice Department and Securities and Exchange Commission, focus on $850 million in mortgage-backed securities that BofA issued in 2008. The mortgage bonds included so-called Paper Saver loans that required little documentation of a borrower's income or ability to pay. The suits are the latest in a long string of government and private mortgage-related civil actions targeting banks.
BUSINESS
February 11, 2011 | By E. Scott Reckard, Los Angeles Times
The average rate on a 30-year mortgage zoomed past 5% this week, reaching the highest level in nine months. Home-loan rates have been surging since November, tracking yields on Treasury bonds, as the economy has shown increasing signs of strength. This week, lenders have been offering 30-year fixed-rate home loans at an average of 5.05% to low-risk borrowers willing to pay an upfront fee equal to 0.7% of the loan balance, Freddie Mac said Thursday. The rate was up from a record low 4.17% in November ?
BUSINESS
December 4, 2012 | By E. Scott Reckard, Los Angeles Times
Sales of government-backed mortgage securities rose in November to the highest level in more than three years, stoked by a refinance boom and a rush by banks to avoid a fee increase from Fannie Mae and Freddie Mac. Nearly $176 billion in bonds backed by fixed-rate home loans were issued in November, up from $132 billion in October and the most since $229 billion in June 2009, MortgageDaily.com reported Monday, citing the data firm eMBS Inc. ...
BUSINESS
September 9, 2013 | By E. Scott Reckard
Regulators plan to lower the maximum size of mortgages that can be backed by Freddie Mac and Fannie Mae, which is now $417,000 in much of the country and $625,500 in expensive areas such as San Francisco, Los Angeles and Orange County. The Federal Housing Finance Agency said the change would probably take effect at the end of the year.  “FHFA has been analyzing approaches for reducing Fannie Mae and Freddie Mac loan limits across the country, and any such change would be announced with adequate advance notice for implementation on Jan. 1," the agency said in a statement Monday.
BUSINESS
September 12, 2012 | By E. Scott Reckard
Luther Burbank Savings has agreed to spend $2 million to settle a federal government lawsuit accusing the real estate lender of practices that resulted in too few home loans for African American and Latino borrowers from 2006 to 2010. The Santa Rosa-based thrift , with $3.6 billion in assets, did not admit wrongdoing. It lends mainly to owners of apartments, many of them in minority neighborhoods -- a business the government did not challenge. The allegations instead related to a $400,000 minimum loan amount Luther Burbank had set for a smaller business line that issued jumbo mortgages through independent brokers to low-risk borrowers.
BUSINESS
June 12, 2008 | Walter Hamilton, Times Staff Writer
When the federal government enacted rules in February to help borrowers get big mortgages, Rick Garcia hoped he'd finally be able to refinance his West Hills home. The 35-year-old veterinarian started looking for a new mortgage six months ago but says he hasn't been able to find an affordable one. "We're in June, and I still haven't done it," Garcia said. "How long do you wait?" At least a while longer, apparently.
BUSINESS
August 6, 2013 | By E. Scott Reckard
In twin securities-fraud lawsuits against Bank of America Corp., the federal government is accusing the nation's second-largest lender of lying to investors about supposedly prime loans that more closely resembled subprime "liar loans. " The civil suits, filed Tuesday by the Justice Department and Securities and Exchange Commission, focus on $850 million in mortgage-backed securities that BofA issued in 2008. The mortgage bonds included so-called Paper Saver loans that required little documentation of a borrower's income or ability to pay. The suits are the latest in a long string of government and private mortgage-related civil actions targeting banks.
BUSINESS
December 4, 2012 | By E. Scott Reckard, Los Angeles Times
Sales of government-backed mortgage securities rose in November to the highest level in more than three years, stoked by a refinance boom and a rush by banks to avoid a fee increase from Fannie Mae and Freddie Mac. Nearly $176 billion in bonds backed by fixed-rate home loans were issued in November, up from $132 billion in October and the most since $229 billion in June 2009, MortgageDaily.com reported Monday, citing the data firm eMBS Inc. ...
BUSINESS
September 12, 2012 | By E. Scott Reckard
Luther Burbank Savings has agreed to spend $2 million to settle a federal government lawsuit accusing the real estate lender of practices that resulted in too few home loans for African American and Latino borrowers from 2006 to 2010. The Santa Rosa-based thrift , with $3.6 billion in assets, did not admit wrongdoing. It lends mainly to owners of apartments, many of them in minority neighborhoods -- a business the government did not challenge. The allegations instead related to a $400,000 minimum loan amount Luther Burbank had set for a smaller business line that issued jumbo mortgages through independent brokers to low-risk borrowers.
BUSINESS
November 13, 2011 | By Kenneth R. Harney
Do you have a big mortgage and good credit scores but not much equity — maybe you're even underwater? Do you see little chance that your home's market value will improve a lot during the coming three to seven years? If you answered yes to both questions — and thousands of homeowners across the country could do so — new research suggests that you are in a category that lenders need to worry about most: prime jumbo borrowers who once were thought to be among the safest bets, but who now are the most likely to opt for a strategic default and walk away from their homes.
BUSINESS
February 11, 2011 | By E. Scott Reckard, Los Angeles Times
The average rate on a 30-year mortgage zoomed past 5% this week, reaching the highest level in nine months. Home-loan rates have been surging since November, tracking yields on Treasury bonds, as the economy has shown increasing signs of strength. This week, lenders have been offering 30-year fixed-rate home loans at an average of 5.05% to low-risk borrowers willing to pay an upfront fee equal to 0.7% of the loan balance, Freddie Mac said Thursday. The rate was up from a record low 4.17% in November ?
BUSINESS
February 24, 2010 | By E. Scott Reckard
Phil Kelly had 18 more months to go before the fixed rate on his $2.5-million mortgage became adjustable. But when Kelly, a former computer executive living in Rancho Santa Fe, learned he could knock his interest rate down by a full percentage point by refinancing, he went for it. "It's always tough to pick the exact bottom or top of anything," Kelly said. "But I think this rate is about as low as you're going to get." Rates on jumbo mortgages -- loans of more than $729,750 in counties with the highest-cost housing -- shot up during the financial crisis as lenders and loan investors shunned anything tainted with even a whiff of higher risk.
BUSINESS
February 24, 2010 | By E. Scott Reckard
Phil Kelly had 18 more months to go before the fixed rate on his $2.5-million mortgage became adjustable. But when Kelly, a former computer executive living in Rancho Santa Fe, learned he could knock his interest rate down by a full percentage point by refinancing, he went for it. "It's always tough to pick the exact bottom or top of anything," Kelly said. "But I think this rate is about as low as you're going to get." Rates on jumbo mortgages -- loans of more than $729,750 in counties with the highest-cost housing -- shot up during the financial crisis as lenders and loan investors shunned anything tainted with even a whiff of higher risk.
BUSINESS
November 13, 2011 | By Kenneth R. Harney
Do you have a big mortgage and good credit scores but not much equity — maybe you're even underwater? Do you see little chance that your home's market value will improve a lot during the coming three to seven years? If you answered yes to both questions — and thousands of homeowners across the country could do so — new research suggests that you are in a category that lenders need to worry about most: prime jumbo borrowers who once were thought to be among the safest bets, but who now are the most likely to opt for a strategic default and walk away from their homes.
BUSINESS
May 30, 2009 | Dina ElBoghdady
Looking for a mortgage that exceeds $729,750? Not long ago, you would have been charged about 8% interest on a loan that large -- if you could find a lender willing to grant you one. Now, rates on these "jumbo" loans are much more affordable, having settled in the low 6% range, on average, for the last few weeks. But taking advantage of the lower rates remains tough.
BUSINESS
June 12, 2008 | Walter Hamilton, Times Staff Writer
When the federal government enacted rules in February to help borrowers get big mortgages, Rick Garcia hoped he'd finally be able to refinance his West Hills home. The 35-year-old veterinarian started looking for a new mortgage six months ago but says he hasn't been able to find an affordable one. "We're in June, and I still haven't done it," Garcia said. "How long do you wait?" At least a while longer, apparently.
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