| Posted: Mon Jan 25th, 2010 04:34 pm |
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Bambi
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Volume I / Issue XIV
January
Governor Addresses Legislature
Arizona Governor Jan Brewer delivered her first State of the State Address to a joint session of the Arizona Legislature on Monday, January 11, and setting a tone for her administration indicated that the State is "open for business." In her 37-minute speech, the Governor reiterated her continuing focus on creating additional revenue for empty state coffers by continuing her call for an increase in Arizona's statewide sales tax, telling the audience and listeners on radio and internet that "We must raise some additional revenue." In recognition of the continuing severe economic recession plaguing the nation and Arizona, the Governor pledged an investment of $10 million for job training, the assembly of a team of state agency officials to target eliminating regulatory red tape and announced an upcoming business summit to identify opportunities for creating additional job growth across the state. The overall news from the state's Chief Executive remained bleak with the confirmation that Arizona continues to face a roughly $4.5 billion budget shortfall between this fiscal year and next.
The upcoming fall primary and general election ballots are serving as a background for officials and the issues they are currently facing. In Governor Brewer's legislative address, there were a number of references and admonitions meant for partisan posturing and in some cases specific candidates. Since the speech, State Treasurer Dean Martin has announced his candidacy in the Republican primary to challenge the incumbent Governor. Sitting front row at the address was Arizona Attorney General Terry Goddard who is positioning himself as the Democratic Party gubernatorial candidate. House Minority Leader David Lujan will be running for AG to succeed Goddard as the Democratic candidate for that office. All 90 Senate and House seats will be up for election and the 50th Arizona Legislature in 2011 will feature a number of new faces as many current Senate and House members decide to pack it up and go back to private life in their districts.
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| Posted: Mon Jan 25th, 2010 04:24 pm |
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Bambi
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Morning Scan
Monday, January 25, 2010
The news you need from the major dailies
By Allison Bisbey Colter, with contributions from Cheyenne Hopkins and Sara Lepro.
Receiving Wide Coverage ...
Doubling Down on Bernanke: The papers reported that the White House stepped up efforts to secure the Fed chief's nomination for a second term after losing some Senate votes last week. The Journal said "the political winds appear to be shifting" in Bernanke's favor as the White House escalated efforts to win the votes needed for his confirmation, but said, "despite a flurry of activity over the weekend, confirmation wasn't a certainty." Wall Street Journal, New York Times, Washington Post
An analysis piece in the Journal said, "No matter how it plays out, Ben Bernanke's bruising confirmation battle has damaged the Federal Reserve's clout and perceived independence." An editorial said, "Whether or not Mr. Bernanke is confirmed, the lesson we draw is that overly political central bankers will eventually be undone by politics."
Times columnist Paul Krugman wrote that he is in favor of Bernanke's reappointment, saying "rejecting him could make the Fed's policies worse, not better." Though his critics have a solid case, Krugman said, "any good alternative for the position would face a bruising fight in the Senate. And choosing a bad alternative would have truly dire consequences for the economy."
A Post editorial warned that threatening Bernanke's confirmation for no reason other than political panic and anger has turned the confirmation process into a test of the central bank's independence and risks spooking the markets.
Bonus Backlash: An article in the Journal said the move by big banks and securities firms to dole out more stock and less cash to employees could help counter political anger about Wall Street's pay culture. But shareholders likely will pay for it for years. An article in the Times about bonuses said it's likely that flashy spending "will be more the exception than the rule this year." That is because there is a "need to have cash on hand to cover basic expenses." And there is uncertainty over "how much of their bonuses they will actually get, and when they will get it." An article in the Post said banks' efforts to reduce compensation has done little to diminish anti-Wall Street rhetoric. A Post column questioned whether Wall Street bonuses are deserved.
In a securities filing, Morgan Stanley said CEO James P. Gorman received no cash bonus for 2009, but could still walk away with stock-based compensation worth nearly $9 million. The Times noted, "The announcement was released at the end of a week when anger nationwide appeared to be mounting again at Wall Street's resurgent profits and pay." Wall Street Journal, New York Times
Bank Limits: The papers devoted considerable ink to discussions of the pros and cons – mostly cons – of the Obama administration's proposal to limit the size and spread of the biggest banks. A Journal article said Washington's stepped-up efforts to regulate banks are less popular in corporate America than on Main Street. Another story said the proposal lent momentum to international efforts to regulate financial institutions. In "The Intelligent Investor," Jason Zweig questioned whether the proposal will lead to good laws. Another story suggested proposed restrictions on proprietary trading could backfire politically if banks avoid them by jettisoning subsidiaries with deposits.
The Times reported that policy makers are developing ways for investment banks to escape the limits – they would have the option of dropping their status as holding companies to keep their trading and other investment businesses. Another article said Obama's renewed push for financial reform and his backing of former Fed chairman Paul Volcker's ideas are "elevating the discourse on how best to rein in risky behavior at banks and protect beleaguered taxpayers from future bailouts of Wall Street." An editorial said the proposal was "unsatisfactory" as a response to the crisis, but that it gives financial reform "a rational starting point."
An analysis piece in the Post said financial reform could be stalled as differences remain and the administration adds to the reform. An editorial said that while the administration's Volcker Rule to limit the size and activities of financial institutions is light on detail, it has the potential to clarify the permissible risk profiles of institutions.
AIG Update: The papers obtained documents that the New York Fed provided to Congress ahead of this week's hearing on the Fed's role in AIG's bailout. The Times said the documents show that central banks officials were deeply divided over the structure of the bailout and its long-term implications. The Post's coverage focused on records of calls records it said show how intimately Timothy Geithner, then head of the New York Fed, was involved in AIG's every move. The Journal focused on an analysis put together for the New York Fed by a unit of BlackRock indicating that various banks had significant bargaining power with AIG on insurance contracts tied to troubled mortgage securities. Without receiving par for these securities, the parties had little incentive to cancel the contracts. BlackRock's analysis also suggested the mortgage securities AIG insured were worth more than what some banks had priced them at in the fall of 2008. Wall Street Journal, New York Times, Washington Post
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| Posted: Thu Jan 14th, 2010 04:31 pm |
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Bambi
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Foreclosing on the Wrong Home? It's not unheard of....... More from American Banker that was so interesting, I just had to share it with you.
Wrong Address
It might have sounded absurd a few years ago, but today, with the mortgage industry inundated with defaults, the notion is plausible: a lender foreclosing on the wrong home.
Alan Schroit claims that Bank of America Corp. mistakenly seized his Galveston, Texas, vacation residence. According to the lawsuit he filed this month in State District Court in Galveston, Schroit does not have a mortgage with B of A, or any lender for that matter; he owns the property free and clear.
He's suing the Charlotte company for an unspecified amount of damages that were sustained after the locks on his home were changed and the power was shut off, resulting in the spoiling of about 75 pounds of fish in his freezer.
Rick Simon, a spokesman for B of A, told The Daily News of Galveston County last week that "based on previous discussions with Mr. Schroit, we do not believe the case will show merit." (Bank of America offered no elaboration for American Banker by press time.)
Schroit suggests in his suit that cash or stock bonuses paid to B of A executives last year "may be an appropriate guide" for punitive damages the company should have to pay him.
Whatever the merits of his case, industry insiders say such mix-ups aren't unheard-of.
"Unfortunately it is something that happens often," said Sylvia Alayon, a vice president and the director of operations at Consumer Mortgage Audit Center, a due diligence and consulting firm in Fort Lauderdale, Fla. "That's just due to the sheer … volume of foreclosures that are occurring."
This past fall The Floyd County Times reported that Christopher Hamby of Wheelwright, Ky., had sued B of A, claiming the company wrongly repossessed his home. Like Schroit, Hamby said he did not have any relationship with B of A, mortgage or otherwise. Bank of America is the largest servicer of residential mortgages.
Eye on Foreclosures
Foreclosure filings jumped 14% in December from November, after four straight months of declines, according to data to be released today by RealtyTrac Inc.
Default notices, scheduled foreclosure auctions or bank repossessions were reported on 349,519 properties nationwide last month, a 15% increase from a year earlier.
For the year, foreclosure filings were reported on more than 2.8 million properties, a 21% increase from 2008 and a 120% increase from 2007, RealtyTrac said.
One in every 45 homes in the U.S. received at least one foreclosure notice last year, RealtyTrac said.
James J. Saccacio, the chief executive of the Irvine, Calif., company, said in a press release that the 2009 numbers would have been worse if there hadn't been legislative and industry-related delays in processing delinquent loans.
The substantial increase in foreclosures in December helped drive the number of 2009 filings to a record high, Saccacio said.
Foreclosures peaked in July, with more than 361,000 homes receiving a foreclosure notice. Saccacio said he expects foreclosures to remain high this year.
"In the long term a massive supply of delinquent loans continues to loom over the housing market, and many of those delinquencies will end up in the foreclosure process in 2010 and beyond as lenders gradually work their way through the backlog," he said.
Nevada had the nation's highest foreclosure rate for the third consecutive year, with more than 10% of Silver State housing units receiving at least one foreclosure notice in 2009.
Arizona had the second-highest rate, after foreclosures there spiked 40% in December, and Florida had the third-highest rate.
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| Posted: Wed Jan 13th, 2010 07:17 pm |
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Bambi
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Your always welcome pipe.
Last edited on Sat Jan 30th, 2010 04:46 am by Bambi
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| Posted: Tue Jan 12th, 2010 05:51 pm |
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pipeman
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Bambi, sorry to hear your deal fell through in MR. I know you were not only looking at the money aspect, you were also looking to help out people in a tough spot, as that is the type of woman you are. Hopefully you will accomplish your goal to be able to help these people.
Thanks for all the realestate updates, it is appreciated.
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| Posted: Tue Jan 12th, 2010 05:42 pm |
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Bambi
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Every .5% drop in mortgage rates brings out a relatively dramatic increase in home buyers.
If and when we see inflation edging upward, we can start to brace for materially elevated mortgage rates. However, inflation isn’t on the immediate radar as the Fed has no reason to slow down or curb our already slow economy with hike in the Fed Funds Rate. Once things pick up in the jobs market we can start to forecast a different scenario.
Michael McDermott
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| Posted: Tue Jan 12th, 2010 05:00 pm |
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Bambi
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Last edited on Sat Jan 30th, 2010 04:48 am by Bambi
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| Posted: Tue Jan 12th, 2010 02:19 pm |
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| Posted: Wed Jan 6th, 2010 08:23 pm |
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Bambi
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Capitol Insider.................
An Executive Summary prepared by Elliot Pollack is available by clicking here and a Fact Sheet/Press Release is available by clicking here. I suggest that you should click on the Fact Sheet/Press Release first as it is much shorter. The Executive Summary is 17 pages long.
As a follow up to this upcoming legislation for Arizona's Economic and Job Recovery Bill, I took a look at how Missouri is doing with their Quality Jobs Program. Maybe our new Economic Director should take a look at this too. Also, I have talked to employers and many are going thru Temp. Help Agencies now, for employment. And when more stability enters the picture, they plan on hiring these temps, since they already know them and have seen their job performance.
Missouri Quality Jobs Program
Net State Fiscal Impact - Over 15 years, every dollar of investment in the program returns:
- $9.01 in new general revenues = $1.3B over 15 yrs
- $160.16 in new personal income = $27B over 15 yrs
- $350.40 in new value added to state economy = $59.2B over 15 yrs
- $622.53 in new economic activity = $105B over 15 yrs
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Bambi
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I thought this was a good article to update you on FHA Loans, and show that lending safety is improving.
This is just heresay, but my research has brought up an FHA loan available requiring only a 500 credit score. And, only 12 months of history. Now that sounds too easy, causing us to head down to another Crash perhaps? No. Not so. There are other requirements that ups the anty with this particular lender, that never existed before. You must be pure today, even though you were not a year ago, with a perfect history of recovery. This works well for buyers that just couldn't make that higher payment, but were still employed, and consequently walked from their loan. You can still buy homes out here in the mid $60's.
Credit scores During the housing boom you could get an FHA loan with a FICO score below 500. The government has been steadily raising the limit since mortgage lending has contracted.Today, you need a minimum 600 FICO score to qualify for an FHA-backed loan. For many borrowers, that's not really an issue, because their lenders require even higher scores. But a few lenders resell their loans directly to the FHA, not to loan aggregators or other banks. These lenders, for a price, will lend to borrowers with the FHA minimum FICO score, which means that today it's still possible to get an FHA-insured loan with a FICO score of 600. That's about to end.
Donovan told Congress that the administration intends to raise the minimum FHA requirement "for the time being" to weed out risky borrowers. He didn't say by how much. Speculation ranges from 620 to 640. It's possible that the new requirements will be multilayered, letting borrowers balance a lower credit score with, say, a bigger down payment.
More from MSN "Of all these things, that will have the biggest impact, because there are so many borrowers who fall below the 620 score," says Dale Vermillion, author of "Navigating the Mortgage Maze: The Simple Truth About Financing Your Home." "Today, a lot of people have had credit issues, and their credit scores have gone down. When you combine the two (insurance and down-payment increases), it's certainly going to have an impact on purchases." (If your credit score is low, see "Raise your credit score to 740.")Raising FHA's minimum score changes the playing field, says Stern. While private lenders usually do require higher credit scores, they can drop their limits quickly when lending safety has improved. A higher minimum FHA requirement means lost flexibility for retail lenders and their homebuying customers.
The cost to you: Buyers with FICO scores under the new minimum, be it 620 or 640, will be shut out of loans. The rules probably will become more rigid than they are today.
http://articles.moneycentral.msn.com/Banking/HomeFinancing/last-chance-for-lowest-cost-loans.aspx?page=2
Last edited on Wed Jan 6th, 2010 03:23 pm by Bambi
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Bambi
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Volume II / Issue II January 5, 2010 AZ Speaker Kirk Adams Holds Conference Call To Discuss Legislation A Quick Update and Happy New Year!
This morning, I participated in a conference call with several different business stakeholders from across the state. The call was refreshing because the discussion was about how this State and businesses might bring jobs and economic recovery instead of another discussion about which state's economy was worse off: California, Arizona or Michigan.
The conference call presentation was made by Speaker Kirk Adams as he provided some details on a proposed 2010 Economic and Job Recovery legislative plan. The plan and legislation is the result of a research effort organized by Speaker Adams and conducted by Elliot D. Pollack and Company of Scottsdale. The legislation will be introduced during the 2010 Legislative Session. The Arizona Association of REALTORS will review and take a position on this legislative effort once the bill is introduced and our legislative committee has had a chance to review the language and impacts.
Readers of the two attachments below might find items to agree or disagree. Our purpose today is to get you the information as this and other proposals are sure to find there way into Arizona's business, political and media roundtables in short order.
An Executive Summary prepared by Elliot Pollack is available by clicking here and a Fact Sheet/Press Release is available by clicking here. I suggest that you should click on the Fact Sheet/Press Release first as it is much shorter. The Executive Summary is 17 pages long.
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Bambi
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I hope this information stays up that I'm copying from my Monday Report.....
 #yiv2078693666 p { font-size:14px;} Morning Scan Monday, January 4, 2010 The news you need from the major dailies
By Allison Bisbey Colter, with contributions from Maria Aspan and Cheyenne Hopkins.
Updated every business day, circa 9 a.m. ET. Links may require registration/subscription. To view Morning Scan on AmericanBanker.com, click here.
Receiving Wide Coverage ...Bernanke Mounts Defense: Federal Reserve Chairman Ben Bernanke, still awaiting confirmation for a second term by the U.S. Senate, gave a speech Sunday defending the central bank's easy money policy in the early part of the decade. The Journal said Bernanke "cracked the door open a bit more to the idea of raising interest rates if a new financial bubble emerges. He also mounted a vigorous defense against critics who say it was the Fed's low-interest-rate policies over the past decade that caused the last housing bubble. Instead, he said, the problem was lax regulation, which permitted banks to issue a slew of exotic mortgages that households later had trouble paying." The Times said Bernanke used "perhaps his strongest language yet assessing the roots of the financial crisis," as he said that regulatory failure, not low interest rates, was responsible for the housing bubble and subsequent financial crisis of the last decade. The Post said Bernanke argued that the Fed's low interest rate policies early in the decade were not a major cause of the housing bubble but he is open to using monetary policy to combat future bubbles. Wall Street Journal, New York Times, Washington Post
Times columnist Paul Krugman said that heeding the calls to end stimulus would cause the Federal Reserve and the government to repeat "the great mistake of 1937, when the Fed and the Roosevelt administration decided that the Great Depression was over, that it was time for the economy to throw away its crutches. Spending was cut back, monetary policy was tightened — and the economy promptly plunged back into the depths."
The Journal's Gerald F. Seib wrote, "Provided the Senate confirms Federal Reserve Chairman Ben Bernanke for a second term — which is likely — he will be handling one of the year's trickiest challenges: starting the withdrawal of the extraordinary jolt of monetary adrenaline the Fed shot into the American economic system to tame the recession." His first call will be "whether to stick to an announced plan to taper off Fed purchases of mortgage-backed securities in March." Next comes "a sensitive decision on when to start raising interest rates from near zero in order to drain away some of the massive sums pumped into the economy. Move too soon, and the economy could slide back into recession; too late, and inflation returns."
Stealth Move: Two editorials revisited the Treasury's lifting of the cap on potential losses at Fannie and Freddie on Christmas Eve. A Journal editorial titled "The Biggest Losers" said, "The government wants taxpayers to think that these are profit-seeking companies being nursed back to health, like AIG. But at least AIG is trying to make money. Fan and Fred are now designed to lose money, transferring wealth from renters and homeowners to overextended borrowers." A Post editorial said that any new design for Fannie and Freddie must clearly define the roles and responsibilities of the taxpayers and shareholders.
Economic Outlook: The Journal's "Outlook" column said U.S. policymakers face a challenge in the new year and beyond convincing the world that the U.S. government can get its finances back in order. The weekend edition's "Heard on the Street" column warned that any optimism about the economic recovery needs to be tempered by caution, as the global economy still is exposed to significant risk, including bank balance sheets. "Trading desks could be vulnerable to any asset-price corrections. And doubts remain whether banks are facing up to the full extent of losses on loan books... A sharp rise in bond market yields also would put pressure on bank-funding costs." The Saturday edition of the Post said the past decade was the worst decade for the U.S. economy with zero net job creation since December 1999.
Housing Outlook: Four articles in the weekend editions of the Post looked at various aspects of the housing market. Columnist Benny Kass said he sees improvements in the housing market but still possibilities for fraud and problems with commercial real estate. Another story looked at tentative signs of healing in the housing market in the new year. A third story said recent regulatory guidance has outlined the dangers of reverse mortgages. A fourth said all-cash investors are snapping up cheap property and helping clear out the excess supply in the housing market but at a cost to traditional home buyers.
Wall Street JournalIndependent financial advisers are gaining ground on Wall Street brokers in the competition to manage more than $5 trillion in Americans' savings. The ranks of brokers at major Wall Street firms have been shrinking, along with those firms' share of the retail-investing market. At the same time, independent advisers are growing in number and market share.
The nation's banks will be bombarding customers with new fees and products in 2010 as they try to replace more than $50 billion in revenue wiped out by new rules that clamp down on certain business practices. (Weekend)
An Op-Ed by Gary S. Becker, Steven J. Davis, and Kevin M. Murphy, economists at the University of Chicago, argued that a recession is a terrible time to make changes in economic rules of the game, such as those being contemplated for financial regulation, healthcare and tax policy, among others.
An Op-Ed by Thomas Fleming, a former president of the Society of American Historians, said that America's experiment with banning alcohol in the early part of the last century created problems that persist today. "In 2010, with talk of restructuring large swaths of our economy back in vogue, Prohibition should also remind us that Congress, scientists and economists seized by the noble desire to achieve some great moral goal may be abysmally wrong."
A string of redesigned variable annuities are hitting the market, after life insurers last year yanked the products that proved too generous to customers and threatened some insurers' financial health. The good news for consumers is that costs in the famously expensive products are edging down; But, in general, the new guarantees continue a trend in which insurers are trying to minimize their risk and consumer choice. (Weekend)
Hundreds of businesses are fighting to recover billions of dollars tied up in frozen auction-rate securities, a year after Wall Street firms agreed to $60 billion in settlements related to the collapsed market for the investments. (Weekend)
A weekend editorial said, "Banks that lend money to customers with poor credit histories have to charge more to cover the extra risk. If Congress makes this impossible, banks will respond by refusing to lend to such customers, so that it will be harder for them to re-establish their creditworthiness… Banks can't be expected to give money away, even if Congress is in the habit of doing just that. Unlike lawmakers, banks and other businesses can collect revenues only by offering something of value in return."
New York TimesAn unnamed source told the paper that the Justice Department is weighing whether to ask a federal judge to reduce the jail sentence of Bradley C. Birkenfeld, a former UBS banker who was a main figure in a wide-ranging tax evasion case against wealthy American clients.
Washington PostThe FDIC is considering a proposal that would encourage bidders on failed banks to offer a payment to the agency based on any short-term jump in the company's price. (Saturday)
Elsewhere ...In a column in the Huffington Post last week, editor-in-chief Arianna Huffington and Rob Johnson of the Roosevelt Institute urged readers to help create a better financial system by moving their money out of the Big Four banks — JPMorgan Chase, Citibank, Bank of America and Wells Fargo — and into community banks. The campaign includes a promotional video and a website where readers can plug in their zip code to find local banks that have at least a 'B' rating on the Institutional Risk Analytics' Bank Monitor stress index.
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Bambi
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Home prices rise for 5th Month Dec. 29, 2009 07:22 AM
Bloomberg News
Dec. 29 -- An index of home prices in 20 U.S. cities rose in October for a fifth consecutive month, putting the housing market and economy farther down the path to recovery.
The S&P/Case-Shiller home-price index increased 0.4 percent from the prior month on a seasonally adjusted basis, after a 0.2 percent rise in September, the group said today in New York. The gauge was down 7.3 percent from October 2008, the smallest year-over-year decline since October 2007. The median forecast of economists surveyed by Bloomberg News anticipated a 7.2 percent drop.
Tax credits for first-time buyers and mortgage rates that are less than a percentage point from record lows may prevent the market from retreating after sales jumped 35 percent over the first 11 months of 2009. Rising home and stock prices over the past two quarters enabled households to recover 28 percent of the record $17.5 trillion of wealth lost since mid 2007.
Home prices have generally stabilized, John Canally, an economist at LPL Financial Corp. in Boston, said before the report. Consumers feel a little more comfortable when prices stop falling. That'll help consumer spending.
Stock-index futures held earlier gains following the report. The contract on the Standard & Poor's 500 Index was up 0.4 percent to 1,127 at 9:07 a.m. in New York.
Median Forecast
The median forecast was based on projections from 31 economists surveyed. Estimates ranged for declines of 4.6 percent to 8 percent.
The seasonally adjusted 20-city index has been rising on a month-to-month basis since June, the first gain since it started dropping in June 2006.
Compared with the prior month, 11 of the 20 areas covered showed an increase on a seasonally adjusted basis while eight had a decline. The biggest month-to-month gain was in San Francisco, which increased 1.7 percent.
All of the 20 cities in the S&P/Case-Shiller index showed a smaller year-over-year decline than in September.
To help ensure housing doesn't weaken again, President Barack Obama and Congress last month extended a tax credit for first-time homebuyers until April 30 from Nov. 30, and expanded it to include some current owners.
Existing home sales in November rose to a 6.5 million annual rate, the highest level since February 2007, the National Association of Realtors said last week. They were still 10 percent lower than September 2005 peak levels.
Tax Credit
The tax credit had the intended impact of drawing buyers in and lowering inventory, Lawrence Yun, the real-estate agents groups chief economist, said in a news conference. An estimated 2 million buyers have taken advantage of the credit.
Mounting foreclosures and an unemployment rate that economists surveyed by Bloomberg News this month forecast will exceed 10 percent in the first half of 2010 remain risks for the housing market and the economy.
Foreclosure filings in 2009 will reach a record for the second consecutive year with 3.9 million notices sent to homeowners in default, RealtyTrac Inc., the Irvine, California- based company said Dec. 10. This year's filings will surpass 2008s total of 3.2 million.
Still, homebuilders are seeing some improvement. Hovnanian Enterprises Inc., New Jerseys largest homebuilder, said Dec. 16 its fourth-quarter loss narrowed as more buyers signed purchase contracts. On the whole, we are seeing more price stability across our markets, Chief Financial Officer Larry Sorsby said in a Dec. 17 conference call
Karl Case, an economist professor at Wellesley College, and Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University, created the home-price index based on research from the 1980s. Case this month announced his retirement from teaching.
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| Posted: Tue Dec 29th, 2009 04:26 pm |
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| Posted: Fri Dec 25th, 2009 03:27 pm |
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| Posted: Fri Dec 25th, 2009 04:43 am |
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Starlit
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Implications of Census on Real Estate:
Today's Arizona Republic of A1 Thursday, December 24, 2009
By Catherine Reagor The Arizona Republic
"Doubts arise over new Census claims of Ariz. growth
New Census Bureau estimates show that Arizona's population growth continued to slow at the end of the decade yet still was among the fastest in the nation.
"The federal date, released Wednesday, are likely to enflame the debate over whether Arizona is getting population estimates from the Census Bureau that reflect reality....
A5 Arizona Republic refering to the old way of tracking population census:"The (old) system worked until the housing boom of 2004 - to 2006, when too many new homes went up that didn't have residents living in them."
Last edited on Sat Dec 26th, 2009 02:02 am by
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| Posted: Thu Dec 17th, 2009 03:33 pm |
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Bambi
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20% of the closed sales for the last month were short sales that got approved. There are 4000 pending sales, and 14,702 listings that are short sales. This business will be around for at least the next two years. **Cromford report 10/29./as per Equity Title.
Last edited on Thu Dec 17th, 2009 03:36 pm by Bambi
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| Posted: Wed Dec 16th, 2009 02:22 pm |
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Bambi
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Ok. I asked my daughter to put in the proposed map from the Pinal site for San Tan Valley on our website. And, we placed the link in for Queen Creek. Maybe that will help remove the confusion of where we all live...for our clients anyway. We will refer other realtors to the same site to educate them on the changes happening out here.
http://bambisteam.wordpress.com/2009/12/16/proposedsantanvalley-pdf-applicationpdf-object/
If you have other ideas that you think will help eliminate the confusion then let me know. thanks.
B.
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| Posted: Tue Dec 15th, 2009 11:36 pm |
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pipeman
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Bambi wrote: See if this works for the video.
http://www.thinkbigworksmall.com/mypage/player/tbws/21001/1101628
I am sitting in my hotel in Mooresville, NC right across the street from Dale Earnhardt, Inc and Rusty Wallace Racing. I can't open either link. I am sure it is not the links but due to my IT Dept. blocks. I will check it out when I get back home. I need a good laugh.
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| Posted: Tue Dec 15th, 2009 10:34 pm |
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| Posted: Tue Dec 15th, 2009 10:04 pm |
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pipeman
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Bambi wrote: Crack Smoking Politician Sides with Big Banks - 12.15.09
Watch Video
There is a crack smoking politician that's siding with the banks with respect to H.R. 4173. Obama lays down the feather hammer to the bankers. More news from the FDIC about bank failures. Citi looking to get their bonuses back.
I couldn't open the video, but love the description of the politician Bambi. LOL 
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| Posted: Tue Dec 15th, 2009 09:29 pm |
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Bambi
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Crack Smoking Politician Sides with Big Banks - 12.15.09
Watch Video
There is a crack smoking politician that's siding with the banks with respect to H.R. 4173. Obama lays down the feather hammer to the bankers. More news from the FDIC about bank failures. Citi looking to get their bonuses back.
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| Posted: Tue Dec 15th, 2009 03:04 pm |
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| Posted: Sun Dec 13th, 2009 02:58 pm |
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Bambi
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Interest Rates Are Low, but Banks Balk at Refinancing
Mortgage rates in the United States have dropped to their lowest levels since the 1940s, thanks to a trillion-dollar intervention by the federal government. Yet the banks that once handed out home loans freely are imposing such stringent requirements that many homeowners who might want to refinance are effectively locked out.
It is highly unusual for mortgage money to be available below 5 percent. Average rates fell as low as 4.7 percent in the 1940s, as the government held down interest rates to finance World War II, and stayed just below 5 percent until the early 1950s. Rates went above 5 percent in 1952 and stayed there — until this year.
Some analysts believe rates could jump as high as 6 percent in the spring. On a $300,000 mortgage, such a jump would cost an extra $225 a month. The most recent Federal Reserve survey of lenders found that they were continuing to tighten terms for business and household loans.
A citizen said he would be willing to live with all the lost equity from his home if he could refinance his loan from a variable rate, which could eventually go as high as 12 percent, into a 30-year fixed term. His lender said no, citing the diminished value of the property. “It makes no sense and is so frustrating,” Mr. Belvedere said. “I’m ready and willing to pay the mortgage for the next 30 years, but they act like they’d rather have me walk away.”
The citzen said: “I have a perfect credit score, I make a good living and I’ve never been late with my mortgage in my life,” he said. “But as a self-employed businessman, there is no loan for me.” He plans to dispose of his house in what is known as a short sale, where the lender agrees to accept less than it is owed.
The Home Affordable Refinance Program, known as HARP, was designed to benefit between four and five million homeowners whose loans exceeded the value of their property by as much as 5 percent. But as of Sept. 30, only 116,677 loans had been refinanced.
The program was modified during the summer to refinance homes where the loan exceeded the value of the property by as much as 25 percent. But since lender participation is voluntary, they have the option of rejecting these loans — and they often do, mortgage brokers say.
http://www.nytimes.com/2009/12/13/business/economy/13rates.html?th&emc=th
On Nov. 10, 2009, Senator Christopher J. Dodd, chairman of the Senate banking committee, proposed a financial overhaul that included consolidating bank regulators, creating a consumer financial protection agency and imposing new restraints on exotic financial instruments and credit rating agencies. The 1,136-page plan differs in major respects from both the White House and House plans.
Even before it was made public, it had encountered sharp resistance from Republicans and powerful business interests in Washington. With little time left in the legislative session, it is all but certain that Congress will not deliver on President Obama's request to repair the financial regulatory system by the end of 2009.
On Friday, as the House passed a series of new financial regulations, it narrowly defeated a provision that would have allowed bankruptcy judges to modify the terms of mortgages. The measure was strongly opposed by the banking industry. And will be probably opposed by their friends, the Republicans, thus causing another stall in the economy.
The President is scheduled to meet with banking executives at the White House on Monday (tomorrow) in another administration effort to increase the flow of loans to consumers and small businesses. Let's track this meeting and see where the oppostion comes from. 3 guesses....the first two don't count.
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Bambi
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Char handles all the home sales. I'm the commercial guru (lol). Prices going up? What's zillow? It's all about supply and demand. We still have a large supply of homes on the market out here.
Unwilling lenders/banks that lack empathy for their fellow man; they want to get these homes off their books at just about any cost and refuse to modify these loans.....that's your culprit. That's part of what is keeping the prices down. No one individual can change that by raising their prices at this point imo. And when you are allowed to build homes in a remote area (like our area was/is) where there are virtually no jobs or adequate infrastructure to accomodate that many non city people, then only the low prices will entice someone else to buy it. That's all that we have to offer in our grab bag out here.
You can buy a older remodled home in downtown Coolidge for $25,000. How's that for low prices?
Dirt and commercial are almost at a standstill. That's my area of expertise. No banks or lenders will touch them. But if the President sets up a system that causes the banks to make business and commercial loans again, you will see jobs return; prices go up; infrastructure improve and the rest of the signs of progress and healing.
Our positive attitude change will entrench the marketplace, bringing back that feeling of success and accomplishment.
Last edited on Wed Dec 9th, 2009 01:36 am by Bambi
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pipeman
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Bambi, I get regualr emails from zillow. I have watched one home on Cowboy Way (Trail??) go down and down as well as my value. I got an email from Zilow yesterday about this home on cowboy way (trail??) and for once the email actually said the value has increased. It was only $1,000.00, but at least it did not say decreased again...
What are your thoughts on this?
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Bambi
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Are Banks Doing Enough to Help Homeowners? Most say no. Million of US families are struggling to pay their bills and the Banks aren't doing enough to help. There are 7.5 million homeowners who are behind in their mortgage payments and only a tiny fraction of people are able to get thru to the Banks. The banks aren't doing enough. The middleman the guy who services the loans who gets paid the most, if he prolongs the period the people owe money. That's a conflict of interest. It's buried under a pile of bueracratic baloney. Also, the banks DON'T Have to participate.....it's optional. As long as it's optional, they will serve their pocketbook versus the consumer.
It takes 4 months on the average to get a call returned from the lender. Call the mitigation department and keep insisting and covering yourself with a paper trail. Keep everything in writing. File a complaint with the OCC (Office of Contoller of the Currency) who is in control of the banks. Issue a complaint with them if the bank/lender refuses to work with you. http://www.occ.treas.gov/customer.htm
Their Mission?
Consumer Complaints and Assistance:
Mission Statement
The Ombudsman's Office is organized around core principles of dispute resolution and customer service. The office seeks to ensure national banks and customers of national banks receive fair and expeditious resolution of their complaints. The Customer Assistance Group's primary focus is to ensure customers of national banks receive fair treatment resolving their complaints with national banks.
The core values underlying our mission are the guiding principles of:
Maintaining a professional staff;
An environment that disadvantages no one and embraces a sense of fairness;
Independence and no retribution;
Convenience and accessibility for constituents;
Effective use of technology;
Processes that are integrated with and contribute to the agency's regulatory responsibility; and
An element of confidentiality.
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Bambi
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Meet an Attorney General that's DOING THE RIGHT THING! 12.02.09
Watch Video
More fun from HUD inside... Tax Credit or Seller Paid DPA, which is the savior and which is the failure? It's nice to see an Attorney General do the right thing for our industry for a change.
Lots of good inside information if you are interested.
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| Posted: Tue Nov 24th, 2009 07:13 pm |
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Bambi
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Here's wishing everyone a Great Thanksgiving........ 
Existing home sales rise 10.1 percent
Nov. 23, 2009 08:08 AM
Bloomberg News
Nov. 23 -- Sales of existing U.S. homes increased more than forecast in October to the highest level since February 2007, spurred in part by a tax credit that lured first-time buyers.
Purchases rose 10.1 percent to a 6.1 million annual rate from a 5.54 million pace in September, the National Association of Realtors said today in Washington. The median sales price decreased 7.1 percent from October 2008, the smallest decline in more than a year.
Cheaper homes and stimulus such as the $8,000 incentive, extended and expanded by the Obama administration this month, have revived an ailing housing market that contributed to the worst economic slump since the Great Depression. Further improvement that would aid the economy's recovery depends on an easing in unemployment and foreclosures.
We've turned the corner, John Herrmann, president of Herrmann Forecasting in Summit, New Jersey, said before the report. A pickup in sales is helping builders to burn through the inventory. It'll still be a gradual recovery.
Existing home sales were forecast to rise to a 5.7 million annual rate, according to the median forecast of 66 economists in a Bloomberg News survey. Estimates ranged from 5.2 million to 6 million, after an initially reported 5.57 million rate in September.
Sales had reached a 4.49 million pace in January, their lowest level since comparable records began in 1999.
Purchases of existing homes rose 23.5 percent in October compared with a year earlier. The median price fell 7.1 percent from a year ago to $173,100.
Months Supply
The number of previously-owned unsold homes on the market fell 3.7 percent to 3.57 million. At the current sales pace, it would take 7 months to sell those houses compared with 8 months at the end of the prior month. The months supply is the lowest since February 2007.
The share of homes sold as foreclosures or otherwise distressed properties rose to 30 percent from 29 percent in September, NAR chief economist Lawrence Yun said in a press conference today.
The report showed sales of existing single-family homes rose 9.7 percent to an annual rate of 5.33 million. Sales of condos and co-ops increased 13.2 percent to a 770,000 rate.
Purchases rose 11.6 percent in the Northeast, 14.4 percent in the Midwest, 12.7 percent in the South and 1.6 percent in the West.
Sales of previously owned homes, which make up more than 90 percent of the market, are compiled from contract closings and may reflect purchases agreed upon weeks or months earlier. Many economists consider new-home sales, recorded when a contract is signed, a more timely barometer.
New Home Sales
The Commerce Department may report on Nov. 25 that new home sales rebounded to a 405,000 annual percent in October, according to the Bloomberg survey.
Home construction seized up last month as builders waited to find out if the first-time homebuyer tax credit would end, a Commerce Department report showed last week. Builders in October broke ground on the fewest houses since April's record low annual pace.
Sales and construction may get another boost after President Barack Obama on Nov. 6 extended the incentive until April 30. Earlier, buyers had to close the transaction by Nov. 30 to be eligible. The government also expanded the program to include some current owners.
Borrowing costs may remain low as the Federal Reserve has signaled it'll keep the benchmark interest rate near zero for an extended period. The average rate on a 30-year fixed mortgage fell last week to 4.83 percent, the lowest since May, according to Freddie Mac.
Labor Market
While low rates and government aid are making it easier to buy a home, the labor market remains a risk. The unemployment rate, which rose to a 26-year high of 10.2 percent last month, will stay above 10 percent through the first half of 2010, a Bloomberg survey showed.
Foreclosure filings surpassed 300,000 for an eighth straight month in October as rising joblessness made it tougher for homeowners to pay bills, according to RealtyTrac Inc. data.
Some companies see a potential for stronger demand. Hovnanian Enterprises Inc., New Jerseys largest homebuilder, has signed contracts or options to buy 4,000 land lots in preparation for a market recovery, said Chief Executive Officer Ara K. Hovnanian. The Red Bank, New Jersey-based builder had reduced its land holdings during the recession.
Prices are ridiculously low in some markets, he said at a conference in New York on Nov. 17. That's not going to stay.
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| Posted: Mon Nov 23rd, 2009 10:41 pm |
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Bambi
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Special Anti-Deficiency Update
The House of Representatives passed SB 1004, the anti-deficiency fix, early this afternoon with a vote of 53-0. SB 1004 included the repeal and replacement of ARS§ 33-814 essentially returning the statute to its original status prior to the passage of SB 1271. With this fix, Arizona will continue to operate as a deed of trust state with the protections that have been in existence since 1971.
SB 1004 did pass both the Arizona State Senate and House of Representatives with an emergency clause, and it will go into effect upon Governor Brewer's signature. We will continue to work with the Arizona Bankers Association on language to address "speculative builders" in the upcoming session in order to resolve this issue entirely.
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| Posted: Fri Nov 20th, 2009 01:40 pm |
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Bambi
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Volume I / Issue XVI
November 19, 2009
4th Special Legislative Session Update
The introduced version of SB 1004: ANTI-DEFICIENCY STATUTES, PROPERTY AMENDMENTS included the repeal and replacement of ARS§ 33-814 with an additional subsection (H) that would not provide deficiency protection for speculative construction projects. This proposed addition to the statute was compromise language agreed to by both the Arizona Bankers Association and AAR. However, there was some concern by the Homebuilders of Central Arizona that the language would not provide the protection to their buyers. We attempted to continue to negotiate to come up with language aimed at "spec builders" but ran out of time.
Senator Pamela Gorman felt that the underlining repeal of SB 1271 should be the priority, as did AAR, so she offered an amendment to SB 1004 that stripped the compromise speculative builder language from the bill leaving in place just a straight repeal and replacement of ARS§ 33-814, essentially returning the statute to its original status prior to the passage of SB 1271. With this fix, Arizona will continue to operate as a deed of trust state with the protections that have been in existence since 1971.
Tom Farley provided testimony for AAR in both the House and Senate Appropriations' Committees on why the legislature needed to pass a repeal of SB 1271 as a priority. Both committees supported AAR's position with unanimous votes.
Meghaen Duger and Tom Farley continue to lobby in support of the legislation while the Senate moves the legislation through the process first. The Arizona State Senate passed SB 1004 by a vote of 26-1-3 early this afternoon. SB 1004 is awaiting transmittal to the House of Representatives for a final vote now expected for Monday afternoon. AAR is getting very close to having the legislation on the Governor's desk.
Unfortunately, the Senate was unable to pass two budget bills needed to help manage the nearly $3 billion deficit in fiscal year 2010. Republican Senator Thayer Verschoor could not be located for the vote, leaving the Senate one vote shy of the needed 16 votes. The Senate adjourned until Monday at 1PM and the House quickly followed suit thereafter. Republican leadership is expected to continue to work through the weekend to get the necessary votes needed for the budget.
Without the efforts of Governor Jan Brewer, Speaker Kirk Adams, President Bob Burns as well as the leadership teams of both the Republicans and Democrats, we would not have been placed in the Special Session call nor had the opportunity to address this issue and ensure that the repeal of SB 1271 stands.
It was clear by the overwhelming support of both the Republican and Democrat Caucuses that this issue has become important to them and that they have listened to their constituents and our members to come to a speedy resolution.
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| Posted: Thu Nov 19th, 2009 09:04 pm |
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Fisher 2009
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Please see my new post on Population figures by state officials.
There are implications there for real estate, too.
Elliott E. Fisher
Pinal County Independent
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| Posted: Mon Nov 16th, 2009 09:12 pm |
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Bambi
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MARKET NEWS for Monday November 16, 2009: Kirk Brewer
>>>>>>>>>>>>>>>>>>>>>>>>>>>>> <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
October retail sales numbers were reported this morning. Retail sales rose 1.4%, more than the 1.0% expected by economists. This increase was mostly attributed to increased auto sales. And despite continuing concerns about the unemployment rate and tight credit, Wall street took the news positively. The DJIA was up more than 100 points, closing above 10,400. Accordingly the 10-yr was up almost 50 basis points and mortgage rates were slightly better, with conventional 30-yr fixed rate mortgages now under 5.0%.
While watching one of those house hunting shows on HGTV over the weekend, House Virgins I think it was called, and near the end I had to rewind my Tivo when the narrator noted that the buyer was getting a 100% conventional mortgage (80/20). I then looked back at the program description to determine what decade this show was first aired … it said 2008. Clearly this show was not filmed in a “distressed market.” Fannie Mae and Freddie Mac have released their conforming loan limits for 2010. The limit will remain at $417,000 on single family residences. Arizona continues to wear the label of “distressed market,” which means without FHA, VA or USDA loan backing, the highest LTV available for conventional loans with mortgage insurance is 90%. There is no longer the option to do an 80% first backed up with a 15% or 20% second. Those I’ve spoken to in the real estate and mortgage industry are optimistic that we will see this “distressed-market” label disappear sometime in 2010. Wouldn’t it be great to get back to 5% down conforming mortgages? We can only hope!
3 more banks were closed on Friday, bringing the total number of banks closed by regulators in 2009 to 123. Overall it was a slow week for economic news last week. But for those interested, Barak Obama was heading out for a whirlwind tour of Asia, with stops planned for Japan and China in particular.
It was reported that for the ninth year in a row, the most popular car color was silver. In fact, GM says that this year, all three of the cars they sold were silver.
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| Posted: Mon Oct 26th, 2009 11:25 pm |
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Bambi
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| Posted: Mon Oct 26th, 2009 10:34 pm |
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Bambi
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Home Sales Scale 2 Year High in September [/url]
By Lucia Mutikani Lucia Mutikani – Fri Oct 23, 12:55 pm ET
WASHINGTON (Reuters) – A tax incentive for first-time buyers helped propel sales of previously owned U.S. homes to a two-year high last month, according to data on Friday that showed the economy's recovery was becoming entrenched.
The National Association of Realtors said sales of existing homes jumped 9.4 percent in September to an annual rate of 5.57 million units, the highest level since July 2007. Financial markets had expected sales to rise to a 5.35 million unit pace after a surprise decline in August.
Sales were partly driven by first-time buyers rushing to take advantage of the government's popular $8,000 tax credit, which is due to expire at the end of November. Sales were up 9.2 percent compared to September of last year.
"The rapid gain in home sales over the past few months likely owes, in part, to the home buyer tax credit. That said, the trend in home sales is still higher amid greater affordability and an improving economic outlook," said Michelle Meyer, an economist at Barclays Capital in New York.
Despite the bullish report, U.S. stock prices fell as investors fretted over disappointing results from chip maker Broadcom Corp and silicon producer MEMC Electronic Materials Inc, which bucked a recent trend of solid earnings reports.
The housing sector's collapse and subsequent global credit crisis helped to push the U.S. economy into recession at the end of 2007. The downturn was the worst in 70 years.
The housing market is now crawling out of a three-year slump and analysts believe homebuilding probably contributed to economic growth in the third quarter, which would be its first positive contribution since the end of 2005.
ECONOMY GROWING AGAIN
Signs of recovery in the housing market, coupled with other fairly upbeat data, strongly suggest the economy started growing again last quarter for the first time since the second quarter of 2008. The government will release third-quarter gross domestic product estimates next week.
Sales for both new and previously owned homes have been boosted by a combination of the tax credit, depressed prices and low mortgage rates.
There are worries the expiration of the tax credit could hamper the recovery, however, and many lawmakers want to extend the program, with some pushing to expand it to all buyers.
The tax credit has so far cost the government about $10 billion and the Obama administration has yet to decide whether it will back an extension, weighing it against the impact it will have on an already bloated budget deficit.
"We are hopeful the tax credit will be extended and possibly expanded to more buyers ... because the rising sales momentum needs to continue for a few additional quarters until we reach a point of self-sustaining recovery," said Lawrence Yun, chief economist at the Realtors' trade group.
Distressed properties made up 29 percent of sales last month, with first-time buyers accounting for 31 percent, but analysts said other forces also helped.
"Our view is that near-record affordability and falling inventory is pulling people into the market," said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.
The inventory of existing homes for sale in September dropped 7.5 percent to 3.63 million units, the NAR said.
September's sales pace pushed the supply of previously owned homes on the market down to 7.8 months' worth, the lowest in 2-1/2 months, from 9.3 months in August.
On the prices front, the national median home price fell 8.5 percent to $174,900 in September from a year earlier, the smallest percentage decline in 13 months.
Also............
By Corbett B. Daly Corbett B. Daly – 20 mins ago
WASHINGTON (Reuters) – The U.S. Senate could vote on Tuesday to extend a popular tax break for home buyers that has helped lift the housing market out of its worst slump since the Great Depression.
Last edited on Mon Oct 26th, 2009 10:35 pm by Bambi
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| Posted: Thu Oct 15th, 2009 09:14 pm |
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Bambi
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This is what happens when you have a representative who "thinks" he understands the mechanics of real estate lending.
History Lesson from American Banker...............
David Stevens, the commissioner of the Federal Housing Administration, says the critics who are pushing to increase his agency's down-payment requirement have misdiagnosed the mortgage crisis.
"It isn't the [lack of a] down payment on its own that causes a default," Stevens said Monday at the Mortgage Bankers Association's annual convention in San Diego. "It's the layering of risk that we saw in the industry that causes default. It's 'no down payment on an option ARM on an 80-20 loan' that ended up having those kinds of performance characteristics."
Rep. Scott Garrett, R-N.J.,introduced a bill this month that would raise the minimum borrowers must put down to get an FHA-backed mortgage to 5% from 3.5%. Stevens said such an increase would shut out borrowers, particularly in high-cost markets like California.
"Quite frankly, the intangible impact of these minor changes being proposed would stagnate or forestall a recovery," he said.
FHA mortgages are insured to protect lenders in case of a default on the FHA loan. An FHA mortgage is advantageous to the borrower because of the reduced cash investment needed to close on a home. The FHA mortgage is possible in part because the FHA is funded solely from income it creates itself. The FHA is not funded by tax dollars, but from the revenue generated by FHA mortgage insurance. This cost is borne by the homebuyer, but the insurance cost ends approximately five years later, or when the FHA mortgage balance is seventy-eight percent of the property value, whichever occurs last.
The 203(b) fixed rate loan is the most popular FHA home loan, especially among first time home buyers. If you have never purchased a home before, you may wish to consider the 203(b) FHA loan—it keeps your downpayment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. There are some debt-to-income ratios you’ll be required to adhere to, but the 203(b) does not have a minimum income requirement
MIP (Mortgage Insurance Premium). That's what's paid to minimize the risk. It's paid in front many times, or included in the payment. Why take away a loan that gives an advantage to the qualified borrower by taking away the advantage? Place them in a conventional loan instead. Conventional loans require a min. of 5% down.
Why make it more difficult to purchase real estate during this time? Just make sure you're not working with a predatory lender. Work with "approved" FHA Lenders only.
If this goes thru, the next stop is the VA loan.
The VA loan is a program set up to help active duty and retired military personnel into homes. They will give you 100% financing on a home without having to pay mortgage insurance at a very competitive rate. The VA also limits the types of fees that can be charged protecting against predatory lending. The seller can pay up to 6%, which should cover more than enough of costs so you can get into you new home with no money out of pocket.
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| Posted: Thu Oct 15th, 2009 03:37 pm |
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Bambi
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Every 7.5 seconds, an American Family's home is foreclosed upon.
Yet $140 billion in bonus's has been handed out by Wall Street.
Using taxpayer money for their risk taking, then paying it out in excessive bonus's instead of circulating down to Main Street.
Unfettered Capitalism.....paying Lobbyist millions to fight regulation. Constantly working on schemes to change the rules.
If you believe that you have the right to do as you please without government intervention or regulation, like many Conservatives and Libertarians do, then you will get this end result......them; Wall Street and Corporations, controlling the People.
Health Insurance Companies exempt from regulation. Look at that result.
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| Posted: Tue Oct 13th, 2009 07:05 pm |
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39th Post |
Bambi
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I've been in Kansas, so I don't have alot to report. I'll pass on some of the news lenders and others have sent me. I do know that many feel we haven't reached bottom yet out here.......but that's because it's a bargain hunters paradise. Sooner or later, we have to get the confidence back so prices will stablelize. Banks just want them off their books, so they'll take just about anything.....that's what's keeping those prices down. If they would halt that type of mentality and start demanding more, we might start climbing. Anyway, here's some news from a local QC guy named Kirk Brewer. Farmers Ins.
MORTGAGE RATES: Friday’s mortgage price action was a sign that markets can move quickly, and not always in expected ways. Why did mortgage interest rates shoot up Friday? I don't buy off on the reason many suggest: "...Federal Reserve Chairman Ben S. Bernanke said the central bank will be ready to raise interest rates when the economic outlook ‘has improved sufficiently’." He is stating the obvious. Is there some kind of surprise there? The fact of the matter is that rates have come down, and stayed down, in spite of the supply last week and in spite of signs that the economy is not as bad as it was 6 months ago. Many mortgage lenders are/were back offering 30-yr rates in the high 4's. And when markets move one way or the other to a large degree, or for an extended period of time, they are likely to rebound the other way – just like a rubber band. Plain and simple.
STOCK MARKET: Today we saw the market continue it’s upward climb from last week’s gains. AT one point in early trading, the Dow Jones Industrial Average was a mere 70 points shy of 10,000 – a critical resistance level according to many analysts. We’re near or at the highs of the year, despite a stagnant housing and employment picture. And more U.S. stocks are trading at 52-week highs than at any time since June 2007. We are again in quarterly earnings season with several large DOW components due to report this week. The markets could see some increased movement based on the earnings results (better or worse than expected) of those companies with early announcements.
ECONOMY: Would you like to hear what 44 national business economists believe the general economy, including housing and employment, is going to do for the rest of 2009 through 2010? Well here is a link to a good article I came across today. It seems to present a cautious, yet realistic perspective regarding where we are at in the cycle today, and what the recover should have in store. http://news.yahoo.com/s/nm/20091012/bs_nm/us_usa_economy_survey_5
And here's something from M. McDermott.....a lender.
Here are a few basic clarifications on some myths that I have heard regarding Mortgage Lending:
1. BUYING A NEW PRIMARY & TURNING OLD HOME INTO INVESTMENT –
a. If buying a new primary, buyer does not need a certain amount of reserves OR equity in their current home to buy
b. The only time equity in current property is an issue is if the buyer is trying to use the new rental income they will receive on their current primary that they are turning into an investment prop. In that case they need to have and document 30% equity to use the new rental income. Otherwise we count all mortgage payments against them.
2. MULTIPLE PROPERTIES FOR INVESTORS –
a. An investor can have more than 4 financed properties. They can have up to 10.
3. INVESTOR CASH OUT –
a. Investors can pull cash out of properties that they purchased with cash (up to 75% loan to value). To use current market value, the property must have been owned for 6 months.
4. FHA 90 DAY FLIP –
a. The 90 day count starts on the prior sales Settlement Date, NOT the Recording date. Please see the attached document if you need to help a seller understand this. The attached doc is directly from the latest and greatest FHA guide book (its published quarterly).
b. Flip rule was waived recently for buyers using NSP programs only (ex. of an NSP is Your Way Home AZ – which we have). The flip rule was not waived for all FHA purchases.
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| Posted: Fri Sep 25th, 2009 04:42 am |
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40th Post |
| Posted: Thu Sep 24th, 2009 03:47 pm |
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41st Post |
Bambi
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More News on Mortgage Assistance. You decide if it's SPIN, from this credible resource. If the consensus is it's SPIN and politically biased, then I'll delete it tonite.
Mortgages Update
Thursday, September 24, 2009
White Papers
Web Seminars
Pipeline
A roundup of credit market news and views
By Marc Hochstein, Kate Berry, raising credit score requirements.
The government-sponsored enterprise told lenders this week that it will require a score of at least 620 for most loan types — including those insured by government agencies such as the Federal Housing Administration and Department of Veterans Affairs.
Currently, the minimum score for most products is 580, and there is no minimum for government loans. The new minimum will take effect for manually underwritten loans on Nov. 1, and for loans underwritten using Desktop Underwriter when Fannie updates the software on Dec. 12.
"Our experience with recently delivered loans with credit scores below 620 is that they reached a level of serious delinquency at a rate approximately nine times higher than other acquisitions during the same period," Brian Faith, a spokesman for Fannie, wrote in an e-mail to American Banker Wednesday.
Loans that are underwritten using nontraditional credit data like rent or utility payments will remain exempt from minimum score requirements, Fannie said. So will Refi Plus, a product offered under the Obama administration's Home Affordable RefinanceCQ Program to borrowers who owe more than their homes are worth on an existing loan owned or guaranteed by Fannie.
Eye on Refis
Refinancing applications jumped last week as the average 30-year fixed rate dipped below 5% for the first time since mid-May, the Mortgage Bankers Association said Wednesday.
The trade group's index of refi requests increased 17% over the previous week. Its index for applications for home-purchase loans climbed 5.6%, driven by demand for government loans, the MBA said.
The index of government purchase loan application volume reached the highest level ever recorded since the survey began in March 1990. Government loans' share of all purchase-loan applications was 45.7% last week, the highest since November 1990, the MBA said.
Mortgage Maxx LLC said Tuesday that its index of refi and purchase applications in eight bellwether states climbed 2.4% last week from the previous week. The Ossining, N.Y., data firm's component index for California applications increased 5.2%.
Mark Fleming, the chief economist at First American CoreLogic, a unit of First American Corp. of Santa Ana, Calif., released a study last week that found refis resulted in $2.3 billion in mortgage payment savings in the first half of the year.
The Federal Reserve Board's lowering of mortgage rates through purchases of mortgage-backed securities, and other federal programs such as Harp, have allowed 2 million consumers to reduce payments by an average of $120 a month, Fleming said.
Those savings will "be used to increase consumption and help to drive growth as the economy rebounds," he said.
Lower payments and fixed-rate terms also should reduce the risk of future foreclosure, he added.
Moody's on Mods
Servicers that are modifying home loans in private-label securitizations under a Treasury Department program are not following one of the guidelines, according to Moody's Investors Service Inc.
Under the Home Affordable Modification Program, when principal is reduced servicers are encouraged to recognize the loss at the time the loan is rewritten. But Cecilia Lam, a Moody's analyst, wrote in a report released last week that servicers dealing directly with borrowers "have punted the issue" of when to recognize these losses to the master servicers of the pools. Fear of being sued by subordinate bondholders, who stand to lose the most from principal writedowns, may be one reason why servicers have been so sheepish, Lam wrote.
That may explain why most of the modifications for the Obama administration's Home Affordable Modification Program are being done on loans owned or guaranteed by Fannie and Freddie Mac. William Fricke, a Moody's vice president and senior credit officer, analyzed the second servicer performance report released this month by the Treasury and found that 65% of trial modifications were started on loans owned or guaranteed by one of the GSEs.
Quotables …
"The single largest impediment to a recovery in the housing market is the large number of loans that are either in delinquent status or in foreclosure that are destined to liquidate. This creates a huge shadow inventory. We estimate this housing overhang at 7 million units, 135% of a full year of existing home sales."
Analysts at Amherst Securities Group LP led by Laurie Goodman, in a note to clients Wednesday.
"There will be death panels enacted by this Congress, but they will be for nonbank financial institutions. … We are talking about dissolutions, not 'resolutions.' We are talking about making it unpleasant for the entities."
Barney Frank, the chairman of the House Financial Services Committee, on the idea of creating a "resolution authority" for systemically important firms, at a hearing Wednesday. (See
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| Posted: Thu Sep 24th, 2009 03:24 pm |
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42nd Post |
Bambi
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Last edited on Thu Sep 24th, 2009 11:57 pm by Bambi
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| Posted: Thu Sep 24th, 2009 02:47 pm |
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Bambi
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starleen wrote: Bambi wrote: Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
Making Home Affordable Program hasn't helped enough, some say
http://www.cnn.com/2009/POLITICS/08/31/treasury.mortgages/index.html
"Treasury is on track to help 3 million to 4 million homeowners in three years."
How many of those 3 to 4 million need the help NOW, not in three years??
The SPIN is so obvious to many of us that JTP doesn't need to explain. And who cares whether he is on here to contribute or attack, it is a public forum. Sometimes attacking IS the contribution, and on the other hand, having an alternate opinion expressed with a dry sense of humor is not necessarily attacking! And now we need to certifiy our RE knowledge before we can post this thread?
Nobody has to wait 3 years Starleen. You should read better sources to back up your accusations against me. So far, this is what has transpired since the program begin in March of this year, along with my stats.
On March 4, 2009, the Obama Administration introduced MHA Program to stabilize the housing market and reduce monthly mortgage payments for Americans. The program aimed to help 3-4m homeowners, and so far 15% of eligible homeowners — or 2.7m — received help after six months, according to Federal Housing Administration (FHA) commissioner David Stevens.
“MHA has achieved clear success in a relative short time period and there are some indications that the housing market is stabilizing with home price declines slowing,” he said in prepared testimony delivered to the House subcommittee hearing Wednesday. In August an uneven performance among servicers initially participating in the program. Since then, In July, Treasury secretary Timothy Geithner and the Housing and Urban Development (HUD) secretary Shaun Donovan sent a letter to servicers urging them to do more.
Michael Barr, the Treasury assistant secretary for financial institutions said in written testimony that servicers at the meeting committed to reaching a target of 500,000 trial modifications by Nov. 1, 2009.
When asked at the hearing what the expected rate of enrollment would be in the future, Barr stated that the program is on track to reach nearly 4m borrowers over the next three years.
And by the way......Bush's Program is successful too and is still in operation. If you scroll down, you'll see where I posted his successful program also, called Hope For Homeowners.
People participating in an Internet forum are trying to cultivate social bonds and interest, ideas and solutions from the discussions. Attacking my answer doesn't accomplish that and staying on topic is critical, in a civil way. I have yet to see what the reason for spin is on this real estate topic I was discussing with LTA. Your insert of some news agencies' (CNN) report means little. Show me some stats. real estate stats, not Partyline stats against Obama. That's why if you call it spin, then you need to tell us how the spin works on this real estate topic, using real estate information, without political cause, because that's not what this topic is about. It's about Real Estate and Mortgage Updates.
I started this thread and did so to help people with their real estate needs. You disagree and contend I am soliciting business. Not true. Nor has it ever happened. Not one customer have I gleaned from here, but many friends. To come on here making a statement of spin, without proof of such, is a false attack and an attempt to hijack the thread and change it's content. Similar to the false attack you made on me, accusing me of trolling on here to find customers. What I perceive you and your right wing counterpart doing is trolling to find fault, not discussion, because of my political affiliation, thereby discrediting me, even though it's my field of expertise.
A troll is a user that repeatedly and intentionally breaches in the very least, online ediquette, often posting derogatory or otherwise inflammatory messages or words about topics they know little about, to bait users into responding, often starting an online war. They may also plant images to cause confrontation. Some people on here have accused EJ Elliot of doing this. Where is your outrage about that? Where is the Spin accusation? Or is it just Bambi's post that needs attacking for a political or credibility reason.
Now, describe your reason for my answer being spin.....spin on this real estate topic. If it's not about real estate, then I take it as bait from a poster who has no conpunction to argue the merits of these real estate programs, but only to state it is spin. Spin into what? For what reason? For who's benefit? You state it's obvious. Please show me and the rest of us who are waiting for your answer.....that would be the Plumber and yourself.
And BTW, Attacking is never the solution nor is it allowed on any forums where the Pledge you sign disallows it. Most of us have done it at one time or another, but have hopefully learned by our mistakes.
Last edited on Thu Sep 24th, 2009 06:32 pm by Bambi
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| Posted: Thu Sep 24th, 2009 08:11 am |
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44th Post |
starleen
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Bambi wrote: Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
Making Home Affordable Program hasn't helped enough, some say
http://www.cnn.com/2009/POLITICS/08/31/treasury.mortgages/index.html
"Treasury is on track to help 3 million to 4 million homeowners in three years."
How many of those 3 to 4 million need the help NOW, not in three years??
The SPIN is so obvious to many of us that JTP doesn't need to explain. And who cares whether he is on here to contribute or attack, it is a public forum. Sometimes attacking IS the contribution, and on the other hand, having an alternate opinion expressed with a dry sense of humor is not necessarily attacking! And now we need to certifiy our RE knowledge before we can post this thread?
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| Posted: Wed Sep 23rd, 2009 08:22 pm |
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45th Post |
Lovethisarea
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Bambi wrote:
Now that was Bush's Program.
Take a look at Obama's Program. This is from the White House. It's called the the Making Home Affordable Program. LTA.....You may want to ask for a 40 year loan.
I have confirmed with Countrywide many, many times that we do not qualify for Obama's program. The last two times I asked Countrywide, I told them I wanted to be absolutely sure I don't qualify and they said I can be sure... they are positive I Do Not qualify. The last time I spoke to them (surprisingly the first time they were nice to me!) they told me that Obama's program would actually make our mortgage go up! 
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| Posted: Wed Sep 23rd, 2009 08:16 pm |
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46th Post |
Lovethisarea
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Bambi wrote:
Here is that fact sheet for Hope For Homeowners Program................ Countrywide does not have to participate and has chosen not to participate, probably because of the equity trade and the requirement for them to reduce the principle which angers their investors.
The HOPE for Homeowners program runs until September 20, 2011.
Thanks for the info Bambi. So would I be right to assume that contacting a counselor or FHA approved lender about this HFH program is a waste of time since I have Countrywide?
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| Posted: Wed Sep 23rd, 2009 03:38 pm |
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Bambi
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Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
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| Posted: Wed Sep 23rd, 2009 03:19 pm |
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48th Post |
| Posted: Wed Sep 23rd, 2009 03:06 pm |
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49th Post |
Bambi
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Now that was Bush's Program.
Take a look at Obama's Program. This is from the White House. It's called the the Making Home Affordable Program. LTA.....You may want to ask for a 40 year loan.
 Text A+ A- A | En españolNeed urgent help? Contact the Homeowner’s HOPE™ Hotline: (888) 995-HOPE
About Eligibility Loan Look Up Find a Counselor Contact Your Mortgage Servicer Resources Audio and Video
Press Releases
To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®
Home › Resources › Press Releases
Press Releases
August 4, 2009
MAKING HOME AFFORDABLE PROGRAM ON PACE TO OFFER HELP TO MILLIONS OF HOMEOWNERS
Public Release of Data Provides Transparency on Servicer Performance
WASHINGTON – Today, the Obama Administration released its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program. The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.
On February 18, the Obama Administration announced its comprehensive plan to stabilize the U.S. housing market. Two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications immediately. MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP).
MHA has made rapid progress in a few short months. Servicers covering more than 85 percent of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun. This pace of modifications puts the program on track to offer assistance to up to 3 to 4 million homeowners over the next three years, our target on February 18.
Today’s report discloses performance on a servicer-by-servicer basis in order to increase transparency for participating institutions. The data show that servicer performance has been uneven. The Administration has asked servicers to ramp up implementation to a cumulative 500,000 trial modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.
The Administration is taking additional steps to improve performance. On July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process. Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28. The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications. As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a “second look” process to audit MHA modification applications that have been declined on an ongoing basis.
Making Home Affordable
MHA On Pace to Offer Help to Millions of Homeowners
1. Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years
- More Than 230,000 Trial Modifications Started
- More Than 85 Percent of Mortgage Market Covered by Participating Servicers
2. Performance Metrics Aimed at Improving Consistency of Servicer Performance
- Description of Metrics Used to Measure Servicer Performance
- Servicer Performance Metrics Show Uneven Progress in Implementation
- Target of 500,000 Cumulative Trial Modifications Started by November 1, 2009
3. Public Report Increases MHA Program Transparency
1. Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years
- More Than 230,000 Trial Modifications Started
No program has previously attempted to modify so many mortgages at such affordable terms for borrowers. The Administration is seeing real results – modifications that provide long-term solutions for borrowers.
- In 2008, 42 percent of modifications by the largest servicers lowered monthly payments. Under the MHA modification program, 100 percent of borrowers starting trial modifications have had their payments reduced.
- More Than 85 Percent of Mortgage Market Covered by Participating Servicers
- Thirty-eight servicers have signed Servicer Participation Agreements (SPAs) to participate in the program. These 38 servicers service many types of loans, including Fannie Mae and Freddie Mac loans, private label loans and loans in portfolio.
- Approximately 2300 servicers that service Fannie Mae and Freddie Mac loans are automatically participating in HAMP.
2. Performance Metrics Aimed at Improving Consistency of Servicer Performance
- Description of Metrics Used to Measure Servicer Performance
The Administration has established a servicer-by-servicer performance metric to enhance overall program performance.
- The report includes the absolute number of trial modifications begun by each servicer.
- The report also includes a simple performance metric which measures each servicer’s performance relative to an estimate of the servicer’s HAMP eligible loans.
- The performance metric used in the report is trial modification starts as a share of estimated HAMP eligible loans.
- Many loans are eligible for HAMP that are not included in the estimated HAMP eligible loans in the public report, including current borrowers in imminent default.
- This measure of estimated HAMP eligible loans was developed solely to provide a common denominator across which to compare performance of servicers.
- Servicer Performance Metrics Show Uneven Progress in Implementation
The metric measuring comparative servicer performance shows uneven ramp-up, and substantial variation in the pace of modifications. To improve performance, the Administration has asked servicers to commit to starting 500,000 trial modifications by November 1, 2009 and to establishing exacting metrics to monitor servicer specific program performance.
3. Public Report Increases HAMP Program Transparency
Today’s report will provide transparency into program results on a servicer specific basis.
- Reports Will Be Issued on a Monthly Basis
The Administration expects to issue reports detailing the progress of modifications under the HAMP program each month. This report will be updated to include additional metrics and results as the program progresses and more data becomes available.
###
Report
Last edited on Wed Sep 23rd, 2009 03:09 pm by Bambi
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| Posted: Wed Sep 23rd, 2009 03:03 pm |
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Bambi
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Here is that fact sheet for Hope For Homeowners Program................ Countrywide does not have to participate and has chosen not to participate, probably because of the equity trade and the requirement for them to reduce the principle which angers their investors.
The HOPE for Homeowners program runs until September 20, 2011.
What is the HOPE for Homeowners Program?
This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary. Both lender(s) and borrower(s) must agree to participate.
When does H4H Begin?
The program begins October 1, 2008 and ends September 30, 2011.
Who is eligible?
You should contact your lender to determine eligibility, but you may be eligible if, among other factors:
- The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
- Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.
- You are not able to pay your existing mortgage without help.
- As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
- You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).
Who should I contact?
FHA does not accept loan applications. Borrowers seeking help should contact their lender, another FHA-approved lender, or a housing counselor to apply or learn more about their options.
How much can I borrow?
Your new H4H mortgage will be no more than 90% of the new appraised value of your home with the lender essentially writing down your current mortgage to that amount.
What costs do I have to pay?
Will my new interest rate be lower than my current rate?
The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender.
I currently have a second mortgage. If needed, can I take out a second mortgage under this program?
You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
How can I learn more about the program and start the application process?
- Review the Frequently Asked Questions page at http://www.fha.gov to learn more about the program.
- Contact an FHA-approved lender to apply. You can find a list of lenders at http://www.fha.gov
- Contact a Housing Counselor. A list of Housing Counselors can be found at http://www.fha.gov
Consumer Disclosure
FOIA
Privacy
Web Policies and Important Links
Home
U.S. Department of Housing and Urban Development
451 7th Street S.W., Washington, DC 20410
Telephone: (202) 708-1112 TTY: (202) 708-1455
Find the address of a HUD office near you
Lenders Reluctance to Use “Hope for Homeowners” Program Leads to Changes
A few months ago while testifying before Congress, lenders praised the government's foreclosure prevention program but indicated that they preferred to use their own modification programs. As part of the housing rescue bill passed by Congress in July (not to be confused with the bailout bill passed in October), homeowners in trouble have been able to refinance their mortgages with the backing of the Federal Housing Authority (FHA) starting October 1st.
However, after 8 weeks fewer than 100 applications have been made for the Hope for Homeowners program. A main reason lender's are not enthusiastic is that the program calls for them to reduce loan balances to 90% of a home's current market value. In addition, the lender has to pay an upfront mortgage insurance fee of 3% of the loan balance to the FHA.
A Senior Vice President for JP Morgan Chase Home Lending, testified about the drawbacks of Hope for Homeowners. "Under the Program, [investors in the loans] will take a loss when the principal balance is written down," she testified, adding that they won't have a chance to make up that loss if home prices recover. Sheehan added that Chase can help many borrowers' by reducing their interest rates, thereby making their monthly payments more affordable.
Other lenders such as Bank of America, Wells Fargo and IndyMac (which was taken over by the FDIC in July) agreed and stated that they prefer to use the FHA program as just one of several options. When directly asked whether the program would be considered a last resort, all the members of the panel agreed that it would be.
The bank executives said that their responsibility to maximize profits for the investors would probably limit the number of cases in which the Hope for Homeowners program would be used. All of the lenders also stressed that their efforts with loan modification programs and the increasing number of workouts that they have been doing.
Because of this disappointing response, the US Housing and Urban Development Secretary Preston announced that major changes were being made to help more home borrowers. The major change is increasing the loan to value to 96.5% from the previous 90% for some situations. This means that lenders will not have to write down the balances as much and make them more likely to participate in the program. Other changes include changing the way 2nd mortgage holders are paid off, making the process simpler and again increasing the chances that lenders will assist home owners.
Together, these changes will hopefully help more homeowners avoid foreclosure and offer another solution if a loan modification alone will not work. Despite these relaxed terms, the FHA will still use the same standards to ensure that home owners will have enough income and the ability to repay the loans. Although its mission is to help provide affordable financing, the FHA needs to make sure that it does so in a responsible way that is sustainable.
______________________________________________________
WHAT ARE THE BENEFITS OF HOPE?
The benefits of participating in HOPE for Homeowners include;
Keeping your home
- Getting a 30-year fixed-rate mortgage (extendable to 40 years in some cases)
- Lower monthly mortgage payments which do not change
The 30-year loan is extendable in some situations. Extending the terms to 40 years is helpful in cases where the homeowner has a large amount of debt; the 40-year term reduces mortgage payments further. There are requirements and restrictions on these extended loans. Check with your lender to see if you qualify for the 40-year loan terms under the HOPE program.
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