http://www.2ModMyLoan.com Stop foreclosure
Easiest Banks to Get a Loan Modification with right now are:
The Loan Modification industry is booming right now. Many of the banks are getting easier to work with.
The lenders saying yes the most are :
Citi, WaMu, Formerly Washington Mutual but now is Chase, Aurora, and Select Portfolio. Those last 2 are loan servicing companies but they have authority to negotiate mortgage loan modifications.
=====Some Lenders That Are Still Difficult:
Bank of America, Wells Fargo, Litton Loan Servicing, Indymac.
=====These Lenders Have Been and Still Are Difficult:
Countrywide, Wachovia, Ocwen, Homeq, and HSBC.
For the last group you may want to use a 3rd party like my company, you would be more likely to get your mortgage loan modified.
If your lender is listed in the 1st 2 groups, you might want to http://www.97DiYLoanModKit.com and use this mortgage modification system first before spending the typical $3000. It's basically like Loan Modifications for Dummies, please don't be offended. It has forms, worksheets, scripts and video step by step instructions, making the loan modification simple, if you have a cooperating lender.
Tuesday, July 14, 2009
Thursday, February 5, 2009
Thursday, January 29, 2009
New Stimulus Package, Why Are Rates Increasing?
January 29th, 2009 For help with your mortgage visit www.2ModMyLoan.com
The US Post office is requesting that they no longer delivery mail on Saturday's as a way to save money. Makes sense to me - think of the money they could save if they made us all pick it up at the post office every day. With all of these lay-offs (Kodak is shedding 3,000 jobs), closings (Starbucks is shutting down another 300 outlets, leaving ex-mortgage bankers with no choice but to drive farther for a latte), showing that the economy is bad, why aren't mortgage and Treasury rates lower? Simple - the government needs to issue more debt to pay for a rescue. And in order for all of this supply to attract investors, yields have moved higher. Remember Econ 101.
Citing data from LPS Applied Analytics, a mortgage-data research firm, the Wall Street Journal reports that about 6.9% of prime, jumbo loans were at least 90 days delinquent in December, up from 2.6% in the year earlier period. Delinquencies of non-jumbo prime loans that qualify for government backing increased to 2.1% from 0.8%. Defaults on jumbo mortgages tend to result in outsized losses for lenders given that expensive homes are much more difficult to sell when the real-estate market sours. According to the article, three lenders accounted for nearly half of all jumbo loans made in the first nine months of 2008. The top two originators, Chase and WaMu, made more than 25% of all jumbo loans. In addition, BofA and Wells Fargo each accounted for 11% of the jumbo market.
Speaking of Wells Fargo, their Wholesale Lending group will require two new requirements for FHA and VA transactions: a minimum loan score of 620 is required, regardless of any automated underwriting system (AUS) decision, and a payment history for FHA streamline refinances and VA interest rate reduction refi loans. (No 30-day or greater mortgage lates in the most recent 12 months will be allowed for FHA Streamline Refinances and VA IRRRLs.)
Rates moved higher yesterday, in spite of the House passing the Stimulus Bill (with no Republican support, for those of you playing along at home, as they believe the bill includes too much spending and not enough tax cuts). Things were relatively stable, even with the stock market rallying on financial stocks' improvement, until the Fed's announcement. As expected, they are leaving overnight rates alone. But bond market investors were disappointed that the policy statement did not include an immediate intent to begin purchasing government bonds - they have an "inclination" to do so.
Today does not look rosy either. We have a $30 billion 5-year note auction by the Treasury, with the market still swallowing $40 billion of 2-yr notes. We already saw Jobless Claims rise 3,000 last week, up to 588,000, with the moving average increasing to 542,500 from 518,250 the week before. Durable Good orders fell for the 5th month in a row, and dropped 2.6% in December following a November revised decline of 3.7%. Later we can look forward to New Home Sales, expected down slightly. In spite of being "over sold", prices have moved down more, and rates higher, mostly due to the auction ahead of us. As I type this the 10-yr is at 2.70% and 30-yr mortgage prices are about .250 worse in price.
The US Post office is requesting that they no longer delivery mail on Saturday's as a way to save money. Makes sense to me - think of the money they could save if they made us all pick it up at the post office every day. With all of these lay-offs (Kodak is shedding 3,000 jobs), closings (Starbucks is shutting down another 300 outlets, leaving ex-mortgage bankers with no choice but to drive farther for a latte), showing that the economy is bad, why aren't mortgage and Treasury rates lower? Simple - the government needs to issue more debt to pay for a rescue. And in order for all of this supply to attract investors, yields have moved higher. Remember Econ 101.
Citing data from LPS Applied Analytics, a mortgage-data research firm, the Wall Street Journal reports that about 6.9% of prime, jumbo loans were at least 90 days delinquent in December, up from 2.6% in the year earlier period. Delinquencies of non-jumbo prime loans that qualify for government backing increased to 2.1% from 0.8%. Defaults on jumbo mortgages tend to result in outsized losses for lenders given that expensive homes are much more difficult to sell when the real-estate market sours. According to the article, three lenders accounted for nearly half of all jumbo loans made in the first nine months of 2008. The top two originators, Chase and WaMu, made more than 25% of all jumbo loans. In addition, BofA and Wells Fargo each accounted for 11% of the jumbo market.
Speaking of Wells Fargo, their Wholesale Lending group will require two new requirements for FHA and VA transactions: a minimum loan score of 620 is required, regardless of any automated underwriting system (AUS) decision, and a payment history for FHA streamline refinances and VA interest rate reduction refi loans. (No 30-day or greater mortgage lates in the most recent 12 months will be allowed for FHA Streamline Refinances and VA IRRRLs.)
Rates moved higher yesterday, in spite of the House passing the Stimulus Bill (with no Republican support, for those of you playing along at home, as they believe the bill includes too much spending and not enough tax cuts). Things were relatively stable, even with the stock market rallying on financial stocks' improvement, until the Fed's announcement. As expected, they are leaving overnight rates alone. But bond market investors were disappointed that the policy statement did not include an immediate intent to begin purchasing government bonds - they have an "inclination" to do so.
Today does not look rosy either. We have a $30 billion 5-year note auction by the Treasury, with the market still swallowing $40 billion of 2-yr notes. We already saw Jobless Claims rise 3,000 last week, up to 588,000, with the moving average increasing to 542,500 from 518,250 the week before. Durable Good orders fell for the 5th month in a row, and dropped 2.6% in December following a November revised decline of 3.7%. Later we can look forward to New Home Sales, expected down slightly. In spite of being "over sold", prices have moved down more, and rates higher, mostly due to the auction ahead of us. As I type this the 10-yr is at 2.70% and 30-yr mortgage prices are about .250 worse in price.
Tuesday, January 27, 2009
First Federal of California is the latest lender to close their wholesale channel to brokers. I imagine the following announcement prompted yet another round of rumors and calls to the remaining wholesalers like Wells, SunTrust, Flagstar, etc.: "First Fed has closed its Wholesale Residential Lending Division effective today, January 26, 2009. Files received today, January 26, 2009, will be returned un-processed. Files that have not been previously approved (in suspense) as of January 26, 2009 will be declined. All files that are approved and in the funding process must be funded by February 27, 2009, and only files that satisfy all of the Bank's conditions by such date will be funded. Any fees previously collected on a file that has not been approved will be returned within 30 days." Another one bites the dust I can help you refinance to the lowest rates of the past 25 years contact me at www.2ModMyLoan.com enter your info their and I will contact you, or just call me Tish Washington 626-945-5987
Franklin American, reflecting the market, adjusted their FHA guidelines. "Effective for locks on or after Wednesday, January 28, 2009, all loans must meet the new guidelines as stated below. Loans meeting previous guidelines must be purchased by Tuesday, March 31, 2009. Minimum Credit Score All FHA and VA loans must have a minimum 600 credit score, regardless of any AUS decision or approval status. This requirement will not affect FHA non-credit qualifying streamline refinances and VA IRRRL's or any loan classified as an FHA Jumbo (FHA Jumbos require higher credit score requirements). Mortgage Payment History-FHA Streamlines and VA IRRRL's. All FHA streamline refinances and VA IRRRL's require the borrower to not have had any late payment on any mortgage account during the last 12 months. Late payments are defined as any 30-day or greater mortgage late."
Are we having fun yet?
"Fannie 4.5's are trading above 101." What does that mean for a broker? Apparently not much, since investors are all offering rates in the mid-to-high 5's. If the MBS market is pricing 4.5% securities, which typically include 30-yr mortgages from 4.75-5.125%, at one point back, plus the value of the servicing, why aren't mortgage brokers seeing that price from investors? Well, the next time you go into a retail bank branch of Wells, or Citi, or Chase, I imagine that you'll see those rates...
Wells Fargo, with their stock down dramatically in recent weeks, will extend its mortgage modification program to customers of Wachovia. 478,000 Wachovia customers, with loans totaling about $120 billion, will have access to the program, and the customers within this portfolio that are being referred to foreclosure or are in foreclosure will receive an extension until Feb. 28 so they can apply for the modification program which includes the goal of reducing mortgage payments to about 38 percent of the size of a customer's income.
If you need assistance with a Mortgage Loan Modification go here www.2ModMyLoan.com
Ah, back to the market. Yesterday we had some interesting economic news. The Conference Board's Leading Economic Index rose .3%, which is the first gain in six months. Four of the 10 indicators the report were positive, unfortunately led by a 0.99 percent increase in the money supply adjusted for inflation, which is due to increased lending and purchases of securities by the Federal Reserve to unclog credit markets and ease borrowing costs. We also had Existing Home Sales unexpectedly rise 6.5% in December, mostly attributed to prices being down and a brisk market in foreclosures.
What is weighing prices down, and keeping rates relatively high given the current state of the economy, is the supply coming on to the market. On top of the $2-3 billion or so of daily mortgage origination, we have a record $40 billion 2-yr note auction today and a record 5-yr note auction Thursday. There are always worries about who will soak up the supply, and the holiday in Asia tends to add to this consternation. The Fed's meeting today and tomorrow is expected to result in no change to their 0-.25% overnight rates, but analysts will be watching for any change to their language in the post-meeting wrap up. They are exploring the purchase of longer-dated Treasury securities in an effort to push up their price and bring down their yield in order to reduce long-term borrowing costs at a time when the Fed can't lower short-term interest rates any further because they are effectively at zero. Speaking of rates, the 10-yr is at 2.63% and mortgages are roughly unchanged.
Franklin American, reflecting the market, adjusted their FHA guidelines. "Effective for locks on or after Wednesday, January 28, 2009, all loans must meet the new guidelines as stated below. Loans meeting previous guidelines must be purchased by Tuesday, March 31, 2009. Minimum Credit Score All FHA and VA loans must have a minimum 600 credit score, regardless of any AUS decision or approval status. This requirement will not affect FHA non-credit qualifying streamline refinances and VA IRRRL's or any loan classified as an FHA Jumbo (FHA Jumbos require higher credit score requirements). Mortgage Payment History-FHA Streamlines and VA IRRRL's. All FHA streamline refinances and VA IRRRL's require the borrower to not have had any late payment on any mortgage account during the last 12 months. Late payments are defined as any 30-day or greater mortgage late."
Are we having fun yet?
"Fannie 4.5's are trading above 101." What does that mean for a broker? Apparently not much, since investors are all offering rates in the mid-to-high 5's. If the MBS market is pricing 4.5% securities, which typically include 30-yr mortgages from 4.75-5.125%, at one point back, plus the value of the servicing, why aren't mortgage brokers seeing that price from investors? Well, the next time you go into a retail bank branch of Wells, or Citi, or Chase, I imagine that you'll see those rates...
Wells Fargo, with their stock down dramatically in recent weeks, will extend its mortgage modification program to customers of Wachovia. 478,000 Wachovia customers, with loans totaling about $120 billion, will have access to the program, and the customers within this portfolio that are being referred to foreclosure or are in foreclosure will receive an extension until Feb. 28 so they can apply for the modification program which includes the goal of reducing mortgage payments to about 38 percent of the size of a customer's income.
If you need assistance with a Mortgage Loan Modification go here www.2ModMyLoan.com
Ah, back to the market. Yesterday we had some interesting economic news. The Conference Board's Leading Economic Index rose .3%, which is the first gain in six months. Four of the 10 indicators the report were positive, unfortunately led by a 0.99 percent increase in the money supply adjusted for inflation, which is due to increased lending and purchases of securities by the Federal Reserve to unclog credit markets and ease borrowing costs. We also had Existing Home Sales unexpectedly rise 6.5% in December, mostly attributed to prices being down and a brisk market in foreclosures.
What is weighing prices down, and keeping rates relatively high given the current state of the economy, is the supply coming on to the market. On top of the $2-3 billion or so of daily mortgage origination, we have a record $40 billion 2-yr note auction today and a record 5-yr note auction Thursday. There are always worries about who will soak up the supply, and the holiday in Asia tends to add to this consternation. The Fed's meeting today and tomorrow is expected to result in no change to their 0-.25% overnight rates, but analysts will be watching for any change to their language in the post-meeting wrap up. They are exploring the purchase of longer-dated Treasury securities in an effort to push up their price and bring down their yield in order to reduce long-term borrowing costs at a time when the Fed can't lower short-term interest rates any further because they are effectively at zero. Speaking of rates, the 10-yr is at 2.63% and mortgages are roughly unchanged.
Monday, January 26, 2009
Mortgage Update for Monday January 26th, 2009
Fannie Mae, now the largest foreclosure prevention company in the world, laid off several hundred employees in technology, administration, communications, and their single family unit. They do, however, plan to hire a similar number of people in the Dallas area, where the company bases its anti-foreclosure unit. Overall, the total number of Fannie employees should remain the same in 2009 as in 2008, at just over 5,500.
We do have a FOMC (Federal Open Market Committee) tomorrow and Wednesday, but how much lower can overnight rates go? Most believe that much of the meeting will be spent reviewing these programs, their effectiveness and challenges the Fed will face in running them and one day unwinding them. Aside from the Fed meeting, rates have a fair amount of news to digest. Today we have Existing Home Sales and Leading Economic Indicators. Tomorrow we have Durable Goods and Consumer Confidence. Nothing on Wednesday, then on Thursday we have Jobless Claims and New Home Sales, followed by Friday's GDP number, Chicago Purchasing Manager Survey, and Michigan Sentiment Index, and the Employment Cost Index. Rates have crept up, with the 10-yr at 2.64% and mortgages worse by about .125 in price
We do have a FOMC (Federal Open Market Committee) tomorrow and Wednesday, but how much lower can overnight rates go? Most believe that much of the meeting will be spent reviewing these programs, their effectiveness and challenges the Fed will face in running them and one day unwinding them. Aside from the Fed meeting, rates have a fair amount of news to digest. Today we have Existing Home Sales and Leading Economic Indicators. Tomorrow we have Durable Goods and Consumer Confidence. Nothing on Wednesday, then on Thursday we have Jobless Claims and New Home Sales, followed by Friday's GDP number, Chicago Purchasing Manager Survey, and Michigan Sentiment Index, and the Employment Cost Index. Rates have crept up, with the 10-yr at 2.64% and mortgages worse by about .125 in price
The mortgage industry is changing daily. Rates go up and rates go down and that is just in one day. So visit my blog daily around 10 am California time and read the latests updates that affect your mortgage rates, and terms.
The latest technique to make the best of these trying mortgage times is the Loan Modification. Once used only as a last resort to prevent foreclosure, 80% of all current homeowners presently qualify for a Mortgage Loan Modification. Visit www.2ModMyLoan.com to see if you qualify.
You may have questions. Visit my Youtube Channel for video responses to frequently asked questions. If you have a question that is not addressed there feel free to leave a comment on a video asking me a question.
The latest technique to make the best of these trying mortgage times is the Loan Modification. Once used only as a last resort to prevent foreclosure, 80% of all current homeowners presently qualify for a Mortgage Loan Modification. Visit www.2ModMyLoan.com to see if you qualify.
You may have questions. Visit my Youtube Channel for video responses to frequently asked questions. If you have a question that is not addressed there feel free to leave a comment on a video asking me a question.
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