By Mike Colpitts The largest U.S. mortgage guarantee company, Mortgage Guaranty Insurance Corporation (MGIC) is being sued by the Justice Department for violating the Fair Housing Act for allegedly discriminating against women on paid maternity leave. The suit was filed in U.S. District Court in the Western District of Pennsylvania against the mortgage insurer and… Continue reading Justice Department Sues Largest U.S. Mortgage Insurer
Category: Loans
Mortgages Dry Up As Interest Rates Drop
Mortgage applications dried-up slightly even as interest rates dropped for the week, according to the Mortgage Bankers Association survey. The composite index, a measure of mortgage loan application volume fell 2.7% on a seasonally adjusted basis as applications fell for the second straight week. Loan applications have been on an up-and-down cycle for more than… Continue reading Mortgages Dry Up As Interest Rates Drop
Interest Rates Steady Four Straight Weeks
Lenders kept mortgage interest rates steady for the fourth week in a row as disappointing news on the economy held bond rates under 3%. The average rate on the bench mark 30-year fixed rate loan was 4.51%, up a single basis point from last week. Signs for an improvement in the U.S. economy were mixed.… Continue reading Interest Rates Steady Four Straight Weeks
HUD Launches Emergency Home Loans
By Mike Colpitts In a move that has been awaited more than a year, the Housing and Urban Development Department launched the Emergency Homeowners Loan Program to help unemployed homeowners at risk of foreclosure in 27 states. The program is slated to help only a small number of troubled homeowners during its life-span. The White… Continue reading HUD Launches Emergency Home Loans
Foreclosure Victims Offered New Credit
By Mike Colpitts Former homeowners who have defaulted on their home mortgages and suffered through foreclosure are increasingly receiving offers of credit to obtain credit cards, auto loans and all sorts of other loans. However, the offers of new credit to the foreclosure victims come with a high price. The offers arrive in the mail… Continue reading Foreclosure Victims Offered New Credit
Interest Rates Hold Steady as New Home Purchases Fall
By Mike Colpitts Restrained by a weak U.S. economy and lower demand for new home purchases, mortgage interest rates held steady after moving just one-basis point last week, according to Freddie Mac. The rate on a 30-year fixed mortgage remained at 4.50%. The fixed 15-year loan narrowly edged up two basis points to 3.69%. New… Continue reading Interest Rates Hold Steady as New Home Purchases Fall
Home Affordability Vital To Ownership
By Kevin Chiu Gone are the days of being over-extended as a result of easy “Liar Loans” with borrowers qualifying for mortgages in today’s housing market at restrictive borrowing standards. Lenders are qualifying mortgage applicants with much lower home affordability ratios and higher credit scores. Millions of homeowners find themselves over extended and unable to… Continue reading Home Affordability Vital To Ownership
Extra Short Sale Losses to Exceed $375 Million
By Mike Colpitts Short sales in which lenders cooperate with homeowners to sell at a price lower than what is owed on a properties mortgage is costing the lending industry an estimated $375 million in additional losses in 2011, according to a study by a leading real estate research firm. The rate of fraudulent short-sale… Continue reading Extra Short Sale Losses to Exceed $375 Million
Freddie Mac Buys Fewer Mortgages
By Mike Colpitts Already on a path to reduce the number of mortgages it buys, Freddie Mac purchased fewer loans in March, reducing its share of the mortgage market as calls to eliminate the government sponsored lender increased in Congress. The number of mortgages Freddie Mac bought in March dropped 4.7% for the month to… Continue reading Freddie Mac Buys Fewer Mortgages
Mortgage Qualifying Standards Tighten
By Kevin Chiu Qualifying for a conventional home mortgage has gotten tougher in the fallout of the financial crisis, but Freddie Mac and Fannie Mae requirements show that obtaining a conventional mortgage has gotten much tougher even before Congress implements changes as part of the Dodd-Frank Financial Reform Act. The average credit score approved for… Continue reading Mortgage Qualifying Standards Tighten