By Dennis Norman, on February 8th, 2010 Dennis Norman
Fannie Mae is offering 3.5 percent in closing cost assistance or an equivalaent amount in appliances for people purchasing a Fannie Mae-owned HomePath® property.
Fannie Mae is trying to entice buyers to buy one of their HomePath® homes by offering to pay up to 3.5 percent in closing cost assistance or an equal amount toward new appliances for owner-occupants who close on the purchase of a property listed on HomePath.com before May 1, 2010. First-time homebuyers, and some long-term homeowners, will also be eligible for the Homebuyer Tax Credit.
Properties eligible for this incentive are listed Continue Reading →
By Dennis Norman, on February 5th, 2010 Dennis Norman
In spite of what is being said in the press about the real estate market improving and the effectiveness of the government’s programs to help keep people in their homes, the rate of foreclosure just keeps increasing.
A report released today by First American CoreLogic showed the St. Louis metro area to have a foreclosure rate of 1.43 percent up slightly from November’s rate of 1.35 percent and an increase of 66.67 percent from the year prior when the rate was 0.87 percent.
The national foreclosure rate for December was again over double the rate Continue Reading →
By Dennis Norman, on February 4th, 2010 Dennis Norman
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government’s Home Affordable Modification Program (HAMP).
Bank of America has systems in place to begin implementing the Second Lien Modification Program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. 2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of a HAMP modification on the first Continue Reading →
By Robert Fishel, on February 3rd, 2010
FHA loans gained in popularity for borrowers as applications for FHA-guaranteed mortgages exceeded an annual rate of 3 million in October; nearly triple the level in 2007. In 2006, when subprime and other Wall Street programs were at full speed, the annual rate for applications was less than 600,000.
As a result the Federal Housing Administration (FHA) Commissioner David Stevens recently announced a set of policy changes to strengthen the FHA’s capital reserves. The changes announced are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk Continue Reading →
By Dennis Norman, on January 28th, 2010 Dennis Norman
This week the Treasury Department issed a report which included stats on the Home Affordable Modification Program (HAMP) which is part of the Obama administrations’ Making Home Affordable Program and “is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments”. The HAMP program got underway around March of this year and is set to expire December 31, 2012. According to the government website HAMP is intended to help keep “3 to 4 million Americans in their homes by preventing avoidable foreclosures.”
Permanent modifications triple in December from November:
According to the Continue Reading →
By Robert Fishel, on January 27th, 2010 The mortgage market will be besieged this week by a wave of worry…demand concerns related to Treasury auctions to the question about what happens if Fed Chairman Bernanke is not confirmed for another term… uncertainty seldom pushes rates lower.
St. Louis Mortgage Rates – January 27, 2009 *
30-year fixed-rate mortgage 5.00% no points 15-year fixed-rate mortgage 4.375% no points 5/1 adjustable rate mortgage 3.875% no points 3/1 adjustable rate mortgage 3.750% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, Continue Reading →
By Dennis Norman, on January 26th, 2010 Dennis Norman
For the St. Louis area 2009 marked another year of “bad” records for the housing market; record numbers of foreclosures, mortgage delinquencies as well as sales numbers and prices lower than we have seen in several years. However, as I compiled St. Louis area home sales data for 2009 and compared it to the prior two years I realized this is some positive news. It appears we are perhaps seeing the bottom of the market and a flattening of the downward trends.
Unfortunately as our national debt balloons out of control, we continue to see double-digit Continue Reading →
By Dennis Norman, on January 22nd, 2010 Dennis Norman
FHA Announces Policy Changes to Address Risk and Strengthen Finances
This week FHA announced policy changes that are going to help them shore up their finances but will make it more difficult and/or costly for your clients to purchase a home.
The FHA policy changes include: Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending The upfront mortgage insurance fee to the borrower will be increased to 2.25% from 1.75%. This will go into effect this spring. Update the combination of FICO scores and down payments for new Continue Reading →
By Dennis Norman, on January 18th, 2010 Dennis Norman
MortgageDaily.Com tracks mortgage company failures on it’s website The Mortgage Graveyard. According to The Mortgage Graveyard 225 mortgage-related firms in the U.S. ended operations or failed in 2009, higher than any year since they began tracking data in 1998. This was an increase of over 80% from 2008 which saw 124 firms fail.
The annual surge was fueled by a spike in bank failures — which increased more than 400 percent. Banks account for most of the country’s residential originations. Credit union failures, including corporate and state-regulated institutions, were up by more than a third.
Here in Continue Reading →
By Dennis Norman, on January 15th, 2010 Dennis Norman
If you are one of the million-plus homebuyers that was fortunate enough to qualify for the Home Buyer tax credit, read on for information on how to claim your credit.
Today the Internal Revenue Service released a new form that eligible homebuyers must need to use to claim the first-time homebuyer credit this tax season, along with instructions and guidelines for other documentation that must accompany your tax return.
The new form and instructions follow major changes in November to the homebuyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law Continue Reading →
By Dennis Norman, on January 14th, 2010 Dennis Norman
I would say it’s say to say that the Obama administrations efforts to curtail the foreclosure rate is not working as the foreclosure rate in St. Louis increased again in November according to a report released today by First American CoreLogic.The report showed the St. Louis metro area to have a foreclosure rate of 1.35 percent in November, up just slightly from October’s rate of 1.31 percent and increase of 68.75 percent from a year ago when the rate was 0.80percent.
The national foreclosure rate for November was again over double the rate of St. Continue Reading →
By Dennis Norman, on January 13th, 2010 St. Louis mortgage rates this week remain unchanged on fixed rate loans this week but dropped slightly on ARM’s according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – January 13, 2009 *
30-year fixed-rate mortgage 5.125% no points 15-year fixed-rate mortgage 5.00% no points 3/1 adjustable rate mortgage 3.875% no points 5/1 adjustable rate mortgage 4.000% no points
For more information or if you have questions on mortgage rates in St. Louis you may Continue Reading →
By Dennis Norman, on January 11th, 2010 Dennis Norman
Depending on which estimate you believe, somewhere between one-third and one-half of the homeowners with a mortgage in the U.S. owe more on their homes than their homes are currently worth. This has lead to an unprecedented amount of short-sales and in many cases, a lender “forgiving” you of the short-fall (the amount of your loan your sale proceeds were not adequate to pay) which, in the past could have left you owing taxes on the “forgiven debt”.
For some of those underwater homeowners that are not fortunate enough to do a short sale they may Continue Reading →
By Dennis Norman, on January 7th, 2010 St. Louis mortgage rates this week bounced around a bit with 30 year fixed rate mortgages and ARM’s decreasing slightly while 15 year fixed rate mortgage rates increased according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – January 6, 2009 *
30-year fixed-rate mortgage 5.125% no points 15-year fixed-rate mortgage 5.00% no points 3/1 adjustable rate mortgage 4.00% no points 5/1 adjustable rate mortgage 4.125% no points
For more information or if you have Continue Reading →
By Dennis Norman, on January 6th, 2010 Dennis Norman
In the past I think closing costs associated with the purchase of a home were pretty much a mystery to many, if not most, home buyers with many not even being sure what they were paying for. Most buyers simply went through the process, paying for closing fees, notary fees, title examination, title insurance, survey, flood letters, courier fees, recording fees, etc. without ever realizing that these fees and costs may vary with other vendors.
January 1st changes went into effect in the RESPA (Real Estate Settlement Procedures Act) which will require lenders to fully disclose all Continue Reading →
By Dennis Norman, on December 30th, 2009 St. Louis mortgage rates inreased again this week bringing 30 year rates above 5 percent according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 30, 2009 *
30-year fixed-rate mortgage 5.25% no points 15-year fixed-rate mortgage 4.75% no points 3/1 adjustable rate mortgage 4.25% no points 5/1 adjustable rate mortgage 4.50% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact John Frank by Continue Reading →
By Dennis Norman, on December 28th, 2009 Dennis Norman
In a just a few days we will say goodbye to 2009; a year that has been brutal to the housing market. So as the new year comes in, what will 2010 hold in store for the housing market?
To answer this question I turned to the housing forecast just released by Fannie Mae to see what their economists were predicting. Here are the highlights from the report, showing actual numbers for the 3rd quarter of this year as well as Fannie Mae’s projection for 4th quarter of this year as well as 4th quarter of 2010:
Continue Reading →
By Dennis Norman, on December 22nd, 2009 According to NAR 51 percent of recent homebuyers are first-time buyers and 39 percent of recent home sales have relied on an FHA loan
Dennis Norman
The National Association of REALTORS just released a report showing that 51 percent of the homes sold recently have been to first-time home buyers and that 39 percent of all recent buyers have turned to an FHA loan for financing for their home purchase.
I think this clearly illustrates that the first-time home buyer tax credit, coupled with record low interest rates and drastically reduced home prices, is giving buyers, at least Continue Reading →
By Dennis Norman, on December 21st, 2009 Dennis Norman
Foreclosure rates in St. Louis increased for the month of October over the same period last year according to a report released by First American CoreLogic. The report showed the St. Louis metro area to have a foreclosure rate of 1.31 percent in October, up just slightly from September’s rate of 1.25 percent, but up 61.7 percent from a year ago when the rate was 0.81 percent.
The national foreclosure rate for October was over double the rate of St. Louis at 3.02 percent and was an increase of 77.6 percent from a year ago Continue Reading →
By Dennis Norman, on December 17th, 2009 Dennis Norman
Last week I did a post about the Obama Administrations’ Home Affordable Modification Program (HAMP) and showed how it really has not been effective in helping keep families in their homes and avoid foreclosure as was the intention by the administration. When my kids tell me they don’t like the way I want them to do something I usually challenge them with “if you don’t like my way, tell me a better way to do it“. So with this in mind I went looking for an answer to this question.
In my search I ran accross a Continue Reading →
By Dennis Norman, on December 15th, 2009 St. Louis mortgage rates inched up slightly this week but remained at near record-lows according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 15, 2009 *
30-year fixed-rate mortgage 5.00% no points 15-year fixed-rate mortgage 4.75% no points 3/1 adjustable rate mortgage 3.75% no points 5/1 adjustable rate mortgage 3.875% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact John Frank by phone Continue Reading →
By Ted Gayer, on December 14th, 2009
Ted Gayer, co-director of Economic Studies, Brookings Institute
According to this article, the Joint Committee on Taxation (JCT) has scored a Senate homebuyer tax credit at $16.7 billion. How does the JCT $16.7 billion cost estimate square with my previous back-of-the-envelope calculation of the cost of the tax credit of $73.9 billion?
For my calculation, I assumed a tax credit of $15,000, available for one year. The Senate proposal scored by JCT is for an $8,000 tax credit. I also assumed the tax credit would be available for one year, whereas the Senate proposal scored by JCT Continue Reading →
By News Desk, on December 12th, 2009 Department of Justice Press Release
Scam Involved Lawyers, Mortgage Brokers, and More Than $14.6 Million in Loans
PHILADELPHIA—A 15-count indictment was filed today against five defendants charged in a $14.6 million mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans, announced United States Attorney Michael L. Levy, Special Agent-in-Charge of the FBI Janice K. Fedarcyk, and Pennsylvania Secretary of Banking Steven Kaplan. Charged are Edward G. McCusker and John Alford Bariana, owners of Axxium Mortgage, Inc., McCusker’s wife, Jacqueline, and Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, Continue Reading →
By Dennis Norman, on December 11th, 2009 Dennis Norman
This week the Treasury Department issed a report which included stats on the Home Affordable Modification Program (HAMP) which is part of the Obama administrations’ Making Home Affordable Program and “is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments”. The HAMP program got underway around March of this year and is set to expire December 31, 2012. According to the government website HAMP is intended to help keep “3 to 4 million Americans in their homes by preventing avoidable foreclosures.”
So is the Loan Modification plan working?
To try to Continue Reading →
By Dennis Norman, on December 9th, 2009 St. Louis mortgage rates remained at near record-lows this week, with only the 30 year fixed rate mortgage rates increasing slightly, according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 9, 2009 *
30-year fixed-rate mortgage 4.875% no points 15-year fixed-rate mortgage 4.375% no points 3/1 adjustable rate mortgage 3.625% no points 5/1 adjustable rate mortgage 3.875% no points
For more information or if you have questions on mortgage rates in St. Louis Continue Reading →
By Dennis Norman, on December 8th, 2009 Dennis Norman
Laurie Goodman, the Senior Managing Director at Amherst Securities, testified today before the House Financial Services Committee hearing on “The Private Sector and Government Response to the Mortgage Foreclosure Crisis“. Amherst Securities specializes in the trading of residential mortgage backed securities and charges Goodman with keeping them and their customers abreast of trends in the market.
Today, in her testimony, Goodman told the committee she hoped to make two primary points in her testimony: “The housing market is fundamentally in very bad shape. The single largest problem is negative equity.” “The current modication program does not address Continue Reading →
By Dennis Norman, on December 7th, 2009 Dennis Norman
For the first year or so of the real estate slump, it appeared to just be concentrated in the residential market, specifically homes and condos. However, over the past few months the attention has shifted more and more to the commerical and multi-family markets as well as the economy remains weak.
The Mortgage Bankers Association released their Third Quarter 2009 Commercial and Multifamily Mortgage Delinquency Report showing that delinquency rates on loans in this sector continued to increase. Continue Reading →
By Dennis Norman, on December 4th, 2009 Dennis Norman
Last week the Treasury Department announced the Home Affordable Foreclosure Alternatives Program (HAFA), the latest program under the Home Affordable Modification Program (HAMP), designed to offer alternatives to homeowners facing foreclosure.
THE HAFA PROGRAM:
The Home Affordable Foreclosure Alternatives Program provides financial incentives to loan servicers as well as borrowers who do a short-sale or a deed-in-lieu to avoid foreclosure on an eligible loan under HAMP. Both of these foreclosure alternatives help the lender out by avoiding the
Continue Reading →
By Dennis Norman, on December 2nd, 2009 St. Louis mortgage rates remained at near record-lows this week according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 2, 2009 *
Continue Reading →
By Dennis Norman, on December 1st, 2009 Lawrence Yun, Chief Economist, NAR
Is the increase real or have the tax-credits created an “artificial” market that cannot be sustained?
Today the National Association of REALTORS(R) issued their Pending Home Sales Index Report for October showing pending sales in the U.S. rose again for the ninth consecutive month – marking the longest streak since since NAR began the pending home sale index in 2001.
As I have expressed previously, I’m somewhat cautious about getting too excited about these recent encouraging reports on the housing market as I feel we still have many challenges out there.
Continue Reading →
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