Mortgage and Finance - St Louis Real Estate News

St. Louis Real Estate News – St Louis mortgage rates stay pretty much the same this week

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 →

Obama administrations loan modification program ‘destined to fail’

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 →

Commercial and multi-family properties mortgage delinquencies on the rise

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 →

Home Affordable Foreclosure Alternatives Program (HAFA) Launched

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

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St. Louis Real Estate News – St Louis mortgage rates unchanged this week

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 *

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Pending home sales rise for ninth consecutive month

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 →

Helpful homebuyer tax credit video from NAHB

By Dennis Norman, on December 1st, 2009

Dennis Norman

I have done several posts on the homebuyer tax credit and received and answered hundreds of questions about the tax credits on the various blogs I write for. There appears to be a lot of demand for the credits by homebuyers but also appears to be many questions. If you have questions about the homebuyer tax credit I would suggest you check out the comments/questions and answers to a post I did at www.RealEstateConsumerNews.com.

In addition, the National Association of Home Builders has just updated their informative video on the newly extended and expanded tax credit Continue Reading →

The Cost of Not Walking Away From An Underwater Mortgage

By Debi Averett, on November 27th, 2009

In the ongoing debate about whether one should walk away from an underwater mortgage or not, one University of Arizona professor speaks out strongly in favor of taking a hike. According to Brent T. White, an associate professor of law at the University of Arizona:

A failure to grasp the true economics of the situation is holding back many Americans whose home values have dropped far below the amount they owe and who would be better off renting, Mr. White says. Fear, shame and guilt also are preventing rational decisions, he believes. And, he says, those “emotional constraints” are encouraged Continue Reading →

St. Louis Real Estate News – St Louis mortgage rates stay low this week

By Dennis Norman, on November 25th, 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 – November 25, 2009 *

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New Home Sales in US through October; UP 5.1 percent OR DOWN 24.1 percent from a year ago, take your pick

By Dennis Norman, on November 25th, 2009

Dennis Norman

This morning the U.S. Department of Commerce released a report showing the sale of New Homes in October were at a seasonally adjusted annual rate of 430,000, a 6.2 percent increase from the revised September rate of 405,000 and is 5.1 percent above a year ago.

My Mantra

As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales. Why, for one I can’t figure out how in the world they compute the numbers. Second, I just don’t think discussing the “rate” of new home sales paints a realistic picture of Continue Reading →

New updated info from IRS on Homebuyer Tax Credit

By News Desk, on November 25th, 2009

First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

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St. Louis Real Estate News: Over 15 percent of St Louis homeowners with a mortgage are underwater

By Dennis Norman, on November 24th, 2009

Dennis Norman

According to a report released today by First American CoreLogic nearly 10.7 million U.S. mortgages, or 23 percent of all mortgaged properties, are in a negative equity position meaning the borrowers owe more on their mortgage than their home is worth as of September 30, 2009.

Here in St. Louis, as of September 30, 2009, there were 87,557 homeowners in St. Louis that were “underwater” on their mortgage, meaning they owe more than their home is worth. This works out to 15.14 percent of the homeowners in St. Louis with a mortgage, Continue Reading →

President of Metropolitan Money Store Sentenced to Over 12 Years in Prison for $37 Million Mortgage Fraud Scheme

By News Desk, on November 21st, 2009

Joy Jackson Personally Responsible for Over $16 Million in Losses to Mortgage Lenders; Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for Her Wedding

U.S. District Judge Roger W. Titus sentenced the president of the Metropolitan Money Store, Joy Jackson, age 41, of Fort Washington, Maryland, today to 151 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney Continue Reading →

Almost 1 in 8 Missourians are delinquent on mortgage payments according to MBA report

By Dennis Norman, on November 20th, 2009

Missouri ranks 21st in delinquencies and 30th in foreclosures

According to a report just issued by the Mortgage Bankers Association, the mortgage delinquency rate on one-to-four-unit residential properties in the U.S. rose to a new record rate of 9.64 percent. Here in Missouri, the delinquency rate is slightly lower at 9.41 percent.

Included in the MBA’s report as a “delinquency” are loans that are at least one payment past due, but does NOT include loans somewhere in the process of foreclosure. At the end of third quarter 2.05 percent of mortgage loans in Missouri were in the foreclosure process. Therefore Continue Reading →

Fannie Mae launches new HomePath Site in Spanish

By Dennis Norman, on November 19th, 2009

New Site Aimed at Helping More Hispanics Buy Homes

FannieMae announced the company launched a Spanish version of its HomePath.com website designed to help more potential homeowners who speak Spanish purchase Fannie Mae-owned properties.

The new website in Spanish mirrors the English version of HomePath.com featuring an interactive search tool of Fannie Mae-owned properties nationwide, details about HomePath® financing, a mortgage payment calculator, property alerts, as well as information on foreclosure prevention and the Making Home AffordableSM program.

Continue Reading →

St. Louis Real Estate News – St Louis mortgage rates drop again this week remaining below 5 percent

By Dennis Norman, on November 17th, 2009

St. Louis mortgage rates dropped this week to almost 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 – November 17, 2009 *

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Mortgage Loan Delinquencies on track to set record in 2009

By Dennis Norman, on November 16th, 2009

Dennis Norman

TransUnion released the results of its analysis of trends in the mortgage industry for the third quarter of 2009 and the associated impact on the U.S. consumer.

Part of this report focused on delinquencies on mortgages and the rate of mortgage delinquency. The report showed that mortgage loan delinquency (the ratio of borrowers 60 or more days past due) increased for the eleventh straight quarter, hitting an all-time national average high of 6.25 percent for the third quarter of 2009, a 7.57 percent increase from the record-setting second quarter rate.

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And now for the other side of the coin on the home-buyer tax credit

By Ted Gayer, on November 11th, 2009

Publishers note: If you have been reading our blog for a while you are probably aware we have been supporters and advocates of the home-buyer tax credit as well as the extension and expansion of the credit, which happened last week. We realize however, there are people that do not support the credits for a variety of reasons. I came across the article below which was written prior to passage of the extension of the credit by Ted Gayer. I think this is a well written piece and does present the “other side of the coin”…Ted agreed to allow us Continue Reading →

St. Louis Real Estate News – St Louis mortgage rates drop this week below 5 percent

By Dennis Norman, on November 10th, 2009

St. Louis mortgage rates dropped this week to almost 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 – November 10, 2009 *

Continue Reading →

St Louis Real Estate News: St. Louis foreclosure rate increases, again

By Dennis Norman, on November 10th, 2009

Dennis Norman

Foreclosure rates in St. Louis increased for the month of September 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 1.26 percent in September, up just slightly from August’s rate of 1.24 percent, but up over 59 percent from a year ago when the rate was 0.79 percent.

The national foreclosure rate for September was over double the rate of St. Louis at 2.93 percent and was an increase of 75 percent from a year Continue Reading →

Fewer home owners are underwater on their homes according to Zillow report

By Dennis Norman, on November 9th, 2009

Dennis Norman

The percent of American home owners with mortgages in a negative equity position fell to 21 percent in the third quarter of this year, down from 23 percent in the second quarter, as home values stabilized in the short term and more underwater homeowners lost their homes to foreclosure, according to the third quarter Zillow Real Estate Market Reports.

Year-over-year home values in the U.S. declined for the 11th consecutive quarter, falling 6.9 percent to a Zillow Home Value Index of $190,400. However, the rate of year-over-year decline shrank for the third quarter in a row, meaning Continue Reading →

Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout Middle District of Florida

By News Desk, on November 8th, 2009

Department of Justice Press Release

TAMPA—United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.

There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and “foreclosure rescue Continue Reading →

New alternative for some homeowners facing foreclosure; Deed for Lease

By Dennis Norman, on November 6th, 2009

Dennis Norman

If you are a homeowner facing losing your home in foreclosure but you do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification, you may have another alternative: The Deed for Lease program announced yesterday by Fannie Mae for homeowners with loans insured by Fannie Mae.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps Continue Reading →

Home buyer tax credit extension update; House Passes Bill…On to President for approval

By Dennis Norman, on November 5th, 2009

Dennis Norman

UPDATE 11/06/09 5:14 p.m. – Thanks to Denis T who was commenting on this post, click here to go to the IRS site with information on the new tax credits.

UPDATE 11/06/09 1:00 p.m. – I just heard that a short while ago President Obama signed the bill into law. IT’S OFFICIAL! So if you are in the market for a home .. Go For It!

Continue Reading →

St. Louis Real Estate News – St Louis mortgage rates drop this week

By Dennis Norman, on November 4th, 2009

St. Louis mortgage rates dropped this week according to St. Louis-based Paramount Mortgage Company.

Low interest rates and the homebuyer tax credit, which is close to getting extended beyond the current expiration date of November 30th, should be tempting to buyers.

St. Louis Mortgage Rates – November 4, 2009 *

Continue Reading →

Home buyer tax credit extension update; Senate Passes Bill

By Dennis Norman, on November 4th, 2009

Dennis Norman

UPDATE 11/05 2:00 pm – The House has passed the bill by a vote of 403 – 12 – It now goes to the President who is expected to sign today or tomorrow.

UPDATE 11/05, 12:35 pm- To read the section of H.R. 3548 that contains the details concerning the first-time home-buyer tax credit click here.

If you care to read the entire bill click here.

UPDATE: At 5:28 p.m. by a vote of 98 to 0 the Senate Passed H.R. 3548 – It now will go to the House where it is expected to pass Continue Reading →

Setting Up the Next Leg Down in Housing

By Charles Hugh Smith, on November 4th, 2009

Loose lending standards in government-backed mortgages is setting up the next wave of defaults and sharp declines in housing prices.

Charles Hugh Smith, Of Two Minds

Beneath the hype that housing has bottomed is an ugly little scenario: lending standards are still loose and the low-down payment, high-risk loans being guaranteed by government agencies are setting up the next giant wave of defaults and foreclosures.

You might have thought that the near-demise of risky-mortgage mills Fannie Mae and Freddie Mac would have cooled the supply of highly leveraged Continue Reading →

Why We’re Walking Away

By Debi Averett, on November 3rd, 2009

I posted yesterday on the Wall Street Journal article Report Sheds Light on Why Homeowners Walk Away. A couple of commenters on the WSJ article said why they were walking away from their mortgage, and I thought their comments were interesting enough to repeat. The first walker says that as a good borrower he is unable to have his loan modified, the second blames bank policies:

The banks (my lender is CITI) are unwilling to modify mortgages for the people able to pay. I suspect if the people underwater, but with money and good credit – you know, responsible people Continue Reading →

Home buyer tax credit update-November 2, 2009

By Dennis Norman, on November 2nd, 2009

Dennis Norman

UPDATED: 6:15 pm Central Time-

The Senate voted 85-2 this afternoon to end debate on the amendment..This is clears a procedural hurdle and will allow the bill and amendment to be voted on by the Senate, most likely on Tuesday or Wednesday….If passed by the Senate it would then need to go back to the House for passage and then on to the President.

Here’s the latest info I have on the possible extension of the home-buyer tax credit:

The Dodd-Lieberman-Isakson Amendment I spoke of in last Friday’s update was added to the unemployment bill Continue Reading →

Pending home sales in midwest rise 8.1 percent in September

By Dennis Norman, on November 2nd, 2009

Lawrence Yun, Chief Economist, NAR

Today the National Association of REALTORS(R) issued their Pending Home Sales Index Report for September showing pending sales in the U.S. rose again for the eighth consecutive month – marking the longest streak since since NAR began the pending home sale index in 2001. The pending home sales index for the US rose 6.1 percent from August. Here in the Midwest the pending home sales index rose 8.1 percent from August marking the third month in a row the index in the Midwest increased.

As I have expressed previously, I’m somewhat cautious about Continue Reading →