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 10th, 2009 Dennis Norman
Not surprisingly, builders in St. Louis (those that have managed to survive thus far) are not racing out to build homes. According to the latest data reported by the Home Builders Association of St. Louis, there were 228 permits issued in October for new homes in the St. Louis metro area (St. Louis City and the Counties of St. Louis, Jefferson, St. Charles, Franklin, Lincoln and Warren) down almost 19 percent from September when there were 281 permits issued.
Year-to-date, through October 31, 2009, there have been 2,321 permits issued for new homes in the 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 →
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 →
By Dennis Norman, on November 30th, 2009 Dennis Norman
Fannie Mae just announced their new “First Look” initiative which is aimed at supporting neighborhood stabilization and promoting home purchases by owner occupants by providing owner occupants an advantage in purchasing Fannie-Mae-owned foreclosed properties.
Under the First Look program only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed. Continue Reading →
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 →
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 *
Continue Reading →
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 →
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.
Continue Reading →
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 →
By Dennis Norman, on November 23rd, 2009 Dennis Norman
National Association of REALTORS released a report today saying US Home Sales in October increased 10.1 percent for the month and are 23.5 percent higher than a year ago; I did an analysis of the data based just on ACTUAL sales and came up with an increase for the month of 6.6 percent and an increase of less than 1 percent from a year ago…When looking at the Actual sales number for US home sales, the St Louis market is performing pretty close…(to see my complete post and analysis of the NAR report click here)
Here Continue Reading →
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 →
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 →
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 →
By Dennis Norman, on November 19th, 2009 Dennis Norman
According to a report issued by First American CoreLogic national home prices continue to decline with their HPI (Loan Performance Home Price Index) declining by 9.8 percent in September 2009 compared with the year before. If you take the distressed sales out (foreclosures, short sales, etc) the nation decline in HIP for the same period was 6.2 percent.
St. Louis home prices did better according to the report with the HPI declining 3.85 percent in Sepetember 2009 from the year before. This is an improvement over August which was down 4.09 percent from the year before. Continue Reading →
By Dennis Norman, on November 19th, 2009
Even with a decline in the Midwest in new home starts and completions, new home construction activity is still outpacing new home sales potentially leading to inventories increasing again.
The US Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for October 2009 showing a decrease in new home construction activity in the Midwest from September.
The report shows the following for the Midwest Region:
Continue Reading →
By Dennis Norman, on November 18th, 2009 Dennis Norman
Home sales in the St.Louis area through October 31st are down 4.8 percent from the same period a year ago, however this is a decrease of almost 40 percent from the month before when sales were down 7.9 percent from the same period the year before. St. Louis area median home prices for the period are down 6.5 percent from a year before however this is also an improvement from the 7.1 percent decrease for the month before. The average time it takes to sell a home in the St. Louis area is 2.2 percent less Continue Reading →
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 *
Continue Reading →
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.
Continue Reading →
By Dennis Norman, on November 13th, 2009 Dennis Norman
I can remember a time, not that long ago, where about the last thing people were concerned about was the value of their home going down. After all, for decades, our homes proved to be safe investments….no, we weren’t going to see their values shoot up 50 percent in one month like some hot tech stocks of the past, but nor were we going to see them drop by the same amount in a month. Nationally home values increased about 5 percent a year, year after year. That was until around the end of 2007 when Continue Reading →
By Dennis Norman, on November 12th, 2009 The Justice Department announced it has filed a lawsuit today in federal court for the Eastern District of Missouri alleging a pattern or practice of violations of the Fair Housing Act by the owner and managers of Forum Manor Apartments, a federally-subsidized apartment complex, for refusing to rent to African-Americans and males, refusing to allow tenants to have African-American visitors, sexually harassing female tenants and retaliating against tenants who complained about such discrimination.
Continue Reading →
By Dennis Norman, on November 12th, 2009 Dennis Norman
Monroe and Jefferson County saw sharp increases however.
RealtyTrac® released its Foreclosure Market Reporttmfor October showing that foreclosure filings (default notices, scheduled auctions and bank repossessions) were down 3.3 percent in October from the month before in the US and up 18.86 percent from the year before.
Here in St Louis, overall the picture is much better. For the 16 counties and 1 city included in the RealtyTrac® report for the St Louis metro area foreclosure filings in October were down 29.47 percent from the month before and down 30.39 percent from the year before. Included Continue Reading →
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