By Dennis Norman, on May 20th, 2010 1st Quarter Delinquencies; Up? Down? He said – She Said…
If you frequent this site, then you may recall that a little over a week ago (May 10th to be exact) I wrote a post that said the delinquency rate for homeowners mortgages had dropped in the first quarter of this year, the first drop since 2006. Now the post title says delinquencies have increased, so what gives?
Well, for one thing, different sources of information. The “good” delinquency report came from TransUnion and they get their data by doing a “random sampling” of their database of 27 million home mortgages, and then determine how borrowers are performing from that sample I assume. Today’s data comes from the Mortgage Bankers Association which, according to their report, pulls their information from 44.3 million loans which represents approximately 85 percent of all the “first-mortgage” loans in the US.
So, assuming my information is correct in terms of methodology, I would say the MBA data paints a much more accurate picture of the market, and in this case a more bleak picture.
Highlights from the MBA Report:
- The delinquency rate for mortgage loans on one-to-four unit residential properties increased to a seasonally adjusted rate of 10.06 percent of all loans outstanding at the end of the first quarter of this year.
- This represents an increase of 6.2 percent in the delinquency rate from the fourth quarter of 2009 and a 10.3 percent increase from a year ago.
- Foreclosure actions were started on 1.23 percent of the outstanding loans in the first quarter of this year.
- This is just a slight increase from the prior quarter when the rate was 1.20 percent but is a decrease of about 1 percent from a year ago.
“Seasonally Adjusted” could be the problem too:
If you ever read anything I write about real estate market stats, then you know I do not like “Seasonally Adjusted” numbers. Well, the MBA’s chief economist, Jay Brinkmann, said “the issue this quarter is that the seasonally adjusted delinquency rates went up while the unadjusted rates went down. Delinquency rates traditionally peak in the fourth quarter and fall in the first quarter and we saw that first quarter drop in the data. The question is whether the drop represents anything more than a normal seasonal decline or a more fundamental improvement. Most importantly, the normal seasonal drop is coming right at the point where we believe delinquencies could potentially be declining and the problem for the statistical models is determining which is which”.
Where we are headed:
We have TransUnion’s data showing an improvement and the MBA, non-seasonally adjusted data showing improvement as well, so perhaps this is an indicator that we are turning the corner? I think the April delinquency rates when they are published will help us see where things are headed.
By Robert Fishel, on May 19th, 2010  It’s all about Europe debt crisis…
Trading action in the mortgage markets have been and continue to be influenced by the ongoing concern over Europe’s debt crisis. This uncertainty has overshadowed a growing amount of data flow from our own economy that is signaling or own recovery. This uncertainty continues to drive capital into dollar denominated assets.
The FHA To Reduce Allowable Seller Concessions this Summer/ Is the Housing Market Recovering for Real…
The percentage sellers can take from the sales price of a home to fund closing costs is being cut from 6% to 3%. According to an announcement in January, the current level of 6% exposes the FHA to excess risk by creating incentives for appraisers to increase the value of these homes. The change will take place in “early summer,” according to the FHA, but a spokesperson said no specific date has been set.
St. Louis Mortgage Interest Rates – May 19, 2010 *
- 30-year fixed-rate mortgage 4.875% no points
- 15-year fixed-rate mortgage 4.250% no points
- 5/1 adjustable rate mortgage 3.500% no points
- FHA/VA 30-year fixed rate mortgage 5.750%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Robert Fishel, on May 12th, 2010 A few months ago, it was widely believed that the Fed’s massive purchase of mortgage backed securities was keeping long-term interest rates artificially low in order to stimulate the economy. It’s been six weeks since the Fed stopped buying mortgage backed securities, and there is no sign that that the end of the purchase program has caused mortgage rates to rise by any meaningful amount.
Given the uncertainty of the monetary crisis in Europe and the mystery of a stock market crash and rebound, markets continue to be very volatile with large swings from day to day– this should continue to make dollar denominated assets, i.e. Treasuries, Mortgage Backed Securities etc. appealing.
St. Louis Mortgage Interest Rates – May 12, 2010 *
- 30-year fixed-rate mortgage 4.875% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.500% no points
- FHA/VA 30-year fixed rate mortgage 4.875%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on May 11th, 2010  Dennis Norman According to a report released by CoreLogic, there were 11.2 million homeowners that were in a negative equity, or “underwater“, position on their mortgages as of the end of the first quarter of this year. This number is equal to 24 percent of all homeowners with a mortgage in the U.S., which is the same percentage as the prior quarter, however the actual number of underwater borrowers was down slightly from 11.3 million borrowers that were underwater in the prior quarter. In addition, there are an additional 2.3 million borrowers that have less than five percent equity in their homes, bring the total of negative equity and near-negative borrowers to over 28 percent of all homeowners with a mortgage nationwide.
A serious decrease in the percentage of mortgages underwater would be better news, but this news is still positive as it shows the rate of borrowers going underwater has stalled out and hopefully we have seen the worst of it.
Highlights of the report:
- Negative equity continues to be concentrated in five states: Nevada, which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (34 percent).
- In terms of metro areas Las Vegas continues to have the highest percentage of negative equity with 75% of mortgaged properties being underwater, followed by Stockton (65%), Modesto (62%), Vallejo-Fairfield (60%) and Phoenix (58%).
- Phoenix had more than 550,000 underwater borrowers, the most households of any metropolitan market in the country. Riverside (463,000), Los Angeles (406,000) Atlanta (399,000) and Chicago (365,000) round out the top five markets.
The share of borrowers whose mortgage debt exceeds the property value by 25% or more fell slightly to 10.4% or 4.9 million borrowers, down from 10.6% or 5 million borrowers.
The two most important triggers of default, negative equity and unemployment, have stabilized over the last six months. As house prices grow again and borrowers pay down their mortgage debt negative equity levels will begin to diminish. The typical underwater borrower is likely to regain their lost equity over the next five to seven years,” said Mark Fleming, chief economist with CoreLogic.
 Source: CoreLogic
By Dennis Norman, on May 11th, 2010  Dennis Norman UPDATE – May 17, 2010 – THANKS TO MISSOURI LAWMAKERS (and the efforts of the Missouri Association of REALTORS and St. Louis Home Builders Association, readers of this post that responded, and others) THE MECHANICS LIEN LAW PASSED! ASSUMING THE GOVERNOR SIGNS IT INTO LAW FINANCING ON NEW HOMES AS WE KNOW IT HAS BEEN PRESERVED!
This week, which is the last week of the legislative session in Jefferson City, the Missouri Senate will probably take up debate on HB 2058, which is a bill that makes needed changes to the Mechanic’s Lien Statute in Missouri and has already been passed by the House of Representatives. At a time when we are just now seeing some relief to the “real estate recession” we don’t need another blow to the industry and homeowners, which is exactly what will happen if this legislation is not passed this week.
Without HB 2058 New Home Financing As We Know It Will Be Gone
Over the past three years or so, since the real estate bubble burst, we have had a crisis develop in Missouri with regard to Mechanic’s Liens. Title Insurance companies have been overwhelmed by claims made as a result of contractors, sub-contractors and suppliers having not been paid for work done on new homes. During this period flaws in the current Mechanic’s Lien statute have become apparent and need to be changed.
The Missouri Land Title Association has worked to get such changes made in an effort to encourage title insurance companies to continue to offer Mechanic’s lien coverage so borrowers may continue to obtain long-term, fixed-rate mortgages (in which lenders require mechanic’s lien coverage) on new homes. Without such legislation title insurance underwriters have threatened to cease offering mechanic’s lien coverage on new homes.
Highlights of the bill:
- Contractors, Sub-Contractors and suppliers would continue to have the right to file mechanic’s liens to assure they are paid for the labor, services and materials however it would require them to file a notice of rights within 60 days to preserve their lien rights. This would give everyone (homeowners, lenders, title insurance companies, etc) adequate notice to be aware of the potential for a claim and helps identify that claim prior to the closing of the sale so the obligation can be satisfied at closing.
- Would require a “Final, Unconditional Lien Waiver” by which a contractor, subcontractor, or supplier may release their claim to the home itself, thereby protecting the homeowner, without giving up their rights to collect money they are still owed by the builder or developer.
- Would protect the new home purchaser from claims for unpaid work from anyone that did not record a Notice of Rights as required. This will assure that the new home buyer does not get surprised afterward by learning they must pay money to a contractor or company they have never heard of simply because the builder didn’t pay them.
The Industry Supports the Bill:
This bill has the support of the Missouri Association of REALTORS, The Missouri Land Title Association as well as the Home Builders Association.
What You Can Do to Help:
If you would like to assure that good financing will continue to be available for new homes, and to protect the rights of the new home buyer then please call your state senator today and encourage him or her to support HB 2058, or you can simply click here and send a message to your Senator by simply filling in your name and address on the form.
By Dennis Norman, on May 10th, 2010 Dennis Norman
Consistent with the report on mortgage delinquencies from LPS that I wrote about last week, today TransUnion released it’s report on mortgage delinquencies showing they fell 1.74 percent in the first quarter of this year, which is the first quarterly decline since 2006. This is good news, however, not to rain on the parade, but we do need to remember that the 4th quarter of 2009 had a record-setting mortgage delinquency rate so to have the rate for the following quarter drop simply means, if you want to do the glass half-empty thing, this quarter didn’t set another all-time record for mortgage delinquencies.
After steadily increasing for 12 consecutive quarters, it is a welcomed relief to see the rate finally decrease to 6.77 percent (for borrowers that are 60+ days past due). This rate is still 30 percent higher than it was a year ago when it was at 5.22 percent.
Fairly consistent with the LPS report from last week, the trends reflected in this report are encouraging; while the ratio of borrowers that are 90 or more days delinquent increased for the quarter, the increases were the smallest since the fourth quarter of 2007.
Other highlights from the report:
- Nevada continues to have the highest mortgage delinquency rate at (15.98 percent)followed by Florida (14.65 percent)
- The lowest mortgage delinquency rates continued to be found in North Dakota (1.76 percent), South Dakota (2.44 percent) and Nebraska (2.68 percent)
- Seventeen states showed increases in delinquency from the previous quarter with Alaska (+11.3 percent), New Hampshire (+6.3 percent) and Hawaii (+4.8 percent) leading the pack.
- The average national mortgage debt per borrower decreased (0.47 percent) to $192,774 from the previous quarter’s $193,690. On a year-over-year basis, the first quarter 2010 average represents a 1.39 percent decrease over the first quarter 2009 average mortgage debt per borrower level of $195,500.
“The fall in mortgage delinquency is indeed good news for the consumer, the mortgage industry, and the current economic recovery,” said FJ Guarrera, vice president in TransUnion’s financial services business unit. “The February rise in the S&P/Case-Shiller home price index and the recent year-over-year increases in median existing home prices reflect the uptick in housing demand, despite the downward pressure exerted by the continual influx of foreclosures. With prices beginning to rise, increasing consumer confidence and positive trends in the equity markets, home owners who are currently upside down on their mortgages may be less inclined to join the ranks of defaulters, which have been growing in number since the summer of 2008.
“However, part of the first quarter demand for new homes was fueled by the First-Time Homebuyer Credit, which was extended to April 30, along with the provision allowing some current home owners to also qualify. Once this runs out, we could see some impact on mortgage demand and therefore home prices — all other things remaining equal. Finally, the dip in mortgage delinquencies is influenced in part by seasonal factors during the tax season, as many homeowners reap the benefits of real estate deductions — tax savings that can be used to keep current on existing mortgage obligations.”
Forecast
“Based on revised economic assumptions, which are now more optimistic than before, TransUnion believes that the 60-day mortgage delinquency rate will likely continue to drop in 2010, possibly to as low as 6.3 percent. Note that this forecast is dependent upon economic conditions, and may change if there are unanticipated shocks to the economy affecting the recovery in the housing market,” said Guarrera.
With regard to regional forecasts, Florida is anticipated to experience the highest mortgage delinquency rate by the end of 2010, reaching as high as 18.2 percent. North Dakota is still expected to continue to exhibit the lowest mortgage delinquency by year-end with a rate of 1.7 percent.
By Dennis Norman, on May 6th, 2010 Dennis Norman A report published by Lender Processing Services (LPS) analyzing homeowner’s performance on their mortgages as of March 2010 shows that, while foreclosure and mortgage delinquency rates are still near record levels, the pace may be slowing with fewer new loans becoming delinquent and an increase in the number of people bringing their loans current.
Fewer Borrowers Are Going From Current To Delinquent –
The dark blue line on the chart below represents the number of “new” delinquencies for each period, and as you can see, the number dropped sharply in March for people that moved from current to 30 days late. While not as big of drop, the number of borrowers going from 30 to 60 days late and 60 to 90 days late dropped as well.
 Source: Lender Processing Services, Inc. (LPS) Fewer Borrowers Are Becoming Seriously Delinquent –
As the chart below shows, the number of borrowers that were current on their home loans as of January 1st but then were 60 or more days delinquent as of the end of March is lower this year than last year for all types of home loans, with the exception of FHA loans which are about the same as last year.
 Source: Lender Processing Services, Inc. (LPS) More Delinquent Borrowers Are Becoming Current –
The chart below shows that the number of people that were delinquent on their house payments but became current again in March increased significantly over the month before. The trend thus far this year has been good.
 Source: Lender Processing Services, Inc. (LPS) The Light At the End of the Tunnel –
If the trends above continue then I would expect in a few months we will start seeing a decline in the foreclosure rate which would be a huge step in the right direction with regard to stabilizing the housing market. Foreclosures disrupt the housing market by adding to inventory of homes for sale and bringing prices down, making it harder for an already challenged market to recover. Once the foreclosure rates start dropping, and continue trending downward we will hopefully be on our way to better times.
By Dennis Norman, on May 6th, 2010 Dennis Norman A report released by CoreLogic showed the St. Louis metro area to have a foreclosure rate in March of 1.49 percent up slightly from February’s rate of 1.44 percent and an increase of 39.3 percent from the year prior when the rate was 1.07 percent.
The national foreclosure rate for March remains over twice the rate of St. Louis at 3.23 percent and was an increase of 73.9 percent from a year ago when the national foreclosure rate was 2.32 percent.
No End In Site
Unfortunately, I don’t think we are going to see much, if any, improvement in the foreclosure rate anytime soon. The rate of serious mortgage delinquencies continues to rise. For March 2010, 6.22 percent of the home loans in St. Louis were 90 days or more delinquent on their mortgage payments, an increase of 55 percent from a year ago when the delinquency rate in St. Louis was 4.02 percent.
Nationally, the rate of serious delinquency on home mortgages in March 2010 hit 8.93 percent, an increase of 54.23 percent from a year ago when the national rate was 5.79 percent.
Continued Pressure on the Market
For the past couple of months we have seen some good reports come out about the housing industry which are indicating that the market may have bottomed out and is starting to stabilize a little finally. Unfortunately, foreclosures bring a lot of downward pressure on the housing market and with the rising foreclosure and delinquency rate, we are assured of feeling this pressure for some time to come. If the economy could rebound strong, unemployment drop, and interest rates remain affordable, then perhaps the housing market could absorb this inventory of foreclosures and their downward pressure on pricing, but that is a big IF.
By Robert Fishel, on May 5th, 2010 Constantly changing headlines involving the European financial crisis (Greece, possibly Portugal) along with the uncertainty of the stock market should make dollar denominated assets, i.e. Treasuries, Mortgage Backed Securities etc. appealing.
These issues should be enough to limit or prevent mortgage rates from moving higher in the near future.
St. Louis Mortgage Interest Rates – May 5, 2010 *
- 30-year fixed-rate mortgage 4.875% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.625% no points
- FHA/VA 30-year fixed rate mortgage 5.125%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on May 3rd, 2010 61 Percent of Those Looking for or Considering Buying a Home Had No Plans to Use the Tax Credit
Dennis Norman According to a survey from Better Homes and Gardens Real Estate, the majority of people looking for, or considering buying, a home had no plans to take advantage of the First-Time or Move-Up/Repeat Home Buyer Tax Credits.
The survey, which was conducted online during the last week of February 2010, was designed to identify factors affecting today’s home buying decisions. Respondents were people from across the country who were searching for a new home, saving up to buy a home or who recently purchased a new home.
Of the respondents that said they were looking for or considering buying a home, nearly two-thirds (63 percent) said they believe it is a “buyer’s market,” more than half (54 percent) feel that mortgage rates are affordable, and 70 percent indicate that there are affordable homes on the market. Just about half (49 percent) feel that the economy gives them the ability to negotiate more than usual. However, only 39 percent surveyed said they had planned to take advantage of the tax credit before it expired on April 30, 2010.
“There has been a lot of speculation about the housing market after the tax credit extension expired,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate. “The tax credit was truly a great motivating factor, with many home buyers taking advantage. However, we found that the tax credit was only one motivation. People buy homes for lifestyle reasons as well and I suspect that the normal seasonality patterns of home buying will still play out now that the tax credit has expired.”
By Robert Fishel, on April 28th, 2010
Realtors, home buyers and sellers are rushing to complete sales agreements before the tax credit for home purchases expires this week; home buyers must have a deal by April 30 and close by June 30 to qualify for a tax break up to $8,000 for first-time home buyers and $6,500 for those moving to a different residence. The Treasury Department and the real estate industry have termed the program a success, helping people buy homes. However, many tax experts say it has been singularly cost-ineffective: most of the $12.6 billion in credits through end of February was collected by people who would have bought homes anyway or who in some cases were not even eligible…
The unkowns are:
With the end of the Federal Reserve’s mortgage backed security purchase program March 31st and the tax credit set to expire on April 30th, what kind of housing market will we be facing in the second half of 2010? Are interest rates going to rise? What happens after the tax credit goes away?
Stay tuned.
St. Louis Mortgage Interest Rates – April 28, 2010 *
- 30-year fixed-rate mortgage 5.125% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.625% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on April 27th, 2010 Incidents of Mortgage Fraud Increase 7 Percent from 2008 to 2009 – Florida, New York and California Top List of States with Highest Mortgage Fraud and Misrepresentation Rates
Dennis Norman Reported incidents of mortgage fraud and misrepresentation by professionals in the mortgage industry in the U.S. are continuing to climb and increased by 7 percent from 2008 to 2009, according to a new report released today by the Mortgage Asset Research Institute, a LexisNexis® service. While the pace has slowed since the 2007-2008 increase of 26 percent, the continued increase is believed to be attributed to better industry reporting and policing.
The 12th Periodic Mortgage Fraud Case Report examines the current state of residential mortgage fraud and misrepresentation in the U.S. committed by professionals, based on data submitted by LexisNexis® Mortgage Asset Research Institute subscribers.
Florida, ranked number one in 2006 and 2007, has moved back into first place in the country for mortgage fraud and misrepresentation after being displaced in 2008 by Rhode Island. Florida also has close to three times the expected amount of reported mortgage fraud and misrepresentation for its origination volume. Rhode Island is not ranked on the Top-Ten list for 2009 because the state’s sample size did not meet the minimum requirements set for the survey.
New York moved into second place, followed by California, Arizona, Michigan, Maryland, New Jersey, Georgia, Illinois, and Virginia. This is the first appearance on the LexisNexis Mortgage Asset Research Institute Report Top-Ten list for New Jersey and Virginia.
“The data suggests that in 2009 there was a 7 percent increase in the number of incidents of fraud reported to the LexisNexis Mortgage Asset Research Institute on top of the 26 percent increase reported in 2008. While this is a noticeable increase, we believe that mortgage fraud is significantly understated, even during times of massive origination volumes,” said Jennifer Butts, LexisNexis Mortgage Asset Research Institute manager of Data Processing and co-author of the report.
“Lenders are facing hurdles with compliance, loss mitigation and staving off additional financial losses due to poor loan performance,” said Denise James, LexisNexis® Risk Solutions director of Real Estate Solutions and co-author of the report.
“This is not to say that mortgage fraud is going away; it is still a serious problem, and new trends continue to emerge. It remains critical for those in the mortgage industry to reassess their processes, work together by sharing information and reporting incidents of fraudulent activity, and ready themselves for more complex schemes in order to continue the fight against mortgage fraud,” said James
The top fraud incident type in 2009 – representing 59 percent of all reported fraud types – was application misrepresentation. This is the sixth year in a row it has topped the list. In second place were frauds related to appraisal and valuation misrepresentation, which increased from 22 percent of reported misrepresentation in 2008 to 33 percent; with an 11-percent increase, this is the most notable increase in reported fraud types in 2009. Additional documented fraud types included, in order of volume, verifications of deposit, verifications of employment, escrow or closing costs, and credit reports. Overall there has been a slight downward trend in total application fraud and misrepresentation moving from a high of 67 percent in 2005 to 59 percent in 2009.
Other highlights of the report:
- Arizona has moved into the top five for the first time;
- Eight of the top ten states are in the eastern half of the country;
- New Jersey and Virginia made their first appearance in the top ten for loans originated in 2009;
- The states with the highest concentration of appraisal fraud and misrepresentation nationwide are all Midwestern States; Ohio,Illinois and Michigan
By News Desk, on April 26th, 2010 The United States Attorney’s Office announced today that Aaron Duncan, the former CEO and owner of The Duncan Group, has pleaded guilty to fraud charges involving a $3.9 million investment scheme.
According to court documents, Duncan represented that The Duncan Group was involved in real estate investments, including buying, rehabilitating, and selling residential real estate. Duncan solicited investors in Missouri and around the United States to participate in his real estate projects through The Duncan Group by making false representations regarding the security of investments and the rates of returns promised. Bank records revealed that Duncan operated The Duncan Group investment program as a Ponzi scheme. Investors who were repaid on their principal investments were paid from funds obtained from other investors, rather than from returns on investments in real estate projects as promised and represented. At no time did Duncan advise investors that their returns, if paid at all, would be paid from other investors’ principal. Typically, Duncan falsely told investors that their principal investments were secured by a specific property. For example, some investors were told that an investor’s name would be placed on a particular deed or that investors were “securitized” by first mortgages on properties.
Bank records show that beginning no later than December 2005, Duncan was experiencing personal financial problems and was often late on his home mortgage payments.
The scheme operated from roughly January 2006 until Duncan advised investors of his intention to declare bankruptcy in October 2008. During the scheme, Duncan received investment principal from more than 50 investors who ultimately lost a total of approximately $3.9 million. Records recovered during the investigation revealed that Duncan only bought approximately 10 properties and that these ten properties lost money in total. Investor money was not used as promised and represented, instead, investor money was routinely used to pay other investors, pay routine expenses of the business, and to pay Duncan’s personal expenses.
Duncan, 33, Defiance, Missouri, pleaded guilty to one felony count of mail fraud and one felony count of money laundering before United States District Judge Carol E. Jackson. Sentencing has been set for July 27, 2010.
“Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money. Investors should be wary that programs promising unbelievable returns on investment should be looked at carefully,” said Toni Weirauch, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.
“Mr. Duncan conned potential investors by promising a high rate of return on real estate and a fast turnaround,” said Michael Kaste, Assistant Special Agent in Charge of the FBI St. Louis Division. “Anytime before investing, people should do their homework and check with agencies like the Secretary of State, the Securities and Exchange Commission, the Better Business Bureau and other court records. But even then, con men will build a 12-foot ladder to climb an 11-foot wall.”
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum penalty of 10 years in prison and/or fines up to $250,000.
This case was investigated by Internal Revenue Service Criminal Investigation, the Postal Inspection Service, the Federal Bureau of Investigation, and the Securities Division of Missouri Secretary of State Robin Carnahan’s Office. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.
By Dennis Norman, on April 26th, 2010 Dennis Norman In a report just issued by Radarlogic there is some good news for the housing industry as in the report Michael Feder, President and CEO of Radar Logic, states “the evidence continues to support the view that housing has stabilized and is in the early stages of recovery.” However, the report also reminds us that RealtyTrac reported that foreclosure filings set a record in March, with filings reported on 367,056 properties, the “highest monthly total since RealtyTrac began issuing its report in January 2005. The report indicates an increasing concern about the threat that foreclosures pose to housing demand, and thus to a timely recovery of the housing market.  “We believe that low home prices and low mortgage rates will continue to spur sufficient housing demand to absorb foreclosure- driven increaseses in supply at current price levels,” said Quinn Eddins, Readar Logic’s Director of Research. “Nevertheless we will watch foreclosure rates and sales activity closely in the coming months for signs of lagging homebuyer confidence.”
Highlights from the report include:
- Of the 25 Metro Areas covered by the report, St. Louis ranked 10th in terms of year-over-year price change with a loss of 0.3 percent and ranked 10th in month-over-month price change with a loss of 2.8 percent (see chart below)
- In year-over-year change in terms of number of home sales, St. Louis ranked 22nd with an 11.9 percent increase and ranked 18th in month-over-month change with a 9.4 percent increase in number of transactions.
- The 25-MSA RPX Composite price remained flat in February on both a month-over-month and year-over-year basis. The horizontal price movement represents the best one-month price trend for the month of February since 2007. The three-month price trend ending February 2010, while negative, marked an improvement over steep February declines in 2008 and 2009.
- The stability in the 25-MSA RPX Composite price from January to February 2010 was driven by increases in the RPX prices for western MSAs. The RPX composite price for the western region increased 2% in February on a month-over-month basis, while the RPX prices for the Midwest, Northeast and South each declined 2%.
- The 25-MSA transaction count increased 37% between February 2009 and February 2010. As can be seen in Exhibit 3, this was the first year-over-year increase during the month of February since 2005. The 25-MSA RPX transaction count increased 16% month over month. In absolute terms, this one-month trend was similar to the February gains in 2006 through 2009. The three-month transaction count trend was more negative than it has been in years due to the large and rapid decline in transactions in December and January.
- On a year-over-year basis, transactions increased the most in MSAs that have been hit hardest by foreclosures: Las Vegas, Chicago, Miami and Detroit (please see Exhibits 9 and 14). The RPX transaction count for Las Vegas has increased almost 300% since February 2009. The largest month-over-month increases in sales activity occurred in Southern California, with Los Angeles and San Diego both exhibiting 39% gains in transaction counts.
 
By Dennis Norman, on April 24th, 2010  Dennis Norman Century 21 Real Estate LLC announced the results of its First-Time Home Buyers and Sellers Survey, which captured and compared the opinions of prospective home buyers and sellers who either purchased or sold their first home within the past year or are planning to buy or sell their first home within the next year.
More than 80 percent of first-time home buyers and sellers feel the current housing market is more affordable today than this time last year, despite the fact that 40 percent of all respondents are more worried about the economy compared to this time last year.
 While the attractive combination of home prices, mortgage rates and tax credits appeal to both buyers and sellers, market conditions continue to favor buyers. However, first-time home buyers anticipate home prices will soon begin to rise and in fact, about half of first-time buyers (48 percent) expect an increase by this time next year, thereby reestablishing the balance between buyers and sellers.
“Today’s market presents a generational opportunity for home buyers and current home owners looking to leverage their market position,” said Rick Davidson, president and CEO, Century 21 Real Estate LLC. “If you are considering buying or selling a home, talk to a real estate professional who can help you to navigate the specifics of your local market.”
Sixty (60) percent of first-time home buyers do not feel they have a good handle on the real estate process. Given the complexity and opportunity of today’s real estate market, 85 percent of both first-time buyers and sellers feel that using a real estate professional is important. The top three skills valued in realtors by both buyers and sellers are knowledge of the area, trustworthiness and responsiveness.
The majority of the survey respondents have moved or intend to move more than 10 miles but less than 50 miles from their previous location, indicating current market conditions may be a catalyst for buying or selling homes, as opposed to a desire to dramatically change geographic location or relocate for a job.
Home Price Effects on First-Time Buyers and Sellers-Survey Highlights-
- More than 80 percent of buyers believe now is a good time to buy a home.
- First-time home buyers rated the three most influential factors in their decision to enter the market and buy a home as current housing prices (66 percent), followed closely by both the home buyer tax credit (63 percent) and low interest rates (60 percent).
- Finding a home within a buyer’s price range is extremely important (95 percent), as is a neighborhood’s safety (90 percent).
- The top two factors influencing the first-timers’ decision to sell their homes were personal/family reasons and current housing prices — both of which were cited as motivating factors by 48 percent of first-time sellers.
- Most likely due to their experience, approximately half of first-time sellers (54 percent) think home prices are more affordable now than compared to this time last year.
- In fact, the current home prices have influenced 50 percent of sellers to “move up” and 37 percent to change neighborhoods.
- Sellers are mainly concerned about losing money on the sale of their home and receiving offers near their asking price.
- Approximately half of all first-time home buyers (48 percent) and sellers (53 percent) anticipate housing prices will increase over the next year.
Low Mortgage Rates But How Accessible Are They?
- The majority of first-time buyers (79 percent) and sellers (86 percent) believe mortgage rates are either somewhat or very affordable right now. Again, due to their experience, sellers are more likely than buyers to find the current rates very affordable (35 percent of sellers vs. 21 percent of buyers).
- The low interest rates have influenced 46 percent of owners to sell their home for “move up” reasons and another 43 percent to change neighborhoods.
- Most respondents feel that getting a mortgage today is either somewhat difficult or very difficult (87 percent of first-time buyers and 82 percent of first-time sellers). Because many may be going through the process currently, buyers were significantly more likely than sellers to find the process very difficult vs. not difficult at all.
Tax Credit Awareness and Eligibility
- Eighty-four (84) percent of first-time buyers are aware of the first-time home buyer tax credit and 64 percent of those who state they are in the market for their first home say they qualify for this credit.
- On the first-time seller side, an equal 84 percent are aware of the move-up/repeat home buyer tax credit yet only 33 percent say they qualify for this credit.
By Robert Fishel, on April 21st, 2010
First-time homebuyers made up a record high share of sales in March, according to the latest Campbell Surveys poll of more than 1,500 real estate agents nationwide; First-time homebuyers accounted for 48.2% of all home purchases. The March uptick comes ahead of the extended tax credit deadline.
Who Qualifies-
- First Time Home Buyer $8,000 Tax Credit
- The primary home buyer and/or spouse may not have owned a home in the previous three (3) years to qualify.
- Buyers cannot be claimed as a dependent by another taxpayer or be under the age of 18.
- Repeat Home Buyer $6,500 Tax Credit
- Existing home buyers must have lived in and owned a primary residence five (5) consecutive years of the previous eight (8) years to qualify.
- Buyers cannot be claimed as a dependent by another taxpayer or be under the age of 18.
Contract – A signed, binding sales contract is required by April 30, 2010.
Closing – The purchase must close on or before June 30, 2010.
Extended deadline for some – Certain U.S. military, Foreign Service and intelligence service personnel have an extra year to claim the home buyer tax credit. (Contract by April 30, 2011 and close by June 30, 2011).
Income Restrictions: The full amount of the tax credit is available for individuals with a Modified Adjusted Gross Income (MAGI) of no more than $125,000 ($225,000 on a joint return). The credit phases out above these limits to an income cap of $145,000 ($245,000 for joint filers). A MAGI above $145,000 ($245,000 for joint filers) reduces the credit to zero.
Determining the Credit:
- First Time Home Buyer $8,000 Tax Credit
- Maximum tax credit is $8,000.
- The credit is determined by taking the lesser amount of either 10% of the sales price of the home or the tax credit limit of $8,000.
- Repeat Home Buyer $6,500 Tax Credit
- Maximum tax credit is $6,500.
- The credit is determined by taking the lesser amount of either 10% of the sales price of the home or the tax credit limit of $6,500.
Types of Homes: Any home that will be used as a principal residence will qualify for the credit. The purchase price must be less than or equal to $800,000. Home types include single-family detached homes, townhouses and condominiums. Homes cannot be purchased from family members or your spouse’s family members (including parents, grandparents, children, grandchildren, etc.)
Claiming Your Credit: The credit can be claimed on a homebuyer’s 2009 or 2010 tax return. The homeowner must submit IRS form 5405 and attach a copy of the HUD-1 Settlement Form (closing statement).
Payback: The tax credit does not have to be paid back. Taxpayers with incomes too low to owe tax will receive a refund check from the IRS for the credit amount.
Selling Your Home: If the home is sold within three years of the purchase date, the entire amount of the credit is recaptured on sale.
Be realistic – Buyers should be upfront with their Realtor about their must-haves and their wish list. Buyers who aren’t realistic risk running out of time searching for the “perfect” home.
Be sure to check with your tax adivisor or the IRS (www.irs.gov) for questions or concerns regarding your specific situation.
St. Louis Mortgage Interest Rates – April 21, 2010 *
- 30-year fixed-rate mortgage 5.125% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.75%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on April 19th, 2010
 - Dennis Norman
Housing is stabilizing but excess inventory and shadow supply are hindering recovery according to the April 2010 Economic Outlook released today by Fannie Mae’s Economics & Mortgage Market Analysis Group.
The report projects that new home sales (which are at record lows) will be slow to recover until inventory of existing homes and the foreclosure overhang are worked off. The comments about existing home sales were more optimistic saying key indicators for existing home sales, including pending home sales and purchase applications, are showing good signs of a pickup.
Jobs, a driving force for housing, are now moving in the right direction according to the report. Fundamentals of the labor market appear to be improving as layoffs have slowed and hiring is showing signs of life. March payroll employment increased by 162,000, the largest gain in three years; temp employment posted a sixth consecutive monthly gain; and the average workweek increased. On the downside, unemployment will remain elevated for some time, despite the peak unemployment rate of 10.1 percent likely having occurred in October 2009.
Highlights of the housing forecast contained in the report:
- The rate of new home starts is projected to increase from quarter to quarter throughout 2010 and 2011
- New home starts for 2010 (single family) are projected to come in at 570,000 homes and in 2011 856,000 homes
- The rate of sales of new homes is also projected to increase from quarter to quarter throughout 2010 and 2011 as well.
- New home sales are expected to come in at 374,000 in 2010 and 612,000 in 2011 (Fannie Maes 2010 estimate is more optimistic than my estimate of 336,600 – 355,000 homes)
- The rate of existing home sales is expected to increase in the second quarter this year but then drop back down in the third quarter and finish 2010 with 5,464,000 homes sold. For 2011 existing home sales are projected to improve slightly toward the end of the year finishing 2011 with 5,946,000 existing homes sold.
- Median home prices are expected to decrease 1.0 percent from 172,500 for 2009 to $170,800 in 2010 and then increase by $600 to $171,400 in 2011.
- Interest rates on fixed-rate mortgages are projected to increase from 5.04 percent for 2009 to 5.23 percent in 2010 and 5.69 percent in 2011.
By Robert Fishel, on April 14th, 2010
First-time home buyers comprised an unprecedented 47 percent of the market last year according to a recently published report by the National Association of Realtors (NAR).
NAR’s report, 2009 Profile of Home Buyers and Sellers, points to the federal tax credit and the historic affordability of housing as the most likely reasons first-time buyers scored so high in sales.
According to NAR, housing economists predict that “2010 will be an even bigger year for first-timers.” Who are these people, and what do they want?
Most are married – Forty-nine percent are a married couple. Single females comprise a quarter of first-time buyers. Single males account for just 12 percent.
They’re young – More than half (53 percent), are between the ages of 24 and 34. Twelve percent are younger than 24.
They’re diverse – Twenty-two percent are part of a minority group, compared with 13 percent of repeat buyers. Six percent speak a language other than English. Twelve percent were not born in the United States.
They like the suburbs – Even though 22 percent purchase in an urban area, the suburbs continue to be the most popular locale, with 52 percent buying there. The third most popular spot is a small town.
They make their own time – First-time buyers take an average of 12 weeks to find their home, compared with 10 weeks for repeat buyers.
They’re not afraid of foreclosures – Eleven percent of first-timers bought a home in foreclosure and 56 percent considered it. Only 9 percent of repeat buyers bought a foreclosure, and just 41 percent considered it.
They’re most likely to use a referral – Fifty-three percent found their agent through a referral, compared with 36 percent of repeat buyers, many of whom sought the services of their previous agent.
More than 9,000 consumers who recently completed a home buying transaction were surveyed by the National Association of Realtors last year to compile the 2009 Profile of Home Buyers and Sellers report.
St. Louis Mortgage Interest Rates – April 14, 2010 *
- 30-year fixed-rate mortgage 5.125% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.25% no points
- Jumbo 15 year fixed rate mortgage 4.875%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on April 12th, 2010 Dennis Norman A report published by Lender Processing Services (LPS) analyzing homeowner’s performance on their mortgages as of February 2010 has some data that is encouraging but that data is overshadowed by data that shows the problems int he U.S. housing market are far from over.
Let’s start with the good news…
Delinquencies on home mortgages declined in February by 1.45 percent from January and the percentage of loans that were 90 days late or more in February were at the lowest rate in 17 months. The decline in home loans that were 90+ days delinquent from December 2009 to February 2010 was the largest decline since the same period in 2005 and 2006.
 Now for the sobering bad news…
Mortgaage delinquencies in February were up 21.3 percent from a year ago and foreclosure inventories continue to climb to record highs. February’s foreclosure rate of 3.31 percent is an increase of 0.06 percent from January and a 51.1 percent increase from a year ago. In addition, the average days delinquent on loans 90+ days delinquent increased to 256 days, an increase of 36 percent from a year ago when the average delinquency was 188 days.
- Total U.S. loan delinquency rate for February was 10.2 percent.
- Approximately 1.145 million loans that were current at the beginning of January were at least 30 days delinquent as of the end of February
- 3.8 percent of loans that were current in December 2009 in Nevada and Mississippi were delinquent as of the end of February 2010
- 4.56 percent of loans moved to “worse” status in February vs. 2.22 percent that improved
- For every 1 loan that improved in February in terms of delinquency, 2.1 loans deteriorated.
- The percentage of loans that have missed 12 payments and are not in foreclosure has almost doubled in the past year.
The national average for home loans that are not current as of February is 13.5 percent. The state with the highest percentage of home loans that are not current is Florida with almost a fourth of the home loans not current (23.8 percent) followed by Nevada at 23.3 percent, Mississippi at 17.5 percent and Arizona at 16.3 percent.
 Information provided by LPS Applied Analytics
By Dennis Norman, on April 9th, 2010 Dennis Norman I thought I would end the week by giving everyone something to dwell on and contemplate over the weekend. Actually, I set out this morning to do a post about the National Association of REALTORS(R) (NAR) Housing Affordability Index for February which was recently published. As I was reviewing the data in the report I started giving “affordability” a lot of thought, went down a few rabbit trails, did a few hours of research and ended up with an analysis of home affordability.
The NAR Report:
Since this was the initial topic I thought I should say a little about it. The NAR Housing Affordability Index for February was at 176.0 meaning that a median-income family has 176 percent of the income they need to purchase a median-priced house, which is good. This is down slightly from January’s index of 177.5 but is still a vast improvement from a couple of years ago when it was 115.4 in 2007 (the higher the number the better).
This is where I started digging in a little though. There are several factors that play a role in the index: median home prices, mortgage rate and median family income. Since 2007 median family income has dropped about 1 percent which has very little affect on affordability however interest rates have dropped from 6.52% in 2007 to 5.13% in February, a decline of over 21% and home prices have fallen almost 25% during the same period so it’s not surprising that homes are more affordable, particularly since the index uses the house payment to determine affordability.
Low interest rates – how much of a factor?
The NAR index is based upon a monthly payment of $1,104 on a median priced home in 2007 and a payment of $716 on a median-priced home in February 2010; a decrease of $388 in payment over the period. So how much of a role did interest rates play in the decrease? Well, lets put it this way; if in 2007 the rates were 5.13% as they were in February the payment on a median priced home would have been $950, $154 less than it was. And, if interest rates now were 6.52 like they were in 2007 then the payment on a median priced home would be $833. So if we take do an apples to apples comparison with regard to interest rates, then the lower home prices have resulted in a monthly savings of $117 instead of $388. Hmm…
 In the chart to the right you can see mortgage interest rates for the past 20 years and can see just how low rates are today, about half of what they were 20 years ago. The median interest rate for the 20-year period of 1989 – 2009 is 7.31% which should remind us that rates will most likely not stay as low as they are now.
So what happens if interest rates go up, say back to the 20-year median rate of 7.31%? Well, going back to NAR’s affordability index, if we apply that rate to the current median home price used in the index the payment goes from $716 to $902, an increase of $186, or 26% which I would say is significant and would chop NAR’s affordability index down a chunk.
Here’s the scary part: home affordability is not far off an all time high and we have incentives such as home buyer tax credits, and yet home sales are dragging along at depressed levels which tells me we can’t afford to have housing affordability go the other direction.
If interest rates increase how much would home prices have to fall to keep affordability the same?
OK, let’s say, that in spite of what the government is telling us, interest rates go up, maybe even up to the 20-year median rate of 7.31%, what would have to happen to prices to keep affordability the same? Well, assuming the median family income stays the same, the median home price would have to drop from the February price of $164,300 to $130,418, a drop of almost 21%, in order to maintain housing affordability where it is now. Make a mental note of that price drop and read on please.
Relationship between rent and home prices
As home prices shot up during the boom one thing that hit me was that rental and lease rates on homes were not increasing at nearly the same rate and prices on rental property seemed to be way out of whack with the income. Last year I wrote a post and told a story of my wife and I searching for a condo in Florida in 2003 to buy for a vacation rental and finding that the relationship between the prices and the income was nuts….it made no sense at all what people were paying. Since then I have seen several articles by people much smarter than me that have discussed the relationship between the “rental value” of a home and it’s sales price and when this gets too out of whack something breaks….home prices.
During the boom this was clearly evident…One example I remember is there was a developer in Clayton, an ecclectic, upscale neighborhood in St. Louis, MO, that built a wonderful new home in a transitional neighborhood and offered it for sale at $1.6 million. The house was well worth the money but, since this was a “tear-down” in an older neighborhood of much more modest homes, the price was significantly higher than the neighboring homes. Long story short, the builder couldn’t sell it, so he offered it for lease, first for around $5,000 a month, then later $3,500 and leased it. I remember doing the numbers then and thinking what a bargain leasing the home would be versus owning it. If you bought the home at the time, put 20% down ($320,000) you would have a payment of $7,567 plus taxes and insurance, so probably around $9,000 a month by the time you were done. Or, you could put down a security deposit of $3,500 and lease it for $3,500 a month. The lease route saved you $316,500 in cash up front and about $5,500 a month versus buying the home which made me realize either rents were way too low or prices too high…reality is it was probably a little of both.
 I decided to take a look at the relationship between median rental rates and median home prices over the past 20 years to see if this data might help me understand where things stand.
Playing economist I developed a price/rent ratio based upon median home prices’ relationship to median annual rental rates. As you can see in the chart to the right, this ratio was in the 13 to 14 range from 1989 through 1995 then inched up to the 15 to 16 range until 2005 when it shot up into the mid-20’s and then settled at 18.47 in 2009.
Home prices are still too high
The chart below shows my price/rent ratio over a 20 year period and shows the median for the period in red. From about 1996 until late 2003 the ratio was right at the median and I think there was a balance between rent and home prices. However, in 2004 home prices shot up and, even though, as the chart shows, started a decent in 2007, are still above the median range indicating to me that home prices are still too high. For 2009 the median home sales price (based upon census data) was $156,900 but in order to bring the price/rent ratio back in line with the “normal” period of ’96 through ’03, the median home price would need to be around $134,842, a decline of another 14 percent or so.
 The American Dream
Home ownership has, for as long as I can remember, been referred to as “the American dream” while at the same time renting or leasing a home has, by many people, been looked upon as a last resort or something not for them. Well, guess what? Times are changing! I should stop now and interject the fact that I am a REALTOR(R) and very much want people to buy homes, but the honest truth is that may not be the best alternative for everyone at this time. Our country is at a very volatile point in many regards and we have experienced the worst economy since the great depression….these are not normal times.
While, short of God, no one can, with certainty, say what is going to happen to home prices over the next decade, I think it is safe to say that any appreciation we may see will be modest until our economy is back on track which may be some time. In the meantime I wonder if leasing a home may become a more popular option for people, even prior homeowners, that don’t want to risk the financial anguish and pain they may have felt over the past couple of years again, and may instead choose to look at providing shelter for their family from more of a business standpoint….in other words, where will they get the most bang for their buck…owning or renting?
By Robert Fishel, on April 7th, 2010
Interesting results from Fannie Mae National Housing Survey
Fannie Mae released results of the Fannie Mae National Housing Survey, a comprehensive research project that surveyed more than 3,000 consumers to assess their confidence in homeownership as an investment, the current state of their household finances, their views on the U.S. housing finance system, and their overall confidence in the economy.
It appears that Americans continue to value homeownership and think about their homes in ways that go much deeper than the financial investment. The survey also found that the public strongly believes in the importance of upholding the financial commitment involved in buying and owning a home, even during these challenging times when home values have fallen.
Other highlights of the survey:
- 8 in 10 respondents consider homeownership important to the economy
- 31% of the respondents think the economy is on the right track
- 66% of the respondents think it is a good time to buy a house
St. Louis Mortgage Interest Rates – April 6, 2010 *
- 30-year fixed-rate mortgage 5.225% no points
- 15-year fixed-rate mortgage 4.50% no points
- 5/1 adjustable rate mortgage 3.850% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.25% no points
- Jumbo 15 year fixed rate mortgage 4.875%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on April 6th, 2010
- Dennis Norman
At the Federal Open Market Committee meeting on March 16th it was suggested that “economic activity expanded at a moderate pace in early 2010″. Unfortunately, when it came to the housing market, the news was not as good and it was noted that “housing activity remained flat and the nonresidential construction section weakened further.”
The staff went on to say that activity in the housing sector appears to “have flattened out in recent months” and that “sales of both new and existing homes have turned down, while starts of single-family homes were about unchanged despite the substantial reduction in inventories of unsold new homes.” The feeling was that some of the recent weakness in home sales may have been due to buyers that rushed to buy in anticipation of the first-time homebuyer tax credit that was originally expected to expire in November, 2009.
Other concerns about the housing market that were expressed by participants in the meeting included the concern that activity appeared to be leveling off in most regions despite various forms of government support, and that the commercial and industrial real estate markets “continue to weaken”. The fact that “housing sales and starts had flattened out at depressed levels” suggests that the previous improvements in the housing market may have largely been a result of the homebuyer tax credit “rather than a fundamental strenthening of housing activity.“
On another negative note for the housing markets, the meeting participants indicated that “the pace of foreclosures was likely to remain quite high; indeed, recent data on the incidence of seriously delinquent mortgages pointed to the possibility that the foreclosure rate could move higher over coming quarters.” Adding; “the prospect of further additions to the already very large inventory of vacant homes posed downside risks to home prices.” (hmm…sounds familiar, what real estate blogger has been talking about this for a while and expressing concern? oh yeah, me :)
The committee also confirmed, as I have discussed was coming in other posts, that the Fed was going to complete their purchase of the $1.25 trillion worth of mortgage-backed securities by the end of March that they committed to in an effort to add liquidity to the mortgage market and would discontinue purchasing the securities after that. Thus far this has not had much effect on interest rates but I think it will take a month or so to see where things shake out.
So, in a nutshell, the Fed doesn’t think the housing market is out of the woods yet; the government stimulus may have done nothing more than creaate a temporary “false market” (I’ve talked about this point here before too) and that the housing sector may continue to be a drag on the economy for a while.
By Robert Fishel, on March 31st, 2010 NEW FHA Policies Go Into Effect April 5th
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 while continuing to support the nation’s housing market recovery. The goal is to balance risk management and continue to provide affordable, responsible mortgage products.
On April 5, 2010, lenders must start collecting a 2.25% Up Front Mortgage Insurance (UFMIP). The .50% increase from 1.75% will help shore up the government agency’s reserve fund which dropped to .53% in November. This reserve fund covers losses on the mortgages the agency insures. Congress mandates the agency maintain a minimum 2% ratio. Since the fall of 2008, the reserve fund has dropped steadily from a high of 3% to its low in November.
Some 14.36% of FHA loans were past due in the third quarter, according to the Mortgage Bankers Association. This compares to 9.64% of all loans.
St. Louis Mortgage Interest Rates – March 31, 2010 *
- 30-year fixed-rate mortgage 5.125% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.875%
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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on March 26th, 2010 Dennis Norman Back in early December I did a post about a new program that was announced in November, the Home Affordable Foreclosures Alternative (HAFA) Program which is scheduled to go into effect April 5, 2010. There was recently supplemental documentation published as well as FAQ’s about the program and I have to admit, it seems to me the government is getting it right with this program.
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 potentially lengthy and expensive foreclosure proceedings and also by protecting the property by minimizing the time it is vacant and subject to vandalism and deterioration. These options help out the borrower by avoiding the foreclosure process and the uncertainty that comes with it and allows the borrower to negotiate when they will give up possession of their home as well as, under the HAFA program be released from any further liability from the loan including short-fall and deficiencies.
How will the short sale process work under HAFA?
- You will need to enter into a short-sale/deed in lieu agreement iwth your lender.
- Before listing your home for sale your lender will approve a list price on your home or give you the amount of sale proceeds that are acceptable to them under a short sale. The lender will also let you know what costs may be deducted from the sale proceeds, such as commission and closing costs.
- After you list your home and receive an offer from a buyer, you will submit the offer, along with a “Request to Approve a Short Sale form, to your lender. In addition, you will need to submit proof that the buyer has funds to purchase your home, such as a letter that the buyer is approved for a mortgage. After you provide the necessary documentation to your lender, your lender has 10 business days to approve the sale.
- At the closing of the sale the lender is to release you from ALL responsiblities for repaying your mortgage. Plus, you will receive $3,000 from the proceeds to help pay some of your moving expenses.
Your responsibilities under the HAFA short sale.
- Keep your house and your property in good condition and repair and cooperate with your broker to show it to potential buyers.
- You may be required to continue to make full or partial mortgage payments (this will be determined by your lender)
- You must be able to provide the buyer of your home with clear title. To start, determine if you have other loans, judgments or liens secured by your home, such as a home-equity line of credit or a second mortgage. If there are such liens, you will need to either pay these loans off in full or negotiate with the lien holders to release them before the closing date. Under this program, you must make sure other lien holders will agree not to pursue other legal action related to the pay off of their lien, such as a deficiency judgment. You can get help from your broker to negotiate with the other lien holders.
- The program allows up to 6% of the unpaid principal balance of each loan (not to exceed an aggregate of $6,000 for all the loans in total) to be paid from the sale proceeds to help get a lien release.
- At several stages of the short sale process, such as after an offer is received, you will need to complete some paperwork. You are responsible for returning all documents within the time allowed in your short sale agreement with your lender.
Additional Info on Short-Sales.
- You cannot list the property with, or sell it to anyone that you are related to or have a close personal or business relationship with, it must be an “arms length transaction”.
- If you have a real estate license, you cannot earn a commission by listing your owner property. Nor can you have an agreement to receive a portion of the commission.
- The buyer of your home must agree not to sell the home within 90 calendar days of the date it is sold by you.
- You must not have any expectation that you will be able to buy or rent (it’s your lenders discretion on the rent) your house back after closing.
HAFA Short-Sale FAQ’s
- How much real estate commission can be paid out of the sale proceeds? Six Percent is the maximum commission and the seller, nor buyer, can receive any portion of the commission.
- Can a lender that has a second mortgage or other junior lien request additional payments from the seller or real estate agent in addition to what they are allowed to receive from sale proceeds? No.
- What if the property was a principal residence but is vacant at the time the lender evaluates the deal for a Short-Sale or Deed-In-Lieu? The property can be vacant for up to 90 days prior to the date of the Short Sale Agreement and still be eligible but only if the borrower can provide documentation showing that the borrower was required to relocate at least 100 miles from the mortgaged property to accept new employment or was transferred by the current employer, and there is no evidence indicating the purchaser has purchased a new home 90 days prior to the agreement.
Deed in lieu option.
If by the termination date of your short-sale agreement with your lender you have not been able to sell your home, but you have complied with all of your responsibilities under the agreement, then you will be given the opportunity to convey (transfer) ownership of your home to the lender. While this will not allow you to keep your home it will prevent you from going through a foreclosure and will release you from all responsibility to repay the mortgage debt. Additionally, you will still be eligible to receive $3,000 to help with your moving expenses.
Additionally, if you are unable to afford your first mortgage (and therefore not able to do a short sale) you will be considered for the deed-in-lieu option.
By Dennis Norman, on March 24th, 2010 Dennis Norman According to the latest report from the National Association of REALTORS(R), existing home sales in the US in February decreased 0.6 percent to a seasonally adjusted-annual rate of 5.02 million units in February from a revised level of 5.50 million units in January, however this does represent an increase of 7.0 percent from a year ago when the rate was 4.69 million units (seasonally adjusted).
February’s Numbers Show Real Estate is “Local”
Reinforcing the fact that “all real estate is local” the February Existing Home Sales report paints quite a different picture of the housing market depending upon the region of the country:
- Northeast region – February sales increased by 2.4 percent from January and were up 12.0 percent from a year ago
- Midwest region – February home sales increased by 2.8 percent from January and were up 8.8 percent from a year agao.
- South region – February home sales decreased by 1.1 percent from January but were up 6.9 percent from a year ago.
- West region – February home sales decreased by 4.7 percent but were up 3.4 percent from a year ago.
Less is More
Over 72 percent of all existing home sales in February in the US (72.2 percent) were at sales prices of $250,000 or less with almost 36 percent of those sales being $100,000 or less. While most of the sales were in these lower price ranges, sales of higher priced homes in February were significantly higher than a year ago:
 Source: National Association of REALTORS Lawrence Yun, NAR chief economist, said widespread winter storms in February may mask underlying demand. “Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity,” he said. “Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment.”
I don’t like “seasonally adjusted rates of sales”:
If you have been reading my posts for a while you know by now I don’t like “seasonally adjusted” numbers, particularly when artificial stimuli, such as homebuyer tax-credits, can cause an unseasonal spike in sales activity. I much prefer to see the actual numbers and try to garner from them what is going on in the housing market.
The following are the ACTUAL Existing Home sales reported by NAR without any adjustment or fluff:
- There were 302,000 existing homes sold in February which is a 9.8 percent increase from January’s 275,000 sales and a 7.9 percent increase from February, 2009’s sales of 280,000 units.
- Below are highlights from each region:
- Northeast – 52,000 homes sold in February, 2010, an increase of 26.8 percent from January and an increase of 13.0 percent from the year before.
- Midwest – 68,000 homes sold in February, 2010, an increase of 25.9 percent from January and an increase of 9.7 percent from the year before
- South – 113,000 homes sold in February, 2010, an increase of 8.7 percent from January and an increase of 7.6 percent from the year before.
- West – 69,000 homes sold in February, 2010, a decrease of 9.2 percent from January and a increase of 3.0 percent from the year before.
Other highlights of the NAR Report:
- Median price of homes sold in February in the US was $165,100, about the same as January’s revised median sale price of $164,900 and is 1.8 percent less than the median price from a year ago.
- Distressed sales accounted for 35 percent of all home sales in February, a decrease of 7.8 percent from January’s rate of 38 percent.
- First-Time homebuyers accounted for 42 percent of the home sales in February, up from 40 percent in January.
- Investors were the buyers of 19 percent of the homes in February, up from 17 percent in January.
- Repeat home buyers were responsible for approximately 39 percent of February’s sales down from January’s 43 pecent..
- Total housing inventory at the end of February was 3,589,000 homes for a 8.6 month supply, an increase of 10.3 percent from last months 7.8 month supply.
My Take On the Numbers:
I’m somewhat encouraged by this report and think that it supports my theory that the housing market, at least in many areas of the country, is toying with the “bottom”. I think we are going to see the market fluctuate “near the bottom” for some time and then we will see a recovery that I think will take some time to mature.
What to look out for:
- Interest rates – Rates ALWAYS have an affect on the housing market…presently we have near record-low rates, however the Fed Reserve is indicating they will stop purchasing mortgage-backed securities in the next few days and industry experts feel this will lead to higher interest rates.
- Tax Credits– By all indications the homebuyer tax credits have played a role in getting buyers to pull the trigger and has contributed to home sales. The credits come to an end April 30th, unless extended by Congress which I feel is doubtful, and then we will see what happens to the market afterward. First-time buyers, the biggest benificiaries of the credit, make up 40 percent of the sales currently, so they are s significant component.
- Foreclosures – Foreclosures, REO’s and short-sales all put negative pressure on the housing market in terms of home prices and there is no end in site.
- Underwater Borrower Sentiment– There are a record number of people “underwater” on their homes (owe more than their homes are worth) but, according to Robert Shiller, a noted economist, 80 percent of those borrowers still feel like they should continue to pay their mortgages and stick it out. According to a recent report by First Amercian CoreLogic, this sentiment changes dramatically once homeowners exceed 25 percent negative equity or exceed $70,000 in negative equity…according to the same report the average negative equity for underwater borrowers at the end of 2009 was $70,700. The number of underwater homeowners was 11.3 million at the end of 2009; if the sentiment of these homeowners change and they start walking away from their homes, look out housing market!
By Robert Fishel, on March 24th, 2010 PLASTIC TAKES PRIORITY.
Consumers are paying more attention to their credit card payments and making sure they are current according to a newly released report from TransUnion.
The credit information management company analyzed 27 million anonymous consumer records randomly sampled during the six quarters from 2008 to 2009. Their selection criteria included consumers with at least one credit card and a current mortgage.
Consumers who are delinquent on their credit cards and current on their mortgages decreased to 3.6% from 4.1% in the time period of the study.
However, during the first quarter of 2008 a “flip” occurred where the percentage of consumers with current credit card balances and delinquent mortgages rose. This trend continued during the study time period logging an increase to 6.6% from 4.3%.
“Conventional wisdom has always been that, when faced with a financial crises, consumers will pay their secured obligations first, specifically mortgages,” stated Sean Reardon, author of the study in the company’s analytics and decisioning business unit.
This flip was more pronounced in the Florida and California markets and also for the lowest-scoring segment of the consumer market.
Analysts predict that this flip would revert since the worst of the recession has passed, but apparently that has not been the case according to TransUnion .
St. Louis Mortgage Interest Rates – March 24, 2010 *
- 30-year fixed-rate mortgage 5.00% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.125% 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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on March 22nd, 2010
Dennis Norman The Federal Reserve announced it will stop purchasing mortgage-backed securities by the end of March.
In November, 2008, the Federal Reserve announced, in an effort to help the housing market, it would purchase mortgage-backed securities. Then, in March, 2009, the Fed increased the total amount of money they would invest in such securities to $1.25 trillion and estimated that they would complete those purchases by the end of first quarter 2010.
The Fed’s action I think certainly added some liquidity and confidence to the ailing housing market and now, that the time has come for them to pull out of the market, the question is what effect it will have on interest rates is uncertain. Some industry analysts are cautioning that after the Fed pullout the private investor sector will want a higher return thereby forcing mortgage interest rates upward.
Last week the Federal Reserve announced that they will complete the purchases of mortgage-backed securities by the end of this month, thereby taking the Fed out of the market. In their announcement they said “economic activity has continued to strengthen and that the labor market is stabilizing” but cautioned that the pace of economic recovery “is likely to be moderate for a time.”
By this time next month we will get an idea of what effect the Fed’s action will have on interest rates. I think it is safe to say we are going to see an increase in mortgage interest rates although I would predict that the increase will be slight, at least initially. The interest rate for a 30-year fixed-rate mortgage has been hovering around 5 percent for a while now, sometimes bouncing above or below that mark. My guess is we will see this rate hover more in the 5.25 – 5.50 percent range soon.
By Dennis Norman, on March 18th, 2010 Dennis Norman According to the Economics and Mortgage Market Analysis report just published by Fannie Mae, the weather was the culprit for the slow-down in home sales at the beginning of this year however, we did not get the boost they were anticipating from the extension of the tax credits. “Unfortunately, despite the high hopes associated with the extended and expanded homebuyer tax credit, housing activity appears to have faced a setback that went beyond the impact of adverse weather conditions. ” On a somewhat positive note, the analysts state they view the housing setback “to be a temporary one, and continue to expect activity to rebound later in the year but at a lower trajectory than previously projected.”
The report did not have much in the form of good news concerning new home sales and construction, citing:
- Residential construction spending increased in January, however, “the gain was entirely due to expenditures on home improvement.”
- Spending on new construction fell despite a modest increase in units of housing starts during the month, as the average cost per unit declined sharply.
- Homebuilding activity has improved substantially from its depressed level a year ago, with single-family starts reaching 33 percent above their level in January 2009. A leading indicator of starts pointed to continued increase in the near term, as single-family permits rose for the third consecutive month.
- Both new and existing home sales dropped sharply in January. New home sales fell for the third consecutive month in January to a level that surpassed the previous low recorded a year ago. A string of declines in new home sales caused the months’ supply to increase in each of the past three months, reaching the highest level since May 2009. Existing home sales have fared better. Despite two consecutive sharp drops, January sales remained nearly 12 percent above their record low.
Looking forward, here is what the Fannie Mae analysts are predicting:
- Home sales will likely fall further in February, suggested by a sharp decline in the pending home sales index in January. Furthermore, mortgage applications to purchase homes have remained near their lowest level since 1997, according to the four-week moving average of the Purchase Index in the Mortgage Bankers Association Weekly Applications Survey.
- Weak housing demand bodes poorly for the housing starts outlook. As a result, we revised downward our projected housing starts for the first half of this year.
- We continue to expect home sales to rebound in the second quarter, as homebuyers rush to close sales before the expiration of the second tax credit in June.
- In the third quarter, we expect a payback as the tax credit will likely pull some of the demand forward. By the end of the year, if the labor market improves as expected, sales should start to trend up on a sustainable basis.
- For all of 2010, we project a nine percent increase in total home sales, compared with an increase of 12 percent in the previous forecast. Home price declines moderated in 2009 and we expect the trend to continue this year.
One of the keys to the forecast is “if the labor market improves”……another big variable is going to be interest rates. They still remain at near historic lows, and the fed’s keep telling us that the risk of inflation is low but I’m a little skeptical about rates and are concerned we may be seeing higher mortgage rates by year end. If unemployment improves significantly and if rates hold reasonably steady hopefully we will see the recovery that is being forecasted. Couple of BIG IF’s in my humble opinion though….
By Robert Fishel, on March 17th, 2010 LAST CALL FOR HOMEBUYER’S TAX CREDITS!
Prospects are scurrying to sell and/or buy homes before next month’s tax credit deadline.” “It’s been absolutely nuts, I have showings galore and contracts are coming in left and right,” commented one real estate agent. To qualify for the credit, buyers must have fully executed sales contracts in place by April 30 and the deal must close by June 30. First-time home buyers are eligible for up to $8,000. Buyers who have owned a home for five consecutive years within the past eight years can get a credit of up to $6,500.
Other Available Credits!
Real Estate Tax and Energy-Efficiency Incentives are available for Missouri Home Buyers!
Qualified Missouri families who purchase a home in 2010 are eligible for a HOPE incentive equaling the amount of the 2009 real estate tax bill associated with the property they purchased, up to a maximum of $1,250.
MAXIMUM HOPE ENERGY EFFICIENCY INCENTIVE AVAILABLE -$1,750
Homebuyers who are approved for the real estate property tax HOPE incentive may also be eligible to receive up to an additional $500 if they bought a qualified, newlyconstructed, energy-efficient home; bought an existing home and remodeled it; or purchased items for the home, such as Energy Star® appliances, to make the home more energy efficient. The maximum combined total of the HOPE property tax incentive and the HOPE energyefficiency incentive is $1,750.
Eligibility Requirements:
- Homeowner must purchase and occupy a one-to-four unit Missouri home as their primary residence after January 1, 2010.
- MHDC income limits apply to household.
- The applicant must be at least 18 years old.
- Property cannot be purchased from a relative, or spouse, if married.
Contact Missouri Housing Development Commission for further information: Phone: 800-246-7973 or check out their webswite: www.MHDC.com.
St. Louis Mortgage Interest Rates – March 17 , 2010 *
- 30-year fixed-rate mortgage 4.875% no points
- 15-year fixed-rate mortgage 4.25% no points
- 5/1 adjustable rate mortgage 3.75% no points
- 3/1 adjustable rate mortgage 3.625% no points
- FHA/VA 30-year fixed rate mortgage 5.00%
- Jumbo 5/1 ARM 4.125% 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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Robert Fishel, on March 10th, 2010
Last Friday’s suprisingly strong payroll figures likely reinforced for many investors that the next time the Fed makes a change to their monetary policy strategy-it will likely to raise short-term interest rates. The actual date of such an event may be months away-but an increasing number of “stronger than expected” economic reports are making it difficult for mortgage interest rates to move lower. A growing number of business economists believe the U.S. central bank’s policy’s are too stimulative and expect the Federal Reserve to raise benchmark interest rates within six months.
The Fed has said continued high rates of unemployment and low inflation warrant holding rates exceptionally low for an extended period. Still, reports show the economy is recovering gradually, and some policy makers believe the Fed should begin to prepare markets for the beginning of the process of tightening financial conditions.
St. Louis Mortgage Rates – March 10 , 2010 *
- 30-year fixed-rate mortgage 5.00% no points
- 15-year fixed-rate mortgage 4.25% no points
- 5/1 adjustable rate mortgage 3.75% no points
- 3/1 adjustable rate mortgage 3.625% no points
- FHA/VA 30-year fixed rate mortgage 5.250%
- Jumbo 5/1 ARM 4.125% 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, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
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