Archives for July 2011

MERS Orders Foreclosure Halt

By Mike Colpitts The electronic mortgage registration company at the center of the robo signing scandal has ordered a halt to foreclosures in an effort to protect itself from legal problems in the growing foreclosure crisis. Mortgage Electronic Registration Systems (MERS) has issued a new policy on its website advising members not to foreclose or start legal proceedings in bankruptcy courts in the name of the company. The change comes … [Read more...]

Treasury Bonds Nudge Interest Rates Higher

By Mike Colpitts Lower rates paid on U.S. Treasury bonds sent mortgage rates higher this week as legislators in Washington, D. C. argued over an agreement on the national budget limit going into the August 2nd deadline. Rates on 30-year fixed rate loans averaged 4.55%. The 15-year fixed rate loan remained the same as a week ago at 3.66%. Investors are looking for safe havens to invest their money in as Congress debates the issues related … [Read more...]

Mortgages Fall on Interest Rate Hike

Mortgage activity fell as interest rates saw a hike last week on signs of a weaker economy and trouble related to the U.S. budget debacle, according to the Mortgage Bankers Association. The composite index, a combination of refinancing and new home mortgage applications had a fall of 5% from the prior week as an increasing number of homeowners put off refinancing. The seasonally adjusted refinance index dropped 5.5%, while the purchase index … [Read more...]

States Balk at Banks Foreclosure Deal

By Kevin Chiu A move by five of the U.S. largest banks to reportedly limit their liability over illegal foreclosures is being rejected by at least three states now investigating lenders for their roll in the robo signing scandal. Massachusetts Attorney General Martha Coakley added the state’s name to the growing list of states refusing to sign on to any agreement worked out by negotiators from state Attorneys General offices in all 50 states … [Read more...]

Mortgage Rates to Skyrocket on Economic Budget Failure

By Mike Colpitts Failures by Congress and President Barack Obama to reach a deal on the U.S. economic budget is likely to trigger a massive hike to skyrocket mortgage interest rates, sending rates up at least 1 to 2½% within just a few short days following an impasse. The sudden rise in rates would essentially halt home sales and send any chance of a recovery in the housing market out the window. The blunt analysis on the Congressional … [Read more...]

Man Convicted in Real Estate Ponzi Scheme

By Mike Colpitts A federal jury has convicted a Colorado man on felony charges related to running a $30 million real estate Ponzi scheme after his son pled guilty to being a partner in the crime spree. Philip R. Lochmiller, Sr. was found guilty of money laundering, mail fraud charges and conspiracy in U.S. District Court. The Lochmillers were indicted by a federal grand jury for the Ponzi scheme that collected at least $30 million from … [Read more...]

Taking a Loss On Your Own Home

By Kevin Chiu It’s a beating that's hard to take –a financial loss on your own home. Just a handful of years ago you couldn’t go any where in public without over hearing how hot the housing market was. People were buying and selling property as much as they could afford or were allowed to. Then the music stopped. Like a river that flowed into a concrete dam, bankers abruptly turned off the home lending valve. The problems started in the … [Read more...]

Company Will Pay You to Book Vacation

A U.S. based online vacation website is paying vacationers cash money to stay at locations booked through their site. Resorts Nationwide, Inc. specializes in representing independent timeshare owners throughout the nation. The program offers customers cash to use the firm’s website to rent or buy timeshares from existing owners. Timeshares are the fastest growing sector of the travel industry with the cost of vacations, including airfare, … [Read more...]

Mortgage Lender Agent Licensing Mandatory

By Mike Colpitts As a result of the unethical and illegal lending practices that helped produce the mortgage meltdown and real estate collapse, Congress enacted the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) in 2008 as part of the Dodd-Frank financial reform. The federal law mandating mortgage agent licensing goes into effect in just one week. The effort is part of the wide ranging federal move to improve consumer … [Read more...]

Mortgage Defaults Surge Higher

By Kevin Chiu Mortgage defaults, the first step homeowners face in the foreclosure process, surged higher during the month of June demonstrating an increase in future anticipated foreclosures growing at the fastest rate in more than a year, according to Lender Processing Services, a real estate data supplier which tracks defaults. The surge in mortgage defaults shows the expected rise in foreclosures may be just months off as the housing … [Read more...]