Archives for January 2012

FHA Cracks Down on Mortgage Lenders

By Kevin Chiu The Federal Housing Administration (FHA) will toughen its standards to approve mortgage lenders doing business with the government, and force more banks and mortgage companies to buy back defaulted mortgages in a major move to crack down on mortgage lenders. The federal government’s changes are part of an effort to improve mortgage lending conditions and reduce losses on home mortgages as result of billions of dollars in losses … [Read more...]

Real Estate Markets Most Likely To Recover

The five most likely U.S. metropolitan real estate markets to recover in 2012 are demonstrating signs of economic recovery in at least a couple of areas, despite the troubled U.S. economy. However, there are few other similarities aside from growing employment and a climate for change. A sense of cautious optimism prevails in Miami, Florida where the real estate market is already rebounding. Home and condominium sales along with prices are … [Read more...]

Feds Launch Mortgage Task Force Investigation

By Mike Colpitts More than three years after announcing he would launch a federal task force to investigate the mortgage crisis, President Barack Obama has finally launched a federal probe into the U.S. largest financial institutions. New York Attorney General Eric Schneiderman, who pulled his state out of the 50 state robo-signing investigation, sent subpoenas to the largest banks to start the investigation. The president announced the … [Read more...]

Real Estate Investment Concentrated in 30 Cities

By Mike Colpitts More than half of all real estate investments are concentrated in 30 major cities across the world, according to a new study. Twenty-five percent of property investments are in five metropolitan areas, including New York. The study, conducted by commercial real estate company Jones Lang LaSalle, found that major cities house most real estate investments across the globe. But the firm says the concentration of property … [Read more...]

Banks Mortgage Settlement Hangs in Jeopardy

By Kevin Chiu A proposed settlement between big money mortgage giants and U.S. states hangs in jeopardy after Delaware rejected the settlement as an unfair deal for homeowners. State Attorney General Beau Biden broke with fellow AGs rejecting the settlement. The proposed settlement between the attorney generals would dedicate $17-billion from lenders to go towards reducing mortgage principal for struggling homeowners. Another $5 billion … [Read more...]

Mortgage Rates Jump on Fewer Applications

By Mike Colpitts Banks and mortgage companies raised mortgage rates on new borrowers this week as the demand for new home loans and refinancing sunk, according to Freddie Mac. The rate on the benchmark 30-year fixed rate mortgage saw a jump to 3.98%, a tenth of one-percent higher than last week. The rate was at its all-time record low hitting 3.88% a week ago, according to the Freddie Mac survey which accounts for about 75% of all U.S. … [Read more...]

Refinancing Underwater Mortgage Program Proposed

By Mike Colpitts Following weeks of rumors and speculation, President Barack Obama said he would be sending Congress a proposal to provide refinancing for underwater homeowners that will save borrowers up to $3,000 a year during his State of the Union Speech last night. The announcement could not have come with better timing. Mortgage applications fell for the first time in three weeks for the week ending Jan. 20th, indicating that the … [Read more...]

Real Estate Investment Fund President Pleads Guilty

By Mike Colpitts The organizer and former president of a real estate investment fund pled guilty to defrauding investors in nearly a $10-million scam of two large apartment complexes and his investment fund. The plea could result in as long as 30 years in prison for the former funds president. Thomas B. Evans, 47, of Centennial, Colorado entered the plea in U.S. District Court in Denver after being charged with a single count of conspiracy … [Read more...]

Another $100-Billion Underwater Housing Loss

By Kevin Chiu Politics is a strange and nasty business and the business of walking the fence during this election year is increasingly damaging the U.S. economy. In order to help mend the economy, the U.S. will eventually make the tough but inevitable decision to cut principal on underwater mortgages, and take an estimated $100 billion tax payer housing loss. The decision won’t come before November’s election since little ever gets done … [Read more...]

Cash Buyers Pushing Home Prices Lower

By Mike Colpitts Cash buyers are putting undue downward pressure on home prices, and sending the values on homes much lower than would otherwise be developing, according to a survey by Campbell Inside Mortgage Finance. The firms Housing Pulse Tracking Survey is taken monthly. The December survey also showed that many of the purchasers are investors, who account for one out of three transactions or 33.2%. A huge 74% of investor purchases … [Read more...]