Archives for March 2012

Mortgage Rates Drop Under 4.00%

By Mike Colpitts The 30-year fixed rate mortgage dropped to 3.99% or just below the 4.00% barrier this week, according to Freddie Mac. The dip in average mortgage rates from 4.08% last week came on mixed economic news, with reports on consumer confidence over the U.S. economy and the housing market showing weaker results. The drop in rates also resulted from lower yields paid for U.S. Treasury bonds. The 15-year fixed rate loan, which is … [Read more...]

Former Bank CFO Pleads Guilty to Fraud

By Mike Colpitts The former chief financial officer of one of the U.S. largest mortgage banking operations has plead guilty to committing bank fraud and lying to federal investigators in a $2.9 billion scheme that drove Taylor, Bean & Whitaker and Colonial Bank out of business. Delton de Armas may receive up to 10 years in prison for his part in the conspiracy, which included the mortgage company’s CEO and seven other employees. De … [Read more...]

Economists Forecast Sharp Real Estate Rebound

By Mike Colpitts A group of leading U.S. economists forecast broad improvements in the nation's economy, real estate capital markets and the housing market through 2014. The projection was issued after the Urban Land Institute surveyed economists for its new real estate consensus forecast. The survey of 38 economists across the country, found that 2012 may mark the beginning of a turnaround in the housing market. Single family home starts, … [Read more...]

Mortgages Pull Back as Rates Rise

For the second week in a row applications for home mortgages declined, led by a drop in home refinancing. A 4.6% pull back in refinances demonstrates the softer mortgage market, which seems likely to repeat a year similar to last year of slower activity, according to the Mortgage Bankers Association survey. A hike in mortgage rates helped to drive the slowdown. A fully executed 30-year fixed rate mortgage obtained by consumers averaged 4.54%, … [Read more...]

High Priced Home Sales Soar

By Mike Colpitts High end home sales on the San Francisco peninsula driven by the soon to be released Facebook IPO and soaring prices of Google stock aren't the only place in the U.S. that is seeing luxury home sales above at least $1 million soar. “It’s like someone flipped the switch,” said Santa Barbara, California Realtor Rebecca Riskin, who specializes in the affluent Montecito area of posh Santa Barbara. “In the past few years we … [Read more...]

Underhanded Banking Tactics in Full Swing

By Ryan Jackson Unethical tactics used by banks and lender mortgage servicing companies to get homeowners to leave their homes are still being used, despite new guidelines issued to banks as a result of the $25 billion agreement between the nation’s largest five lenders and state attorney generals, according to the founder of an online foreclosure services firm. “The biggest disadvantage that a homeowner has in a foreclosure situation is … [Read more...]

Skin in The Game Real Estate Crossroads

By Anwar Elgonemy Skin in the Game is a new book about the bloody real estate cross roads where real estate and high-finance meet. The book is not a traditional textbook about real estate finance, nor is it one of the numerous post-mortem publications that have covered the intricacies of the subprime mortgage crisis. As opposed to such treatises, I concentrate on the underlying fault lines in America’s financial system and its hard-hit real … [Read more...]

Underwater Mortgage Reductions Likely

By Mike Colpitts Federal officials are reviewing the possibility of starting mortgage principal reductions for underwater homeowners, according to the chief executive officer of Freddie Mac. The review was triggered by a U.S. Treasury Department offer that would triple payments to mortgage investors who allow the reductions through the Home Affordable Modification Program (HAMP). A new analysis reported by investigative website ProPublica … [Read more...]

5 Reasons to be Preapproved for a Mortgage

By Ryan Jackson Real estate agents push their clients to get prequalified for a home loan all the time and in today's tough economy and tight credit market if you are seriously considering the purchase of a home you should follow your agent's advice, since getting preapproved for a home mortgage can save you lots of headaches in the future. The preapproval process takes just a little more work than being prequalified for a home mortgage, … [Read more...]

Petition to Halt Strategic Defaults Launches

By Ryan Jackson A Florida loan officer angered by bank representatives telling homeowners to default on their underwater mortgages in efforts to be granted bank assisted short sales has started a petition drive to halt the massive movement. Pam Marron, a loan officer in Tampa, Florida for 27 years has posted the petition online at WE the PEOPLE at whitehouse.gov to highlight the banking institutions advice. “This is the primary reason that … [Read more...]