03/27/2009 Mortgage Monitor

MARCH 27, 2009

ANOTHER RECORD LOW SET FOR LONG-TERM MORTGAGE RATES THIS WEEK
The 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
Click Here for more details. View Historical Rates: Click Here

FannieMae DU Refi Plus
To allow more borrowers to take advantage of today's historically low interest rates FannieMae is extending its refinance offerings through DU Refi Plus™. DU Refi Plus™ will streamline the underwriting of refinance transactions for potentially millions of current mortgage holders. Some of the features include and limitations include:

• Must be a FannieMae loan – Click here to verify.
• Appraisal may not be required.
• Reduced employment and income documentation requirements.
• Not required to go through your current lender.
• New loans must be either 10-40 year fixed rate mortgages or ARMS with initial 5 years fixed.
• No subordinate financing may be paid off with new loan.
• Cash back in an amount no more than the lesser of 2% of the new mortgage loan balance or $2000.
• Relaxing of minimum credit score requirements.
• Available for 1-4 unit primary residence and investment properties.
• Loan to Value Ratios (LTV%) up to 105%
• Mortgage Insurance (PMI) may not be required.

This program will be implemented in two phases, April 4th and May 2nd.

MORTGAGE ORIGINATIONS MAY DOUBLE TO $3.1 TRILLION THIS YEAR
Mortgage originations may double to $3.1 trillion this year as historically low interest rates and looser financing standards at Fannie Mae and Freddie Mac lure more borrowers, Bank of America Corp. analysts said.Click Here for full article.

Mike Paige

03/19/2009 Mortgage Monitor

MARCH 19, 2009

BOND YIELDS PULL LONG-TERM MORTGAGE RATES DOWN TO NEAR RECORD LOWS THIS WEEK
The 30-year fixed-rate mortgage averaged 4.98 percent with an average 0.7 point for the week ending March 19, 2009, down from last week when it averaged 5.03 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since the week ending January 15, 2009, when it hit an all-time low of 4.96 percent in Freddie Mac's weekly survey.
Click Here for more details.


WATCH MORTGAGE RATES
On the news that the Federal Reserve would buy as much as $300 billion of long-term U.S. Treasury securities, the rate on a 30-year fixed mortgage fell to 4.75% from around 5% on Wednesday. Will rates go even lower?
Monitor Average Rates: Click Here
View Historical Rates: Click Here

ATTENTION FIRST TIME BUYERS

• Mortgage Rates at historic lows.
• Home prices down as much as 30% in some areas from their peak levels in mid-2006.
• Over 4 million Realtor listings nationwide.
• Up to $8000.00 tax credit (10% of purchase price) for First Time Buyers (have not owned a home in past 3 years).
• Little or no down payment financing options still available.

Mike Paige

03/13/2009 Mortgage Monitor

MARCH 13, 2009

MORTGAGE RATES FALL BACK A BIT THIS WEEK
The 30-year fixed-rate mortgage averaged 5.03 percent with an average 0.7 point for the week ending March 12, 2009, down from last week when it averaged 5.15 percent. Last year at this time, the 30-year FRM averaged 6.13 percent.
Click Here for more details. Click Here for historical rates.

FANNIE MAE DU Refi Plus™ COMING APRIL 4 2009
Program Highlights:

• No current lender requirement.
• The maximum LTV ratio for Refi Plus is 105%. There is no maximum CLTV or HCLTV; however, new subordinate financing is not permitted.
• For new refinance transactions with an LTV that exceeds 80%, mortgage insurance may not be required.
• Full appraisal may not be required.
• Lender-purchased mortgage insurance (LPMI) is permitted
• Refi Plus loan may be a primary residence, second home, or investment property.
• The existing mortgage must be current.
• No minimum credit score required.
  Click Here for additional details.
  Does Fannie Mae own your mortgage? Click Here

LOOK FOR LENDER MINIMUM CREDIT SCORE CHANGES FOR FHA
I am starting to get a number of our lenders sending out e-mails that FHA minimum credit scores are increasing to 620 for loans at $417,000 or less and increasing to between 640 and 660 for jumbo FHA loans above $417,000 to the county limits.

APRIL 1 2009 – LOAN OFFICER REGISTRATION DEADLINE
The Mortgage Brokers, Lenders and Servicers Act, as amended requires each mortgage broker, lender and servicer licensee/registrant to be registered / licensed with the Office of Financial and Insurance Regulation by 04/01/2009. Click Here to verify loan officer registration.

Mike Paige

03/06/2009 Mortgage Monitor

MARCH 06, 2009

BOND YIELDS PUSH MORTGAGE RATES UP IN LATEST FREDDIE MAC SURVEY
The 30-year fixed-rate mortgage averaged 5.15 percent with an average 0.7 point for the week ending March 5, 2009, up from last week when it averaged 5.07 percent. Last year at this time, the 30-year FRM averaged 6.03 percent.
Click Here for more details. Click Here for historical rates.

HOMEOWNER AFFORDABILITY AND STABILITY PLAN
The plan claims it will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. The plan is purported to assist responsible homeowners on the verge of defaulting, in addition would prevent neighborhoods and communities from being pulled over the edge, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.
Click Here to learn more. Click Here for full guidelines.

MORTGAGE BANKRUPTY BILL APPROVED IN HOUSE
The House approved "cram down" legislation that would allow troubled homeowners to ask bankruptcy judges for relief from mortgage debts.
Click Here to read more.

APRIL 1 2009 – LICENSING DEADLINE
The Mortgage Brokers, Lenders and Servicers Act, as amended requires each mortgage broker, lender and servicer licensee/registrant to be registered / licensed with the Office of Financial and Insurance Regulation by 04/01/2009. Low Number of registrations received Click Here to read more. Click Here to verify loan officer registration.

Mike Paige

The beginning - 09/30/1999

Fannie Mae Eases Credit To Aid Mortgage Lending
The New York Times
September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. Read full article.

Mike Paige

02/20/2009 Mortgage Monitor

FEBRUARY 20, 2009

MORTGAGE RATES FALL FOR ALL PRODUCTS THIS WEEK
The 30-year fixed-rate mortgage (FRM) averaged 5.04 percent with an average 0.7 point for the week ending February 19, 2009, down from last week when it averaged 5.16 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
Click Here for more details. Click Here for historical rates.

THE HOUSING BAILOUT – WHO QUALIFIES?
First time buyer credits, refinance, modifications, relocation, double glazing and reverse mortgages.Click Here for full article

EVEN THE RICH WORRY ABOUT CREDIT SCORES
Getting the best rates could save thousands of dollars a year. Raising a score from a range of 640-659 to at least 760 could save someone with a 30-year, $500,000 fixed mortgage an average of $344 a month, according to Fair Isaac's Web site. Click Here for full article.

Mike Paige

Origins of the Mortgage Mess.

In May of 2008 a NPR broadcast of This Amercan Life highlighted the origins of the mortgage meltdown with a episode titled "The Giant Pool of Money". I found it engaging and interesting. Well worth reading or listening to if you have an interest in how the mortgage mess began.

This American Life - The Giant Pool of Money (audio)

This American Life - The Giant Pool of Money (transcript)


Mike Paige