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HARP 3.0 Rumor Mill: What a Possible Extension Means for Homeowners
Tweet Share on Facebook May 10, 2012 CommentEver since President Obama proposed a new refinance program in his State of the Union address in January, one that would help "every responsible homeowner," there has been chatter about HARP 3.0, a third version of the Home Affordable Refinance Program originally announced in 2009.
Recently those rumors have intensified, as the Obama administration steps up support for legislative proposals to extend refinancing to more homeowners.
Although no specifics have been given, there is general agreement that HARP 3.0 would allow underwater homeowners to refinance even if their mortgages were not owned or guaranteed by Fannie Mae or Freddie Mac, something that had been a prerequisite with HARP 1.0 and 2.0.
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Will Mortgage Principal Reductions Work?
Tweet Share on Facebook May 10, 2012 Comment (1)Mortgage principal reductions are in the news again as Bank of America announced this week that it will offer them to more than 200,000 borrowers. Should more widespread programs come, principal forgiveness is most likely to be offered to borrowers who are deeply underwater and who have already experienced some level of financial distress, just as Bank of America detailed earlier this week.
But do these offers provide any value? Who decides who is eligible? Will borrowers still be "underwater" if they do get one?
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Marijuana Growers Moving to Suburbia
Tweet Share on Facebook May 10, 2012 Comment (9)A quiet, suburban neighborhood is probably the last place you would expect to find a den of druggies with an indoor marijuana farm.
But thanks to a brutal housing crisis that has driven down home prices and left foreclosures littering the streets of many once-tony neighborhoods, organized marijuana growers are moving their operations to America's suburbs to take advantage of affordable, spacious houses, according to a recent New York Times report.
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Spring Housing Markets Showing The Most Bounce
Tweet Share on Facebook May 10, 2012 Comment (2)Phoenix. Miami. Detroit.
Just a short while ago, many experts thought the twin scourges of overbuilding and massive foreclosure rates would cast a dark shadow over those markets for years to come.
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Fannie Mae Dodges Another Government Bailout
Tweet Share on Facebook May 9, 2012 Comment (1)Mortgage giant Fannie Mae avoided having to ask the Treasury department for another handout after financial results released Wednesday showed a better financial outlook for the government-sponsored enterprise.
It's the first time since Fannie Mae entered conservatorship in 2008 that the company hasn't needed a quarterly financial pick-me-up from the government. The agency has received $116 billion in aid from the Treasury Department thus far and a total of $170 billion in taxpayer funds overall, the costliest bailout of the financial crisis.
Fannie Mae reported $2.7 billion in net income for the first quarter of 2012, up from a $6.5 billion loss during the first quarter of 2011 and a $2.4 billion loss in the fourth quarter of 2011. The company's comprehensive income of $3.1 billion covers its required $2.8 billion payment to the Treasury.
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4 Housing Market Trends for Spring 2012 (and Beyond)
Tweet Share on Facebook May 8, 2012 Comment (1)Should you take the homeownership plunge or steer clear until conditions even out?
That's the dilemma facing many Americans this year as they weigh the benefits and risks of wading into a treacherous housing market.
The current landscape is rife with uncertainty, with mortgages remaining a huge stumbling block for would-be buyers, along with home values continuing to drop, according to recent data.
Still, there are a few themes housing market experts are looking out for in the near future:
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Mortgage-Bond Bigwig Lewis Ranieri Calls Housing Bottom
Tweet Share on Facebook May 7, 2012 Comment (1)The housing market has reached bottom, according to mortgage bond pioneer Lewis Ranieri, joining a growing chorus of other expert voices who say the long slog downward might finally be coming to an end.
Though there's still concern that home values have more room to fall this year, "many, myself included, think we are at a bottom," Ranieri said according to Bloomberg.
Speaking at conference hosted by the Mortgage Bankers Association, Ranieri added that the low-point will likely show up in second or third quarter numbers.
Meanwhile, recent home value data from the widely-followed S&P/Case-Shiller Index reaffirmed fears that prices were still dropping in most metro areas across the country.
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3 Trends in Mortgage Finance for Spring 2012 (and Beyond)
Tweet Share on Facebook May 7, 2012 Comment (1)The housing and mortgage markets have seen their fair share of ups and downs this year, making it difficult to predict what the next month holds in store much less the rest of the year.
Still there are a few themes experts say are likely to surface as the year goes on. Here's what to look out for in mortgage financing this spring:
Mortgage rates will rise (modestly). How low can they go? Not much further, experts say. Although rates dropped to a new all-time low last week, chances are rates are heading up in the near term, especially if the economy strengthens.
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Fixed Mortgage Rates Fall to All-Time Low on Weak GDP Report, Euro Zone Concerns
Tweet Share on Facebook May 3, 2012 CommentIf you thought mortgage rates were as low as they could go, think again. Mortgage rates are dropping, this time to a new all-time low.
Average rates for a 30-year fixed-rate mortgage sank to 3.84 percent, Freddie Mac reported Thursday, down from 3.88 percent last week and beating out the previous record low of 3.87 percent in early February this year.
To put things in perspective, averages rates this time last year were almost 1 percent higher.
"Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week," Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.
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National Mortgage Settlement Monitor Joseph Smith Weighs in on Progress in Exclusive Interview
Tweet Share on Facebook May 2, 2012 Comment (1)After all the pomp and circumstances a couple of months ago, we haven't heard much when it comes to the National Mortgage Settlement.
Hailed as a "landmark" and "unprecedented" agreement by the federal government and state attorneys general, the $25 billion deal was approved by the courts in early April, buoying hopes that relief could finally be on the way for some struggling homeowners.
But while there was much praise and hope following the February announcement, more work lies ahead when it comes to providing relief for homeowners and "fixing" the way banks treat borrowers in financial distress.
That's where Joseph Smith, Jr. comes in. Smith recently signed on as the Monitor in charge of overseeing the implementation of the National Mortgage Settlement, no small job even for a veteran of the banking industry like himself.
In an exclusive interview with U.S. News and World Report, Smith said he's confident the settlement is a step in the right direction.
