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St Casimirs Mortgage Minute. . . Help in navigating the mortgage application process. Get advice from Nelson Bayne, 410-342-1404 mortgage specialist with over 35 years of experience in the Baltimore metro area.
Monday, October 29, 2012
Friday, October 26, 2012
Monday, October 22, 2012
Existing Home Sales Up
Sales of existing homes rose 1.7 percent in September to a seasonally adjusted annual rate of 4.75 million units, the National Association of Realtors reported Friday. “Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery,” NAR Chief Economist Lawrence Yun said. “More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.
--ABA Daily Newsbytes
--ABA Daily Newsbytes
Friday, October 19, 2012
Friday Rate Update
Mortgage Rates Drop; 15-Year Rate Sets Another Record Low
The average interest rate on 30-year, fixed-rate mortgages fell to 3.37 percent this week from 3.39 percent last week, Freddie Mac reported yesterday. A year ago, rates for 30-year mortgages averaged 4.11 percent.
Meanwhile, the average rate on 15-year, fixed-rate mortgages fell to a record low of 2.66 percent this week from 2.70 percent last week. A year ago, rates for 15-year mortgages averaged 3.38 percent.
--ABA Daily Newsbytes
The average interest rate on 30-year, fixed-rate mortgages fell to 3.37 percent this week from 3.39 percent last week, Freddie Mac reported yesterday. A year ago, rates for 30-year mortgages averaged 4.11 percent.
Meanwhile, the average rate on 15-year, fixed-rate mortgages fell to a record low of 2.66 percent this week from 2.70 percent last week. A year ago, rates for 15-year mortgages averaged 3.38 percent.
--ABA Daily Newsbytes
Tuesday, October 16, 2012
Home Loans May Get Shield
Federal regulators are considering giving mortgage lenders protection from certain lawsuits, according to insiders, a move designed to encourage lending to well-qualified borrowers. The proposal for the first time would establish a basic national standard for loans, known as a "qualified mortgage." As part of its deliberation, the Consumer Financial Protection Bureau is considering providing a full legal shield for high-quality loans that qualify, mandating that judges rule in lenders' favor if consumers contest foreclosures. For a smaller category of loans that still meet the "qualified mortgage" guidelines but carry higher interest rates, lenders would receive fewer protections. In those cases, consumers could argue in court that lenders should have known that they couldn't afford the mortgage.
From "Home Loans May Get Shield"
Wall Street Journal (10/16/12) Zibel, Alan
Federal regulators are considering giving mortgage lenders protection from certain lawsuits, according to insiders, a move designed to encourage lending to well-qualified borrowers. The proposal for the first time would establish a basic national standard for loans, known as a "qualified mortgage." As part of its deliberation, the Consumer Financial Protection Bureau is considering providing a full legal shield for high-quality loans that qualify, mandating that judges rule in lenders' favor if consumers contest foreclosures. For a smaller category of loans that still meet the "qualified mortgage" guidelines but carry higher interest rates, lenders would receive fewer protections. In those cases, consumers could argue in court that lenders should have known that they couldn't afford the mortgage.
From "Home Loans May Get Shield"
Wall Street Journal (10/16/12) Zibel, Alan
Monday, October 15, 2012
ICBA Backs Broader Exemptions from Mortgage-Servicing Proposals
ICBA called on the Consumer Financial Protection Bureau to exempt small mortgage servicers from proposed servicing rules. In a comment letter to the bureau, ICBA advocated exempting servicers that service 10,000 or fewer mortgage loans from a proposed rule that would require more burdensome monthly mortgage statements. ICBA wrote that the bureau’s proposed threshold of 1,000 loans is too low to provide any real relief for community bank mortgage servicers.
Read more here.
ICBA called on the Consumer Financial Protection Bureau to exempt small mortgage servicers from proposed servicing rules. In a comment letter to the bureau, ICBA advocated exempting servicers that service 10,000 or fewer mortgage loans from a proposed rule that would require more burdensome monthly mortgage statements. ICBA wrote that the bureau’s proposed threshold of 1,000 loans is too low to provide any real relief for community bank mortgage servicers.
Read more here.
Wednesday, October 10, 2012
US Sues Wells Fargo Over FHA-Insured Loan Defaults
The federal government has filed suit against Wells Fargo, alleging that the lender misrepresented the quality of thousands of loans in order to be eligible for federal loan insurance. The lawsuit seeks to recover "hundreds of millions of dollars" that the Federal Housing Administration paid out after borrowers defaulted on Wells Fargo mortgage loans. The lawsuit alleges that between May 2001 and October 2005, Wells Fargo certified that over 100,000 mortgage loans were eligible for the insurance. But "a very substantial percentage of those loans — nearly half in certain months" were not eligible, according to the lawsuit.
From "US Sues Wells Fargo Over FHA-Insured Loan Defaults"
Associated Press (10/09/12)
The federal government has filed suit against Wells Fargo, alleging that the lender misrepresented the quality of thousands of loans in order to be eligible for federal loan insurance. The lawsuit seeks to recover "hundreds of millions of dollars" that the Federal Housing Administration paid out after borrowers defaulted on Wells Fargo mortgage loans. The lawsuit alleges that between May 2001 and October 2005, Wells Fargo certified that over 100,000 mortgage loans were eligible for the insurance. But "a very substantial percentage of those loans — nearly half in certain months" were not eligible, according to the lawsuit.
From "US Sues Wells Fargo Over FHA-Insured Loan Defaults"
Associated Press (10/09/12)
Tuesday, October 9, 2012
CFPB's New Regs Tightening Access to Credit
Mortgage Lenders Tighten Requirements Ahead of QM Rule
Many lenders are not waiting for regulators to define what a qualified mortgage is and instead are writing their own rules. Most notably, they are being super strict about debt-to-income ratios, which is limiting some borrowers from getting a home loan. Higher credit scores and stricter documentation requirements also are restricting access to credit. The Consumer Financial Protection Bureau is expected to finalize a rule in January requiring that lenders verify a borrower's ability to repay a loan unless the loan falls under the definition of a qualified mortgage. The qualified mortgage provision is expected to establish a general set of standards about a borrower's ability to repay a mortgage, including debt ratios and employment status.
From "Mortgage Lenders Tighten Requirements Ahead of QM Rule"
American Banker (10/08/12) Berry, Kate
Many lenders are not waiting for regulators to define what a qualified mortgage is and instead are writing their own rules. Most notably, they are being super strict about debt-to-income ratios, which is limiting some borrowers from getting a home loan. Higher credit scores and stricter documentation requirements also are restricting access to credit. The Consumer Financial Protection Bureau is expected to finalize a rule in January requiring that lenders verify a borrower's ability to repay a loan unless the loan falls under the definition of a qualified mortgage. The qualified mortgage provision is expected to establish a general set of standards about a borrower's ability to repay a mortgage, including debt ratios and employment status.
From "Mortgage Lenders Tighten Requirements Ahead of QM Rule"
American Banker (10/08/12) Berry, Kate
Thursday, October 4, 2012
Quick Updates
Burdened by Old Mortgages, Banks Are Slow to Lend Now
Thousands of aspiring homeowners are being locked out of the market as Fannie Mae and Freddie Mac force banks to buy back loans made during the boom years and sold to the two firms. According to Inside Mortgage Finance, they have asked banks to repurchase $66 billion in loans made between 2006 and 2008. Banks are tightening underwriting in order to ward off such demands in the future
From "Burdened by Old Mortgages, Banks Are Slow to Lend Now"
Wall Street Journal (10/04/12) Timiraos, Nick
Mortgage Lenders Brace for CFPB Exams; Fair-Lending Is Top Concern
Mortgage lenders discussing Consumer Financial Protection Bureau exams at a recent conference expressed concern about fair lending enforcement and the agency's independent litigation authority. It has scheduled 48 exams of banks and nonbank mortgage lenders so far; and experts believe it is focusing on the quality of data reported to regulators under the Home Mortgage Disclosure Act and on mortgage discrimination, even if it is unintentional.
From "Mortgage Lenders Brace for CFPB Exams; Fair-Lending Is Top Concern"
American Banker (10/04/12) Berry, Kate
Thousands of aspiring homeowners are being locked out of the market as Fannie Mae and Freddie Mac force banks to buy back loans made during the boom years and sold to the two firms. According to Inside Mortgage Finance, they have asked banks to repurchase $66 billion in loans made between 2006 and 2008. Banks are tightening underwriting in order to ward off such demands in the future
From "Burdened by Old Mortgages, Banks Are Slow to Lend Now"
Wall Street Journal (10/04/12) Timiraos, Nick
Mortgage Lenders Brace for CFPB Exams; Fair-Lending Is Top Concern
Mortgage lenders discussing Consumer Financial Protection Bureau exams at a recent conference expressed concern about fair lending enforcement and the agency's independent litigation authority. It has scheduled 48 exams of banks and nonbank mortgage lenders so far; and experts believe it is focusing on the quality of data reported to regulators under the Home Mortgage Disclosure Act and on mortgage discrimination, even if it is unintentional.
From "Mortgage Lenders Brace for CFPB Exams; Fair-Lending Is Top Concern"
American Banker (10/04/12) Berry, Kate
Monday, October 1, 2012
CFPB Study: Credit Scores Used by Consumers, Lenders Can Differ
About one of five consumers buying a credit score from a credit bureau are likely to receive a meaningfully different score than the one a lender would use in making a credit decision, according to a Consumer Financial Protection Bureau study released yesterday.
The Dodd-Frank Act-mandated study analyzed credit scores from a total of 200,000 files at TransUnion, Equifax and Experian to compare scores sold to consumers with those sold to creditors.
“A meaningful difference means that the consumer would be likely to qualify for different credit offers -- either better or worse -- than they would expect to get based on the score they purchased,” the CFPB said in a press release.
The agency emphasized that there’s no way consumers can know how the score they receive will compare with the score a creditor uses in making a lending decision. They therefore can’t rely exclusively on the credit score they receive to determine how lenders will view their creditworthiness.
The CFPB recommended that borrowers shop around for credit, check the credit report for accuracy, and dispute errors. The bureau will begin supervising consumer reporting agencies on Sept. 30
About one of five consumers buying a credit score from a credit bureau are likely to receive a meaningfully different score than the one a lender would use in making a credit decision, according to a Consumer Financial Protection Bureau study released yesterday.
The Dodd-Frank Act-mandated study analyzed credit scores from a total of 200,000 files at TransUnion, Equifax and Experian to compare scores sold to consumers with those sold to creditors.
“A meaningful difference means that the consumer would be likely to qualify for different credit offers -- either better or worse -- than they would expect to get based on the score they purchased,” the CFPB said in a press release.
The agency emphasized that there’s no way consumers can know how the score they receive will compare with the score a creditor uses in making a lending decision. They therefore can’t rely exclusively on the credit score they receive to determine how lenders will view their creditworthiness.
The CFPB recommended that borrowers shop around for credit, check the credit report for accuracy, and dispute errors. The bureau will begin supervising consumer reporting agencies on Sept. 30
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