Bank of America to Tighten Mortgage Standards
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- MortgageLoan.com | April 23, 2008
Bank of America (NYSE:BAC) on Tuesday outlined proposed plans to implement new lending guidelines for its consumer mortgage business ' as soon as is practical' following the completion of its proposed acquisition of Countrywide Financial Corp (NYSE: CFC).
The new changes include ending the origination of subprime mortgages, greatly reducing the number of no- or low- documentation loans issuing adjustable rate mortgages that have a much longer interest-only payment period in order to reduce huge resetting payments.
Speaking at a public hearing at the Chicago Federal Reserve, Bank of America Global Consumer Credit Executive Bruce Hammonds, said, "We recognize this tightening, by definition, restricts the availability of credit to some borrowers. However this will help ensure that those who get loans can afford to repay them."
Other loans, such as those conforming to government-sponsored entities Fannie Mae and Freddie Mac and fixed-period ARMs that provide low initial rates, but fixed payments and protections against steep payment increases will continue to be offered.
Fixing the Housing Market, Lots of Ideas...Any Answers?
- By:
- Bill Rice - MortgageLoan.com | November 19, 2008
Almost a year into the dawning of the housing crisis (many chronologist are setting that around the January 2008 crumbling of Countrywide) ideas continue to flow, but few seem to be the answer. In fact, this seems to be the growing consensus--there is no silver bullet.
G-20 Lots of Motion, Will There Be Action?
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- Bill Rice - MortgageLoan.com | November 18, 2008
The 20 most powerful industrial nations, and now the caretakers of an unprecedented global financial crisis, assembled in Washington DC over the weekend. Their mandate was broad and daunting--stabilize world markets.
FDIC Challenges Treasury with New Loan Modification Proposal
- By:
- Bill Rice - MortgageLoan.com | November 17, 2008
On the heels of the Treasury and Federal Housing Finance Agency's (FHFA) loan modification plan for Fannie Mae and Freddie Mac, the FDIC releases their own proposal. In this unprecedented, unilateral, and aggressive move by a Federal agency the FDIC is essential fighting a very public political battle directly with the Treasury and the current Administration.
Mortgage Rates Drop for Second Straight Week
- By:
- Bill Rice - MortgageLoan.com | November 14, 2008
Another week of dismal economic data have again pushed down mortgage rates. Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.14 percent, down from 6.20 percent last week. This demonstrates a steep decline from 6.46 percent two weeks prior.
US Treasury Shifts TARP Focus, Routs Global Markets
- By:
- Bill Rice - MortgageLoan.com | November 13, 2008
Unclear on what facts had changed, Paulson outlined a radical departure from the core premise of the original TARP proposal. The US Treasury is no longer considering the buying of troubled mortgage-backed assets, which have now dropped to about 42 cents on the dollar.
Government's Loan Modification Program May Fall Short
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- Bill Rice - MortgageLoan.com | November 12, 2008
Federal Housing Finance Agency (FHFA) Director James B. Lockhart unveiled the US government loan modification program to great anticipation. With over 300,000 properties under foreclosure filing according to RealtyTrac, a foreclosure tracking company, the relief can not come quick enough.
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