Home prices fall - Fannie Mae reacts
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- MortgageLoan.com | March 26, 2008
It's widely acknowledged that housing is a key component of the economy. In fact, housing represents 15.2 percent of the U.S gross national product so worried glances must have been exchanged when a recent survey released earlier today revealed home prices in 20 U.S metropolitan areas fell in January by the most on record.
The private survey also indicates a 10.7 percent drop from January on the S&P/Case-Shiller index. The gauge has fallen for 13 consecutive months and a clear indication that the housing recession is deepening.
In other news, Fannie Mae, the largest provider of money for US home loans, tightened an exception to a policy reinstated last year to limit credit losses, potentially making it harder for consumers to refinance lower cost loans.
In a memo to lenders posted on its website on Monday, the government-chartered company will no longer allow homeowners to refinance loans it either owns or has packaged into bonds at loan-to-value ratios in areas with falling home prices if they're going to use proceeds to pay off a second mortgage.
Fannie Mae, which posted recorded $3.55 billion fourth-quarter loss, also this month said it would not allow cash-out refinancing among the mortgages larger than $417,000, that Congress this year temporarily allowed it and Freddie Mac to finance in certain areas.
Bankruptcy Reform Back on the Table
- By:
- Bill Rice - MortgageLoan.com | November 21, 2008
One of the earliest ideas for helping homeowners facing mounting mortgage debt and potential foreclosure on their home was to reform bankruptcy laws. The concept is now officially back on the table, introduced into the Congressional lame-duck session by Senator Richard Durbin (D-IL).
TARP is Closed for Relief Until Further Notice
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- Bill Rice - MortgageLoan.com | November 20, 2008
Remember what a crisis the $700 billion mortgage market bailout was--the very existence of the American financial order hung in the balance.
Fixing the Housing Market, Lots of Ideas...Any Answers?
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- 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
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- 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.
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