You are currently browsing the category archive for the 'Uncategorized' category.
Mortgage rates have moved back to less than 5 percent, which have been categorized by industry experts like Freddie Mac chief economist Frank Nothaft as “near a record low.” This move that may help boost home loan demand and lend support to the housing market recovery. On January 28, the average 30-year fixed-rate mortgage was 4.98 percent.
Affordability
Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.
Sources: National Association of Realtors, Freddie Mac
Many believe mortgage fraud is partly to blame for the wave of foreclosures that are swamping many housing markets. And a quick scan at national headlines speaks to the depth of the issue.
In early January alone, there were several high profile convictions:
- Six people in Boston were arraigned in a $2 million mortgage fraud scheme.
- A Naples, Fla. man was sentenced to seven years in prison and ordered to pay more than $11 million in restitution for setting up straw deals to obtain inflated mortgages.
- A Colorado man was sentenced to 31 years in prison after a mortgage fraud scheme.
- Two North Carolina men were sentenced for their part in a $6 million mortgage fraud scam.
- Two New Jersey men were convicted in a multimillion-dollar mortgage fraud and property flipping scheme.
Those are just a few of the many early January mortgage fraud headlines from coast to coast. Indeed, prosecution of mortgage fraud is on the rise as the U.S. Justice Department makes the issue a priority. U.S. Attorney A. Brian Albritton has publicly declared that “Mortgage fraud will not be tolerated.”
The Cost of Mortgage Fraud
When you examine the cost of mortgage fraud, it’s easy to see why the federal government is cracking down on the crime. Again, many believe mortgage fraud added to the financial crisis in the subprime mortgage industry and the fall of banks. Consider the latest statistics compiled by the Mortgage Asset Research Institute on the pervasiveness of mortgage fraud:
- As of March 2008, the Federal Bureau of Investigation (FBI) was investigating more than 1,200 mortgage fraud cases – that’s a 50 percent increase from 2006.
- The FBI also reports that about half of the mortgage fraud cases it is investigating report losses exceeding $1 million and some exceed $10 million.
- According to the Financial Crimes Enforcement Network, the number of suspicious activity reports (SARs) submitted relating to mortgage loan fraud increased 1,411 percent from 1996 to 2005.
- According to the TowerGroup, losses from mortgage fraud were about $2.5 billion in 2008 – and the firm expects comparable losses to continue for the next few years.
Although there is a level of fraud that exists where home buyers and/or their mortgage brokers falsify documents in order to get a loan approval, the FBI estimates fraud for profit accounts for up to 80 percent of the problem. That leaves 20 percent – or more – of the issue in the hands of consumers and mortgage brokers.
Keep Client Safe with the SAFE Act
The federal government has put measures in place, such as the Secure and Fair Enforcement of Mortgage Licensing, or SAFE Act, to discourage mortgage brokers from these practices. A key component of The Housing and Economic Recovery Act of 2008, the SAFE Act aims to better protect consumers and curb fraud by encouraging states to establish minimum standards for licensing and registration of state-licensed mortgage loan originators and has also established a nationwide mortgage licensing system and registry for the residential mortgage industry to increase the accountability and tracking of loan originators. If a broker is convicted, that conviction would be listed in the registry.
The bad news is the registry is not yet publicly available. The good news is systems are actively being put in place to protect homebuyers from dishonest mortgage brokers so the housing market will be less prone to negative impacts from mortgage fraud in the future.
Published by
Julie Lane, VP of Legal and Compliance Keller Williams Realty Austin, Tx-
Tax Credits for Replacing Windows, Doors, and Skylights
If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable. Read
Visit houselogic.com for more articles like this.
© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
if (document.createElement && document.getElementsByTagName) { var link = document.createElement(“link”); link.setAttribute(“rel”, “stylesheet”); link.setAttribute(“href”, “http://c0263062.cdn.cloudfiles.rackspacecloud.com/css/rcr-remote.css”); link.setAttribute(“type”, “text/css”); document.getElementsByTagName(“head”)[0].appendChild(link); } Copy
A Willoughby woman discovered someone had stolen all of her children’s christmas gifts from her storage unit on Saturday. Carol Morus wondered who would do such a thing, her 2 and 1-year-old boys would now have no Christmas. She figured there was no way these gifts could be replaced and considered telling her boys that the Grinch Stole Christmas! Once friends, co-workers, family and even strangers heard about what happened toys and gifts have been pouring in. Her neighbors in Willopark Apartments, co-workers at Arby’s in Willoughby have pitched in to help replace the stolen toys! Even the Marine Corps Toys for Tots Program have donated toys. Morus said that her son’s will now receive even more than what was stolen. She thanks God to have all these angels around her! There are so many good people (Santa’s) to make up for that one bad person that tried to ruin Christmas.
Earlier this week the U.S. Treasury Department announced new guidelines to the short sale process in hopes of speeding up the recovery of the housing market. A Short Sale occurs when a lender accepts the sale of a home at a price below the actual amount owed, short sales have become a growing part of the real estate business as troubled homeowners seek out alternatives to foreclosure.
Under the Making Home Affordable program, this new plan will aim to assist struggling homeowners by offering easier aid and financial compensation. Government officials in Washington D.C. believe these new reforms will help many families avoid the trauma of foreclosure and help the housing market stay on the road to recovery. The Stewart Team has completed many “short sales this year. we feel they are critical as more and more people continue to face foreclosure, it is and option that many homeowners are not even aware of! Through these reforms, the short sale process will be enhanced. One example of these reforms…Mortgage servicers will have 10 days to accept or reject a short sale request (takes upwards of 90 days now), and after the transaction is complete, it is possible that the borrower could be completely released from debt. Financial incentives will be provided to borrowers selling their home through a short sale and to mortgage-servicing companies completing short sale transactions. Through this enhanced process, short sale transactions are projected to dramatically increase, resulting in less vacant and vandalized properties around the nation.
The Stewart Team can help you through this Short Sale Process, The CDPE “Certified Distressed Propery Expert designation is held by Jeff Morris on the team. He has completed specialized training and certification to assist home sellers that are considering a short sale. Give us a call or email today to set up and appointment!
To qualify under the new guidelines:
_The property must be the homeowner’s principal residence.
_The homeowner is delinquent on the mortgage or default looks likely.
_The loan was made before Jan. 1 this year and is less than $729,750
_The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income
The new guidelines enhance the short sale process in several ways:
-Speeds up the process – Mortgage servicers have 10 days to say yes or no to a short sale request, and after the transaction is complete, the borrower could be completely released from debt.
-Provides financial incentives – Borrowers are eligible to receive a $1,500 moving allowance if they sell their home through a short sale, and mortgage-servicing companies will in turn receive $1,000 for every completed short sale transaction.
-Limits proceeds to second lien holders – Second mortgage holders can only receive up to $3,000 of the sales proceeds to release their liens and investors who hold the first mortgages can collect up to $1,000 for allowing such payoffs.
Average rates on 30 year mortgages drop to 4.71% setting a new all time low. Anyone thinking about taking a break from house hunting during the holiday’s might want to reconsider….this may be the last time for a long time that we see mortgage rates this low…
The rate, published Thursday by Freddie Mac, is the lowest since the mortgage finance company began tracking the data in 1971. The previous record of 4.78 percent was set during the week ending April 30 and matched last week.
Real estate sales are picking up in Northeat Ohio and Lake and Geauga Counties as well. Keep in mind that the First Time Home Buyers Tax Credit expires on Nov. 30th 20009. We are seeing homes take 45 or more days to transfer to the new owner….so your time to take advantage of this great program is running out fast. Give us a call or email for more details, we would be glad to help you!
We have moved our “My Real Estate Blog” to this new Word Press Portal. We hope you like our move. There are many more things tech wise that we will be able to provide to you with our new Blog Hosting.
