Weekly Recap (10/4/10-10/9/10)by Tim Manni
Can my homeowners association really foreclose on my home?
If I’m refinancing my mortgage, what does my lender owe me?
Can I appeal my HAMP denial?
What do I need to know before I finance a condo?
Can a home equity loan help me get rid of my debt?
A foreclosure is not the optimal conclusion for either the lender or the borrower, but in order to write a new mortgage loan, in order to put a new borrower into a home, a foreclosure must happen in a swift and timely manner; that’s not happening at the moment, and seems unlikely to for a while to come.
The housing market has grown so defunct that even a foreclosure — a structured process with known and predictable timelines — is no longer a certainty…
Earlier in the week, we published a post that detailed the servicers and states affected by the robo-signing issues plaguing the mortgage industry. I came across an article from ProPublica.org today that published an interview with Geoff Walsh, an attorney with the National Consumer Law Center, which will hopefully serve to answer any more questions you may have about this ongoing problem.
Late last week President Obama signed a one-year extension to keep Fannie Mae and Freddie Mac’s loan limits at $729,750. H.R. 3081 not only kept the higher loan limits in place, but it also allocated an extra $20 billion to the FHA’s General and Special Risk Insurance Fund (that money is designed to keep the FHA lending at least through the end of the year, explains Housing Wire).
About two weeks ago we wrote a post titled “Here’s Washington’s chance to step aside.” After both Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan expressed the need for the government to play a smaller role in the housing market, we thought that lowering Fannie and Freddie’s loan limits could be Washington’s first step in returning some of the market control over to the private sector. That didn’t happen.
There seems to be two very different opinions on the overall importance of the higher loan limits…
For a few weeks now, we’ve known that Ally bank has postponed foreclosure proceedings because they allegedly “robo-signed” thousands of foreclosure documents. In the days since, JP Morgan Chase has had to follow suit, halting foreclosures in 23 states due to similar allegations. The Office of the Comptroller of the Currency (OCC) has since ordered six more of the nation’s largest mortgage servicers to review their foreclosure proceedings in order to investigate tactics similar to those used by Ally and Chase.
The six servicers include: Bank of America, Citigroup, HSBC, PNC Bank, U.S. Bancorp, and Wells Fargo & Co.
The 23 states impacted include: Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, and Wisconsin…
The ongoing trend of mixed economic signals continued into last week. The second quarter GDP reading rang in at a mild 1.7%, while mortgage rates, after weeks of nearly no movement, managed a small decline:
Increasing speculation that the Fed will initiate substantial purchases of Treasury bonds (so-called “quantitative easing”) to kick-start the economy from its bare expansion helped to drive interest rates a bit lower.
HSH’s overall mortgage monitor — our weekly Fixed-Rate Mortgage Indicator (FRMI) — saw the average rate for 30-year fixed-rate mortgages shed five basis points to begin October at 4.70%. Important to first-time homebuyers and low-equity refinancers alike, 30-year FHA-backed mortgages sported an average of 4.40% [last] week. The overall average for Hybrid 5/1 ARMs declined by six basis points (.06%), finishing our national survey at 3.61%. HSH.com’s FRMIs include rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so covers much of the mortgage-borrowing public…