Guaranty Mortgage

You’re better off to stick with the plan, especially if you get a match, says Dr. Don.

Rates respond to full calendar
The word to describe mortgage rates in the last week is: undulating. The economic calendar is full of items that could send bond yields and mortgage rates into an undulating frenzy.

Mortgage Trauma Worsens
Citizens Republic Bancorp announced that it will record a second quarter provision for loan losses in the range of $30 million to $35 million. Impac Mortgage Holdings Inc. said it will not be declaring a second quarter 2007 dividend on its common shares. The company explained that it has experienced higher-than-expected losses through the accelerated liquidation of its real estate owned portfolio in an auction process implemented this quarter. American Home Mortgage Investment Corp. announced it will take substantial charges for credit-related expenses in the second quarter, making its financial results for the quarter uncertain and likely to head for a loss.

Arm Indexes Mostly Higherrneys
The Cost of Funds Index was 4.29 percent in May, the Federal Home Loan Bank of San Francisco reported Friday. The index rose from the prior month, according to the data. Meanwhile, Fannie Mae reported the 6-month London Interbank Offered Rate at 5.38 percent in June.

Two measures of the housing market were released this week and each shows that, at best, builders are remaining cautious; at worst they are showing a bit of despair. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for June reported that builders’ confidence in the market reached the lowest point in over 25 years. NAHB President Brian Catalde said “Builders continue to report serious impacts of tighter lending standards on current home sales as well as cancellations, and they continue to…” Read More Now

Government, Groups Prepare for Foreclosures
The Federal Trade Commission announced its release of a publication for borrowers. The free guide explains what borrowers can do if they fall behind on payments as well as how to avoid default, foreclosure, and foreclosure scams. The Advertising Council and Neighborworks America will launch in July a multi-media campaign designed to prevent foreclosures by urging troubled borrowers to call a hotline that involves many of the country’s largest mortgage companies.

Mortgage Rates Roll Back From 2007 Highs
According to Freddie Mac’s Primary Mortgage Market Survey for the previous week, the market has rolled back a small portion of the large increases in mortgage rates that were recorded over the prior five weeks. “Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Thus far this year, the housing sector…” Read More Now

Mortgage Groups Testify
Washington, D.C. — The chairman of the U.S. senate’s Housing, Transportation and Community Development subcommittee said risky subprime mortgages are the catalyst behind reports of an impending avalanche of foreclosures. An executive speaking on behalf of the National Association of Mortgage Brokers urged Congress to adopt uniform national standards for education, testing, and criminal background checks for all mortgage originators. The chairman of the Mortgage Bankers Association told lawmakers that financial education should be a priority, the mortgage process should be simplified and that uniform national standards for mortgage lending with increased consumer protections and more accountability for mortgage professionals including licensing requirements and the establishment of a national registry to help protect against bad actors moving from place to place should be undertaken.

12 tips to bring the outdoors in
Enjoy the summer if you’re outdoors kicking back or indoors looking out.

New And Existing Home Sales Continue To Languish
The National Association of Realtors can always be depended upon to put the best face on housing news. The monthly report on the sales of existing homes for May released on Monday was headlined “Homes Sales Show Market is Under Performing” and the opening paragraph read “Existing-home sales were essentially unchanged in May.” Read More Now

Mortgage Rates Take Biggest Jump In Three Years
Interest rates as reported by Freddie Mac and those published by the Mortgage Bankers Association (MBA) diverged sharply for the week ending June 14 (Freddie Mac) and June 15 (MBA). “Mortgage rates moved sharply upward this week, with rates on 30-year fixed-rate mortgages jumping more than 20 basis points, the largest upward movement in over three years,” said Frank Nothaft, Freddie Mac vice president and chief economist. “These moves…” Read More Now

Mixed Mortgage Activity
The 30-year fixed-rate mortgage averaged 6.7 percent this week, Freddie Mac said its survey of 125 mortgage-lending companies, thrifts and commercial banks showed. The 30-year improved for the second week in a row. But the number mortgage applications taken by originators fell, according to the latest Mortgage Bankers Association survey.

The question for the future is what will worry the Fed most — inflation or the housing recession?

The Harvard Joint Center for Housing Studies recently released its annual State of the Nation’s Housing report for 2007. It is dismal reading. While it states that the longer-term outlook for housing is (more) upbeat, the length and depth of the current correction will depend on the course of employment growth and interest rates, as well as the speed with which builders pare down excess supply. That’s the good news. The flip side is that basic housing affordability remains a major problem. Read More Now

Will Subprime Problems Spill Over Into Conventional Markets?
Two days, two economic forecasts; the first which we reported on earlier from the National Association of Realtors (NAR) showed a rapid deterioration in the confidence that association’s economic advisors have in the near future of the housing industry. Now we have the June Economic Outlook from Freddie Mac. Freddie Mac’s monthly offering always has a theme and it is more than a little disquieting that the motif for June appears to be “not every house needs to be foreclosed.” This is really not an overstatement. The Outlook states that, in the subprime market, 1 in 13 homes are candidates for foreclosure. It further quotes the…. Read More Now

Housing Starts Slip and Builders Still Glum
Two measures of the housing market were released this week and each shows that, at best, builders are remaining cautious; at worst they are showing a bit of despair. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for June reported that builders’ confidence in the market reached the lowest point in over 25 years. NAHB President Brian Catalde said “Builders continue to report serious impacts of tighter lending standards on current home sales as well as cancellations, and they continue to…” Read More Now

New And Existing Home Sales Continue To Languish
The National Association of Realtors can always be depended upon to put the best face on housing news. The monthly report on the sales of existing homes for May released on Monday was headlined “Homes Sales Show Market is Under Performing” and the opening paragraph read “Existing-home sales were essentially unchanged in May.” Read More Now

Get condo inspected before buying
Just because it’s a condo don’t think you shouldn’t get a home inspector to check things out before you sign, says Real Estate Adviser Steve McLinden.

Subprime Mess Hits Wall Street Again
What is now routinely called “the subprime mortgage mess” is continuing to roil the U.S. economy and last week it again caused major concern in the larger financial markets. Read More Now

The question for the future is what will worry the Fed most — inflation or the housing recession?

BofA no-fee customers
Bank of America offers a loan program called the No Fee Mortgage Plus — too good to be true or a good deal?

Housing starts down
Analysts expected housing starts to fall in May and that’s what happened. More building permits were issued than most had expected though.

15 ways to save money on gas
Save on fuel costs with these easy tips.

Something fishy …
A builder transfers $20,000 to a to a mortgage brokerage that it owns to give a borrower a lower rate for a house in a market where prices are expected to decline. Why?

The National Association of Realtors has backpedaled on previous housing forecasts with it U.S. Economic Outlook report for June released on Wednesday. NAR has consistently asserted that the housing bubble would not burst but rather would deflate and, when it happened, there would be a soft landing. The Economic Outlook report released on January 10, 2007 stated… Read More Now

If you’d like to get a handle on your spending habits, all it takes is a small notepad and a bit of determination.

When income tumbles, reduce spending
With three kids and a fourth on the way, it’s not easy, but when income falls, you must budget, cut spending and find a way to get more money, says the Debt Adviser.

7 ways to slash commuting costs
With the costs of fuel and insurance soaring, it’s time to take a second look.

Foreign bank account statements
An extension of time to file your 2006 income tax return does not extend the time for filing the foreign bank account statements, says CPA George Saenz.

Housing starts down
Analysts expected housing starts to fall in May and that’s what happened. More building permits were issued than most had expected though.

Something fishy … or not?
The plot thickens in the story I recounted earlier today … or does it?

Save money and the earth
Recycle plastic jugs to grow vegetables says the winner of the latest Frugal $ense contest.

15 ways to save money on gas
Save on fuel costs with these easy tips.

If you’d like to get a handle on your spending habits, all it takes is a small notepad and a bit of determination.

When income tumbles, reduce spending
With three kids and a fourth on the way, it’s not easy, but when income falls, you must budget, cut spending and find a way to get more money, says the Debt Adviser.

Bankrate’s Frugal $ense winner shares his formula for earning extra money as he spends.

Yields take twists and turns
When bond yields skyrocket, as they’ve done in the last two weeks, there inevitably is an overreaction. They always climb too high, then fall back.

Something fishy …
A builder transfers $20,000 to a to a mortgage brokerage that it owns to give a borrower a lower rate for a house in a market where prices are expected to decline. Why?

Housing starts down
Analysts expected housing starts to fall in May and that’s what happened. More building permits were issued than most had expected though.

Subprime Borrowers Pay Cards First
Subprime borrowers are more likely to become past due on their mortgages than on their unsecured credit cards, according to a study announced Wednesday by Experian. The report noted subprime mortgage delinquency has increased at a 13 percent rate in the past four years. “It is prudent for lenders to explore improvements in decisioning process and tools to counter recent market trends,” an Experian executive stated in the announcement.

Avoiding Mortgage Fraud
A Federal Deposit Insurance Corp. report outlined what lenders can do to protect themselves from mortgage fraud. The Fdic recommended that lenders establish a system to monitor concentration risk by broker. Lenders can mitigate loan document fraud with periodic loan file sampling to spot fraudulent practices, periodic credit checks on existing employees, structure compensation agreements to include loan quality as a contributing factor, and institute adequate internal reporting procedures.

Something fishy … or not?
The plot thickens in the story I recounted earlier today … or does it?

Arm Attraction Amplifies
The average 1-year Treasury-indexed adjustable-rate mortgage tumbled to 5.7 percent, according to Freddie Mac’s latest weekly survey. The difference between the 1-year Arm and the 30-year fixed rate has widened each week since May 24, according to Freddie’s data. As a result, the share of Arm applications has also risen each week since then.

More Foreclosure Services Spawned
Augustus, Rae and Reed to release a guide to help troubled borrowers keep their homes. Shutts & Bowen Llp recently announced the launch of a “complex loan workout practice group” to serve borrowers grappling with the effects of a real estate market slowdown. Maryland’s governor recently announced a number of statewide initiatives to protect borrowers from foreclosure and subprime loan schemes.

15 ways to save money on gas
Save on fuel costs with these easy tips.

The Wyoming Deputy Banking Commissioner testified to state lawmakers about mortgage regulatory legislation, according to a copy of his remarks obtained by Mortgagedaily.com. He supports the legislation because it would be proactive and “try to identify any trends in Wyoming that” have caused problems in other states. In Georgia, the state’s Department of Banking and Finance has announced that cease and desist orders against three brokers have become final.

The Fraud Report
Loans secured by properties in the Upper Midwest represent one-third of fraudulent mortgages originated during 2005 and 2006 at Fannie Mae, the company’s director of anti-fraud initiatives said in written testimony last week. Georgia was the state with the worst record, according to supplemental material. Lying about income was the most common type of mortgage fraud at the government sponsored housing enterprise, he said.

Losing cash to business taxes
When a business builds up its capital through earnings, part of the earnings disappear to taxes if not reinvested in the business before the end of the tax year, says CPA George Saenz.

Wholesale Programs for Every Score
First Franklin Financial Corp. started taking applications for Alt-A loans, a spokeswoman told Mortgagedaily.com. American Guardian introduced a 2/28 adjustable rate mortgage with interest-only options and a minimum score of 580, according to the wholesaler’s product sheet. Charter Bank’s specialty lending group is offering a fully-amortizing 2/28 arm hard money program.

Subprime Casualties Continue
Right-Away Mortgage Inc. has ended operations, a former employee has confirmed to Mortgagedaily.com. The lender specialized in loans to borrowers with Fico scores as low as 540, according to its Web site. The former employee noted the company shut down because the business was no longer profitable.

When to claim Social Security
Experts are divided about the optimal time to begin drawing Social Security. The latest study says most married women should start early while men should delay until age 69.

15 ways to save money on gas
Save on fuel costs with these easy tips.