Guaranty Mortgage

Wachovia Corporation, the rising Charlotte North Carolina banking star is having a very bad April. On April 14 the bank announced it had lost $350 million or $0.20 per share during the first quarter of 2008. Then this past Friday Wachovia got hit with a double whammy. In the morning it was announced that Wachovia Corp. had agreed to a settlement with The Office of the Comptroller of the Currency (OCC) of as much a $144 million to end an 18 month investigation into its role in a telemarketing scheme that allegedly affected between 350,000 and 500,000 Wachovia customers, many of them elderly. Then, according to a Wall St. Journal story, federal prosecutors are investigating the bank as part of “a broad probe of alleged laundering of drug proceeds by Mexican and Colombian money-transfer companies…” Read More Now

ResCap Originations Rise
U.S. mortgage production was $19 billion during the first quarter at Residential Capital LLC’s, according to earnings data reported by its parent company. Fundings increased from the fourth quarter, the report said. The latest period included prime conforming production of $15 billion.

Pimco’s Gross Warns that Further U.S. Housing Declines Could Be “Ruinous”
Housing price declines remain the greatest challenge to financial markets and could prompt a deep recession, according to Pimco’s Bill Gross. “Home prices which have fallen by 10% over the past 12 months and are set for a repeat by this time in 2009. Lower Fed Funds? They would, in Pimco’s opinion, likely do more damage than… Read More Now

Home Prices Slide in February
The S&P Case-Shiller home price index continued its sharp decline in February as both the 10-city and 20-city composite indexes posted record annual declines in excess of 12.5%. The weakest markets over the past year have been Las Vegas and Miami, which have fallen by 22.8% and 21.7%, respectively. Jacqui Douglas, economic strategist at TD Securities, said, “Charlotte, NC continues to be the only Composite- 20 city posting year-over-year gains, although only barely at… Read More Now

U.S. M1 and M2 Money Supplies Fall in Week Ending April 14
M1 Money Supply fell $2.4 billion in the week ending April 14, while M2 fell $15 billion, according to figures released from the Federal Reserve Thursday. The Fed’s Treasury holdings… Read More Now

First Quarter Vacancy Rates Rise
National vacancy rates in the first quarter of 2008 were 10.1% for rental housing, up from 9.6% in the fourth quarter of 2007, and 2.9% for homeowner housing this quarter, compared to 2.8% in the previous quarter, according to a report from the Census Bureau on Monday. Read More Now

U.S. New Homes Sales Plummet 8.5% in March to Lowest Level Since 1991
New home sales in the U.S. were down for the fifth consecutive month in March, falling by 8.5% to 526k, much lower than the 580k level expected by economists, and setting a new low since October 1991. Inventories soared from already-worrying levels. Regionally, new home sales fell across the board… Read More Now

Predatory lending victim facing bankruptcy
Senior citizen’s mortgage balloons to exceed her Social Security income, but before she files bankruptcy, she should seek legal recourse, says the Bankruptcy Adviser.

Mortgage rates have started the day by bumping against a floor of resistance. Rates have more room to rise than to fall this week.

New Breed of Wholesalers
Charter Bank reported its residential hard-money programs with up to 60 percent loan-to-value allow borrowers to utilize funds for foreclosure and bankruptcy bailouts. First Beacon Financial is touting hard-money no-documentation commercial mortgages up to $100 million. Broker Capital Funding Inc. issued marketing materials indicating it will finance properties listed for sale just one day after they come off a multiple listing service.

Paying taxes by credit card
The IRS has softened up a bit, and now allows the convenience of paying yearly and quarterly taxes by credit card, says CPA George Saenz.

Ask collector for proof of debt payoff
Protect yourself by requesting written proof of a debt payoff, says the Debt Adviser.

Fraud and foreclosures
Fraud was rampant during the go-go years, and dishonest borrowers aren’t seeking relief for fear that they’ll land in trouble.

Challenging a local property assessment
Local assessors won’t automatically adjust property value on the tax rolls, but, armed with the right information, homeowners can present a case, says the Real Estate Adviser.

‘Safe’ 529 options may lag inflation
Families looking for complete safety in a 529 plan will earn meager returns, says the College Money Guru.

Downgrades Hit 2003, 2004 Vintages
Fitch Ratings downgraded $0.8 billion in classes from 34 Morgan Stanley mortgage pass-through certificates issued. Five New Century deals saw classes for $0.3 billion downgraded by Fitch. Also downgraded were $0.2 billion in classes from eight Aegis Mortgage Corp. transaction. All of the deals with classes downgraded by Fitch were issued in 2003 or 2004.

BoA Mortgage Unit to be Based in CA
Following its projected acqusition of Countrywide Financial Corp., Bank of America Corp. will locate the combined residential mortgage headquarters in California, according to an announcement. Countrywide is currently headquartered in the Golden State. The acquisition is scheduled to close during the third quarter.

Rates still on the rise
In Bankrate’s weekly survey, mortgage rates went up slightly, and will probably continue to rise.

Mortgage rates are up; who to call if you’re late with your mortgage payment.

Subpar credit may mean lousy loan deal
A good FICO score is crucial to getting the best terms on a car loan, says Bankrate car columnist Terry Jackson.

Freezing out brokers?
Mortgage rates have started the day by bumping against a floor of resistance. Rates have more room to rise than to fall this week.

Weak Activity at Fannie
New business acquisitions at Fannie Mae totaled $192 billion during the first quarter, a monthly performance summary indicated. Volume fell from the prior quarter but was higher than a year earlier. Residential delinquency increased 4 basis points during the most recent month reported.

New Breed of Wholesalers
Charter Bank reported its residential hard-money programs with up to 60 percent loan-to-value allow borrowers to utilize funds for foreclosure and bankruptcy bailouts. First Beacon Financial is touting hard-money no-documentation commercial mortgages up to $100 million. Broker Capital Funding Inc. issued marketing materials indicating it will finance properties listed for sale just one day after they come off a multiple listing service.

Freddie Performance Worse
Freddie Mac reported first-quarter purchases and issuances of $134 billion. Volume was lower than in the fourth quarter 2007 and the first quarter 2007. Delinquency increased by 3 basis points on a monthly basis.

Alt-A, 2nd Lien Ratings Hammered
Higher-than-anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels prompted Moody’s to downgrade hundreds of classes on dozens of Alt-A transactions issued from 2005 through 2007. Standard & Poor’s Ratings Services announced yesterday that it lowered ratings on 184 classes for around $13.1 billion from 27 RMBS transactions backed by closed-end second-lien mortgage collateral and issued in 2007. The ratings agency also downgraded five classes from four deals because of downgrades to respective bond insurers.

Reverse Lender Adding Branches, Originators
Fidelity Reverse Mortgage plans to hire as many as 70 additional loan officers, its executive vice president told MortgageDaily.com. The additions are planned by the end of this year. Fidelity may add new branch offices in Arizona, northern California and Florida.

Interest you’re paying on a college loan could help cut your tax bill.

Subpar credit may mean lousy loan deal
A good FICO score is crucial to getting the best terms on a car loan, says Bankrate car columnist Terry Jackson.

Fed May Take “Breather” After Cut Next Week
Expectations for a pause in U.S. monetary policy were bolstered by an article in Thursday’s Wall Street Journal, where noted Fed watcher Greg Ip said, “The Federal Reserve is likely to cut its short-term interest rate by a quarter of a percentage point next week — but then may be ready for a breather.” However, the Journal article also points out that… Read More Now

A Frugal shopper’s best tip
Packaging snacks for her kids helps our winner save a bundle.

Former Fannie Mae Execs Consent to Multi-Million Dollar Penalties
The Office of Federal Housing Enterprise Oversight has reached a notable settlement with three of Fannie Mae’s former executives. The settlement, announced late Friday, will end enforcement actions against the three officers arising out of accounting and internal control problems at the two government sponsored enterprises (GSEs) in 2004. The Consent Order requires that Mr. Raines pay Fannie Mae a total of $24.7 million… Read More Now

A Frugal shopper’s best tip
A cash-back credit card might make more sense than a rewards card.

Never roll negative equity into new car
Free markets are great, but one bad loan product deserves to be banned, says Bankrate car columnist Terry Jackson.

Home Prices Rose 0.6% in February, OFHEO Reports
U.S. house prices rose 0.6% in February following January’s 1.1% decline, the Office of Federal Housing Enterprise Oversight (OFHEO) reported Tuesday. Economists had expected a monthly decline of 1.5%. In the previous month, U.S. home prices fell 1.1% between December 2007 and January 2008, contributing to a 12-month decline of 3.0%. For the 12 months ending in February… Read More Now

U.S. New Homes Sales Plummet 8.5% in March to Lowest Level Since 1991
New home sales in the U.S. were down for the fifth consecutive month in March, falling by 8.5% to 526k, much lower than the 580k level expected by economists, and setting a new low since October 1991. Inventories soared from already-worrying levels. Regionally, new home sales fell across the board… Read More Now

Mortgages Rates, Loan Applications Remain Mostly in Doldrums
Long term mortgage interest rates as reported by Freddie Mac in its Primary Mortgage Market Survey were virtually unchanged during the week which ended April 17. However, long term rates as reported by the Mortgage Bankers Association in their Weekly Mortgage Applications Survey for the week ended April 18 underwent significant upward movement. Read More Now

There are savers, and then there are uber savers — people who really take it seriously.

Home builders, who have been feeling the squeeze on the selling side of their business for months, are now reporting that they are caught in a crunch on the development side as money for land acquisition, development, and home construction is drying up. Mitchell told the senators that there is no secondary market for residential construction money to which local lenders could turn for additional liquidity… Read More Now

A Frugal shopper’s best tip
Using a cash back card to pay your taxes can be money in your pocket.

Treasury Curve Steepens as Fed Cuts Priced Out
Inflation worries sparked a front-end led selloff in Treasuries on Thursday as market participants increasingly believe the Federal Reserve will only cut rates by a quarter-point at the end of the month. Read More Now

If you’re planning months in advance, it can be a good idea. But make sure you know what it covers.

Free house if man dies
A 69-year-old man in Minneapolis has come up with a novel incentive to sell his house: It comes with an insurance policy on his life.

Who to call when you’re late
Mortgage rates are up; who to call if you’re late with your mortgage payment.

Billions for builders
On Feb. 12, the president of the NAHB announced that the association’s political action committee would stop contributing to congressional candidates until further notice.

8 percent rate should please car owner
A car owner unhappy with his loan terms is unlikely to do better, says Bankrate car columnist Terry Jackson.

Collector car market cools with economy
The annual Barrett-Jackson auction revealed an emerging buyer’s market for collector cars, says Bankrate car columnist Terry Jackson.

Mortgage rate roller coaster
Still no proposal that makes sense for the housing meltdown.

10 tips to clip travel cancellation fees
If you have to cancel travel plans, don’t let your money leave home without you.

Deducting student loan interest
Interest you’re paying on a college loan could help cut your tax bill.

Dallas Fed President Richard Fisher, one of two Fed dissenters in the last FOMC rate cut decision, said he has a “strong reluctance” about further rate cuts. Speaking at the Chicago Council on Global Affairs, Fisher warned against “inflating our way” out of the credit crisis and that further cuts may “compound the bad.” Read More Now

Extreme savers share their secrets
There are savers, and then there are uber savers — people who really take it seriously.

Moody’s Assaults Nonprime Ratings
Moody’s Investors Service blamed higher-than-anticipated rates of delinquency, foreclosure, and REO in the underlying subprime collateral relative to credit enhancement levels for its downgrade of 572 tranches from 59 RMBS transactions issued by CWABS Asset-Backed Certificates Trust from 2005 to 2007. Alt-A deals that saw downgrades from Moody’s due to higher-than-anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels included 241 tranches from 24 Morgan Stanley transactions issued from 2005 to 2007. Worsening second lien performance prompted Moody’s to downgrade ten certificates from two MASTR Second Lien Trust deals from 2005 and 2006.

President Bush nominated Steve Preston for the Secretary of the U.S. Department of Housing and Urban Development, according to a White House statement. Preston is the Administrator of the Small Business Administration. Before his SBA stint, Preston reportedly held senior executive posts at two multi-billion dollar corporations and the financial service industries.

Renters also May Not Find Decent and Affordable Housing
If the several million people facing foreclosure over the next few years actually lose their homes, where are they going to go? The conventional wisdom is that they will go back into the rental market and perhaps that is one reason for the jump in permits and housing starts for residential buildings over five units reported by the Census Bureau the last few months. However, a study recently released by the National Low Income Housing Coalition is questioning the affordability of rental housing, not just in high priced locations, but virtually everywhere in the country. According to the report, the 2008 national Housing Wage for a two bedroom rental unit is $17.32. A full- time worker must make this much and work year round - 2080 hours per year - to be able to afford the average FMR of $900 per month. Read More Now

10 tips to clip travel cancellation fees
If you have to cancel travel plans, don’t let your money leave home without you.

Secondary Marketing Report
New York Mortgage Trust Inc. announced the sale of $599 million in mortgage-backed securities. IndyMac Bank reported that it traded $335 million in prime jumbo and Alt-A hybrid ARMs in a private label securitization that was expected to settle on April 15. Fremont General Corp. announced that subsidiary Fremont Investment & Loan agreed to sell $1.9 billion in mortgage servicing rights.

Citigroup Announces $5.1 Billion Loss in First Quarter
In the strange thinking that passes for logic on Wall Street, shares of Citigroup stock were expected to surge today after the company announced yet another huge quarterly loss. In fact, shortly after the announcement, the stock was up 7 percent in pre-open trading. The big bank lost $5.1 billion ($1.02 per share) during the first quarter, largely because of continuing problems with mortgages and leveraged loans. Read More Now

Payment trouble? Steer clear of dealer
A woman whose payment is too steep should not look to the dealer for help, says Bankrate car columnist Terry Jackson.

Originations Improve as Citi Reports Massive Loss
Citigroup Inc. reported real estate loan originations during the first quarter of $34 billion. Production improved from the fourth quarter 2007. Company-wide, net income was a massive loss of $5 billion. Earnings were significantly impacted by subprime write-downs.

Collector car market cools with economy
The annual Barrett-Jackson auction revealed an emerging buyer’s market for collector cars, says Bankrate car columnist Terry Jackson.

On Feb. 12, the president of the NAHB announced that the association’s political action committee would stop contributing to congressional candidates until further notice.

Deducting student loan interest
Interest you’re paying on a college loan could help cut your tax bill.

Free house if man dies
A 69-year-old man in Minneapolis has come up with a novel incentive to sell his house: It comes with an insurance policy on his life.

Law may not protect disability benefit
There are five instances when your Social Security benefit may not be protected, says Dr. Don Taylor.

Ditch that tax break
Proposed tax credit for foreclosures will be counterproductive.

A Frugal shopper’s best tip
A cash-back credit card might make more sense than a rewards card.

Computing capital gains
The holding period of a mutual fund determines the amount of tax, says CPA George Saenz.