Guaranty Mortgage

After an unexpected drop in consumer confidence spurred on a stock sell-off this morning, all three equity indexes are clawing their way back to unchanged. As of 1:30 eastern, the S&P 500 is up 0.09% to 1,063, the Dow is trading 0.01% lower at 9,779, and the NASDAQ is 0.04% lower at 2,129….(read more)

Home prices bottomed out in the second quarter but prices are not rising as quickly as forecasters had assumed, an industry survey said Tuesday. The Federal Housing Finance Agency s House Price Index, which compiles data on single-family homes, rose by 0.3% in July, half the pace expected by analysts. The previously reported 0.5% advance in June was trimmed to just +0.1%. Despite the revisions, the overall story hasn t changed. July marks the third consecutive month that prices have gone up, meaning the median price bottomed out in April. Since its peak in April 2007, prices fell 11.5% over two years. Over the past 12 months, the index has slid 4.2%….(read more)

A new correspondent community bank team has been created at Ally Bank, a news release indicated. The new business will acquire closed mortgages from community financial institutions that outsource some or all of their loan fulfillment services, GMAC said. It will also offer a table funding program.

Servicing Tech Targets Agency, Non-Agency Issues
New Truth in Lending Act Regulation Z rules require an escrow account for taxes and insurance on home equity loans, according to Fiserv Inc. — which recently said that its loan servicing platform now helps servicers comply. Financial Industry Computer Systems Inc. announced the introduction of eMessaging Service in August. GCC Servicing Systems reported in July that its servicing platform was one of the first to go live with Ginnie Mae’s business process improvement — an initiative to reduce risk and obtain more timely loans details from issuers. In May, OpenClose announced a venture with CCMC Inc. that enables users of OpenClose’s loan origination software to book closed loans directly to servicing systems.

Mortgage mods for profit
Mortgage rates have held fairly steady since the middle of last week.

A reader named Cindy asks: “Are mortgage rates predicted to go down next week? What things should I be considering before going ahead?”

A successful MHA refi
A note, sent yesterday, from a reader named Matthew.

Foreclosures? Let ‘em rent
In response to my blog post from last week, “Theodicy and mortgages,” Michael Hilmen writes about artificially high home prices.

Watch for ‘cash for clunkers’ scams
Don’t give out personal data to a middleman, and make sure a dealer isn’t sneaking in unwanted fees.

‘Official’ owner wants cash for a clunker
This owner may be out of the money. You must be the car’s owner for a least a year to get the cash.

When a HELOC is used for a business
A couple wonders if interest on a HELOC is tax-deductible if the loan is used for an LLC.

How to spend extra money smartly
Pay down credit cards, but also set a budget and save some cash in an emergency fund for hard times.

Mortgage mods for profit
Mortgage rates have held fairly steady since the middle of last week.

Wrong-headed regulators
I have an article up today — “Want to refinance? Know the details” — in which I describe the Home Affordable Refinance program as confusing.

When Federal Reserve chairman Ben Bernanke called the recession very likely over last week, there was some talk about whether his colleagues on the Federal Open Market Committee agreed. In the policy statement issued Wednesday afternoon, it looks clear that they do. Economic activity has picked up following its severe downturn, reads the Fed s statement in the first paragraph. The FOMC agreed to keep short-term interest rates at exceptionally low levels for an extended period, and none of the 10 voters dissented from the expectation that inflation will remain subdued for some time. …(read more)

Purchases, Delinquency Higher at Freddie
August purchases and issuances at Freddie Mac were up 9 percent from July, the company reported. Volume was 86 percent better than in August 2008. But residential delinquency of at least three months climbed 18 basis points from the prior month. Late payments were up more than 200 BPS from last year.

New Correspondent Lending Unit at GMAC
A new correspondent community bank team has been created at Ally Bank, a news release indicated. The new business will acquire closed mortgages from community financial institutions that outsource some or all of their loan fulfillment services, GMAC said. It will also offer a table funding program.

How to spend extra money smartly
Pay down credit cards, but also set a budget and save some cash in an emergency fund for hard times.

The Federal Housing Administration said in a mortgagee letter that eligibility requirements for FHA appraisers change on Oct. 1. Appraisers who are not state certified will be removed from the FHA Appraiser Roster, according to the letter. The certification includes certified residential or certified general.

Mortgage Loan Exchanges Launch
DebtMarket announced its launch in August. Sellers list loan portfolios for sale on DebtMarket. Also launching last month was LoanMLS Inc. The company said in a news release that it is an online loan exchange providing a central information point for buyers and sellers.

‘Official’ owner wants cash for a clunker
This owner may be out of the money. You must be the car’s owner for a least a year to get the cash.

Credit card rewards help foil recession
Choosing the right credit card rewards program can help a smart borrower get through the recession.

Warehouse Lending Opportunities
Southwest Securities FSB said in a statement that it hired a new representative to solicit warehouse lending business in the East and Midwest. Southwest said it provides residential funding capacity for U.S. mortgage bankers by taking a short-term ownership interest in the mortgages. Warehouse lending consultant Barry Epstein recently commented that banks don’t understand how lucrative warehouse lending can be. He warned that mega-banks will control the market if mid-sized mortgage bankers can’t find funding for their originations.

Home, condo rentals trim vacation costs
Renting a home or condominium can make your next vacation less expensive and more luxurious.

When a HELOC is used for a business
A couple wonders if interest on a HELOC is tax-deductible if the loan is used for an LLC.

Officials from four federal departments and agencies and attorneys general of 12 states met in Washington on Thursday to discuss what was termed an "epidemic" of fraudulent schemes designed to scam distressed homeowners….(read more)

Fed Continues Support for Mortgage Lending
In a Federal Open Market Committee statement, the Federal Reserve said economic activity has picked up and conditions in the financial markets have improved further. The statement indicated that the federal funds rate target will be kept at between 0.0 percent and 0.25 percent. The government plans to maintain support for the mortgage and housing markets by purchasing $1.25 trillion in agency mortgage-backed securities, according to the announcement.

Fed Buys Net $25.45 Billion Agency MBS
The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers….(read more)

Firm Helps in Delivery of Agency MBS
MDMC completed an $800 million delivery to Ginnie Mae, a news release indicated. MDMC said that it specializes in providing agency delivery services. “MDMC uses proprietary programs to run loans through Fannie Mae and Freddie Mac specific edits and has now added similar programs for Ginnie Mae,” the Sussex, Wis., firm said in the statement.

FHA Lender Seeks Salespeople
Lend American announced that it will hold an open house at its headquarters next month. The FHA lender plans to recruit 100 salespeople by the end of the year, a spokeswoman told MortgageDaily.com in a statement. “This recruitment effort acts as a launching pad to a wide range of high-paying, best in class employment opportunities for credible sales professionals,” a news release said.

The Day Ahead: Looking Ahead to FOMC Meeting Next Week
Take a glance at the schedule and you could be forgiven for thinking it s a holiday. No data from the US is will hit markets all day, nor are there Treasury auctions or officials speaking from the Federal Reserve. But don t think markets will be quiet. Investors have next week s monetary policy meeting to think of, and the lack of fresh data this morning gives a chance to reflect on whether stocks are accurately priced. The S&P 500 is up 2.3% this week despite the modest drawback yesterday. Equity futures are flat but tilted upwards this morning, and if markets can recover from yesterday indexes will have the chance to hit new 11-month highs. …(read more)

FHA Announces Several Policy Changes. Adopts HVCC Guidelines
The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve the housing agency's exposure to risk. The changes, effective January 1, include: Modification of Procedures for Streamline Refinance Transactions, Adoption of Home Valuation Code of Conduct Guidelines, Updated Appraisal Validity Period, New Appraisal Portability Regs, New Requirement of Lenders to Submit of Audited Financial Statements for Review, Adjustments to the Approval Process for Participation in FHA Loan Origination, and Increased Net-Worth Requirements for Lenders. …(read more)

In a recent rate sheet, Bay Equity LLC touted yield spread premiums up to 3.731 percent on 30-year fixed-rate conforming loans. North Star Lending is promoting second-home financing for borrowers with five to 10 financed properties. A new customer account manager was named at Generation Mortgage Co.’s wholesale division, a news release said. The new manager will help expand correspondent business and support Generation’s wholesale team.

5 keys to automatic retirement plans
If you’re saving for retirement, know these five things about automatic enrollment 401(k) plans.

Home, condo rentals trim vacation costs
Renting a home or condominium can make your next vacation less expensive and more luxurious.

Hard Money is History
On Oct. 1, higher-priced mortgages will be subject to new Home Ownership and Equity Protection Act requirements. Among new requirements for HOEPA loans is that a creditor must consider income and repayment ability and cannot extend credit based only on the value of the borrower’s collateral. Hard-money loans — high-yield mortgages made based only on the loan-to-value — are prohibited under the new rules, Richard Andreano, partner with the Washington, D.C.-based firm of Patton Boggs LLP, said in an interview with MortgageDaily.com.

Rate trends and firecrackers
A reader named Cindy asks: “Are mortgage rates predicted to go down next week? What things should I be considering before going ahead?”

Wrong-headed regulators
I have an article up today — “Want to refinance? Know the details” — in which I describe the Home Affordable Refinance program as confusing.

An electronic annual certification for renewing approved mortgagees will replace a paper report, the U.S. Department of Housing and Urban Development said in a mortgagee letter. The Office of the Comptroller of the Currency is prodding U.S. banks to take advantage of an FHA program that can enable potential property investors to finance the purchase and rehabilitation of real estate owned by banks. Neighborhood Housing Services of America announced a new FHA Fulfillment Center to facilitate and commit to purchase loans originated by approved loan correspondents.

2 Bank Subsidiaries of Irwin Fail Friday
Irwin Union Bank, FSB, was closed Friday by the Office of Thrift Supervision and handed over to the Federal Deposit Insurance Corporation, a press release said. The Louisville, Ky.-based bank “was in an unsafe and unsound condition to conduct business because of its deteriorating asset quality, weak earnings and inability to develop an acceptable operating plan,” the OTS said. In addition, Irwin Union Bank and Trust Co. in Columbus, Ind., was seized by the Indiana Department of Financial Institutions, and the FDIC was appointed receiver. Both institutions were subsidiaries of Irwin Financial Corp.

Watch for ‘cash for clunkers’ scams
Don’t give out personal data to a middleman, and make sure a dealer isn’t sneaking in unwanted fees.

Freddie Mac's Primary Mortgage Market Survey for the week ended September 17 reported the third consecutive week of lower rates for fixed rate mortgages. Fannie Mae's weekly yields were also lower for the week. …(read more)

Home, condo rentals trim vacation costs
Renting a home or condominium can make your next vacation less expensive and more luxurious.

Mortgage Applications Slide After Labor Day
Mortgage rates increased slightly last week but still remain at historically low rates. Even so, demand for mortgages, refinancing, and purchases all fell in the week, according to the Mortgage Bankers Association. Interest rates for a 30-year loan moved up 6 basis points to 5.08% in the four-day period ending Sept. 11. But the Market Composite Index which tracks the volume of mortgage applications fell 8.6% the week, following a massive 17% increase in the prior week….(read more)

Fed Buys Net $25.45 Billion Agency MBS
The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers….(read more)

Multi-Family Building Increases 35.3% in August. Single-Family Starts Down 3.0%
The total number of housing starts came in at 598k, just 2k below the consensus forecast. But, rather than being driven by single-family starts, the number was elevated due to revisions for July 589k compared to an original estimate of 581k and a boost in multi-family units, which may bottomed out in July.New construction projects for single-family homes slid 3.0% in August, pushing the annualized rate to 479k from the revised July read of 494k new starts per year.Starts for multi-family units pushed up 35.3% in the month, putting the annualized pace up 30k to 115k….(read more)

The Day Ahead: Looking Ahead to FOMC Meeting Next Week
Take a glance at the schedule and you could be forgiven for thinking it s a holiday. No data from the US is will hit markets all day, nor are there Treasury auctions or officials speaking from the Federal Reserve. But don t think markets will be quiet. Investors have next week s monetary policy meeting to think of, and the lack of fresh data this morning gives a chance to reflect on whether stocks are accurately priced. The S&P 500 is up 2.3% this week despite the modest drawback yesterday. Equity futures are flat but tilted upwards this morning, and if markets can recover from yesterday indexes will have the chance to hit new 11-month highs. …(read more)

The Day Ahead: CPI, Industrial Production, Homebuilder Sentiment
For the second day in a row, markets began with a rough start yesterday but made steady climbs throughout the afternoon and ended on positive tones. This morning, equity futures continue looking upwards a day after Fed chairman Ben Bernanke said the recession is very likely over. China s Shanghai Index dropped 1.12% earlier this morning, but most other equity markets are enjoying a mid-week rally. In Asia, the Nikkei closed up 0.52% and the Hang Seng jumped 2.57%. In Europe, the FTSE 100 is currently up 1.44%, while the CAC-40 is up 1.38% and the DAX is trading 0.94% higher….(read more)

Mid-Day Recap: S&P 500 Makes Fresh 11-Month High
Stocks are higher again today, marking gains in eight out of the last nine trading sessions. A boost to industrial production and a tame inflation report were responsible for the optimism, while a weak TIC flows report provided some turbulence. As of 1:45 eastern time, the S&P 500 is leading the way at fresh 2009 highs with a 1.31% increase to 1,066, followed by a 1.17% advance in the NASDAQ and a 0.97% gain in the Dow to 9,777….(read more)

Credit card rewards help foil recession
Choosing the right credit card rewards program can help a smart borrower get through the recession.

Mid-Day Recap: Stocks Fall Fast After Lunch Hour
Mixed housing and labor reports caused equity markets to flounder on Thursday morning. Early gains were given up, and after a second climb appeared to give equities a clear positive direction for the day, all three indexes fell off a cliff a little after Noon. Approaching 1pm, the S&P 500 is worst off with a 0.52% loss to 1,063. This follows a 3.11% gain earlier in the week, which put the benchmark index at new 11-month highs. The Nasdaq is a down a similar 0.51% as it trades at 2,122, and the Dow is 0.26% lower at 9,767. If stocks fail to recover, it will end a three-day rally. Two data points an hour before the open were responsible for the indirection. …(read more)