Boy found after rescuing another young man in Ercis Thursday; hopes of finding additional survivors fading amid cold weather, snow
Vacation Properties Loans and Mortgages Household Moving House Plans
Friday, October 28, 2011
New House Proposal on Evolution of the Secondary Mortgage Market
The Chairman of the House committee that has been most active in the proposed dismantling of Freddie Mac and Fannie Mae has released his proposal to reform the secondary mortgage market. Rep. Scott Garrett (R-NJ) who heads the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises said his proposal intends to ensure robust private investment in the market without a government guarantee. His proposal would also abolish the risk-retention or so-called "skin-in-the-game" provisions of the Dodd-Frank Financial Reform Act.
According to a press release from Garrett's office, under his plan the Federal Housing Finance Administration (FHFA) will be directed to develop several categories of mortgages and develop uniform underwriting standards for each as well as standards and uniform securitization agreements, representations, and warrantees. The process for selling to investors will be streamlined for securities that meet the new standards and FHFA will be given authority to ensure underwriting and securitization standardization compliance.
Garrett said that his proposal would also ensure "rule of law and legal certainty" by removing conflicts of interest between servicers and investors, clarifying the rules around the eligibility of obtaining second lien mortgages and requiring mandatory arbitration of disagreements between investors and issuers regarding reps and warrants.
Under the proposal regulators would be prevented from unilaterally forcing investors to reduce the principal of loans in which they have invested and would allow for the appointment of an independent third party to act on behalf of investors in mortgage-backed securities (MBS).
To address issues of transparency and disclosure the quality of loan level information and disclosures to investors would be increased and investors would be guaranteed sufficient time to review and analyze disclosed information before making investment decisions. Lenders would have to disclose pricing history on securitization deals and an individualized marker would be created for each loan within a loan package. Servicers would also be required to use standardized accounting and reposting for any loan workouts
"Since taking control of the House in January, we have remained steadfast in our drive and determination to end the ongoing bailout of Fannie Mae and Freddie Mac, protect taxpayers from future bailouts, and encourage private capital to re-enter the secondary mortgage market," Garrett said. "Now that we have taken the important step of introducing a series of bills to wind down the government-backed mortgage twins, it's time to start thinking about the ways we can jumpstart the private market to step in once they're gone."
According to Reuters, Garrett and other Republican members of the House have already introduced 15 separate bills in an effort "to chip away at the role Fannie and Freddie play in the secondary mortgage market.
...(read more)
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Source: http://www.mortgagenewsdaily.com/10272011_housing_market_reform.asp
John Hughes? Widow Selling the House That ?80s Teen Films Built
John Hughes' home in Lake Forest is listed for sale.
Source: http://www.zillow.com/blog/2011-10-26/john-hughes-widow-selling-the-house-that-80s-teen-films-built/
Candidates for WSJ House of the Week
Sushil Cheema on Lunch Break shows us the four homes promoted as WSJ's House of the Day from which viewers will choose the House of Week, to be announced on Monday.Source: http://online.wsj.com/video/candidates-for-wsj-house-of-the-week/DCD33361-D73...
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Point2 to power property management system for CAR subsidiary
Company also announces partnership with EXIT Realty
Interest Rates Celebrity Foreclosures Most Expensive Homes Luxury Home Prices
Purchase and Refinancing Applications Increase Last Week
Mortgage application volume bounced back from the previous holiday-shortened reporting period to end the week of October 21 up almost five percent. The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey found applications for all mortgage types up 4.9 percent on a seasonally adjusted basis and 4.8 percent unadjusted.
Applications for both purchase mortgages and refinancing rose; the Refinancing Index by 4.4 percent and the Purchase Index by 6.4 percent adjusted and 6.1 percent unadjusted. The unadjusted index was 2.7 lower than the same week in 2010.
The four-week moving average for all three indices decreased; the Market index by 3.61 percent, the purchase index by 0.71 percent and the Refinance Index by 4.41 percent.
Applications for refinancing made up 77.3 percent of the volume for the week, down from 77.6 percent during the week ended October 14. Adjustable-rate mortgages (ARM) made up 5.9 percent of the volume, up 1 basis point from the previous week.
Looking back at September, MBA reported that investor activity rose slightly during the month with purchase applications for non-owner occupied properties up to 6.0 percent from 5.7 percent in August. Applications for mortgages for second homes decreased from 6.0 percent of purchase applications in August to 5.8 percent in September.
Purchase Index vs 30 Yr Fixed
Click Here to View the Purchase Applications Chart
Refinance Index vs 30 Yr Fixed
Click Here to View the Refinance Applications Chart
Rates for conforming mortgages (those with a loan balance of $417,500 or less) were relatively flat during the week while the effective rate rose for all products except the 30-year fixed rate mortgage (FRM). The average contract rate for that product was unchanged at 4.33 percent with points decreasing from 0.48 point to 0.47 including the origination fee. Rates for 30-year FHA-backed FRM decreased from 4.12 percent to 4.11 percent; points increased to 0.61 from 0.53.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.62 percent from 3.61 percent, with points increasing to 0.45 from 0.43. .
Rates for jumbo 30-year FRMs - loans with a balance greater than $417,500 - rose from 4.64 percent with 0.45 point to 4.68 percent with 0.42 point.
The average contract interest rate for 5/1 ARMs increased to 3.11 percent with 0.50 point percent from 3.08 percent with 0.48 point.
All rate quotes are for mortgages with an 80 percent loan-to-value ratio.
The MBA survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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Source: http://www.mortgagenewsdaily.com/10262011_mortgage_volume.asp
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