Mortgage insurance
Mortgage insurance (also known as mortgage guarantee) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan.
Should the Government Help Homeowners With Underwater Mortgages?
Posted by admin / Under Mortgage Insurance
According to real estate data firm CoreLogic, about 11 million American homeowners are underwater, and half of all U.S. mortgages are owned by non-government lenders. On Wednesday, President Obama announced plans to help homeowners facing foreclosure. Obama is seeking to make interests rates for borrowers lower, and he plans to pay for the estimated $5 billion to $10 billion cost with a fee on the nation’s largest banks. “It is wrong for anyone to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom,” Obama said. “I refuse to...
Published on Wednesday 8th of February 2012 09:15:41 PM
Obama's "Titanic" Mortgage Refi Plan - MBS Prices Could Fall 10% Pension Funds
Posted by admin / Under Mortgage Insurance
Here is why these investors will lose a lot of money. Currently, Fannie Mae, Freddie Mac and Ginnie Mae (FHA) MBS are selling at what is called a “premium” above par value of 100. Let’s start with GNMA MBS. Notice that GNMA MBS prices are trading at a premium to par and the higher the coupon rate, the larger the premium. For example, the GNMA 6.0% coupon is currently selling for 109-22. That is $9 -22 above par. Why? Premium prices occur when sufficient number of borrowers do not refinance, either due transactions costs or inability to refinance their mortgage....
Published on Wednesday 8th of February 2012 09:15:41 PM
New York Sues Banks Over Mortgage Registry System[MERS]
Posted by admin / Under Mortgage Insurance
New York Attorney General Eric T. Schneiderman sued three of the nation's largest banks over a private national mortgage registry system, contending it has resulted in a wide range of deceptive and fraudulent foreclosure filings. The lawsuit, filed in New York State Supreme Court in Brooklyn, names units of Bank of America Corp., J.P. Morgan Chase & Co. and Wells Fargo Corp. as defendants, as well as MERSCorp., which owns and operates the Mortgage Electronic Registration Systems, known as MERS. In his complaint, Mr. Schneiderman alleges that MERS has effectively eliminated the public's ability to track property transfers because those...
Published on Wednesday 8th of February 2012 09:15:41 PM
Rate on 30-year mortgage falls to record 3.87 pct.
Posted by admin / Under Mortgage Insurance
WASHINGTON (AP) -- The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That below the previous record of 3.88 hit two weeks ago. The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s. Mortgage rates tend to track the...
Published on Wednesday 8th of February 2012 09:15:41 PM
Mortgage Spreads Highest Since 2008, Even Before Payroll Tax On Mortgages Go Into Effect
Posted by admin / Under Mortgage Insurance
On December 29th, 2011, the Federal Housing Finance Agency (FHFA) acting director Edward Demarco released a statement detailing the increase to the guarantee fee charged by Fannie Mae and Freddie Mac, as part of the Temporary Payroll Tax Cut Continuation Act of 2011. As part of the legislation, FHFA is increasing the guarantee fee by no less than 10 basis points (bp), effective April 1st, 2012. This increase affects all single-family residential mortgages, and the additional 10 bp in fees will be remitted to the U.S. Treasury instead of being retained by the GSEs. Additionally, the minimum initial increase shall...
Published on Wednesday 8th of February 2012 09:15:41 PM
Kathleen Willey urges Soros to save her home
Posted by admin / Under Mortgage Insurance
'Maybe you can start redeeming yourself by helping your fellow man' Kathleen Willey, the woman who courageously testified about being assaulted by President Clinton, is scheduled to lose her home in just three days in a bank auction – but, in a last-minute plea on behalf of millions of homeowners just like her, she has written to billionaire George Soros for help. Willey’s original home loan was issued by IndyMac Bank before the FDIC took receivership of the bank following the 2008 collapse. At the time of the FDIC takeover of IndyMac, it was the third-largest bank failure in U.S....
Published on Wednesday 8th of February 2012 09:15:41 PM
Cole: Obama's Next Bailout
Posted by admin / Under Mortgage Insurance
On Jan. 23, U.S. Department of Housing and Urban Development Secretary Shaun L.S. Donovan met in Chicago with several Democratic state attorneys general (AGs) in an attempt to strong-arm them into signing up for an administration-backed agreement to settle the “robo-signing” scandal. Wall Street would pay what sounds like a large fine ($25 billion), and in exchange, the state AGs would relieve the bankers of all legal liabilities related to the fraudulent mortgage-lending practices that led directly to the 2008 financial meltdown and a 30 percent drop in U.S. home prices. The fraudulent practices of the mortgage servicers have injected...
Published on Wednesday 8th of February 2012 09:15:41 PM
Share this!