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Mortgage-aid revisions paying off for bankers, some borrowers

May 16, 2012

Mortgage-aid revisions paying off for bankers, some borrowers

A newly streamlined government plan to reward homeowners who diligently pay their underwater mortgages is proving a bonanza for banks, which by one estimate may pocket $12 billion in extra revenue by refinancing loans.

The revisions to the Obama administration’s 3-year-old Home Affordable Refinance Program have yielded mixed results for homeowners, analysts and mortgage professionals say.

Some responsible homeowners are indeed getting lower-interest loans despite owing far more than their homes are worth. But others have loans that don’t qualify, or must jump through hoops the plan was supposed to eliminate, such as on-site appraisals and extensive paperwork.

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Consumer watchdog weighs limits to mortgage fees

May 11, 2012

Consumer watchdog weighs limits to mortgage fees

The government’s consumer-finance watchdog is weighing an overhaul of the fees consumers pay to obtain mortgages.

Regulators might ban origination fees that vary with the size of the loan, known as “origination points.” They also might limit the use of “discount points” that are supposed to result in lower interest rates, the Consumer Financial Protection Bureau said late Wednesday.

The changes would help consumers understand the fees they are paying and guarantee that the fees provide any promised discounts, the agency said.

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US gov’t to propose new mortgage lending rules

April 11, 2012

US gov’t to propose new mortgage lending rules

The federal government proposed new rules on Tuesday that will give homeowners more ways to avoid foreclosure and get an accurate accounting of their monthly mortgage payments.

Congress mandated changes in the rules covering the mortgage servicing industry in the wake of the 2008 financial crisis.

The Consumer Financial Protection Bureau’s proposed rules would require mortgage servicers to give all borrowers standardized monthly statements and warn borrowers about interest rate or insurance change.

Read More on The Seattle Times…

Are you a struggling homeowner? Check out our Avoiding Foreclosure section for resources and tips.

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FHA Bans Borrowers With Credit Disputes, Raises Insurance Premiums

April 10, 2012

April Showers: FHA Bans Borrowers With Credit Disputes, Raises Insurance Premiums

The joke was on you April 1, if you applied for a Federal Housing Administration (FHA) home loan and had an outstanding credit dispute of $1,000 or more pop up.

Beginning April 1, the FHA began tossing home loan purchase applications in the circular file if the applicant had an ongoing credit dispute or collections action of $1,000 or more on his or her credit report.

To pass muster you must either pay off the outstanding balance of the disputed account or document a payment arrangement the lender must submit to the FHA before you close the deal.

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Fed fines 8 US banks for alleged foreclosure abuse

March 21, 2012

Fed fines 8 US banks for alleged foreclosure abuse

The Federal Reserve said Monday that it plans to fine eight additional U.S. bank holding companies for improperly foreclosing on homeowners.

The financial firms – EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks and U.S. Bancorp – were not part of last month’s settlement over alleged foreclosure abuses…

The nation’s five biggest lenders – Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial – last month agreed to a $25 billion settlement with state and federal government agencies last month after a 16-month probe.

Read Full Story on The Seattle Times…

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