Low rates influence housing market but there are some bumps in the road

Good news about the housing industry.

Realty Times reports-

Even with the home buying season behind us, housing data continues to show the influence of low mortgage rates. The National Association of Realtors reported that existing home sales increased 2.1% on a seasonally adjusted basis in October. This increase is 10.9% higher than the rate in October of 2011.

While conventional lenders are closely eyeing borrower's information-

On the other hand, HARP 2.0 is the non-traditional mortgage refinance program for borrowers who have loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009. This program does not require an appraisal in most cases and documentation is kept to a minimum. HARP 2.0 has helped many underwater borrowers, especially those with more than 125% loan to value, refinance to historically low mortgage rates, thus, saving them a substantial amount of money and eventually giving them back equity at a faster pace. This whole process is helping not only the housing market, but the overall economic recovery. With many borrowers still eligible for HARP 2.0, the online form is available for submission without the need of a social security number. A response with more information is returned almost instantly.

Some negative news. 

FHA announced that the annual mortgage insurance premium will be increasing by 10 basis points or 0.1% which will add approximately $13 per month to the monthly mortgage payment for the average borrower. In addition, premium payments will no longer be able to be canceled as has been the case since 2001.

These changes are being made in order to shore up the agency's insurance fund which has taken a serious hit since the housing crisis began. Throughout this time FHA has kept mortgage rates both low and competitive with conforming mortgage rates, even sometimes lower. 

FHA closing costs (APR) are high due to various FHA fees and the upfront mortgage insurance premium, but these can often be added to the loan amount or paid with seller concessions as allowed by FHA guidelines. The FHA streamline with no cash out and drastically reduced upfront and annual mortgage insurance premiums is available until the end of 2013. This program is for existing borrowers who have loans that were endorsed prior to June 1, 2009. While an appraisal or other documentation is not required for the FHA streamline, borrowers must have a clean mortgage payment record with no late payments for the most recent twelve months.

Read the full story.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Is mortgage relief finally on its way with new HARP?

The New York Times writes, again, about HARP, the Home Affordable Refinance Program, that was introduced two years ago in an attempt to assist homeowners in refinancing their mortgages and reducing monthly payments.

In “A New Shot at Mortgage Relief” Mokoto Rich writes about William D. Compton.

“Like millions of other homeowners, William D. Compton would like to refinance his mortgage so that he pays less each month for his three-bedroom house in Gulf Breeze, Fla. With the savings, he figures he could afford a few extra movies and restaurant dinners or he could buy a new stove and brakes for his car, purchases he has postponed because finances are so tight.

“Although he would appear to be a good candidate, Mr. Compton, 57, has been turned down twice for a federal refinancing program aimed at homeowners like him.

“Still, he has renewed hope. That’s because the government is expanding the Home Affordable Refinance Program, which was meant to help homeowners whose mortgages are backed by the government and whose home values have declined sharply, even below what the borrowers owe. Mr. Compton is one of those underwater homeowners.”

When HARP was launched, it was estimated that it

"could help four million to five million homeowners whose home values had plunged. Yet just 900,000 borrowers — whose loans are owned by Fannie Mae and Freddie Mac, the government-sponsored housing finance companies — have successfully refinanced through the program. Starting early next month, though, banks will begin using new criteria intended to make more borrowers eligible: raising the ceiling on how much owners can borrow over the value of their home as well as relaxing rules that might force banks to take back bad loans from the government. In announcing the change, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, carefully eased expectations, suggesting about 900,000 more homeowners would be helped, roughly doubling the size of the program to date.”

We have been critical of the Federal effort to date since the ceiling on property appraisal values was unrealistically low in New Jersey.

Time will tell if the changes to HARP will help New Jersey residents.

Read the full article.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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Obama administration revamps refi program

Dow Jones reports:

The Obama administration and a housing regulator on Monday unveiled a revamped home-loan refinancing program, aiming to aid hundreds of thousands of Americans whose homes have fallen in value in the wake of the housing bust.

 Didn’t we just go through this last year? Well, yes, but it wasn’t working.

 

The plan represents the latest federal effort to tackle a key impediment to the U.S. economy--a stagnant housing market caused in part by elevated numbers of homeowners who owe more than their homes are worth. It came after numerous Obama administration efforts to stabilize the housing market have struggled in an economy with stubbornly high unemployment.

The overhaul will let borrowers refinance their mortgages regardless of how far their home prices have plunged in any given market, eliminating a previous restriction that shut out homeowners who owed more than 125% of their homes’ current value.

Officials estimated that the changes will help families save $2,500 or more, on average, annually.

The plan is also designed to streamline the refinancing process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as homeowners are current on their mortgage payments.

The refinancing program is open to homeowners whose mortgages are owned or guaranteed by Fannie Mae (FNMA) or Freddie Mac (FMCC), the two government-controlled mortgage giants whose rescue three years ago has cost taxpayers $141 billion to date.

Regulators are revamping a program rolled out in 2009, the Home Affordable Refinance Program, or HARP, which lets borrowers with homes whose values have dropped to refinance. So far, only 894,000 borrowers have used it, of which just 70,000 are significantly underwater.

Fannie and Freddie will issue final pricing information and other technical details by Nov. 15, and some banks have said they could begin taking applications under the new program by as soon as Dec. 1. Mortgage insurers have also agreed to make it much easier to transfer existing mortgage-insurance coverage, which has blocked many borrowers from refinancing.

Read the full story.
　

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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Federal Housing Finance Agency extends the Home Affordable Refinance Program for one year

On March 11, 2011, the Federal Housing Finance Agency (FHFA) announced a one year extension of the Home Affordable Refinance Program (HARP) to June 30, 2012. The program expands access to refinancing for qualified individuals and families who are current on their mortgage payment and who have loans owned or guaranteed by Fannie Mae or Freddie Mac with loan-to-value ratios of between 80 percent and 125 percent. Since the beginning of the program in 2009, Fannie Mae and Freddie Mac have purchased or guaranteed 621,803 loans under HARP (190,180 in 2009 and 431,623 in 2010).

Read FHFA press release.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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HARP on it to make your home more affordable

HARP is the acronym for a government program (they love acronyms) for the Obama Administration's Home Affordable Refinance Program. The program is addressed to the "homeowner who is current on [her] mortgage payments but unable to refinance to a lower interest rate because [her]home value has decreased..."

Eligibility for HARP is determined by answering yes to four questions-
1. Are you the owner of a one- to four-unit home?
2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac?
3. Are you current on your mortgage payments?
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?

If you can answer yes to all four questions, then you may be eligible for the program. The next hurdle is the appraisal because loans are limited to a maximum amount of 105% of the appraisal value. Eligibility and qualification are different things.

The HARP website says:

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to re-finance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.

We hope that HARP lives up to its promise.

Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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