During the week of July 19, FHA published a revised version of loss mitigation options for borrowers coming to the end of their forbearance period. FHA terminated the old framework. Now, FHA offers two options. First, a COVID-19 recovery standalone partial claim for borrowers who can resume making payments on the mortgage. Second a COVID-19 recovery modification option for borrowers […]
UPDATE: The CFPB in April 2021 rescinded consumer friendly rules put in place for Covid 19 and during a shortage of appraisers. There is a real risk of appraisal delays killing deal financing, delaying deals, or causing thousands in extra costs for borrowers. In our prior post on FOMO, we covered just what FOMO is and how it might be […]
Rent control has been used in a number of cities by politicians claiming to want to provide affordable housing to those who cannot afford to buy. The question of good or bad policy rests on where you fall — in or out of a rent controlled apartment. Those whose rent is capped experience a lower overall cost to rent over […]
Consumers continue paying higher prices every day as the Biden administration’s spending continues to flood money into the US. First, home prices spiked, then rents spiked. For those facing difficulty paying a mortgage or rent, next comes inflation in the rest of the items. Insurance, utility bills, food, gasoline, and even household items like detergent have increases in prices pushed […]
A ruling on June 23 by the United States Supreme Court crushes FNMA and FHLMC. (see Collins vs Yellen). FNMA and FHLMC both effectively went broke at the beginning of the housing crisis with no liquidity and no capital. As government sponsored enterprises (GSEs) with the ability to call on the US Treasury, they were placed in conservatorship. Conservatorship provides […]
Whether you’ve bought a house, re-financed or borrowed money, rates reflect historic lows. Credit card rates haven’t seen any help though. The Fed is keeping rates (artificially) low for borrowers. Have deposits also? Don’t count on earning any interest. Soon you may have to pay to keep your money at a bank like many countries in Europe and Asia. As […]
Building permits and housing affordability go hand in hand. Without building, increasing population has nowhere to live. Build less housing than is needed and prices skyrocket quickly. Build too many homes and prices remain flat. Areas with unfriendly building departments concentrate on the west coast and northeast. Cities such as LA, San Francisco, Boston, and Portland actively discourage much building […]
At the end of 2020, mortgage delinquencies and the mortgage delinquency rate fell from the 3rd quarter of 2020. It’s still well above a year ago. What types of mortgages are performing best and which are the most delinquent?
The current supply of housing for sale is at one of the lowest points in recent history. Some estimates put it in a 1-2 month range instead of a typical 6 months. In prior posts, we’ve discussed the record high prices of lumber due to shortages having an effect to delay new homes. However, there have been other spikes in […]
Many who could work from home discovered they could work from home in a different location. One which costs less. One which had more room. As a result, large cities like San Francisco and New York saw an outflow of mobile workers. Many were looking to move to better manage finances or acquire additional space from which to work. Both […]
DTI has been a component of mortgage underwriting and loan underwriting for decades. The general rule was 28/36 for a long time. If you are unfamiliar with DTI, pick up a copy of Winning Mortgage, Winning Home; you should not be applying for a mortgage without understanding these numbers and what they mean for you. Politicians pushed to raise these […]
2020 was a big year for mortgage loans. Interest rates fell and millions re-financed or purchased a new home. For the vast majority of borrowers, they looked at the rate and took it. Could they have done better on the rate or did they overpay? Winning Mortgage, Winning Home is designed to prepare borrowers for getting a better rate. Let’s […]
What is the housing market status at present? The news contains story after story on the housing market and home prices. Like any good story, media hypes it over and over and over as if every story was Armageddon. Does the hype paint a true picture of the market or does it panic the crowd into FOMO without reason? Home […]
Thank you for the 10s of thousands of page views, all the book purchases and the positive comments/feedback from following the book. Congratulations to everyone who saved thousands on the mortgage and planned well with our book. To close out the year, Winning Mortgage, Winning Home is discounted for Christmas and the holidays! Go to Amazon with your recipient’s email […]
UPDATED. Each month and each year, the Bureau of Labor Statistics tracks and publishes inflation data. This data then creates the annual Cost of Living Adjustment for Social Security recipients and Social Security taxes on workers. COLA (Cost of Living Adjustment) represents increases in Social Security payments to retirees as well as adjustments to other items. For workers, the actual […]
Many first time borrowers are challenged by student debt racked up recently or even a decade or more in the past. Winning Mortgage, Winning Home outlines how student loan payments fit both in the actual budget and in the lender’s calculated underwriting. HUD announced on June 18 that it will change the way lenders underwrite student debt. The changes become […]
Failure of lenders to close on time frustrates many borrowers. This failure to close on time can be found in our summary of frequent borrower complaints. Many reasons account for delays in closing on time. But home buyers can be hardest hit when closing delays occur. Purchase contracts have deadlines for financing and closing. Missing those deadlines can create significant […]
Pessimistic home buyers find limited supply and high prices while looking for a new home. According to a recent survey by Fannie Mae, buyers are the most pessimistic in a decade and moderate income buyers expressed the most frustration. These are buyers with household income between $50,000 and $100,000. Winning Mortgage, Winning Home provides examples of home buying steps and […]
Investor’s Business Daily (IBD) has a long term track record of forecasting and analyzing markets, the economy and consumer attitudes. Following is an excerpt and distillation from IBD’s recent September poll data. The complete IBD/TIPP Economic Optimism Index most recent report can be found by clicking on the hyperlink. The recent September report provides an insight into recession, inflation and […]
What’s the latest information on forbearance help?
The Federal Reserve has telegraphed it wants to rein in its continuing massive asset purchases. It may begin in 2022 or perhaps as early as November 2021. Note that doesn’t mean unwinding the $8.5 trillion of money it has pumped into the economy. This $8.5 trillion propped up and inflated asset prices of everything over the past decade. The list […]
Which agency fiefdom will expand the most? Is a fight over territory and fiefdoms in the making at CFPB vs FHFA? Government bureaucrats often seek to expand their reach as much as they can slip through in new regulations. Is the new FHFA Refi program for lower income borrowers at odds with CFPB’s new push for QM/ATR? The Consumer Finance […]
Adjustable rate mortgages (ARMs) move up and down in popularity depending on the level of interest rates. Many choose an ARM such as a 7 year or a 5 year because they don’t expect to be in a home for a long period. These two loans have a period where the interest rate is fixed (7 years or 5 years, […]