The FHA is tightening its belt when it comes to mortgage loans, on the heels of an investigation into 15 FHA lenders whose FHA mortgage insurance claims were markedly high.

Myriad notices and comments about the impending qualification changes have been announced, but will take effect this spring, including raising mortgage insurance fees that borrowers must pay, capping the amount of cash that sellers can contribute for closing costs and requiring higher down payments for  borrowers with poor credit scores.

With foreclosure rates tapering off in February compared to January, there is hope on the horizon, albeit rates are still higher than that of the previous year. The FHA is insuring as many as 50% of all purchase loans, as compared to 3% before the collapse of the subprime market.

With the tighter restrictions on FHA loans, the options for seeking other financing simply don't exist, making some wonder if this will add fuel to the fire to the weakened housing market.

Read more at Realty Times.

Posted in Mortgage, Real Estate Market Conditions, Foreclosure, Real Estate Industry

The Mortgage Bankers Association (MBA) sees a light at the end of the tunnel, citing an ease in foreclosure rates with the fourth quarter of 2009 seeing a smaller percentage of delinquent mortgages and a drop in those entering foreclosure.

In a written statement, their chief economist, Jay Brinkmann, stated: "We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007."

The MBA survey took a look at 44.4 million loans on one- to four-unit residential properties, or about 85% of all first-lien residential mortgage loans that are outstanding in the country. The good news is fewer problem loans are entering delinquency.

Read more about the survey and its findings on RISMedia.

Posted in Mortgage, Real Estate Market Conditions, Foreclosure, Real Estate Industry, National News

Home prices are low, with historically cheap mortgages and the extension of the homebuyer tax credit, now open to even more buyers. With signs of potential turnaround, you may be wondering if now is the best time to buy before prices rise.

Money Magazine writes about questions you should be asking yourself to decide whether or not buying now is the right time for you.

Will you still be able to make the tax credit? If you haven't started looking, it may not be possible. How much could you stand to lose by waiting? If you're in an area where prices continue to decline, maybe you can wait--but some people in some areas may see a jump in mortgage rates. Can you sell your current home quickly? Selling now can be tricky and pricing aggressively is paramount to selling quickly.

Read more on CNNMoney.com.

Posted in Mortgage, Real Estate Market Conditions, Real Estate Industry

The Mortgage Bankers Association (MBA) reported that the percentage of loans in the foreclosure process ticked up to a new record high in the final three months of 2009, and could continue to climb depending on the fate of a record number of borrowers who are "seriously delinquent," or behind on their payments by 90 days or more.

On the flip side, a percentage of mortgages 30 days past due eased from the third quarter to the fourth. MBA Chief Economist Jay Brinkmann called it a concrete sign of a "beginning of the end" of an unprecedented wave of mortgage delinquencies that began in early 2007.

The survey conducted by MBA shows many more findings, but the drop in short-term delinquencies could be a turnaround point.

Read more in the report from Matt Carter at Inman News.

Posted in Mortgage, Real Estate Market Conditions, Real Estate Industry, National News

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) today, in which the 30-year fixed-rate mortgage (FRM) averaged 4.93 percent with an average 0.7 point for the week ending February 18, 2010, down from last week when it averaged 4.97 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.6 point, down from last week when it averaged 4.34 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12 percent this week, with an average 0.5 point, down from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.04 percent.

The 1-year Treasury-indexed ARM averaged 4.23 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.80 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery," said Frank Nothaft, Freddie Mac vice president and chief economist.

Read more and view the survey summaries.

Posted in Mortgage, Real Estate Market Conditions, National Association Of Realtors, Real Estate Industry