All Posts Tagged With: "toxic"
FHA “Short Refinance” — Is This The Way To Reduce Foreclosures?
Imagine that you have a mortgage and want to refinance to get a lower rate but the debt is greater than the value of the home. Imagine also that if you can refinance you can avoid foreclosure.
The government is now trying to address this scenario, something which is common across the country, especially for those [...]
9Aug2010 | Peter G. Miller | 2 comments | Continued
What Is A Mortgage Loan Worksheet?
Starting in 2010 the government introduced a new Good Faith Estimate form which required lenders to spell out loan costs in very precise and standardized language — information which lenders must honor at closing.
The new form from HUD has raised a question among some lenders as to whether a pre-approval letter or a pre-qualification letter [...]
Mortgage Modification or Refinance — What’s The Difference?
Is it better to modify a mortgage or to refinance? While both result in new loan terms, the two choices are very different.
When you refinance a mortgage you replace an existing loan with a new one. There’s no need to negotiate with the old lender because his mortgage claim will be extinguished. However, borrowers with [...]
$624 Million Settlement Doesn’t Mean A Dime For Mortgage Borrowers
According to the State of New York it has now achieved a $624 million preliminary settlement from Countrywide Financial Corporation and its accounting firm, KPMG. The arrangement must be approved by a California judge, perhaps in September
It is alleged that “Countrywide, one of the country’s largest mortgage lenders, violated securities laws by making misstatements and [...]
Mortgage Reform Now — 6 Ways To Fix What’s Broke
For all the talk of reform on Wall Street, a quicker and easier way to assure that big banks don’t fail and small borrowers don’t get screwed is to simply fix the mortgage origination system.
Fixing the mortgage system is crucial if we’re to prevent another financial meltdown. If the mortgages are done right than mortgage-backed [...]
Are Toxic Loans Coming Back?
Our good friends at Realty Times report that some in the mortgage industry believe that no-doc loans and other forms of toxic finance “may soon be making a comeback” and that “some people can’t wait for the no-doc loans.”
Really?
I have no doubt that some people would be elated by the return of liar loans [...]
Mortgages, Foreclosures & The Disgrace of Journalism
It was long ago when I received a degree in journalism.
I wanted to study journalism because it gave me an opportunity to travel and to meet interesting people. I have been a correspondent on Capitol Hill and at the White House, I have lived on an offshore drilling rig in pursuit of a story, I [...]
Why Have Piggyback Mortgages Disappeared?
We usually define a “conventional” mortgage as financing with 20 percent down. Since most people don’t happen to have 20 down much less 20 percent plus closing costs, there has always been a market for mortgages that somehow require fewer dollars up front.
The way you get loans with less down is to find [...]
Foreclosures — No Worries, No Vision
The lending community will plainly tell you that foreclosures are on the rise — in part because of rising interest levels — but don’t worry. According to the party line, there’s no need for alarm because the problem is contained to subprime loans and just a few states.
For example, John Robbins, Chairman of the Mortgage [...]
Foreclosure Numbers at New Highs: Are Toxic Loans To Blame?
Foreclosures used to be a rarity and for the most part that’s still the case. As of the second quarter of 2008 only about 2.75 percent of all loans were in the process of being foreclosed, according to the Mortgage Bankers Association.
That term “in the process of being foreclosed” is important. Neither borrowers nor [...]
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