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On an unadjusted basis, purchases rose 3.5 percent compared with the previous week, but were 30.3 percent lower than it was the same week a year ago.

Including mortgage applications to refinance, total applications increased 3.2 percent on an adjusted basis.

Mortgage rates were the second lowest ever observed by the MBA’s weekly survey:

· 30-year fixed-rate mortgages decreased to 4.25 percent from 4.34 percent.
· 15-year fixed-rate mortgages decreased to 3.67 percent from 3.74 percent.

Source: Mortgage Bankers Association (10/27/2010)

The hearing, scheduled for Thursday, November 18th, will investigate the problems that have recently surfaced in the mortgage servicing industry, including improper and possibly illegal foreclosure processing.

The Senate Banking Committee, too, plans to hold its own hearing on the matter on November 16th. Congresswoman Maxine Waters (D-California), who chairs the House subcommittee, expressed concern that the nation’s major banks themselves have revealed that improper and potentially fraudulent foreclosures have been widespread, not merely isolated incidents. Several of the largest mortgage servicers have voluntarily suspended at least some of their foreclosure proceedings to investigate their procedures.

In a statement issued Tuesday, Waters criticized Bank of America and GMAC Mortgage for lifting their foreclosure freezes this week. “I am disappointed by Bank of America’s rush to resume foreclosures after such a short review that calls into question how it could examine more than 100,000 mortgages so quickly,” Waters said. “I am also concerned that GMAC is moving ahead with foreclosures despite an employee’s admission that he ‘robosigned’ 10,000 foreclosure affidavits a month without verifying the accuracy of the documents.”Waters continued, “There is ample evidence that homeowners have been harmed by wrongful foreclosures. Regulators need to initiate a full review of Bank of America, GMAC, and other servicers because we cannot leave it to the banks to review and police themselves.”

In addition to hearing testimony from industry representatives, government regulators, and outside watchdogs at the November hearing, Chairwoman Waters says she wants to examine various solutions to address the nation’s strangling foreclosure crisis.

Waters recently introduced the Foreclosure Prevention and Sound Mortgage Servicing Act (H.R. 3451), which would prohibit a bank from initiating foreclosure proceedings without offering the homeowner loss mitigation. 

By: Carrie Bay, DSNews.commDDSNews.comSNews.com

• The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.

• A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”

• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.

• In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs. One list of approved businesses can be found at 203kcontractors.com.

• Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.

• For additional information about the FHA 203(k) rehabilitation program, please visit http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm.  

Read the full story: http://www.nytimes.com/2010/10/17/realestate/mortgages/17mort.html?_r=1&ref=realestate 

Entire blog at: http://portal.hud.gov/portal/page/portal/HUD/press/blog/2010/blog2010-10-18

• Making Home Affordable Program 
• Hardest Hit Fund
• Consumer and Business Lending Initiative
• Public-Private Investment Program
• Automotive Industry Financing Program

Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief and then fail to deliver. Their goal is to make a quick profit through fees or mortgage payments they collect from you, but do not pass on to the lender. Sometimes, they assume ownership of your property by deceiving you, the homeowner. Then, when it’s too late to save your home, they take the property or siphon off the equity. You’ve lost your home to foreclosure despite your best intentions.

If you think you may be facing foreclosure, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how to recognize a foreclosure rescue scam. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that legitimate options are available to help you save your home.

For More Information,

To learn more about mortgages and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a new video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Nearly one-third of Americans, or 29.3 percent, has a credit score this low, according to data provided by myFICO.com.

Not only are a third of Americans locked out of owning a home, but less than half qualify for the best rates. The lowest interest rates went to mortgage borrowers who were among the 47 percent of Americans with credit scores of 720 or above.

Article by Carrie Bay at:  http://www.dsnews.com/articles/low-credit-scores-blocking-1-3-of-americans-from-homeownership-zillow-2010-09-28

Real estate owned (REO) resales accounted for 32% of all resales in August — comparable to 36% in July but down from 42% of all sales one year earlier.

Speculator and investor house buying represented 22% of resales in Southern California (SoCal) and 18% in the Bay Area. The high-tier home market accounted for 18% of resales in SoCal and 34% of Northern California (NorCal) sales, up from 16% and 29% one year earlier.

Federal Housing Administration (FHA)-insured loans represented 37% of SoCal and 24% of Bay Area mortgages recorded in August 2010, down from 40% and 25% one year earlier. These drops in FHA-insured originations are consistent with the fact that expensive homes have become a higher percentage of resales.

Adjustable rate mortgages (ARMs) provided for 6% of total mortgages in SoCal and 9% of NorCal mortgages. Jumbo loans (mortgages over $417,000) accounted for 18% of SoCal and 36% of Bay Area purchase-assist financing in August.

Cash purchases represented 26% of SoCal and 26% of NorCal sales in August.

Re: “California August Home Sales” from MDA Dataquick

By ft Editorial Staff, Copyright © 2010 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online