According to ALTA, the allowance of Wall Street Home Resale Fees would force homeowners to pay a large fee to sell their homes and also add a complicated legal roadblock to the home sale process. As a result, this controversial financial scheme is facing opposition across the country, ALTA said.
May housing sales up for 9th month in a row as closed units up 19.8 percent over May 2009 while prices climbed 6.9 percent in same period. All regions were up strongly in both units closed and average prices. Continued impact of tax credit and low interest rates are main reasons.
Economic Recovery could be Quicker than past Recessions according to the experts. Citing growth in both consumer and business spending, economists Justin Weidner and John C. Williams said recovery “is likely to be faster than from the two previous recessions” in a report released Monday. The Northwest Suburban Real Estate Market continues to Rebound with [...]
Experts expect a speedy recovery and gains in Real Estate Sales.
Defying many analysts’ predictions, economists Justin Weidner and John C. Williams say the rebound ‘is likely to be faster than from the two previous recessions.’
New Fannie Mae Underwriting standards beginning June 1st
Rein in credit urges before closing
Beginning June 1st Fannie Mae will require a second credit check just before closing to see if you still qualify for the mortgage that was approved weeks earlier.
THE LAST BREATH OF INTEREST-ONLY LOANS?
Interest Only Loans have served a good purpose in mortgage lending thru the years. Much has been written against the use of the interest only loan instrument and much of the criticism is justified. For the “enlightened” an interest only loan may have been used as a more temporary form of financing, often used by investors and flippers or consumers that knew that they would sell the home within the first 4-5 years. Since so little principle pay down occurs in the first few years in the popular 30 year fixed rate conventional loan, the lower interest rate of an interest only loan was attractive and the lack of principle pay off was not that different than a conventional loan for only 3-5 years.
Unfortunately, the pure interest only loan of former years morphed into a hybrid form of adjustable rate mortgage with a sting. The interest rate changes of the hybrid interest only loan backfired on uneducated borrowers. Because of the low initial interest rate the interest only loan was used by many buyers that couldn’t possibly afford the mortgage after a reset.
Now Fannie Mae and Freddie Mac has lowered the boom. In the last quarter of 2009, around 18 percent of the interest only borrowers were delinquent. The rest of Fannie’s portfolio had a delinquency rate of only 4 percent.
Beginning in September Freddie Mac will stop buying interest-only loans. Fannie will continue with tougher standards that include a 30 percent down payment and a credit score of at least 720. Additionally, the borrower must have 24 months of liquid-asset reserves following the closing.
In a good move, Fannie will also require that lenders take the responsibility of evaluating if the borrower can continue making payments if the rate increases in the first five years.
What does this all mean? A more sensible approach to underwriting and turning back the clock about 15 years to a more conservative approach to mortgage financing.
Real Estate Sales are Improving in Hoffman Estates
Real Estate Sales Improve in Palatine, Il
Image via Wikipedia Schaumburg Real Estate Sales Statistics February 2010 Condo and Townhome Sales February sales were up 58.7% from February 2009 and 12.5% improved over January sales. There were 27 condo sales posted in Schaumburg in the month of February. YTD sales are running 88.9% ahead of the same period in 2009. The Median [...]