Nenita Dasalla- Single Family Residence Real Estate Sales Consultant » Mortgage loan

Short Sale Soundoff: BofA increases relocation assistance payments

Nenita Dasalla — Fri, 18 May 2012 01:18:56 +0000

Bank of America has launched a nationwide program that offers delinquent mortgage customers increased assistance with relocation expenses – from $2,500 to $30,000 – at the completion of a qualifying short sale.
To qualify for the enhanced relocation assistance payments under the new program, the seller must work proactively with the bank to obtain a preapproved sales price prior to submitting a purchase offer to the bank. A short sale must be initiated by the end of 2012 and close by Sept. 26, 2013, to be eligible for the payment. Qualifying short sales that have already been started but have not closed may be eligible for the relocation assistance.

Initially, the program will be offered on mortgages that are owned and served by Bank of America. Currently, the percentage of loans that qualify for the program is 8 percent nationwide.

http://www2.realtoractioncenter.com/site/R?i=9SkYMMUWJORJ5pAdh1CeLQ

Strategic defaults to continue throughout 2012

Nenita Dasalla — Fri, 20 Apr 2012 04:50:17 +0000

A FICO survey of bank risk professionals found that 46 percent expect the volume of strategic defaults in 2012 to surpass 2011 levels, as more than 25 percent of U.S. homeowners owe more on their mortgages than their homes are worth.

Concerns about strategic defaults were also reflected in response to a question about the consumer payment hierarchy. When asked if the current generation of homeowners considers their mortgage to be their most important credit obligation, 49 percent of bankers said no and 29 percent said yes.

Although concerns remain regarding strategic defaults, other signs point to growing stability in the housing market. More respondents (26 percent) expected delinquencies on mortgages to decline in the coming months than at any previous time in the two years FICO has been conducting this survey. Furthermore, 53 percent of respondents said the housing market would improve by the end of 2012, compared with 24 percent who said the market would deteriorate.

More than half of survey respondents (56 percent) expected the supply of credit for residential mortgages to fall short of demand over the next six months. A similar majority (53 percent) expected the supply of credit for mortgage refinancing to fall short of demand, indicating that lenders remain cautious about the risks in the real estate market.

http://www.fico.com/en/Company/News/Pages/04-11-2012.aspx

U.S. may require banks to provide more information on mortgages

Nenita Dasalla — Mon, 16 Apr 2012 23:55:25 +0000

The Los Angeles Times
The Consumer Financial Protection Bureau is considering tough rules for home loan servicers, including more easily understood statements and warnings before interest rate changes.

Read the full story
http://www.latimes.com/business/la-fi-bank-rules-20120410,0,7307695.story

Low-ball appraisal: Mortgage denied

Nenita Dasalla — Tue, 10 Apr 2012 01:51:52 +0000

CNNMoney
Even as some mortgage standards have eased, hitting a needed appraisal value is proving a frustrating blocker for buyers and sellers and those looking to refinance.

Read the full story
http://money.cnn.com/2012/03/30/real_estate/mortgage-denied/index.htm?iid=HP_River

FHA to deny mortgage backing for credit disputes above $1,000

Nenita Dasalla — Thu, 05 Apr 2012 04:44:33 +0000

As of April 1, potential borrowers with ongoing credit disputes totaling more than $1,000 are no longer eligible for mortgages insured by the FHA.

Under the rule, borrowers must either pay off the outstanding balance on these collections accounts or document a payment arrangement that the lender must then submit to the FHA before closing. The payment arrangement will be counted into the debt-to-income ratio for the new home loan.

The rule excludes disputed accounts from more than two years ago, along with those related to theft. But the lender must document an identity theft or police report on the fraudulent charges.
An FHA spokesman said the rule was designed as another protection for the FHA emergency fund. The fund levels slipped to 0.2 percent of at-risk insurance last year, well below the 2 percent mandated by Congress. The FHA raised insurance premiums on April 1 as well to boost the fund by $1 billion.

http://www.housingwire.com/news/fha-deny-mortgage-backing-credit-disputes-above-1000