Chase is leading the way in making a move back into the Jumbo Loan Market. They are requiring that applicants for these loans have a Chase Checking account because their research shows that mortgage holders that are checking account customers are less likely to default.
JMO:
I'm encouraged that the big banks are acknowledging that a market turnaround will require that we revitalize the jumbo loan market. It is plain to see that without jumbo financing, home prices are trying to find the conforming loan limit as their value.
Tuesday, September 1, 2009
Wednesday, August 26, 2009
Banks Get Picky About Credit Cards
This is a very interesting article. The implications of this are far reaching.
JMO:
We've created a number of conveniences with credit cards. By making credit cards harder to qualify for, and less affordable you will see more consumers returning to a cash/debit card payment method. This will do several things including changes to rental card and hotel policies and rates. It will also cause consumers to save more, live within their means and in turn spend less. Remember, if we're not spending we are not "stimulating the economy". When you acknowledge the BILLIONS if NOT TRILLIONS of dollars that are spent using credit cards you can imagine what a 10-20-30% decrease in usage will do to our economy.
JMO:
We've created a number of conveniences with credit cards. By making credit cards harder to qualify for, and less affordable you will see more consumers returning to a cash/debit card payment method. This will do several things including changes to rental card and hotel policies and rates. It will also cause consumers to save more, live within their means and in turn spend less. Remember, if we're not spending we are not "stimulating the economy". When you acknowledge the BILLIONS if NOT TRILLIONS of dollars that are spent using credit cards you can imagine what a 10-20-30% decrease in usage will do to our economy.
Tuesday, August 11, 2009
Shutting Down Fannie/Freddie?
Last Week Taylor, Bean & Whitaker and Now Moody's Reports...
The two giant players in the US home loan finance market share a ‘bleak’ near-to immediate-term outlook as losses continue to mount, according to Moody’s Investors Service. Regulators may begin to wind down government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac within the next 18 months, Moody’s said Monday in a global banking analysis report. Source: National Mortgage News.
JMO:
If this is true (I will continue to research), then it signals a significant lack of confidence in the mortgage/real estate market on the part of the Gov't (current owner of Fannie/Freddie). Some of the key questions are. How will mortgages be issued/serviced/sold in the future. These are interesting times...
Friday, August 7, 2009
Report Says That Nearly Half Of Homes In The U.S. Will Have Negative Equity By 2011
Deutsche Bank believes that nearly half of all mortgages will have negative equity by 2011, meaning that they will be worth less than the amounts owed on them. This certainly coincides with the statistics presentd by JMO in our blog post on July 14th (REO's expected to increase an ADDITIONAL 150% IN 2009).
JMO:
This only addresses that nearly 50% of homes will have negative equity. It does not estimate of those properties how many will become short sales, foreclosures and deeds-in-lieu. Of additional concern is how many purchasers of homes in the last year will find themselves in this same "underwater" position. If you are intending on holding onto or acquiring property, please make sure you have a long-term (10 yrs or more) strategy in place that will allow you absorb the "paper loss" you will take.
JMO:
This only addresses that nearly 50% of homes will have negative equity. It does not estimate of those properties how many will become short sales, foreclosures and deeds-in-lieu. Of additional concern is how many purchasers of homes in the last year will find themselves in this same "underwater" position. If you are intending on holding onto or acquiring property, please make sure you have a long-term (10 yrs or more) strategy in place that will allow you absorb the "paper loss" you will take.
Sunday, July 26, 2009
Loan Modification Success Stories
National City:
1. Negotiated a 2nd mortgage from $148,000 to $35,000
2. Wrote off a $200,000 2nd mortgage when homeowner proved that there was -0- equity
Wachovia:
Reduced the principal balance $40,000 and lowered the interest rate by 1.5%. The homeowner is self-employed and unable to prove any income.
JMO:
We are starting to see progress with the banks in their motivation to work with homeowners on modifications and short sales. If you are trying but, not having success please contact me....robin@proequitymanagement.com
1. Negotiated a 2nd mortgage from $148,000 to $35,000
2. Wrote off a $200,000 2nd mortgage when homeowner proved that there was -0- equity
Wachovia:
Reduced the principal balance $40,000 and lowered the interest rate by 1.5%. The homeowner is self-employed and unable to prove any income.
JMO:
We are starting to see progress with the banks in their motivation to work with homeowners on modifications and short sales. If you are trying but, not having success please contact me....robin@proequitymanagement.com
REO's expected to increase an ADDITIONAL 150% IN 2009
The Center For Responsible Lending projects 2.4 million foreclosure starts in 2009, including 1 million already completed. And real estate-owned assets are on the way up again since most of the foreclosure moratoria have been lifted. States, including Michigan, Arizona, Washington, Nevada, Oregon and New York, are seeing REO activity spike, according to RealtyTrac, which reported a total of 65,017 properties in REO for May. Full Story
JMO:
We are starting to see more REO activity in both CA and AZ. In a related article we are also hearing that companies are ramping up hiring in their loss mitigation departments and upgrading technology to better equip themselves to make bulk decisions.
Tuesday, July 14, 2009
Geitner Urges Banks To Improve Loan Modification Process
In this letter to key banks Treasury Secty Tim Geitner is urging key banks to increase staff, appoint liaisons, streamline the process and increase the number of loan modifications.
JMO:
It' s simple. Someone in Washington finally realized that the problem is not being solved by helping everyone EXCEPT the homeowner. Nearly a trillion dollars given to banks and insurance companies and the credit crunch is still worse than ever. Gov't acquisition of Fannie/Freddie, and too many "foreclosure moratoriums" to keep count and the housing crisis is getting worse. People who can afford to pay their mortgages are making the financial decision to "walk away" .... I heard that the that the Discovery Channel is in production on an episode call "When Good Homeowners Go Bad!".
JMO:
It' s simple. Someone in Washington finally realized that the problem is not being solved by helping everyone EXCEPT the homeowner. Nearly a trillion dollars given to banks and insurance companies and the credit crunch is still worse than ever. Gov't acquisition of Fannie/Freddie, and too many "foreclosure moratoriums" to keep count and the housing crisis is getting worse. People who can afford to pay their mortgages are making the financial decision to "walk away" .... I heard that the that the Discovery Channel is in production on an episode call "When Good Homeowners Go Bad!".
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