| Housing Threatened by Defaults in Sub-Prime Mortgage Market | | Posted Thursday, February 01, 2007 3:02:01 PM by Blog57 Team | | Feb. 1 (Bloomberg) -- Prince Jones Jr. paid $170,000 a year ago for a six-room Cape-style home in St. Paul, Minnesota, financing it with an adjustable 30-year mortgage. Jones, 27, got a so-called sub-prime loan because he was a first-time buyer who is a self-employed barber, has debts and makes about $500 a week. He planned to refinance before December when his monthly payment could jump to $1,646 from $1,291, hoping a good payment record on this mortgage would secure a lower rate. Then last March, a drunk driver smashed into Jones's eight- year-old pickup truck, injuring his spine and putting him out of work for four months. ``It's stressful to have to choose between food, child support or bills,'' said Jones, the father of a seven-year-old daughter and a three-year-old son.... | |
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| | | Video: CircleLending Establishes the Bank of Mom and Dad | | Posted Thursday, December 28, 2006 1:14:53 PM by Blog57 Team | | WALTHAM, Mass., Dec. 27 /PRNewswire/ -- CircleLending, the leader in formalizing and servicing mortgage loans between friends and family, is bringing mortgage services to the masses through structured private loans. Widely regarded as a market pioneer in the financial services industry for designing products to manage personal loans, CircleLending provides services that reduce the financial risks, administrative hassles and emotional pitfalls of interpersonal loans. To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/circlelending/26214/ Through CircleLending, the qualification requirements for a private mortgage are far less restrictive than those at a bank, and with a private mortgage, borrowers benefit from interest rates that are lower than any bank mortgage available.... | |
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| | | Trump mortgage chief inflated resume | | Posted Wednesday, December 27, 2006 3:02:48 PM by Blog57 Team | | Donald Trump may have hired one more apprentice than he thinks. When the real estate mogul launched Trump Mortgage in April, he said it would inject integrity into an industry that has the reputation for giving customers a raw deal. To head the mortgage broker, Trump hired E.J. Ridings, who the company's Web site touts as a seasoned pro. "Trump Mortgage is going to take better care of people than anyone in the mortgage industry ever has," Trump said at the time. .... | |
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| | | Banks Adjusting Mortgage Loan Rates | | Posted Monday, November 13, 2006 7:01:26 PM by Blog57 Team | | Banks are modifying their lending rates for mortgage loans by lowering or repealing their prime rates. In addition to these bank lending rate increases, if the government follow-up real estate measures include reinforcing mortgage loan controls, including Loan to Value Ratio (LTV) and Debt to Income Ratio (DTI) controls, residential mortgages are expected to become harder to get. According to the Financial Supervisory Commission and the bank industry yesterday, Kookmin Bank decided to lower its discretionary lending rate, which can be offered by branch managers, from 0.7 percentage points to 0.5 percentage points, down 0.2 percentage points starting November 17. This means that lending rates became 0.2 percentage points higher, in that only those who meet specific qualifications, including having established salary transfer accounts and savings accounts, can enjoy the benefits of branch manager discretionary lending rates.... | |
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| | | NATION'S HOUSING: Latinos losing out on mortgage loans | | Posted Saturday, November 11, 2006 11:20:43 AM by Blog57 Team | | Picture this scenario: You've lived in this country for the past 15 years, earned a decent wage, raised a family, always paid your rent, utilities, cell phone bills and other expenses on time. But you made little or no use of the conventional banking and credit systems -- avoiding bank loans, credit cards and debts in general. Now you go to apply for a mortgage to buy your first home and get smacked with this sobering news: Sorry, but there is not enough information in your national credit bureau files to score your credit. We have to either charge you an interest rate well above prevailing rates -- 9 percent or 10 percent in a 6 1/2 percent market -- or reject you altogether. That is what large numbers of Latino families now face, according to a new survey. The 14,000-member National Association of Hispanic Real Estate Professionals polled 500 of its members and found that: • Nearly one-third said their clients end up paying "subprime" rates on mortgages because their limited credit histories make them appear high-risk when lenders use traditional FICO scores, the dominant credit evaluation method in the highly automated mortgage underwriting process.... | |
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| | | Delta Financial Delivers Strong Quarter, Looks Cheap | | Posted Friday, November 10, 2006 1:15:49 PM by Blog57 Team | | Vincent DiCarmine submits: This morning Delta Financial (DFC), a subprime mortgage lender we analyzed in September, released its 3rd quarter earnings. Despite the housing slump, weak GDP growth and competitors' woes, the company did a rather good job this quarter. In a worsening environment, Delta obtained satisfying results by sticking to its disciplined business model: originating mainly (87% this quarter) fixed rate mortgage loans sporting low pre-payment and default rates, in large part through their in-house cheap retail channel (for about 50% of their loans). 3rd quarter 2006 highlights: * 3rd quarter net income: $0.33 per diluted share (+6.5% year over year), * originated $2.9 bil. year-to-date (+6% year over year but 3% less sequantially), * mortgage loans held for investment at the end of September 2006: $6 bil.... | |
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| | | Mortgage loan officer joins Ocoee location | | Posted Wednesday, November 08, 2006 11:07:57 PM by Blog57 Team | | First Home Loans of Osceola, a Pinnacle Financial Corporation, announced last month that Annie Calderon joined the company as a mortgage loan officer at the Ocoee branch, located at 1575 Silver Star Road. Headquartered in Orlando, Pinnacle Financial is an independently owned direct mortgage lender. The company closed more than $5.5 billion in residential mortgage loans in 2005. For more information, log onto www.pinnaclefinancial.com. .... | |
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| | | Suspected mortgage fraud up 35#x25, feds report | | Posted Monday, November 06, 2006 11:16:55 PM by Blog57 Team | | The once-booming housing market and rising popularity of nontraditional home loans have produced an unwanted byproduct: a 35 percent increase in suspected mortgage fraud. A new report by federal regulators indicates the fraud is being perpetrated by people seeking to buy homes or others in cahoots with brokers and agents who cheat the system. The Treasury Department's Financial Crimes Enforcement Network, known as FinCen, on Friday released its first report on mortgage loan fraud, which is said to be one of the fastest-growing white-collar crimes in the country. The agency undertook the review after seeing a significant rise in the number of so-called suspicious activity reports ? forms most often used to report suspected money laundering ? that it received from U.S.... | |
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| | | Suspected mortgage fraud up 35 percent, agency reports | | Posted Saturday, November 04, 2006 3:21:01 PM by Blog57 Team | | WASHINGTON Mortgage fraud is booming, and Florida is among the leaders. The once-booming housing market and rising popularity of nontraditional home loans have produced a 35 percent increase in suspected mortgage fraud. A new report by federal regulators indicates the fraud is being perpetrated by people seeking to buy homes or others in cahoots with brokers and agents who cheat the system. The highest incidences of suspected mortgage fraud in 2005 were in California, Florida, Georgia, Illinois and Texas. The use of false statements by prospective homebuyers and identity theft were cited in a number of the reports by federal investigators. The more intricate schemes _ appraisal fraud, fraudulent flipping of property, use of straw buyers and identity theft _ often are committed with the complicity of real estate industry insiders like agents, mortgage brokers, appraisers and title examiners.... | |
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| | | Charge by carpet area, get cheaper loans | | Posted Thursday, November 02, 2006 3:01:51 PM by Blog57 Team | | MUMBAI: Builders, who charge homebuyers on the basis of carpet area, will get cheaper loans from Housing Development Finance Corporation (HDFC). India's leading mortgage bank has been lobbying for a shift to pricing apartments on a carpet area basis. Besides providing a fair deal to buyers, the draft housing policy is expected to make housing more affordable in Mumbai. Deepak Parekh, chairman, HDFC, said, "India is the only country in the world where rental market is not encouraged. There are certain people who can afford only rental housing and promoting rental properties is something that was much required." He added, "We are incentivising developers to shift to pricing apartments on the basis of `carpet area' by giving them lower interest rates. Homebuyers were being taken to the cleaners by some builders who have been adding over 40% to carpet area by pricing properties on 'built-up area' basis," said Mr Parekh.... | |
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