Welcome to Home Mortgages
Home Mortgage Normal Article
This is a selection made from among articles on Home Mortgage Normal. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
Mortgage Freeze - Who Will Still Be Out In The Cold?
By Shannon Luscher
What does this Rate Freeze Look Like - Who Qualifies?
A proposed 5 year rate freeze for sub-prime borrowers whose mortgage loans were originated between January 1, 2005, and July 31, 2007, with rates that are due to reset between January 1, 2008, and June or July of 2010.
What are the other requirements for this proposal?
Borrowers must be able to afford their existing rates and be current on their payments. Under the proposed plan, homeowners who have demonstrated that they are a reasonable credit risk but who could not afford their house payments with higher rates would qualify for "fast-tracked" loan modification and a 5-year interest rate freeze.
Apparently, borrowers who have fallen behind on their loan payments might still qualify for the freeze, but they would face more stringent stipulations before receiving any such loan modification.
Commentary
Whether or not this plan will make any significant improvement to that rate of defaults really remains to be seen. One thing that stands out is that it is not going to bail out every struggling homeowner. In my market it's not just the rate adjustments that are problematic. It seems to me that loose lending standards allowed borrowers to buy more of a home than they could really afford. I use the term really because obviously they could technically afford the home or they wouldn't have qualified for it in the first place. Not ground-breaking news in a nation that spends like no other. Who doesn't want the biggest bang for their buck? As a broker, that is one thing that I don't like to see my clients do. The products were out there for the taking. If people were maxed out from the beginning there's really no margin of error once they fall behind. How many of these type of situations will be addressed by the plan?
My feeling is that it's not just an ARM problem. Furthermore, one might ask, "How is this plan fair to those conventional borrowers who have or will incur rate adjustments according to the terms of their loans, but are not getting the benefit of any rate freeze?" Sounds like a class action lawsuit waiting to happen.
Shannon Luscher
VP Elite Mortgage Solutions, Inc.
Visit the Elite Mortgage Daily Blog for Mortgage News & Insights at http://elitemortgagesolutionsdailyblog.com/
Wisconsin borrowers can find more information about rates and products by visiting my comprehensive website - http://www.elitemortgagesolutions.com/
Article Source: http://EzineArticles.com/?expert=Shannon_Luscher
http://EzineArticles.com/?Mortgage-Freeze---Who-Will-Still-Be-Out-In-The-Cold?&id=866890
Home Mortgage Normal Specific links
Watch Luxe TV Now!
- Anything and everything a girl could want to make her life better! All Free!
-- http://www.mevio.com/
Global News Videos - Browse, Search, Watch!
- Your source for news videos from around the world. Politics, sports, entertainment, business and more. Browse and search it all now!
-- http://www.blinkx.com/
Top 25 Hottest Female Athletes
- Check out the hottest women in sports. From Maria Sharapova to Danica Patrick, check out Hollyscoops annual countdown to these athletic beauties.
-- http://www.hollyscoop.com/
Watch Funny Videos!
- Click here to see funny videos, pictures, jokes, commercials, and more funny stuff from Comedy.com.
-- http://www.comedy.com/
TidalTV
- Today's Hit Shows. Classic TV. Plus the Best Shows You've Never Seen. Watch it all Now for Free on TidalTV.
-- http://www.tidaltv.com/
Home Mortgage Normal News
Lloyds TSB Is in Talks to Buy Mortgage Lender HBOS (Update3) - Bloomberg
Sept. 17 (Bloomberg) -- Lloyds TSB Group Plc , the bank that considered buying Northern Rock Plc before it collapsed, is in talks to acquire HBOS Plc after the mortgage lender lost three- quarters of its market value this year. The banks are in ...
Read more...Bernanke Says Normal Markets Needed or Growth to Halt (Update3) - Bloomberg
Sept. 23 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. economy will shrink if markets don't begin functioning normally, joining Treasury Secretary Henry Paulson in urging skeptical lawmakers to quickly pass a $700 billion ...
Read more...Ministers mull new mortgage lending scheme - Belfast Telegraph
The government is considering a series of options including state-backed schemes to help fund new mortgage lending, which would run alongside but be separate from the successor to the Bank of England's Special Liquidity Scheme (SLS). The Bank's new ...
Read more...Don't Sell Those Ginnie Maes - BusinessWeek
HSH Associates runs a great Web site with lots of free data for checking the latest mortgage rates. One of the things I keep hearing from Realtors and home builders is that rates are still low. That’s true if you’re comparing them to the 20 ...
Read more...Where failure is the only 'option' - Detroit News
Brian J. O'Connor: Money & Life Where failure is the only 'option' Is the mortgage crisis going upscale? Actually, home foreclosures are down all over Metro Detroit -- except for swanky Oakland County, where the rate has more than doubled since ...
Read more...The mortgage buck stops where? - Christian Science Monitor
Like a subprime mortgage, Congress may soon put taxpayers on a risky hook for mortgages gone bad. The Bush administration wants authority to spend up to $700 billion, or about the cost of the Iraq war, to buy up troubled loans. A federal rescue ...
Read more...Fannie, Freddie rescue won't end housing woes - CNN Money
NEW YORK (CNNMoney.com) -- The federal government's takeover of Fannie Mae and Freddie Mac may save the battered real estate market from a complete meltdown. But financial experts say the bailout won't lead to a housing recovery just yet. Instead ...
Read more...Choose your News - Sky.com
HBOS chief executive Andy Hornby said house prices were not likely to rise again until 2010 while lenders waited "to give the confidence back into the system for banks to start lending again". Mr Hornby - whose bank owns the Halifax and Bank of ...
Read more...'Credit Slump For 18 More Months' - Sky.com
The credit crunch could last another 18 months, the head of Britain's largest mortgage provider has warned. Mr Hornby was confident the market would recover HBOS chief executive Andy Hornby said house prices were not likely to rise again until 2010 ...
Read more...U.S. takeover of mortgage giants lifts global markets - International Herald Tribune
Investors around the world breathed a sigh of relief Monday after the U.S. government took over and backed Fannie Mae and Freddie Mac, assuring a continued flow of credit through America's wounded mortgage system. Stocks rallied in Europe and Asia ...
Read more...