Feb 23, 2009

Obama's Housing loans will help responsible homeowners.

President Obama introduced the Homeowner Affordability and Stability Plan or HASP on feb 18th which is estimated to help 7 million to 9 million families avoid hardship or foreclosure. He explained this would be done by "refinancing loans for millions of families in traditional mortgages who are underwater or close to it, by modifying loans for families stuck in subprime mortgages they can't afford as a result of skyrocketing interest rates or personal misfortune, and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments."
According to Holden Lewis, those homeowners who had never fallen short on their monthly payments may qualify to refinance at lower interest rates. HASP "focuses on rescuing families who played by the rules and acted responsibly."Another category of homeowners who have subprime mortgages, or exotic loans such as pay-option ARMs, might also qualify to keep their current loans, but have them modified to make the payments more affordable.
But many will be unable to make use if HASP because of some limitations and exceptions in the plan. Those who owe more than what their house is worth will not be eligible for refinancing. Those whose loans were not securitized by Fannie Mae or Freddie Mac may find it difficult to refinance.

Feb 18, 2009

Barclays shuts Equifirst

British company Barclays PLC announced that it is shutting down its US mortgage origination business - EquiFirst Corporation today Feb 17th 2009

Feb 10, 2009

The Green initiative in Loan Processing

In the mortgage industry, we see a rise in the acceptance of electronically signed documents. There is an initiative to implement e-mortgage which is essentially a loan document that is created electronically, executed electronically, transferred electronically and stored electronically.This initiative should be accepted by all mortgage lenders if their goal is to not just save time but the planet earth which is sinking every day due to the continuous invasion by man.

Feb 7, 2009

Unemployment surges to 7.6%, Mortage rates to decrease?

According to USA Today,the unemployment rate rose to a 16-year high 7.6% in January as employers slashed a seasonally adjusted 598,000 jobs, the most since 1974, the government said Friday in a report that showed the job market deteriorating at a rapid clip. For more information go to http://www.usatoday.com/money/economy/2009-02-06-job-losses-january_N.htm

This surge in unemployment could lead to a dip in the mortgage rates. So it is a good time for refinancing and buying houses for those with surplus cash. PrivoCorp's clients can help borrowers with speedy and low mortgage rates. For more information on banks that are offering lower rates contact info(at)privocorp.com or visit www.privocorp.com

Borrowers waiting for lower rates?

Even though rates are low, borrowers are tending to adopt a wait and watch approach to their home loans. The reasons could be varied: job insecurity, expectations of lower rate or existing foreclosures.
According to Holden Lewis of Bankrate.com,
fewer people are applying for mortgages, even though the average rate on a 30-year fixed remains below 6 percent for the 11th week in a row. Rates went up in the last week, so it's understandable that fewer people applied for mortgages. Still, it's kind of weird to see a lull in applications while rates are below 6 percent.

PrivoCorp, a loan processing company, has found that FHA refis are on the rise and now contribute up to a third of all the refis. For more information contact www.privocorp.com