Angry Urban Advocate and Financial Expert Compares Home Loan Bank Executives to Drug Dealers
September 28, 2008
An urban advocate and minority educator in the real estate industry responds with anger to President Bush’s proposed $700 billion bailout plan. This California expert compares the Wall Street bankers to drug lords and recommends that they be allowed to pay the price for their misdeeds. Listeners to this entreprenuer’s radio show have responded with outrage that the President’s plan helps investors, but not the average homeowner.
Los Angeles, CA (PRWEB) September 28, 2008 — Minority advocate, real estate educator and radio talk show host Butch Grimes appeared on Fox news this past Wednesday to share his listeners’ responses to the current state of the real estate and financial industry. While Grimes’ statements that listeners are confused and scared is no surprise, his off camera comments comparing bank executives to drug dealers have garnered passionate responses from both his radio show listeners and many in the financial and real estate industries.
In response to President Bush’s $700 billion bailout plan for the failing banking sector Grimes said, “A plan to again help the banks and not meet any of the real needs of the homeowner or borrower. I think it’s a joke! Why can’t the government be honest with us and call a spade a spade. I’m sorry I meant a recession!”
Continuing in the no-holds-barred style of speech that has made him both a popular radio host and public speaker Grimes continued, “Executives of these failing banks need to be stripped of their retirement, salary, stocks and assets. Why shouldn’t they feel like the folks they took advantage of? They have committed a crime! If they were big time drug dealers, the system would strip them down to nothing. Let’s cut the lavish lifestyles of these criminals, and let them pay the price for their misdeeds. Why are tax payers picking up the tab for these crimes? These people are no better than drug czars!”
President Bush’s recent proposal to fund a bailout of Wall Street with taxpayer funds has many in the country up in arms. Callers to Grimes’ popular WeTalkRadio247 show are largely an urban and minority audience seeking advice on things like first time home buying, foreclosure avoidance and real estate investments. Like many throughout the country, and congress, they are angry. “My callers want to know why a bank executive is getting relief, but a homeowner facing foreclosure is not. It’s crazy and someone needs to say so.”
In addition to minority advocacy, Grimes tours the country with state and private organizations offering advice to industry professionals on how to survive, and even thrive, in a down economy. Yes, he’ll even call it a recession. Grimes is an advocate of using Internet tools as a form of education and communication. He currently offers blogs, weekly podcasts shows and educational materials at http://www.WeTalkRealEstate.com and http://www.WeTalkRadio247.com.
While Grimes agrees that a down economy can be a good time to buy, he warns potential buyers that getting into a home right now involves more than just a down payment. On the Fox TV broadcast he said that we are in a “credit crunch” that has made criteria and documentation more stringent, that banks want to see cash reserves, and that they want buyers to “put more skin in the game.” The vocal entrepreneur has acknowledged that homebuyers also have an ownership role and responsibility for understanding their loans, but he’s adamant that the solution requires education and co-operative that the current administration does not seem willing to provide.
“We need to offer help and education to homeowners and potential homeowners,” Grimes emphatically stated. “The president’s plan does NOT do this! It only offers help to the criminals, the dealers, who got us into this mess to begin with. Let’s find a way to help the homeowner, the person who is working hard on a daily basis to put a roof over their kids’ heads.”
For additional information on Grimes’ educational resources, tours or radio show please contact 1-323-750-3690 Ext.236 or questions@WeTalkRealEstateNews.com. This site offers blogs, podcasts and information for both home owners and real estate professionals as a part of an overall mission to educate and inform.
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Breaking News: Banks Scrutinized for Unfair Lending Practices
September 21, 2008
Breaking news: Action to be taken on behalf of all borrowers victimized by unfair banking practices.
New York, New York (PRWEB) September 21, 2008 — Home owners at risk of losing their homes may now have an avenue of recourse. Lisa Beth Older, a New York Attorney, will perform an in-depth constitutional analysis of present bank lending practices which will be offered as a basis for a proposed Congressional review. Victims of lending abuses are invited to join in the submission of a brief one-page complaint addressed to Lisa Beth Older, Esq. so that an assessment can be made as to whether or not the latest lending policies are widespread, whether they intentionally violate anti-trust laws, whether the constitutional rights of individual consumers in the free market place have been violated, and whether or not legislative or judicial intervention is warranted.
“The housing crisis is caused in large part by predatory banking practices.” The government is planning on bailing out the very institutions that caused the home foreclosure crisis without similarly bailing out victimized home owners suffering from unduly high interest rates. These suspect loan practices use unfair or fraudulent loan criteria to deny credit to the credit-worthy. The lending practices currently being reviewed involve refusal of lending institutions to provide pre-existing borrowers with the same interest rate currently offer to new borrowers. The current high paying borrowers were lured into low flexible variable rate loans, and were verbally promised lock-in rates if rates increased. After the rates increased exponentially, borrowers locked in their loans at significantly higher fixed interest rates relying upon the lender’s promise that once interest rates declined again they could always convert their loan back to an adjustable variable rate. However, these high paying borrowers, in reliance upon this misleading information, applied for the adjustable loan and were unceremoniously declined. Presently it appears that while new customer loan applications are being accepted, pre-existing mortgagor applications have been denied by the same institution that offered them their previous low interest variable rate home equity loan in the first instance. Accordingly, as attorney Lisa Beth Older says, “All government bail-outs offered to lending institutions should be contingent upon bail-outs for borrowers victimized by predatory practices.” The government’s failure to regulate banks has resulted in the flagrant violation of constitutional rights, alleges attorney Lisa Beth Older. It is a violation of equal protection under the law if a bank provides lower interest rate loans to new mortgagors, while refusing to refinance existing customer loans at the same interest rate where both of the aforementioned home loan borrowers are similarly financially situated with respect to their income, loan-to-risk ratio, and credit status. The result is that the middle class person with pre-existing excellent credit is stuck with a higher interest rate, the new borrower is able to secure a lower interest rate, and the banks can use both borrowers to cover the losses incurred in the foreclosure market due to their own predatory practices.
Moreover, lending institutions and commercial banks may very well be in violation of the Anti-Trust Act. Lisa Beth Older says that an investigation should be held by Congress to review any potential scheme of collectively engaging in the adoption of widespread abusive lending practice that refuse to re-finance loans for borrowers who had their house on the market within the last 90 to 120 days. This scheme has forced many home owners into foreclosure or debt. “The deplorable widespread lending practice of denying refinancing to qualified borrowers, who, in precedent months, listed their home for sale, should be carefully scrutinized by our government,” says Lisa Beth Older, Esq.
Commercial banks are further refusing to reduce interest rates for status quo customers with good credit based upon other bogus excuses such as the value to loan ratio is not sufficient, or by using old tax rolls in lieu of real estate appraisals. Lisa Beth Older, Esq. is further asking Congress for a moratorium on foreclosures. Lisa Beth Older will make application to hold a Congressional hearing if there is enough evidence of widespread abuse. If you feel you are a victim of such unfair bank practices feel free to mail your complaint to FRONT DESK at Gateway Plaza (Attn Lisa Older Esq.) at 375 South End Ave Building 400 NY NY 10280. To ensure review, please be sure to bold FRONT DESK DELIVERY on the face of your envelope. Make it no more than one page. Include your name, address, telephone number, the financial institution in question, and your email address, together with a brief one-half (1/2) page description of how, when and why you were refused refinancing. Be sure you sign and/or notarize your complaint. Emails will not be accepted. All submissions longer than one page will be returned to the sender.
www.lawofficesoflisabetholder.com
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Fannie Mae and Freddie Mac Go Bankrupt
September 10, 2008
Martin D. Weiss, Ph. D. discusses the recent bankruptcy of the two largest mortgage lenders, Freddie Mac and Fannie Mae. In this issue of Money and Markets, Dr. Weiss explains how he expects Washington and Wallstreet will handle the situation.
Jupiter, FL (PRWEB) September 10, 2008 — Martin D. Weiss, Ph. D. discusses the recent bankruptcy of the two largest mortgage lenders, Freddie Mac and Fannie Mae. Dr. Weiss explains how he expects Washington and Wallstreet will handle the situation.
According to Dr. Weiss, both Washington and Wall Street are trying to persuade the public that the government will save us from financial disaster. But the real lessons already learned from these events are another matter entirely:
The first lesson learned was each successive round of the credit crisis is far deeper and broader than the previous. In 2007, the big news was big losses; in 2008, it’s big bankruptcies. In March, the failure of Bear Stearns shattered $395 billion in assets. Just six months later, the failure of Fannie Mae and Freddie Mac is impacting $1.7 trillion in combined assets, or over four times more.
The second lesson was that, despite unprecedented countermeasures, Washington has been unable to stem the tide. Yes, the Fed can inject hundreds of billions into the banking system. But if banks don’t lend, the money goes nowhere. And the Treasury can inject up to $200 billion of capital into Fannie Mae and Freddie Mac. But if their mortgage portfolio is full of holes, all that new capital is lost. And of course, the U.S. government has vast resources. But if the $49 trillion mountain of U.S. debts and the $180 trillion pile-up of U.S. derivatives are beginning to crumble, all those resources don’t amount to very much.
The third lesson learned was that shareholders are the first victims. Bear Stearns shareholders got wiped out. Fannie Mae and Freddie Mac shareholders are getting wiped out. Ditto for shareholders in any of Detroit’s Big Three that go belly-up, any bank taken over by the FDIC or any insurer taken over by state insurance commissioners.
The next lesson is that the primary mission of the Fannie Mae Freddie Mac bailout will ultimately end in failure. The taxpayer cost for just these two companies, up to $200 billion, is more than the total cost of bailing out thousands of S&Ls in the 1970s. But it’s still just a fraction of the liability the government is now assuming. Why?
First, because the number of home foreclosures and mortgage delinquencies has now surged to a shocking four million and a substantial portion of the massive losses stemming from this calamity have yet to appear on Fannie Mae’s and Freddie Mac’s books.
Second, the U.S. recession is still in an early stage with surging unemployment just beginning to cause still another surge in foreclosures and mortgage delinquencies.
Third, even before Fannie Mae and Freddie Mac begin to feel the full brunt of the mortgage and recession calamity, their capital had already been grossly overstated.
For years, both Freddie Mac and Fannie Mae have effectively recognized losses whenever payments on a loan are 90 days past due. But in recent months, the companies said they would wait until payments were two years late. As a result, tens of thousands of other loans have also not been marked down in value. Both companies have grossly inflated their capital by relying on accumulated tax credits that can supposedly be used to offset future profits. Fannie Mae says it gets a $36 billion capital boost from tax credits, while Freddie Mac claims a $28 billion benefit. But unless these companies can generate profits, which now seems highly unlikely, all of the tax credits are useless.
“The most important lesson of all is as the U.S. Treasury assumes responsibility for $5.3 trillion in mortgages, it places its own borrowing ability at risk. The immediate reason the government decided not to wait any longer to bail out Freddie Mac and Fannie Mae was very simple: All over the world, investors were beginning to reject their bonds, refusing to lend them any more money. So the price of Freddie Mac and Fannie Mae bonds plunged, and the yields on those bonds went through the roof. As a result, to borrow money, Freddie Mac and Fannie Mae had to pay higher and higher interest rates, far above the rates paid by the U.S. Treasury Department. And they had to pass those higher rates on to any homeowner taking out a new home loan, driving 30-year fixed-rate mortgages sharply higher as well,” Dr. Weiss states.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?Why-The-Fannie-Freddie-Bailout-Will-Fail-2199
About MARTIN D. WEISS & MONEY AND MARKETS
Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.
Dr. Weiss’ keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor’s Business Daily, and Forbes and has also appeared on CNN and CNBC.
Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation’s future by demanding honesty in government accounting, a balanced budget and sound economic policy.
Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron’s Roundup for 2002.
Dr. Weiss holds a bachelor’s degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.
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SHORT REFINANCE FHA SECURE, HOW TO GET THE BANK TO DISCOUNT YOUR MORTGAGE
August 16, 2008
Tucson AZ – In Arizona we have been seeing record numbers of foreclosures, record numbers of bank repos and record numbers of short sales. Homeowners are faced with rising mortgage payments when their once low adjustable rate mortgages reset and climb. A short sale has been a common answer to losing a home through foreclosure.
But now there’s a new answer; the short refinance FHA Secure. The short refinance works exactly the same as a short sale with the exception that the homeowner remains a homeowner. In a short sale, once an offer comes in it gets presented to the bank along with an application package from the seller to the bank asking to take a discount on the current mortgage. Once the bank accepts the offer for less than what the seller owes the bank they have agreed to a short sale. A short refinance works in much the same way as a short sale only in the case of a short refinance the “offer” presented to the bank is actually a copy of the homeowner’s brand new short refinance FHA Secure approval. The short refinance approval, along with all the supporting documentation, is then submitted to the bank requesting a discount. Once the bank accepts the discount, they have accepted a short payoff and agreed to a discount on the loan allowing for the short refinance.
A major benefit of the short refinance is that it allows borrowers to keep their homes. The short refinance delights homeowners because they get a new start with a lower mortgage payment and a lower mortgage balance.
Why would the bank agree to a short refinance and not just foreclose on the property? Simply put foreclosing on a property requires large amounts of legal fees and then the home is typically sold at a substantial discount off of the fair market value. The short refinance allows the bank to avoid the majority of the legal fees and let’s the new lender make its largest loan based on the fair market value.
To read about how the Short Refinance FHA Secure Helps 200,000 families.
To apply for a Short Refinance FHA Secure loan visit Short Refinance Application.
For more information on the Short Refinance FHA Secure contact:
Paul Dunn
FHA Lending Specialist
First Priority Financial
520-225-0380
tucson-fha-loans.com
usdaruralhomeloans.com
Nationwide Mortgage Services Introduces Virtual Loan Department for Maryland Mortgage Customers
August 4, 2008
Nationwide Mortgage Services, based in Rockville, MD, has introduced a new Virtual Loan Department to help consumers navigate the programs and products available in the current mortgage market. With fewer lenders and strict lending guidelines, fewer options have become available to consumers. Nationwide Mortgage Services has introduced this streaming audio and video to simply the process for the consumer.
Rockville, MD (PRWEB) August 4, 2008 — Nationwide Mortgage Services, a Rockville, MD company, has introduced a new Virtual Loan Department to help consumers navigate through new lending guidelines, practices and procedures. The new site developed in July will educate consumers on a variety of programs and products available in the “new” mortgage environment, while allowing the ability to shop for a mortgage program 24 hours a day. The Virtual Loan Department can be accessed at www.tmmortgagegroup.com.
Nationwide has built a strong reputation as an outstanding mortgage brokerage firm and lender serving the lending needs of real estate professionals, builders and individual homebuyers throughout Maryland, Virginia, DC, Pennsylvania, South Carolina, and Florida.
Nationwide is a full service mortgage broker with an experienced staff offering expertise in every area of mortgage lending…from purchase to refinance to construction lending. Nationwide has access to a full range of mortgage sources and all lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet the borrowers unique needs. Throughout the lending process, Nationwide provides loan updates and progress reports to consumers and real estate professionals alike.
Now all of our mortgage services are available online through the Virtual Loan Department. The consumer will have access to the best loans available in the marketplace simply by submitting a secure application online. Customers can fill out a form and be given several real-time quotes through the virtual loan department. Borrowers will now have access not only to the best loans available in the marketplace, but you can also review loan alternatives, 24 hours a day.
“The mortgage industry has changed so drastically over the past year that many borrowers are unclear of options available to them. Our goal is to help educate the borrower, provide an assortment of options available, and provide the most competitive rates in the industry. Our Virtual Loan Department will allow the consumer to shop on their terms and their time table” - Tim Marose, Vice President of Residential Lending, Nationwide Mortgage Services.
For additional information on the news that is the subject of this release, please contact Tim Marose or visit www.tmmortgagegroup.com
Contact:
Tim Marose
Vice President of Residential Lending
Nationwide Mortgage Services
4 Research Place, Suite 140
Rockville, MD 20850
301-217-5858 x637
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Reverse Mortgage Industry Tips on Successful Internet Marketing and Lead Incubation Strategies
July 29, 2008
Gretchen Williams of Reverse Mortgage Directory, LLC (RMD) shares Internet marketing and lead incubation tips with industry professionals in the feature article of The Reverse Review, “Why Internet Marketing?” The article addresses website design tips, strategy, general online marketing terminology and keys for successful lead incubation.
Los Angeles, CA (PRWEB) July 29, 2008 — RMD Director of Sales and Customer Relations, Gretchen Williams, shares web design tips and online reverse mortgage marketing and lead incubation strategies in the June issue featured article of The Reverse Review, “Why Internet Marketing?” The Reverse Review is a reverse mortgage business-to-business publication that educates reverse mortgage professionals and those originators seeking to learn about the reverse industry.
The belief among many reverse mortgage professionals is that the senior demographic is not online and, therefore, there is no need to get involved in Internet advertising. “We hear this from reverse mortgage professionals all the time. The fact of the matter is that that comment just points to the fact that the online senior community is an untapped market. Not to mention that online marketing affords the opportunity to speak to third-party decision makers (like adult children)”, says Williams. “Earning the trust of these individuals early on in the process has proven to increase the lead-to-loan close ratio of our clients. The best part is that in these deals those third parties tend to take on a lot of the legwork.”
A marketing strategy is only as good as its follow up strategy. Persistence and continued follow up are among the keys to success, especially since seniors interested in a reverse mortgage lack that sense of urgency that one might find when working with a new homeowner. “I regularly discuss lead incubation tips with our clients so they can get the most out of every lead”, said Williams who has spent the last 4 years advising mortgage and real estate professionals on Internet lead follow up. “Creating a schedule for continued follow up is particularly important in the reverse mortgage industry since it helps originators to build the rapport and relationship that senior consumers are looking for.”
Gretchen Williams is the Director of Sales and Customer Relations for Reverse Mortgage Directory, LLC and focuses on advising industry professionals on Internet marketing strategy and successful lead incubation. Every month RMD provides thousands of guaranteed reverse mortgage leads to hundreds of Lenders across the United States through its consumer site, ReverseMortgageAdviser.com. The site also offers consumer access to its National Lender Directory. RMD is a member of the Better Business Bureau, National Aging In Place Council and National Reverse Mortgage Lenders Association.
For more information on reverse mortgage leads contact:
Gretchen Williams, Director of Sales & Customer Relations
RMD, LLC
888.412.5557
www.ReverseMortgageAdviser.com
More Bad News for Financial Institutions
July 27, 2008
Mike Larson takes a closer look at the declining second quarter earnings of both big and small financial institutions. In this issue of Money and Markets, Mr. Larson discusses how although there is bad news for financial institutions, finance and real estate companies aren’t doing that badly.
Jupiter, FL (PRWEB) July 27, 2008 — Mike Larson takes a closer look at the declining second quarter earnings of both big and small financial institutions. Mr. Larson discusses how although there is bad news for financial institutions, finance and real estate companies aren’t doing that badly.
American Express recently reported a 38% year over year plunge in second-quarter profits. Earnings per share of 56 cents were far below the Wall Street consensus of 83 cents. According to the company’s CEO Kenneth Chenault, “Consumer spending slowed during the latter part of the quarter and credit indicators deteriorated beyond our expectations. The scope of the economic fallout was evident even among our longer term, superprime cardmembers.”
Megabank Wachovia recently recorded a loss of $8.9 billion, or $4.20 per share, in the second quarter. Analysts were looking for a loss of just 78 cents per share. The bank said it plans to slash almost 11,000 jobs. It also cut its quarterly dividend down 87% to just 5 cents a share.
Even the smaller regional banks are seeing more bad news. Regions Financial turned in a 55% drop in profit. Fifth Third of Cincinnati lost $202 million, a huge swing from 2007, when it generated $376 million in net income. KeyCorp of Cleveland did much worse. Its quarterly loss: $1.13 billion versus the income in 2007of $334 million.
Despite the news, shares of finance and real estate companies haven’t been doing that badly. In fact, they’ve been surging. Wachovia was up as much as 148% from its recent intraday low to intraday high. Bank of America surged 86%, while JPMorgan Chase gained 47%.
According to Larson, investors are ignoring all the bad news for a few different reasons. They figure that the Fannie Mae and Freddie Mac rescue program being put into place will be enough to backstop those firms. The Treasury Department is getting authority to extend an unlimited amount of credit to the two Government Sponsored Enterprises, and to buy an unspecified amount of their shares.
Some of the banks that have reported earnings have said they don’t need to raise capital immediately. Many have opted instead to sell off assets. Merrill Lynch unloaded its stake in the Bloomberg news service for $4.43 billion, for instance, while SunTrust Banks is liquidating 40 million shares of Coca-Cola.
“A housing support bill is finally making it into law. The bill has several provisions, including a tax credit of as much as $7,500 for first-time home buyers and a property tax deduction for certain homeowners. It will also authorize a mortgage program that requires lenders to recognize some losses on their existing loans, but that gives them an out by allowing them to then be paid off with new, lower-balance loans backed by the Federal Housing Administration,” Larson states.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?Wall-Street-in-Financial-Stock-Fantasyland-2015
About Mike Larson and Money and Markets
Mike Larson joined the company in 2001, and has more than 10 years of experience researching and writing about personal finance, investing, and the housing and mortgage industry. In 2003, Mr. Larson was named associate editor of the company’s monthly Safe Money Report. In this role, he is responsible for writing and editing as well as analyzing trading opportunities for clients. Mr. Larson is also a regular contributor to the company’s daily e-letter, Money and Markets.
Before joining Weiss Research, Mr. Larson was a personal finance reporter for Bankrate.com, where he wrote extensively on mortgage lending, banking, residential real estate, and Federal Reserve Board policy. His responsibilities included analyzing economic data and interest rate trends for a weekly column and developing rate forecasts for a regular index feature. Previously, Mr. Larson held positions at Bloomberg News and the Boston Herald.
Recognized as an interest rate and mortgage market expert, Mr. Larson’s views have been quoted in the Washington Post, Chicago Tribune, Dow Jones Newswires, Reuters, Sun-Sentinel and the Palm Beach Post. He has also appeared as an investment expert to discuss the housing market on CNBC, CNN, and Bloomberg Television. His writing has been acknowledged by both the National Association of Real Estate Editors and the Massachusetts Press Association.
Among the first analysts to call the housing slide, Mr. Larson’s new policy paper, “How Federal Regulators, Lenders and Wall Street Created America’s Housing Crisis: Nine Proposals for a Long-Term Recovery” has received broad media coverage following its July 2007 submission to the Federal Reserve and FDIC. Mr. Larson holds B.A. and B.S. degrees from Boston University.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.
Oxford Funding Predicts More to Come for Mortgage Crisis
July 24, 2008
HOUSTON, TX–(Marketwire - July 24, 2008) - The current mortgage situation isn’t bad for everyone, at least from Bob Dunn’s perspective.
A new Fox Business News poll just released shows that 55% of those polled do not believe that the “worst of the subprime-mortgage mess” is over for major U.S. banks.
“With banks continuing to increase their reserves for bad loans, Oxford Funding Corporation is in an excellent position to continue to increase its position in mortgage portfolios at significant discounts,” says Bob Dunn, President of Oxford.
The company recently began selling individual mortgage loans to accredited investors. This type of opportunity had been reserved exclusively for banks and institutional investors.
Oxford Funding (PINKSHEETS: OXFD) is a publicly traded asset resolution company specializing in the purchase, sale, and management of individual and bulk mortgage loan portfolios.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
MN Mortgage Broker Interprets Pending “Housing Rescue” Legislation As Killing Off The First Time Home Buyer And Extending The Housing Crisis
July 24, 2008
Mortgage industry veteran shares her knowledge as it applies to Section 113 of the “Housing Rescue” Legislation eliminating down payment assistance (DPA) that is pending before congress this week. Our fragile real estate and mortgage markets will be impacted extremely negatively if this bill passes and is signed into law. FHA loans are now providing up to 40% of new loan originations and up to 30% of those loans are using DPA programs. It is estimated that between 300,000-500,000 families will be unable to purchase a home next year if this change becomes law. First time buyers will remain renters and homes will stagnate on the market unless we maintain the use of down payment assistance with existing FHA mortgage programs. Working class families and minorities are projected to be the groups most affected.
Edina, MN (PRWEB) July 24, 2008 — Mortgage Broker-Venture Development shares salient points and opinions regarding the government proposed solution to the housing crisis. In an article today in the Washington Post, Chairman Barney Frank of the House Financial Services Committe is quoted as saying that “the House will yield to the Senate on the termination of seller participation in down payment assistance programs.” Down Payment Assistance will end as we know it if this is signed into law by the president. Down payment assistance under the current guidlines allows the private sector to provide the solution. The Bill as proposed presents no government alternative or any alternative suggestion on how to keep the program intact.
The progression of home sales within the housing market is dependent on first time home buyers starting the domino affect. Their home purchases are the catalysts that allow people to sell their existing home and then move into a new property such as a larger home, condo or townhouse. In order to keep the housing market moving forward, we need to encourage home ownership at the beginning of the cycle. Mortgage programs that are underwritten with greater flexibility regarding credit, income and down payment will create more homeowners. We need mortgage loan programs that allow you to buy a home with as little money down as possible. This law will make buying a home more difficult with the elimination of a loan financing option.
As recently as March of 2008, there were conventional loans that allowed for 100% financing such as the Home Possible, My Community, and 80/20 combination first and second mortgage programs. Declining property values coupled with high mortgage delinquencies in all real estate markets have all but eliminated investors for these types of high LTV loans. In addition, due to large losses by private mortgage insurance companies (PMI) there is an unwillingness of mortgage insurers to insure these loans. Hence these loan programs have either been eliminated or now require a down payment. With Fannie Mae and Freddie Mac’s current financial problems and the overall state of the mortgage markets, don’t expect that they will be creating any new high loan to value zero down mortgage products anytime soon. The Housing Crisis will get worse-not better-by eliminating mortgage programs that work. We are bearing witness to that today.
Herein lies the problem. Most first time home buyers lack sufficient resources for the down payment and closing costs. They often have good credit and the ability to make a payment. Until they save enough money, they are left out the housing market. FHA loans currently allow buyers to obtain down payment assistance (DPA) from a relative or from a qualified down payment assistance provider. This means that buyers without enough current resources may be able to obtain enough funds to buy a home today. There are a number of approved down payment assistance providers-some of the largest names are Nehemiah, Genesis, and Ameridream. In a nutshell, these non-profit organizations issue down payment assistance to a prospective home buyer and then collect funds from the seller of a home who has agreed to participate in this program at the time of closing. The non-profit charities charge an administrative fee of between $300 and $500 to facilitate with the assistance of this funding. FHA sometimes refers to this arrangement as seller funded down payment-which they don’t allow. Although the funding is coming from a non-profit, the FHA perception is that it is actually from the seller, albeit indirectly. The problem stems from losses. According to FHA, they have experienced larger losses on portfolios of loans that were funded with DPA funds. Further studies are needed. HUD has provided statistics that are open to interpretation.
In fact, FHA hopes to eliminate these programs altogether through the fast tracked housing bill going through congress now. Time is of the essence as the Senate and House are fast-tracking this bill.! The senate version-which is the supported version-will eliminate DPA. What would this mean? Let me make this clear-if this bill passes fewer houses will be sold. More qualified homeowners will remain as renters. More homes will stay on the market and the real estate and mortgage crisis will get worse. DPA funding offers a solution to our crisis by making homeownership possible.
Mortgage foreclosures can be addressed with better underwriting rather than through legislation. If there are problems with the way things are being done within the current DPA program then let’s work on modifying them. Let’s identify solutions-such as raising the minimum required credit score on DPA funded loans. This would probably lower the defaults and match the underwriting to the risk. Elimination or outright banning of DPA programs that are currently helping our ailing housing market is foolish. As a Minnesota FHA mortgage broker who works in the market on a daily basis, I can tell you about clients who are good people who want to become homeowners. Their shot at owning a home depends on these programs. Get involved and learn more. The consequences of making the wrong decision about the fate of DPA’s will affect our entire economy.
Many mortgage brokers and banks are not offering FHA financing. Twin Cities mortgage broker Venture Development provides FHA mortgages and works with buyers that wish to utilize down payment assistance. We encourage all borrowers-not just first time buyers- to consider FHA financing and compare it to conventional or veteran financing options. The interpretations and opinions expressed herein are those of the Principals of MN mortgage broker Venture Development.
Real Estate Marketing Website YourKasa.com Now Offers Mortgages and Loans from 100 Lenders
July 22, 2008
Purchasing a House Has Never Been Easier with Helpful Home Buyer Packages.
Atlanta, GA (PRWEB) July 22, 2008 — YourKasa.com, an online real estate marketing company, is pleased to announce that it is now offering mortgages and loans from 100 lenders on its website. While many consumers may find a similar offering on other websites, the difference is clear with its home buyer packages that make purchasing a house a much simpler venture. First-time buyers will appreciate this innovative service that lets them research and choose the right mortgage lender for their individual needs. Consumers no longer need to wait anxiously for an answer - each company on the real estate marketing company’s extensive list of lenders does all the work and contacts a potential home buyer if a match is made.
“YourKasa is interested in opening up opportunities to everyone who is thinking about buying a home for the first, second, or even third time,” said Neil Terc, president of YourKasa. “We’ve created unique home buyer packages that assist individuals in the detailed process of purchasing a house or other type of real estate.”
YourKasa’s home buyer packages - mortgage and loans services included - provide the best terms and rates possible, and if needed, down payment (as low as 3%) and closing cost assistance programs. Trained specialists at YourKasa, who are experts in the real estate industry, will guide interested consumers through the process and are personally able to find out if they qualify in just minutes. A bad credit score does not necessarily exclude certain consumers from loans - an FHA mortgage can still help home buyers purchase property. 100% financing is offered in addition to rates as low as a 30-year fixed 5.80% loan. Other mortgage options include 203k loans for rehabbing a property and upfront monetary assistance. For more details on this unique real estate marketing service, please visit apply for a mortgage and loans through the website today.
About YourKasa.com
YourKasa.com is a feature-rich online real estate property listing service that connects home sellers with home buyers. Packed with resources and easily navigable, the site provides sellers with the ability to market their homes to a large, targeted audience and enables potential buyers to view thousands of real estate property listings online via detailed profiles, pictures, and maps. For more information, visit www.yourkasa.com.
