Report: Nearly 1M bank foreclosures in process - Phoenix Business Journal:

Report: Nearly 1M bank foreclosures in process - Phoenix Business Journal:

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Forecast shows Arizona economic losses continuing through year-end, stabilizing in 2010 - Phoenix Business Journal:

One firm is calling for a rebound to begin early next year. Let's hope they are correct!

Forecast shows Arizona economic losses continuing through year-end, stabilizing in 2010 - Phoenix Business Journal:: "Arizona will end 2009 with a 6.5 percent loss of jobs, a 3.6 percent dip in gross domestic product and housing prices down by 8.4 percent, though 2010 offers a more flat economic picture.

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Math Lesson For the Day 103%

Here is a little something that is indisputable mathematical logic. It also
made me Laugh Out Loud. This is a strictly mathematical viewpoint...it goes
like this:

What Makes 100%? What does it mean to give MORE than 100%?
Ever wonder about those people who say they are giving more than 100%? We
have all been to those meetings where someone wants you to give over 100%.
How about achieving 103%? What makes up 100% in life?

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FW: The Lion Tamer

A circus owner runs an ad for a lion tamer and two people show up. One person is a good-looking, older man in his early to mid seventies and the other is a gorgeous blonde in her mid-twenties.

The circus owner tells them, "I'm not going to sugar coat it. This is one ferocious lion. He ate my last tamer so you two had better be good or you're history. Here's your equipment -- chair, whip and a gun. Who wants to try out first?"

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FW: 10-Year ARM Comparison - 3rd Quarter 2009

Rod Dennis America's Mortgage Store Phone: (480) 850-6501 Fax: (480) 850-6522 rod@americasmortgagestore.com http://www.americasmortgagestore.com/

ARM Indexes: A 10-Year Comparison

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FW: fha changes coming

FHA is going the way of HVCC appraisal requirements soon.

 

 

A story in "Inside Mortgage Finance" from August 31^st stated, "The Federal Housing Administration is not considering adopting the Home Valuation Code of Conduct appraisal system now in place at Fannie Mae and Freddie Mac. Coming from a recent meeting with FHA executives, top officials of the National Association of Mortgage Brokers said they were assured by FHA Commissioner Dave Stevens that the HVCC is not in the agency’s plans."

Friday, however, the FHA Commissioner announced that after January 1, the FHA will require appraisals to be ordered via HVCC, and that instead of a net worth of $250,000 lenders must have a net worth of $1 million sometime in the next year. The FHA sent out a Mortgagee Letter to all lenders that they are adopting HVCC in most of its current form – the same one adopted by Fannie & Freddie in May. Mortgage originators will no longer be able to order appraisals from appraisers, but instead use AMC’s, which contributed to some of the popularity of FHA loans. Appraisers stand to make a little more, brokers will have less control, FHA appraisals will only be good for 4 months and not 6, and the FHA will allow appraisals to be transferred to another lender. Realtors can still give appraisers comparable sales data, but just not value: a fine distinction. In addition, the FHA said it may fall below its mandated capital level (2% reserves) for the first time in its history, but it will not require a taxpayer bailout, and that they will be hiring a chief risk officer. (Talk about a piece of cake job, right?)

Mini-eagle questions? “Lenders seeking approval to originate, underwrite, or service an FHA loan must meet the eligibility criteria for a supervised or non-supervised mortgagee. Mortgagees with this approval status must assume liability for all the loans they originate and/or underwrite. Loan Correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees; however they will no longer receive independent FHA approval for origination eligibility. Check it all out at: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/HUDNo.09-177

Why the changes? According to the MBAA, almost 20% of FHA loans are delinquent in some form. The number of loans that they insure has grown from slightly more than 4 million 3 years ago to almost 5 ½ million now. Many originators view FHA loans as a substitute for the subprime loans from days gone by and some analysts feel that these loans will cause a huge negative impact on the industry and on the taxpayer. (Not everyone deserves a home loan, right? Why allow DTI’s above 36%? 3.5% or less down?) eceive it, let me know.)

FW: Your Weekly Blog Update From Rod Dennis

Here are a few good articles worth reviewing this week.

Housing Starts Slip, But Don't Think The Recovery's Been Halted Excerpt: Housing Starts on single-family homes took a step backwards last month, falling month-over-month for the first time since January. A "housing start" is new home on which construction has started. Don't let the... The Housing Market Index Reaches A 16-Month High Excerpt: According to home builders around the country, the housing market is looking good. Each month, the National Association of Home Builders releases its Housing Market Index report, a survey meant to... Ben Bernanke Leaves Clues About The Future Of Mortgage Rates Excerpt: On the 1-year anniversary of the Lehman Brothers collapse, Fed Chairman Ben Bernanke said Tuesday that the "recession is very likely over at this point".   His comments were supported by a... Using 401(k) Funds For A Downpayment? First, Consider The Tax Implications. Excerpt: As downpayment requirements increase, anecdotally, home buyers are tapping 401(k) plans for extra cash. Classified as a "hardship withdrawal", loans against your retirement funds can be cheap and simple. There's no credit check..

 

Bankruptcy and Monopoly

The other day we were playing Monopoly. Of course someone inevitably landed on

Park Place, which happened to have three houses on it, and he promptly declared bankruptcy, but then wanted to keep playing. It reminded me that "declaring bankruptcy" doesn't seem to have quite the finality that it once did. This year many well-known companies have done it, but still seem to be around. Individuals were sent (in the US until the 1830's; England until 1869) to debtor's prison, or at least threatened with being sent to a damp, dark, place with rats in it. In the United States, laws have always favored debtors versus creditors. But in 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act made it harder to declare bankruptcy, and prior to it taking affect there was a spike in filings that hit over 2 million! In 2008 there were about 1 million filings, which mean that in the US one in three hundred people declared bankruptcy.

But a bankruptcy is still, for the most part, considered a last-ditch option for dealing with overwhelming debt. Most of your assets go away, and your credit rating takes a fall (a bankruptcy for ten years, whereas a foreclosure remains on it for seven). Most homeowners will avoid a Chapter 7 bankruptcy and instead file for Chapter 13 if they want to avoid a foreclosure. A Chapter 7 filing can wipe out unsecured debts, but secured debts are tied to a specific asset, such as a mortgage secured by a home and which reverts to the creditor. A Chapter 13 bankruptcy doesn't actually wipe out the debt but can shield debtors from their creditors for several months during the forbearance period until a court-ordered repayment schedule can be worked out. During this time most homeowners try to work out a loan modification program.

Jumbo Foreclosures Continue to rise.

Foreclosures on Jumbo loans continues to rise. The high end home market has a ways to go before it stabilizes.

Foreclosure rates on prime jumbo loans, surpassed the 2.98% average for all loan types in July, and continue to rise faster than any other loan type. Prime jumbo foreclosure rates are up a staggering 634% versus January 2008 levels, according to LPS Applied Analytics. And other figures show that Alt-A loan problems could stabilize in the coming months.