The New York Times
Fewer homeowners have been falling behind on their mortgage payments over the last two years, yet even with the improvement, a significant number still are delinquent or in foreclosure.
Read the full story
http://www.nytimes.com/2012/03/11/realestate/mortgages-paying-on-time.html?_r=1&ref=realestate
San Francisco Chronicle
On Tuesday, the Federal Housing Administration announced it will slash mortgage insurance premiums for certain homeowners who refinance an FHA loan into a new one under its streamlined program.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/06/BUVD1NGS5O.DTL
As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante recently announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent.
These premium changes will impact new loans insured by FHA beginning in April and June of 2012. Details will soon be published in a Mortgagee Letter to FHA-approved lenders.
The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1, 2012. FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.
The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012.
Last Thursday, the nation’s five largest mortgage servicers agreed to a landmark $25 billion settlement with a coalition of state attorneys general and federal agencies. The settlement addresses past mortgage loan servicing, foreclosure abuses and fraud, provides substantial financial relief to borrowers harmed by bank fraud, and establishes significant new homeowner protections for the future.
The joint state-federal group announced the agreement with the nation’s five largest servicers: Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup, Inc., and Ally Financial, Inc. (formerly GMAC). Collectively, the five banks service nearly 60 percent of the nation’s mortgages.
Under the agreement, the five servicers agree to:
Commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Servicers will likely provide up to an estimated $32 billion in direct homeowner relief.
Commit $3 billion to an underwater mortgage refinancing program.
Pay $5 billion to the states and federal government ($4.25 billion to the states and $750 million to the federal government).
Provide homeowners with comprehensive new protections from new mortgage loan servicing and foreclosure standards.
Additionally,
An independent monitor will ensure mortgage servicer compliance.
States can pursue civil claims outside of the agreement including securitization claims as well as criminal cases.
Borrowers and investors can pursue individual, institutional or class action cases regardless of agreement.
More info
The Mercury News
The housing crisis has caught up with people whose wealth helped them hang onto their houses longer.
Read the full story:
http://www.mercurynews.com/business/ci_19899224
