Content about Mortgage

Numbers released today by the National Association of Realtors (NAR) showed continued gains in-existing home prices but a slower market for sales. Completed transactions that include single-family homes, townhomes, condominiums and co-ops declined 5.4% in June compared with May. In year-over-year figures, June 2012 was 4.5% higher than June 2011.

A May 16 report from the Mortgage Bankers Association added another bright note to the housing market, with the percentage of U.S. homeowners behind on their mortgages falling to the lowest level since 2008. The delinquency rate for residential mortgage loans decreased 7.4% during the first quarter of 2012.

Foreclosures are not improving at the same rate, however. The percentage of loans in the foreclosure process as of March 31, 2012 was 4.4%, relatively unchanged from the previous quarter and down one basis point from 4.5% a year ago.

By late 2008, Mike Petro had seen enough. It was, for many, the height of the financial mess in this country, marked by bank failures, mortgage crisis, and bailouts; in his view, the financial structure of the United States was teetering on the brink.

“Middle-class workers were taking out home equity loans to pay bills because they were maxed out on their credit cards; their 401(k) plans were shrinking,” Petro said.

Home mortgage lending abuses and "robo-signing" of foreclosure papers have led to one of the largest settlements ever -- amounting to $25 billion in relief. The settlement with the five largest loan services will be used in a variety of complicated ways to help distressed borrowers, states and the federal government, according to the plan.

Below are some comments from readers. 

The U.S. Government Accountability Office (GAO), in a recent study on the effectiveness of real estate appraisals, found that the Appraisal Subcommittee, which oversees the regulatory programs established by the states, has not adequately performed its duties because of underfunding and other problems.

The National Lumber and Building Material Dealers Association (NLBMDA) applauded Congress for reinstating the higher conforming loan limits for the Federal Housing Administration (FHA) through 2013, helping reduce uncertainty for an already fragile housing market. 

By increasing the loan limits guaranteed by FHA to $729,750, Congress has taken a step to stabilize home values while enabling creditworthy consumers to get home loans with the best mortgage rates, lowest fees and better down payment requirements, the NLBMDA said.

Taxation nation
[The following are responses to an HCN Daily item about Herman Cain’s 9-9-9 tax plan, built around a 9% business tax, a 9% individual tax and a 9% national sales tax. It would also eliminate the mortgage interest deduction.]

The National Association of Home Builders (NAHB) weighed in on the disappointing housing starts figures released Tuesday.

Nationwide housing starts declined 5% to a seasonally adjusted annual rate of 571,000 units in August.

An article in USA Today points to concerns over uncertainty about foreclosure rules, and their impact on the housing market recovery.

While about one million financially distressed Americans could stay in their homes longer thanks to foreclosure processing delays, but the result for the general housing market could be a delayed recovery, according to the article.

A study released today by CoreLogic, a real estate data and analysis firm, indicates that 38% of homeowners who took out home equity loans on their houses were “underwater” at the end of the first quarter of 2011, compared with 18% of borrowers with no home equity loans. More than 40% (4.5 million) of all negative equity borrowers have home equity loans.

Canadian economists have expressed concerns about a correction in the housing market north of the U.S. border, where record borrowing, low interest rates and eager home buyers have created a building boom over the last several years.