Daily Real Estate News
December 10, 2010
5 Predictions for 2011
Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:
1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011.
2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.
3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.
4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.
5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings — known as the "seriously delinquent rate" — generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.
Source: Freddie Mac (12/09/2010)
Thursday, December 23, 2010
Monday, October 18, 2010
Why You Should Worry About Mortgage Fraud
By: MortgageLoan.com
The legal and financial ramifications and consequences of mortgage fraud are significant. This is true whether borrowers knowingly committed such fraud or not. Either way, borrowers are ultimately responsible for the personal data provided on their applications and legal documents.
The Mortgage Asset Research Institute (MARI) reported that incidents of mortgage fraud are at an all-time high, increasing 26 percent between 2007 and 2008. The number of new cases is expected to grow as the housing market to recovers from the distressing selloff that occurred during that time. So it should come as no surprise that federal and state governments have taken significant steps to drastically increase the legal punishments that can be handed out to fraudulent perpetrators.
Legal and financial liabilities
Consumers can get caught up in mortgage fraud in a variety of ways. They might misrepresent their income on a loan application or be asked to do so by an unscrupulous broker. They may be asked to stand in as a buyer for someone with bad credit. Persons in tight financial circumstances may fall victim to refinancing or loan modification frauds that leave them in worse shape than before.
What consumers should know is that the penalties for mortgage fraud are real, substantial, and commensurate with its costs. Depending on the specific fraud involved, mortgage fraud is a felony under federal and state laws. Stiff penalties against individuals involved in such schemes have been handed out in terms of millions of dollars in fees and lengthy jail times. Such penalties have been given to executives who securitized mortgage-backed investments, loan officers who helped originate individual loans and individuals who have either willingly, or without knowledge, engaged in mortgage fraud.
Aggressive actions
In the wake of a worsening economic crisis, the Federal Trade Commission (FTC), Congress and the states focused on taking an aggressive approach to protecting consumers in financial distress and increasing oversight and enforcement over providers of consumer financial services and assistance. Examples include mortgage fraud, foreclosure consulting, credit counseling, debt management, and debt settlement.
Testimony in Washington, D.C. has emphasized law enforcement and consumer education efforts aimed at addressing mortgage foreclosure rescue scams, debt relief and credit repair services, and unlawful debt collection. The Federal Trade Commission and other agencies have recommended new legislation and other remedies to enhance the effectiveness of mortgage fraud prevention efforts.
Accurate information a must
The bottom line is that each consumer is responsible for ensuring that the information he or she provides on any mortgage application is accurate. Lenders and brokers are also responsible for that same information. Penalties can and generally will be harsher if a fraudulent activity was undertaken willingly.
The legal and financial ramifications and consequences of mortgage fraud are significant. This is true whether borrowers knowingly committed such fraud or not. Either way, borrowers are ultimately responsible for the personal data provided on their applications and legal documents.
The Mortgage Asset Research Institute (MARI) reported that incidents of mortgage fraud are at an all-time high, increasing 26 percent between 2007 and 2008. The number of new cases is expected to grow as the housing market to recovers from the distressing selloff that occurred during that time. So it should come as no surprise that federal and state governments have taken significant steps to drastically increase the legal punishments that can be handed out to fraudulent perpetrators.
Legal and financial liabilities
Consumers can get caught up in mortgage fraud in a variety of ways. They might misrepresent their income on a loan application or be asked to do so by an unscrupulous broker. They may be asked to stand in as a buyer for someone with bad credit. Persons in tight financial circumstances may fall victim to refinancing or loan modification frauds that leave them in worse shape than before.
What consumers should know is that the penalties for mortgage fraud are real, substantial, and commensurate with its costs. Depending on the specific fraud involved, mortgage fraud is a felony under federal and state laws. Stiff penalties against individuals involved in such schemes have been handed out in terms of millions of dollars in fees and lengthy jail times. Such penalties have been given to executives who securitized mortgage-backed investments, loan officers who helped originate individual loans and individuals who have either willingly, or without knowledge, engaged in mortgage fraud.
Aggressive actions
In the wake of a worsening economic crisis, the Federal Trade Commission (FTC), Congress and the states focused on taking an aggressive approach to protecting consumers in financial distress and increasing oversight and enforcement over providers of consumer financial services and assistance. Examples include mortgage fraud, foreclosure consulting, credit counseling, debt management, and debt settlement.
Testimony in Washington, D.C. has emphasized law enforcement and consumer education efforts aimed at addressing mortgage foreclosure rescue scams, debt relief and credit repair services, and unlawful debt collection. The Federal Trade Commission and other agencies have recommended new legislation and other remedies to enhance the effectiveness of mortgage fraud prevention efforts.
Accurate information a must
The bottom line is that each consumer is responsible for ensuring that the information he or she provides on any mortgage application is accurate. Lenders and brokers are also responsible for that same information. Penalties can and generally will be harsher if a fraudulent activity was undertaken willingly.
Tuesday, September 28, 2010
What really drives prices in Real Estate?
So the second house would take longer to sell right? Well, not necessarily.
Real estate, like any other commodity is driven by consumer demand, in other words, the potential buyers are the one's who drive the prices. We have recently seen the prices in the stock markets all over the world drop. The simple reason is that more people are keeping their money in liquid assets; therefore, they are removing their money from less liquid markets and causing prices to drop.
In any market, it is the buyer's who drive the prices, even in a seller's market. So the best way to get the best price in a falling market, of any kind, is to price the commodity, i.e. your house, where the buyer's will feel that it has the best value. So, if the house on the train track is priced where the buyer still feels that they are getting a good value, then it will sell before the house on the pretty cul-de-sac.
Reprinted from Alberta Ceres-Buda's blog
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