Freddie Mac, a company responsible (along with the other GSE, Fannie Mae) for the sound underwriting standards of conventional, prime mortgages, decided last week to tighten it’s underwriting. This Freddie Mac tightening of underwriting standards is probably too little, too late. In the wake of the decision to allow the GSEs to underwrite and insure [...]

The question… “What happens to the mortgage and the payor if the mortgage holder or lender goes under? I need to know the answer from both points of view as I hold a mortgage as a lender (an old seller carry back) and I pay on my mortgage as a home owner.” This is a [...]

When President Bush signed the Economic Stimulus Act into law making jumbo mortgages GSE insurable, he may have unwittingly pushed our GSEs, Fannie Mae and Freddie Mac, already on tilt, over the edge. If you think we have a housing crisis now, wait until you see what the demise of the GSEs and subsequent secondary [...]

Mortgage Insurance giants are in danger of collapse as claims surge. Mortgage insurance companies stock losses are the possible trigger to another stock market crash. Mortgage Insurance Company Demise Discussed New York Governor and former consumer champion, Eliot Spitzer discuss the demise of the big mortgage and bond insurance companies on Jim Cramer’s Mad Money [...]

The question first…then my answer. “I was under the belief that if my lender was holding funds in escrow for my taxes and insurance, I was owed some nominal rate of interest. Is that true? What if they over escrow…I get the money back, but shouldn’t they have to pay me interest at least on [...]

Here’s the scenario…then I’ll answer… “I owe on my first mortgage $77,000.00 at a fixed rate of 5.25% ( it was a 15 year loan, Monthly payments of $1,180.00 I have around 8 years left to pay ). I also have a equity line of $100,000.00, I used $98,000.00 at a variable rate of 6% [...]

The question… “My loan guy told me yesterday all VA mortgage come with a .25% or a quarter of a discount point. He gave some reason for the charge, but I always thought discount points were optional. I’d pay points only if I wanted a lower rate. Something smells bad…what is it?” You are right [...]

On Friday, the government unemployment report proves a housing crisis created recession is upon us. A housing crisis triggered recession, sadly, I’ve been predicting for years. This new unemployment report showed Americans out of work for at least six months (called long-term unemployed) increasing - attaining levels more indicative of recession than a “soft landing” [...]

Here is the question…. Roger asks, “I am looking to buy my first house and my agent is pushing a mortgage broker. I wanted to know if mortgage brokers are always better than going to my bank.” My answer: Roger, in a word…maybe! Given that direct lenders and banks can legally hide the income they [...]