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ppulatie
2259 Posts |
 Posted - 05/14/2008 : 3:35:34 PM
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Here is another useless program by the government to "straighten out" this mess.
http://thelyonsden.wordpress.com/2008/05/12/keys-to-recovery-initiatives/
This Weeks Mortgage Market View KEYS TO RECOVERY INITIATIVES
Fannie Mae’s Keys to RecoveryTM initiatives are geared toward providing liquidity, stability, and affordability to the housing and mortgage markets for the long term, and include steps to keep struggling borrowers in their homes, assist prospective homebuyers with home purchases, and stabilize communities impacted by the mortgage market downturn.
The initiatives include:
1) a new refinancing option for Fannie Mae “underwater” borrowers that will allow for refinancing up to 120% of a property’s current value;
2) a renewal and expansion of the company’s partnership with the state Housing Finance Agencies (HFAs) to provide $10 billion in financing for qualified, first-time homebuyers;
3) in partnership with Self-Help Credit Union, a new initiative that allows families in hard-hit communities to reside in foreclosed properties on a rent-to-own basis; and
4) pricing for new jumbo-conforming loans that will be flat to conforming for portfolio asset acquisition through the end of the year.
Refinancing “Underwater” Borrowers
With home prices declining in many areas of the country and lending standards tightening as a result of the ongoing turmoil in the housing finance system, many borrowers find themselves with mortgages that exceed the value of their homes and are locked out of refinancing into safer loans that would allow them to sustain their mortgage payments.
In order to assist borrowers whose home equity is “underwater,” reduce foreclosures and support sustained homeownership, Fannie Mae will purchase refinanced loans the company owns for up to 120% of the current property value provided the borrower is current with their mortgage payments.
HFA Investment
HFAs exist to provide affordable homeownership and rental housing opportunities within their states. The majority of HFA single-family business is for first-time homebuyers who have received borrower counseling and down payment and/or closing cost assistance from the government.
Fannie Mae has maintained a long-term agreement with the National Council of State Housing Agencies (NCSHA) to purchase loans generated by the HFAs. The company is renewing and expanding its agreement with NCHSA to purchase up to $10 billion in HFA loans by the end of 2009. In addition, the company will provide preferred pricing on HFA business to lower borrower costs for first-time homebuyers.
Neighborhood Stabilization
In order to minimize the neighborhood impact of foreclosed properties, Fannie Mae will support an initiative with Self-Help Credit Union in partnership with local non-profits to purchase Fannie Mae-owned, foreclosed homes in hard-hit neighborhoods. The nonprofits would acquire and rehab the properties, and then sell them to qualified borrowers or enter into a customized lease-purchase agreement. The initiative will be geared toward borrowers who have the income to qualify for the home purchase, but need additional time to improve creditworthiness. Participants choosing the rent-to-own option would be granted up to five years to qualify for the mortgage and receive extensive credit counseling during the lease period.
Jumbo-Conforming Loans
Following passage of the Economic Stimulus Act of 2008, Fannie Mae is temporarily able to purchase loans greater than the conventional-conforming loan limit of $417,000.
In certain high cost-areas as designated by HUD, the company is able to purchase jumbo-conforming loans up to $729,750 in the continental U.S. The company is now accepting deliveries of 15-year and 30-year fixed-rate (FRM), and certain adjustable-rate
(ARM), jumbo-conforming mortgages. In order to bolster liquidity in the jumbo-conforming market and help reduce rates for jumbo-conforming mortgages in high-cost areas, the company will now:
Price new jumbo-conforming loans flat to conforming for portfolio asset acquisition through the end of the year. This means that although jumbos are not TBA-eligible, we will be pricing them as if they were.
Allow for cash-out, jumbo-conforming loan refinancings.
Expand loan-to-value (LTV) criteria for jumbo-conforming purchase loans and limited cash-out refinancings.
Offer expanded jumbo-conforming FRM and ARM options.
HomeStay
The company’s Keys to RecoveryTM efforts build on Fannie Mae’s HomeStayTM initiative announced last year.
The company is working with lenders, loan servicing companies and policymakers to respond to the housing and mortgage market crisis with a goal to minimize the impact on families and communities by preventing foreclosures, supporting counseling efforts, and providing market stability.
Through HomeStayTM, since the beginning of 2007, the company has:
Helped more than 200,000 at-risk homeowners refinance into safer loans or work out their loans, including nearly $28 billion in refinancings for subprime borrowers.
Provided more than $10 million in grants - and hundreds of employee volunteer hours - to support foreclosure prevention counseling and workshops since the housing crisis deepened last year.
Worked with loan servicers to emphasize work-outs for delinquent loans, instituted attorney incentive fees for workouts, provided HomeSaver AdvanceTM loans that allow borrowers to catch up on their delinquent mortgage payments, deployed staff to work on-site with our largest servicers, and made dozens of operational changes and enhanced servicer authorities to allow for easier modifications and work-outs.
Supported HOPE NOW initiatives and public policies to give at-risk and delinquent borrowers a better chance to afford their mortgages.
For professional help with any of these initiatives please request assistance here
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velecico
3995 Posts |
Posted - 05/14/2008 : 3:37:46 PM
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why is it useless ? , what do you propose thats better ? |
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ppulatie
2259 Posts |
Posted - 05/14/2008 : 3:53:33 PM
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Read it carefully.
1. Only for people who currently have Fannie Mae loans.
2. Must be current.
3. Most Fannie Mae loans were more stable anyway.
4. In CA and other areas, 120% will not do a thing for people, not when values have dropped 30-40% or more.
5. For the lease to buy option, those people will have to be able to show income documentation, which most could not do. And who sets the price for the to buy option? Or is it the default amount?
6. What happens to a borrower who takes advantage of 120%, and after refinancing, the value drops another 20%?
7. What will this do for the "leverage" position of Fannie Mae?
8. Price jumbos at conforming levels? What about the inherent risk of these larger loans?
This will only help a very few people. And hardly any on the West Coast. |
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neversaynever
1044 Posts |
Posted - 05/14/2008 : 3:54:54 PM
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| How do we do this 120% loan????????????????? WHEN????? |
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neversaynever
1044 Posts |
Posted - 05/14/2008 : 3:57:46 PM
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| STOP *****ING, I know a lot of people this will help |
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katroberts
1208 Posts |
Posted - 05/14/2008 : 4:06:34 PM
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I can see some of this working in Florida.
The lease purchase option for those with income would work with many that need time to work on credit.
If there are lenders that will entertain a refi at 120%, there are plenty of people that could be served here in Florida. At least they could refinance into a good fixed rate or a better rate and then hold the mortgage and continue to live in the home.
I hope this comes to fruition.
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GSE_
509 Posts |
Posted - 05/14/2008 : 5:40:18 PM
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| How can you know anyone this program will help? Please cite one MI Company who will insure anything above 97%LTV, forget 120%LTV. |
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