Monday, December 8, 2008
Thursday, December 4, 2008
Treasury Department Considers Plan to Lower Mortgage Rates
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
751 E Southlake Blvd Ste 100
Southlake, TX 76092
office 817-410-2518
fax 817-410-2519
Financial industry lobbyists are urging the Treasury Department to take steps to lower rates on 30-year mortgages to 4.5 percent.
WASHINGTON -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.
Click here to read more in The Wall Street Journal.
Lisa Warren
Branch Manager
751 E Southlake Blvd Ste 100
Southlake, TX 76092
office 817-410-2518
fax 817-410-2519
Wednesday, December 3, 2008
First-Time Home Buyer Tax Credit at a Glance
The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The tax credit works like an interest-free loan and must be repaid over a 15-year period.
NAHB is providing the information on this web site for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
1201 15th Street, NW
Washington, DC 20005
202-266-8200
800-368-5242
Copyright © 2008 National Association of Home Builders. All rights reserved.
The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The tax credit works like an interest-free loan and must be repaid over a 15-year period.
NAHB is providing the information on this web site for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
1201 15th Street, NW
Washington, DC 20005
202-266-8200
800-368-5242
Copyright © 2008 National Association of Home Builders. All rights reserved.
Tuesday, December 2, 2008
Exterior Door Selection and Installation
New exterior doors often fit and insulate better than older types. If you have older doors in your home, replacing them might be a good investment, resulting in lower heating and cooling costs. If you're building a new home, you should consider buying the most energy-efficient doors possible.
When selecting doors for energy efficiency, it's important to first consider their energy performance ratings in relation to your climate and home's design. This will help narrow your selection.
Types of Doors
One common type of exterior door has a steel skin with a polyurethane foam insulation core. It usually includes a magnetic strip (similar to a refrigerator door magnetic seal) as weatherstripping. If installed correctly and if the door is not bent, this type of door needs no further weatherstripping.
The R-values of most steel and fiberglass-clad entry doors range from R-5 to R-6 (not including the effects of a window.) For example: A 1-1/2 inch (3.81 cm) thick door without a window offers more than five times the insulating value of a solid wood door of the same size.
Glass or "patio" doors, especially sliding glass doors, lose heat much faster than other types of doors because glass is a very poor insulator. Most modern glass doors with metal frames have a thermal break, which is a plastic insulator between inner and outer parts of the frame. Models with several layers of glass, low-emissivity coatings, and/or low-conductivity gases between the glass panes are a good investment, especially in extreme climates. Over the long run, the additional cost is paid back many times over in energy savings. When buying or replacing patio doors, keep in mind that swinging doors offer a much tighter seal than sliding types.
Also, with a sliding glass door, it's impossible to stop all the air leakage around the weatherstripping and still be able to use the door. Also, after years of use, the weatherstripping wears down so air leakage increases as the door ages. If the manufacturer has made it possible to do so, you can replace worn weatherstripping on sliding glass doors.
Installation
When you buy a door, it will probably be a pre-hung frame. Pre-hung doors usually come with wood or steel frames. You will need to remove an existing door frame from the rough opening before you install a pre-hung door. The door frame must be as square as possible, so that the door seals tightly to the jamb and swings properly.
Before adding the interior trim, apply an expanding foam caulking to seal the new door frame to the rough opening and threshold. This will help prevent air from getting around the door seals and into the house. Apply carefully, especially with a wood frame, to avoid having the foam force the frame out of square.
If needed, you'll also want to add weatherstripping. Check the weatherstripping on your exterior doors annually to see if it needs replacement.
Storm Doors
Adding a storm door can be a good investment if your existing door is old but still in good condition. However, adding a storm door to a newer, insulated door is not generally worth the expense since you won't save much more energy.
Storm door frames are usually made of aluminum, steel, fiberglass, or wood (painted or not). Wooden storm doors require more maintenance than the other types. Metal-framed storm doors might have foam insulation within their frames.
High-quality storm doors use low-emissivity (Low-E) glass or glazing. Some doors have self-storing pockets for the glass in summer, and an insect screen for the winter. Some have fixed, full length screens and glass panels that slide out of the way for ventilation. Others are half screen and half glass, which slide past each other. Some are removable for cleaning, others are not. All of these features add some convenience and higher costs.
Never add a glass storm door if the exterior door gets more than a few hours of direct sun each day. The glass will trap too much heat against the entry door and possibly damage it.
Storm doors for patio doors are hard to find but they are available. Adding one to a new, multi-glazed, Low-E door is seldom economic. Insulated drapes, when closed for the night in the winter (or on sunny days in the summer) are also a good idea.
Weatherstripping
You can use weatherstripping in your home to seal air leaks around movable joints, such as windows or doors. To determine how much weatherstripping you will need, add the perimeters of all windows and doors to be weatherstripped, then add 5%–10% to accommodate any waste. Also consider that weatherstripping comes in varying depths and widths. Before applying weatherstripping in an existing home, you need to do the following (if you haven't already):
Detect air leaks
Assess your ventilation needs for indoor air quality.
Selection
You need to choose a type of weatherstripping that will withstand the friction, weather, temperature changes, and wear and tear associated with its location. For example, when applied to a door bottom or threshold, weatherstripping could drag on carpet or erode as a result of foot traffic. Weatherstripping in a window sash must accommodate the sliding of panes—up and down, sideways, or out. The weatherstripping you choose should seal well when the door or window is closed while allowing it to open freely.
Choose a product for each specific location. Felt and open-cell foams tend to be inexpensive, susceptible to weather, visible, and inefficient at blocking airflow. However, the ease of applying these materials may make them valuable in low-traffic areas. Vinyl, which is slightly more expensive, holds up well and resists moisture. Metals (bronze, copper, stainless steel, and aluminum) last for years and are affordable. Metal weatherstripping can also provide a nice touch to older homes where vinyl might seem out of place.
You can use more than one type of weatherstripping to seal an irregularly shaped space. Also take durability into account when comparing costs.
Application
Weatherstripping supplies and techniques range from simple to the technical. Consult the instructions on the weatherstripping package. Here are a few basic guidelines:
Measure the area to be weatherstripped twice before you cut anything.
Apply weatherstripping snugly against both surfaces. The material should compress when the window or door is shut.
When weatherstripping doors:
Choose the appropriate door sweeps and thresholds for the bottom of the doors.
Weatherstrip the entire door jamb.
Apply one continuous strip along each side.
Make sure the weatherstripping meets tightly at the corners.
Use a thickness that causes the weatherstripping to tightly press between the door and the door jamb when the door closes, without making it difficult to shut.
For air sealing windows, apply weatherstripping between the sash and the frame. The weatherstripping shouldn't interfere with the operation of the window.
Copyright © 2008 ( DFW Metro Green Consulting ) All rights Reserved.
New exterior doors often fit and insulate better than older types. If you have older doors in your home, replacing them might be a good investment, resulting in lower heating and cooling costs. If you're building a new home, you should consider buying the most energy-efficient doors possible.
When selecting doors for energy efficiency, it's important to first consider their energy performance ratings in relation to your climate and home's design. This will help narrow your selection.
Types of Doors
One common type of exterior door has a steel skin with a polyurethane foam insulation core. It usually includes a magnetic strip (similar to a refrigerator door magnetic seal) as weatherstripping. If installed correctly and if the door is not bent, this type of door needs no further weatherstripping.
The R-values of most steel and fiberglass-clad entry doors range from R-5 to R-6 (not including the effects of a window.) For example: A 1-1/2 inch (3.81 cm) thick door without a window offers more than five times the insulating value of a solid wood door of the same size.
Glass or "patio" doors, especially sliding glass doors, lose heat much faster than other types of doors because glass is a very poor insulator. Most modern glass doors with metal frames have a thermal break, which is a plastic insulator between inner and outer parts of the frame. Models with several layers of glass, low-emissivity coatings, and/or low-conductivity gases between the glass panes are a good investment, especially in extreme climates. Over the long run, the additional cost is paid back many times over in energy savings. When buying or replacing patio doors, keep in mind that swinging doors offer a much tighter seal than sliding types.
Also, with a sliding glass door, it's impossible to stop all the air leakage around the weatherstripping and still be able to use the door. Also, after years of use, the weatherstripping wears down so air leakage increases as the door ages. If the manufacturer has made it possible to do so, you can replace worn weatherstripping on sliding glass doors.
Installation
When you buy a door, it will probably be a pre-hung frame. Pre-hung doors usually come with wood or steel frames. You will need to remove an existing door frame from the rough opening before you install a pre-hung door. The door frame must be as square as possible, so that the door seals tightly to the jamb and swings properly.
Before adding the interior trim, apply an expanding foam caulking to seal the new door frame to the rough opening and threshold. This will help prevent air from getting around the door seals and into the house. Apply carefully, especially with a wood frame, to avoid having the foam force the frame out of square.
If needed, you'll also want to add weatherstripping. Check the weatherstripping on your exterior doors annually to see if it needs replacement.
Storm Doors
Adding a storm door can be a good investment if your existing door is old but still in good condition. However, adding a storm door to a newer, insulated door is not generally worth the expense since you won't save much more energy.
Storm door frames are usually made of aluminum, steel, fiberglass, or wood (painted or not). Wooden storm doors require more maintenance than the other types. Metal-framed storm doors might have foam insulation within their frames.
High-quality storm doors use low-emissivity (Low-E) glass or glazing. Some doors have self-storing pockets for the glass in summer, and an insect screen for the winter. Some have fixed, full length screens and glass panels that slide out of the way for ventilation. Others are half screen and half glass, which slide past each other. Some are removable for cleaning, others are not. All of these features add some convenience and higher costs.
Never add a glass storm door if the exterior door gets more than a few hours of direct sun each day. The glass will trap too much heat against the entry door and possibly damage it.
Storm doors for patio doors are hard to find but they are available. Adding one to a new, multi-glazed, Low-E door is seldom economic. Insulated drapes, when closed for the night in the winter (or on sunny days in the summer) are also a good idea.
Weatherstripping
You can use weatherstripping in your home to seal air leaks around movable joints, such as windows or doors. To determine how much weatherstripping you will need, add the perimeters of all windows and doors to be weatherstripped, then add 5%–10% to accommodate any waste. Also consider that weatherstripping comes in varying depths and widths. Before applying weatherstripping in an existing home, you need to do the following (if you haven't already):
Detect air leaks
Assess your ventilation needs for indoor air quality.
Selection
You need to choose a type of weatherstripping that will withstand the friction, weather, temperature changes, and wear and tear associated with its location. For example, when applied to a door bottom or threshold, weatherstripping could drag on carpet or erode as a result of foot traffic. Weatherstripping in a window sash must accommodate the sliding of panes—up and down, sideways, or out. The weatherstripping you choose should seal well when the door or window is closed while allowing it to open freely.
Choose a product for each specific location. Felt and open-cell foams tend to be inexpensive, susceptible to weather, visible, and inefficient at blocking airflow. However, the ease of applying these materials may make them valuable in low-traffic areas. Vinyl, which is slightly more expensive, holds up well and resists moisture. Metals (bronze, copper, stainless steel, and aluminum) last for years and are affordable. Metal weatherstripping can also provide a nice touch to older homes where vinyl might seem out of place.
You can use more than one type of weatherstripping to seal an irregularly shaped space. Also take durability into account when comparing costs.
Application
Weatherstripping supplies and techniques range from simple to the technical. Consult the instructions on the weatherstripping package. Here are a few basic guidelines:
Measure the area to be weatherstripped twice before you cut anything.
Apply weatherstripping snugly against both surfaces. The material should compress when the window or door is shut.
When weatherstripping doors:
Choose the appropriate door sweeps and thresholds for the bottom of the doors.
Weatherstrip the entire door jamb.
Apply one continuous strip along each side.
Make sure the weatherstripping meets tightly at the corners.
Use a thickness that causes the weatherstripping to tightly press between the door and the door jamb when the door closes, without making it difficult to shut.
For air sealing windows, apply weatherstripping between the sash and the frame. The weatherstripping shouldn't interfere with the operation of the window.
Copyright © 2008 ( DFW Metro Green Consulting ) All rights Reserved.
Monday, November 24, 2008
Street Smarts
The Gift that Keeps on Taking
Gift cards have become extremely popular. In fact, the variety of cards offered and the sheer convenience of these little plastic gems have created a new global culture of gift–giving that few could ever have anticipated. The National Retailers Federation estimates that a total of $97 billion in gift cards – $26.3 billion during the holidays alone – were purchased in the US last year. This year, however, experts say that this hassle–free holiday gift may have met its match: a tough economy.
Earlier this year, when Sharper Image declared bankruptcy, nearly $20 million in gift cards were instantly voided, forcing shoppers to suddenly reconsider the merits of the gift card. Remember, unlike banks accounts, gift cards are not protected by the FDIC or anyone, and there is no guarantee that you can redeem the value of the card if a company goes under. And with other major retailers filing for bankruptcy protection recently (Circuit City, Mervyns, and Linens–N–Things, to name a few) giving gift cards this year could be as risky as playing the stock market.
The good news is, with US retail sales expected to shrink this holiday season, retailers will be working hard to get their share of your holiday budget, no matter how large or small. This means major sales and deals that could make going to the mall this year a much better option than simply handing out gift cards anyway. Because of these deals, what a $50 gift card would have purchased last year could turn into a much more valuable and memorable gift for everyone on your list.
Either way, if you receive any gift cards this year, or you still have a few you haven't used yet, be sure to redeem them right away.
by
Lisa Warren
Southlake Branch Manager
Silver Oak Mortgage
Phone: (817) 410-2518
Fax: (817) 410-2519
lwarren@somlp.com
href="http://www.silveroakmortgagelp.com/">www.silveroakmortgagelp.com
The Gift that Keeps on Taking
Gift cards have become extremely popular. In fact, the variety of cards offered and the sheer convenience of these little plastic gems have created a new global culture of gift–giving that few could ever have anticipated. The National Retailers Federation estimates that a total of $97 billion in gift cards – $26.3 billion during the holidays alone – were purchased in the US last year. This year, however, experts say that this hassle–free holiday gift may have met its match: a tough economy.
Earlier this year, when Sharper Image declared bankruptcy, nearly $20 million in gift cards were instantly voided, forcing shoppers to suddenly reconsider the merits of the gift card. Remember, unlike banks accounts, gift cards are not protected by the FDIC or anyone, and there is no guarantee that you can redeem the value of the card if a company goes under. And with other major retailers filing for bankruptcy protection recently (Circuit City, Mervyns, and Linens–N–Things, to name a few) giving gift cards this year could be as risky as playing the stock market.
The good news is, with US retail sales expected to shrink this holiday season, retailers will be working hard to get their share of your holiday budget, no matter how large or small. This means major sales and deals that could make going to the mall this year a much better option than simply handing out gift cards anyway. Because of these deals, what a $50 gift card would have purchased last year could turn into a much more valuable and memorable gift for everyone on your list.
Either way, if you receive any gift cards this year, or you still have a few you haven't used yet, be sure to redeem them right away.
by
Lisa Warren
Southlake Branch Manager
Silver Oak Mortgage
Phone: (817) 410-2518
Fax: (817) 410-2519
lwarren@somlp.com
href="http://www.silveroakmortgagelp.com/">www.silveroakmortgagelp.com
Saturday, November 22, 2008
DATES TO REMEMBER
Holiday Happenings in the area.....
Nov. 14 - Jan. 3 - ICE! and Lone Star Christmas (Grapevine)
Nov. 22 - Jan. 4 - The Trains at North Park (Dallas)
Nov. 28 - Jan. 4 - Holiday in the Park (Six Flags in Arlington)
Saturday, Nov. 22 - 3:00 to 9:00 pm
Home For the Holidays (Southlake Town Square)
Tree lighting at 6:30 pm
Saturday, Nov. 22 - 24 - www.SouthlakeFestivalofTrees.com
Friday, Nov. 28 - FW Sundance Square
2:00 to 5:30 pm - Holiday Fun Zone
6:00 to 8:00 pm - Parade of Lights and Tree Lighting
Nov. 29 - Dec. 21 - Snowflakes, Sugarplums, and SANTA! (Fort Worth)
Saturday, Nov. 29 - 6:00 to 8:00 pm
Hurst Annual Tree Lighting Spectacular
Monday, Dec. 1 - 7:00 pm
Historic downtown Grapevine Carol of Lights
Thursday, Dec. 4 - 7:00 pm
Historic downtown Grapevine Parade of Lights
Friday, Dec. 5 - 6:00 to 9:30 pm
Holly Days at Keller Town Center
Saturday, Dec. 6 - 10:00 am
Neiman Marcus Adolphus Children’s Parade Dallas
Saturday, Dec. 6 - 4:00 to 8:00 pm
NRH Night of Holiday Magic at NRH20 Family Waterpark
Saturday, Dec. 6 - dusk
Twinkle Light Parade on Grapevine Lake
Happy Holidays!!!
Friday, November 14, 2008
Foreclosure Prevention
The two secondary-mortgage-market companies are well aware of the market pain and are taking a number of steps to provide relief, particularly to prevent foreclosures.
Among other things, Freddie Mac is allowing lenders to modify their at-risk loans into 40-year, lower interest-rate mortgages and to reduce borrowers' burdens by permitting them to roll up to six months of missed payments into what amounts to an unsecured second loan. The two companies are also ramping up their staff and adjusting compensation so their internal structure better matches the size and complexity of the processing demand they face.
What’s more, to help facilitate short sales, Lockhart’s agency will be releasing a large-scale, streamlined, standardized process for expediting short sales, which he said will give lenders flexibility and tools like principal forbearance that they can’t easily use right now.
But Lockhart made it clear that the bulk of the problem isn’t with Fannie and Freddie loans, but debt in what the financial services industry calls private-label securities, the Wall Street loans, many of them subprime, that are held by investors all over the world.
The streamlined short sale process his agency will be announcing soon—he didn’t give a time line—could go a long way to focusing the minds of lenders on the problem. But ultimately the problem won’t go way until interest rates come down, buyers start streaming back into the market again, and prices firm up, he suggested.
—Robert Freedman
Realtor Magazine
The two secondary-mortgage-market companies are well aware of the market pain and are taking a number of steps to provide relief, particularly to prevent foreclosures.
Among other things, Freddie Mac is allowing lenders to modify their at-risk loans into 40-year, lower interest-rate mortgages and to reduce borrowers' burdens by permitting them to roll up to six months of missed payments into what amounts to an unsecured second loan. The two companies are also ramping up their staff and adjusting compensation so their internal structure better matches the size and complexity of the processing demand they face.
What’s more, to help facilitate short sales, Lockhart’s agency will be releasing a large-scale, streamlined, standardized process for expediting short sales, which he said will give lenders flexibility and tools like principal forbearance that they can’t easily use right now.
But Lockhart made it clear that the bulk of the problem isn’t with Fannie and Freddie loans, but debt in what the financial services industry calls private-label securities, the Wall Street loans, many of them subprime, that are held by investors all over the world.
The streamlined short sale process his agency will be announcing soon—he didn’t give a time line—could go a long way to focusing the minds of lenders on the problem. But ultimately the problem won’t go way until interest rates come down, buyers start streaming back into the market again, and prices firm up, he suggested.
—Robert Freedman
Realtor Magazine
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