Fannie Mae and Freddie Mac Still Will Not Forgive Mortgage Loans

On Tuesday, the regulator of Fannie Mae and Freddie Mac declared that they are planning not to forgive a part of the principal on delinquent mortgage loans they guarantee. In spite of the offer by the U.S. Treasury Department to give incentive payments for writedowns, Fannie Mae and Freddie Mac will still opt out of loan forgiveness programs.

The Federal Housing Finance Agency (FHFA) has control over both Fannie Mae and Freddie Mac, which are government-owned mortgage-finance companies. After doing months of study FHFA’s acting director Edward J. DeMarco said they verified that both companies will still be prohibited from giving loan modifications.

FHFA finally settled on decision after encountering pressure from activist groups and congressional Democrats to reserve the current regulation. Those who are against the decision said offering mortgage loan writedowns would allow more families to keep their houses from foreclosure.

In order to motivate FHFA to modify its policies on the loan forgiveness programs, the U.S. Treasury Department presented Fannie Mae and Freddie Mac a maximum of 63 cents per dollar of principal reduction. The money would be derived from the unspent funds of the Troubled Asset Relief Program (TARP).

However, DeMarco said during his statement that the possible merit was too little and doubtful in relation to unspecified costs and risks.

The main justification why FHFA refused the notion of loan forgiveness programs is because debt would accumulate for taxpayers. FHFA’s study revealed that, under most circumstances, taxpayers would lose money since the program would get funds from the Treasury Department. DeMarco said that the regulator has the task to evaluate how additional help would affect taxpayers.

In contrast, according to Treasury Secretary Timothy Geithner, DeMarco’s decision to advocate the existing policy on loan forgiveness is not the best for the United States. He added that the use of principal reductions would provide assistance to a large number of distressed homeowners.

Another Mortgage Help Center by Fannie Mae

Because the housing market and mortgage financing industry is still suffering from stress, a satellite office that will provide assistance to homeowners wanting to avoid foreclosure has been opened by Fannie Mae.

The satellite office is located across the Citizens Business Bank Arena, where the San Bernardino freeway intersects the Ontario freeway. This location was chosen so that Inland Empire clients will have more access to counselors that can help them get unemployment forbearance or help in short sales and other activities related to foreclosure.

According to Allan Armijo, manager of the Los Angeles and Inland Empire Mortgage Help Center, the satellite office will help minimize miscommunication with loan servicers and creates a comprehensive outlook of the overall process. Moreover, Armijo said that they believed Inland Empire was a strategic place to build a satellite office to further help the area.

Fannie Mae said they have the biggest foreclosure prevention process in the United States for its mortgage clients. Also, it has provided assistance for more or less 1 million homeowners either preserve their houses or keep away from foreclosure from the year 2009.

At present, there are more than 265,000 Fannie Mae-backed loans in the Riverside and San Bernardino County. More than 13,000 of it are already delinquent.

The Greater Los Angeles Mortgage Help Center, since its start of operation in October 2010, has already assisted 2,300 client borrowers get a non-foreclosure solution. 63 percent of this found a mortgage solution to stay in their homes. In the year 2011, it assisted 852 borrowers stay in their homes.

The staff of the Inland Empire satellite office will be by Neighborhood Partnership Housing Services, which is a local nonprofit partner. According to Clemente Mojica, president and chief executive officer of the Ontario housing services agency, it will provide three full-time counselors, two intake officers and a receptionist.

Refinancing an Auto Loan

Mortgages are not the only types of loans which can be refinanced, but also auto loans. Unfortunately, the majority of the public are not aware of it. The survey, conducted by CarFinance.com, emphasizes that refinancing an auto loan is feasible and may be worth anyone’s time.

The survey by CarFinance.com had 2,000 adult respondents in the months of June and July 2012, and discovered that 63 percent of the respondents are not aware that they could refinance an auto loan. Moreover, 12 percent of the respondents said they had previously refinanced an auto loan.

While it is still a bit difficult to get credit, at present, it is less difficult to get a loan than in the previous year. The following is a guide to assess whether or not you should refinance an auto loan.

First, if an auto loan comes with rigid pre-payment penalties, then it’s not a good time to refinance, especially if you have a small balance and you are not capable of making large monthly payments.

Second, make sure to assess your credit by getting your free annual report from the three credit reporting agencies – Equifax, Experian, and TransUnion – through visiting AnnualCreditReport.com. Check if the information are accurate, and if there are errors, dispute it.

In addition to getting your credit report, getting your credit score is also important. If you have a good credit report and credit score, then you will more likely benefit from refinancing.

Third, look for a number of auto loans from different banks. It is better if you have a lot of options or a wide range of quotes. Websites such as LendingTree.com allows you to file an application to many lenders all at once.

Fourth, do not rely on the figures given solely by the bank, but you should also use an auto loan calculator to compare your existing payment schedule with your recent one. On a positive note, refinancing an auto loans does not include expensive application fees or closing costs, unlike refinancing a mortgage.

Repeat Homebuyers Now Qualified for Delaware Loan Program

According to Delaware State Housing Authority, there will be a change in its homebuyer program which will permit non first-time homebuyers who are eligible to buy a home in Delaware through a 30-year, low-interest, fixed-rate mortgage loan.

In the past, the homebuyer program of DSHA was only available to income-qualified, first time homebuyers. The present Home Again loan program permits eligible persons who have owned a house before to utilize DSHA’s array of mortgages.

Previously, second-time or repeat homebuyers most of the time had money to buy a new home using the earnings created from the sale of the old home. However, that is not what’s happening in reality.

Moreover, families who want to downsize to a home that is more suitable their needs or finances may ask help with down payment and closing costs. At present, DSHA has considered this. As a result, it expanded eligibility to help repeat homebuyers.

According to Governor Jack Markell, Delaware’s housing market and economy will progress because of the increase in mortgage opportunities. In addition, Anas Ben Addi, director of DSHA, said that this extended eligibility is one of the steps in achieving DSHA’s mission to offer opportunities to all Delaware residents to benefit from homeownership. Addi also said that they are constantly developing ways to provide individuals access to superior homes all over the First State.

Home Again loan program provides assistance to potential homebuyers with financing at below-market interest rates. To be eligible for this loan program, the buyer’s income must not go beyond $93,725 and the property pursued by the buyer must not go beyond $387,692.

Together with Home Again, DSHA declared the Loans for Heroes mortgage product which presents lower rates for qualified veterans.

Fred Fortunato, vice president of Project Management at Benchmark Builders Inc., said that the first-time homebuyer programs by DSHA have been an admired accomplishment for Delaware.

The Fate of Payday Stores Rest on The Hands of The People

Due to the increasing problems that the State of Missouri is facing with payday loans the Missouri Supreme Court has decided on their hearing last July 31 to put the fate of these lenders to the voters of the state on November. This decision has pleased the State Representative of Columbia, Mary Still and two other politicians who called this decision a triumph for the populace of the state.

A 36 percent limit on the interest charges will be adapted for payday loans if ever the issue will be approved in November. Currently the average interest rate according to Branson Wood is 445 percent in Missouri. Wood believes that the issue will definitely be approved by the voters since it is beneficial to both parties in the state. Many of the state’s leaders are supportive to it; among them are Katie and Branson Wood. They believe this will be beneficial of the people of the state and the economy as well.

Payday loans in Missouri have high interest rates and soon, there will be an end to them. The Woods and Still are actively campaigning on their petition by the issue; and now, only the appropriate signatures are needed so that the State Secretary’s signature can be verified and the issue will be solved.

Law makers are confident that the signatures will not be a problem for they were able to get 180,000 of them which are double than the number they were required.  The Supreme Court’s decision is now quoted by the masses as “a victory for Missouri consumers and the Missouri economy,” according to Still.

After the Circuit Judge Jon E. Beetem hadrejected the balloting for the issue, Branson Wood appealed the case to the Supreme Court and they were pleased that it has approved their call.