Sen. Charles E. Schumer, D-New York, is asking the Federal Housing Administration to “aggressively” ensure that any legitimate and qualified Lend America borrower can secure a loan after this week’s shutdown of the Long Island-based mortgage servicer. Lend America, based in Melville, N.Y., shut its doors this week after the FHA withdrew its approval, citing fraudulent lending practices.
The Federal Reserve issued rules today which will increase the number of credit rating agencies – beyond the big three – to review the soundness of securities pledged for loans. The Fed’s intent is to provide further safeguards and provide a possible catalyst to increase lending as credit tightening among financial institutions persists.
If you’re looking to buy a home and have good credit, you’re timing is historic. Long-term mortgage rates hit record lows in the week that ended today, Freddie Mac reported in its Primary Mortgage Market Survey.
The Federal Housing Administration, its funds almost depleted from the mortgage lending crisis, is seeking approval for new policies that would require higher minimum credit scores, more upfront cash and higher annual premiums from borrowers.
Credit losses continue on the rise, and banks are facing “sizable additional” losses, particularly as a result of poor demand from credit-worthy borrowers. The picture Greenlee drew suggested that a crisis is still brewing, and possibly yet to peak, in the commercial lending arena, fueled by the sharp declines in the value of commercial properties and land.
The Obama Administration today warned mortgage lenders that not enough loans have been modified and not enough re-drawn mortgages have been made permanent under an existing effort to help homeowners avoid foreclosure.
Mortgage lenders have failed to deliver under the Obama Administration’s Making Home Affordable program that is suppose to stem foreclosures by reducing loan payments, a U.S. Treasury official said. Obama administration officials on Monday will announce a campaign to pressure lenders to reduce payments for a larger number of homeowners, and make more loan modifications permanent, the Treasury official told the New York Times.
Federal and state officials made their announcement in foreclosure-ridden Nevada, but scam artists touting so-called mortgage modifications are preying on homeowners across the country. The upfront fees being taken from homeowners range from $1,500 to $7,000.