1. Economic Reports – Daily there are economic reports that are released that tell us information of how the economy is performing. These reports cause investors to react on Wall street. If you have a source of what reports are ready to be released, as “The Property Tip”, then you get a forecast of what is coming.

2. Mortgage Bonds – Mortgage interest rates are directly attached to the performance of mortgage backed securities (MBS)or mortgage bonds on Wall street. Getting good at watching the performance of these MBS can give a great prediction of where mortgage rates will go. Remember, Stock and bonds go in different directions.

Compare these tips to previous blogs and it can be a legend to assist you in how our forecasts are reached. Really, although I admire your vigor to understand rate fluctuations, becoming an expert in the stock market is not your job. Your Mortgage Professional who is seeking your financing for your new home should be able to give a daily update as to how the MBS are performing in real time and estimate rate changes on your behalf. Anyone who is giving you the current rates are giving you yesterdays news.
In my office, everyone has this info at hands grasp. Likely, You may do this 4 or 5 times throughout your life, but we do this every single day. Its your home and your future; its our profession and our passion, so we should look out for your best interests!

Thank you for your kind note.

We have had FHA financing available for 60 years for those with good credit. The whole purpose of the FHASecure program was to help delinquent conventional borrowers avoid foreclosure.

Who says so? HUD.

In its mortgagee letter HUD offers the following comments:

*”This mortgagee letter describes how lenders and homeowners may refinance mortgages that, due to the increased mortgage payment following the reset, have become delinquent.”

*”This mortgagee letter extends eligibility to borrowers who became delinquent under their current mortgage following the reset of the interest rate.”

*”These instructions are designed to permit homeowners, who previous to their reset, demonstrated an ability to meet their mortgage obligations, an opportunity to refinance into a prime-rate FHA-insured mortgage.”

For options to have value to distressed borrowers they must be accessible. That is largely not the case with FHASecure, regardless of what HUD’s press releases say.

My question remains: How many delinquent conventional borrowers with toxic loans can you name who have obtained FHASecure financing?

All the best,

Peter
http://www.fhaloanpros.com

Most of my clients want options and have heard about this program. I do believe that FHA missed the target on the objective behind this program. Most importantly, this loan is not a subprime bailout but is for those late on a conventional Adjustable mortgage. However, what the program did do was raise awareness and brought back the lifeline that the majority of originators had been overlooking called FHA.

In todays tough mortgage market, consumers need options available to them. The reality for most is they will face strict qualifying guidelines when approaching those options. But what I like to stress most is that it doesn’t mean they should give up and feel they have struck out. I believe it is better to take a swing at the ball and if you miss then, find the next best pitch that fits within your strike zone!

The big numbers you see are because the FHA changed the definition of the FHASecure program to include all conventional refinances. In other words, the original purpose of the program — to help borrowers with toxic mortgages — has, to date, been a dud.

See:

http://www.fhaloanpros.com/2008/01/hud-poor-results-no-problem-just-redefine-the-problem/

Exactly how many delinquent conventional borrowers do you know who have refinanced under the FHASecure program?