www.desmoinesiamortgage.com

An article I found on the Wall Street Journal Blog. It really is a wonderful time to get a lot of great deals on homes while rates are this low, so it’s a shame to see this going on.  Hope you’re having a great week!

-David Baker
http://SayHalo.com

By Dawn Wotapka

Mortgage rates are low. Very low. But so is buyer interest.

Mortgage applications dipped 4.4% for the week ended July 23, the Mortgage Bankers Association reported Wednesday. Refinance activity fell 5.9%. That’s a disappointment from a week ago, when it seemed that low rates were sparking buyers’ interest.

Those waiting for further rate declines should tread lightly: The average rate for the plain vanilla, 30-year fixed loan — currently the most popular with consumers — climbed a hair to 4.69%. Points slipped to 0.88 from 1.04. That is a slight increase, but keep in mind that last week’s 4.59% was the the lowest recorded by the trade group since the survey began in 1972. The ever-so-slight increase would do little to a monthly mortgage payment.

The survey covers more than half of U.S. retail residential mortgage applications.
Readers, where do you see rates headed?

This is interesting to say the least.

New York City has launched a new program to immediately notify property owners when scammers try to steal their holdings with a phony deed or a bogus mortgage or lien.

The Finance Department will send the alarm by e-mail, text message or letter to any owner who has filled out a simple online form at nyc.gov/finance.

“It’s free and it’s a major step in our attack [on] this pervasive fraud,” Finance Commissioner David Frankel said.

“If you’re notified of an unauthorized transaction, immediately call 311 and the matter will be referred to the appropriate law enforcement agency.”

The new program comes 18 months after a Daily News reporter “stole” the Empire State Building, transferring the deed from the rightful owners to his own bogus corporation to illustrate how easy it is to commit deed and mortgage fraud.

The new deed was accepted and recorded by the city Register’s Office – no questions asked – even though the notary and witness listed were fake.

-David Baker
http://SayHalo.com

Getting a subprime, or non-conforming mortgage, just got a lot harder. Wells Fargo, the third-largest bank in the U.S., announced it is closing a division devoted to issuing what they call “non-prime” mortgages, car loans, and credit-card loans. The bank will no longer issue subprime loans and is eliminating 3,800 related jobs. Wells Fargo was one of the leading mortgage lenders during the last housing boom.

Just thought it was an interesting little news story that I should share with you all! Have a great weekend!
-David Baker
http://SayHalo.com

Saint Leonard, Maryland based Mortgage Lender Ralph Dawson reveals mortgage refinancing secrets at a new web site that is full of free reports, a home buying guide and free mortgage calculators. The site is designed to give Maryland residents all the facts about mortgage refinancing so they can make an educated decision when obtaining a mortgage.

Saint Leonard, MD– 07/05/2010 — It seems like everyone in Maryland is looking these historically low interest rates on mortgages and considering refinancing. Maybe you’re thinking about it yourself? After all, with rates as low as they are, the promise of lowering your monthly payments, sometimes significantly, is a great attraction for many homeowners.

But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don’t make a mistake that could wind up costing you big time.

“With refinancing your mortgage, Maryland residents have to be even more careful about shopping for the best loan,” says Ralph Dawson, a Southern Maryland based mortgage consultant. “Even the most attractive offer can wind up being a disaster if your core objectives are not being met.”

Dawson offers these tips when considering refinancing:

* You should get a significantly lower rate for refinancing to make sense. Don’t rush to refinance unless it’s truly worth your while. If you’re currently working with a mortgage lender, be assured that they’re bringing you the best offers out there that accomplishes your needs.

* Consolidating unsecured debt with a refinance loan can be a dangerous idea. Make sure it is part of an overall financial plan to reduce your monthly debt obligations while you begin to invest the savings toward your financial future.

* Your credit score counts… big time. If you’ve had credit problems in the past like a bankruptcy, it might make sense to wait a while for your credit score to recover before trying to refinance. Most lenders make it hard for people with less than perfect credit to get the best deals. But, again, if you choose to let an expert get involved in the process, they can often find loan options that most homeowners didn’t even know existed – which can save you thousands over the long haul.

Southern Maryland based mortgage expert Ralph Dawson specializes in providing mortgage information to Maryland residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

-David Baker
http://SayHalo.com

The FBI arrested more than one thousand people in a mortgage fraud crackdown last week. And though the government is doing what it can to crack down on fraud, consumers applying for a mortgage or looking for help avoiding foreclosure still need to be cautious. Kelli Grant, Senior Consumer Reporter for SmartMoney.com shares steps you can take to avoid getting caught up in a mortgage scam.

First thing is to not ignore red flags. Some behaviors and practices are red flags for all kinds of fraud, mortgage or otherwise. Ask anyone who calls you out of the blue to send information, instead of making a commitment or giving out personal information over the phone. Also steer clear of “limited-time only” offers where you must act immediately, or where you must pay by cashier’s check or wire transfer.

Shopping around is a smart idea. Terms can vary widely, so it’s hard to know what’s out of the ordinary if you haven’t shopped around. Ask questions about the fees involved, which terms will change over the life of the loan, and the total cost of borrowing. Check for complaints at the Better Business Bureau, and licenses at state regulatory agencies.

Always read before signing on the dotted line. Read over every document and don’t sign anything that has incorrect information or is incomplete. There shouldn’t be sections someone will fill in for you later. That would allow an unscrupulous lender to falsify information and potentially obtain a loan you can’t handle or with different terms than you agreed to.

If you’re asked to sign anything that transfers the title of your house to someone else, don’t do it without talking to your attorney first. That’s a major red flag.

Another form of mortgage fraud is inflated appraisals, so look for a good appraiser. Borrowers should check that the appraisal company hired works in the area where the home is located and is familiar with property values in the area. You can also appeal for a new appraisal if the first comes back with a value or details that don’t seem quite right, like comparable properties that are nowhere nearby or not similar at all.

-David Baker
http://SayHalo.com

Great article from Smart Money and CBS News.

WASHINGTON — The number of customers applying for mortgages jumped last week, a sign that the market could be reviving after dropping off sharply last month.

The Mortgage Bankers Association says overall applications were up nearly 18 percent from a week earlier. Applications to refinance home loans were up 21 percent to the highest level since May 2009. That’s because buyers have been taking advantage of near-record-low mortgage rates.

New mortgages taken out to purchase homes increased for the first time in six weeks, rising 7 percent. That’s an encouraging sign for the housing market, as applications had dropped off sharply when federal tax credits expired.

Copyright © 2010 The Associated Press. All rights reserved.

-David Baker
www.sayhalo.com

By Bob Pisani CNBC Reporter

Some good news from Fitch this morning on mortgage delinquencies: May Residential Mortgage Backed Securities (RMBS) delinquencies declined for the second straight month, following a steady four year increase. (RMBS are bonds backed by residential mortgages.)

Still, it is pretty staggering to look at the size of the delinquencies, which are defined as 30 days or more past due.

For subprime: 44.8 percent, down from 45.2 percent in April. But think about it: roughly 44.8 percent of subprime loans are in delinquency.

For Alt-A — borrowers with less than full documentation and lower credit scores (so called “Liar Loans”) — the numbers were almost as high: 33.9 percent, from 34.1 percent in April.

Still, at least it’s improving.

Here’s the bad news: Fitch cautions that “approximately 9 percent of performing Alt-A loans and 37 percent of performing subprime loans are modified and have a substantial risk of re-default.”

-David Baker
http://SayHalo.com