Five-year mortgage rates have surged past the 5% threshold as geopolitical tensions tied to a major international conflict continue to ripple through global financial markets. The sharp rise in borrowing costs has created new challenges for homeowners and prospective buyers, underscoring how quickly geopolitical developments can influence domestic housing affordability.
A recent strategy involving mortgage-backed securities issued by Fannie Mae and Freddie Mac produced a brief decline in mortgage rates, but the improvement proved short-lived as questions about implementation dampened market momentum. The episode underscores how sensitive mortgage pricing is to both policy signals and execution clarity in a housing market already facing affordability strain.
A proposed rule from the U.S. Department of Housing and Urban Development is drawing intense concern from housing advocates, public housing authorities, and families living in mixed-status households, who argue that the change could destabilize thousands of families and increase the risk of homelessness. The proposal would tighten eligibility standards for federally assisted housing in a way that critics believe would effectively bar households containing any ineligible members from receiving rental assistance, even if other members qualify.
Fannie Mae has announced a tender offer for certain outstanding Connecticut Avenue Securities (CAS) notes, signaling another step in its ongoing effort to actively manage credit risk transfer exposure and optimize its capital structure. The move reflects the government-sponsored enterprise’s continued use of capital markets tools to reduce retained credit risk while maintaining flexibility in its funding strategy.
The U.S. House of Representatives has approved a sweeping bipartisan housing package aimed at increasing housing supply, easing affordability pressures, and updating key federal housing programs. The vote reflects growing agreement across party lines that rising housing costs have become a national economic issue requiring federal action, not just a local or regional concern.
Federal inspectors are taking the United States Treasury Department to task for not doing enough to increase participation in the government’s Home Affordable Modification Program (HAMP) which helps keep homeowners out of foreclosure. Borrowers having trouble paying their monthly payment can apply for a HAMP for a loan modification that lowers their monthly payment. So far, 1.5 million homeowners have received HAMP modifications, about half as many as originally predicted by the Treasury. The department has repeatedly extended the program’s initial December 2013 deadline; HAMP iis now scheduled to expire in December 2016.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
On Friday, April 24, 2015 HUD announced some significant changes to its Distressed Asset Stabilization Program (DASP). These changes were made in an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar program.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
While driving to work virtually every day I hear numerous advertisements for borrowers to apply for or to apply for a mortgage modification. The general public and mortgage professionals are unaware of the rules in order to obtain a Home Affordable Modification Program mortgage loan.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.