The Mortgage Insider Blog » Mortgage Insider Show http://feeds.rapidfeeds.com/?fid4ct=1774 Terri and I discuss on this episode of the Mortgage Insider Show mortgage rates, finish off last weeks discussion on 100 percent mortgage programs, and move on to charitable DPA programs.

Last Remaining 100 Percent Mortgage Programs

We discuss the two remaining programs are the ExpressPath program to buy Fannie Mae foreclosure properties and the USDA program which promotes home ownership in rural areas.

I focused my discussion on the merits and restrictions of both programs. Terri emphasized the deceptive nature of the ExpressPath website on the Fannie Mae website which is in our opinion very misleading in the way it funnels potential borrowers to a specific lender without any real disclosure.

Charitable Down Payment Assistance (DPA) Programs

Terri and I discuss the currently outlawed non-profit or charitable DPA programs that home builders and real estate agents are desperately trying to resurrect. The recent bailout bill when passed outlawed these DPA programs on the basis they have higher default rates than “regular” loan structures.

These DPA programs have been studied by the IRS, the GAO, and HUD and where recommended for termination many times only to incur the wrath of these two special interests (Realtors and Home Builders) who spend millions on campaign contributions so they can throw their weight around on issues just like this one.

Thanks for listening!

]]> http://backend.userland.com/rss RapidFeeds v0.1 -- http://www.rapidfeeds.com rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://themortgageinsider.net/images/podcast-image.jpg The Mortgage Insider Blog » Mortgage Insider Show http://feeds.rapidfeeds.com/?fid4ct=1774 100 Percent Mortgage - Charitable DPA Programs - MI Show For 01-03-09 <p>Terri and I discuss on this episode of the Mortgage Insider Show mortgage rates, finish off last weeks discussion on 100 percent mortgage programs, and move on to charitable DPA programs.</p> <h2>Last Remaining 100 Percent Mortgage Programs </h2> <p>We discuss the two remaining programs are the ExpressPath program to buy Fannie Mae foreclosure properties and the USDA program which promotes home ownership in rural areas.</p> <p>I focused my discussion on the merits and restrictions of both programs. Terri emphasized the deceptive nature of the ExpressPath website on the Fannie Mae website which is in our opinion very misleading in the way it funnels potential borrowers to a specific lender without any real disclosure.</p> <h2>Charitable Down Payment Assistance (DPA) Programs</h2> <p>Terri and I discuss the currently outlawed non-profit or charitable DPA programs that home builders and real estate agents are desperately trying to resurrect. The recent bailout bill when passed outlawed these DPA programs on the basis they have higher default rates than &#8220;regular&#8221; loan structures.</p> <p>These DPA programs have been studied by the IRS, the GAO, and HUD and where recommended for termination many times only to incur the wrath of these two special interests (Realtors and Home Builders) who spend millions on campaign contributions so they can throw their weight around on issues just like this one.</p> <p>Thanks for listening!</p> <p><a href="http://feedads.googleadservices.com/~a/hmoQAmIhCYJLI1F9xfsFPpJM0rE/a"><img src="http://feedads.googleadservices.com/~a/hmoQAmIhCYJLI1F9xfsFPpJM0rE/i" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=IYA5Wk6O"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=41" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=P9BmXcc9"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=P9BmXcc9" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=2EuOU83T"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=52" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=5ihq9IuU"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=5ihq9IuU" border="0"></img></a> </div><img src="http://feedproxy.google.com/~r/TheMortgageInsiderShow/~4/UJxzIsA5rpA" height="1" width="1"/> http://feeds.rapidfeeds.com/?iid4ct=3177992 rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://feeds.rapidfeeds.com/?iid4ct=3177992 Sat, 03 Jan 2009 19:08:42 EST Mortgage Rate Add-On - Zero Down Mortgages - Mortgage Market Shift - MI Show For 12-27-08 <p>Terri and I discuss on this episode of the Mortgage Insider Show mortgage rates, 100% loan programs and their lack of availability since the mortgage meltdown.</p> <h2>Mortgage Rate Add-On</h2> <p>Terri talks about &#8220;<a href="http://themortgageinsider.net/glossary/add-on/">add-on</a>&#8221; when it comes to quoting rates. Loan officers often refer to an &#8220;add on&#8221; as a &#8220;hit&#8221;. An add-on is a fee the lender requires based on some &#8220;increased risk&#8221; your loan application. That is <strong>if you were told the truth</strong>. </p> <p>In other words, you could pay this &#8220;add-on&#8221; as a one time fee in the form a fraction of a discount point, if the standard practice wasn&#8217;t to hide add-on costs from you. Loan officer can&#8217;t discuss add-ons with you without open this entire discussion of how rate quotes are manipulated which then opens the discussion into just how they get paid on &#8220;the back-end&#8221; via <a href="http://themortgageinsider.net/category/yield-spread-premium/">yield spread premiums</a>.</p> <h2>Zero Down Mortgage Programs</h2> <p>Terri and I disagree about the efficacy of zero down mortgage programs. I content that zero down mortgage programs are responsible for radically higher foreclosure rates as proved by default rates collect through the years. </p> <p>Terri lays the root of the problem at the feet of high pressure sales tactics, which is hard to disagree with&#8230;but I try. I contend the GSEs, Wall Street and the wholesale lenders should never have created mortgage programs that didn&#8217;t require at least a modest down payment.</p> <p>Barring a few programs, zero down programs are all gone. Sure, Fannie Mae offers one when you buy one of their foreclosed homes and the USDA still has a program to promote buying in rural areas, but past that the 100% financing options have all dried up.</p> <h2>Mortgage Market Shifted Away From Brokers</h2> <p>A new survey holds mortgage market share for mortgage brokers is at an all-time low. Terri and I discuss the reasons for this shift.</p> <p><a href="http://feedads.googleadservices.com/~a/IosTJLAhARvYePCGEjJ9pTiqFeg/a"><img src="http://feedads.googleadservices.com/~a/IosTJLAhARvYePCGEjJ9pTiqFeg/i" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=c2bJEOZm"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=41" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=vsxEtyok"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=vsxEtyok" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=nui5rj9p"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=52" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=nBch3Wr6"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=nBch3Wr6" border="0"></img></a> </div><img src="http://feedproxy.google.com/~r/TheMortgageInsiderShow/~4/ApfAVCYxdzY" height="1" width="1"/> http://feeds.rapidfeeds.com/?iid4ct=3128906 rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://feeds.rapidfeeds.com/?iid4ct=3128906 Sat, 27 Dec 2008 21:36:00 EST Wholesale Lender Rates - Episode 12-20-08 <p>Terri and I this week discuss the Fed dropping rates this week, the differences between wholesale lender rates versus a retail bank with a wholesale division, and answer the Reader Question of the Week.</p> <h2>Wholesale Lender Rates VS. Retail Bank Rates</h2> <p>Terri and I discuss the market volatility in the wholesale rate market this week. There are significant differences between a wholesale lender whose only business is providing funding sources to brokers versus a retail mega-bank that simply adds a broker distribution channel to extend their market share.</p> <h2>How To I Get the Best Rate?</h2> <p>Getting the best rate&#8230;is all about negotiating. As in all negotiations, the party with the most information wins. The same is true in the mortgage world.</p> <h2>Reader Question of the Week</h2> <p>We then answer the Reader Question of the Week…and this weeks question centered around a seller who got roped into raising the price of the home for the buyer to cover his closing costs&#8230;but then realizes before closing the buyer was getting $30,000 at closing. The seller thought something was fishy and decided not to close.</p> <p>We answer the question “Is raising the price of the house to help the buyer mortgage fraud?”</p> <p>Enjoy the Podcast!</p> <p><a href="http://feedads.googleadservices.com/~a/Ynyz_dcuXcGSerhC_4hjIU24nXw/a"><img src="http://feedads.googleadservices.com/~a/Ynyz_dcuXcGSerhC_4hjIU24nXw/i" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=AOwYxid5"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=41" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=bcE6bmYn"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=bcE6bmYn" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=lg5TOXQU"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=52" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=X6qmqTke"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=X6qmqTke" border="0"></img></a> </div><img src="http://feedproxy.google.com/~r/TheMortgageInsiderShow/~4/DYx2cwlShBw" height="1" width="1"/> http://feeds.rapidfeeds.com/?iid4ct=3107161 rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://feeds.rapidfeeds.com/?iid4ct=3107161 Sat, 20 Dec 2008 22:20:03 EST Housing Price Floor - Foreclosure Auction Bidding - Episode 12-12-08 <p>Terri and I this week discuss the the lowest rates we have ever seen, the acts of the Fed and the Treasury Department to artificially drive prime 30 year mortgage rates lower in the hopes of spurring home buying effectively putting a floor under real estate prices, and answer the Reader Question of the Week.</p> <h2>Creating a Housing Price Floor</h2> <p>Terri and I heatedly debate the Treasury Secretary, Hank Paulson&#8217;s idea of using TARP money to buy prime credit Fannie Mae and Freddie Mac mortgage backed securities to manipulate the 30 year fixed mortgage rate to supposedly trigger home buying which is designed to put a floor under housing prices.</p> <p>In the end, Terri and I agree this plan is ridiculous and typifies the flailing attempts our politicians and technocrats feel they must try. They have a need to do something&#8230;anything&#8230;even if it&#8217;s wrong.</p> <p>It&#8217;s just to me surprising how often plans created by politicians and technocrats always manage to put billions of dollars in corporate coffers and rarely lands in the hands of those in need.</p> <h2>Foreclosure Auction Bidding</h2> <p>We then answer the Reader Question of the Week&#8230;a new segment for the Mortgage Insider Show&#8230;and this weeks question centered around a foreclosure victim bidding at their own foreclosure auction.</p> <p>We answer the question &#8220;Is it possible to buy your house back cheaper at auction?&#8221;</p> <p>The short answer is &#8220;Yes, it is&#8221;&#8230;the longer answer is more interesting and telling in that even though it is theoretically possible it&#8217;s highly unlikely.</p> <p>In either case, it would take a lot of cash&#8230;a commodity foreclosure victim rarely possess.</p> <p>Enjoy!</p> <p><a href="http://feedads.googleadservices.com/~a/GZYxml8deDAzlu5oBIKZ7dHY8wE/a"><img src="http://feedads.googleadservices.com/~a/GZYxml8deDAzlu5oBIKZ7dHY8wE/i" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=1Xjk7udy"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=41" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=7oIJAb2F"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=7oIJAb2F" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=urWECt7C"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=52" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=2tT6R6bW"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=2tT6R6bW" border="0"></img></a> </div><img src="http://feedproxy.google.com/~r/TheMortgageInsiderShow/~4/Wtx4fIYmxRw" height="1" width="1"/> http://feeds.rapidfeeds.com/?iid4ct=3043049 rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://feeds.rapidfeeds.com/?iid4ct=3043049 Sat, 13 Dec 2008 18:35:31 EST Delinquency Report - Fun Fred Thompson - Podcast For 12-06-08 <p>Terri and I this week discuss the Mortgage Banker Association (MBA) delinquency and foreclosure report which pegged <strong>the delinquency rate for the third quarter of 2008 at 6.99%.</strong> This figure is up for both year-over-year and quarter-over-quarter calculations.</p> <p>Delinquency is defined as a borrower who is at least 30 days behind on the mortgage payment but not yet in any stage of foreclosure.</p> <p>The <a href="http://www.mortgagebankers.org/NewsandMedia/PressCenter/66626.htm">MBA report </a>also stated the foreclosure number at <strong>1.07% of households are in some stage of foreclosure</strong>. This number is up year-over-year, but down slightly quarter-over-quarter&#8230;a single ray of hope in otherwise dismal report.</p> <p>This is the same report the mainstream media used to pronounce &#8220;10% of American Household Delinquent or in Foreclosure&#8221;&#8230;or the more sensational headline, &#8220;$1 Trillion Worth of Home Loans Delinquent or in Default&#8221;&#8230;</p> <p>This is misleading at best&#8230;sure the numbers are &#8220;bad&#8221;, <em><strong>but are they getting worse?</strong></em> </p> <p>No&#8230;they are getting better! </p> <p>Will they stay on a path of &#8220;getting better&#8221;&#8230;who knows, but they are better now&#8230;and that should be the focus of the report.</p> <p>Terri and I discuss the delinquency report, loan modifications, and end with some <strong>funny audio from Fred Thompson </strong>on Washington&#8217;s bungling of the financial crisis&#8230;it should make you laugh&#8230;</p> <p>Good Luck!</p> <p><a href="http://feedads.googleadservices.com/~a/V863H-P3Pe-aP0GV5-8WigZzMPA/a"><img src="http://feedads.googleadservices.com/~a/V863H-P3Pe-aP0GV5-8WigZzMPA/i" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=VdBxiXmh"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=41" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=S50tGL0i"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=S50tGL0i" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=v41zc9Fl"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?d=52" border="0"></img></a> <a href="http://feedproxy.google.com/~f/TheMortgageInsiderShow?a=jZFdthrl"><img src="http://feedproxy.google.com/~f/TheMortgageInsiderShow?i=jZFdthrl" border="0"></img></a> </div><img src="http://feedproxy.google.com/~r/TheMortgageInsiderShow/~4/8Tytl0x7O2g" height="1" width="1"/> http://feeds.rapidfeeds.com/?iid4ct=3004234 rkblake@themortgageinsider.net (Mortgage Insider Media LLC) http://feeds.rapidfeeds.com/?iid4ct=3004234 Sat, 06 Dec 2008 19:57:58 EST