Santa Fe Food
Santa Fe Blog
The Santa Fe Life Blog will is a place to keep informed of the comings and goings of all things Santa Fe.

Investors Not Happy With 4-Loan Limit

Many real estate investors, including myself, are not happy about the new Fannie Mae-Freddie Mac policy that limits to four the number of real estate loans that can be held by a single person.

The rule, which took effect Dec. 1, prohibits an investor from obtaining even a fifth mortgage no matter how much money is put down or how much income documentation is provided. It offers no exceptions for assets or history of success as a real estate investor.

My feeling is that the regulation pendulum has swung too far and that actions like this will only continue to put a damper on the economic recovery. I have never been a fan of policies that do not consider all factors.

As always, where there is a will, there is a way. Some investors are trying to work around the rule by partnering with other investors to either buy in cash or use their eligibility to borrow. Also, portfolio lenders who will ultimately hold the paper and not sell it on the secondary market will become increasingly important to the investor.

Labels: , ,

Mortgage Applications Up as Interest Rates Drop

Lower mortgage rates encouraged more applications, pushing the Mortgage Bankers Association applications index up 11.9 percent on an adjusted basis from 379.9 the previous week to 425 last week.

On an unadjusted basis, the index increased 10.5 percent compared with the previous week and was down 40 percent compared with the same week a year ago.

Refinances increased 16.1 percent while conventional purchases rose 6.5 percent and purchases using government loans jumped 15.3 percent.According to the association, 30-year fixed-rate mortgages decreased to 6.24 percent from 6.47 percent; 15-year fixed-rate mortgages decreased to 5.90 percent from 6.14 percent; 1-year ARMs decreased to 6.18 percent from 6.86 percent.

Source: Mortgage Bankers Association (11/13/2008)

Labels: , ,

Citigroup Plans to Rescue 500,000 Home Owners

Citigroup Inc. announced Monday that it is putting a moratorium on most foreclosures as it reaches out to 500,000 home owners who are not currently behind on their mortgages but who are deemed to be a potential risk.

The company will assign 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan.

Citigroup reported losses in the last four quarters. Monday’s action is designed to stem the flow of red ink.

"Typically the lender loses the most money when a house goes into foreclosure," says Barry Zigas, director of housing policy at the Consumer Federation of America.

Source: The Associated Press, Sara Lepro (11/10/08)

Labels: , ,

Steve Hardy
Cell: 505.670.5604
Direct Fax: 866.466.4019
Copyright, All Rights Reserved |Website design: Aspen Technology Consultants, LLC
Residential, Land, Commercial
& Development Opportunities