fannie mae
Fannie Mae Avoids Q1 Bailout
Sunday, May 13th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Taxpayers are getting a little breather as Fannie Mae turned a profit at $3.1 billion, passing the $2.8 billion required Treasury payment. This is the first time since going into conservatorship in 2008 that the GSE hasn’t required a draw.
Fannie’s CFO, Susan McFarland, is anticipating continued strong performance results. “Our credit performance is headed in the right direction with significant improvement since 2009, and we expect that the reserves we have built to cover future credit losses on the pre-2009 legacy book of business have reached their peak.” Fannie lowered their reserve for credit losses by $2.3 billion, and the rate of serious delinquencies continues to drop. As for new mortgages? Tighter restrictions such as a 763 FICO score and loan-to-value ratio of 70% ups the screening process.
Read the full article here.
Incentive Payments to Mortgage Investors Could Triple
Monday, March 26th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
I just got this article from Jerry Kayser, my broker at Sharp Concepts Realty and one of my SREC coaches, and I had to pass it along to you – this is really big news!
Right now, Freddie Mac and Fannie Mae own 3.3 million of the 11.1 million mortgages where borrowers own more than the house is worth. Worried about the unintended, secondary consequence of homeowners entering into strategic default to get a principle reduction, the GSEs and their regulator, the Federal Housing Finance Agency, have long avoided any sort of principle reduction. New reports are showing that, in actuality, such a move could work for the GSEs under a new version of HAMP – the Home Affordable Modification program. The Treasury said it would “triple incentive payments to investors who allow principle reduction in HAMP workouts.” Freddie Mac’s CEO, Ed Haldeman, said, “The Treasury sweetened the program and tremendously increased the incentive payments in their offer to us. We will reevaluate that to see what may be in our economic best interest. If there are very large incentive payments — which could be 50% of what you could write down — it may be in our economic self-interest to participate in that.”
Bottom line: the Treasury is willing to triple incentive payments to investors, now between 18-63% to the investor behind a loan for a principle write down, instead of 6-21%. For investors, that’s tremendous news.
To read the entire article, click here.
Closing Costs on the Rise
Wednesday, July 27th, 2011 | Real Estate Investing | No Comments
Origination fees. Title fees. Appraisals. Title insurance. Survey charges. Even postage. All these fees add up to the total cost of homeownership for the potential buyer. While we know those additional costs are there, did you know they are on the rise?
On average, the origination fees (underwriting, processing) from lenders have increased over 10% from last year, up to an average of over $1,500. Third party fees (appraisals, title, postage) have increased nearly 8%, to an average of nearly $2,500. These fees don’t even include property taxes, recording fees and homeowner insurance.
So what’s to blame for this increase? Lenders are saying it’s due to the more tightly controlled mortgage regulations from the government. The strict regulations means more staffing and more resources, which is a cost that is passed along to the borrower. There are now extra steps that the lenders have to follow in the process, more forms to fill out. Lenders are being careful not to do anything that would draw attention from Freddie Mac and Fannie Mae, who now have no tolerance for missing documents or paperwork errors.
Are any of these fees negotiable? Some are and some are not. Lender fees and title insurance rates are certainly negotiable, so it pays to shop around. While things like appraisals and credit report fees are not. It’s up to the consumer to ask the right questions and obtain a GFE – good faith estimate – from at least 3 mortgage brokers and 3 banks.
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It Pays To Be A Freddie, Fannie Exec
Monday, April 4th, 2011 | Bank owned, Foreclosures | No Comments
Did you see the latest report on the salaries paid to the heads of Freddie Mac and Fannie Mae in 2009 and 2010? You’re not going to believe this one.
“The heads of bailed-out mortgage finance giants Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) were paid fat salaries without proper written procedures or analysis, according to a report published by the Inspector General of the Federal Housing Finance Agency (FHFA-OIG). Also, the housing regulator Federal Housing Finance Agency (FHFA) has not considered the factors that might have possibly resulted in reduced executive compensation costs, the review report said.
The heads of Fannie Mae and Freddie Mac were paid a total of $17.1 million in 2009 and 2010 — the two full years of government ownership. The top six executives at the housing giants were paid $35.4 million over the two years, according to the report that was posted on the agency’s website.
Read more here.
Watch the Replay: Investors Coalition Election Analysis and Legislative Briefing Webinar
Friday, November 5th, 2010 | Real Estate Investing, Real estate short sales, Short Sales | No Comments
Good Morning,
Jeff Watson did it again. Last night’s webinar was historic. The updates on the election results and the impact on the lobbying efforts of the Investors Coalition he and John Grant shared were huge. It’s proof that the fight to get our voices as real estate investors heard is definitely paying off. We have a seat at the table, but we have to stay focused and push for our goals, and we need your continued support.
If you were not able to join the webinar last night, you can view a replay at www.investorscoalitioncampaign.com.
Here are some of the things that were covered on the call:
- Impact of 2010 Elections on Real Estate Investors
- Update on Short Sale Flipping Issues at Freddie Mac
- Update on GSE Reform, SAFE Act and Lender Issues
- Discussion of NEW Investor Coalition White Paper – Our Briefing Presented to Congress Proposing Various Legislative and Regulatory Changes to Make It Easier to Buy and Sell Homes
- How You Can Support This Effort
It is very important that you take the time to hear what’s happening, so log on to www.investorscoalitioncampaign.com now – it directly impacts your future as a real estate investor.
Peace,
Josh
Webinar Starting Soon: Investors Coalition Election Analysis & Legislative Briefing
Thursday, November 4th, 2010 | Real Estate Investing, Real estate short sales, Short Sales | No Comments
Josh here with a super important reminder. You don’t have much time left to join this very important Webinar that Jeff Watson is hosting TONIGHT at 8pm Eastern. Jeff is going to share the latest information and analysis on the recent 2010 election AND present a briefing on the latest lobbying efforts of the Investors Coalition.
Topics will include:
- Impact of 2010 Elections on Real Estate Investors
- Update on Short Sale Flipping Issues at Freddie Mac
- Update on GSE Reform, SAFE Act and Lender Issues
- Discussion of NEW Investor Coalition White Paper – Our Briefing Presented to Congress Proposing Various Legislative and Regulatory Changes to Make It Easier to Buy and Sell Homes
- How You Can Support This Effort
This is HUGE. This is information critical to your business that you cannot get anywhere else.
Spaces are very limited, so register immediately!
See you on the call,
Josh
IMPORTANT: Investors Coalition Election Analysis and Legislative Briefing
Wednesday, November 3rd, 2010 | Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales, Wholesale properties | No Comments
Good Morning, A couple of months ago we shared some very important information with you about GSE Reform and the potential impact on all real estate investors. Jeff Watson let you know that he is working with a lobbyist to get our voice heard in Washington D.C.
Well, our efforts are paying off and now that the elections are over, change is imminent. In fact, they already have a meeting scheduled for Nov. 9th at 2:00 p.m. with the Congressional staff that are drafting the Fannie/Freddie reform bill. At this meeting they will present the white paper they created. Jeff is hosting a follow-up webinar with his direct contact in Washington D.C. to share the latest progress with you.
Drop whatever you’re doing and mark your calendars for a super important webinar tomorrow night, Nov. 4th, 2010 at 8pm Eastern.
Click here to reserve your spot.
Jeff is going to share the latest information and analysis on the recent 2010 election AND a briefing on the latest lobbying efforts of the Investors Coalition. This is information critical to your business that you cannot get anywhere else.
Topics will include:
• Impact of 2010 Elections on Real Estate Investors
• Update on Short Sale Flipping Issues at Freddie Mac
• Update on GSE Reform, SAFE Act, and Lender Issues
• Discussion of NEW Investor Coalition White Paper – Our Briefing Presented to Congress Proposing Various Legislative and Regulatory Changes to Make It Easier to Buy and Sell Homes
• How You Can Support This Effort
Spaces will fill up very quickly, so make sure you register for the webinar now!
See you on the webinar,
Josh Cantwell and Jeff Watson
P.S. A special thank you to everyone who supported the GSE Reform efforts through their very generous donations, shown below. Your efforts ARE making a difference, and the voice of real estate investors will be heard!
Moe - Lomita, California
Francine - Bowie, Maryland
Miles - West Hills, California
Godric - South Richmond Hill, New York
Bob - Fort Lauderdale, Florida
Raymond - Mitchellville, Maryland
Roger - Castle Rock, Colorado
David - Charleston, South Carolina
Yvonne - Rockwall, Texas
Sharon - Columbiana, Alabama
Larry - Cape Girardeau, Missouri
Chelle - Phoenix, Arizona
Samuel - National City, California
Doug - Plantation, Florida
Lawrence - Fairfax, Virginia
Bruce - St George, Utah
Paula - Edmonds, Washington
Keenan - Orlando, Florida
Hilda - Long Beach, California
Tim - Ft. Lauderdale, Florida
Steve - Lawrenceville, Georgia
Ron - Louisville, Kentucky
Timothy - Naples, Florida
John - McAllen, Texas
Mark - Naples, Florida
Pamela - Roscoe, Illinois
Maria - Tucson, Arizona
Susan - Los Angeles, California
Manny - Miami, Florida
Daniel - Charlotte, North Carolina
Shaina - Winter Park, Florida
Julio - Fullerton, California
Carol - Glendale, California
Jeff - Jacksonville, Florida
David - Elmhurst, Illinois
Richard - Livingston, Louisiana
Tony - Festus, Missouri
Fabiano – Austin, Texas
Steven - Columbiaville, Michigan
Darlene - Sterling Hts, Michigan
Michael - Chicago, Illinois
Michael - Uxbridge, Massachusetts
Karen - Lancaster, Massachusetts
Freddie CEO: Mortgage forbearance is preferable to foreclosure
Tuesday, September 28th, 2010 | Foreclosures, Pre-foreclosure, Real estate short sales, Short Sales | No Comments
CEO Charles E. Haldeman Jr. said that foreclosure is the least attractive option from a secondary markets perspective and considers forbearance a viable option to keeping seriously delinquent borrowers in their homes.
A full transcript of that conversation is in the October issue of HousingWire magazine.
Haldeman said that forbearance, as an option in loss mitigation, is not currently as popular as mortgage modifications or even short sales, but still one that Freddie considers highly useful.
Fannie Mae Selling Foreclosed Homes with Subprime Terms
Wednesday, September 15th, 2010 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Through their new HomePath program, troubled GSE giant Fannie Mae is offering their foreclosed homes for sale with as little as 3% down. What’s more, that 3% can be a gift from a family member of third party, or a loan from a non-profit, state or local government. Doesn’t this remind you of the “deals” that got us in this housing mess in the first place? There’s a difference. To qualify for those terms, a purchaser must choose one of Fannie Mae’s foreclosed homes, and then buy it “as is.” If the ideal home is found and renovations are needed, a buyer may qualify for the HomePath Renovation Mortgage, which will fund both the home purchase and minor renovations. This is the only time an appraisal would be required. Here’s what a potential buyer can expect, otherwise:
- Low down-payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
- You may qualify even if your credit is less than perfect, as low as 660, when most lenders want a minimum of 700.
- You can qualify as an investor or owner-occupant.
- Down payment must be at least 3% for an owner-occupant, but it must be funded by your own savings or by a gift, a grant or a loan from an employer, a nonprofit organization, or a state or local government. Investors must come up with 10% down.
- No appraisal is required.
- No mortgage insurance is required, but the terms of the loan may not be as favorable.
Final Replay Of Watson’s Historic GSE Reform Update
Sunday, September 12th, 2010 | Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales | No Comments
Good Morning,
I’m looking forward to a nice Sunday relaxing with my family, and maybe catching a football game, too! I wanted to make sure you knew about tonight’s special replay of Jeff Watson’s historic GSE reform update webinar. It starts at 8:30pm Eastern, 5:30 Pacific.
Click here to register.
Thursday’s webinar was full to capacity – in fact we had to open up extra spaces to accommodate everyone! So don’t wait to the last minute to register, do it now.
What they have to share directly impacts you as a real estate investor and as a homeowner, as a result of closed-door meetings happening in Washington D.C. The decisions will directly impact how we buy and sell real estate – it will change forever.
Jeff and John are on the inside and are active advocates for the rights of real estate investors. Get on this call to hear their incredible insights.
Again, this is your last chance. The call is tonight at 8:30pm Eastern, 5:30pm Pacific.
Have a great Sunday,
Josh
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