Insider Lending Up Despite Credit Crunch

March 24, 2009
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This may be a time for credit crunch and bailouts but banks all over the United States still practice insider lending with an estimated $41 billion in loans for bank executives, directors and other insiders. These insider loans can take the form of home mortgages or multimillion credit lines. While considered legal, insider lending has a shield of secrecy prompting fears that those in charge of overseeing bank management and protecting the shareholders might have clouded or influenced judgments. The surge in insider lending came after the freezing of the credit market forcing the government to approve bailouts.

On top of the list of banks with noticeable insider lending is JPMorgan…

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Filed Under: Economy Crisis, Lenders

Freddie Mac CEO Steps Down

March 17, 2009
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Freddie Mac continues to suffer from mortgage losses and is eyeing to seek an additional aid of $35 billion from the government. To make matters worse, Freddie Mac CEO David Moffett has resigned effective March this year. The 57-year old Moffett, who used to be US Bancorp vice chairman, has been in the helm of Freddie Mac for six months since the government took control of the mortgage company last September. FTN Financial debt analyst Jim Vogel said the resignation of someone who is only six month in office is never a positive sign. Moffett said he wanted to return to the financial services sector.

The board, along wit the Federal…

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Filed Under: Economy Crisis, Lenders, Real Estate Fraud

Drop In California Mortgage Default Notice

March 13, 2009
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Amendments in the State of California’s foreclosure process resulted, for the first time in three years, to a reduction in the number of mortgage default notices filed versus homeowners. A total of 94,240 default notices on homes between July and September have been recorded at the mortgage services. This was a 29.9% increase compared to the 72,571 notice of defaults during the third quarter of 2007 but a 22.5% reduction compared to the 121,673 defaults for the second quarter of this year.

An average 40,000 default filings have been recorded for each month between March to August. This dropped to 14,995 as the new state law on foreclosures took effect last…

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Filed Under: Lenders, Mortgages

Deduction Rate Rollback For Wealthy Tax Payers Slammed

March 9, 2009
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Realtors, mortgage lenders and homebuilders slammed the Obama administration’s proposal to roll back the itemized deduction rate for wealthy taxpayers. This includes deductions that can be claimed by homeowners on their mortgage interest payments as well as other homeownership-associated expenses. The administration said capping by 28% the itemized deductions for wealthy families and individuals would raise $318 billion in 10 years time. This can result to lower health care costs and expanded health insurance coverage.

The proposed changes, which will only take effect in 2011, will apply only to families with earnings over $250,000 and individuals with earnings of over $200,000. This number is in fact less than 4% of taxpayers…

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Filed Under: Economy Crisis, Lenders, Realtors

Unemployed To Get Mortgage Break Brom Citi

March 9, 2009
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Here’s a silver lining for unemployed homeowners who have accounts with CitiMortgage. The company is willing to help workers who have recently become unemployed by temporarily reducing their home mortgages to $500 a month. CitiMortgage president and CEO Sanjiv Das said this amount is relatively less than the price of a one-bedroom rental. CitiMortgage is Citigroup’s housing lender arm. The bank has received $45 billion in federal aid and has lost 36% of its ownership in favor of the government.

Borrowers will be covered by the program for 90 days after the submission of documents which will prove they have received their state unemployment benefits. Depending on individual situations, homeowners can…

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Filed Under: Economy Crisis, Lenders, Mortgages

Renters Now Checking Landlords’ Finances

March 5, 2009
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The recession is turning out to be a fodder for everything weird and unsought of before. There was a time when the landlords strictly scrutinized each rental application to make sure the applicant will be able to pay for his rental. With the massive foreclosure incident, thing shave changed and today, it is the landlord who is the subject of careful scrutiny by the prospective tenants. Nowadays, it is the prospective tenants who ask for financial statements from the landlords in a bid to ensure they will not be at risk of losing their space in case their tenants are not up-to-date with their mortgages.

Tenants are now looking for buildings…

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Filed Under: Economy Crisis, Lenders

$15.2M Gov’t. Fund Needed To Revive Fannie Mae

March 3, 2009
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If you are still not sure about the severity of the economic crisis that the country is experiencing then this might help you believe it once and for all. When even a giant mortgage finance provider like Fannie Mae needs to be bailed out by the government then something must be seriously wrong. Unfortunately it is true and Fannie does need $15.2 billion from the government if it is to make up for the losses caused by the housing industry slump.

Fannie Mae has reported $25.2 billion worth of losses in the fourth quarter of last year which is equivalent to $4.47 per share. This is might big considering that it…

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Filed Under: Economy Crisis, Lenders, Real Estate Fraud

Federal Housing Administration (FHA) Suspends Ban

February 26, 2009
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For investors who are currently experiencing a hard time with their finances due to the disturbing economic status, the Federal Housing Administration or FHA can be your knight in shining armor. The financing scheme FHA offers is good enough to fix things up to avoid total loss of project investments.

The temporary suspension of the ban against insuring loans on incomplete projects would mean a great deal since FHA offers cheap fixed rate. Well, a 35-year maximum would allow buyers and refinancers of establishments to revive and rebuild what has almost been shattered.

Following FHA’s requirements like documenting and presenting other proofs of payments is relatively simple, yet gives the investors the…

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Filed Under: Economy Crisis, Lenders

Loan Extension Saves Real Estate Firm

February 18, 2009
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While some people are looking at this as bad news, real estate firm Forest City Ratner Companies consider it good news that it has obtained a two-year extension for its loan earmarked for its Atlantic Yards project in Brooklyn. On top of a string of lawsuits that the company is facing for allegedly causing the condemnation of too many properties to give way to its project, it is also bound to pay its $177 million Gramery Capital Corporation loan due this month.

It seems good fortune is still with Forest City as it has successfully struck a deal with Gramery to make a $15 million immediate payment while also committing to…

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Filed Under: Lenders, Real Estate Investment
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