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Have you refinanced yet?

Mortgage interest rates dropped again this week, hitting just 4.91 percent with 0.7 points (prepaid interest) for a 30-year fixed-rate loan. That is so low it almost demands a rush to the refinancing table. (Then again, bank deposits are paying less than 2 percent, so maybe rates aren't that low, after all.)

By Elizabeth Razzi | November 12, 2009; 12:00 PM ET | Comments (1)

Fannie Mae to allow some troubled owners to rent back

Fannie mae announced a new program Thursday that will allow some homeowners facing foreclosure to hand the deed back to their lender but remain in the home as a renter. The idea behind their new "Deed for Lease Program" is that allowing rent-backs will minimize family displacement and stanch the deterioration of neighborhoods plagued by vacant foreclosures, according to Fannie's announcement.

By Elizabeth Razzi | November 5, 2009; 02:39 PM ET | Comments (3)

Refinancers save $3 billion in a year

People who refinanced during the July-September quarter cut their interest rate by an average of 1.1 percentage point, and they stand to save $3 billion, all together, over the first 12 months of their new loan, according to Freddie Mac. Another telling statistic: The median appreciation of the refinanced property was 0 percent during the third quarter. Zero.

By Elizabeth Razzi | November 3, 2009; 06:00 AM ET | Comments (0)

Solar Winners, Chat Day and The Weekend Poll

A couple of early winners have been announced at the Solar Decathlon still underway through this weekend on the National Mall. So far, Team California has taken first place for architecture and communications; the University of Louisiana at Lafayette has taken first place for market viability, and the University of Minnesota has taken first place for lighting design. The rest of the winners will be announced Friday.

By Elizabeth Razzi | October 16, 2009; 06:00 AM ET | Comments (0)

Get Free Alerts if Someone Messes With Your Deed

First American CoreLogic's ePropertyWatch service allows users to set up a password-protected account and receive e-mail updates reporting recent home sales, foreclosures and, most important, the registration of any changes to public records reflecting your ownership of the home. Such changes could include liens or deed transfers filed without you knowing about it.

By Elizabeth Razzi | October 15, 2009; 06:00 AM ET | Comments (4)

What's the Mortgage-Interest Deduction for That Yacht?

The $17 admission fee to the giant sailboat show in Annapolis last weekend was thrifty entertainment, allowing me to spend the afternoon wandering below deck on yachts worth more than my house. The really tricked-out ones had all sorts of sea-worthy goodies like radar and automated sail-trimming gear--most of which is way beyond my limited knowledge of sailing. Below deck, some of these yachts were trimmed out with granite countertops, dishwashers, full-size showers, large flat-screen TVs and even a washer and dryer. These boats also come with a mortgage interest deduction.

By Elizabeth Razzi | October 13, 2009; 06:00 AM ET | Comments (3)

A Flood of Solar Events and The Weekend Poll

The 19th Annual Metro Washington, D.C., Tour of Solar Homes and Buildings is scheduled for this weekend, Oct. 3-5. And the National Mall is in the process of turning into one solar-powered housing development.

By Elizabeth Razzi | October 2, 2009; 06:00 AM ET | Comments (0)

Pickled Hard-Boiled Egg Mortgages? The Weekend Poll

Chances of Congress requiring lenders to include "plain vanilla" versions on their menus of mortgages and other loans seemingly died this week. House Financial Services Committee Chairman Barney Frank circulated a memo to Democrats on the Committee listing changes he intended to make in the bill that would establish a Consumer Financial Protection Agency. "Financial institutions will not be required to offer plain vanilla products and services and CFPA will not have authority to approve or change business plans," the memo said. But it looks like Frank had already taken vanilla off the menu back in July.

By Elizabeth Razzi | September 25, 2009; 06:00 AM ET | Comments (0)

Lousy Loan Offers Still Coming by Mail

If anyone thinks mortgage brokers have been chastened by the financial calamity we've all been through the past few years, think harder. My husband and I received a particularly shoddy refinancing offer just a few weeks ago.

By Elizabeth Razzi | September 22, 2009; 06:00 AM ET | Comments (4)

Chat Plus: Questioning the Appraisal

We had a particularly active online chat on Friday. This was one of the questions I couldn't get to within that hour. Next chat is scheduled for Friday, Oct. 2. Outside Annapolis: Hello, and thank you for the chats! I am desperate for some advice right now. It's another of those "appraisal came in too low" type questions, but with a twist. I tore down the old house I'd been living in for 10+ years, and the new house is under construction. I guess I should have anticipated cost overruns, but I was naive.

By Elizabeth Razzi | September 21, 2009; 06:00 AM ET | Comments (0)

Chat Plus: Borrow From Condo A for Condo B

Washington, D.C.:I have two homes, a condo in D.C, and a condo in Florida, which I rent out at a loss. I would like to refinance the Florida condo but cannot because it's a second home and "under water." Could I take out a home equity loan on my D.C. condo (where I have lots of equity) and pay off the Florida place?

By Elizabeth Razzi | September 8, 2009; 06:00 AM ET | Comments (0)

We're Messing Up the Mortgage Interest Deduction

Everybody's confused about how to claim the proper tax deduction for mortgage interest, according to a new report to Congress from the U.S. Government Accountability Office. The fog enshrouds taxpayers, the IRS, paid preparers and the authors of tax-return software writers alike.

By Elizabeth Razzi | September 1, 2009; 09:00 AM ET | Comments (1)

Appraisers Say 'Don't Blame Us'

I had a cup of coffee the other morning with someone at the heart of the appraisal fuss that has prevailed this summer. And he's sick of his industry getting blamed for low appraisals that kill deals. "We are really tired of getting slammed," he said. "Show me the data," said Don Blanchard, chief compliance officer and deputy general counsel for Lender Processing Services, which owns LSI, one of the nation's biggest appraisal management companies.

By Elizabeth Razzi | August 26, 2009; 06:00 AM ET | Comments (3)

Chat Plus: Pay Off the Second Mortgage or Save the Cash?

Here's a question remaining from last week's Real Estate live chat: Northern Virginia: We bought our home in 2006 for $775,000. While we are in good standing with our mortgage, we are "underwater." (Homes of similar age/size/condition in our area are currently selling for about $600,000-$650,000). We want to relocate out of the area but do not have the funds to makeup the difference. We assume it will take three to five years for us to break even, maybe more. We determined that in three years, we could pay down our second mortgage enough to account for the current drop in value. Do you think this is our best option to accelerate our ability to move?

By Elizabeth Razzi | August 25, 2009; 06:00 AM ET | Comments (1)

Jobs, Foreclosures and The Weekend Poll

We have seriously bad news out of the Mortgage Bankers Association. More than 9 percent of all mortgage loans outstanding on one- to four-unit homes were at least one month behind on payments during the second quarter. That number, which is adjusted to reflect seasonal trends, broke the previous quarter's record level of delinquencies, and it doesn't even include people already in the foreclosure process. Count them in, and 13.6 percent (not seasonally adjusted) of loans are in trouble. That's the most MBA has recorded since they started keeping track in 1972.

By Elizabeth Razzi | August 21, 2009; 06:00 AM ET | Comments (3)

Wells Fargo Being Sued Over Home Equity Loans

I can't muster much excitement over the news, reported by the Associated Press, that a customer of Wells Fargo has filed suit in an Illinois court against the lender, claiming it improperly reduced his home equity line of credit.

By Elizabeth Razzi | August 20, 2009; 10:19 AM ET | Comments (4)

Price Increases Coming in Foreclosure Hot Spots?

Another report based on Metropolitan Regional Information Systems data says the supply of for-sale homes in the Washington area fell in July, to 5.3 months' worth. "That level of supply is considered at or below equilibrium," according to the folks at Metrostudy, a consultant hired by MRIS, the local multiple listings service. And because supply is below the six-month threshold that marks a balanced market, they expected prices to rise soon. However, not everyone agrees.

By Elizabeth Razzi | August 12, 2009; 06:00 AM ET | Comments (14)

Choosing Bankruptcy to Avoid Foreclosure

Even though you cannot get rid of your mortgage payments through bankruptcy, about one in five people who went through mandatory pre-bankruptcy credit counseling said they were doing so to avoid losing their homes to foreclosure, according to Consumer Credit Counseling Services of Greater Atlanta. That organization provides counseling throughout the United States.

By Elizabeth Razzi | August 6, 2009; 06:00 AM ET | Comments (1)

Freddie Mac's Having a Foreclosure Sale

Freddie Mac just sweetened the deal for people willing to make a home out of one of its foreclosures. Through Oct. 30, Freddie is offering to pay a buyer's closing costs, up to 3.5 percent of the sales price. And as part of Freddie's "Smart Buy" program, it is throwing in a free two-year warranty on the home's electrical, plumbing, air conditioning and heating systems, plus major appliances such as water heaters, stoves, washers and dryers, dishwashers, and refrigerators.

By Elizabeth Razzi | July 22, 2009; 06:00 AM ET | Comments (2)

Appraisal Quality Getting More Attention

Will it appraise? Low-quality appraisals done by appraisers parachuting in from a different market are among the top complaints this summer. Freddie Mac recently issued a reminder to lenders that it's their responsibility to make sure that appraisals are performed by people who are well-qualified and familiar with the local market.

By Elizabeth Razzi | July 16, 2009; 06:00 AM ET | Comments (6)

Chat Plus: Do You Have to Miss Payments to Get Help?

Here's one of the questions I couldn't get to during the latest Real Estate Live chat. The next online conversation is scheduled for Friday, July 24 at 1 p.m. As always, you can read the transcript or submit a comment or question early. Ashburn: In order to qualify for a loan modification, do you need to be behind in payments or do you just need to meet the qualifications, that is your mortgage takes up more than 31 percent of gross monthly income, the loan balance is less than $729,000, and it was originated before Jan. 9, 2009, etc?

By Elizabeth Razzi | July 14, 2009; 06:00 AM ET | Comments (2)

Balloon Mortgages: A Relic of the Boom Survives?

Honestly, I thought balloon home mortgages--debts that come due after a short period, forcing a refinance--were killed off by the real estate crash. But I learned that online lender ING Direct is still offering these risky loans. Only now they're taking steps to limit their risk by requiring at least a 25 percent down payment (or equity, if it's a refinance). The payoff for borrowers: A 4.25 percent interest rate, which is well below current rates. And they promise very low closing costs, too

By Elizabeth Razzi | July 13, 2009; 06:00 AM ET | Comments (4)

Mortgage Fraud Rising in the Washington Area

Maryland is on the FBI's top ten list for states with the most mortgage fraud, and the District is among jurisdictions "newly identified as having significant mortgage fraud problems," according to the bureau's 2008 Mortgage Fraud Report, which was just released. Nationwide, the number of mortgage fraud suspicious-activity reports referred to law enforcement increased 36 percent over 2007, the report says. And the government's economic stimulus programs could fuel further increases, according to the FBI.

By Elizabeth Razzi | July 9, 2009; 06:00 AM ET | Comments (4)

One Step Closer to a Consumer Financial Protection Agency

We're getting more details on the Obama Administration's proposed Consumer Financial Protection Agency. According to proposed legislation the Treasury Department sent to Capitol Hill yesterday, this big, new federal umbrella would cover a lot of services that touch homeowners and buyers directly. It would become a one-stop-shop to regulate mortgage lenders, replacing the patchwork of federal and state regulators that now cover the lending industry.

By Elizabeth Razzi | July 1, 2009; 06:00 AM ET | Comments (3)

Appraisers Blamed for Killing a Market Recovery

There's a Catch-22 that always arises when home prices start to increase near the end of a recession. Even though buyers are willing to pay more, appraisals often come in lower than the agreed-upon price because they're based on comparable sales from three-to-six months earlier, when prices were bottoming. Real estate agents and mortgage brokers say it's happening now, and that it's disrupting sales.

By Elizabeth Razzi | June 25, 2009; 06:00 AM ET | Comments (11)

New Web Site Takes Mystery Out of Closing Costs

I've just taken a spin through a new Web site, Closing.com, that looks like it's going to be really useful for home buyers trying to figure out who to choose for closing services and what their total cost will be. With their Closing Wizard, you can just plug in a few details about the home you're buying--ZIP code, sales price, down payment, square footage and interest rate, and it will tell you how much cash you need to close the deal, including downpayment and fees.

By Elizabeth Razzi | June 18, 2009; 06:00 AM ET | Comments (0)

Discrimination Complaints Hit a Record

Apparently, it's still a booming market for housing discrimination. There were 10,552 formal complaints of housing discrimination during fiscal year 2008, which ended Sept. 30. That's a record, according to the Department of Housing and Urban Development.

By Elizabeth Razzi | June 10, 2009; 06:00 AM ET | Comments (1)

Regulator Warns Public About Reverse Mortgages

"While reverse mortgages can provide real benefits, they also have some of the same characteristics as the riskiest types of subprime mortgages -- and that should set off alarm bells," Comptroller of the Currency John C. Dugan said in a speech to a banking group.

By Elizabeth Razzi | June 9, 2009; 09:06 AM ET | Comments (2)

FTC Seeks Consumers' Advice on Unfair Mortgage Practices

Want to give the feds a piece of your mind about unfair or deceptive mortgage lending practices? Hot under the collar about the guy who charged you a thousand bucks for help getting a loan modification? The Federal Trade Commission says it wants to hear from you. They've published two separate requests for comment about practices that could result in new prohibitions in two areas:

By Elizabeth Razzi | June 8, 2009; 06:00 AM ET | Comments (0)

Financial Product Safety Commission & The Poll

Watch for an intergalactic battle to come in the second half of this year as the Armies of Consumer Protection take on the Forces of Financial Product Innovation. Legislation has been introduced in Congress to create a Financial Product Safety Commission that would govern mortgages and other consumer lending products.

By Elizabeth Razzi | May 22, 2009; 06:00 AM ET | Comments (0)

Market Up, or Down, Or?

Check back through the day for updates filed from the National Association of Realtors' daylong economic summit. We're in the Marriott Wardman Park's giant ballroom, and through the day we'll hear from former Labor Secretary Robert Reich, Havard's Eric Belsky and Martin Feldstein, the Wharton School's Susan Wachter, former Fed Chairman Alan Greenspan, Carnegie Mellon University's Allan Meltzer and others, roughly in that order.

By Elizabeth Razzi | May 12, 2009; 09:18 AM ET | Comments (3)

Mortgage Crisis Show, Tonight on WAMU and WHUT

I'm looking forward to the questions that will come up this evening during a panel discussion I have been invited to join at Howard University. It's part of their week-long special on the mortgage crisis and is being led by WAMU radio host Kojo Nnamdi. The broadcast will be live on Howard University Television, WHUT,and WAMU 88.5. at 8 p.m.

By Elizabeth Razzi | April 30, 2009; 02:40 PM ET | Comments (0)

Feds Charge Metro Dream Homes Officers

According to a Justice Department announcement, officers of Metro Dream Homes have been indicted by a federal grand jury in the alleged mortgage fraud scheme, which the Justice Department says was worth $70 million. Charges were filed against Andrew Hamilton Williams, Jr., 58, of Hollywood, Fla., founder and owner; Michael Anthony Hickson, 46, of Commack, NY, chief financial officer; Isaac Jerome Smith, 46, of Spotsylvania, president; Alvita Karen Gunn, 31, of Hanover, Md., vice president of operations.

By Elizabeth Razzi | April 28, 2009; 06:00 AM ET | Comments (0)

More Hurdles to Seeing Your Credit Scores

Just when credit scores are more important than ever--because banks are being so exquisitely picky about them--the credit-score industry is making it more difficult to get the full picture of your credit standing. And they're still doing their level best to get you to buy something--your credit reports--that federal law says you can have once a year for free.

By Elizabeth Razzi | April 21, 2009; 06:00 AM ET | Comments (4)

Long & Foster Adds Job-Loss Protection

Long & Foster Realtors is trying to coax the employed-but-worried into the market with a new job-loss protection program. Agents throughout the company are just getting training on the new "Buy Confident" program, which will be rolled out shortly through all of Long & Foster's offices in the mid-Atlantic. Some new-home builders have started offering such protection on their sales, but it's rare for the coverage to be offered on resales marketed through a giant brokerage such as Long & Foster.

By Elizabeth Razzi | April 16, 2009; 06:00 AM ET | Comments (7)

Guilty Pleas in Foreclosure-Avoidance Scheme

If anyone doubts there are "smooth-talking con artists who take advantage of people who fall behind on their mortgage payments," to quote Rod J. Rosenstein, U.S. Attorney for the District of Maryland, consider the story of two locals who appear to have prison sentences of up to 20 years in their futures--and that's on just one of the charges. They also agreed to forfeit more than $2.2 million in proceeds from criminal activity. Yesterday Cheryl Brooke, 52, of Upper Marlboro and Winston Thomas, 43, of New Carrollton, pleaded guilty to participating in a foreclosure-avoidance scheme that defrauded homeowners and mortgage lenders, according to an announcement from Rosenstein's office.

By Elizabeth Razzi | April 15, 2009; 06:00 AM ET | Comments (0)

Book Review: Reduce Debt, Reduce Stress

I'm happy to recommend a new book full of detailed advice on solving credit problems, Reduce Debt, Reduce Stress: Real Life Solutions for Solving Your Debt Crisis, by Gerri Detweiler, Marc Eisenson and Nancy Castleman.

By Elizabeth Razzi | April 14, 2009; 06:00 AM ET | Comments (1)

Why Ask an Ex-Con for Mortgage Help?

Did you hear the one about the convicted felon who's now in the mortgage-modification business?

By Elizabeth Razzi | April 1, 2009; 06:00 AM ET | Comments (2)

Sales Calls and Refinancing

Refinancers, you're a hot commodity. Your loan application could trigger unsolicited sales pitches -- with requests for sensitive information - -from businesses you've never heard of. A colleague at The Post just told me about the unsettling phone call she received last week, a day after applying for a mortgage refinance with her current lender, Citibank. She and her husband have lots of equity and good credit, so she didn't anticipate any problems qualifying. Out of the blue, she received a phone call from someone who said he worked for Foundation Financial Group, a mortgage banker with headquarters in Atlanta and Jacksonville, Fla. He told her that her file had been "flagged," and that he needed her financial information to determine if the refinance was in her best interest. She wasn't sure about the purpose of his call, but she was absolutely certain she wasn't going to divulge any of...

By Elizabeth Razzi | March 31, 2009; 06:00 AM ET | Comments (2)

Dealing With Signs of Fraud in FHA Loans

How dead would the housing market be if buyers could not turn to the Federal Housing Administration's mortgage insurance program? Low-down-payment mortgages insured by FHA account for nearly a third of all mortgage loans being made now. But there are worrisome signs that the program is being seriously abused, according to a report in Sunday's Post by Dina ElBoghdady and Dan Keating. Most alarming was their finding that in the past year, the number of borrowers who failed to make a single payment before defaulting on the loans has nearly tripled. The story quoted Kenneth Donohue, the inspector general for the Department of Housing and Urban Development, which includes FHA, as saying an immediate default "clearly suggests impropriety and fraudulent activity." In response to the story, FHA spokesman Brian Sullivan said that while the agency is managing the extra risks inherent in lending to borrowers with low down payments, they...

By Elizabeth Razzi | March 10, 2009; 06:00 AM ET | Comments (3)

Refinance Opportunities Should Last a While

Normally, when borrowers flood lenders with calls asking about refinancing, that extra demand helps nudge interest rates up a bit, cooling the refinance rush. With lenders swamped with calls from borrowers hoping to get in on the government-backed no-equity refinance program launched last week, should you be concerned that rates will shoot up before you apply? In a word, no. Rates on 30-year fixed mortgages should remain around 5 percent, where they've lingered for weeks, because the Federal Reserve is laboring hard to keep them there. Orawin Velz, an economic forecaster with the Mortgage Bankers Association, pointed out that the Fed is committing $500 billion to the purchase of mortgage bonds from Fannie Mae and Freddie Mac. The idea is to keep demand for these securities up so interest rates stay low. Fed action is not the only thing that affects interest rates--demand from foreign investors for these bonds is...

By Elizabeth Razzi | March 9, 2009; 06:00 AM ET | Comments (1)

Surprise! It's a Bailout for Vacation Homes, Too

I'm shocked that people aren't jumping all over the revelation that the no-equity mortgage refinance program unveiled yesterday is going to be available for vacation homes and one-to-four unit rental properties as well as for owner-occupied homes. The Post's Renae Merle reported this detail, which she found in the program rules published by Fannie Mae and Freddie Mac. The refinances are available to borrowers who bought their properties using Fannie or Freddie loans and who are not behind on their payments, but who don't have enough equity to qualify for an ordinary refinance. It's half of a two-part homeowner bailout program. The other half encourages loan modifications that can reduce interest rates and payments for borrowers already in default or near foreclosure. That loan-modification plan is restricted to a borrower's primary residence. But President Obama never made such a distinction when he first announced the broad outline of his plan...

By Elizabeth Razzi | March 6, 2009; 06:00 AM ET | Comments (5)

Sharpen Your Elbows to Get In on Borrower Bailout

Ah, it was good to see so much detail laid out for the government's new refinance and loan-modification programs for borrowers at risk of foreclosure. The 17 pages of guidelines are government poetry, what with all the acronyms, formulas and step-by-step directions. It makes for lousy reading, but all those details increase the odds that the program will actually work. If you don't believe me, consider the infinitely complicated IRS Form 1040 and its effectiveness at separating you from your money. If a quick run through this calculator indicates you may qualify for a refinance (available even if falling values have wiped out your equity, as long as you're current on payments) or a loan modification (available if you're behind on payments or on the verge of foreclosure) get your financial documents together quickly and call your lender. They are going to be swamped with calls. Some of the largest...

By Elizabeth Razzi | March 5, 2009; 06:00 AM ET | Comments (2)

Jumbo Loans Get Supersized -- Again

It's official: The dividing line for jumbo mortgages in the Washington region (and other high-cost areas around the country) is now $729,750. Below that, Fannie Mae and Freddie Mac can buy a loan. From there on up, it’s a jumbo, and costs more. An announcement by the Federal Housing Finance Agency makes it clear that the new “conforming loan limits,” which govern the size of mortgages that can be purchased by Fannie and Freddie, have been returned to that higher dollar amount, which was in effect last year. The change back is thanks to the economic stimulus package recently signed into law. That’s important to home buyers and refinancers because jumbo mortgages carry higher interest rates. This bouncing around of the jumbo-loan threshold is unprecedented. Through much of last year, the cutoff point was $729,750, but the government reduced the number to $625,500 as of January 1. The once-again...

By Elizabeth Razzi | February 24, 2009; 01:00 PM ET | Comments (0)

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