conforming

Freddie Mac’s SEC Filing : The 2 Sentences That Matter In A 1,394-Page Document

July 24, 2008

Sometimes, the hardest part about news is knowing where to find it. In its filing with the SEC last week, Freddie Mac stated that it will “pursue increases” to its middleman fee.  This would likely make mortgages more expensive for every conforming borrower in the country. The exact verbiage from the filing is extremely opaque and […]

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Looking Back And Looking Ahead : July 21, 2008

July 21, 2008

Mortgage rates soared last week as mortgage markets experienced a 4-day freefall. By the end of the trading week, conforming mortgage rates had jumped by as much as 0.500 percent. The spike in rates can’t be pinned on any one factor, but 3 contributing factors include: The lingering impact of high energy prices on inflation […]

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Did You Know : The Lifespan Of A Mortgage Approval

June 3, 2008

Mortgage approvals don’t last forever. A conforming mortgage approval from Fannie Mae or Freddie Mac has a shelf-life of 120 days. After 120 days, the approval expires and a mortgage applicant must re-submit his application for consideration. In addition, a mortgage approval can “expire” within the 120-day period for other reasons: Change of job status or […]

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Looking Back And Looking Ahead : June 2, 2008

June 2, 2008

Mortgage rates rocketed higher last week, stunning active home buyers and mortgage rate shoppers. Some conforming mortgage rates rose by as much as three-quarters of a percent before Friday’s closing. Even in a year in which mortgage rates have been extremely volatile, last week’s spike was a large one. The main driver of last week’s […]

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The Counties In Which Home Prices Are Rising

May 8, 2008

When real estate news is reported on television or in the papers, it’s usually told as a national story.  Unfortunately, stories like these aren’t helpful for everyday Americans because real estate is not a national market. Real estate is local. The graph above was used by Fed Chairman Ben Bernanke in a speech to Columbia […]

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Mortgage Lenders Get “Once Bitten, Twice Shy” And Impose New Restrictions

April 11, 2008

Getting approved for a conforming home loan is now tougher than before. Again. As home loan defaults mount, government-sponsored financier Fannie Mae has imposed new guidelines on what it will lend and to whom, highlighting the need for a strong credit profile and a downpayment. In other words, Fannie Mae is outright declining mortgage applicants […]

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What 98 Percent Of Traders Think About The Fed’s Next Move

April 9, 2008

In three weeks, the Federal Open Market Committee will meet again and markets anticipate another cut to the Fed Funds Rate. Based on data compiled by the Federal Reserve Bank of Cleveland at the close of business yesterday, traders put the probabilities of the Fed’s next move at: 62 percent chance that the Fed Funds Rate falls to […]

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FHA Home Loans Emerge As A Cheap Alternative For Low-Credit Score Homeowners

April 1, 2008

FHA stands for Federal Housing Administration, a by-product of the National Housing Act of 1934 and now a sub-group within the U.S. Department of Housing and Urban Development (HUD). The FHA is not a lender nor does it build homes. The FHA exists to insure lenders against loss in the event that a homeowner defaults […]

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Looking Back And Looking Ahead : March 24, 2008

March 24, 2008

Conforming mortgage rates edged slightly lower for the second week in a row. Mortgage rates fell for two main reasons: The Federal Reserve offered fiscal support for troubled mortgage-backed securities A government group gave Fannie Mae and Freddie Mac permission to lend more of money to American homeowners These two actions combined to make mortgage-backed securities safer […]

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Looking Back And Looking Ahead : March 17, 2008

March 17, 2008

Mortgage rates fell last week on growing evidence of a recession, but far fewer Americans were eligible to take advantage. Mortgage lenders continue to reduce product menus and that is leaving homeowners with fewer mortgage financing options than before. As an added hurdle, Fannie Mae and Freddie Mac recently added “risk-based” fees on all conforming […]

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Mortgage Rates Fell But You May Have A Higher Rate To Pay

March 13, 2008

When mortgages began to sour last Fall, Fannie Mae and Freddie Mac instituted “loan-level pricing adjustments”. The concept is basic: For mortgage applicants with less-than-ideal credit profiles, mortgage pricing is adjusted to compensate for the added risks. It’s still a conforming loan, but with adjustments. Effective March 6, though, Fannie and Freddie’s definition of “high-risk” […]

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What The New Conforming Loan Limits May Mean To You

February 14, 2008

The $168 billion economic stimulus plan signed Wednesday includes a temporary increase to conforming loan limits in some parts of the country. Currently, many homeowners whose loans exceed $417,000 are paying higher interest rates because their loans are not securitized the way that smaller loans are. The loan limit increase is intended to make housing more […]

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Mortgage Rates Are Going Up — But Not For The Reason You’d Expect

December 13, 2007

Conforming mortgages are getting more expensive — but not because of mortgage rates. To protect against further weakness in the housing sector, Fannie Mae and Freddie Mac are instituting “delivery fees” on all conforming mortgages, effective March 2008. Fannie Mae’s Adverse Market Delivery Charge and Freddie Mac’s Market Condition Delivery Fee will add a one-time, quarter-percent […]

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Why You Should Remain In “Ready Position” For Your Mortgage Rate

November 28, 2007

Easy come, easy go. There was a strong rally Monday afternoon in the mortgage bond market.  It was sudden and furious, mostly coming on in the last 60 minutes of trading. When markets closed, mortgage rates for conforming home loans were grazing their lowest levels in nearly two years. It lasted overnight and into the […]

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Who Are Fannie And Freddie And How Do They Help Homeowners?

November 21, 2007

Fannie Mae and Freddie Mae are quasi-government agencies in that they are publicly-owned, but overseen by the government. The purpose of Fannie and Freddie is to make sure that money is available to homeowners that want home loans. Neither lends to consumers directly, though; you’ll have to talk to your loan officer for that.  Instead, […]

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Mortgage Rates Fall For ARMs Faster Than For Fixed Rate Mortgages

November 8, 2007

After running neck-and-neck for several months, interest rates for fixed-rate mortgages and adjustable-rate mortgages are finally diverging. Despite pricing worse than its fixed-rate counterpart throughout much of August and September, ARMs are now close to 0.375 percent lower for conforming products sold through Fannie Mae and Freddie Mac. This equates to roughly $25 per month per $100,000 […]

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It’s A Terrific Time To Revisit Your Mortgage Rate

November 2, 2007

If you bought your home in 2007 and your mortgage is a conforming home loan, you may be able to take advantage of  the current mortgage market conditions and lower your mortgage rate. As of this morning, mortgage rates are near their lowest levels of the year. Of course, not every conforming borrower is eligible. […]

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Jumbo Mortgage Rates Shed Some Of Their Risk, Rates Fall

October 11, 2007

As a sign that some normalcy is returning to mortgage markets, the premium attached to jumbo mortgage rates is getting smaller. A “jumbo”-sized loan is one that exceeds $417,000 on a single-family residence, among other criteria. Conforming 30-year fixed rate mortgages and jumbo 30-year fixed rate mortgages tend to move in the same direction over […]

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Making A Choice Of Mortgage Products Is Easier Today Than Most Days

October 11, 2007

In another sign that mortgage markets are a bit unpredictable lately, this morning’s mortgage rates are virtually identical for conforming fixed rate mortgages and conforming adjustable rate mortgages. This is an extremely uncommon market condition; usually, adjustable rate mortgages carry lower rates over their initial fixed rate period (i.e. 3 years, 5 years, 7 years) […]

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An Appetite For Jumbo Loans Returns

September 5, 2007

Yesterday was a rather drab day in mortgage circles — not much happened and mortgage rates idled.  The bigger story was how liquidity appears to be slowly returning to some areas of the beaten-down mortgage market. Specifically, liquidity is returning to prime, fixed-rate, full documentation jumbo loans and pricing appears to be improving (slightly). The […]

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