الشعر و الشعراء / Poetry & Poets قسم خاص لكتابة الاشعار... وبوح المشاعر ..

إضافة رد
 
LinkBack أدوات الموضوع انواع عرض الموضوع
  #1  
قديم 11-19-2010, 08:11 AM
RSS RSS غير متواجد حالياً

ViP

 
تاريخ التسجيل: Mar 2010
المشاركات: 24,972
معدل تقييم المستوى: 75
RSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud ofRSS has much to be proud of
افتراضي Home Ownership Gets Tougher as Lenders Restrict FHA Mortgages

*Home Ownership Gets Tougher as Lenders Restrict FHA Mortgages* By Jody Shenn and John Gittelsohn - Nov 16, 2010 11:01 PM CT Home Ownership...

Home Ownership Gets Tougher as Lenders Restrict FHA Mortgages
By Jody Shenn and John Gittelsohn - Nov 16, 2010 11:01 PM CT


Home Ownership Gets Tougher as Lenders Restrict FHA Mortgage

The U.S. home-ownership rate remained at a 10-year low in the quarter ended Sept. 30, in part because of rising foreclosures, the U.S. Census Bureau reported. Photographer: Jim R. Bounds/Bloomberg
Home Ownership Tougher as Lenders Restrict FHA Mortgages

Play Video

Nov. 17 (Bloomberg) -- Home Ownership may be falling out of reach for more Americans as Lenders toughen their standards for Federal Housing Administration-insured loans beyond what the agency itself requires. Mortgage Lenders including Wells Fargo & Co. and Bank of America Corp., the two largest, have raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620. Bloomberg's Monica Bertran reports. (Source: Bloomberg)

Home Ownership may be falling out of reach for more Americans as Lenders toughen their standards for Federal Housing Administration-insured loans beyond what the agency itself requires.

Mortgage Lenders including Wells Fargo & Co. and Bank of America Corp., the two largest, have raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620. About 6.3 million people fall within that range, according to FICO, which created the formula for the ratings.

The higher hurdles for FHA loans, used in about a fifth of U.S. Home purchases, add to challenges for a housing market already struggling with record-low sales and surging foreclosures. While lax lending fueled the bust that led the U.S. into recession, the new requirements will stifle the real estate recovery needed to revive the economy, said Ron Phipps, president of the National Association of Realtors.

“We’ve gone from silly to stupid,” Phipps, principal partner of Phipps Realty Inc., said in a telephone interview from his Home in Warwick, Rhode Island. “People who should be getting credit can’t get it. To have a healthy real estate market, you need activity. You need transactions.”

The FHA, which previously didn’t have minimums for FICO scores, began in October to require grades of at least 500, and more than 580 for loans with down payments of as little as 3.5 percent. Borrowers with scores between those levels must put 10 percent down. Several Lenders moved minimums to about 620 at the start of 2009, the companies said then.

3.7% of Consumers

FICO scores range from 300 to 850. The grades are based on data such as whether borrowers have missed debt payments, balances on their credit cards relative to borrowing limits, and the length of their credit history, meaning consumers who’ve never fallen delinquent can have lower scores, according to the company’s website.

The 6.3 million people with grades between 620 and 640 equate to about 3.7 percent of U.S. consumers with credit information available, according to FICO, the Minneapolis-based company formerly known as Fair Isaac Corp.

Requiring a 640 credit score excludes as much as about 15 percent of FHA borrowers, David Stevens, the agency’s commissioner, said in an interview yesterday. Minorities and borrowers in communities hardest hit by the recession are most likely to lose based on FICO scores, he said.

Finding Better Way

“We are restricting opportunity and access for those who can least afford it,” Stevens said. “We need to find a better way to provide access to these families who are being cut out simply because Lenders are putting arbitrary overlays on top of our requirements.”

FHA insurance covers Lenders or debt investors when borrowers default. One of every five U.S. Home purchases relied on the loans in the fiscal year through July, the agency said in a report yesterday. They accounted for a third of purchases by first-time homebuyers in the year ended Sept. 30.

The FHA, the Department of Veteran Affairs and Fannie Mae and Freddie Mac, the companies taken over by the government in 2008, have been providing about 95 percent of new mortgage financing after falling Home prices sparked retreats by banks and by investors in mortgage bonds without U.S.-backed guarantees, according to Inside Mortgage Finance newsletter. The S&P Case-Shiller Index of property values in 20 cities fell as much as 33 percent from its 2006 peak.

“It’s absolutely clear that, today, FHA is playing a larger role than it should,” Stevens said during a conference call with reporters yesterday. “But it’s a counter-cyclical force providing liquidity in a market where private capital still is completely absent.”

Servicing Costs

Mortgage companies are tightening FHA standards partly because of the higher costs they face in servicing delinquent loans, said Luke Hayden, president of the mortgage unit of Mount Laurel, New Jersey-based PHH Corp. By keeping defaults low, they can also boost the prices they fetch for bonds filled with the loans and thus offer lower rates, he said.

When FHA-backed loans go into default, the lender bears a greater share of the expenses than when the mortgage is backed by Fannie Mae and Freddie Mac, Hayden said. That’s one reason why the banks impose their own, higher standards on the loans.

With Fannie and Freddie mortgages, Lenders are forced to buy back bad Mortgages that were improperly underwritten, which has also prompted them to adopt Tougher guidelines for those loans.

Tightening Standards

Hayden’s company, the country’s seventh-largest Home lender, Gets some of its business through a joint venture with its former affiliate Realogy Corp., owner of the Coldwell Banker, ERA and Century 21 realty brokerage brands. The company is still tightening some standards for government-insured loans, he said.

Wells Fargo, the largest mortgage originator, has stopped buying FHA loans with FICOs below 640 from other lenders, said Vickee J. Adams, a spokeswoman for the San Francisco-based bank.

The minimum score for Mortgages it makes through its own loan officers remains 600 with “no plans for an increase,” she said. These types of loans accounted for 57 percent of its first-half originations, according to Inside Mortgage Finance.

Bank of America, the second-biggest lender, also stopped buying new FHA loans with FICOs below 640 last month, said Terry H. Francisco, a spokesman. About half of its originations in the first half of this year came through purchases from such so- called correspondents.

The bank, based in Charlotte, North Carolina, also requires scores at least that high on FHA Mortgages for refinancing when making loans directly to borrowers. It still allows scores as low as 620 for home-purchase Mortgages in its retail business because it thinks they perform relatively better and “we want to stay competitive” with those loans, Francisco said.

‘Huge Effect’

While Bank of America and Wells Fargo are keeping their retail credit standards in place, the changes to their loan buying affects other lenders’ requirements. Quicken Loans Inc., the ninth-largest lender, has ended most of its FHA lending to borrowers with scores below 640 because of the new rules.

“When the big companies change their standards and rules, it has a huge effect on the market,” said Bob Walters, chief economist at the Detroit-based company.

JPMorgan Chase & Co., the third-largest lender, had already been generally requiring credit scores of at least 640 on FHA loans before the tightening by competitors, said Tom Kelly, a spokesman for the New York-based company.

Cutting Off Customers

Matt Hackett, underwriting manager at New York-based Equity Now Inc., said higher requirements among buyers of its FHA loans cut off about 5 percent of his potential customers. Chris Murphy, a loan originator at Main Street Home Loans LLC, A 640 score disqualifies about 15 percent of customers who were getting FHA loans through Chris Murphy, a loan originator at Main Street Home Loans LLC, an independent mortgage bank based in Alpharetta, Georgia.

“It’s bad from the originator’s standpoint because fewer people qualify,” Murphy said in a telephone interview from his office in Charlotte. “But it’s less likely they’re going to default and so, from the standpoint of the economy, it’s probably a good thing.”

About 9.8 percent of U.S. Home Mortgages were delinquent at the end of the second quarter, with an additional 4.6 percent in the foreclosure process, according to the Mortgage Bankers Association. The Washington-based group releases figures through Sept. 30 tomorrow.

Reducing Risk

FHA lending to the riskiest borrowers has declined in the past two years. Only 3.8 percent of FHA loans had scores below 620 or no score in the quarter ended Sept. 30, down from a peak of 50.4 percent in the period through Dec. 31, 2008, according to a Nov. 4 agency report to Congress. A score below 620 was typically considered subprime before the credit crisis, meaning the borrower had a bad or limited credit history.

The U.S. home-ownership rate remained at a 10-year low of 66.9 percent in the quarter ended Sept. 30, in part because of rising foreclosures, the U.S. Census Bureau reported Nov. 2. The rate reached a record high of 69.2 percent in the second and fourth quarters of 2004.

Sales of existing homes were at an annual pace of 4.53 million in September, compared with the average rate of 5.82 million for the past decade, according to the Chicago-based National Association of Realtors. The pace in July was 3.84 million, the lowest in data going back to 1999.

Restricting access to credit threatens to slow a rebound even as reduced Home prices and interest rates near record lows boost affordability, said Stevens, the FHA commissioner.

“This has a broad potential impact to the economic recovery in total,” he said. “We’re not asking for Lenders to be reckless. In fact, we believe we have prudent policies for the market. But we do believe that Lenders need to put more work into making certain that they provide accessibility for families who can qualify for a mortgage.”

To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; John Gittelsohn in New York at johngitt@bloomberg.net.

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net; Kara Wetzel at kwetzel@bloomberg.net.

http://www.bloomberg.com/news/2010-1...mortgages.html


*Home Ownership Gets Tougher as Lenders Restrict FHA Mortgages* By Jody Shenn and John Gittelsohn - Nov 16, 2010 11:01 PM CT Home Ownership Gets Tougher as Lenders Restrict FHA Mortgage The U.S. home-ownership rate remained at a 10-year low in the quarter ended Sept. 30, in part because of...
الموضوع الأصلى من هنا: منتديات القرصان http://www.alkrsan.net/forum/caoun-ae-caounca-poetry-and-poets/31764-home-ownership-gets-tougher-as-lenders-restrict-fha-mortgages.html

Home Ownership Gets Tougher as Lenders Restrict FHA Mortgages
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
رد مع اقتباس
إضافة رد

العلامات المرجعية


يتصفح الموضوع حالياً : 1 (0 عضو و 1 ضيف)
 
أدوات الموضوع
انواع عرض الموضوع

ضوابط المشاركة
لا تستطيع إضافة مواضيع جديدة
لا تستطيع الرد على المواضيع
لا يمكنك اضافة مرفقات
لا يمكنك تعديل مشاركاتك

BB code متاحة
كود [IMG] متاحة
كود HTML معطلة
Trackbacks are معطلة
Pingbacks are معطلة
Refbacks are معطلة



جميع الأوقات بتوقيت GMT +3. الساعة الآن 02:56 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.5.1 PL1

تعريب » القرصان - خدمات الويب

جميع الحقوق محفوظة alkrsan 2006-2014


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516