Archive for December, 2008
Streamlined Modification Program (SMP) Now Available to Borrowers
December 27th, 2008 categories: Our Market
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December 18, 2008 WASHINGTON, DC — Fannie Mae (FNM/NYSE), today said that the Streamlined Modification Program (SMP) announced by the Federal Housing Finance Agency (FHFA) in November is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. Fannie Mae on December 12, 2008, provided information and guidelines to its servicers regarding the implementation of the SMP. The SMP is designed to be a streamlined process for modifying the loans of a large number of borrowers who are delinquent in their mortgage payment and may be able to avoid a foreclosure through the program. As FHFA has indicated, SMP was intended to help set standards in the mortgage servicing industry for conducting loan modification programs on a large scale as a foreclosure prevention measure. Fannie Mae has been working with FHFA and 27 lenders and servicers in the HOPE NOW alliance to implement the SMP. Under the program, borrowers who meet certain eligibility criteria and demonstrate financial hardship may be eligible for a loan modification that reduces their monthly principal and interest payment. The streamlined process allows a borrower to sign a single document at the outset of the workout process that both establishes a new monthly payment during a three-month trial period, and sets forth the modification terms that will take effect if the borrower makes the new payments during the trial period. The program is available to borrowers who have missed at least three monthly payments on their existing mortgages. “By bringing the collective efforts of FHFA, Treasury, HOPE NOW, Fannie Mae, Freddie Mac and other mortgage industry participants together through the SMP to confront the foreclosure challenge, we’ll be able to help more families across America stay in their homes,” said Herb Allison, Fannie Mae president and CEO. “Along with other recently announced initiatives by Fannie Mae to reach and help financially troubled borrowers earlier, including our Early Workout program, the SMP is a critical component of our company’s foreclosure prevention efforts. These efforts are helping more than 10,000 delinquent borrowers every month get back on track.” Modification Options Through the SMP, servicers may change the terms of a loan to reduce a borrower’s first lien monthly mortgage payment, including taxes, insurance and homeowners association payments, to an amount equal to 38 percent of gross monthly income. The changes in terms may include one or more of the following:
Eligibility Highlights of the SMP’s eligibility requirements communicated to servicers include:
Servicers will be sending modification solicitation letters beginning this month to thousands of borrowers believed to be eligible for the program. It is critical that eligible borrowers respond to these letters and reach out to their servicers to determine if they can receive SMP assistance. Also, borrowers who don’t receive a letter are encouraged to contact their servicer to see if they may be eligible for SMP help. Fannie Mae will be working with servicers to monitor and improve implementation of the program as necessary. |
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| Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. In 2008, we mark our 70th year of service to America’s housing market. Our job is to help those who house America. | ||||||
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| Fannie Mae Resource Center | Telephone 1-800-7FANNIE (1-800-732-6643 |
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Long Awaited Grand Opening of Breeza is Just Around the Corner
December 15th, 2008 categories: Our Market
BREEZA
The Grand Opening of downtown San Diego’s newest residential opportunity is finally upon us. January 2009 will mark the completion of this gorgeous new residential enclave in the heart of San Diego’s Embarcadero district. Seldom does such an opportunity arise to live in the heart of America’s Finest City ; a peerless California lifestyle at your doorstep. The finest climate in North America with year-round opportunities for ocean sports, golf, tennis, hiking or just lounging on the beautiful San Diego beach.
Breeza is a boutique mid-rise residential neighborhood with state of the art appointments and breathtaking views over San Diego Bay. Walk along beautifully manicured streets to exquisite dining and shopping from your home being pampered by the San Diego sunshine or lounge by the pool and relax knowing you have your little piece of paradise.
Homes offered have from one to three bedrooms and come in a range of prices from the mid $300,000’s to over $1M. Timing is everything and you couldn’t pick a better time to make Breeza your home in San Diego. ***Builder and broker incentives make this opportunity too good to miss.
BREEZA
Don’t miss this incredible opportunity to be a part of one of the last great waterfront locations in San Diego. Sign up today for your place on the interest list and you will be contacted for a personal tour to introduce you to San Diego’s finest new home opportunity. To be a part of the interest list, click on the Contact tab on our website navigation bar and input your information. Make sure to leave a comment referencing the Breeza interest list. You will be contacted by one of our associates for a personal tour and we will assist you in everything you need to make your purchase easy and convenient.
For information about the builder of Breeza, you can visit their website at www.breezaliving.com. **For the Buyer/Broker incentive program, you must register through JB Home Sellers and be represented by JB Home Sellers in your purchase. All representations above are based on today’s information and can change without notice. Buyer’s due diligence is recommended for any Real Estate transaction.
***Builder incentive program available upon request and can change without notice.
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Green Building Council Hires First Executive Director-SDBJ Excerpt
December 10th, 2008 categories: Our Market
The San Diego chapter of the U.S. Green Building Council hired its first executive director, Gary Goodson, to lead the 500-member-strong environmental and energy conscious organization.
Goodson was the director of the Community Office for Resource Efficiency, an Aspen, Colo. nonprofit focused on cost-effective ways to save business owners, government agencies and homeowners on energy and water utilities while also reducing greenhouse gas emissions. CORE grants $2 million annually.
In addition, Goodson is a LEED accredited professional and holds a degree in sustainable systems.
The 2009 San Diego chapter board of directors is Charles Angyal of KEMA Services, Lee Barken of Haskell & White, Jay Corrales of Turner Real Estate, Christian F. Dick of Swinerton Management & Consulting, Stephen Kapp with the California Center for Sustainable Energy, Shawn Kallio of EcoTimber, Carolyn Keith of the EcoLogic Studio, Kamala Kuresman of Nolte Associates, Jane Leonard of SE3 Communications, Zach Pannier of DPR Construction, Keith Schneringer of Waxie Sanitary Supply, Paul Stapleton of SDG&E, and Lucia Stone of Hutchens PR.
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As a member of the U.S. Green Building Council, I am thrilled to see this progress in our own San Diego. The organization has gained the respect of local government, business and industry leaders for the value and credibility they add to green and sustainable building practices. When a consumer sees a LEED (Leadership in Energy and Environmental Design) certification, there is nothing ambiguous about the rating. LEED is the most widely known and accepted Green Rating used in the U.S. today. Green building practices incorporate more than photo voltaic solar panels. LEED criteria incorporates site selection and stewardship, energy and water efficiency design, indoor air quality, materials and resources and awareness and education into their point system for certification. There are four levels of LEED certification; LEED Certified, LEED Silver, LEED Gold and LEED Platinum and these levels of green rated buildings are available on residential, commercial and existing buildings.
To find out more about LEED Certification and the U.S. Green Building Council visit them online at www.usgbc.org. You can find a list of member builders and consultants that will help you build lasting quality into your new building. For green residential construction, please contact Pacific Shoreline Home Building via JB Home Sellers at 760-438-8815.
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Mortgage Rates Tumble on Fed Debt Purchasing Plan
December 7th, 2008 categories: Our Market
By Kathleen M. Howley
Nov. 26 (Bloomberg) — U.S. mortgage rates plunged by the most in at least seven years yesterday as a Federal Reserve pledge to buy $600 billion of debt succeeded where seven cuts in the central bank’s benchmark rate had failed.
The average rate for a 30-year fixed mortgage fell to about 5.5 percent last night after starting the day at 6.38 percent, according to an estimate from Bankrate Inc. It was the biggest one-day drop in at least seven years, said Holden Lewis, of the North Palm Beach, Florida, publishing and research firm. Today, the rate is “bouncing around” between 5.63 percent and 5.9 percent, he said.
Federal Reserve Chairman Ben Bernanke had received little help from lenders in his previous efforts to revive the U.S. housing market and halt its drag on the economy. The spread between the 10-year government bond yield and the average U.S. fixed mortgage rate was 2.8 percentage points last week, the widest since 1986, as banks hoarded cash rather than lower financing costs for homebuyers.
“Home resales have hung up because rates are high and because mortgage money has been scarce,” said Neal Soss, chief economist at Credit Suisse Group in New York. The Fed’s move “may hasten the day when we finally find a bottom in housing.”
The central bank pledged to purchase up to $500 billion in so-called agency debt as well as up to $100 billion in direct debt of Fannie Mae and Freddie Mac, the world’s two largest mortgage buyers, and Federal Home Loan Banks. The announcement was released at 8:15 a.m. New York time yesterday.
‘Rates Are Going Down’
The Fed also said it would set up a $200 billion program to support consumer and small-business loans. Together, the programs almost match the $864 billion of U.S. currency in circulation, as reported by the central bank in a Nov. 20 statement.
“I was sitting in my underwear getting dressed in the morning when it came on TV, and I told my wife, ‘Rates are going down today,’” said Henry Savage, president of PMC Mortgage Corp. in Alexandria, Virginia. “Instead of buying stocks in stupid banks, the government finally is going to make a move to clear assets from the market.”
Rates for a fixed rate mortgage with no fees or closing costs tumbled to as low as 5.25 percent from about 6.25 percent, Savage said.
Refinancing Gets Lift
“The market has been very good to me today,” said Savage, who spoke last night from a bar where he was celebrating the rate drop with friends.
Homeowners who have enough equity to refinance their existing mortgages will get a boost as well, said Bob Walters, chief economist of Quicken Loans in Livonia, Michigan.
“You’re going to see an immediate impact on people who can refinance, taking their 6.5 percent interest rate to 5.5 percent or so,” Walters said. “That will put $200 a month in their pockets.”
Almost 20 percent of U.S. mortgage borrowers owed more on their loans than their house was worth in the third quarter as foreclosures depressed prices and the economy weakened, according to an Oct. 31 report by First American CoreLogic. Those owners would have a difficult time refinancing, Walters said.
‘One-Time Jolt’
The Fed’s move was a “one-time jolt” that should have lasting effects, Walters said.
“I’ve been trading mortgages for 20 years and you don’t see many days when one thing moves rates like this,” said Walters. “You’ll see a pickup in demand for housing.”
Still, stricter mortgage qualifications and growing job losses in a weakening economy will continue to hamper the market, even if the Fed plan manages to keep rates lower in coming days, said Sam Khater, senior economist for First American CoreLogic in Tysons Corner, Virginia.
“The market right now is not about rates, which are affordable, but about a supply of homes that is very high,” Khater said in an interview. “The market won’t turn around and prices won’t stabilize until supply and demand become more normal.”
The inventory of existing homes for sale in the U.S. rose to a 10.2 month supply in October, from 10 months in September, the National Association of Realtors said in a Nov. 24 report. In 2007, the supply averaged 8.9 months, almost double the 4.5 months in 2005, the end of a five-year housing boom.
The Fed plan “is one of the key actions we’ve been advocating ever since the Treasury altered its course on how it would use the $700 billion recovery package,” said Charles McMillan, president of the Chicago-based Realtor’s group.
Troubled Assets
The Troubled Assets Relief Program, known as TARP, was approved by Congress and signed by President George Bush on Oct. 3. It gave Treasury Secretary Henry Paulson authority to buy assets after he told lawmakers he wanted to try to clear the market of “toxic” securities containing subprime mortgages.
Paulson used most of the first half of the TARP funds to buy equity stakes in troubled banks and in insurer American International Group Inc. On Nov. 12 he told Congress he wanted to use the second half to relieve pressure on consumer credit.
The Fed plan, in contrast, is focused on buying securities backed with “safe” mortgages that conform to the strict underwriting guidelines of Fannie Mae and Freddie Mac, according to Credit Suisse’s Soss.
“These are not the assets that have caused all the trouble – - these are quality mortgages that have been orphaned because investors have been reluctant to part with cash,” said Soss. “The beneficiaries will be people who are buying or selling a house, because mortgage money won’t be as scarce.”
Fannie and Freddie have about $1.7 trillion of corporate debt outstanding and $4.1 trillion of mortgage-backed securities.
“This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally,” the Fed said in the announcement it posted on its Web site.
To contact the reporter on this story: Kathleen M. Howley in Boston at kmhowley@bloomberg.net.
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