Show me the MORTGAGE money!

WSJ ...Sellers Brace for New Mortgage Caps

October Change Is Meant to Reduce the Government Footprint in Housing, but Industry Fears It Could Lead to Lower Prices

By NICK TIMIRAOS And ALAN ZIBEL

The federal government is readying its first retreat from the mortgage market, with the size of loans eligible for government backing set to decline in October

read on

Fannie Mae cracks down on "Walk Aways"

http://www.calculatedriskblog.com/2010/06/fannie-mae-cracks-down-on-walk-aways.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=My+Yahoo

.....Peggy tells it like it........was...

After the Crash, a Crashing Bore

The men behind the bailout take refuge in impenetrable jargon.

By PEGGY NOOONAN

Like all Americans, I continue to seek to understand exactly what moods, facts, assumptions, dynamics, agendas and structures underlay and made possible the crash and the great recession.

We do this so that we will be able to bring our gained wisdom into the future and keep another crash from happening, should we ever have another bubble to precede it. We also do it so that we know who to hate.

That's why this week's Financial Industry Inquiry Commission hearings were so exciting, such a public service. The testimony of Charles Prince, former CEO of Citigroup, a too-big-to-fail bank that received $45 billion in bailouts and $300 billion in taxpayer guarantees, was riveting. You've seen it on the news, but if you were watching it live on C-Span, the stark power of his brutal candor was breathtaking. This, as you know, is what he said:

read more: http://online.wsj.com/article/SB10001424052702304198004575172251738485686.html

 

...How $50 Billion in TARP Money Is Being Spent on Housing...

WSJ

By Nick Timiraos

The Obama administration is stressing that the revamp of its foreclosure prevention efforts won’t cost any more taxpayer money.

That’s because the administration hasn’t come close to using the $50 billion from the Troubled Asset Relief Program (TARP) that it set aside for its loan modification program last year.

That money helps cover the cost of lowering borrowers’ monthly payments, usually by reducing interest rates and extending loan terms to 40 years. Loan servicers that handle mortgage payments also receive incentive payments for successfully modifying mortgages under the Home Affordable Modification Program, or HAMP. Borrowers are eligible for payments after one year in the program.

Separately, the administration said last week it would begin requiring banks to consider writing down loan balances for borrowers who owe 115% of their home value. Lenders will receive 10 to 21 cents of federal subsidies for every dollar of loan principal reduced, depending on the degree to which the borrower is underwater.

HAMP has resulted in just 170,000 permanent modifications so far and is being revamped to reach more borrowers. That means the $50 billion outlay from TARP has essentially become a housing slush fund that doesn’t require congressional approval for every new outlay or program change.

Here’s a look at where some of the money is going:

http://blogs.wsj.com/developments/2010/03/30/how-50-billion-in-tarp-money-is-being-spent-on-housing/?KEYWORDS=Timiraos

...Mortgage Tip of the day...NYT...When Not to Pay Down a Mortgage...

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By RON LIEBER

Published: March 19, 2010

This week, the Federal Reserve reaffirmed its intention to stop buying mortgage-backed securities, signaling the likelihood that the mortgage rates you can get today are as good as they’re going to be for a long while. Once the Fed stops buying, after all, rates are likely to go up.

And current rates are quite good. At about 5 percent, in fact, they’re so good that they’ve helped change the age-old debate over whether homeowners should make extra mortgage payments to pay off their debt well before their loan periods are up.

Back when rates ran at 7 or 8 percent, making extra payments offered what amounted to a guaranteed return on your money. When you’re ridding yourself of debt that costs you much less, however, it’s easier to imagine a future when you could more easily earn a higher return by investing those potential extra mortgage payments someplace else.

read more... http://www.nytimes.com/2010/03/20/your-money/mortgages/20money.html?em&exprod=myyahoo

...So You Want to Walk Away from the Mortgage…WSJ

By Emily Peck

Getty Images

WSJ.com columnist Brett Arends has advice for an Illinois man who is underwater on a mortgage and unsure about whether or not to abandon ship. He and his wife are current on payments, but will likely fall behind when their adjustable-rate mortgage resets in about a year. They considered a “short sale,” selling the house for less than is owed on the mortgage, but the lender said it would come after them for the shortfall.

read more...  http://blogs.wsj.com/developments/2010/03/17/so-you-want-to-walk-away-from-the-mortgage/

....From the WSJ: Home Buyers Check Out Apps ......just in time for the spring market..

By JAMES R. HAGERTY

Just in time for the spring house-hunting season, smart-phone applications that provide information to home buyers are proliferating.

Real-estate firms have long vied to have the most engaging Web site to attract people searching for homes. Now they also feel compelled to have an "app" for Apple Inc.'s iPhone and other smart phones. Rather than being moneymakers—brokers tend to offer their apps for free—the apps are seen as a tool to make the home-buying process easier.

read more: http://online.wsj.com/article/SB10001424052748704869304575109593428854262.html?mod=WSJ_Real+Estate_LeftTopNews

Despite Looming Fed Exit, Mortgage Rates Stay Low - Developments - WSJ

By Nick Timiraos

The Federal Reserve is almost done buying mortgage-backed securities, which has helped lower mortgage rates to near historical lows for much of the past year, but rates appear to be holding steady: they ended the week at a still low 5.01% last week, up slightly from 4.95% the previous week, according to the Mortgage Bankers Association.

Another glimmer of good news: applications for purchase mortgages increased by 5.7% last week, from the previous week. While purchase applications—which give an insight to potential homebuying activity—are still down from one year ago, it’s up from the 13-year lows set earlier this year.

Refinances still account for around two thirds of mortgage applications, and the refi share should stay high for as long as rates remain at low levels. How much rates rise after the Fed ends its mortgage securities purchases has been a big point of debatebetween economists, investors and analysts for weeks.

While some have argued that rates could rise between one and two full percentage points (and that the resulting political pressure would force the Fed to resume its purchases at some point), more analysts have argued in recent weeks that the effect on rates may be more muted, with rates rising by around 0.3 percentage points.  A report from Goldmanlast week suggested that rates might rise by as little as 0.1 percentage points.

read more: http://blogs.wsj.com/developments/2010/03/10/despite-looming-fed-exit-mortgage-rates-stay-low/?KEYWORDS=Timiraos#

....I'm playing baritone saxophone in the Montclair Community Band Family "Pops" Concert this Sunday...

Please join us for the

Montclair Community Band

Family “Pops” Concert

Conducted by Jim Wasko

Sunday, March 7th, 2010, 3:00 PM

 

at the Montclair High School Auditorium

Park Street at Chestnut Street

 

Free Admission – No Tickets Needed

Sponsored by Montclair Recreation and Cultural Affairs

Call 973-744-1454 for more information or

www.MontclairCommunityBand.org

 

The program will include variety of selections that everyone will enjoy!

 

Pan American, a Spanish March    Karl L. King

 

Bolero   Maurice Ravel

    Arranged by Jay Bocook

 

Malagueña Ernesto Lecuona

   Arranged by Sammy Nestico

 

Holiday for Horns Jack M. Jarrett

 

George Gershwin Selections     David Bennett

 

They’re Off!   Fred Jewell

Arranged by Andrew Glover

 

~  intermission  ~

 

 

Kiss Me Kate Cole Porter

 

Blue Moon Richard Rodgers

 

The White Eagle, A Polish Rhapsody Robert Longfield

  

 

Four of a Kind   Jack Bullock

Jazz Quartet for our Trumpets

 

The Symphonic Star Trek Suite Michael Giacchino

  - Alexander Courage - Gene Roddenberry

Featuring familiar themes from film and television

Arranged by Jay Bocook

 

And, of course, “Stars and Stripes Forever”

 

 PLEASE JOIN US for this wonderful FREE concert!!!!!

 

...WSJ No Exit in Sight for U.S. As Fannie, Freddie Flail ....

By NICK TIMIRAOS And JAMES R. HAGERTY

MCLEAN, Va.—When Charles E. Haldeman Jr. became Freddie Mac's chief executive officer in August, the ailing housing-finance giant had already consumed $51 billion of government money to stay afloat. It's likely to need even more.

http://online.wsj.com/article/SB10001424052748704362004575001042824028862.html?mod=WSJ_myyahoo_module