With foreclosures on the rise scams seem to be on the rise. A couple was charged with 6 counts of money laundering and conspiracy to commit wire and mail fraud as well as 15 counts of mail fraud to obtain property and money from unsuspecting lenders and homeowners.
A recent article I found Monterey County homeowners bilked of thousands in refinancing scam. Apparently a group, 24 individuals, that were facing foreclosure were taken advantage of. They made deposits around $2,800 each.
Be sure, regardless of your situation, to ask for references or do a check on the business itself. It is unthinkable that individuals facing foreclosure are targeted in this manner by the unscrupulous.
I came across a great article in the Wall Street Journal Online entitled Mortgagers’ Dual Roles Clash which discusses the difficult balance that Freddie Mac and Fannie Mae have since they are part government agency and part profit making business.
If you ever wondered how they work, here is an excellent quote from the article:
The basic deal has been this: Fannie and Freddie make big profits for shareholders and pay high salaries. Shareholders benefit because Fannie and Freddie borrow more heavily than other financial companies and more cheaply, because everyone who lends them money assumes — correctly — that the U.S. government stands behind their debt.
and here is why they receive the benefits:
In exchange for their borrowing advantages, Fannie and Freddie and their shareholders agree to promote affordable housing — even when it isn’t a great business — to be in the mortgage market when no one else wants to be, and to submit to regulation.
Take a read on Freddie and Fannie here, although he is pointing out the seemingly polar opposite goals of these organizations, it is a great read as to why they exist and why they do what they do.
The NY daily news posted the article entitled Be wary of line of credit mortgages by Asa Aarons.
He writes about mortgage checking accounts that started in the U.S. about two years ago and came from Australia.
From the article Here’s how the mortgage works. A line of credit is usually a second mortgage. But in this case, it is set up as the primary, or first, mortgage. Rather than making a monthly payment from a checking account to a mortgage company, homeowners use a line of credit mortgage the way most consumers use a checking account. They deposit their entire paycheck into the line of credit mortgage account, immediately reducing their mortgage balance. Because they slightly lessen the mortgage balance, they slightly lessen the interest to be paid on the account.
Read more in the article entitled Be wary of line of credit mortgages by Asa Aarons.
It is very interesting and now I have to find out how much of an impact it makes.
AMERICAN BANKERS ASSOCIATION, FREDDIE MAC EXTEND ALLIANCE TO HELP MEMBERS SUCCEED IN TODAY’S TROUBLED MARKET
08 Mar
Posted by Mortgage Man as Freddie Mac, Press Release
For Immediate Release
February 25, 2008
CONTACT: corprel@freddiemac.com
or (703) 903-3933
AMERICAN BANKERS ASSOCIATION, FREDDIE MAC EXTEND ALLIANCE TO HELP MEMBERS SUCCEED IN TODAY’S TROUBLED MARKET
Palm Springs, CA – The American Bankers Association, through its subsidiary ABA Total Business Solutions, and Freddie Mac (NYSE:FRE) are extending and enhancing their special alliance to provide the nation’s community banks with critical mortgage products, technology tools, staff training and other important services to help them compete in today’s troubled mortgage market. Freddie Mac is one of the nation’s largest investors in residential mortgages.
The official announcement of the Freddie Mac/ABA Alliance extension was made here at the ABA’s Real Estate Lending Conference and Marketplace.
“Today’s announcement with the ABA will accommodate its members’ changing needs with a proven package of business services and residential financing options,” said Iliana Ghanem, Freddie Mac vice president for regional and community lending. “We are proud of our relationship with the ABA and our commitment to provide its members with a higher level of support in today’s challenging market.”
“We are pleased to extend and enhance our agreement with Freddie Mac,” said Deborah Whiteside, senior vice president mortgage solutions, ABA Total Business Solutions. “Community bankers are currently the most stable source of funding for mortgages in the country. The Freddie Mac alliance helps them stay competitive in their markets.”
By joining the Freddie Mac/ABA Alliance, banks gain competitive cash executions, services to help them manage their mortgage portfolios more efficiently – plus exclusive training sessions on many Freddie Mac products and solutions, especially in the areas of technology and affordable housing.
Access to Critical Origination, Servicing and Compliance Services
In addition, the ABA/Freddie Mac Alliance gives banks special access to critical services from some of the industry’s leading providers. These include:
* Set-up advantages for Mortgagebot® with Loan Prospector bank-branded website to originate mortgages, utilizing Freddie Mac’s Loan Prospector® automated underwriting system
* Private-label subservicing through Cenlar® FSB and Dovenmuehle Mortgage, Inc.
* Outsourced Investor accounting, P&I and T&I bank account reconciliations and loan level quality control services through Mortgage Dynamics Inc.
* Advisory services from Brook Systems to help members comply with the myriad of state anti-predatory and other lending statutes;
* REO Management Services from New Vista Asset Management, Inc., the nation’s only CRA-focused foreclosure disposition firm that can help banks quickly and responsibly sell their REO inventory in all major markets.
For more information on the ABA/Freddie Mac Alliance call 866-764-2083 or visit www.FreddieMac.com/singlefamily/aba.html.
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened the doors for one in six homebuyers and more than two million renters across America.
ABA Total Business Solutions offerings are provided via ABA Business Solutions, Inc., a subsidiary of the American Bankers Association. Leverage, access, and expertise mark the suite of products offered by ABA Total Business Solutions. Our relationships with best-in-class companies give you access to unmatched, high-value solutions providers in mortgage; card programs; capital markets; and commercial lending and business banking.
The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation’s banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $12.7 trillion in assets and employ over 2 million men and women.
President Bush announced on 8/31/07 that FHA will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default, to qualify for refinancing.
You can look to get a conventional loan or a sub-prime mortgage loan. You can also ask your lender for an FHA loan. Here are the many benefits.
Easier to Qualify - This is due to the fact that the FHA insures your mortgage, therefore lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.
Less than Perfect Credit - Even if you have had bad credit, bankruptcy etc., its easier for you to qualify for an FHA loan than a conventional loan.
Low Down payment - They have a low 3% downpayment, and that money can come from a family member, employer or charitable organization. Other loans don’t allow that.
Costs Less - MFHA loans have competitive interest rates because the loans are insured by the Federal Government.
Always compare an FHA loan with other loan types.
Categories
Archives
Meta
Calendar
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Jun | ||||||
| 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 |