The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) declined in the first three months of 2012 to 5.78 percent. This improvement ends two quarters of increases that began in Q3 2011, according to TransUnion.
Prior to Q3 2011, 60-day mortgage delinquency rates had dropped for six consecutive quarters. This latest quarter brings the delinquency rate to its lowest point since Q1 2009.
Between fourth quarter 2011 and first quarter of 2012, all but eight states experienced decreases in their mortgage delinquency rates.
House prices continue to face downward pressure and unemployment remains high, but many see the economic environment beginning to show modest improvement. Therefore, TransUnion’s forecast predicts mortgage delinquency rates to drift downward in 2012 as more homeowners are able to repay their mortgage debt obligations.
http://www2.realtoractioncenter.com/site/R?i=zZZnyKfImNyQ8PmnDIDvaA
The Los Angeles Times
The Consumer Financial Protection Bureau this week will unveil a prototype for a new monthly mortgage statement for consumers designed to clearly show important information from their servicer.
Read the full story
http://www.latimes.com/business/money/la-fi-mo-mortgage-statement-20120213,0,5870776.story
The New York Times
When borrowers choose a fixed-rate loan for a home purchase or refinancing, only one part of the monthly mortgage statement is ever likely to change: The escrow amount.
Read the full story:
http://www.nytimes.com/2012/02/05/realestate/mortgages-shrinking-the-escrow.html?_r=1&ref=realestate
The Los Angeles Times
The Consumer Financial Protection Bureau’s new mortgage complaint service is an extension of the agency’s existing hotline for credit card-related disputes and inquiries.
Read the full story
http://www.latimes.com/business/realestate/la-fi-harney-20111211,0,6604263.story
Closing costs can increase the price of a home by as much as $10,000, sometimes more. Borrowers who are “cash-poor” can ask for assistance, or talk to their lender about a lender credit toward closing costs.
Making sense of the story
- Some lenders advertise that if borrowers agree to accept a mortgage interest rate from a quarter to a full percentage point higher than they would ordinarily qualify for, they can receive credit toward their closing costs.
- These mortgages are sometimes called no-closing-cost loans, though the term is misleading. The credit usually covers only fees charged by the mortgage broker or bank, like the loan origination fee, the underwriting expense, and the appraisal. That generally leaves title insurance, mortgage-recording taxes, insurance, and escrowed taxes to cover.
- The amount of credit depends on total closing costs and other loan details. Generally, for every one-eighth of a point increase in interest rate, borrowers receive a credit worth half a percentage point of the principal amount.
- While these mortgages can be helpful to some, borrowers should carefully review all the details. There are pluses and minuses to these loan types. A downside is the higher rate and monthly payments remain in place through the life of the loan.
- Doing a side-by-side comparison of loans with and without the credit can be helpful.
Read the full story
http://nyti.ms/svzEBM
