FireDream

Some Tips if You’re Thinking About Buying the Family Homestead

August 22, 2008 – 2:53 pm
Do you ever miss the feeling you get when you go to your parents' house?  Somehow those weird ceramic owls that your mom made in the 1970s and those awesome stickers that you used to decorate your dresser all worked in creating that comfort that you only can get when you sleep in the same room that was yours in high school But here's my question: would you ever think about buying the place?  I found a great article from washingtonpost.com that addressed that very issue.  Believe it or not, it's not that unusual for adult children to purchase their childhood homes either from their parents directly or from the estate after their parents pass away. Depending on your circumstances, buying your family home can offer a lot of benefits and can be great for both you and your parents and/or siblings.  You know the neighbors, the local shopping locales, and all ...

Posted in Housing Options, Mortgage Laws, Real Estate | No Comments »

Texas-The Housing Mecca of the Nation?

August 12, 2008 – 10:02 am
Forbes recently reported what a lot of us Texans already know: that the Lone Star State is a great place to live.  In fact, out of the 40 major metropolitan areas surveyed, four out of the top ten cities in which to buy a home were in our great state. Noting our business-friendly environment that generates  "jobs and tax revenue", the four selected cities are as follows: Houston (number one), Austin (number two), San Antonio (number five), and Dallas (number six).  Houston was listed in another Forbes article published earlier this year as being one of the best cities for bargain hunters, and still another one which focused on tech cities.  Here in Dallas, we're seeing major business developments, expansions of our mass transit systems, and more companies moving in. Why did these cities make the list?  Affordable housing, good jobs, and cultural benefits are just a few of the items that Forbes ...

Posted in Housing Options, RateWindow, Real Estate | 1 Comment »

The Housing Bailout Bill Has Been Signed Into Law

August 11, 2008 – 9:01 am
A few weeks ago, I posted some information about the then-pending bailout bills which have now been signed into law.  The bill, I noted, was a divisive one both in Congress and among Americans. I also noted that a number of people who I talked to felt that bailing out homeowners who had entered into risky home loans was unfair to those who had used more wisdom in their mortgage loan decisions. In a recent Business Week posting, writer Chris Farrell echoed their sentiment-noting that it wasn't fair.  He did, however, determine that it was necessary.  Citing Milton Friedman and Anna Schwartz's A Monetary History of the United States, 1867-1960, Farrell notes that the Fed's actions (and presumably, Congress's) are shaped by the actions taken in the early 1930s.  When public confidence in banks fell and they withdrew their money, the Fed didn't, according to Friedman and Schwartz, break the "cycle ...

Posted in Foreclosure, Mortgage Costs, Mortgage Laws | No Comments »

The Housing Market is Moving Towards Recovery!

August 5, 2008 – 1:16 pm
Interesting news is coming out of California these days: home sales are beginning to increase.  According to a Bloomberg article, the Golden State may have found the bottom of the market and is now moving towards a form of recovery. Here's the deal: Calfornia led the way for a number of years in terms of exponential home price increases.  People were buying and flipping houses left and right.  Soon even tiny (as in 1000 square feet) homes in some areas of Los Angeles, San Francisco and other areas were selling or upwards of $1 million-a cost per squre foot unheard of in most of the U.S. In December of 2005, the market peaked and home values began to fall.  Those who bought homes at the top of the market anticipating rapid equity growth and a quick flip were stuck with houses that they couldn't afford.  Waves of defaults and foreclosures soon followed ...

Posted in Foreclosure, Real Estate | 2 Comments »

The Buzz From Real Estate Agents on the Housing Market

July 31, 2008 – 12:01 pm
I recently had the opportunity to attend Real Estate Connect, a conference that gives real estate, technology and other professionals a place to come together and talk about issues in our industry.  During the conference, I had the chance to talk with realtors from around the U.S. and Canada, and I thought that what they had to say was interesting. You'd think that, given all of the recent reports in the news and online, real estate professionals would be running for the hills and taking everyone in the mortgage industry with them.  After all, how could any of us stay in business when no one is buying or selling homes? The fact is, the real estate professionals that I talked to weren't dropping out of the market-they were pressing harder than ever.  They were excited about learning new technologies aand ideas that would help them increase the types and levels of service ...

Posted in Housing Options, Real Estate | 1 Comment »

Fannie and Freddie, Government Meddling, and the Celebrity Status of the Mortgage Industry

July 29, 2008 – 3:01 pm
Fannie and Freddie.  You've probably heard their names so often lately that some might think that they're the newest celebrity twins and are expecting to see their pictures on the cover of US Magazine.  Too bad that's not the case. A recent Reuters article gave a great explanation about Fannie and Freddie.  Here are some of the highlights: Fannie Mae, the Federal National Mortgage Association, was created in the late 1930s to spur homeownership.  Congress christened Freddie Mac, the Federal National Home Loan Mortgage Corp., in 1970 to further expand home financing options.  As explained in the Reuters article, the companies (which are owned by shareholders and traded on Wall Street) buy mortgage loans from lenders and repackage them as securities for investors.  Between the two, they are estimated to own or guarantee over $5 trillion in mortgage loans. For the most part, Fannie and Freddie have largely flown under the radar, ...

Posted in Housing Options, Mortgage Laws, Real Estate | 2 Comments »

Transparency and Homeowner Responsibility Can Change the Mortgage Business

July 24, 2008 – 11:28 am
"You looked hard to find the right house.  You negotiated the right price and shopped around for the best mortgage rate.  But you're not done shopping yet." So begins the article by Washington Post reporter Renae Merle, recently republished in the Chicago Tribune.  Noting that a study conducted by HUD early this year shows that minorities and those without college degrees, among others, pay higher closing costs, the article encourages homeowners to "eliminate junk fees and ask for discounts", do their research and really become involved in the loan process. Merle's other suggestions include frequently asking about the loan status, asking a lot of questions about the closing costs, and requesting a settlement a week before closing to review the costs. Wharton professor Jack Guttentag, also a Post contributor, thereafter wrote a column in which he at times praised the new Good Faith Estimate being redesigned by HUD and at other times calling ...

Posted in HUD, Housing Options, Mortgage Costs, RateWindow, Transparency | 1 Comment »

Transparency in the Mortgage Industry: What a Novel Idea

July 22, 2008 – 1:39 pm
After all these years in the mortgage industry, you'd think that I'd get tired of reading stories about our business and all of the changes in it.  But I have to admit that the advent of the internet and all of its easily-accessible information made my mortgage news addiction even greater.  And with all of the brouhaha of the last year, I'm surprised that I can tear my eyes away from the screen because there's something new popping up every minute. It was in one of my daily online news gathering moments that I found a story on CNNMoney.com with the headline: "A Plan to Jumpstart the Mortgage Market". Obviously, I'm a fan of jumpstarting the mortgage market and am, in fact, working daily to make just such a thing happen. As such, I read on to the subheading which began, "An industry outfit hopes that by making it easier for investors to ...

Posted in Housing Options, Mortgage Costs, RateWindow, Transparency | 5 Comments »

The Collapse of IndyMac Bank Didn’t Have to Happen

July 18, 2008 – 9:54 am
There are some times when I just have to shake my head.  One of those days was last Friday, when the Office of Thrift Supervision (OTS) issued its press release regarding the closure of IndyMac Bank and its transfer to the FDIC. In that release, OTS Director John Reich was quoted as follows: "Although this institution was already in distress, I am troubled by any interference in the regulatory process." Reich was referencing a letter written by Senator Charles Schumer (D-NY) to the OTS and the FDIC expressing his concerns about IndyMac, which was in the process of restructuring and pursuing a recovery after taking a significant hit over the last year.  Specifically, he wrote "IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers and...the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac or minimize the damage should such a failure ...

Posted in Foreclosure, Mortgage Costs, Real Estate | 2 Comments »

The Fed is Finally Working Towards Transparency in Mortgages

July 17, 2008 – 2:53 pm
On Monday, Fed Chairman "Big Ben" Bernanke announced that the Board had approved a final rule to amend Regulation Z (Truth in Lending).  In a prepared statement, Bernanke announced that the changes are "intended to protect consumers from unfair or deceptive acts and practices in mortgage lending, while keeping credit available to qualified borrowers and supporting sustainable homeownership."  He also noted that the rules will apply to all mortgage lenders. As written, the plan will, among other things, do away with no-income verification loans, limit (or ban) prepayment penalties, require lenders to consider the borrower's ability to repay the loan, and require mortgage advertising to contain information about rates, monthly payments and other features. I have to give the Board another pat on the back for one crucial decision that they made as part of the amendment process.  As reported by Sue McAllister in Mercury News, the Fed did decide not to support ...

Posted in Housing Options, Mortgage Laws, Regulation Z, Transparency | 1 Comment »