Today’s News Synopsis:
Mortgage applications dropped 2% from last week, according to the MBA. CoreLogic has developed a tool to determine whether borrowers are overstating their income. A small business tax rule has been reversed by Congress. Borrowers will no longer be excluded from 3 of the 4 Keep Your Home California programs just because they took out a home equity line of credit or did a cash-out refinance.
In The News:
Mortgage Bankers Association – “Applications Decrease in Latest MBA Weekly Survey” (4-6-11)
“Mortgage applications decreased 2.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 1, 2011.”
MDA DataQuick – “Use of FHA Loans Declines; VA Loan Use Up from Last Year” (4-4-11)
“In February, 33.3 percent of the purchase mortgages used in those 20 metro areas were FHA-insured, down from 34.2 percent in January and 38.2 percent in February 2010, according to San Diego-based DataQuick Information Systems. Last month’s figure was the lowest since FHA loans made up 33.0% of the purchase loan market in November 2008.”
Inman - “CoreLogic tools automate income verification” (4-5-11)
“Data aggregator and analytics company CoreLogic is offering mortgage lenders free 30-day trials of its real-time income validation tool, IncomeAdvisor. IncomeAdvisor is designed to help lenders determine whether borrowers are overstating their claimed income”
Los Angeles Times – “Tax rule that would’ve hurt small business is repealed” (4-6-11)
“All businesses would have had to file tax forms for every person or company with whom they did more than $600 worth of business in a year. Small businesses protested, saying they would be buried in paperwork, so Congress is reversing course.”
San Francisco Chronicle - “Mortgage aid offered to those who cashed out equity” (4-6-11)
“The California Housing Finance Agency said Tuesday that people will no longer be excluded from three of the four Keep Your Home California programs just because they took out a home equity line of credit or did a cash-out refinance.”
Housing Wire – “Undercover investigation reveals mortgage scammer tactics” (4-6-11)
“Four fair housing organizations released findings Wednesday from a yearlong undercover investigation uncovering loan modification scammer-tactics victimizing homeowners.”
One year ago, a Fannie Mae survey showed that approximately two-thirds of Americans still preferred to own a home. Independent mortgage bankers and subsidiaries made an average profit of $890 on each loan they originated in the fourth quarter of 2009. The National Bankruptcy Research Center claims that bankruptcies could total over 1.5 million in 2010. According to Reis Inc, rent prices declined by 1.6 percent from 2009.
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