Smart Borrower Blog

Archive for May, 2008

News From Washington

The bill lawmakers built to try to stem the tide of home foreclosures due to the sub prime mortgage crisis has passed the US House of Representatives by a vote of vote of 266 to 154.  The bill, designed to create a 300-billion-dollar federal guarantee for new mortgages for people who may be at risk of losing their homes faces a sure veto by Bush.  According to Democratic majority leader Steny Hoyer, “This legislation, in short, will expand the FHA (Federal Housing Administration) program so that borrowers in danger of losing their homes can refinance into lower-cost, government-insured mortgages that... more »

Reverse Mortgages – A Good Thing For Seniors

Probably about the only thing that isn’t getting hit by the mortgage mess is reverse mortgages backed by the FHA.  And especially the Home Equity Conversion Mortgage, or HECM.  It is a pretty good thing, too, because the news is always featuring some older person, retired and living on a fixed income, that has been able to pay the bills and live because of these mortgages.  The best thing I see about these mortgages is the fact that regardless of home value dropping or not, the owner is covered by the FHA backed insurance that is paid for at the... more »

News Around The Nation

There is a growing opinion that the housing market can only turn its way around by programs aimed at turning unaffordable mortgages into affordable ones on a large scale. Although you have to think that this is equitable, it gives reason for pause. The old axiom caveat emptor should rule here, as it has always done. It is not the responsibility of the lender to educate the buyer – it is up to the buyer to know what he is getting himself into. This does not mean that I condone unethical practices. The way I see this is if you... more »

Bank Of America And Countrywide

We all see a lot of news about Countrywide, and what this company has had to go through in the past year.  I think no one can lay all the blame at their doorstep, but surely their practices have not exactly been above board.  Their practices have after all been focused on making money, and when things were ripe, they did a good job of it.  Being in business means taking advantage of every situation that affects the bottom line.  Ask any business owner. Now, I read that BOA is saying that they will not be responsible for debt incurred... more »