Smart Borrower Blog

Archive for the ‘Federal Loans’ Category

Is Obama’s Home Affordable Modification Program a Good Deal?

If you are in danger of default or delinquent on mortgage payments, you may wish to take advantage of the home affordable modification program that began in March. Although the program provides relief for home owners, what is little-known about the program is the damage that is done to your credit score. An article from Bloomberg gives us the information that everyone should be aware of when considering this program. What happens is this: When you apply for a loan modification, many of the large lenders, including J.P. Morgan Chase & Co. and Bank of America, report the loan modification... more »

HUD Requests a $798 Million Credit Subsidy

Recently, the Department of Housing and Urban Development (HUD) released its 2010 budget.   In their budget, they asked for a $798 million credit subsidy for the reverse mortgage program that is handled by the FHA.   HUD has never requested a subsidy of any kind.   It begs the question is the Home Equity Conversion Mortgage (HECM) actually working as it should?   In a report by ReverseMortgageDaily.com, the author consulted   the Congressional Justification Report to determine the reasoning behind the request. According to this report, HUD estimates that 121,000 new mortgage loans will be endorsed in 2010.... more »

Fannie & Freddie Tighten Lending Standards

According to the Wall Street Journal, Fannie Mae, in efforts to provide some stability in the mortgage market, have said that they will no longer guarantee mortgages on condominiums that are in buildings where fewer than 70% of the units have been sold.   Representatives Barney Frank, D., MA and Anthony Weiner, D., NY, have written a letter to the chief executives of Fannie and Freddie, warning them that the 70% sales threshold is detrimental to the market and could lead people interested in buying a condo away from new developments. In all truthfulness, you must look at both sides... more »