Trademark News- Feb 2010
PMI Forecast Puts Long-Term Rates at 6% by Year-End
Mortgage interest rates for 30-year fixed loans are projected to hit 6.00 percent by the end of 2010, according to the latest Housing & Mortgage Market Review published by the PMI Group, Inc..
Although more homebuyers are expected to enter the market, PMI says total mortgage originations will drop off significantly, led by a huge decline in refinancing as interest rates head higher. Overall, PMI projects mortgage originations to fall by about 13 percent to $1.70 trillion. Purchase originations should climb by 33 percent to $884 billion, but refinance activity is expected to plunge by 37 percent to $816 billion, bringing the refi share down to less than half of all originations. (In 2009, refinances consistently made up about 75 percent of mortgage applications.) -DS News.com
Temporary Waiver of FHA 90 Day Seasoning
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or
properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices
and to revitalize neighborhoods and communities.
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.
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Trademark Title Services, Inc.
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