Monday, September 1, 2014

HUD Reverse Mortgages for Co-ops Unlikely

A long-awaited regulatory change that would open up the federal government’s reverse mortgage program to co-ops is unlikely to happen, presenting a problem for older New Yorkers.

“There is a huge class of older owners who have enormous equity in their apartments who would like to use some of that” for medical bills, building maintenance and other expenses, said Arthur I. Weinstein, a Manhattan lawyer and a vice president of the Council of New York Cooperatives and Condominiums, which represents about 2,300 co-ops and condos.
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    Times Topic: Mortgages

Most reverse mortgages are issued through the Home Equity Conversion Mortgage program, which is insured by the Federal Housing Administration, a part of the Department of Housing and Urban Development. Under this program, homeowners 62 and older can withdraw some of the equity in their homes as monthly cash payments, a line of credit or a lump sum disbursement. The amount borrowed, plus interest, insurance and fees, is due only when the owner moves out of the home or dies.

Single-family homes, multifamilies with up to four units, condominiums approved by HUD and manufactured homes that meet F.H.A. standards are eligible for these loans, known as HECMs. Co-ops are not.

Co-op advocates had expected that to change, however, largely because of a provision in the Housing and Economic Recovery Act of 2008 that permitted HECMs to be used for co-ops. HUD was charged with writing regulations to extend the program.

But Mary Ann Rothman, the executive director of the Council of New York Cooperatives and Condominiums, said her organization learned that HUD began drafting regulations a few years ago and then ultimately decided not to put them into effect, “which is terribly, terribly distressing to us.”

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Friday, August 29, 2014

Eastern Division James Clooney Tennis Mens 55 PPR Singles

1Berenbaum, DavidParamusNJEastern                                             New Jersey Region860
2Lurie, JonathanNew YorkNYEastern                                             Metropolitan Region                                             768
3Serebro, BorisWhite PlainsNYEastern                                             Southern Region702
4Titcomb, JohnLloyd HarborNYEastern                                             Long Island Region618
5Friedman, NeilNew YorkNYEastern                                             Metropolitan Region                                             578
6Kalina, JonathanFair LawnNJEastern                                             New Jersey Region526
7Ackerman, PhilipRensselaerNYEastern                                             Northern Region504
8Henderson, Jan MarkEast BrunswickNJEastern                                             New Jersey Region460
9Johns, MarkGreat NeckNYEastern                                             Long Island Region320
10Slott, JosephBrooklynNYEastern                                             Metropolitan Region                                             308
11Farley, Robert C.Saratoga SpringsNYEastern                                             Northern Region267
12Friedman, Eric DGansevoortNYEastern                                             Northern Region252
13Andersen, Glen A.WhartonNJEastern                                             New Jersey Region199
14Tanis, Robert J.Oak RidgeNJEastern                                             New Jersey Region192
14Dibiase, MatthewPittsfordNYEastern                                             Western Region192
16Brill, Steven C.Great NeckNYEastern                                             Long Island Region190
17Rolfe, Chevas WilliamAstoriaNYEastern                                             Metropolitan Region                                             138
18Gash, Gary M.White PlainsNYEastern                                             Southern Region133
19McGuire, Dennis J.WatervlietNYEastern                                             Northern Region132
20Hoffman, John B.New YorkNYEastern                                             Metropolitan Region                                             126
21Smith, Gerard J.Garden CityNYEastern                                             Long Island Region104
21Checa, Luis PNew YorkNYEastern                                             Metropolitan Region                                             104
23Stillman, RichardMountain LakesNJEastern                                             New Jersey Region102
24Boutillette, Michael J.SomersetNJEastern                                             New Jersey Region100
24Yonkers, Paul JSea CliffNYEastern                                             Long Island Region100
26Zacharczenko, NickBallston LakeNYEastern                                             Northern Region97
27MacArthur, WilliamClifton ParkNYEastern                                             Northern Region96
27Evans, Dwight R.WestfieldNJEastern                                             New Jersey Region96
29Kier, NelsonNew YorkNYEastern                                             Metropolitan Region                                             86
30Chavez, PeterCortlandt ManorNYEastern                                             Southern Region82
30Scheibner, Peter J.Stony PointNYEastern                                             Southern Region82
30Sussman, Gary A.Highland MillsNYEastern                                             Southern Region82
30Wilkinson, KennethBrooklynNYEastern                                             Metropolitan Region                                             82
30Dunning, Dennis J.PoughquagNYEastern                                             Southern Region82
35Weisberger, MikeNew YorkNYEastern                                             Metropolitan Region                                             67
36Moss, Paul S.New YorkNYEastern                                             Metropolitan Region                                             64
36Simel, Peter B.DouglastonNYEastern                                             Metropolitan Region                                             64
36Underwood, StevenMinoaNYEastern                                             Western Region64
36Hoekstra, MarkBaldwinsvilleNYEastern                                             Western Region64
40Eskenazi, JackLevittownNYEastern                                             Long Island Region48
41L'allier, JeanFlushingNYEastern                                             Metropolitan Region                                             27
42Coglietta, Fred F.Saint JamesNYEastern                                             Long Island Region14
43Neubauer, JohnPattersonNYEastern                                             Southern Region12
44Satterlee, Richard Thomas                                             BronxNYEastern                                             Metropolitan Region                                             4
44Darris, CranstonNew YorkNYEastern                                             Metropolitan Region                                             4
44Winnitzki, Walter J.ManhassetNYEastern                                             Long Island Region4
44McIntyre, Mark J.New YorkNYEastern                                             Metropolitan Region                                             4
44Cooper, Judson AArmonkNYEastern                                             Southern Region4
44Wilkinson, Alan W.New YorkNYEastern                                             Metropolitan Region                                             4
44Harvey, MichaelBoca RatonFLFlorida                                             Region 64
51Eleby, LarryValatieNYEastern                                             Northern Region3
51Scammacca, MichaelWaterfordNYEastern                                             Northern Region3
53Silbiger, ThomasNew YorkNYEastern                                             Metropolitan Region                                             2
53Guernsey, Steve G.PoughkeepsieNYEastern                                             Southern Region2
53Greene, David L.LathamNYEastern                                             Northern Region2
53Uzelac, NikNew YorkNYEastern                                             Metropolitan Region                                             2
53Lease, JackNewburghNYEastern                                             Southern Region2
53Rudina, Solee E.Basking RidgeNJEastern                                             New Jersey Region2
53Smith, TheodoreCroton FallsNYEastern                                             Southern Region2
53White, Edward F.AlbanyNYEastern                                             Northern Region2
53Hickey, TomHopewell Junction                                             NYEastern                                             Southern Region2
53Clooney, Jamesoyster bay coveNYEastern                                             Long Island Region2
53Crane, John LindsayNew YorkNYEastern                                             Metropolitan Region                                             2
64Schneider, David I.SpringfieldNJEastern                                             New Jersey Region1
64Motta, JamesBallston SpaNYEastern                                             Northern Region1
64Hubsher, MarshallSands PointNYEastern                                             Long Island Region1
64Whitman, Bruce NairnGreenwichCTEastern                                             Southern Region1
64Dowling, Robert ECastletonNYEastern                                             Northern Region1
64Prasad, NarayanNew YorkNYEastern                                             Metropolitan Region                                             1
64Wawrzyniak, PiotrForest HillsNYEastern                                             Metropolitan Region                                             1

Tuesday, August 26, 2014

ARM Mortgage Rates Reach The 2s; Reasons To Consider Adjustable-Rate Mortgages

Mortgage rates are at their lowest levels of the year and it's not just "permanent residents" who stand to benefit. Homeowners planning to move within the next seven to ten years have already locked in substantial mortgage savings.

With adjustable-rate mortgages in the 2-percent range, savvy homeowners are maximizing today's mortgage rates.

Refinancing to an ARM is increasingly common nationwide.

Adjustable-Rate Mortgages Can Be "Safe"

An adjustable-rate mortgage is a mortgage for which the interest rate can change over time. Commonly abbreviated as "ARM", the adjustable rate mortgage is the opposite of the fixed-rate mortgage.

Adjustable-rate mortgages are available for most common loan types. You can use ARMs for conventional financing via Fannie Mae and Freddie Mac; and with FHA loans and VA loans, too.

Only USDA loans prohibit the use of adjustable-rate financing.

Most often, an adjustable-rate mortgage works like this:

    For a fixed number of years, the mortgage rate remains the same. This initial period be 3, 5, 7, or 10 years.
    Every year thereafter, until the loan's 30th year, the rate adjust according to a pre-determined formula
    After 30 years, the loan is paid in full and no additional payments are due

The rules for how an adjustable-rate mortgage include two very important points. First, because the mortgage rate of an ARM doesn't change during its initial "teaser" period, during these first few years, an ARM behaves identically to a fixed-rate mortgage.

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Monday, August 25, 2014

Boom in 30-year mortgages as house prices spiral

ONDON: A record number of people are taking out 30-year mortgages as the result of spiralling house prices.
One in five of the 171,000 new loans taken out between April and June were for terms of more than 30 years, compared with 18pc of 148,000 loans in the first quarter, according to the Council of Mortgage Lenders.
The CML said the number of first-time buyers taking out a mortgage with a longer repayment period jumped to 28pc of all new loans, from 26pc in the first quarter. Ten years ago, just 4.5pc of all borrowers took out loans of more than 30 years, rising to 11pc at the end of 2007, before Northern Rock collapsed.
The CML said borrowers were finding it harder to meet monthly mortgage payments as a result of rising house prices and the prospect of higher interest rates, while tough new affordability rules were also pushing borrowers towards longer loans than the traditional 25-year term.
The quarterly data, which were the first since the Mortgage Market Review (MMR) came into effect on April 26, showed a 4,000 jump in the number of longer first time buyer loans to 22,600 in the second quarter compared with the first three months of the year.
In the four quarters before the MMR came into effect, the number of first-time buyers who took out loans of 30 years or more averaged 18,175. This suggests that a growing number of borrowers are spreading their payments over longer terms in order to lower their monthly payments and comply with the new rules. Extended mortgage terms are often seen as a sign of a property market under stress.
Ireland’s pre-crisis boom saw an increase in mortgage terms of 30 and 35 years, while Mark Carney, the Governor of the Bank of England and former Bank of Canada boss, worked with policymakers to reduce mortgage lengths from 40 to 25 years to cool Canada’s housing market. Longer term loans leave borrowers more vulnerable to house price falls, and adds thousands of pounds more in interest to a buyer’s mortgage debt. Bank policymakers have warned that longer mortgage terms put borrowers at greater risk of being forced out of their houses if they fall behind on their payments.
Andrew Bailey, the deputy governor of the Bank of England, told MPs last month that longer-term mortgages could leave people exposed once they hit retirement age.
“We have to watch this very carefully, because if mortgages extend beyond the point at which people’s income falls off, then we have a long-term problem,” he said.
The CML data showed that more people over the past year had remortgaged their homes with a loan that stretched out for more than 30 years. Almost 5.5pc of all remortgages in the second quarter were taken out for lengths of 30 years or more, suggesting that some borrowers are rolling out their debt well into retirement.

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Friday, August 22, 2014

Reverse mortgages can be godsend for seniors

When originators are considering adding a product to their mix, it’s only natural to consider the advantages to their business. But in the case of reverse mortgages, it’s also important to consider the advantages to the customer.

“First and foremost, there’s really no product in the world like a reverse mortgage,” says Jonathan Scarpati, vice president of Urban Financial of America’s wholesale division. “I don’t think there’s another product in the world that will allow you to borrow money and not make a payment. It’s a huge advantage to a senior. Many of these people don’t have the income to qualify for a loan – but this is based on age and equity. It allows them to tap into that equity without having to make a payment.”

Some seniors are leery of reverse mortgages because of horror stories about elders losing their homes. But those stories leave out one important fact.

“The only requirement of the program is for the borrower to pay their taxes and insurance. Even if you’re not in a reverse – if you don’t pay your taxes and insurance, the county’s going to take your house from you regardless,” Scarpati says. “So the requirements aren’t any more or less than any senior would have just living in a home.”

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Thursday, August 21, 2014

Mortgage Loan Rates Continue Downward Trend

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning. It noted an increase of 1.4% in the group’s seasonally adjusted composite index, following a rise of 2.7% for the previous week. Mortgage loan rates decreased on all types of loans last week.

The seasonally adjusted purchase index decreased 0.4% from the prior week’s report. On an unadjusted basis, the composite index increased by 1% week-over-week. The unadjusted purchase index decreased by 2% for the week and remains 11% lower year-over-year.

Adjustable rate mortgage loans accounted for 7.8% of all applications.

The MBA’s refinance index increased by 3%, after rising by 4% in the previous week. The share of refinancings increased from 54% to 55% of all applications.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.35% to 4.29%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.24% to 4.18%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.48% to 3.44%.

The contract interest rate for a 5/1 adjustable rate mortgage loan dropped from 3.24% to 3.10%. Rates on a 30-year FHA-backed fixed rate loan fell from 4.04% to 3.99%.

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Tuesday, August 19, 2014

The 2.9 percent mortgage rate: How to get it

A 2.9 percent mortgage rate sound great, but is it too good to be true?

Anyone looking for a home loan knows they want to get the best interest rate possible, but getting a great deal has a lot more to it than comparing rates at face value. The current rate for a 5-year adjustable-rate mortgage is roughly 2.9 percent but an ARM may not be right for you. To ensure you're applying for your most affordable option, there are several things you need to know in advance about mortgage rates.

Short- & Long-Term Low Rates

When you're looking for an affordable home loan, you need to know the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). If the acronym ARM leaves you a bitter taste in your mouth, you're not alone: Subprime ARMs played a significant role in the recent mortgage crisis.

ARMs often start with an interest rate lower than those of fixed-rate loans available at the same time. That low rate is set for a period of 1, 3, 5, 7 or 10 years, after which the rate is adjusted annually, based on an index specified in the mortgage agreement. Once that fixed-rate period ends, the loan's interest rate may rise significantly and leave you with mortgage payments much more expensive than you expected.

The type of loan that suits you best depends on the plans for your future, and you can read more about the differences between fixed- and adjustable-rate mortgages here. When you're thinking of buying a home, do your research well in advance of applying for a mortgage, and shop around for the best rates.

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