Mortgage rates TUMBLE November 25, 2008
Posted by loanarranger in Uncategorized.Tags: Countrywide, mortgage backed securities, mortgage rates, rates falling
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The Fed is finally buying some mortgage backed securities today —- so that means that mortgage rates could fall to 5.0% for a 30 yr fixed from some lenders today.
That’s good—however, Countrywide is finding that 60% of defaults are from people that own MORE THAN ONE HOME, and that high interest rates are not causing defaults, it is lack of income from loss of a job. Normally people can sell their home and start over, however, many find that they have no equity left in their home.
But do not intentionally stop making payments, your credit score will be devistated and there will be no remedies available.
Saving money November 24, 2008
Posted by loanarranger in Uncategorized.Tags: Black Friday, sales, save money
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There is NOTHING I like better — than saving lots of money during a sale. I used to be one of those people that got up at 6AM on Black Friday to hit all the sales. However, these days there is nothing more out there I need. However, I love to look at all the sales—after all, there has to be something on sale that I really need, but didn’t know it!!!
This year, you may not even have to wait until Nov. 28 to start saving. Retailers are fearing the worst about the economic slump and already rolling out the deals to entice shoppers. Visit http://blackfriday.gottadeal.com
One note: It’s called Black Friday because retailers spent most of the year losing money (aka being in the red) and traditionally only started making money (aka being in the black) on this day. Visit www.BFAds.net for further information on sales.
More Bailouts ahead? November 24, 2008
Posted by loanarranger in Uncategorized.Tags: bailout, bank failure, citigroup
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Well–we taxpayers are now part owners of CITIGROUP. Most of the reports were that we gave them another $20 BILLION today —what wasn’t mentioned is that we taxpayers also (did something we have not done for other banks) guaranteed over $300 BILLION of TOXIC LOANS.
One article today says that the Government has now pledged in bailouts and guarantees—about 7.7 TRILLION since this mess started==or $14,000 for every man, woman and child in the US.
The scary part is that this shows that we are just “throwing spaghetti on the wall” to see what sticks. So far, there is no one out there that has a clue on what to do.
Two more banks failed over the weekend–but still well below 100 for the year—no where near the 10,000 that failed during the depression(with FDIC in those days).
http://www.bloomberg.com/apps/news?pid=20601087&sid=arqqycIZzpZg&refer=home
The OBAMA EFFECT was supposed to kick in on Jan 20th because we would all be so happy again—but then, unexpectedly, he announced today that we could lose millions of jobs. Maybe he will not make us instantly happy === that is a scary thought.
this recession November 23, 2008
Posted by loanarranger in Uncategorized.Tags: end of recession, Obama, prediction, recession
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On this 45th anniversary of the assisination of John F Kennedy, I realize how “old” I am !! I just turned 60, and it seems I have now lived through periods of American History that about 30% of the population of the world has not experienced. Why is this important–because History does repeat itself.
The only real difference is that we now have the ability to do things in a vast, larger way. For example, with the atom bomb, we will no longer have wars that take years and kill millions. The bad thing is that countries could still kill millions, but now in minutes.
So now we have a recession — as a result of enormous greed by lenders, Wall Street, buyers, and sellers —all trying to make a fast buck. Some say this is just the same Greed from the Wall Street days of the 80’s and the Dot-com scam of the 90’s.
The Good News — I think it will be over by the end of 09. WHY — the nation is just as excited as it was when John Kennedy became president. Many on the National news media (TV, radio, Print) have convinced millions of people that Obama has some magical power or new ideas. Each night, the news programs hammer us with “worst drop in employment since the great depression, greatest negative polls numbers ever, Bush policies, consumer confidence worst ever, etc, etc”. The constant drumbeat has everyone depressed.
Here is what will happen — on Jan 2oth, the nation will become happy, hopefull, and resume spending. All of a sudden nightly news will report polls are all up, citizens are now happy, companies are hiring, Government is spending hundreds of billions in make work programs, gas prices are lowest in decades, prices are declining, interest rates a great, heating bills are falling, etc, etc, etc,,,
Why do I say this–because I watch the bond and stock markets all day and then tape all the national news programs at night(to see how they report the numbers). Right now there is a negative spin==and as soon as Obama takes over it will be all positive.
You may not believe it, but lets see how the attitude of everyone in the US(and maybe the world) changes, once the propaganda machines switch to positive spin. See you Jan 22 — I’ll still be celebrating on the 21st!
Auto bailouts November 21, 2008
Posted by loanarranger in Uncategorized.1 comment so far
WOW — Talk about exciting TV. For the past 2 days, we saw 3 CEOs from the Big 3 Auto Makers fly into Washington in their private corporate Lear Jets and get grilled on national TV by members of the US Senate and House.
What’s amazing, the auto companies are burning through 5BILLION dollars in cash per month, they all face bankrupcy, there are thousands of cars jamming all the ports of the US with no where to go because of a global slowdown, and we taxpayers need to give them at least 25 BILLION NOW!
We found out during questioning that the Union will not budge on their contracts, the CEOs (who make between 5 and 9 million) refuse to cut THEIR pay, and amazingly, none of the executives came with a PLAN on what they would do with the money!!
Why should they–we just gave banks 700 Billion, and they had no plan!
The US auto companies have been in trouble for at least the last 9 years. They were saved the last few years when Americans were DRUNK on spending their HOME equity money on new cars, monster trucks, and SUVs. This outrageous spending caused China, India and Russia to flourish, with out of site oil prices.
So Congress told the Big 3 CEOs to come back in a couple weeks with a PLAN !(Congress has to take another vacation because of all the work they did this week) Senator Levin(Michigan) was very upset and said we were now facing a DEPRESSION because we didn’t give them a blank check today. Thankfully, the taxpayers called enough congressmen to say how disgusted they are!
Can the CEOs come back with a plan—NO. We have to pay autoworkers, even if the plants are shut down (in the contract). Cars will not be selling in the next few weeks.
But even with no Hope or NO plan — we will give them Billions of taxpayer money (to save the jobs) Nevermind that the Big 3 has shut down Detroit area plants and moved them to Mexico and Canada!!!
Where are these bailouts going to quit? Are we moving to Socialism, where companies cannot fail? At least let us DUMB taxpayers know if you have a PLAN!! What do you think?
Bob’s Take on …. Mortgage modification November 20, 2008
Posted by loanarranger in Uncategorized.1 comment so far
Mortgage Modifications —- Every day we hear from the news and Congress that we must somehow modify current loans to provide for lower monthly loan payments to prevent more foreclosures. However, what you don’t hear — are the pros and cons and how the mortgage industry has adapted to take even more money from the unsuspecting homeowner.
Many companies like Countrywide and IndyMac are aggressively calling homeowners and offering modifications that truly do reduce the interest rate and monthly payment. Some typical offerings are a new 40 yr fixed loan at 3% and interest only payments to reach a 31% debt to income ratio for the borrower. I know–your thinking–that’s not fair, I played the game straight, got a 6% 30 yr fixed loan and no one is offering me a 3% loan!!!!
THE CON — Usually if you hear and see, non-stop advertising for something on the radio and TV about “helping” you with your loan — your internal radar should scream–SCAM! Especially adds where a lawyer is there to “help” you! For some reason, most companies want you to borrow the money from a relative (almost always only $3500), so you can save your home from foreclosure or “force” the lender to give you a modified loan. I personally receive 5 to 10 e-mails a day wanting me to join the bandwagon and “help” people in foreclosure by having them pay an upfront fee to some company. Here is a good article on this subject. http://money.cnn.com/2008/11/19/real_estate/For_profit_mortgage_modifications/?postversion=2008111912
What you should do — call your mortgage servicer (don’t talk to customer no-service), ask for the loan mitigation section. Even though current FDIC programs say you have to be 90 days behind on your payments, many lenders will modify early. Tell the person that you have a problem, explain the problem, and perhaps, they will propose a fix. You will have to send in documentation for your income. DO NOT MISS A PAYMENT ON PURPOSE — your credit score will drop at least 80 to 100 points.
Bob–the Loan Arranger
