Tag Archives: Refinance

More underwater borrowers are choosing to refinance their mortgages under the Home Affordable Refinance Program than at any time since the government program launched in 2009, according to the Federal Housing Finance Agency. The regulatory agency released a report Monday that found total refinance volume up by 20 percent in May. The reasons why? According to the FHFA, record-low interest rates for 30-year fixed-mortgages couple with recent modifications to HARP to create the conditions for a refi boom.

Rallying investors by end of day Friday, JPMorgan Chase posted strong earnings from the second-quarter, with Home Affordable Refinance Program modifications helping boost income for the laggardly mortgage servicing unit year-over-year. For mortgage production and servicing, the financial institution fielded $604 million in net income over the second quarter, a figure that trumps a net loss of $649 million from the past year. Mortgage production rose to $931 million in pretax income for the lender.

Mortgage applications fell 2.1 percent from the week before, according to the Mortgage Bankers Association. The trade group found declines for applications amid new historic lows for mortgage rates. According to the MBA, average contract interest rates for home loans broke new records across the board. New lows for interest rates included the 30-year fixed-rate mortgage with conforming balances (3.79 percent), the 30-year loan with jumbo loan balances (4.05 percent), and the 15-year loan (3.15 percent). Five-year and one-year adjustable-rate mortgages likewise fell to a new low of 2.71 percent.

Overall, mortgage originations declined in April. However, originations for loans with high loan-to-value ratios have been on the rise the past few months with April as no exception, according to the latest data from Lender Processing Services. The percentage of non-FHA originations has also been on the rise since for several months, and it did not drop off in April. In fact, non-FHA loan originations have risen steadily since November 2011 when they took up 20.2 percent of total loan originations to 33.8 percent in April.

In Maryland, Sunrise Senior Living, Inc., is taking advantage of the recent refinancing boom. The real estate company has announced changes to its loan for Bethesda's Fox HIll assisted living community, noting that Sunrise has opted to refinance the existing mortgage.

Releasing data from May, the Obama administration's Housing Scorecard once again pointed to both signs of promise and reasons for concern

Mortgage applications decreased 6.7 percent over the week ending June 19, while interest rates also fell, finding new lows in some categories, according to the Mortgage Bankers Association. Refinances still make up a majority of applications ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô 78 percent for the week, slightly lower than the 79 percent share recorded the previous week. The amount of refinance applications fell 8 percent over the week. HARP 2.0 refinance applications stood at 20 percent three weeks ago but have been at 24 percent for the past two weeks.

A Michigan man pleaded guilty to defrauding SunTrust Mortgage Inc. on a $2 million mortgage. Robert Martin Tolentino, of Grand Rapids, Michigan, pleaded guilty in a federal court in Tallahassee, Florida. The plea was announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida. Tolentino applied in October 2006 for refinancing of his residential property on St. George Island. In the application, he falsely represented that his monthly salary was $48,000 to $60,000 a month.

If it becomes law, a Senate bill could increase the number of homeowners who refinance under the Home Affordable Refinance Program by up to 13 million. That's the consensus reached by professors with Columbia University Business School, which released the study on Thursday. The study sketched the likely effects of a bill recently co-sponsored by Sens. Barbara Boxer and Robert Menendez. Researchers said that new HARP modifications could lead to roughly $35 billion in savings for homeowners, a number that could help stem the rate of foreclosure activity nationally.

Demand for mortgages increased in May, according to a report released by Ellie Mae Wednesday. The Origination Insight Report for May 2012 showed that the average loan-to-value on closed loans jumped up above the 80 percent mark for the first time since the company began tracking in August 2011. Ellie Mae attributed the increase to an easing of LTVs on conventional refinances. The average LTV on conventional refinance in May was 72 percent, a slide up from April's 69 percent. Closed conventional refinances with LTVs of 95 percent or higher jumped up to 11 percent in May.