The mortgage industry and the home financing guidelines have a long way to go before the credit markets will be out of trouble, but the road to recovery may be in sight as today we witnessed historic interest rates cut that sparked financial rallies worldwide. The Dow Jones industrials surged 360 points and broader indexes rose over 5% after the central bank said it will utilize “all available tools” to boost the financial systems of our economy. They also set its target for the interest rate at which banks lend to each other to a range of 0% to 0.25%, the lowest level on record.
Wall Street reacted positively with markets soaring Tuesday after the Federal Reserve’s historic decision to cut key interest rates again while providing considerable support to offer mortgage relief to the battered economy. According to Mortgage Rate News, the Fed cut led to mortgage lenders across the nation to reduce home mortgage rates as low as 5% for thirty-year fixed rate mortgages for conventional loan types.
The demand for long-term government bonds rose and caused yields to reach historic lows. The federal government made additional promises to promise to continue to buy bad credit mortgages in an effort to revive the struggling housing markets. Mortgage Brokers Network executive, Steve Park said, “The government commitment to protect struggling borrowers with new FHA loan program opportunities like, Hope for Homeowners should help restore consumer confidence and mortgage lending.”
According to Kelly Media Group president, Jason Cardiff, “The fact the lenders are willing to provide loan modifications to homeowners that do not qualify for traditional or FHA refinancing is simply remarkable.” Cardiff continued, “The interest rate cut by the Fed clearly signals a monumental step by the U.S. to restore trust in our financial systems that should spur more market recovery globally.” With Obama being nominated early in 2009, we can expect quick action from the President for predatory lending reform, government insured mortgage modifications and significant incentives for lenders who cooperate with short refinance loans, loan work-outs and additional foreclosure prevention measures.
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[...] news by unknown « Alternative Commercial Mortgage Lenders – Hedge Funds & Private [...] I appreciate all of your informative mortgage lender articles. The mortgage business is changing so fast that the few brokers left need to know exactly what products and mortgage lenders they can trust to work with.
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Mortgage modification is a solution that is frequently negotiated between our attorney’s and the lender’s loss mitigation department. Thanks for sending me helpful financing RSS feeds.
The most common loan modifications are listed below:
• Reducing the interest rate for first and second mortgages
• Lowering the principal balance of 1st and 2nd mortgages
• Converting an adjustable rate to a fixed rate mortgage
• Stretching the mortgage term to lower the monthly payment
• Negotiating with your Lenders to forgive the past-due payments
Check out our foreclosure prevention at http://www.loanmodificationoutlet.com
Comment by Loan Modification — December 17, 2008 @ 9:03 pm
When you commit to a mortgage loan, you want to be sure that you are considering the best possible home loan options for your credit credentials and your goals. You save thousands of dollars by locking into the best fixed mortgage. But with so many banks and mortgage lenders offering FHA lending products, the task of choosing which product best suits your needs becomes a difficult one.
- BD
Comment by Bryan Dornan — June 12, 2009 @ 11:37 am