St Louis Mortgage Refinancing and Financing For Customers News: New Foreclosure Plan Means Selling Off

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Big investors are showing interest in an evolving Obama administration plan to sell off foreclosed homes, although the government will have to make the offer sweet enough to coax private funds.

The White House is assessing how best to encourage private companies and investors to snap up foreclosed properties held by the government and convert them into rentals.

Officials want private partners to take over as much as $30 billion in single-family properties that are currently on the books of government-run Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).

Several money managers with large fixed income funds are interested, according to sources, and a request for ideas on how to construct a program received nearly 4,000 responses.

The foreclosure conversion program would come as the next step to complement other government supports for housing, including an expanded refinance program announced on Monday.

The main question for prospective investors, which include broker-dealers and firms already overseeing similar rental programs, is the type of financing the government will make available which is an issue officials are still struggling with.

“In order to get a better bid, there has to be some incentive involved to get qualified investors involved,” said Ron D’Vari, co-founder and chief executive of NewOak Capital. “The reality is not a lack of interest, but so far it looks like a lack of financing.”

Incentives could include low interest rates, tax benefits or some type of rental assistance, said D’Vari, a portfolio adviser who has been involved in mini-bulk auctions of real estate-owned properties, or REOs, in California.

REO properties are those acquired by a lender, whether a bank or the government, after an unsuccessful auction attempt. Fannie Mae, Freddie Mac and the FHA own about 250,000 properties, close to a third of the country’s REO pool.

One key challenge would be finding big enough blocks of properties in specific geographic areas that could be sold at one time. Analysts say this is what it would take to make the program attractive to large institutional investors.

The transaction and liability costs property managers will face as they try to bring deserted units back up to code also pose a hurdle.

The government also needs to determine how it will protect taxpayers, and it might explore ways to pair up with investors and allow Fannie Mae, Freddie Mac and FHA to keep some type of an ownership stake in the rental properties.

A public-private partnership, somewhat along the lines of a program the Treasury tried to use to soak up toxic bank assets during the financial crisis, would allow the government to gain from the sales.

Fannie Mae, Freddie Mac and the FHA have already undertaken some small efforts to reduce the backlog of foreclosed homes. They have donated a few vacant properties for demolition and have held some small auctions.

Having already received $141 billion in taxpayer support since being seized by the government in 2008, Fannie Mae and Freddie are under enormous pressure to make sure they maximize the returns from the properties they hold.

“This has got to be thought out. Fannie and Freddie would need to assess if they are getting the return they need from a rental,” said Ken H. Johnson, a real estate professor at Florida International University.

Johnson said one way to get over the hurdle would be for the two agencies to be given an explicit mission of market stabilization.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St. Louis Refinancing Loan and In-House Financing News: Move Houses, Not Mortgages

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Rep. Randy Neugebauer (R-Texas) said the Obama administration should be focused on helping the private market move through the backlog of foreclosures instead of merely shifting wealth from investors to borrowers in the new refinancing changes.

The Federal Housing Finance Agency (FHFA) announced new changes to the Home Affordable Refinance Program (HARP) designed to make it easier for some 4 million underwater borrowers, who are current on their payments, refinance into a lower-rate loan.

Most Republicans remained silent on the changes so far as they wait for how much the shift will cost Fannie Mae and Freddie Mac, which already owe taxpayers $142 billion in bailouts.

“This is not a housing initiative. This is more of a stimulus plan,” Neugebauer said. “They’re using Fannie and Freddie to stimulate the economy and what we’ve learned is that is not working.”

House Republicans sent a letter to FHFA Acting Director Edward DeMarco last week, asking for the taxpayer cost for HARP 2.0, but his office is still working on that. Fannie and Freddie are working too on the specific guidance for the revamped program, which was due out by November 15, but already many are doubting how effective the stimulus as Neugebauer calls it will be.

Neugebauer said the foreclosure process simply takes too long. According to Lender Processing Services, the mortgages currently entering the foreclosure process have been delinquent an average 611 days.

“We’ve got a lot of inventory in limbo here, and it continues to freeze the market place and compress prices,” Neugebauer said. Outside of new government cuts and calls to repeal certain provisions under the Dodd-Frank Act, ideas to fix the housing market and spur on a recovery have been scarce.

But Rep. Scott Garrett (R-New Jersey) unveiled a plan to ensure a return of private financing for future mortgages without government support. Neugebauer held several talks with Garrett when developing the plan.

While Neugebauer wouldn’t give specifics on the plan just yet, he promised it would provide a concrete plan, something the markets have gone without since the crisis. “I think a lot of the ideas are going to be common sense ideas,” Neugebauer said. “It will give the market some certainty.”

The Obama administration is working on a plan to better liquidate foreclosed properties held by the government through the Department of Housing and Urban Development (HUD), Fannie Mae and Freddie Mac.

Some, the president said Monday, would be converted into rentals. Neugebauer supported that idea so long as the government doesn’t dictate to private investors what should be rented, what should be sold and when.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St. Louis Mortgage Refinance and In-House Financing News: Olick Reports Changes to Mortgage Servicing Coming

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Robo-signing, lost paperwork and wrongful evictions have put mortgage servicers under the gun. Banking Committee Chairman Tim Johnson on Tuesday blamed servicers, in part, for stalling a housing recovery: ‘Homes that should move through the foreclosure process are held up because courts and servicers are concerned that paperwork has not been completed properly.’

To address the problem, lawmakers are considering a national standard for mortgage servicers. The four largest banks including Bank of America, JPMorgan Chase, Wells Fargo and Ally Financial have 60 percent of the servicing market. The industry is urging caution.

Servicers are already subject to a slew of new servicing rules from bank regulators, the FHA, Fannie Mae and Freddie Mac. And more could be on the way, as banks are in settlement talks with states attorneys’ generals.

Faith Schwartz, who heads up the industry-led Hope Now Alliance, says ‘it is important to understand the wide variety of rules and initiatives already in progress.’ One rule creates a single point of contact.

While it may sound simple, Schwartz describes companies having to complete intensive retraining of employees, so they can answer all consumer questions, instead of passing them from department to department. That has been a huge frustration for borrowers.

Dissatisfaction with the industry has grown in the last year, according to consumer-opinion surveyor JP Power. Much of it comes from borrowers who would like to refinance but can’t because falling home prices have left them without enough equity in the property or they can’t meet today’s tougher credit requirements.

Credit unions, independent and community banking groups want an exemption from a national standard, saying they were not part of the problem. Jack Hopkins, who is CEO of CorTrust Bank in Sioux Falls, SD, says his bank competes for loans by keeping the loans in-house, but to comply with rigid and over-prescriptive new rules could force them to exit the servicing business.”

This post was written by Stephanie Dhue, CNBC Real Estate Producer.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St. Louis Commercial Mortgage and Financing For Customers News: MBA Says Commercial and Multifamily Mortgage Delinquency Rates Down
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Commercial/multifamily mortgage delinquency rates among four out of five major investor groups decreased in the second quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Between the first quarter and second quarter of 2011, the 90+ day delinquency rate for loans held by FDIC-insured banks and thrifts decreased 0.25 percent to 3.93 percent.

The 60+ day commercial delinquency rate for loans held in life company portfolios decreased 0.02 percentage points to 0.12 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.18 percentage points to 0.46 percent.

The 60+ day mortgage delinquency rate for multifamily loans held or insured by Freddie Mac decreased 0.05 percentage points to 0.31 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) increased 0.25 percentage points to 9.43 percent.

The second quarter 2011 delinquency rate for commercial and multifamily mortgages held by banks and thrifts was 2.65 percentage points lower than the series high (6.58 percent reached in the second quarter of 1991).

The delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.25 percentage points lower than the series high (7.37 percent reached during the fourth quarter of 1993); the rate for multifamily loans held by Fannie Mae was 3.16 percentage points below the series high (3.62 percent, reached during the fourth quarter of 1991); and the rate for multifamily loans held by Freddie Mac was 6.50 percentage points lower than the series high (6.81 percent reached in 1992). The rate for loans held in CMBS was a record high for the series.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St. Louis Mortgage Refinancing and In-House Financing News: Fannie Apparently Knew About Robo-Signing In 2003
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In an announcement released as of late, mortgage financing giant Fannie Mae knew about allegations of improper foreclosure practices by law firms in 2003 but did not act to stop them according to a government watchdog.

There are similar allegations that have become the subject of an ongoing probe by state attorney generals into how mortgage lenders and law firms ignored proper procedures when handling large numbers of foreclosure paperwork.

The inspector general for the federal agency that regulates Fannie Mae said that an unnamed shareholder warned Fannie Mae of many alleged foreclosure abuses in 2003. Fannie Mae then responded by hiring a law firm to investigate the alleged claims in 2005.

Not surprising, the law firm reported in 2006 that it had found foreclosure attorneys in the state of Florida who were “routinely filing false pleadings and affidavits.” Fannie Mae officials said they revealed this to a government official about the law firm’s findings in 2006.

That unnamed official, who now works for Fannie’s regulator, the Federal Housing Finance Agency, conveniently said he couldn’t recall the conversation that the report spoke about. Selective memory? And should this person even be working in that capacity since his memory or word seems to be in question?

For obvious legal reasons, Fannie Mae began using a network of attorneys in 1997 to assist in handling foreclosures, evictions and bankruptcies. In 2008, the network grew to 140 law firms.

This additions was originally suppose to help  as the number of foreclosures in Fannie’s portfolio reached historic highs. In fact, foreclosures more than doubled from 2007 to 2008. It didn’t stop there. Foreclosures grew 49.6 percent in 2009.

In a belated move, in June 2010, FHFA officials went to Florida to study the foreclosure crisis. They found that the mortgage industry  in general was overwhelmed by all these foreclosures.

What was worse was that the average foreclosure processing time had grown from 150 days to more than 400 days and that lenders were facing flawed documentation from earlier abuses and that law firms were obviously not devoting enough time to these cases.

The worst offenses of all these practices, known collectively as “robo-signing,” led many lenders to completely suspend foreclosures last fall. And it has led to a continual investigation by state attorney generals in all 50 states.

Several states, including California, Delaware and New York, vehemently opposed a proposed settlement with the lenders. Their main complaint stemmed from the fact that all these lenders would receive total immunity from civil litigation under this maligned deal.

Fannie Mae and its sister company, Freddie Mac, currently own or guarantee approximately half of all U.S. mortgages. In other words, that equals nearly 31 million loans worth more than $5 trillion. And they by all accounts, it includes nearly all new mortgages that were made.

In September 2008, the Bush administration seized control of both these mortgage giants in hopes of stabilizing the housing industry. To avoid future mortgage fraud, the inspector general’s report says FHFA plans to overhaul its oversight policies by the end of 2012.

According to the St. Louis Refinancing Group news team, this scathing report is among several government inquiries into the aftermath of the housing crisis. But it won’t stop here. A broader report into the inexcusable missteps by Fannie Mae and Freddie Mac is soon expected.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

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St Louis Mortgage Broker and Consumer Lending News: Freddie Mac Sells Record Number of REOs
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Freddie Mac sold roughly 31,000 previously foreclosed and repossessed homes in the first quarter, a new record for the company as both government-sponsored enterprises shed inventory from the end of last year. 

Combined, both Fannie Mae and Freddie hold 218,000 REO properties as of the end of the first quarter, down from roughly 234,000 at the end of 2010, according to their filings. 

In the first quarter of 2011, Freddie holds roughly 65,000, compared to its larger sibling Fannie, which holds
153,000 REO in its inventory. 

While both GSEs made progress in cutting down this portion of the nation’s inventory of foreclosed homes, which continues to drag down home prices, inventory has elevated since one year ago. 

Both Fannie and Freddie held 163,000 properties in the first quarter of 2010, almost what Fannie holds currently by itself. 

Repossessions at Freddie increased by nearly 1,000 in the first quarter, and the holding period for these homes averaged 191 days before being resold.

This varies significantly from state to state, especially as servicers restart foreclosure processes in different areas of the country.

Servicers paused the process late last year to correct procedural problems. 

“We expect the pace of our REO acquisitions to increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers, as well as the transition of many seriously delinquent loans to REO,” Freddie said in its financial supplement.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St Louis Mortgage Refinancing and In-House Financing News: Fannie Mae Declares First Quarter Loss
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Fannie Mae reported net loss of $8.7 billion in the first quarter, including a $2.2 billion dividend payment to the Treasury Department.

The loss narrowed from $13 billion one year ago. 

Fannie said still falling home prices drove losses during the quarter.

The government-sponsored enterprise estimated home prices fell 1.8 percent during the quarter, even though some regions experienced gains. 

The mortgage giant’s regulator the Federal Housing Finance Agency (FHFA) requested $8.5 billion from the
Treasury to eliminate Fannie’s net worth deficit.

Fannie now owes the Treasury $99.7 billion and so far paid $12.4 billion in dividends. 

Fannie said if the market shifts away from refinancing as is likely to occur as mortgage rates rise, market
share will dip further. 

While business could be declining, legacy issues are too.

The serious delinquency rate on Fannie Mae loans dropped to 4.27% in the first quarter from 5.47 percent one year
ago and 4.48 percent in the previous period.

The company said modifications and other workouts, combined with foreclosures when other alternatives are exhausted, outnumbered new delinquent loans hitting its books.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease. Once your consumer is approved, your money is in your bank within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Beauty Supply and Avon – Kristin Tapia

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St Louis Mortgage Broker and Consumer Lending News: Mortgages Are Cheap… If You Can Get One
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According to the Federal Reserve, nearly a quarter of people who apply for home loans are turned down. The denial rates tell only half the story.

Many potential buyers aren’t even applying for loans because they assume they can’t get one according to St Louis loan experts. 

That shows up in credit scores for loans financed with backing from Fannie Mae and Freddie Mac.

The average credit score has risen to 760 from 720 a few years ago. For FHA loans, the average score has gone to 700 from 660.

Loans made to borrowers with sub-620 scores are almost nonexistent. 

Another factor keeping people out of the mortgage market is that lenders now require much more up-front cash. The median down payment for purchase is about 15 percent.

During the housing boom, it approached zero.  On most loans, banks want 20 percent down. On $200,000 purchases, that’s $40,000, an insurmountable obstacle for many young house hunters.

Or, in New York City, where the median home price is $800,000, buyers need $160,000 up front. 

Industry insiders say all these factors have reduced the pool of buyers, lowering demand for homes and hurting prices. 

“We feel it really reduces the demand for houses,” said Mike D’Alonzo, president of the National Association of Mortgage Brokers.

“It’s an unbelievable buyer’s market, but there hasn’t been as much activity as you would expect because not as many people qualify for loans.” 

And it’s about to get harder for buyers. Federal regulators proposed rules last week that are designed to discourage risky lending but that will also likely further restrict lending. 

Banks would be required to keep 5 percent of some loans, specifically those with less than 20 percent down payments, on their books rather than selling them all off as securities.

As a result, banks make be unlikely to issue loans where less than 20 percent is put down. So much for first-time buyers. 

“We think the new rules are appalling,” said the NAHB’s Howard. “Only the wealthy will be able to buy homes at low interest cost.” 

It could also further erode consumer demand for homes. 

The immediate impact, should the new regulations get adopted, should be minor, according to Steve O’Connor, spokesman for the Mortgage Bankers Association.

That’s because Fannie, Freddie and FHA loans are all exempt from the requirements and they represent more than 90 percent of the market right now. 

The government, however, wants to reduce the presence of all three agencies in favor of private lenders.

This may prove to be another fatal financial decision by the government as banking experts fear the long-term impact of abandoning the home lending field to mostly private companies.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease. Once your consumer is approved, your money is in your bank within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

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St Louis Loan and Consumer Lending News: Home Mortgage Applications Appear To Be Up
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The housing market was happy to see that mortgage applications increased 5.3 percent according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 15, 2011. 

The Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from one week earlier according to St Louis mortgage experts.

On an unadjusted basis, the Index increased 5.9 percent compared with the previous week. The Refinance Index increased 2.7 percent from the previous week.

The seasonally adjusted Purchase Index increased 10.0 percent to its highest level since December 3, 2010, driven largely by a 17.6 percent increase in Government purchase applications.

The unadjusted Purchase Index increased 10.9 percent compared with the previous week and was 11.4 percent lower than the same week one year ago.

“Purchase application volume jumped last week largely due to another sharp increase in applications for government loans. Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. 

He continues: “Refinance activity increased somewhat, as rates dropped to their lowest level in a month towards the end of the week.” 

The four week moving average for the seasonally adjusted Market Index is down 2.9 percent.

The four week moving average is up 2.5 percent for the seasonally adjusted Purchase Index, while this average is down 5.7 percent for the Refinance Index. 

The refinance share of mortgage activity decreased to 58.5 percent of total applications from 60.3 percent the previous week.

This is the lowest refinance share since May 7, 2010. The adjustable-rate mortgage (ARM) share of activity increased to 6.5 percent from 5.9 percent of total applications from the previous week.

For Fannie Mae and Freddie Mac mortgage lenders to approve a mortgage to finance the purchase of a condo, a large majority of the units, 70 percent, have to be already sold or under contract to individuals. Before 2009, the threshold was 51 percent. 

If more than 30 percent are still owned by the company that built the complex or sponsored its conversion from rental units, the mortgage will be denied, no matter how qualified the buyer is. 

Fannie and Freddie have also increased their emphasis on income relative to debt. 

If someone’s total debt payments exceed 45 percent of income, the mortgage will be denied. In 2009, the limit was 55 percent.

Some borrowers lost homes to foreclosure but then diligently rebuilt their financial health.

Despite high credit scores, ample assets and income and steady employment, lenders are not allowed to finance their Fannie Mae and Freddie Mac mortgages if their foreclosures happened any time within the past seven years. 

Before spring last year, the wait time was five years. 

Fannie and Freddie also have gotten stricter in how they factor in missed payments on credit cards, auto loans and other debts in which the balances do not have to be paid off every month. 

They used to be okay with a missed payment or two.

Now, one missed payment will hit your debt-to-income ratio, because banks will add 5 percent of your outstanding loan balance to the debt part of the calculation.

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Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease. Once your consumer is approved, your money is in your bank within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

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St Louis Refinance, In-House Financing and Principal Loan Reduction News: Regulators Push For 20 Percent Down Payments
St Louis Home Mortgage and Commercial Loans | Customer Financing | 314-334-0210 | Floyd Tapia, Commercial Lending, Consumer Finance and Loan Modification Consultant

The Dodd-Frank financial overhaul law enacted last year enabled regulators to define a so-called gold-standard residential mortgage that would be exempt from costly new rules according to St Louis mortgage brokers.

At least three agencies including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency have backed a proposal to require home buyers to put down at least 20 percent of the sales price in order to obtain one of these “qualified residential mortgages.”

One proposal would also require borrowers to maintain a 75 percent loan-to-value ratio for refinances, and a 70 percent loan-to-value for cash-out refinances in which the borrower refinances into a larger loan, according to people familiar with the matter.

Mortgage-finance giants Fannie Mae and Freddie Mac would also be exempt from the rules while they remain in conservator-ship, according to these people.

The United States government took over the firms in 2008, and the Obama administration has proposed eventually winding them down.

The behind-the-scenes debate over the proposal could have far-reaching implications for how Americans finance loans, because it addresses how much equity new borrowers should have in their homes.

It is unclear whether the proposal will garner support among other regulators and be acceptable to the White House and Congress.

Altogether, six federal agencies which includes the three supporting the proposal plus the Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency and the Securities and Exchange Commission (SEC) must sign off on the proposal before it is released for public comment.

It could not be determined whether all the agencies would support the 20 percent down-payment standard.

At a congressional hearing, HUD Secretary Shaun Donovan said no deal has been reached yet, and that any plan could instead spell out options.

At a separate hearing, Treasury Secretary Timothy Geithner said, “We’ve got to be careful that we get it right.”

He added, “I’m not sure how much longer it’s going to take, but it’s going to take a bit longer than we initially expected.”

Meanwhile, some lawmakers expressed concerns that the new rules might make it too hard for homeowners to qualify for less risky, and less costly, home loans.

Sen. Kay Hagan (Democrats, North Carolina) told Federal Reserve Chairman Ben Bernanke that several lawmakers “are really concerned about not making it so restrictive that we can’t have as many well-qualified loans as possible.”

The proposal was crafted in response to a provision in Dodd-Frank that aimed to improve mortgage-lending standards.

Loans that don’t meet the standards for “qualified residential mortgages” and are sold to investors as securities will be subject to a “risk retention” rule, which could raise borrowing costs for homeowners.

The risk-retention rule requires banks to keep 5 percent of the value of all mortgages they securitize on their books.

During the housing boom, many lenders passed on all of their mortgages, and all of the risk, to investors.

It was designed to force lenders to have “skin in the game” when selling groups of mortgages packaged as securities.

Critics of the risk-retention rule said it could raise costs for traditionally safer lending products such as long-term, fixed-rate loans with full income documentation.

A coalition of consumer advocacy groups and the real-estate industry have warned that defining the rule too narrowly could raise borrowing costs for millions of creditworthy borrowers.

Regulators must issue a rule defining “qualified residential mortgages” by April, and had initially planned to publish a draft proposal late last year.

But the process has been delayed by a disagreement about whether to include in the rule national standards for loan servicers, such as how to modify loans for troubled borrowers.

The new proposal reflects a compromise among the regulators to include some standards for how and when banks modify loans.

- Contribution by The Wall Street Journal

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Articles and Sponsors

Business Owners and Medical Groups: You can now offer customer financing and consumer finance programs to your customers and patients. We are the lender and have approximately $2.7 Billion dollars to loan. Best of all, there is NO risk, NO recourse and NO new equipment to lease for your and your company or medical group. Once your customer is approved, your money is in your bank account within 48 to 72 hours. Turn your credit declines into cash by calling Floyd Tapia at (314) 627-5729.

In addition, if you need commercial financing or a merchant account company that will save you money, Floyd Tapia and his lending and new business resources team can focus on bringing you innovative private lending solutions and financial services to meet all types of financing needs. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.

Check back daily for more financial news.

============================================

St Louis Beauty Supply and Avon – Kristin Tapia

In-House Financing, Consumer Lending and Customer Financing

To “read” the boxy black-and-white bar code above, you’ll need a smartphone. If you need a reader APP, you can => Download a QR code APP reader here for your smartphone.