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Replies (13)
- Kary L. Krismer, "Krismer"
- Contributions:2454
Joanna, you realize what you wrote is the spin put on it by the author of the article, right? The NAR president made no such admission--it's not a quote. It's just spin from a biased source.
And the program the spinner wanna-be news reporter is complaining about does not generate commissions directly. It allows people to stay in their homes, making commissions less likely.
And the program the spinner wanna-be news reporter is complaining about does not generate commissions directly. It allows people to stay in their homes, making commissions less likely.
- joannab3884866
- Contributions:204
It's still a stitch though.
- ldierkes
- Contributions:86
Not to muddy the argument with FACTS ......
This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at http://www.hud.gov/news/release.cfm?CFTOKEN=74094504&CFID=1775932&CONTENT=pr07-123.cfm.
News Release
HUD No. 07-123
Steve O'Halloran
(202) 708-0685
www.hud.gov/news/ For Release
Friday
August 31, 2007
BUSH ADMINISTRATION TO HELP NEARLY ONE-QUARTER OF A MILLION HOMEOWNERS REFINANCE, KEEP THEIR HOMES
FHA to implement new "FHASecure" refinancing product
WASHINGTON - President George W. Bush today announced that HUD's Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.
In addition, FHA will implement risk-based premiums that match the borrower's credit profile with the insurance premium they pay-i.e., riskier borrowers pay more. This common-sense, risk-based pricing structure will begin on January 1, 2008.
"Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled," said HUD Secretary Alphonso Jackson. "FHASecure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes."
The combination of FHASecure and risk-based premium pricing will permit FHA to return to the role it was originally designed to play, bringing stability to the real estate market by helping break today's cycle of foreclosures and price depreciation and creating much needed liquidity in the now-constricted mortgage market.
This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at http://www.hud.gov/news/release.cfm?CFTOKEN=74094504&CFID=1775932&CONTENT=pr07-123.cfm.
News Release
HUD No. 07-123
Steve O'Halloran
(202) 708-0685
www.hud.gov/news/ For Release
Friday
August 31, 2007
BUSH ADMINISTRATION TO HELP NEARLY ONE-QUARTER OF A MILLION HOMEOWNERS REFINANCE, KEEP THEIR HOMES
FHA to implement new "FHASecure" refinancing product
WASHINGTON - President George W. Bush today announced that HUD's Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.
In addition, FHA will implement risk-based premiums that match the borrower's credit profile with the insurance premium they pay-i.e., riskier borrowers pay more. This common-sense, risk-based pricing structure will begin on January 1, 2008.
"Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled," said HUD Secretary Alphonso Jackson. "FHASecure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes."
The combination of FHASecure and risk-based premium pricing will permit FHA to return to the role it was originally designed to play, bringing stability to the real estate market by helping break today's cycle of foreclosures and price depreciation and creating much needed liquidity in the now-constricted mortgage market.
- ldierkes
- Contributions:86
FHA has recently experienced a substantial increase in the number of conventional borrowers refinancing into FHA products. With FHASecure, it can help even more. The number of these refinancing transactions has tripled since the start of 2006. FHA's transactions are projected to surpass 100,000 loans by the end of the fiscal year. To date, these figures do not include refinances for delinquent borrowers.
The FHASecure initiative will operate under the same safe guidelines as the FHA's existing mortgage insurance program without affecting FHA's financial health. Eligible homeowners will be required to meet strict underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA's insurance fund at no cost to the taxpayer.
The risk-based insurance premium structure will further expand FHA's reach to additional underserved borrowers, particularly minorities and first-time homebuyers who have been disproportionately lured into exotic mortgages, and enhance the FHA's overall risk management. The move to risk-based premiums ensures that FHA remains on solid financial footing as a self-financed agency for the long-term.
FHASecure, like all FHA products, will be underwritten to ensure the borrowers have the ability to repay the loan, will require escrow for taxes and insurance, and will continue to offer unprecedented foreclosure prevention assistance. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.
To qualify for FHASecure, eligible homeowners must meet the following five criteria:
A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
Interest rates must have or will reset between June 2005 and December 2008;
Three percent cash or equity in the home;
A sustained history of employment; and
Sufficient income to make the mortgage payment.
The FHASecure initiative will operate under the same safe guidelines as the FHA's existing mortgage insurance program without affecting FHA's financial health. Eligible homeowners will be required to meet strict underwriting guidelines and pay a mortgage insurance premium, which offsets the risk to FHA's insurance fund at no cost to the taxpayer.
The risk-based insurance premium structure will further expand FHA's reach to additional underserved borrowers, particularly minorities and first-time homebuyers who have been disproportionately lured into exotic mortgages, and enhance the FHA's overall risk management. The move to risk-based premiums ensures that FHA remains on solid financial footing as a self-financed agency for the long-term.
FHASecure, like all FHA products, will be underwritten to ensure the borrowers have the ability to repay the loan, will require escrow for taxes and insurance, and will continue to offer unprecedented foreclosure prevention assistance. The FHA has never permitted and will not include pre-payment penalties or teaser rates that are common in exotic mortgages and have caused much of the current market troubles.
To qualify for FHASecure, eligible homeowners must meet the following five criteria:
A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
Interest rates must have or will reset between June 2005 and December 2008;
Three percent cash or equity in the home;
A sustained history of employment; and
Sufficient income to make the mortgage payment.
- ldierkes
- Contributions:86
"FHASecure is designed for families who are good borrowers but were steered into high-cost loans with teaser rates," said Assistant Secretary for Housing-FHA Commissioner Brian Montgomery. "These homeowners, many of whom are minorities, need a safe, affordable mortgage product that will help build wealth. All FHA borrowers pay mortgage insurance premiums to offset claims to the FHA insurance fund and ultimately prevent risk to the taxpayer."
FHASecure will also bring much-needed liquidity to the mortgage market. FHA anticipates more lenders will offer FHA-insured loans, pool them, and securitize them with the Government National Mortgage Association (Ginnie Mae), which has the full faith and credit of the U.S. government. This guarantee makes Ginnie Mae's mortgage-backed securities the safest on the market and helps to channel greater capital into the housing market, benefiting U.S. homeowners.
Since its inception in 1934, FHA has helped almost 35 million people become homeowners, making it the largest insurer of mortgages in the world. The 109th Congress introduced the Expanding American Homeownership Act in June 2006 which would enable FHA to be a safe option for more underserved low- and moderate-income and minority families so they can achieve the American Dream of homeownership. Today, President Bush also urged Congress to quickly pass the Administration's FHA modernization proposal to help more families in need.
For more information about FHASecure and other FHA products, please call 1-800-CALL-FHA or visit www.fha.gov or www.hud.gov. For a list of your local homeownership center or a HUD-approved housing counseling center, go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
FHASecure will also bring much-needed liquidity to the mortgage market. FHA anticipates more lenders will offer FHA-insured loans, pool them, and securitize them with the Government National Mortgage Association (Ginnie Mae), which has the full faith and credit of the U.S. government. This guarantee makes Ginnie Mae's mortgage-backed securities the safest on the market and helps to channel greater capital into the housing market, benefiting U.S. homeowners.
Since its inception in 1934, FHA has helped almost 35 million people become homeowners, making it the largest insurer of mortgages in the world. The 109th Congress introduced the Expanding American Homeownership Act in June 2006 which would enable FHA to be a safe option for more underserved low- and moderate-income and minority families so they can achieve the American Dream of homeownership. Today, President Bush also urged Congress to quickly pass the Administration's FHA modernization proposal to help more families in need.
For more information about FHASecure and other FHA products, please call 1-800-CALL-FHA or visit www.fha.gov or www.hud.gov. For a list of your local homeownership center or a HUD-approved housing counseling center, go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
- joannab3884866
- Contributions:204
Here's to hoping that the media begins publishing more truths about a system driven on greed.
- fugu
- Contributions:47
There are plenty of sources of information it is not surprising that a trade group has its own perspective.
- Don Rudow, "Don.C"
- Contributions:21
The Georgia Association of Realtors is being investigated by the State Ethics Commission for violating political contribution laws.
One comment worth making: any industry that spends millions upon millions of dollars trying to influence politics is doing so to try and reduce competition within their industry (of course they will spin their efforts in as positive a light as possible for self promotion). The NAR is battling the increased competition brought on by technological change over the past 15 years, making it easier (i.e. less costly) to distribute information. They used to have monopoly powers on the industry via the MLS database. But now, with discount brokers, the internet, and For Sale By Owner companies the NAR faces much more competition than it used to. Otherwise they would have no reason to fall back from the old 7% commission rates of yesteryear. Still, 6% is a huge additional cost added onto the transaction.
Things are changing Joanna, slowly but surely. We are all greedy though. That is just human nature. LOL
One comment worth making: any industry that spends millions upon millions of dollars trying to influence politics is doing so to try and reduce competition within their industry (of course they will spin their efforts in as positive a light as possible for self promotion). The NAR is battling the increased competition brought on by technological change over the past 15 years, making it easier (i.e. less costly) to distribute information. They used to have monopoly powers on the industry via the MLS database. But now, with discount brokers, the internet, and For Sale By Owner companies the NAR faces much more competition than it used to. Otherwise they would have no reason to fall back from the old 7% commission rates of yesteryear. Still, 6% is a huge additional cost added onto the transaction.
Things are changing Joanna, slowly but surely. We are all greedy though. That is just human nature. LOL
- joannab3884866
- Contributions:204
Don......very well-stated.
- Callista, "warriorprincess"
- Contributions:681
As a pretty busy person who is ...uninterested.. in the nuts and bolts of the home buying process (points, documents..blah blah blah) I do hope there will always be services that can walk you through that. Six percent seems a little steep to me (in Ca that could be like 30-40,000$), so I would be glad to see some competition bring that down. Being an RE agent does not require a PHD, the commision percentage should reflect that. I really would preffer to use an agent, but I would also preffer to pay that person hourly.
- joannab3884866
- Contributions:204
"I really would preffer to use an agent, but I would also preffer to pay that person hourly."
Yes, hourly wages or an "authentic" flat fee.....not a %...would be more in line with what many home sellers/buyers today would prefer. (Actually the first time home buyers wouldn't like that since technically they aren't paying the agents at all. They figure that out years later when they go to sell their starter home!)
Yes, hourly wages or an "authentic" flat fee.....not a %...would be more in line with what many home sellers/buyers today would prefer. (Actually the first time home buyers wouldn't like that since technically they aren't paying the agents at all. They figure that out years later when they go to sell their starter home!)
- Kary L. Krismer, "Krismer"
- Contributions:2454
Don.C, the NAR doesn't own the MLS database (in fact there isn't a MLS database). And I'd guess that many discount brokers and agents are part of the NAR. You watch too much 60 Minutes.
- Don Rudow, "Don.C"
- Contributions:21
Krismer,
I don't know how zero minutes of watching 60 minutes is too much. So you say there is no database for the MLS? Interesting! LOL
Irrelevant issues aside, I could see all agents working off of a flat fee in the future. The pressure for lower transaction prices due to technological change is going to forcing something to give. Perhaps the broker-agent relationship is the breaking point. There may be simply too much overhead given the current model for RE professionals.
I don't know how zero minutes of watching 60 minutes is too much. So you say there is no database for the MLS? Interesting! LOL
Irrelevant issues aside, I could see all agents working off of a flat fee in the future. The pressure for lower transaction prices due to technological change is going to forcing something to give. Perhaps the broker-agent relationship is the breaking point. There may be simply too much overhead given the current model for RE professionals.
Why the NAR Has So Much Political Influence
"The National Association of Realtors Political Action Committee (RPAC) is one of the largest trade association PACs.
In 2006, RPAC contributed $3,752,005 to federal candidates (49 percent to Democrats and 51 percent to Republicans).
The same year, RPAC also raised $1,716,960 in political contributions (from individual donors of $200 or more)."
....and goes on to say......
"If you thought that there was nothing else that the NAR could do to discredit themselves further, you were wrong. In a recent press release, NAR president Pat Combs made it clear to everyone that the Association isn't looking out for public interests, but rather, their 6 percent commission check."
Here's the link:
http://efinancedirectory.com/articles/NAR_Admits_to_Initiating_Bush%27s_Mortgage_Bailout_Plan.html?ref=patrick.net
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