Mortgage & Refinancing Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Home Loans -- Federal Regulators Warn Lenders to Be More Careful


Federal banking regulators have recently expressed some concern over the housing market as home prices in the United States have risen to record levels. While homes are more unaffordable than ever for many people, the lending market remains strong, mostly because of the introduction of new, ever-more-flexible types of loans. While these newer loan types, such as the interest-only loan, make buying a home easier for some borrowers, they also propose a greater risk to the lender.

The lending market has been quite aggressive during the last five years, as investors and homebuyers have purchased real estate in record numbers. Buyers who are skittish about investing in stocks have put their money into real estate instead, and prices have climbed to record levels. Lenders have been all too happy to accommodate the long line of customers in their offices with an ever-increasing array of products. With hundreds of loan types available, nearly everyone can qualify for some type of mortgage today. The problem, as regulators point out, is that some of the more popular types of loans are inherently risky. Two such examples are the interest-only loan, and home equity loans that exceed 100% of a home's value.

The problem with such loans is that they are both issued under the assumption that home prices will continue to rise. Prices may continue to rise, but if they don't or worse, if they fall, lenders could find themselves in the ugly position of holding liens on property that is worth considerably less than the amount of the loan. As of yet, there's no sign of a crash in real estate prices, but foreclosures are up in both Texas and Florida, and this could be an indictor of more difficult times ahead for the lending industry. The banking regulators didn't issue any orders regarding how high-risk loans should be handled, but they did caution lenders to check the credit scores of borrowers carefully and to eschew or cut back on so-called "no-doc" loans, which do not require full documentation of a borrowers assets or income.

This should be of relatively little concern for the average borrower, who would probably think that such guidelines represent ordinary common sense. Unfortunately, common sense sometimes gets ignored during boom times in business, only to be remembered when buyers start to default on their loans. By that time, it's too late to do anything, and the stockholders are left with the debt.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Bankrate.com

Bankrate.com
Bankrate.com
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation ...

and more »


Pakistan launches mortgage refinance company amid housing shortage
Arab News
KARACHI: To address the country's chronic house financing issues, refinancing company Pakistan Mortgage Refinance Company was launched on Saturday with the aim of mitigating credit risk for banks by providing fixed-rate funds. The government of ...

and more »


Primex Mortgage Corporation Makes One Feel Confident with Mortgage Refinance in Gaithersburg and DC
Chicago Evening Post
Rockville, MD — (ReleaseWire) — 04/13/2018 –Primex Mortgage Corporation is the premier resource for mortgage refinance in Gaithersburg and DC. They also serve people in other communities, including Silver Spring, Bethesda, Rockville, Maryland, and ...



DEALSTREETASIA

IFC proposes $7.5m investment for 15% stake in Pakistan Mortgage Refinance
DEALSTREETASIA
International Finance Corporation (IFC), the private investment arm of the World Bank Group, has proposed to invest up to $7.5 million for a 15 per cent stake in Pakistan Mortgage Refinance Company Ltd (PMRCL), it said in a disclosure. With the ...



Get Support From Arizona Mortgage Refinance Specialists
Digital Journal
The best support you can get when looking for financing and refinancing services when buying a home in Arizona. Anyone interested in taking out a new loan with new terms is obviously interested in Arizona mortgage refinance information. This is the ...

and more »


CNBC

Spring hits the housing market as weekly mortgage applications rise ...
CNBC
A rise in the thermometer across much of the country last week may have been just the remedy for an ailing mortgage market. Mortgage applications increased 4.9 percent from the previous week, according to the Mortgage Bankers Association's seasonally ...
Mortgage Applications Jump 4.9 Percent Amid Spring Buying SeasonNewsmax

all 15 news articles »


Kenya: Environment PS Sunkuli Gets Down to Business of Cleaning Up Nairobi River
AllAfrica.com
The team said garbage would be cleared from all 85 electoral wards in Nairobi within 30 days, and a cleanup of Nairobi River would also start. More ambitiously, the team will oversee the launch of the Kenya Mortgage Refinance Company, which is at the ...

and more »


Construction Business Review

State-backed mortgage firm to deliver cheapest home loans
Construction Business Review
Treasury secretary Henry Rotich said on Wednesday that the government is engaging the private sector to establish the Kenya Mortgage Refinance Company, which will from next month begin raising capital ahead of its inauguration in February next year ...
Treasury sets up financier for Uhuru's low-cost home loans planDaily Nation
Kenya to set up mortgage refinancing company to meet housing demandReuters

all 3 news articles »


Capital FM Kenya

Environment PS Sunkuli gets down to business of cleaning up Nairobi River
Capital FM Kenya
More ambitiously, the team will oversee the launch of the Kenya Mortgage Refinance Company, which is at the heart of delivering affordable housing. Affordable housing is part of the President's Big Four agenda of putting a roof over many more Kenyans ...



Daily Nation

Mortgage financing facility will boost affordable housing agenda
Daily Nation
The mortgage liquidity facility the government seeks to establish in a bid to promote affordable housing is key to stimulating growth and transformation of the housing development ecosystem. The Kenya Mortgage Refinance Company (KMRC) is expected to ...


Google News

home | site map
© 2006 TIGER MEDIA