15 Responses to “Rep. Frank – Mortgage Reform and Anti-Predatory Lending Act”

1. b-man Says:
   June 22nd, 2009 at 1:50 am

   The answer is right now, it is anyone's guess as to what is happening with the market, because the entire market is collapsing at the same time. I work for a very large conventional mortgage lender, and the ususal indicators that would point to rising/lowering rates are conflicting at this time.

   That being said, here is what is going on, or things you can follow that may help better answer your question:

   1. The dollar is weak – normally would mean rates increase, as this would help attract foreign currency, and push the value of the dollar back up, and thus lower rates in the long-run.

   2. Mortgage rates follow the 10-yr treasury index – long term mortgage rates typically follow the 10-yr treasury, and this is the best indicator of rate behavior from one day to the next. Rates will run anywhere from 2-3.5 points higher on average depending on other factors.

   3. Fed cuts do not equal mrotage rate cuts. This is the oldest myth in the books, but Fed ACTIVITY and DECISIONS can impact mortgag rates. Example, the last 3 fed cuts in 2007 pushed mortgage rates UP.

   4. Good news for the stock market is generally bad news for rates, as people take money out of bonds/treasuries, and dump it back into stocks, thus increasing yields.

   5. Recessions are typically good for rates, as people invest mroe in bonds/treasuries during these times, pushing yields down.

   6. Liquidity – or what people call demand – will affect rates. If there is no demand for mortgages on the secondary market (as there is right now) then rates go up, and vice versa.

   7. PMI companies – yes, these people have a big impact on mortgage programs and rates. You will not be able to finance 100% of a home anymore, at least not conventionally for some time, as the PMI companies will not insure them anymore. Also, two of the largest PMI companies in the US are not expected to make the end of the year, so expect rates – based on this alone – to increase, unless something else happens.

   8. Bear Stearns, and other such companies, that go under affect liquidity, and thus rates, and program availability, etc.

   As you can see, these are only some of the issues that affect rates. Right now the trend is upward, and it is anyone's best guess as to when it will stop. According to Greenspan's book, he sees rates going back into the double digits sometime in the coming years like back in the 80's.

   Also, a mortgage program that was available yesterday, may not be availabe in a week, or even tomorrow, and there is no control over this. We live in a free market, and therefore, these changes happen all the time.

   Also, the agencies (Fannie Mae and Freddie Mac) that govern conventional mortgages are implementing pricing adjustments that will affect everyone with scores less than a 710 pretty soon, so rates will be much higher for people with lower scores.

   Lastly, mortgage markets are forward-looking, and if the investors feel the news is bad, which it is right now, expect rates to reflect that. Inflation is increasing, and so will rates.

   I know that this may not directly answer your question, but I hope it helps.

2. blinkchick765 Says:
   June 22nd, 2009 at 2:28 am

   It is true that they may not be able to sell your loan.
   That isn't your problem.
   The servicer is just servicing for whoever owns it today.

   You may have an 80% 1st and a 20% 2nd (If you did 100% financing)
   It certainly IS possible that a different loan will be easier for them to sell, but you aren't going to know if it is better or not.

   Do they want to refinance both your 1st and 2nd into one loan OR just refi your 2nd ?

   You need to get some straight advice from an independent consultant. Find out what kind of loan they want to put you in and post the info here.
   Also post your current type of loans and interest rates and payment amounts, AND what your proposed loan, term rate and payments will be.
   You can only get the right advice if your provide ALL the info.

   You are NOT onligated to refi your loan. Many loan originators cannot sell 2nds today. Usually the 1st isn't the issue.
   If you are happy with your loan, don't be pressured.
   What state are you located in ??

3. davea0511 Says:
   June 22nd, 2009 at 2:23 am

   Ummmm … did I just hear him say it was a bi-partisian ammendment? That “much” of it came from a “significant” number of republicans?

   He’s sure changed his tone now.

   Incidentally the regulation was only needed because the Democrats had sculpted Fannie Mae and Freddie Mac into such powerful predatory lending institutions. – it’s no wonder why Obama received $32K per year in contributions from these agencies while McCain only received $1K per year.

4. msanchez007 Says:
   June 22nd, 2009 at 3:17 am

   Even if a state has a ceiling on the amount of closing costs a loan can have, Banks can go higher than that and they usually do.

   We do not need more regulation. We have enough. We have become so acustomed to be regulated that we need a permit for everything, signed in triplicates, and notorized. WTF!?

5. liveleaker Says:
   June 22nd, 2009 at 9:48 am

   I wuv Bwarney Fwank!

6. James D Says:
   June 22nd, 2009 at 9:52 pm

   Hi There,

   Try typing in 'home loan interest rates' or 'arizona mortgage' in your Google search engine and see which mortgage companies come up in the search. Then see what each company has to offer. If its unclear which links to follow, check out the search links that show up in the right hand column. If you have good credit, for the lowest rates, look for websites offering 'wholesale rates'.

   Keep in mind that interest rates are tough to compare between mortgage companies because they hinge on so many factors including your credit, term, and the type of loan you're interested in. Instead, focus on how much the mortgage company can lower your payment. Or, pay close attention to how long the company has been in the industry, client satisfaction rate, reliability, and trust. You can typically get a good idea of how a mortgage company is received by the public through client testimonials.

   If you have any questions, you can contact me directly. I hope this helps!

7. liveleaker Says:
   June 22nd, 2009 at 2:41 pm

   Stop being such a noob. There’s plenty of blame to go around on this, but to lay it entirely on the GOP’s doorstep is just plain old ignorant.

8. starwarzed Says:
   June 23rd, 2009 at 11:19 am

   the new mortgage company will order the PAYOFF ….usually done by the processor (the title company conducts closing not loan services)

   when they order the payoff the old mortgage company will let the new lender know if there is a prepayment penalty. Normally, you can find out yourself if you call them or view your old loan documents.

   I'm sure your old lender will know that you're refinancing when they see you have applied for a mortgage. You should be expecting calls from other lenders as the credit bureaus sell your information when you apply for a mortgage (called 'trigger leads').

   make sure to get on your old lender about the payoff. they usually take their time as they're hoping to 'retain' your mortgage with them instead of you going to a new company.

9. msanchez007 Says:
   June 23rd, 2009 at 3:27 am

   Yes thanks for Barney for fucking it up even more.

   Thanks for Barney for still trying to pass this absurd bill.

   The lenders have already almost eliminated sub-prime, 100+ subprime lenders have closed. So if the market has corrected itself and is still correcting itself, why do we need this law?

10. Deirdre B Says:
    June 24th, 2009 at 4:48 pm
11. CarolNV Says:
    June 24th, 2009 at 9:05 pm

    Interest rates fluctuate together with economy. Depending on what they were at the time of closing the loan, you may have chosen an adjustable rate loan or a fixed rate loan. That means that you get the benefit of keeping low interest rates or modifying the rates to a lower value if you have an adjustable rate loan. If, on the other hand, they were to rise to abnormal values, there is a maximum or “cap” to limit the incidence of rates on the loan. Read more http://refimortgage-online.blogspot.com/

12. Xiaobei Says:
    June 24th, 2009 at 9:53 pm

    Hello,
    There are several reasons to refinance. However, it really depends on your unique situation.

    Besides lowering their mortgage rate and monthly payment, the biggest reason people decide to refinance usually would be to consolidate debt, or take cash out their home or investment property (in other words borrow money against their home).

    Another reason, especially lately, is to refiance out of an ARM (adjustable rate mortgage) to keep mortgage payment from rising.

    Any of these would be a great reason to refinance. Hope this answers your questions. I've included a link to our refinance page for more information and scenarios for refinancing.

13. awreslr2 Says:
    June 24th, 2009 at 3:17 pm

    Thanks to the Democrats and to Barney Frank for acting on this! Of course, the Republicans just let this happen over the past few years!

14. msanchez007 Says:
    June 24th, 2009 at 6:42 pm

    Did he just say that originators from Banks haven’t been the problem? What an ignorant statement. Does he have real people gathering his facts or does he use Banks for this?
    Every State has regulations, and it’s really tough to comply with them, and I mean really tough. Guess who is not regulated by state regulations? Bank and thier employees, yes even though in NJ the state has a “no prepayment” law, Banks can put prepayments anyway, because they are Banks.

15. dinofernandez66 Says:
    June 25th, 2009 at 9:40 am

    find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)

    A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.

    Here is a website to find the average and best rates:
    http://www.bankrate.com/brm/default.asp

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