Change in law to further thin mortgage brokers' ranks

Thousands of mortgage brokers in Iowa have looked for new careers as the housing market collapsed over the past three years, and a new Federal Reserve rule will likely drive even more of them out of the business of setting up homebuyers with loans. The Dodd-Frank Act ordered the Fed to create a rule that prohibits mortgage brokers and loan officers from making money based on a higher interest rate for the homebuyer - what's known in the mortgage industry as the yield spread premium. In January 2008, Iowa had 3,874 licensed mortgage...

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RBA Warns Australian Banks Lowering Mortgage Lending Standards

The central bank is warning that Australian lenders have begun to lower their mortgage lending standards as they seek to achieve the turbo charged pre financial crisis growth rates, an objective the RBA says is unrealistic. The Reserve Bank of Australia says that as lenders compete for new mortgage borrowers, they were increasing their maximum loan to valuation ratios. “Increasing competition in housing loans is starting to put pressure on lending standards,” the bank said. Smaller regional lenders, building societies and credit unions have...

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Federal Home Loan Bank of New York Announces 2010 Results

NEW YORK -- The Federal Home Loan Bank of New York today released its financial results for the year ended December 31, 2010. "The Bank posted a solid and consistent performance throughout 2010," said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. "The Bank continued to provide a reasonable dividend, build retained earnings, and provide the liquidity our local member-lenders need to support housing and jobs." Highlights from 2010 include: • Net income for 2010 was $275.5 million, and return on average...

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There May Be More Options For Loan Modifications Than You Think

By Lynn Ashton Despite problems within the modification program and with various servicers, homeowners are still being advised to look at these options as soon as difficulties arise as there are not only modification efforts in place but extension programs and housing assistance available directly from states that could help keep...

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New Loans Could Raise The Price Of Homeownership

by Chris Arnold Since the housing bubble collapsed, it's been harder for many Americans to qualify for a home loan. But soon, it might get even more difficult. The government is reshaping the mortgage market. And right now there is strong political support for requiring much bigger down payments for most home loans. Powerful congressional Democrats and Republicans support the move, as does the Obama administration. In a matter of weeks, federal regulators are expected to unveil new rules for home loans. The buzz is that the rules could translate...

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