Fewer U.S. homes underwater as prices rise

Fewer U.S. homes underwater as prices rise More than 1.3 million U.S. homeowners who owed more on their mortgages than their homes were worth have regained equity this year,  Santa Ana-based data firm CoreLogic says. Increases in home values are giving homeowners not only more equity but the ability to refinance. Nationwide, home values saw the biggest annual …

Continue reading ‘Fewer U.S. homes underwater as prices rise’ »

Risk of Strategic Default Rising in Low-Risk Areas

Negative equity remains one of the biggest challenges for the housing market. For some borrowers it can become their rationale to stop making mortgage payments and intentionally default on the loan. The risk of such strategic default is rising among loans that have “always performed,” according to the credit analysts at Moody’s Analytics. They say …

Continue reading ‘Risk of Strategic Default Rising in Low-Risk Areas’ »

PMI Expands LTVs and Credit Scores in Distressed Markets

PMI Mortgage Insurance Co. is seeing signs of strengthening in markets the firm classifies as “distressed,” enough so that the private mortgage insurer is relaxing its requirements for loan-to-value (LTV) ratios and minimum credit scores. The California-based insurer issued a bulletin last week announcing that it is raising the LTV to 95 percent for both …

Continue reading ‘PMI Expands LTVs and Credit Scores in Distressed Markets’ »

Refinance Program for Underwater Borrowers Extended Through Mid-2012

The Federal Housing Finance Agency (FHFA) has pushed the cut-off date for the Home Affordable Refinance Program (HARP) out by a year. HARP is one of several mortgage aid programs under the administration’s Making Home Affordable umbrella. It allows homeowners who owe more on their mortgage than the home is worth obtain a new loan …

Continue reading ‘Refinance Program for Underwater Borrowers Extended Through Mid-2012’ »