A New Plan to Help Modify Second Mortgages

A New Plan to Help Modify Second Mortgages
The New York Times

WASHINGTON — The Obama administration sought to expand its $50 billion plan to reduce home foreclosures, announcing a new program on Tuesday to help troubled homeowners modify second mortgages or piggyback loans.

Under the new plan, the Treasury Department will offer cash incentives and subsidies to lenders who agree to substantially reduce the monthly payments on second mortgages or forgive those loans entirely.

Feeling Secure, Some Banks Want to Be Left Alone
The New York Times

As Washington pushes banks to mend their finances, the banks are pushing back.
Emboldened by newfound profits and eager to shake off federal control, a growing number of banks are resisting the Obama administration’s proposals for fixing the financial system.

Lenders that skirted disaster only months ago with the help of taxpayer dollars are now balking at government prescriptions.

Protesters disrupt foreclosure auctions in Sacramento
The Sacramento Bee

Protesters disrupted several foreclosure auctions Tuesday on the Sacramento County Courthouse steps, winning a temporary cancellation of one and sending an unidentified auctioneer to the hospital with chest pains.

Bidders on dozens of foreclosed Sacramento-area homes, all declining to provide their names, called the ACORN protest the first major disruption of an established auction schedule that plays out every weekday at the courthouse following 37,000 foreclosures in the capital region since January 2007.

Some foreclosures caused by clerical errors, lost documents
WKOWTV

SUN PRAIRIE — Three years ago, Terrence Moore was planning a family reunion in the backyard of his dream home.

Today, he's preparing for the Sheriff's Sale.

Minnesota's foreclosure wave moves upscale
StarTribune

The face of foreclosure in Minnesota is changing.

In a report to be released today, the Minnesota Home Ownership Center in St. Paul said most of those who sought foreclosure counseling through its network last year held prime mortgages, not the subprime mortgages that launched the foreclosure wave. Half gave lost or reduced income as a reason.

U.S. mortgage applications drop to mid-March low
Reuters

NEW YORK, April 29 (Reuters) - U.S. home loan applications fell last week to the lowest level since mid-March, driven by a big drop in refinancing demand even as mortgage rates clung to record lows, according to the Mortgage Bankers Association on Wednesday.

Refinance applications fell 21.9 percent in the week ended April 24, overwhelming the 0.6 percent dip in home purchase loan requests to drag the trade group's total loan index down 18.1 percent.

Concerns Over Lawsuits Hold Up FHA Nomination
The Washington Post

A Senate Banking Committee vote to confirm David H. Stevens as head of the Federal Housing Administration was postponed yesterday after concerns were raised about lawsuits involving Long & Foster, the Washington-area real estate brokerage where Stevens has been president for seven months.

The federal lawsuits allege that Long & Foster violated federal anti-kickback laws through its lending arm, Prosperity Mortgage.

New rules for Fannie, Freddie appraisals
Inman News

Many lenders aren't prepared to comply with new rules going into effect Friday governing appraisals on loans to be purchased by Fannie Mae and Freddie Mac, according to a company that offers software for managing the appraisal process.

Lansdale, Pa.-based Global DMS LLC says many lenders assume that if they are using an appraisal management company, they will be in compliance with the Home Valuation Code of Conduct Fannie and Freddie are implementing May 1.