Home Mortgage Loan Solution

July new US home sales up 9.6 percent

2009-09-04T10:56:00.000-07:00

WASHINGTON (AP) -- Sales of new homes surged 9.6 percent in July, another sign the housing market is climbing back from the historic bottom it reached early this year. Driven by falling prices, the fourth-straight monthly increase was greater than expected.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly 70 percent from the frenzied peak four years ago.

The median sales price of $210,100, however, was down slightly from $210,400 in June and was off 11.5 percent from year-ago levels. Prices are still up from March's low of $205,100.

Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.

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Missing Paper: How Mortgages Were Bundled Up and Sold As Securities

2009-09-04T10:28:00.000-07:00

A friend of mine sat down one day and described to me the whole process of how Mortgage Loans were bundled up and sold as securities. Very interesting process. The clencher is, what mistakes were made along the way? The problem with the mortgages is in the "missing paper" trail. Mortgage lenders are having difficulty producing documentation proving they own the properties in attempt to foreclose.

Here is a link to an Associated Press explanation: Mortgage Process

Some lawyers for homeowners in foreclosure cases are challenging lenders to produce the original mortgage note -- something that is proving difficult, if not impossible to do because lenders have bundled and resold mortgages over and over in the past few years.

1. Investment banks and financial institutions create mortgage securities and Collateralized-Debt Obligations to sell to investors.

2. In any given mortgage security, there will be some loan defaults. It is difficult to determine the percentage of which mortgages will go bad.

3. This uncertainty makes their value equally difficult to determine, so investors refuse to invest.

4. Investment firms become stuck owning securities they could easily sell during better economic times.

5. Saddled with poorly performing securities, and having few healthy options for investors, these investment banks fall from favor. Investors redirect money away from them and into safe havens such as US Treasury Bills. Other lending entities are less likely to lend to investment banks, due to the uncertainty.

6. The reduction of money in the system, combined with a general feeling of mistrust in the marketplace slows the velocity of money to a crawl. The constricted money flow can seep into the broader economy.

U.S. mortgage applications jump; rates at record low

2009-03-26T08:36:00.000-07:00

NEW YORK (Reuters) - U.S. mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing loans, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5 percent of all applications.

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Fort Worth Real Estate & Mortgage Solutions

2007-01-25T16:15:00.000-08:00

Fort Worth Real Estate & Mortgage Solutions is a full service mortgage company. We offer conventional, FHA, VA, Jumbo and construction financing. We cater to all of our buyers and are dedicated to excellent customer service and repeat business from our customers. We thrive on making the customer happy. Our goal is to receive at least three referrals from our customers we have closed loans for.