Offering Auto lending, Business Lending, Investments, Mortgage, Realty, Title Services, Calculators, Rates and more, CU Companies helps Minnesota Credit Unions provide superior services at the lowest possible cost to their members.
Offering Auto lending, Business Lending, Investments, Mortgage, Realty, Title Services, Calculators, Rates and more, CU Companies helps Minnesota Credit Unions provide superior services at the lowest possible cost to their members.
Offering Auto lending, Business Lending, Investments, Mortgage, Realty, Title Services, Calculators, Rates and more, CU Companies helps Minnesota Credit Unions provide superior services at the lowest possible cost to their members.
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Home sales improve

Home sales continue to improve according to the November Minnesota Housing Report released by the Minnesota Association of Realtors. Many experts and those involved in the industry continue to note that lower inventory levels and increased absorption of the existing inventory are the keys to a housing recovery.

"Buyers are purchasing homes that are well priced and in good condition," said June Wiener, President of the state's largest professional trade association. "Housing affordability, low interest rates, increasing rents, and improving employment conditions all contributed to the strong results."

Closed transactions are a positive indicator of a stronger housing market. In November 2011, Minnesotans closed 11.2 percent more home purchases than were experienced in November 2010. Statewide, over 63,000 homes have been closed involving members of the Minnesota Association of Realtors. Year-to-date, homebuyers have closed on more homes than in previous years.
 
Mortgage rates fall to record lows

NEW YORK (CNNMoney) -- Mortgage rates sunk to record lows again this week.

The average rate on the 30-year fixed mortgage fell to 3.94%, matching the all-time low hit in early October, according to Freddie Mac's weekly mortgage rate survey. Meanwhile, 15-year fixed-rate loans hit a new record low of 3.21%, surpassing the record set on October 6.

Five-year adjustable rate mortgages also plumbed new depths, hitting 2.86% for the week.

"We've been hanging around record lows for a few months now and we finally hit another one," said Keith Gumbinger of HSH Associates, a provider of mortgage data.

Low-interest mortgages will be available at least through mid-2012, according to Freddie Mac's chief economist, Frank Nothaft.

The low rates can translate into big savings for home buyers. Five years ago, a home buyer would have been lucky to land a 5% rate on a 15-year loan. On a $200,000 mortgage, that would have meant the borrower would have paid $1,582 a month. Should a borrower land a 3.2% rate on a $200,000 loan now, the monthly mortgage payment would come to $1,400 -- a savings of $182 a month.

Mortgage rates tend to closely track Treasury bond yields, which have also been very low lately. For the past three months, 10-year Treasury notes have often fallen below the 2% mark as bond investors steer clear of Europe and its debt woes and buy U.S. Treasuries instead.

"There's been a flight to quality out of Eurobonds and into Treasuries," said Gumbinger. On Thursday, the 10-year Treasury stood at 1.92%.

The rock-bottom interest rates, combined with the lowest housing prices in years, have made home buying extremely affordable right now. Although most borrowers are looking to refinance existing loans rather than buy.

Last week, mortgage applications climbed 4.1%, driven by a surge of home buyers trying to refinance to record-low rates. According to the Mortgage Bankers Association's latest Market Composite Index, close to 80% of loan applications were to refinance existing loans.  To top of page
 
HUD Offers REO Homes for $100 Down in Select States
HUD has approved a program aimed at putting foreclosed homes back into the hands of owner occupant buyers. In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.

The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

The $100 down payment incentive program has been approved for two of HUD's four national regions - the regions managed by the Denver Homeownership Center and the Atlanta Homeownership Center. HUD homes in the states listed, as well as the Caribbean are currently eligible for the program.

See complete article from DSNnews.com here http://tinyurl.com/3jchfqj

 
 
New HARP Guidelines Released
Last week the new Home Affordable Refinance Program (HARP) guidelines were released by the Federal Housing Finance Agency. The updated program is meant to give "underwater homeowners" an opportunity to refinance at today's low mortgage rates. After reviewing the details, CU Companies has determined it will participate in the program.

We will begin taking HARP applications on December 1, 2011. Because Fannie Mae's Desktop Underwriter will not be updated until March 2012 to accomodate the changes, we will manually underwrite applications for 30-year fixed loans. This means the borrower can be approved but will not be able to lock into an interest rate until February 2012. It also means more documentation will be necessary. (Borrowers interested in refinancing into a 15-year fixed loan via HARP will have to wait until June 2012.)

There were several individuals that contacted CU Companies in November when the anticipation of the new HARP guidelines was announced. We will notify them of the details and also provide a manual application and the checklist of documents needed.

The main aspects of the updated program are bulleted below. A key point, however, is that the mortgage loan must have been sold to Fannie Mae (or Freddie Mac) on or before May 31, 2009. If you portfolio your mortgage loans, you will obviously have individuals that are automatically ineligible for this program. The web sites to assist consumers in determining who owns their mortgage loan are www.fanniemae.com/loanlookup and www.freddiemac.com/mymortgage.

The complete Guide Announcement can be found at www.efanniemae.com.

HARP program highlights
  • There is no maximum LTV on fixed-rate mortgages with terms up to 30 years.
  • The maximum LTV for fixed-rate loans with terms greater than 30 years and up to 40 years is 105 percent.
  • The maximum LTV for ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years (as permitted by the ARM plan) is 105 percent.
  • HARP is extended through December 2013.
  • Applicants cannot have a delinquency on their first mortgage within the last six months, and only one 30-day delinquency in the last 7-12 months.
  • There is no waiting period to refinance if a member has a previous Bankruptcy or Foreclosure.
  • An additional requirement is that the borrower must receive a benefit in the form of either a reduced monthly mortgage payment (principal and interest) or a more stable product, such as a move to a fixed-rate mortgage from an ARM.
 
HARP Changes Announced
In a release Monday, the Federal Housing Finance Agency, along with Fannie Mae and Freddie Mac, announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. While operational details won't be available to mortgage lenders and servicers until November 15, the anticipated program enhancements include:
  • Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers.
  • Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac.
  • Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by Fannie Mae/Freddie Mac.
  • Extending the end date for HARP until December 31, 2013 for loans originally sold to Fannie Mae/Freddie Mac on or before May 31, 2009.

Credit Union members contacting CU Companies between now and when the program is official will be placed on a call-back list.
 
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