OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARD

Below is a recent press release from The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury on the latest Housing Scorecard under the Obama administration. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market.

We like to share this piece of good news because as an active Realtor, I continue to be hopeful that the housing market improves. I have served many clients through high and low times and certainly, this challenging environment is something we haven’t seen before, but I believe is nothing insurmountable.

You can view previous housing scorecards here: http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard

Here is the complete report for October:

“Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place – such as additional assistance on refinancing and helping unemployed homeowners stay in their homes – and ensuring that help is available to homeowners as soon as possible.”

“HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis," said acting Assistant Secretary for Financial Stability Tim Massad. "Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.”

The October Housing Scorecard features key data on the health of the housing market including:

• Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low interest rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.
• As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
• More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010 —nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million).
• At nine months, almost 90 percent of homeowners remain in their permanent HAMP modification, with 11 percent defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16 percent of permanent modifications are 60+ days delinquent.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration's unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

ARE YOU ELIGIBLE FOR THE OBAMA MORTGAGE PLAN?

Here is another helpful piece concerning the new Home Affordability and Stability Plan (HASP), courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.

There have been a lot of questions about the HASP that will allow for refinances up to 105% of property values and for note modifications down the 31% of income, if the investor on your loan is Fannie Mae or Freddie Mac.

Answers and guidelines have been coming in daily. Some are very exciting.

For example, the plan doesn't care about occupancy. It applies to investment and vacation homes as well as owner-occupied homes. There are no minimum credit score requirements. There are no debt-to-income maximums. You just have to demonstrate an ability to repay.

Here is how you can determine if you are one of the seven to nine million homeowners eligible for relief under the plan:

STEP ONE: ARE YOU FANNIE OR FREDDIE BACKED?
To determine if Fannie Mae or Freddie Mac is the investor on your loan, a requirement of the program, you can do any of the following:

1) CALL your servicing company, which is where you send your payment.

2) Or you can do this by INTERNET:

Does Fannie Mae Own Your Mortgage? Click or copy and paste the link below:
http://www.fanniemae.com/homepath/homeaffordable.jhtml

Does Freddie Mac Own Your Mortgage? Click or copy and paste the link below: http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/avoiding_foreclosure_form.html

3) Or you can do this by TELEPHONE:
FREDDIE MAC 1-800-FREDDIE (8am to 8pm EST) FANNIE MAE 1-800-7FANNIE (8am to 8pm EST)

STEP TWO: DETERMINE ELIGIBILITY
If this home is your primary residence, go to www.FinancialStability.gov or click or copy and paste this link: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html

This site will walk you thru a step-by-step questionnaire that will help you determine eligibility and more.

STEP THREE:
If it says you are eligible for refinance, call your preferred loan officer. If you are eligible for Note Modification, call your bank.

NOTE: If this property is a vacation home or an investment home and the home's value is upside now in value by no more than 5%, call your preferred lender and ask if you are a candidate for HASP. It may take a few weeks before guidelines are known but you can start getting on interest lists now.


We at The Dulcie Crawford Group are continually on the lookout for information that can affect your individual real estate situation, and we would like to be your leading source of information. Stay tuned for more updates as they become available.