Effective next month, Freddie Mac will stretch the period lenders have to originate, document, and sell construction-to-permanent mortgages to the secondary-market company from six to 18 months.The longer time frame will remove separate time lines for origination, construction, and sales of loans financing either new construction or renovations, allowing for a more streamlined process. The change is intended to give lenders and their clients more time and flexibility to accommodate unexpected changes in construction scheduling, and should be particularly helpful in giving move-up buyers more time to sell their homes in the slowing real estate market. It should also help thousands of Gulf Coast borrowers waiting for grants or insurance proceeds to commence repairing their storm-damaged homes or experiencing construction delays. The pending changes make it clear that Freddie Mac is financing only the permanent "takeout" mortgage and not loans for land acquisition, development, or construction.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24