What We're Hearing

Over the weekend I asked readers which loan types were the most underserved in today's tight credit market where Fannie Mae, Freddie Mac and FHA rule the roost. Jon Overfelt, sales manager for Academy Mortgage in Raleigh, N.C., said manufactured homes. Another reader noted that a huge problem is a lack of solid mortgage money for homeowners who cannot refinance their first and second liens into one loan. "With a degree of LTV controls as the REFI PLUS can you imagine how much money this would free up for the economy in the mortgage sector thereby lowering overall debt load and keeping people in their homes?" writes Ralph Reitan, a broker. On Friday National Mortgage News Online noted that consumers extracted just $11 billion in equity from their homes using cash-out refinancing loans in the fourth quarter, the smallest such volume in nine years. And today, of course, is the big day. We find how much FHA will hike its annual insurance premium. Stay tuned...