My Mortgage Minute

noreply@blogger.com (Eric Miller) — Tue, 10 Mar 2009 07:23:29 PDT

For the first time in a long time Citi announced today that it was profitable for the past two months in 2009.

Citi shows profit

noreply@blogger.com (Eric Miller) — Tue, 10 Mar 2009 07:23:28 PDT

For the first time in a long time Citi announced today that it was profitable for the past two months in 2009.

noreply@blogger.com (Eric Miller) — Fri, 27 Feb 2009 06:38:03 PST

Treasury will convert up to $25 billion in preferred stock in Citigroup, This will give it an ownership stake of as much as 36%.

Banks Will Be Stressed

noreply@blogger.com (Eric Miller) — Wed, 25 Feb 2009 11:30:37 PST

Effective immediately, the Government will begin a stress tests for all U.S. banks in an effort to determine if they have adequate capital. The test will be done by end of April.

Bank Of America Rocked By Rumor

noreply@blogger.com (Eric Miller) — Tue, 24 Feb 2009 18:52:19 PST

Bank of America CEO Kenneth Lewis sent out an internal memo to address nationalization concerns, saying the "market appears to be moving in part based on rumor, innuendo and falsehoods propagated by the misinformed." Additionally Kenneth Lewis said the company continues to be profitable, and their capital and liquidity are strong.

Washington sends $1 food stamp checks to 250,000 people

noreply@blogger.com (Eric Miller) — Mon, 23 Feb 2009 17:33:22 PST

Read the entire article here http://ping.fm/8Y8tw

FEDS EYE LARGE STAKE IN CITI!

noreply@blogger.com (Eric Miller) — Mon, 23 Feb 2009 06:19:21 PST

Citigroup Inc. is in talks with federal officials. The result could be a U.S. government expanded ownership of the struggling bank. Rumor has it at a 40% stake.

The Mortgage Rescue Eligibility Bill Is Still Being Finalized

noreply@blogger.com (Eric Miller) — Fri, 20 Feb 2009 08:30:05 PST

Administration officials yesterday said they were still determining which homeowners should qualify. The conditions for eligibility are still being modified. Once complete all Lenders including yours truly will get the official document. The guidelines will allow us to evaluate applicants based on need and financial status.

The deadline for the changes is March 4th, and the government foresees most Lenders being flooded with phone calls.

noreply@blogger.com (Eric Miller) — Thu, 19 Feb 2009 09:44:00 PST

TRADERS REVOLT: CNBC HOST CALLS FOR NEW 'TEA PARTY'; CHICAGO FLOOR MOCKS OBAMA PLAN - http://ping.fm/UbE1s

noreply@blogger.com (Eric Miller) — Thu, 19 Feb 2009 08:20:31 PST

The index of U.S. leading indicators rose above expectations in January, posting a 0.4% month-over-month gain. - A good sign!

noreply@blogger.com (Eric Miller) — Wed, 18 Feb 2009 13:33:22 PST

A wide range plan of attack has been put into action in an effort to heal the mortgage meltdown. look forward for more details.

noreply@blogger.com (Eric Miller) — Wed, 18 Feb 2009 10:33:41 PST

the new Homeowner Affordability and Stability Plan is out. Read what I have to say about it @ http://ping.fm/LMuAJ

What does the new Homeowner Affordability and Stability Plan offer you!

noreply@blogger.com (Eric Miller) — Wed, 18 Feb 2009 10:24:21 PST

Many families that pay there bills on time, work hard for there money, and are responsible with there credit, have seen the value of there homes drop tremendously this past year. Many people in this country have been layed off from work due to company cut backs. It's no wonder that many Americans are struggling to stay current on their mortgage payments.

If you find yourself in this situation The Homeowner Affordability and Stability Plan can help get you back on track.

What will the plan include?

Refinancing for Up to 4 to 5 Million Responsible Homeowners to Make Their Mortgages More Affordable
A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners
Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac

Now that mortgage rates are at an all time low, the Government will make it easier for up to 5 Million Responsible Homeowners to Refinance there loans at a lower rate. Depending on your current loan amount and rate that could be a savings of $300 a month or more.

Here is an example that the Homeowner Affordability and Stability Plan provides

Consider a family that took out a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has about $200,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $221,000 – making them ineligible for today’s low interest rates that now generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.

For those who received subprime and exotic loans with exploding terms and hidden fees the Government offers a $75 Billion Homeowners Stability Initiative. If you are committed to make reasonable mortgage payments the Government will help you stay in your home. Of course, the term “reasonable payments” is up for grabs at this time, but the Government does claim that it will do what ever it can to help you stay in your home.

Additionally, The loan modification portion of the program would reduce the amount a homeowner owes per month to a sustainable level. Here is how it would work.

bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of his or her income.
the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent.
That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification.
Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.

This means that an average loan amount of $220,000 would see a reduction in payment of over $400 a month.

An extra incentive for borrowers to keep paying on time

a monthly balance reduction payment will go into effect for the bower that will reduce the principal balance of the mortgage loan. As long as a borrower stays current on their loan, they can get up to $1,000 each year for five years.

The Treasury Department has also been instructed to continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities in an effort to promote stability and liquidity in the marketplace.

If you are interested in refinancing or just have a question about the Homeowner Afford ability and Stability Plan give us a call at 804-285-9999 and well be happy to discuss your options with you.

Eric Miller

Mortgage Planner
Doug Lewis Mortgage Team
2211 Dickens Road Richmond, VA 23230

Phone: (804) 285-9999
Fax: (804) 412-2913
E-mail: contactus@douglewisloans.com

noreply@blogger.com (Eric Miller) — Sat, 14 Feb 2009 18:58:14 PST

Fannie Mae and Freddie Mac are ratcheting up their mandatory fees and toughening credit score and down-payment rules as of April 1.

Good Bank Not Bad Bank

noreply@blogger.com (Eric Miller) — Thu, 12 Feb 2009 17:08:56 PST

Why did the DOW crash 400 points after Treasury Secretary Tim Geithner released his much-anticipated Bank Bailout?

The word on the Street is “Bad Bank”. Per Treasury Secretary Tim Geithner release, the plan would use government capital to leverage private capital to buy the legacy loans that have plagued the balance sheets of the nation's banks.

What the announcement did not answer were questions such as how these assets would be priced and how they would be taken off the banks' books without further impeding bank capital levels.

What does this mean in the long run?

The Government is on a mission to save the big 5 banks. More money will be pushed onto banks balance sheets. Additionally, new regulation will be put into place to stimulate inter bank lending. This in turn will open up more available funding to businesses and individual borrowers.

Here at the Doug Lewis Mortgage Team, we have our ears to trading floor. We watch treasury notes and bonds for repricing news and up to date analysis. When you speak to one of our Mortgage Planners they will analyze your financial situation, place you into the most suited loan available to you, and work with you to achieve your fiscal goals.