What is a jumbo loan?

What is a jumbo loan?

A jumbo loan is a mortgage with an monetary amount that is above what the industry calls a conventional or conforming home loan. The main difference between conforming loans and jumbo loans is simply the dollar amount being borrowed.

A jumbo loan is a home mortgage that exceeds the conforming limit set by the Office of Federal Housing Enterprise Oversight (OFHEO) and is not eligible to be guaranteed by Fannie Mae or Freddie Mac. If a loan exceeds the conforming loan limit in the area you wish to purchase, this is considered a non-conforming mortgage, or jumbo loan. (more…)

How Brexit is pushing mortgage rates to historic lows

How Brexit is pushing mortgage rates to historic lows

The global financial markets are in turmoil, and the U.S. Dow is down big time. This downward trend began last Friday following Britain’s vote to leave the European Union, which is commonly known as Brexit.

This news has caused every major European stock market to plunge 2-3% and the Dow is currently down 300 points, losing a combined $2 trillion in just two days. This was the worst sell-off in worldwide stock markets in history.

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Victor Cueva: Former Connecticut State Representative Pleads Guilty to Mortgage Fraud Scheme

Victor Cueva: Former Connecticut State Representative Pleads Guilty to Mortgage Fraud Scheme

Victor Cueva, a Connecticut state representative for the 75th District, pleaded guilty earlier this week to conspiring with others to commit VICTOR CUEVASbank fraud, according to the Office of Inspector General, U.S. Department of Housing and Urban Development (HUD).

Cuevas was involved in a mortgage fraud scheme involving a Federal Housing Administration (“FHA”) loan in the summer of 2013. At the time, he was a City of Waterbury employee. (more…)

Mortgage Rates Still Near Three-Year Lows

Mortgage Rates Still Near Three-Year Lows

Mortgage rates remain mostly unchanged for the week ending June 23, 2016, and still near three year lows, according to the latest Freddie Mac’s Primary Mortgage Market Survey® (PMMS®).

30-year fixed-rate mortgage rates were averaging at 3.56% with an average 0.6 point, higher than the previous week’s average of 3.54%. The 30 year averaged 4.02% at this same time last year. (more…)

Mortgage servicers can’t hide behind their bad computer systems

Mortgage servicers can’t hide behind their bad computer systems

Mortgage servicers can’t hide behind their bad computer systems or outdated technology. There are no excuses for not following federal rules.” – Richard Cordray, Director, CFPB

The Consumer Financial Protection Bureau (CFPB) reported this week that many mortgage servicers are using outdated or deficient technology, resulting in technological breakdowns or malfunctions that are adversely affecting homeowners and violating CFPB rules that went into effect in January 2014. (more…)

Hope Now Reports Mortgage Servicers Help 37,169 Homeowners Avoid Foreclosure

Hope Now Reports Mortgage Servicers Help 37,169 Homeowners Avoid Foreclosure

Approximately 31,000 loan modifications were made in April 2016, which was down from 32,000 in March, according to a new report Hope Now april 2016 mortgagereleased by the mortgage alliance of lenders, mortgage servicers, investors and counseling agencies, HOPE NOW.

The total number of homeowners who received mortgage solutions in April to avoid foreclosure was at 37,169. (more…)

Three Charged In HUD House Flipping Scheme

Three Charged In HUD House Flipping Scheme

HAMMOND- United States Attorney David A. Capp announced that a federal grand jury in Hammond returned an indictment charging three individuals for their part in a house flipping scheme involving Department of Housing and Urban Development (HUD) properties.

The indictment charges Sergio Garcia, Sr.,46, of Chicago, IL; and Sergio Garcia, Jr., 27, of Lowell, IN, with conspiracy to commit mail fraud and ten substantive counts of mail fraud. It also charges Timothy D. Greene, 29, of Lansing, IL, with submitting fraudulent information to HUD. (more…)

Mortgage Delinquencies and Foreclosure Starts Are Up

Mortgage Delinquencies and Foreclosure Starts Are Up

Mortgage delinquencies and foreclosure starts went up in May, and the foreclosure inventory is down according to the latest Black Knight Financial Services report for the May 2016 month-end mortgage performance statistics.

Foreclosure inventory over the last 12 months has dropped below 575,000 from over 800,000, and foreclosure starts are now up from a 10-year low in April at 62,100, but still remain below pre-crisis levels. (more…)

Brookstone Law Group: FTC Halts California Based Mortgage Relief Scam

Brookstone Law Group: FTC Halts California Based Mortgage Relief Scam

The Federal Trade Commission has charged the operators of a mortgage relief scam with bilking millions of dollars from homeowners Brookstone lawby falsely telling them they could join a so-called “mass joinder” lawsuit that would save them from foreclosure and provide additional financial awards.

“Preying on homeowners who already are financially distressed and struggling to pay their mortgages is appalling,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “That’s why stopping phony mortgage relief operations, like this one, is a priority at the FTC.” (more…)