---Borrowers can search and identify the mortgage investor holding their loan with Fannie Mae's Loan Lookup at http://makinghomeaffordable.gov/loan_lookup.html. Freddie Mac also provides a comparable tool on its Web site.
---Wells Fargo inherited a $119.7 billion portfolio of option ARMs when it purchased Wachovia. The bank now is writing down an average of $46,000 per loan, and as much as $100,000 in some cases, and transferring these loans to interest-only loans, deferring balances six to 10 years. According to the Wall Street Journal, the nation's fourth-largest bank is betting that an increase in consumer income will cover the bank's option-arm portfolio.
---Loan Modifications? Fewer than 5 percent of all trial loan modifications on Freddie Mac loans stuck, that is, were converted to permanent modifications, according to a recent article on CNNMoney.com. Under the Obama administration plan, qualifying homeowners would have their loans modified to payments that are no more than 31 percent of pre-tax income. During the trial period, homeowners must supply documentation to verify income and expenses. This appears to be the hitch. Some banks have begun sending servicers door to door to obtain the documentation, or have begun offering $25 gift cards to provide the paperwork.
---Loan Mitigation Scams. Loan mitigation scams are multiplying, snagging REALTORS and victimizing - sometimes for the second time - those who are facing foreclosure. A national campaign called the Loan Modification Scam Alert can help you and your clients detect and avoid these scams. To learn more, visit www.loanscamalert.org.
---CalHFA Is Back: The California Housing Finance Agency (CalHFA) has announced a new mortgage option called Cal30, a fixed-rate, 30-year loan. Cal30 combines the predictability of a fixed-interest rate with the affordability of up to 95 percent financing. For more information on CalHFA and its products, please visit www.calhfa.ca.gov.
(Information found in California Real Estate Magazine)