Jumbos Getting Easier to Find, Negotiate

It’s still difficult for buyers to get jumbo mortgages, but it appears to be easier than it was six months ago.

Bank of America, Wells Fargo, and JPMorgan Chase & Co. are cutting rates somewhat, buying jumbo loans made by other lenders and purchasing them from brokers. One factor is that jumbo loans are not subject to new appraisal rules that are slowing much of the lending market.

"The whole jumbo market has improved in the last 90 days," says Terry Erwin, chief lending officer for KeyPoint Credit Union, a jumbo lender founded in 1979 to serve electronics industry workers in California's Silicon Valley.

Erwin says the most frequently selected loans at his company are 5/1 hybrid ARMs, which carry a fixed rate for five years before converting to a loan that adjusts annually.

Source: Inman News, Matt Carter (07/06/2009)

10 Cities Most Likely to Bounce Back Quickly

Some cities are likely to recover more quickly from the housing downturn than others. Forbes magazine has identified the top 10 cities that it believes are poised for recovery by examining unemployment figures, projected gross domestic product from Moody’s Economy.com, and housing affordability data from the National Association of Home Builders.

Overall, cities most likely to recover first are those with strong technology capabilities.

Here is Forbes’ top 10:

1. Austin-Roundrock, Texas
2. Fayetteville-Springdale-Rogers, Ark.
3. Boulder, Colo.
4. Huntsville, Ala.
5. San Antonio, Texas
6. Mobile, Ala.
7. Dallas-Fort Worth-Arlington, Texas
8. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
9. McAllen-Edinburg-Mission, Texas
10. Seattle-Tacoma-Bellevue, Wash.

FHA Cracks Down on Mortgage Brokers

The Federal Housing Administration is tightening its review of mortgage professionals that are allowed to originate loans.

The Department of Housing and Urban Development requires brokers who originate FHA loans to obtain approval through the agency. People convicted of making fraudulent loans will be barred from the program. Previously, companies were penalized, but individual employees were not.

Richard L. Tracy Jr., a board member of the Connecticut Society of Mortgage Brokers and an FHA-approved lender, says the changes “will go a long way toward getting out the marginal players.”

Source: The New York Times, Bob Tedeschi (06/05/2009)