Skip to main content

Refinancing borrowers shun ARM loans in Q4 of 2008

Feb 22, 2009

MBA comments on "Making Home Affordable" programMortgagePress.comMBA, Making Home Affordable, Barack Obama, John A. Courson, refinance, loan modification John A. Courson, president and CEO of the Mortgage Bankers Association, has issued the following statement after the release of the details of the "Making Home Affordable" refinance and loan modification programs. "We have been advocating for one unified approach to help modify or refinance delinquent and underwater loans and thus we think this program will undoubtedly help servicers keep more at-risk borrowers in their homes, which is a crucial step to helping stabilize the mortgage and housing markets. "We are pleased to see that the $729,750 limit applies across the country, rather than only in high cost areas, because it will allow us to help more borrowers, especially those who have been hardest by the current crisis. We think the refinance program could be even more effective if the 105% LTV limit were raised. It would allow the GSEs to help even more borrowers without any additional risk since the loans are already on their books. "In addition we continue to believe that we can help even more borrowers - mostly those whose loans have been sold in private label MBS--if servicers are provided safe harbors to protect them from investor lawsuits when they modify loans. "Further, a standardized net present value (NPV) calculation could streamline the process and allow servicers to better help borrowers and we look forward to working with Treasury as it continues to develop its NPV standard. Likewise, we also want to work with the administration and Congress to enable servicers of FHA, VA and RHS loans to participate in the program." For more information, visit www.mortgagebankers.org.
About the author
Published
Feb 22, 2009
Potential For Declining Rates This Summer, Following CPI Report

Norada Real Estate Investments said "rates likely to decline" after the latest CPI report.

Jun 17, 2024
Looking For Change Under Every Couch?

Don’t overlook the obvious – employees have ideas for cost savings, too

Jun 10, 2024
New American Funding Announces New Cash-Offer Program

Similar to Opendoor and Homeward, NAF Cash Maps offers buyers a bidding war advantage

Jun 05, 2024
CFPB Issues Public Inquiry On Junk Fees Affecting Closing Costs

Agency seeks to understand why closing costs are up, who is benefiting, and how costs can be lowered.

May 30, 2024
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024