Interest rates on home loans fell to their lowest level on record, according to a survey by Freddie Mac. According to the mortgage giant’s press release:

• Interest for a 30-year, fixed-rate mortgage averaged 4.69% in the week ending today,  with a 0.7% of a point, Freddie Mac said. That’s the lowest rate in records dating back to 1971.
• Rates for the 15-year fixed mortgage averaged 4.13%,  with a 0.6% of a point, also a low. Freddie Mac’s records for the 15-year home loan date back to 1991.
• The 5-year adjustable-rate mortgage (ARM) also set a five-year record, averaging 3.84% this week, with an average 0.7 point.
• The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point. This is the lowest the 1-year ARM has been since the week ending May 6, 2004, when it averaged 3.76 percent.

Freddie Mac Chief Economist Frank Nothaft said:

“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit. … Both new and existing home sales showed unexpected declines in May.”

Read the full release HERE!

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Mortgage rates fall to record lows is a post from: Mortgage Insider

Here are highlights from news reports on the Federal Reserve’s decision today to leave short-term interest rates unchanged:

Reuters:

“U.S. short-term interest rate futures rose on Wednesday after the Federal Reserve pledged, as expected, to keep interest rates near zero for an ‘extended’ period in a bid to support an economic recovery.

“The Federal Open Market Committee (FOMC), the central bank’s rate-setting panel, said in a statement that weaker financial conditions stemming from Europe’s public debt crisis and high domestic unemployment threaten the recovery.

“In December 2008, the FOMC adopted a zero to 0.25 percentage point target range for the federal funds rate, the overnight cost U.S. banks charge each other to borrow excess reserves from each other.

” ‘The fair inference is that there is no urgency (for the Fed) whatsoever to increase the fed funds rate or other tightening actions,’ said Richard DeKaser, president of Woodley Park Research in Washington.”

Associated Press:

“The Federal Reserve struck a more cautious tone about the strength of the U.S. economic recovery, indicating Europe’s debt crisis poses a risk to it.

“Wrapping up a two-day meeting Wednesday, the Fed in a 9-1 decision retained its pledge to hold rates at record-low levels for an ‘extended period.’ Doing so will energize the rebound.

“The Fed expressed confidence that the recovery will stay intact despite headwinds from abroad and at home. But Chairman Ben Bernanke and his colleagues offered a slightly more reserved outlook than the last time they convened.

“The Fed said the economic recovery is ‘proceeding.’ That was a bit less upbeat than the view at the April meeting when the Fed said economic activity continued to ’strengthen.’ The Fed also said the labor market is ‘improving gradually.’

“While not mentioning Europe by name, the Fed said ‘financial conditions have become less supportive of economic growth … largely reflecting developments abroad.’ “

The Globe and Mail:

“The U.S. Federal Reserve left its key interest rate unchanged, at about 0 per cent, as expected. It also left untouched the key phrase that low rates will be needed for “an extended period,” which was also expected.

“What investors were really looking for here was some indication of how the Fed is seeing the U.S. economy after a number of setbacks – particularly in the labour and housing markets. Here’s what the Fed said:

” ‘Information received since the Federal Open Market Committee met in April suggests that the economic recovery is proceeding and that the labour market is improving gradually. Household spending is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.”

“On housing: ‘Housing starts remain at a depressed level.’

“A nod to Europe: ‘Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad. Bank lending has continued to contract in recent months.’

“The stock market liked what it saw. Within about five minutes of the release of the Fed’s statement, the Dow Jones industrial average switched from a small decline to a slight gain, up 2 points.”

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Fed feels ‘no urgency’ to increase rates is a post from: Mortgage Insider

Noah Savings Mortgage and Liberty Law Firm have had settlement agreements drawn up that will provide refunds to Oregon homeowners and prohibit them from doing further loan modification work in Oregon.

The Oregon Department of Justice investigated allegations that Noah Savings Mortgage violated state law by collecting advance fees for loan modifications aimed at preventing foreclosure sales. The investigation also looked at allegations that Liberty Law Firm solicited to collect advance fees for loan modifications. Both companies cooperated with the investigation.

The settlement with Noah Savings Mortgage resulted in $6,500 in full refunds to two Oregon consumers. The company also must pay $5,000 to the Oregon Department of Justice and cease doing loan modification work in Oregon. The settlement, in which Noah Savings Mortgage admits no wrongdoing, was filed in Linn County, Oregon.

The settlement with Liberty Law Firm prohibits the company from doing modification work in Oregon. If any Oregon consumer complaints arise before August 20, 2010, Liberty Law Firm must pay restitution to those victims and $5,000 to the Department of Justice. Liberty Law Firm admits no wrongdoing; the settlement was filed in Marion County, Oregon.

Oregon Attorney General John Kroger made the announcement.

“This office is committed to stopping abuses in the mortgage industry that harm Oregon consumers,” said Deputy Attorney General Mary Williams.

Senior Assistant Attorney General Thomas K. Elden handled the case for the Oregon Department of Justice.

Oregonians should watch out for loan modifiers who ask for advance fees over $50 and check to see if a loan modifier is registered. Foreclosure consultants and loan modifiers cannot take advance fees in Oregon. Loan modifiers must register with the Oregon Department of Consumer and Business Services through the Division of Finance and Corporate Securities.

The Oregon Department of Justice and the Department of Consumer and Business Services work together to uproot abuses in loan modification.

Nationwide Title Clearing (NTC), a service provider to the mortgage and financial industry, has unveiled its mobile imaging offering to mortgage lenders and servicers to help them when they need it most. In the event of an emergency seizure by the Federal Deposit Insurance Corporation (FDIC), government-sponsored enterprises (GSEs) or another investor because of concern over the solvency of the original institution, NTC’s mobile imaging team has the capability to go where the loan files are located before the final settlement of a loan transfer occurs.Read more

Generation Mortgage Company has announced a new 4.99 percent fixed interest rate reverse mortgage product, offering seniors a long-term lower interest rate option. "We want to give senior homeowners as many alternatives as possible to enable them to stay in their house," said Scott Peters, president and chief executive officer of Generation Mortgage. "And with such a fragile state of our nation’s economy, home equity remains a top financial asset for seniors and Baby Boomers."Read more

Williston Financial Group and its wholly owned subsidiary, WFG National Title Insurance Company, have opened their national headquarters in Lake Oswego, Ore. WFG is currently licensed and operating in 33 states nationwide. The company is a full-service provider of title insurance and real estate settlement services for lender, commercial and residential transactions.Read more

Iwayloan LP has announced that it has opened its first retail loan origination branch office in Pennsylvania. The company recently announced plans for expansion through the establishment of retail branch offices. “This is the first step of Iwayloan’s growth into selected markets” said Managing Director Larry Lobb. “We are particularly pleased to have Linda Bullington join us as Pennsylvania state manager. Linda brings a wealth of knowledge and experience to the position, and she is exactly the type of person we want as part of our team.”Read more

As I approach this, my last article as Certification Committee Chair of the National Association of Mortgage Brokers (NAMB), I am amazed at how quickly time seems to fly by in our daily lives. As we have all been preparing for SAFE Act Licensing and watching events in our industry unfold, time seems to be moving more for us than we may expected. Reflecting on the basic priorities this past year or two has strengthened some individuals, saw others leave our industry, and still has everyone evaluating what we should continue to do.Read more

Consider, for a moment, your next Facebook, Twitter or other social media status update declaring: “[Your name here] was featured on CNN today!” A seed of excitement that they know someone famous is now planted in the brains of whoever reads that post; that seed will sprout one day and find itself growing into a conversation they may be having with a co-worker, friend or family member of theirs.Read more

A federal indictment was unsealed that charged three Minnesotans in connection with an alleged mortgage fraud scheme that resulted in a $16 million loss for lenders. The indictment, filed with the U.S. District Court in Minneapolis on June 15, was unsealed following the initial appearances of the three defendants, which occurred earlier. The indictment charges Ericvan Anthony McDavid of Brooklyn Center, Minn.; Larry Africanus Hutchinson of St. Paul, Minn.Read more