Appeals court knocks down loan mod case against Wells Fargo
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Welll Fargo Lawsuit

The 9th District court of Appeals of San Francisco says that the banks were never interested in granting loan mods. under the HAMP (affordable modification program) so they are allowing the lawsuit against Wells Fargo to continue.


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Mortgage Interest rates heading higher
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Rates are slowly drifting upward. They have risen ½ % point since the lows of last fall. People have gotten too used to low rates and don’t get that this is historic and not normal. The federal reserve has been artificially keep in g interest rates low by buying up 10 year bonds. This is the rate that determines mortgage interest rates., Just the announcement that they are planning –just planning- to end this has started the upward spiral. They have not said if they will stop buying all at once or gradually.

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Banks say they are fulfilling terms -yeah-right
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Under terms of a settlement with Banks and NY attorney general, Banks are supposed to do more to help homeowners.

They are are actually doing not too much in principal reduction which was supposed to be the main benefit. They are leaning heavily towards short sales and write downs of 2nds. Big deal- 2nds will go away in foreclosure anyhow.

Wells ( the worst in my opinion)uses almost short sales exclusively. Chase discounts 2nds, Citi does more 2nd mortgage discounts and short sales than write downs of first mortgages.

The banks are not abiding by the other rules of the game and the NY attorney general plans to go to court to force them.

We have heard stories of banks still going to sale while loan modifications were taking place- a no-no under the new laws.

Is anyone surprised?

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Lenders Reluctant to Issue FHA Loans
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It’s even tougher than ever to get a 3.5% FHA loan. You are more likely to fall into the traditional 10% down.. To get the lower downpayment your fico would have had to be 701 on average.

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FHA is broke
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Because they insured the banks against loss if the loans went bad, they had to pay off a lot of money. Like any insurance company, if you have to pay out more than you collected in insurance premiums, you are in trouble.

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