Real Estate Information Archive

Tougher lending standards, mortgage modification efforts and a more stable job market, economists say have contributed to the first decline in the delinquency rate since the first quarter of 2006. The percentage of delinquent mortgages declined to 6.57 percent in the first quarter from 6.60 in the last quarter of 2009, according to Equifax and Moody’s Economy.com.

I believe the biggest reason is because banks are working with their Clients trying to stay out of ownership or foreclosure. The new Short Sale Rules that became effective April 5^th is a good indication that lenders want to work with home owners. My understanding is over 95% of the mortgage lenders have signed up. http://bit.ly/aikvkj

If FHA raises the down payment on FHA loans I believe this would be a big mistake. I like some of their other ideas but frankly increasing anything right now would be a mistake.

As Congress considers various ways to put FHA on sounder financial footing, FHA Commissioner David Stevens warned that now is not the time to raise the down payment requirement on a Federal Housing Administration loan.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the down payment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.
http://bit.ly/98BHUL