The National Association of Realtors has revised their home sales figures from the last four years.  They are now approximately 14% lower than first was reported.  This basically drops the housing numbers down by 2 million home sales.  In a down economy, the numbers paint a bleaker picture of what people were hoping was a recovery trend.  Economists were questioning the numbers, but they were backed up by reports.  Upon review of the reports, it was found that there were some duplicate accounting for some properties and some new home sales data that should have been filtered out.

The adjusted data on home sales from 2007 to 2010 will be as follows:

• 2007 lowered 11% to 5.04 million
• 2008 lowered 16% to 4.11 million
• 2009 lowered 16% to 4.34 million
• 2010 lowered 15% to 4.19 million

Here is the full article:

Washington, DC, December 21, 2011

Existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. Also released today were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.

Although rebenchmarking resulted in lower adjustments to several years of home sales data, the month-to-month characterization of market conditions did not change. There are no changes to home prices or month’s supply.

The latest monthly data shows total existing-home sales¹, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.

Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.99 percent in November from 4.07 percent in October; the rate was 4.30 percent in November 2010; records date back to 1971.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said housing affordability conditions have set a new record high. “With record low mortgage interest rates and bargain home prices, NAR’s housing affordability index shows that a median-income family can easily afford a median-priced home,” he said.

“With consumer price inflation rising by more than 3 percent this year, consumers are looking to lock-in steady payments by taking out long-term fixed-rate mortgages. However, the problem remains that some financially qualified families who are willing to stay well within their means are being denied the opportunity to buy in today’s market by the overly restrictive mortgage underwriting situation,” Veissi said.

An elevated level of contract failures continues to hold back a broader sales recovery. Contract failures² were reported by 33 percent of NAR members in November, unchanged from October but notably above a year ago when it was 9 percent.

Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including lower conforming mortgage loan limits, home inspections and employment losses.

Also released today are benchmark revisions³ to historic existing-home sales. The 2010 benchmark shows there were 4,190,000 existing-home sales last year, a 14.6 percent revision from the previously projected 4,908,000 sales. For the total period of 2007 through 2010, sales and inventory were downwardly revised by 14.3 percent. The revisions are expected to have a minor impact on future revisions to Gross Domestic Product.

“From a consumer’s perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices,” Yun explained.

A divergence developed over time between sales reported by MLSs and sales determined by a U.S. Census benchmark; the variance began in 2007. Reasons include growth in MLS coverage areas from which sales data is collected, and geographic population shifts. “It appears that about half of the revisions result solely from a decline in for-sale-by-owners (FSBOs), with more sellers turning to Realtors® to market their homes when the market softened. The FSBO market was overwhelmed during the housing downturn, and since most FSBOs are not reported in MLSs, national estimates of existing-home sales began to diverge based on previous assumptions,” Yun said.

NAR consumer survey data in 2000 showed FSBOs accounted for a 16 percent market share, which fell to a record low 9 percent in 2010.

“In essence, Realtors® began to capture a greater market share. In addition to a decline in FSBO transactions, more builders began marketing new properties through real estate brokers that weren’t completely filtered from the existing-home data,” Yun said. “Some property listings on more than one MLS, and issues related to house flipping, also contributed to the downward revisions.” The new independent benchmark was discussed with government agencies and outside housing market experts, and will allow for annual revisions in the future.

Total housing inventory at the end of November fell 5.8 percent to 2.58 million existing homes available for sale, which represents a 7.0-month supply⁴ at the current sales pace, down from a 7.7-month supply in October. “Since setting a record of 4.04 million in July 2007, inventories have trended down and supplies are moving close to price stabilization levels,” Yun said.

The national median existing-home price⁵ for all housing types was $164,200 in November, down 3.5 percent from a year ago. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 29 percent of sales in November (19 percent were foreclosures and 10 percent were short sales), compared with 28 percent in October and 33 percent in November 2010.

All-cash sales accounted for 28 percent of purchases in November; they were 29 percent in October and 31 percent in November 2010. Investors make up the bulk of cash transactions.

Investors purchased 19 percent of homes in November, little changed from 18 percent in October and 19 percent in November 2010. First-time buyers accounted for 35 percent of transactions in November, up from 34 percent in October and 32 percent in November 2010.

Single-family home sales rose 4.5 percent to a seasonally adjusted annual rate of 3.95 million in November from 3.78 million in October, and are 12.9 percent above the 3.50 million-unit level in November 2010. The median existing single-family home price was $164,100 in November, down 4.0 percent from a year ago.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 470,000 in November and are 6.8 percent higher than the 440,000-unit pace one year ago. The median existing condo price⁶ was $164,600 in November, which is 0.2 percent below November 2010.

Regionally, existing-home sales in the Northeast jumped 9.8 percent to an annual pace of 560,000 in November and are 7.7 percent above a year ago. The median price in the Northeast was $240,200, which is 0.1 percent below November 2010.

Existing-home sales in the Midwest rose 4.3 percent in November to a level of 960,000 and are 15.7 percent higher than November 2010. The median price in the Midwest was $133,400, down 4.0 percent from a year ago.

In the South, existing-home sales increased 2.4 percent to an annual pace of 1.74 million in November and are 12.3 percent above a year ago. The median price in the South was $143,300, which is 2.1 percent below November 2010.

Existing-home sales in the West rose 3.6 percent to an annual level of 1.16 million in November and are 11.5 percent higher than November 2010. The median price in the West was $195,300, down 8.4 percent below a year ago.

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I hope that the corrected numbers will possibly get the attention of the banks and mortgage companies across America.  They need to start lending again.  I’m not saying that they should lend to everyone, like in the past, but the restrictions on mortgages have been pretty tight since the crash of the market.  America’s economy revolves around the housing market – that has been proven in the recent years.  It is up to the big companies to start turning it around.

Kim Shuford

Amy Lutz of The College Conservative wrote this, and I just had to share!  Beautifully written!

In 1897, a young girl named Virginia wrote a letter to The New York Sun, asking if Santa Claus did in fact exist. Newsman Francis Pharcellus Church responded with a now-famous editorial entitled “Yes, Virginia, There is a Santa Claus.” Virginia worried, since she had neither seen Santa Claus nor did she possess tangible proof of his existence, that the jolly man was not real. Francis Church reminded Virginia, and all of us, that seeing is not believing. We must first have faith and believe in the existence of Santa Claus’ spirit of generosity and love before we witness it in action. One hundred and fourteen years after the letter was printed, many of us find ourselves empathizing with little Virginia. How can things like love and generosity exist when the world seems so dark? Millions of people find themselves out of work, trying to make ends meet. Political bickering halts any hope at forward progress. Even talk of Christmas has been largely eradicatedfrom public discourse. How could a figure as loving and generous as Santa Claus exist in such a seemingly hopeless world? Perhaps, like Virginia, we all need to be reminded once again of his existence.

Yes, America, Santa Claus does exist. He is perpetually present in the hearts and minds of compassionate Americans and his work is evident everywhere. Santa Claus embodies a spirit of love. Where would we be without love?  Without love, greed, selfishness, and doubt would plunge this world into real darkness. A loveless world would be one of universally broken families, empty churches, and nonexistent charities. Is this the world we want to live in?  Of course not.

For the most part, love is still present in our nation; we just need to have faith before our eyes can be opened to its presence. We can see love in the heart of a child who blinks back tears as they witness a parent return from military service overseas. Love is present in the frozen hands of Salvation Army bell-ringers, in the food that lines the shelves of homeless shelters, and in the care packages sent overseas to our fighting men and women. Those whose hearts burst unabashedly for God (i.e. Tim Tebow) in the face of insurmountable criticism are also some of the greatest possessors of love. Like the reindeer that propel Santa’s sleigh, love is the force that propels the charity and good work we see throughout the holiday season.

The love of Santa Claus is personified by the generosity of the season. True charity, not forced redistribution, is the basis for holiday giving.  We can see Santa Claus in the generous spirit of an unemployed parent who scrapes together just enough money to give her children a Christmas.  Santa can also be found in the actions of people who give their time and effort for the benefit of others through charity work and volunteering. Someone who embodies the spirit of Santa Claus puts an emphasis on giving and not receiving. Ponder this: Santa Claus spends the entire year preparing for a night of universal giving. What if we could grab onto this spirit of generosity more often? Perhaps then, the world would not appear such a negative place.

Therefore, America, Santa Claus is present all around us. Just because we have not seen him does not mean his spirit does not exist. Intangible things like love and generosity cannot be captured in a bottle or seen by the human eye. They must be experienced and sought out. Santa’s spirit is not something that is revealed to us at random. We must seek it out and hold tightly to it. We must believe in his spirit and act out upon his virtues so that his presence can be preserved for the entire nation. When viewing this struggling nation through a lens of negativity, it’s easy to miss his presence. Yet, if we look upon the world with an optimistic perspective, Santa Claus is all around us. First we must believe. Then we act with a heart full of love and a spirit of generosity. After that, we will be able to see the workings of Santa Claus everywhere. I will continue to believe that Francis Church was right when he told little Virginia that Santa Claus not only lives, but that his spirit will exist forever.

Amy Lutz // Saint Louis University // @AmyLutz4

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There is a new credit score looming on the horizon that tracks you a little more closely than the old credit scores.  CoreScore, as it’s called has been launched by CoreLogic to aid and assist mainly mortgage and home equity lenders to gain a better prospective into their potential borrowers.  While the CoreScore credit report became available to all types of lenders last Wednesday, the actual score will be ready to debut in March.

If you are one of the few out there who have always paid everything on time and have never skipped out early on a lease, or missed a payment on a payday loan, then you shouldn’t have anything to worry about.  For the rest, there is no hiding.  CoreLogic has been keeping a wealth of information on just about everything that the three credit bureaus don’t typically report.  They have now formed a partnership with FICO (Fair Isaac Corporation) to formulate a new consumer score on these items.

Although CoreLogic may not be a familiar name to most consumers, it has been around the credit business for many years and already is a part of pulling your credit scores from the three bureaus together in a uniform report to give to potential lenders; so don’t be surprised at how much information they already have about you.  They have just taken credit reports to a new level now, one which in the current economy may not be good news to most Americans.  Next year, for example, they will begin to evaluate including even more information such as your history of utility bills/payments and cell phone bills.

“Lending is very constrained and origination volumes need to grow to make for a profitable mortgage business,” said Joanne Gaskin, director of product management global scoring at FICO. “So lenders are looking for ways to expand, but to expand safely.”  The hopes are that this new score will give the mortgage companies a boost to start lending again.  There are good points to make on both sides of this argument but whether you agree with it or not, it’s here and being used in the market already.

The good news on this is that they are prepared for mistakes and have taken the necessary steps for consumers to dispute inaccuracies that may show up on the report, much like the current bureaus do now.  Within a year, the new report will be available at AnnualCreditReport.com, and I would urge everyone to obtain a copy and see what shows up.  Don’t be caught by surprise when trying to get a loan.  You may not be turned down completely by your CoreScore, but you may get charged a higher rate or given different types of loan terms.  Be prepared.

Kim Shuford

 

Yahoo! Finance posted a few blunders to avoid for refinancing I thought might help someone.  Here they are:

Not Comparing the Real Rate

“Borrowers should shop around for a mortgage by comparing the APR (annual percentage rate) of each loan rather than the quoted interest rate,” says Gregg Busch, vice president of First Savings Mortgage Corp. in McLean, Va. “You need to look at the true cost of the loan and compare it to your current APR to make sure you will really be saving one-half point or more on the new loan.”

Busch points out that a lot of homeowners today find out that their home is worth less than they assumed when they have an appraisal.

“Fannie Mae and Freddie Mac have added fees on loans with a high loan-to-value, so borrowers need to re-evaluate the rate and fees before they decide to refinance,” Busch says.

Borrowers who have little or no equity may qualify for a refinance under the government’s Home Affordable Refinance Program, or HARP, available to those with a current mortgage owned or guaranteed by Fannie Mae or Freddie Mac.

“The beauty of the HARP program is that it does not require an appraisal, so if you suspect you are underwater on your loan, this could be a good option,” says Busch. “Just make sure you compare the rate and fees to see if the new loan is worth the cost.”

Choosing the Wrong Loan

Pickel says the first step when deciding to refinance is to establish a clear objective.

“If you think you may lose your job but you have one now, your focus should be to lower your overall payment regardless of the length of the loan,” says Pickel. “If you want to be debt-free by a certain year, then you need to find a loan that meets that objective.”

Pickel says that sometimes, even with a lower interest rate, you could end up making higher monthly payments because wrapping in the closing costs has increased the size of your mortgage.

Every borrower should look at the cost of refinancing along with the financial benefits before choosing a loan, Busch says. Some borrowers forget that refinancing into another 30-year mortgage can add years of payments, especially if they have been paying on the current loan for a long time.

“A 10/1 ARM (adjustable-rate mortgage) or a 10-year fixed-rate loan can sometimes be a better choice depending on the individual borrower’s circumstances,” Busch says.

Not Shopping Around

While many borrowers compare loan offers from more than one lender, they can also shop for title services and save hundreds or sometimes thousands of dollars on their loan.

“Check at least three lenders and at least three title companies before choosing one,” Busch says. “There can be an advantage to going to the same servicer that handles your loan now, because they may require less documentation, but I also recommend consulting with at least one other direct lender to compare rates and fees.”

Ask the title company for a reissue rate on your owner’s title insurance — Busch says this can save as much as 35 percent on the premiums.

Refinancing When You Shouldn’t

Charles A. Myers, president and CEO of The Home Lending Group in Jackson, Miss., says refinancing can be a mistake if you don’t plan to stay in your home for several years.

“One customer wanted to refinance in order to improve his property and rent it, but he would have ended up with a larger mortgage and then needed a different loan because the property would no longer be his principal residence,” says Myers. “The key is to make sure the refinance has a net tangible benefit to the homeowner.”

Borrowers need to decide how long they intend to stay in the property and determine the break-even point when the savings outweigh the costs before choosing to refinance, Myers says.

Not Keeping Up With Borrower Responsibilities

Homeowners must rely on a lender to refinance, but they have obligations of their own that, if not met, could derail the mortgage refinance. Borrowers must have good credit to refinance, with most lenders requiring a credit score of 640 and above even for a loan insured by the Federal Housing Administration, says Myers.

Lenders can check the borrowers’ credit again just before the closing, so you need to maintain good credit and avoid taking on new debt even after the refi has been approved.

“Check the lock-in date for the interest rate on your new loan to make sure you can close before the rate expires,” says Busch. “Be sure to turn in all your documentation as soon as it is requested, because a delay could mean that your closing date must be pushed back.”

There is so much information on credit scores and credit repair online that you can literally get a different answer every time you log on.  To get the full impact of a credit score, you have to go to the source; the three credit reporting agencies: Experian, TransUnion and Equifax.

Here is a simple breakdown for you with information from the three bureaus.  This should help you understand why your score is where it is and hopefully give you an idea on what you can do to make it better.

The major factors of a credit score include:

Payment history 35% - This consists of your on time payments, late payments, and delinquent payments made on each account reported.

Credit utilization ratio 30% - This is basically a snapshot of your credit.  Your amount of credit used is divided by total amount of credit, using only your revolving credit accounts.

Credit length 15% – The amount of time you’ve held your longest open credit account can make an impact on your score.

Recent searches for credit 10% - The amount of inquiries you’ve made recently for new credit accounts.  However, checking your own score does not count against you in this category.

Other factors 10% - This consists mainly of the variation in the types of credit you’ve used, for example installment or revolving credit.  Credit agencies like diversification on credit reports.

Now that you have a better understanding of what your score consists of, you can take the necessary steps to keep your credit score at it’s best.  If you would like any further information or need help repairing your credit, feel free to email me at kim@kimshuford.com.

Have a blessed day!

Kim Shuford

Negotiating a home purchase can be a daunting task, regardless of what  side of the deal you’re on. Buyers obviously need the best deal for their money , but the dilemma for some is how to make an offer that is reasonable for both buyer and seller.

For the seller, getting the most out of a major investment like a house is crucial, but setting a buyer-friendly price is also a consideration. How can buyer and seller come to a happy medium and close the deal?

When it comes to buying a home with a FHA guaranteed mortgage, the FHA loan program has some options buyers and sellers alike can use to make that closing a reality.

In the course of buying a home with a FHA-guaranteed mortgage, buyers and sellers negotiate the sales price, but what if the agreed price is higher than the borrower wants to pay or is higher than the fair market value of the home as stated after the appraisal? The seller can improve his or her position by offering to contribute a percentage of the sales price towards the buyer’s closing costs, discount points or other FHA loan costs.

If the buyer agrees to the contribution, it can potentially reduce the amount of money the borrower has to pay up front if there’s a difference in the fair market value of the home and the asking price. FHA requirements in this area have two important features. The first is that the seller can’t contribute more than six percent of the sales price without affecting the amount of the FHA insured loan.

Any contribution in this area from the seller beyond six percent is considered an “inducement to purchase”. The FHA lowers the amount of the mortgage accordingly, based on FHA requirements, which state; “Each dollar exceeding FHA’s six percent limit must be subtracted from the property’s sales price before applying the LTV ratio.”

Another aspect of this rule that’s important to keep in mind–the seller may contribute six percent only for actual costs related to closing, interest rate buydowns, discount points or other concessions.

FHA mortgage loan rules prevent a lender from artificially inflating the cost of services, and the rules also prohibit the borrower and seller from inflating closing costs, interest rate buy-downs or other contributions.

Sellers should not to confuse their contribution with other amounts of money they may be required to pay as part of the FHA home loan process. The FHA rules state, “Fees typically paid by the seller under local or state law, or local custom, such as real estate commissions, charges for pest inspections, fees paid for trustees to release a deed of trust, etc., are not considered contributions.” That means such payments do not get counted as part of the six percent limit.

The previous information courtesy of FHA.com.

FHA home loans cover a wide range of needs–they aren’t simply for the traditional home in the suburbs; there are FHA insured loans for condos and also FHA mortgages for  manufactured housing. In the same way the FHA guarantees loans for traditional homes, the FHA insures the loan for a manufactured home rather than providing the loan itself.

Some FHA loans for manufactured homes are known as Title I loans and can be applied for in several ways–to purchase the home all by itself, to buy a lot for a home already owned or to be purchased, or a Title I loan can be used to buy a manufactured home and lot in combination.

Depending on the nature of the Title I loan, there are different loan terms–maximums vary depending on whether you buy the home, the lot, or both.

Maximum loan amounts for the home only are just under $70 thousand at the time of this article. The maximum FHA Title I loan amount for a lot purchase is just over $23 thousand, a home and lot combination purchase has a maximum loan amount of nearly $93 thousand.

These maximums can be affected by the market the buyer wants to purchase in–according to the FHA, “The maximum dollar limits for lot loans and combination loans may be increased up to 85 percent in designated high-cost areas.”

FHA Title I manufactured home loans also differ from traditional home loans when it comes to the length of the loan. A typical mortgage comes in a 15-year or 30-year maximum loan term, Title I loans for manufactured homes have shorter terms–20 years is the maximum for a loan on a manufactured home or on a single-section manufactured home and lot.

The maximum for a manufactured home lot loan is 15 years, and 25 years for a loan on a multi-section manufactured home and lot.

The FHA wants borrowers to know Title I loans are “not Federal Government loans or grants.” These are loans negotiated through a lender which must be repaid with monthly mortgage installments.

Also, “…the interest rate, which is negotiated between the borrower and the lender, is required to be fixed for the entire term of the loan,” which means variable rate financing is not available on these types of home purchases–unlike traditional homes where an Adjustable Rate Mortgage, Interest-Only FHA loan or other possibilities may be available to qualified borrowers.

The above information is courtesy of FHA.com.

“Never part without loving words to think of during your absence. It may be that you will not meet again in this life.”

                                              ~~Jean Paul Richter

Seventeen banks, dozens of their subsidiaries and over one hundred bank officers were named as defendants in a lawsuit filed Friday by the Federal Housing Finance Agency (FHFA), conservator of government sponsored enterprises Freddie Mac and Fannie Mae (The GSEs.)  The civil suits, filed in U.S. District Court for the Southern District of New York and a federal court in Connecticut allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities to the GSEs.

According to the suits, “These securities were sold pursuant to registration statements, including prospectuses and prospectus supplements that formed part of those registration statements, which contained materially false or misleading statements and omissions.  Defendants falsely represented that the underlying mortgage loans complied with certain underwriting guidelines and standards including representations that significantly overstated the ability of the borrowers to repay their mortgage loans.  These representations were material to the GSEs as reasonable investors, and their falsity violates” (multiple) sections of the Securities Act of 1933, portions of the Virginia Code and of the District of Columbia Code as well as constituting common law negligent misrepresentation. Certain complaints also allege state securities law violations.  The suits are similar in content to the complain FHFA filed in July against UBS Americas, Inc.

By far the largest suit was filed against JP Morgan Chase & Co, along with 39 current and former executives.  The suit charges that the company sold the GSEs $33 billion in loans contained in 103 transactions between September 7, 2005 and September 9, 2007.

In addition to JP Morgan/Chase, suits were filed against the following institutions with many of the suits involving multiple subsidiaries and trusts.  Virtually all of the transactions occurred between April 2005 and November 2007.

Ally Financial Inc. for actions surrounding 21 securitizations sold to the GSEs in the aggregate amount of $6 billion.  At the time of the sales Ally was known as GMAC LLC.

Bank of America Corporation and 11 of its executives for the sale of 23 securitizations in the amount of $6 billion.

Barclays Bank PLC and three of its executives for selling eight pools of mortgage-backed securities amounting to $4.9 billion

Citigroup, Inc and eight of its officers for eight pools of securities it sold totaling $3.5 billion.

Countrywide Financial Corporation and ten of its executives for 86 securitizations initially valued at $26.6 billion.  The current owner of Countrywide, Bank of America Corporation, was named as a party in this suit.

Credit Suisse Holdings (USA), Inc and 13 executives for selling $14.1 billion in loans in 43 securitizations.

Deutsche Bank AG and three executives for selling 40 securities with an initial value of $14.2 billion.

First Horizon National Corporation and four executives for selling five securities valued at $883 million.

General Electric Company for selling $549 Million in two securitizations.  Unlike the other plaintiffs General Electric’s involvement only covered a period of three months in 2005.

Goldman Sachs & Company along with nine executives is accused of selling $11.1 billion in certificates.

HSBC North American Holdings, Inc. and five of its officers are being sued for selling $6.2 billion in securities contained in 17 pools.

Merrill Lynch & Co./First Franklin Financial Corporation and six officials who are accused of underwriting or sponsored $24.85 billion in 33 securitizations.

Morgan Stanley and seven executives involved in the sale of 33 securities with an initial value of $10.58 billion.

Nomura Holding America Inc. and five executives alleged to have sold the GSEs seven certificates for $2 billion.

The Royal Bank of Scotland Group PLC and five officers involved in the sale of $30.4 billion in 68 securitizations.

Société Générale and four executives accused of selling $1.3 billion in three certificates.

FHFA charges that the originators of the mortgage loans underlying the securities sold to the GSEs systematically disregarded their underwriting guidelines, especially as regarded the occupancy status of the mortgaged property, the loan-to-value ratio of the mortgages, and the ability of the borrowers to repay the loan.  FHFA cites as evidence:

• Government and private sector investigations that have confirmed that the originators of the loans failed to adhere to the stated underwriting guidelines;
• The collapse of the certificates’ credit ratings which further indicates that the loans were not originated in adherence to those guidelines;
• The surge in mortgage delinquency and defaults which further demonstrate that the originators failed to adhere to those guidelines.

The suit maintains that “The false statements of material facts and omissions of material facts in the Registration Statements, including the Prospectuses and Prospectus Supplements, directly caused Fannie Mae and Freddie Mac to suffer hundreds of millions of dollars in damages including, without limitation depreciation in the value of the Certificates.”  The suit further alleges that the underlying mortgage loans experienced defaults and delinquencies at a much higher Rate than they would have if the loans had been underwritten as described in the Registration Statements.

This article compliments of Mortgage News Daily.  Read the rest of the article here.

Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world.
                                  ~~Harriet Tubman