Predicting the next wave of mortgage financial woes
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Some interesting consumer news trickled out of the Mortgage Brokers Assn.’s annual regulatory conference last week in Washington, D.C.
Jason Connolly, senior vice president of sales and marketing for Irvine-based Mavent, which markets automated compliance software to check mortgage loan applications, was among the attendees and identified three trends that soon may be the topic of water-cooler conversation.
Loan modifications: More lenders are contacting homeowners to entice them to modify their mortgage terms. Although lower interest rates may look great in the short run, loans that reset after a few years could just be postponing a problem. Before opting for a reset, consumers should check out alternatives, such as programs offered by the Federal Housing Authority and other groups.
Foreclosures rise on fixed-rate mortgage loans: It’s not just a problem for subprime or exotic loan borrowers anymore. More consumers with fixed-rate mortgages are filing for foreclosure, reports Jay Brinkmann, chief economist and senior vice president of research and economics for the MBA.
HELOC ice jam: A number of lenders are freezing home equity lines of credit as the financial system attempts to rebound. Consumers who have been using their HELOCs as ATMs may find that that source of ready cash has dried up.
-- Lauren Beale
Thoughts? Comments?
