BUSINESS
By Kenneth R. Harney | August 29, 1999
FACED with mortgage rates over 8 percent, homebuyers are rediscovering a type of loan that's been out of favor for most of this decade: short- and intermediate-term mortgages that cut your fixed rate by a half to a full percentage point.Mortgage companies and large investors such as Freddie Mac report that three-year, five-year and seven-year loans -- all with optional features converting to 30-year financing -- have suddenly begun pulling in rate-sensitive buyers and refinancers. The national financial reporting service HSH Associates, which surveys more than 2,500 lenders, found that last week five-year "hybrid" loans carried average rates of 7.38 percent nationwide compared with 30-year conventional mortgage rates averaging 8.01 percent.
BUSINESS
By Jane Bryant Quinn | February 23, 1998
IF YOU'RE DUE a refund on your income taxes, how fast can you get it? And is it worth taking a quick loan to lay your hands on the money even sooner?Here are the outside times for receiving your refund, according to the IRS: about five weeks if you send your tax return by mail; three weeks if you file electronically and get a check back by mail; one to two weeks for electronic filers who have the refund wired directly to their bank accounts.You can get money even faster -- within two to four days -- if you take what's called a "refund anticipation loan," offered by major tax preparers.
BUSINESS
By Kenneth R. Harney | June 30, 1996
WASHINGTON -- In a bellwether victory for consumer advocates, a prominent mortgage lender has agreed to settle a national class-action lawsuit challenging its funneling of undisclosed fees to local mortgage companies who persuade borrowers to pay higher than the prevailing rates or terms for their home loans.A spokesman for Ford Consumer Finance Co., a mortgage subsidiary of the giant automaker, confirmed that his company has decided to settle the year-old suit rather than incur additional litigation costs.
BUSINESS
By Kenneth R. Harney | February 4, 1996
WASHINGTON -- The federal agency that helps millions of veterans obtain mortgage money is cracking down on lenders who overcharge unsuspecting applicants seeking to lower the interest rate on their existing loans.In a national policy directive sent out to all Department of Veterans Affairs offices Jan. 25, the head of the VA loan program warned that the agency "has recently seen a number of [refinance] loans in which the veteran is being charged a high number of points, and the points are included in the loan."
BUSINESS
By Kenneth R. Harney | October 6, 1996
HOME LOAN applicants nationwide should be the beneficiaries of a new Federal Reserve Board rule on upfront disclosure of fees charged by mortgage brokers.Effective Sept. 30, all fees levied by loan brokers and paid directly by the borrower must be included as part of the mandatory truth-in-lending "finance charge" disclosure that consumers receive within three business days of applying for a home mortgage.Before the new rule, the federal government offered no uniform guidance on what fees brokers had to disclose up front as part of the finance charge or annual percentage rate (APR)
BUSINESS
By Kenneth B. Harney | September 15, 1996
A $4 MILLION Justice Department settlement with a large mortgage company this month highlights a lending industry practice that minority, female and senior-citizen loan applicants nationwide should know about -- and avoid whenever possible.The settlement, negotiated with California-based Long Beach Mortgage Co., alleged that not only employees of the firm but its network of independent mortgage brokers routinely charged minorities, women and elderly applicants significantly higher fees or "overages" than they charged white male applicants.
BUSINESS
By Kenneth R. Harney | August 6, 1995
Washington -- A wave of national class-action suits against prominent lenders is focusing new attention on a widespread practice that few home loan applicants understand: The payment of extra money to mortgage companies who "upsell" the rates or fees on loans they originate.The extra fees -- known in the trade as overages or yield-spread premiums -- typically are paid to local mortgage brokers by large lenders who purchase their home loans. The concept is straightforward: If a mortgage company can deliver a loan at higher than the going rate, or with higher fees, the loan is worth more to the large lender who buys it. For every rate notch above "par" -- the lender's standard rate -- the lender will pay a local originator a bonus.
BUSINESS
By Kenneth R. Harney | September 24, 1995
WASHINGTON -- Top legal experts who advise banks and mortgage lenders have just sounded an alarm that homebuyers and refinancers ought to hear, too.The warning in brief: Federal investigators are expanding their fair lending focus to a potentially explosive new arena -- the amount of fees charged female and minority mortgage applicants compared with the fees charged men and whites.Washington banking attorney D. Jean Veta argues that "women seem to be prime candidates" for being quoted and charged higher points and other fees on mortgage applications.
BUSINESS
By Dian Hymer | July 24, 1994
How do I get prequalified for a loan?The first task to take care of, even before you start looking athouses, is to find what price home you can afford to buy. Lender prequalification involves a brief, no-obligation meeting with a loan agent or mortgage broker to determine what size loan a lender is likely to give you. This loan amount, plus the cash you have for a down payment and closing costs, will determine how much house you can afford.Make an appointment for a prequalification interview and be prepared to discuss the intimate details of your financial situation.
BUSINESS
February 27, 1994
Maryland home sales rose despite Jan. chillHome sales throughout Maryland rose in January, despite the month's bad weather, according to the Maryland Association of Realtors.Pending sales -- homes placed under contract -- reached 2,122, up 3 percent compared to January 1993.Sales that settled jumped 6 percent to 2,985. The average sale price for a home in Maryland fell 4 percent, to $135,205.Mortgage firm offers rebate to customersProsperity Mortgage, mortgage subsidiary of Long & Foster Real Estate, is offering a cash rebate to any customer who doesn't receive a loan decision within 30 days of application.