Mortgage

Maryland Attorney General Douglas F. Gansler is teaming up with St. Ambrose Housing Aid Center to give homeowners information about help tapping into available mortgage relief and preventing foreclosure. The workshop, one in a series, is scheduled for 10 a.m. Saturday at St. Matthew Catholic Church, 5401 Loch Raven Blvd. Individuals who borrowed home loans through the country's five largest mortgage lenders -- Ally/GMAC, Bank of America/Countrywide, Citi, JPMorgan Chase & Co./Washington Mutual or Wells Fargo/Wachovia -- may qualify for relief.

Zillow says the 30-year fixed-rate mortgage continues to fall. The rate today is 3.39 percent, down from 3.43 percent a week ago. That's the lowest rate since Zillow has been tracking the data in 2008. “Last week, rates were pushed to another all-time low by the worse-than-expected employment report on Friday. This week, rates should remain fairly flat with limited scheduled news to alleviate US and European concerns,” says Zillow's Erin Lantz in a press release. For those who can afford a 15-year loan, the fixed rate is now 2.83 percent.

Homeowners hoping to see benefits from a national mortgage settlement — and others struggling with their payments — can attend a workshop in Baltimore Tuesday for information and assistance. The Maryland attorney general's office said the event will be held from 7 p.m. to 9 p.m. at St. Anthony of Padua Church, 4414 Frankford Ave. Nonprofit housing counselors and others who work with distressed borrowers will be on hand. The settlement, with the country's five largest mortgage servicers, was over allegations of widespread foreclosure and mortgage-servicing abuses.

Reverse mortgages should never be entered into lightly. These are mortgages for those age 62 and up that allow them to pull the equity out of a house without have to sell it. The loan and interest is repaid once the homeowner moves or dies and the house is sold. The mortgages are so complicated and counterintuitive that homeowners are required to undergo counseling before they can take one out. This often costs money. But the Consumer Credit Counseling Service of Maryland and Delaware, which usually charges $125, is offering counseling for free thanks to funding it has received.

Much of the wealth of millions of baby boomers is tied up in their houses — a sure sign we're going to see a growing demand for reverse mortgages. These mortgages allow older homeowners to drain the equity in their house without having to sell it or make monthly payments. For now, though, these complex loans make up only a tiny percentage of housing loans — and that's a good thing. It gives regulators, the industry and consumer advocates time to bolster borrower protections and education before widespread problems occur.

Maryland is offering a new mortgage program that gives discounts to military families and veterans. The "Maryland Homefront" loans, announced Tuesday, are part of the state's Maryland Mortgage Program. The loans — available through June of next year or until the $50 million reserved for them is used up — will come with an interest rate that's half a percent lower than the Maryland Mortgage Program's overall rate. That's a savings of about $840 a year on a $250,000 home, the state said.

A Crofton man was sentenced Wednesday to more than four years in prison for redirecting about $5 million in mortgage payoffs on 17 Maryland properties to himself and a co-defendant, according to federal prosecutors. Todd R. Bettin, 42, was assistant manager of At Home Mortgage when he conspired with the owner of a Gambrills settlement company to illegally benefit from money intended to pay off clients' mortgages, the Maryland U.S. attorney's office said. Starting in 2007, Bettin and co-defendant Gary Pierce — now sentenced to six years in prison — diverted or held onto payoff funds from mortgage closings for days, weeks or years, according to the Maryland U.S. attorney's office.

Should Baltimore spend almost all the $10 million it's getting from the nationwide mortgage settlement on demolishing vacant homes? That's the city's plan . Marceline White questions the wisdom of that idea. White, executive director of the Maryland Consumer Rights Coalition and a Bolton Hill resident, wonders why the city isn't instead putting a sizable chunk of the money toward rehabbing, adding to the stock of livable homes and hopefully also the number of city residents.

The state's mortgage program is offering a come-on it hopes buyers will respond to -- a 2.875 percent interest rate. The Maryland Mortgage Program has $30 million set aside to make loans at that rate over the next three months or until the money is used up. The going rate nationwide, according to Freddie Mac , is about 3.75 percent this week . What's the catch for the lower rate? It's not available in most of Maryland. Here's a map of the "targeted areas," which in this region includes Baltimore and small slices of Baltimore County , Anne Arundel and Harford . Also, you must live in your home, which means you can't turn landlord later with a MMP loan if you're having trouble selling the place.

Baltimore is getting $10 million from the national mortgage settlement, and city officials intend to use almost all of it to demolish vacant homes -- about 700 in total. That's a snippet in the story about the state attorney general announcing how the state-controlled $60 million from the settlement will be spent . But it's interesting, and I thought you might like to know more. Julie Day, deputy commissioner for land resources at Baltimore's housing agency, said city officials have been working on a demolition strategy in the past few months and are delighted to be handed millions of dollars for anti-blight work.