RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Report: Mortgage Repayment Rates Recovering

February 24, 2016 2:00 am

Housing appears to be benefitting from the steadily improving economy. According to a recent report by the Federal Reserve Bank of New York, mortgage repayment rates are recovering, with just 2.2 percent of mortgage balances 90 or more days delinquent. More than half of all new mortgage balances went to borrowers with credit scores averaging 760.

“Non-housing debt balances have been rising, but the same cannot be said for mortgages,” says Andrew Haughwout, senior vice president at the New York Fed.  “Mortgages are being paid down faster, helping to offset the generally rising volume of originations.”

The report found 90-plus day delinquencies for all forms of household debt have dropped to their lowest level since the beginning of 2008. Only 5.4 percent of outstanding debt was in some stage of delinquency—the lowest rate since 2007.

Balances on home equity lines of credit (HELOCs) have also declined, a trend continuing for the last four years. Balances fell last quarter by $5 billion in total.

Total household indebtedness, mortgages included, stands at $12.2 trillion, according to the report.

Source: Federal Reserve Bank of New York

Published with permission from RISMedia.


5 Tips to Avoid Mortgage Fraud

February 24, 2016 2:00 am

Mortgage fraud, a crime defined by the FBI as “some type of material misstatement, misrepresentation, or omission on a loan which is then relied upon by a lender,” can result in devastating outcomes for victims. Perpetrators of mortgage fraud generally fall into two camps: those in the industry, and the borrowers themselves.

Mortgage fraud encompasses several ploys, including schemes like air loans, builder bailouts, condo conversions, equity skimming, false commercial leases or residential loans, foreclosure rescue scams, fraudulent flip appraisals, loan modification scams, and reverse mortgage and “silent second” mortgage scams. These crimes are complex cons designed to benefit to the scammer, either through profit or housing.

Mortgage fraud does not discriminate—it can affect any one at any stage of homeownership. To avoid becoming a victim, follow these guidelines.

1. Seek out lender referrals from your REALTOR®. He or she can point you in the direction of a reputable professional. Take precautionary measures and compare the lender’s credentials against the information kept by your local regulatory agency.

2. Do not include false information on a loan application, even if another party advises you to do so. Be honest about all of your personal information, including source of income, and confirm that information before signing.

3. Review all other mortgage documents thoroughly before signing them. Don’t hesitate to have a third party review them with you for clarification. Never sign a document that is blank or has incomplete information.

4. Conduct your own research on property records, including tax assessments and title history, before agreeing to the terms of any contract. Look for comparable homes in your area to verify accurate pricing.

5. Be on alert for red flags, such as “no money down” loans. These and other claims are often code for a scam. Do not click Web-based advertisements making too-good-to-be-true claims, and hang up the phone if someone calls your home using high-pressure sales tactics. Do not pay any fees outright for these offers.

Source: RISMedia’s Housecall

Published with permission from RISMedia.