Marc Sanders, who lost his job as a radiology consultant in October, was thrilled to find out he qualified for a federally funded program that will make up to $3,000 a month in mortgage payments on behalf of unemployed homeowners in California.

Sanders was eligible for the maximum assistance – $3,000 a month for six months – from the Keep Your Home California program, but he was shut out for an astonishing reason.

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the best choice for both the lender and the borrower because the home will maintain it’s value better when occupied, and the borrower gets to reduce their debt load with no deficiency judgement against them. If you were not able to get your loan modified, this is the best option for you since a foreclosure or bankruptcy can affect your credit for 7-10 years. In addition, there is no cost for the program and you will also receive a $3000 incentive at closing.

The Unemployed Mortgage Assistance Program (UMA) is the first of four programs the state is scheduled to roll out as part of an initiative called “Keep Your Home California.”  The programs are supported by $2 billion in federal dollars provided through the Hardest Hit Fund.
Eligible homeowners who are struggling to make their mortgage payments after suffering a job loss may qualify for assistance.

Read more here.

The U.S. Treasury Department has approved CalHFA’s plan to use nearly $2 billion in federal funding to help California families struggling to pay their mortgages.

The Keep Your Home California programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from mortgage servicers.

Primary objectives for the Keep Your Home California programs include:

• Preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures
• Assisting in the stabilization of California communities

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Wells Fargo Home Mortgage Announces New Programs

Minimum Loan Scores for FHA Purchase Transactions
As of Jan. 15

1. Loan score lower than 500 = Not allowed
2. Loan Score 500 – 579 allowed with maximum 90% Loan To Value and additional requirements
3. Loan Score 580 – 599 allowed with maximum 95% Loan To Value and Additional requirements
4. Loan Score 600 and higher allowed with maximum 96.5% Loan To Value

Before entering into an FHA Purchase Transaction, all loans with FICO scores below 600 must be submitted to underwriting for an approved exception.

Rates for fixed and adjustable loans are even better than last year at this time, according to the Realty Times.

30-year fixed-rate mortgage (FRM) averaged 4.71 percent with an average 0.8 point for the week ending January 13, 2011, down from last week when it averaged 4.77 percent. Last year at this time, the 30-year FRM averaged 5.06 percent.

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The estimates we have seen on how much Fannie Mae and Freddie Mac are costing taxpayers may be overblown. According to NewsGenius,

The Federal Reserve reported a record payout to the Treasury Department Monday, as its profits were boosted by government-sponsored entity securities it purchased during the financial crisis. Income from these investments totaled roughly one-half of the $148 billion cost of Fannie and Freddie while in conservatorship.

But FTN Financial analysts believe the Fed profits from the $1 trillion in mortgages it bought through 2009 show that estimates on the total cost to taxpayers from the GSEs may be overblown.

“For all the fuss and headlines that will accompany discussions of GSE reform this year, taxpayers have not suffered to the degree they’ve been lead to believe,” Vogel said.

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2010 was a very good year for the Australian and Canadian housing markets, among others.

Although not as hot as in previous years, Australia’s housing market in 2010 was ranked No. 1 in the world by Toronto-based Scotiabank, an international financial organization that dates back to 1671.

Of the 12 advanced nations tracked by Scotia Economics’ latest Global Real Estate Trends report, the estimated average inflation-adjusted home prices increased this year in six (Australia, Canada, France, Sweden, Switzerland and the U.K.), were flat in two (Germany and the United States) and fell in four (Ireland, Italy, Japan and Spain). In 2009, eight of the 12 markets suffered price declines.

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The Treasury Department’s Home Affordable Modification Program, intended to reduce the mortgage payments of homeowners nearing foreclosure, has not been as effective as many had hoped. According to Housing Wire, lenders started 43,739 new, three-month HAMP trials in the third quarter, down 84% from the peak of 272,709 a year ago.

Permanent modifications are down, too. Lenders reported 58,790 permanent conversions in the third quarter, according to the OCC, down 45% from the previous quarter but well above the 783 reported in third quarter of 2009 when the program was only six months old.

But through October, lenders converted 519,000 trials into HAMP permanent modifications.

Meanwhile, lenders foreclosed on 382,000 homes in the third quarter, a 31.2% jump from the previous quarter, according to the OCC.

Read the full article here.