Government Help For Underwater Idaho Home Owners (7 Easy Steps).

March 16, 2012

If only being underwater was always this cool.

Effective March 19th the government is offering a new refinance program which offers help for underwater home owners.

If you would like to save money on your mortgage, now is the time to get your ducks in a row.

Follow these 7 easy steps today to see if you qualify:

Step 1)  Have you been making your mortgage payments on time (or at least not more than 30 days late in the last 6-12 months)?  If yes, skip to step 2!

Step 2)  Is your credit relatively good?  Typically if you have at least a 620 credit score, you might be a candidate for these programs.

Step 3)  To qualify for a HARP Refi, you need to have a loan owned by Fannie Mae or Freddie Mac.  Check these 2 websites to see if Fannie or Freddie own your loan:

If you find your home on either website, print out the confirmation and skip to step 4.  If you do not find your loan on either of these websites skip to step 3b.

Step 3b)  If your loan is not owned by Fannie Mae or Freddie Mac, then there might still be good options if you have either an FHA, VA or RD loan.  If you don’t know, you can fax or email your current mortgage statement to us and we will check with all 3 agencies for you.

Step 4)  Was your loan originated prior to June 1, 2009?  If yes, skip to step 5.

Step 5)  Fill out our refinance questionnaire and email or fax it to us. Click here to download the form.

Step 6)  Start gathering your paper work!  At the end of this post are a list of items we will need to process your refinance application (not all apply to everyone).

Step 7)  Forward this blog post to your friends and family who need help too!

We are anticipating a lot of people who need help.  We have a team of loan specialists available to make sure everyone gets the help and advice they need to take advantage of these great

opportunities.  Call us today if you have any questions.

Shanna & Dean

PS) Here is the Refinance Application Checklist

General

□  Copy of Driver’s Licenses for ALL Borrowers

□  Copy of Social Security Card for ALL Borrowers

Income/Employment Documentation:

□  Pay Stubs — Last two (or equaling one month)

□  W-2’s / 1099s — Last two years

□  Federal Tax Returns — Last two years, Personal (& Business if applicable)

□  Other source of income?  Call or email me to find out what will be required

Asset Documents:

□  Checking / Saving Accounts last two months Statements (ALL PAGES) – Internet statements must show your name, the institutions name and the account number.

□  Investment/Retirement Accounts last two months Statements (ALL PAGES) – Internet statements must show your name, the institutions name and the account number.

Credit Documents:

□  Copy of recent mortgage coupon/statement for ALL mortgages

□  Divorce Papers (if applicable)

□  Bankruptcy Filing AND Discharge Papers, complete copy (if applicable)

□  Letter of Explanation and copies of any documentation regarding credit challenges (if applicable).

Refinance Loans:

□  Copy of Homeowners Insurance Policy

□  Copy of your current Mortgage Note/Contract (usually 3-5 pages) – both first and second mortgages, if applicable.

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Mortgage Help for Underwater Homeowners HARP Refinance Benchmark Mortgage in Boise Idaho

November 8, 2011

The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.

With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in Boise and nationwide who stand to benefit from the program overhaul.

Want to know if you qualify?  You can either check out our “7 Easy Steps” or read on to see if you meet the following 5 basic criteria of the new HARP program.  If for some reason you don’t qualify under HARP, there still might be hope if you have an FHA, VA or RD Loan (however these are different programs).

1)  Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac… check these 2 websites to see if Fannie or Freddie own your loan:

2)  Your loan must have been originated prior to 6/1/2009.

3) Your home must be a 1- to 4-unit property

4) You must have a perfect mortgage payment history going back 6 months

5) You may not have had more than one 30-day late payment on your mortgage going back 12 months

Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.

With the new HARP program, underwater mortgages can be refinanced without a Loan-to-Value limit or penalty.

According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.

So what are the potential gotchas for homeowners who meet the criteria listed above?  Lenders often have minimum credit score requirements of 620 despite the Fannie Mae guidelines.  If you have mortgage insurance on your loan or a second mortgage, that can cause hiccups too.

The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance. The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to call us (208) 287-1717.

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UPDATE: Treasury Backtracks on HAMP Re-defaults

July 28, 2010

Despite the difficult economy and high unemployment rates, the vast majority of homeowners who modified their mortgages under the Administration\’s Housing Affordable Modification Program (HAMP) are staying current on their payments, surprising experts and far exceeding previous modification efforts.

via UPDATE: Treasury Backtracks on HAMP Re-defaults.

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HAFA Provisions

May 17, 2010

HAFA Provisions

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or deed-in-lieu.

In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer – provided title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

  • Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
  • Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
  • Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
  • Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
  • Uses standard processes, documents, and timeframes/deadlines.
  • Provides the following financial incentives:
    • $3,000 for borrower relocation assistance;
    • $1,500 for servicers to cover administrative and processing costs;
    • Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
  • Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

There are also specific forms that must be used with HAFA…

  • Home Affordable Modification Program – designed to enable borrowers that meet eligibility requirements to avoid foreclosure by modifying loans to a level that is affordable for borrowers and sustainable for the long-term.
  • Second Lien Modification Program – designed to enable borrowers struggling with their mortgage to lower payments on second mortgages.
  • Home Affordable Foreclosure Alternatives Program – provides borrowers that do not qualify for a HAMP modification with options to avoid foreclosure through a short sale or deed-in-lieu.
  • Treasury FHA-HAMP – designed to enable borrowers with FHA-insured first lien mortgage loans, that are modified under FHA-HAMP, eligible for certain incentive payments under HAMP.

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FHA Program Adjustments to Support Refinancings for Underwater Idaho Homeowners

March 31, 2010

Posted by Dean Tucker of Waterstone Mortgage – Prime Equity Group in Boise Idaho

The Administration announced adjustments to Federal Housing Administration (FHA) programs that will permit lenders to provide additional refinancing options to homeowners who owe more than their home is worth because of large falls in home prices in their local markets. These adjustments will provide more opportunities for qualifying mortgage loans to be responsibly restructured and refinanced into FHA loans as long as the borrower is current on the mortgage and the lender reduces the amount owed on the original loan by at least 10 percent. This option should be available by the fall.

 The new FHA loan must have a balance less than the current value of the home, and total mortgage debt for the borrower after the refinancing, including both first and any other mortgages, cannot be greater than 115 percent of the current value of the home – giving homeowners a path to regain equity in their homes and an affordable monthly payment. This refinancing will help homeowners by setting monthly payments at affordable levels and decreasing the mortgage burden for families owing significantly more than their homes are worth. Keeping more responsible families in their homes should support the continued recovery of the housing market.

FHA Refinance Option 

1)    FHA Refinance Option for Underwater Loans –Encouraging Responsible Restructuring and Refinancing.

  • Voluntary option encourages lenders and borrowers to work together, when appropriate, to restructure underwater mortgages. Because it is voluntary for lenders, not all underwater borrowers who meet criteria below will receive an FHA refinance loan.
  • Enables refinancing into more sustainable loans that are no higher compared to the value of the home than the standard FHA refinance loan (97.75 percent).
  • Lenders write down principal of the original first mortgage at least 10 percent to reduce the debt burden on borrowers, though we expect the average principal write-down to be significantly more than that.
  • Enables refinancing to a reduced monthly payment at current low interest rates to facilitate affordable homeownership.
  • Homeowner Eligibility

               i)       Homeowners must be current on their existing mortgage. They must occupy the home as their primary residence, fully document their income and have a qualifying credit score.

              ii)     As with any loan forgiveness, this short refinancing should be reflected as a negative feature on a borrower’s credit score.

              iii)   Option is available to homeowners with mortgages not currently insured by the FHA.

2)    Incentives for Principal Write-downs on Second Liens

  • All mortgage debt including second liens must be written down to a maximum of 115 percent of the current value of the home to qualify for the refinance.

3)    Transparency on Impact of These Refinancings

  • FHA will publish data on number of loans, average percentage written down and quantity of principal reduced quarterly.

4)    TARP Funded Support to Expand Impact of Refinance Option

  • TARP funds will be made available up to a total of $14 billion to provide incentives to support writedowns of second liens and encourage participation by servicers, and to provide additional coverage for a share of potential losses on these loans.

The following information provides a brief overview of the key features of the refinance option. Detailed guidelines will be announced by FHA Mortgagee Letter.

1)    FHA Refinance Option for Underwater Homeowners – Encouraging Responsible Refinancings

  • Voluntary option for lenders and borrowers
  • Encourages lenders and borrowers to work together, when appropriate, to restructure debts

              i)       Qualifying first lien mortgage loans must have a minimum write-down of at least 10 percent and total mortgage loan to value on the home can be no greater than 115 percent after the refinancing

  • Eligible underwater loans are refinanced into new FHA loans on FHA terms for full documentation, income ratios, and complete underwriting
  • Terms of FHA refinancing:

              i)       FHA loan will be equal to no more than 97.75 percent of the value of the home

              ii)     Combined mortgage debt must be written down to a maximum of 115 percent of the current value of the home

              iii)   Standard FHA mortgage insurance premium structure will apply

  • Mandatory principal write-down as part of refinance

              i)       Minimum write-down by lender of 10 percent of the unpaid balance of the original loan

  • Affordable monthly mortgage payments to facilitate affordable homeownership

              i)       New monthly mortgage payment at current low FHA interest rate

              ii)     Total monthly mortgage payment, including for second mortgage, will not be greater than approximately 31 percent of income, and total debt service including all forms of household debt will not be greater than approximately 50 percent except for some borrowers with especially strong credit histories

  • Existing lenders can retain second mortgages on the property, but only up to a combined 115 percent of the current value of the home

              i)       If there is an existing mortgage that is not extinguished, holders must agree to resubordinate and write off any amount over 115 percent of the current value of the home

              ii)     The existing first mortgage is refinanced into a fully documented FHA insured mortgage at no greater than 97.75 percent of the value of the home

  • Homeowner Eligibility

              i)       Homeowners must be current on their existing mortgage payment

              ii)     Homeowner must occupy the home as their primary residence and fully document their income

              iii)   Homeowners must qualify under standard FHA underwriting guidelines

              iv)   Homeowners must have a FICO credit score of at least 500

              v)     Existing lenders/investors holding the first lien must agree to the principal write-down requirement. Thus, not all homeowners who meet above criteria will receive an FHA refinanced loan

              vi)   As with any loan forgiveness, the short refinancing should be reflected on borrowers’ credit score

  • Performance of these refinanced loans will not count against lenders for their Credit Watch scores, if the above parameters are met

2)    Incentives for Principal Write-downs on Second Liens

  • Incentives for immediate write-down of underwater second liens by lenders will be offered to encourage write-downs in connection with the FHA refinance.
  • An extinguishment schedule will be implemented based on the below taking into account the likely distribution of the second lien lenders that will agree to immediate write-downs

Table: Extinguishment Price Schedule: Per Dollar of Unpaid Principal

  Second Lien CLTV Range 
Combined LTV 105 to 115 115 to 140 > 140
Projected Schedule 0.21 0.15 0.10

 

3)    Transparency on Impact of These Refinancings

  • FHA will publish data on numbers of loans refinanced in this way including average percentage written down and quantity of principal reduced quarterly 

4)    4. Up to a total of $14 billion in TARP funds to expand impact of refinance option

  • TARP funds will be made available for incentives to support write-downs of second liens and encourage participation by servicers as well as the provision of coverage for some share of potential losses on loans. Total support provided through these three mechanisms will not exceed $14 billion
  • TARP funds will be used to provide coverage for a share of losses on loans up to a specified amount. The FHA will provide remaining loss coverage up to the maximum insurance coverage. Thus, the new lender will have a loan that is backed by the United States for up to 97.75 percent of the home value, as with other FHA refinance loans
  • TARP will purchase a letter of credit that will provide this loss coverage

(Waterstone Boise) (Prime Equity)

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FHA Proposes Loosening its Flipping Rules

January 20, 2010

By Dean Tucker, Waterstone Mortgage – Prime Equity Group in Boise Idaho

It appears that starting February 1st, 2010, HUD / FHA is going to loosen their guidelines pertaining to property flips.

THIS IS HUGE!!! According to HUD’s Shaun Donovan, some of the restrictions will be temporarily lifted beginning February 1st to further promote home sales. Here are some basic guidelines we have been able to research:

  • The transaction must be “Arms Length”.
  • The seller MUST hold title to the property at the time of the sale.
  • There shall be no pattern or previous property flipping in the past 12 months.
  • The property must be marketed openly and freely (i.e. MLS).
  • If the home being “flipped” has a new sales price that is 20% + greater than the previous purchase price, then the seller must document any repairs and rehabilitation performed on the home and/or a 2nd appraisal will be needed and requested. (In these cases it should be expected that a home inspection will be required as well. Currently, FHA does not require home inspections OR termite / WDO inspections unless the contract calls for them. FHA only recommends the buyer order these services.)

Waterstone Mortgage Corporation is a true Mortgage Bankers, we underwrite and fund loans for over 30 of the top mortgage lenders in the country, the “Who’s Who” in mortgage lending. Our parent company, Waterstone  Bank, is $1.9 Billion strong.

(Home)

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FHA Announces Major Changes, Effective Immediately

January 20, 2010

By Dean Tucker, Waterstone Mortgage – Prime Equity Group in Boise idaho

This morning the FHA announced a series of changes designed to protect the federal agency that has emerged as the cornerstone of the mortgage market as the housing sector wobbles toward recovery. 

Consumers, Lenders and Realtors may find some of these new rules painful — but necessary.  With FHA hovering around 40% of all new loan originations, even these small changes have a major impact on the continued health of the housing market.

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending.

  • The first step will be to raise the up-front MIP from 1.75% to 2.25% and request legislative authority to increase the maximum annual (paid monthly) MIP that the FHA can charge.
  • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
  • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
  • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

  • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
  • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
  • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

  • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
  • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Waterstone Mortgage Corporation is a true Mortgage Bankers, we underwrite and fund loans for over 30 of the top mortgage lenders in the country, the “Who’s Who” in mortgage lending. Our parent company, Waterstone  Bank, is $1.9 Billion strong.

(Home)

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Federal Reserve policymakers were conflicted

January 12, 2010

Some Federal Reserve policymakers last month were conflicted over whether to expand or cut back a program intended to drive down mortgage rates and bolster the housing market, according to a document released Wednesday.

Minutes of the Fed’s closed-door meeting on Dec. 15-16 revealed that a “few members” thought that the Fed’s $1.25 trillion program to buy mortgage securities from Fannie Mae and Freddie Mac might need to be expanded and extended beyond its current end date of March 31. Such an additional dose of stimulus would be especially needed if the economic recovery were to weaken, they argued.

However, one member thought the program could be “scaled back” given the improvement in economic and financial conditions.

The debate over the future of the program comes amid uncertainties about the vigor of the budding economic recovery.

At the December meeting, Fed policymakers decided not to make any changes to the program. At their September meeting, they opted to slow the pace of the purchases, wrapping them up by the end of March, rather than the end of 2009.

The minutes don’t identify speakers by name but seeks to provide a more detailed account of the Fed’s private discussions.

Some Fed officials remained concerned about the economy’s ability to mount a self-sustaining recovery once government supports are removed. To that end, those officials worried that improvements seen in the housing market might be “undercut” this year as the Fed’s mortgage-buying program winds down, the government’s home buyer tax credits expire at the end of April and home foreclosures grow.

Getting the housing market back on firm footing is a key ingredient to a lasting recovery. The collapse of the housing market, which dragged down home prices with it, was the catalyst for the longest and worst recession to hit the country since the 1930s.

“Generally the outlook was for gains in housing activity to continue. However, some participants still viewed the improved outlook as quite tentative and again pointed to potential sources of softness,” the minutes said.

To nurture the recovery, the Fed at the December meeting kept its key bank lending rate at a record low near zero and pledged to hold it there for an “extended period.” The goal: low interest rates will entice people and businesses to boost spending, which will fuel economic growth.

RATES REMAIN NEAR ZERO: Fed left rates unchanged at Dec. meeting

Economists said the Fed is all but certain to leave rates at record lows at its next meeting on Jan. 26-27 and probably for a good chunk of this year.

“Overall, there is nothing here to suggest that interest rates will rise for quite some time,” Paul Ashworth, economist at Capital Economics., said of the Fed minutes. Ashworth is among the economists predicting economic growth will slow in the second half of this year as President Barack Obama’s $787 billion stimulus package of tax cuts and increased government spending fades.

Most Fed officials don’t currently see inflation as a problem because companies have “little ability to raise their prices” in the fragile economic environment. But they had mixed views about inflation risks.

Some noted that rising prices of oil and other commodities could boost inflation pressures down the road. Others thought investors’ expectations of inflation could edge up because of large federal government budget deficits and vast sums of money the Fed pumped into the economy to fight the financial crisis.

However, others predicted that the sluggish recovery and “slack” in the economy — meaning factories operating well below capacity and the weak labor market — would keep inflation under wraps.

At the December meeting, Fed staff gave several presentations on research into “inflation dynamics.”

The biggest challenge facing Fed Chairman Ben Bernanke and his colleagues is to decide when to start boosting interest rates. Moving too soon could short-circuit the recovery. Waiting too long could unleash inflation.

(Home)

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The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac

December 25, 2009

NEW YORK — The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

The Treasury Department said Thursday it removed the $400 billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government’s estimate this summer of $170 billion over 10 years.

Treasury Department officials said it will now use a flexible formula to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. Under the formula, financial support would increase according to how much each firm loses in a quarter. The cap in place at the end of 2012 would apply thereafter.

By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress. But the timing of the announcement on a traditionally slow news day raised eyebrows.

“The companies are nowhere close to using the $400 billion they had before, so why do this now?” said Bert Ely, a banking consultant in Alexandria, Va. “It’s possible we may see some horrendous numbers for the fourth quarter and, thus 2009, and Treasury wants to calm the markets.”

Fannie Mae and Freddie Mac provide vital liquidity to the mortgage industry by purchasing home loans from lenders and selling them to investors. Together, they own or guarantee almost 31 million home loans worth about $5.5 trillion, or about half of all mortgages. Without government aid, the firms would have gone broke, leaving millions of people unable to get a mortgage.

The biggest headwind facing the housing recovery has been the rise in foreclosures as unemployment remains high. Treasury said its latest move could allow Fannie and Freddie to play a bigger role in restructuring mortgages for troubled borrowers.

Treasury officials will provide an updated estimate for Fannie and Freddie losses in February when President Obama sends his 2011 budget to Congress. Though the administration has yet to disclose its long-term plans for the two companies, they are unlikely to return to their former power and influence.

The news followed an announcement Thursday that the CEOs of Fannie and Freddie could get paid as much as $6 million for 2009, despite the companies’ dismal performances this year.

Fannie’s CEO, Michael Williams, and Freddie CEO Charles “Ed” Haldeman Jr. each will receive $900,000 in salary, $3.1 million in deferred payments next year and another $2 million if they meet certain performance goals, according to filings with the Securities and Exchange Commission.

The pay packages were approved by the Treasury Department and the Federal Housing Finance Agency, which regulates Fannie and Freddie.

That pay is far less than what their predecessors earned. Former Fannie CEO Daniel Mudd received $10.2 million in 2008 and former Freddie CEO Richard Syron pocketed $13.1 million. Both execs were ousted when federal regulators seized the companies in September 2008. The federal government blocked exit packages for the pair worth up to $24 million.

The chief executives’ pay could spark new criticism about the government’s numerous bailouts, but that may be unfounded, said Mark Borges, principal with management consulting firm Compensia.

Haldeman and Williams each could command between $5 million and $10 million in a similar position in the private sector, Borges estimated, and without the notable challenges and public scrutiny they face at these companies.

“I doubt too many people would look at these jobs and say, ‘Gosh, I would love to go there for my next career move,”‘ Borges said. “The government is getting top notch executives to solve problems that are not easy to solve.”

The bulk of their pay is also not guaranteed, Borges said, so these executives can’t pocket and run and must meet certain long-term goals or risk giving some of it back.

Freddie Mac’s board sets the performance goals for the chief executive, which won’t be disclosed until next year. Fannie Mae’s filing outlined its corporate goals including “being a recognized leader in the housing recovery,” “protecting taxpayers,” and “managing risk more effectively.”

Fannie Mae and Freddie Mac declined to offer further details on CEO performance goals.

Public anger over Wall Street pay boiled over earlier this year. In response, the Obama administration imposed pay curbs on banks that received government bailouts. All the major banks have since repaid their federal money, largely to escape caps on executive pay.

Former Bank of America CEO Ken Lewis, for example, agreed to forgo his salary and bonus this year under pressure from the government. Last year, he pocketed more than $9 million in total compensation. Bank of America received $45 billion in government assistance, which it has since repaid.

Freddie Mac hired Haldeman, a former mutual fund executive, in July. At the time, the company disclosed his annual salary of $900,000 but did not disclose other incentive payments. In September, the company hired a new chief financial officer, Ross Kari, and said his pay package would be worth up to $5.5 million.

Williams, formerly Fannie Mae’s chief operating officer, took over as CEO in April after the first government-appointed CEO, Herbert Allison, took a job at the Treasury Department. Williams earned a base salary of $676,000 last year, plus a retention award of $260,000.

Washington-based Fannie Mae was created in 1938 in the aftermath of the Great Depression. It was privatized 30 years later to limit budget deficits during the Vietnam War. In 1970, the government formed its sibling and competitor McLean, Va.-based Freddie Mac.

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Looking Beyond the Tax Credit

December 22, 2009

The new $6500 tax credit for existing homeowners makes buying a new home more attractive for about 20 percent of owners according to a new Coldwell Banker survey released yesterday.

No doubt the tax breaks for both first-time and existing buyers will mean a lot of business for real estate brokerages, but Coldwell Banker is also focused on what happens after credits expire next spring.

“Our survey offers positive indicators that there are more existing homeowners considering a home purchase today than there were six months ago, and the majority of respondents say they would engage in ’smart spending’ that would directly benefit the U.S. economy,” said CB’s CEO Jim Gillespie in a prepared statement.

In interview with Real Estate Economy Watch, he shared some of his personal insights regarding the credit and its aftermath.

“There’s no doubt that the first-time homebuyer credit really worked this year. Every sale generated $60,000 in revenues and jobs for the local economy beyond the value of the transaction itself. Multiply 400,000 sales times $60,000 and you get an idea of the impact on the economy,” he said.

“Now we’re reaching out to our sales people across the country to make sure they are prepared for frequently asked questions about the new credits for existing buyers, whether they are move-up or move-down buyers.” However, it’s not just the credits that concern Gillespie. He’s also thinking about what happens to the market when the credit ends.

“Will there be a lot of scrambling among buyers to get in under the deadline like there was in October? This time, there has been clear communication early on as to when it will expire. The two month period to close should avoid a lot of uncertainty,” he said.

“What are the buyers going to look like after April 30? Right now there is a lot of uncertainty about what will happen. We’re in new territory.”

Founded in 1906, Coldwell Banker is the oldest real estate company, with nearly 3,900 independently owned and operated real estate offices in the US and around the world.
http://ping.fm/ylFxq

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