“Recently, mortgage giant Fannie Mae revised its forecast for the U.S. housing market, and the news is not too good. Basically, thanks to a weak first half of 2014, Fannie now thinks total home sales will actually be lower in 2014 than they were in 2013, and that 2015 won’t be much better.”
In his interview with HousingWire, Mel Watt, the director of Federal Housing Finance Agency urges the opening of the mortgage credit box to less-than-optimal borrowers.
“We are getting lenders to reduce some of the credit overlays,” he said inthe exclusive interview.
Furthermore, FICO scores will ignore debts that have been paid off or settled, and a lesser weight will be assigned to medical bill collections, which account for about half of all unpaid collections on consumers’ credit reports.
Nonetheless, the average FICOs have been going down steadily since 2006 and it’s not hard to see why, what with the housing crisis, the financial meltdown and the general recession and record unemployment and underemployment.
So what can those with a FICO that is under 620 do to get a mortgage?
“As a result of the collapse of the mortgage market, many feel that replacing Fannie Mae and Freddie Mac is a necessity, but, according to an article recently published in Forbes, phasing out Fannie and Freddie as a consequence to the mortgage meltdown is like “pulling over when the check engine light comes on and changing a tire, the fix has nothing to do with the problem.”
“Boomers may be slow to downsize for several reasons, wrote Mr. Simmons. For one, they may like their homes. A 2010 survey by the AARP, the seniors-advocacy group, found 84% of boomers said they would prefer to live in their current houses for as long as possible.”
What goes down still goes up.
” Meanwhile foreclosure starts in the first quarter increased from a year ago in 19 states, including New Jersey (up 83 percent), Maryland (up 43 percent), Indiana (up 38 percent), Delaware (up 24 percent), Connecticut (up 13 percent), and California (up 10 percent). The increase in California was the first annual increase since the second quarter of 2012, and the first double-digit percentage increase since the fourth quarter of 2009.”
“There were a total of 43,000 completed foreclosure in February, CoreLogic said today. This was 15 percent fewer than in February 2013 when foreclosures numbered 51,000. It was also 7,000 fewer foreclosures than in January 2014, a decrease of 13.1 percent. The company said that since the financial crisis began in September 2008, there have been approximately 4.9 million completed foreclosures nationally. “
That really helps get rid of the vacant space,” Coyle said. “It tightens that office market up and it’s bringing young people, 30-somethings, not only into Northeast Ohio but to the Cleveland CBD. They want to live, work and play here. That’s bringing energy and excitement to the CBD.” – See more at: http://www.rejournals.com/2014/03/10/people-are-moving-back-into-downtown-cleveland-and-thats-good-news-for-all-of-northeast-ohio/#sthash.Lt9sfdtD.dpuf