Daily Mortgage News

This section of Home Buying Institute will help you keep informed about the mortgage industry, mortgage loans and related news. Being well-informed is the first step to making good financial decisions.

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Mortgage Industry News for the Mortgage Industry

Erratic 1-Year Activity as Apps Ease
The average 1-year Treasury-indexed adjustable-rate mortgage jumped from a week earlier to 5.3 percent, according to Freddie Mac's Primary Mortgage Market Survey for the week ending Aug. 21. But the underlying 1-year index, the 1-year Treasury yield, fell 13 basis points during the same period, data from the U.S. Department of the Treasury indicated. Meanwhile, the Mortgage Bankers Association's survey of mortgage bankers, commercial banks and thrifts for the week ending Aug. 15 indicated overall loan applications fell 2 percent from the prior week.
Foreclosure Class Action Against WaMu
In a class-action lawsuit alleging bad faith foreclosure tactics, a Massachusetts couple sued Washington Mutual Bank for negligent misrepresentation. In their complaint, the borrowers allege that WaMu foreclosed on their home despite public statements that it would assist distressed borrowers in fashioning repayment plans and other alternatives to foreclosure, as well as statements directly to the Pestanas that it would not foreclose while it considered their application for homeowners assistance. The borrowers filed the lawsuit on behalf of themselves and a class of similarly situated Massachusetts residents to challenge WaMu's lack of good faith during the process of foreclosure.
LendingTree Settles Lawsuit
IMX Inc. announced it reached a settlement with LendingTree LLC. IMX had originally sued LendingTree in 2003 over patent infringement. LendingTree had appealed a 2006 judgment for $6 million in favor of IMX.
HUD Eases Loan Modification Procedures
Mortgagees can now use the Treasury 10-year constant maturity as a basis for establishing the maximum interest rate for loan modifications, according to the U.S. Department of Housing and Urban Development. When a borrower can afford to maintain a mortgage after a modification or loss mitigation but cannot afford to reimburse the servicer for costs of a foreclosure that has already been initiated, the costs can be rolled into the loan modification or partial claims. A third change to the agency's loss mitigation program is the inclusion of all payments due plus an additional month in loan modifications.
IndyMac Pursues Wide-Scale Alt-A Modifications
The Federal Deposit Insurance Corporation announced that IndyMac Federal Bank FSB will implement a new program to systematically modify troubled Alt-A mortgages. The program will initially be targeted at borrowers who have defaulted or are seriously delinquent. It will subsequently seek to work with borrowers who cannot afford payments due to payment resets or changes in the borrowers' repayment capacities.

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