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Treasury Secretary Henry Paulson is talking tough, but don't expect Washington to bring Fannie Mae to heel till the housing crisis eases.
Key lawmakers spent Thursday trying to broker a deal on a bill that would allow the government to insure up to $300 billion of home loans and overhaul oversight of key players in the mortgage industry.
Rates on 30-year mortgages eased this week, but remained above 6%, as signs that the overall economy is recovering helped offset ongoing weakness in the housing market, mortgage backer Freddie Mac said Thursday.
Freddie Mac is the latest beneficiary of wishful thinking about the housing market.
As many as 1 million borrowers from Sallie Mae, the nation's largest student lender, may have seen their credit score plunge overnight after a coding error made some student loan repayments appear delinquent.
Mortgage application volume rose 2.9% during the week ending May 9, according to trade group Mortgage Bankers Association's weekly application survey.
Question: I am reluctant to get a financial planner. Will they do an analysis of your portfolio? Does that commit me to use them? How do you get their advice without hiring them as a financial planner?
Politicians in Washington are busy arguing about the financial and moral hazards of coming to the aid of troubled homeowners.
These days, more and more people are saying "Charge it."
It's entirely possible that in the future buying a house that is shocking pink, ultramodern or in a neighborhood that's up and coming (no Starbucks yet) could add an extra fee to your mortgage for what banks perceive as added risk.
Treasury Secretary Henry Paulson is talking tough, but don't expect Washington to bring Fannie Mae to heel till the housing crisis eases.
Key lawmakers spent Thursday trying to broker a deal on a bill that would allow the government to insure up to $300 billion of home loans and overhaul oversight of key players in the mortgage industry.
Rates on 30-year mortgages eased this week, but remained above 6%, as signs that the overall economy is recovering helped offset ongoing weakness in the housing market, mortgage backer Freddie Mac said Thursday.
Freddie Mac is the latest beneficiary of wishful thinking about the housing market.
As many as 1 million borrowers from Sallie Mae, the nation's largest student lender, may have seen their credit score plunge overnight after a coding error made some student loan repayments appear delinquent.
Mortgage application volume rose 2.9% during the week ending May 9, according to trade group Mortgage Bankers Association's weekly application survey.
Question: I am reluctant to get a financial planner. Will they do an analysis of your portfolio? Does that commit me to use them? How do you get their advice without hiring them as a financial planner?
Politicians in Washington are busy arguing about the financial and moral hazards of coming to the aid of troubled homeowners.
These days, more and more people are saying "Charge it."
It's entirely possible that in the future buying a house that is shocking pink, ultramodern or in a neighborhood that's up and coming (no Starbucks yet) could add an extra fee to your mortgage for what banks perceive as added risk.
Rates on 30-year mortgages edged lower this week but remained above 6% as signs of economic stability overshadowed continued weakness in the housing market.
Question: I'm looking for a financial planner. Should I find one with who is a Certified Financial Planner (CFP)?
Fannie Mae, the nation's largest buyer of home loans, expects that the housing slump will persist into next year
Mortgage financer Fannie Mae warned Tuesday that the tumbling home values and loan defaults that have crippled the U.S. economy are likely to worsen, after posting a far larger-than-expected first-quarter loss.
Federal authorities, responding to the subprime-mortgage crisis, have formed a task force to determine if lenders or Wall Street firms participated in fraud.
A key House lawmaker on Monday complained that the mortgage industry has done little over the past month to make higher-value loans available in costly housing markets, after Congress took steps to try to infuse more cash into the so-called jumbo market.
The percentage of homeowners who refinanced with a Freddie Mac-owned loan in the first quarter of 2008 and received mortgages with loan amounts higher than their original mortgages, fell to the lowest levels since early 2004.
Congress gave final approval Thursday to legislation aimed at ensuring the problems in the credit markets don't prevent students from getting college loans.
Rates on 30-year mortgages remained above 6%, edging up to the highest level in seven weeks and reflecting continued financial market concerns about inflation.
Mortgage application volume fell 11.1% during the week ending April 25, according to the Mortgage Bankers Association's weekly application survey.
A lot of jobs are in trouble in today's tough climate, but doom and gloom are the bread and butter of a personal financial planner.
A good credit score doesn't mean you can't end up in foreclosure.
You might be listening to the symphony of financial experts extolling the virtues of a 401(k) plan, often touted as the best way to save for your golden years. But that's not necessarily the case.
For years, financial firms made good money making government-guaranteed loans to college students.
Rates on 30-year mortgages topped 6% for the first time in six weeks as financial markets grew more worried about rising inflation pressures.
The stock market hasn't been kind to investors in recent months, and that could be taking a toll on the Section 529 college savings accounts that many parents have set up for their kids. But families need to think carefully before tinkering too much with these tax-favored plans.
Patrick and Laura Matheny began saving early for their children's college education. After stashing some $50,000 in college savings accounts for their son Daniel, now 20, and their daughter Natalie, 18, they began paying down their mortgage in earnest with the intention of tapping their home equity once the bills began rolling in.
Mortgage application volume fell 14.2% during the week ending April 18, according to the Mortgage Bankers Association's weekly application survey.
Seven out of 10 seriously delinquent subprime mortgage borrowers are still not getting the help they need to keep their homes, according to a report released Tuesday by state officials working to stem the foreclosure crisis.
Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac.
Bank of America Corp. said Tuesday it will tighten its mortgage lending standards after it completes its acquisition of Countrywide Financial Corp. later this year, and it will stop making one type of loan widely blamed for foreclosures.
Former Fannie Mae chief Franklin Raines and two top executives have agreed to a $31.4 million (20 million euro) settlement with the government over their roles in a 2004 accounting scandal.
Former Fannie Mae chief Franklin Raines and two other top executives are paying a total of nearly $31.4 million in a settlement with the government announced Friday over their roles in a 2004 accounting scandal.
Paying for college is rarely easy, but this year parents and students could have a tougher time securing the necessary financing.
Krista Wallis, her husband, Joe, and her 19-year-old son from a previous marriage were living a pretty good life in Oklahoma City, Oklahoma.
Americans are becoming increasingly worried about saving for their retirement as the nation's economic outlook continues to darken, according to a new survey of workers and retirees released Wednesday.
You may think your job is safe. But you still may not be spared the pain resulting from the weak labor market.
The number of individuals filing for bankruptcy surged during the first-quarter as American households struggled to stay on top of debt, according to a report released Wednesday.
Can a piece of paper save a marriage? One suburban Boston couple figured it was worth trying so they entered into a legal agreement to manage a major source of tension in their relationship - money.
As college acceptance letters arrive this month, families will be celebrating the good news (we hope!), then bracing for the grueling process of figuring out how to pay for four years' tuition.
Mortgage rates were mixed this week as the index of leading indicators fell for the fifth straight month, home prices continued their decline and consumer confidence reached a 5-year low, Freddie Mac reported Thursday.
Consumer confidence plunged to a five-year low Tuesday as tight credit markets, rising prices and worsening job prospects weigh on American consumers. But Gerri Willis is here to give us reasons for optimism.
Earlier this year, when mortgage rates dipped below 6% for the first time since 2005, homeowners rushed to refinance costlier loans. In fact, more than six out of 10 mortgage applications so far this year have been for refis.
Lenders claim they want to help troubled mortgage borrowers stay in their homes. But the reality is that many foreclosure prevention counselors are running into lots of obstacles.
Gerri Willis answers reader mail:
Borrowers looking for fixed-rate mortgages can now find the lowest rates in more than a month. But experts warn the decline may not last for long.
From that latte addiction to another pair of shoes you just have to have, everyone makes some missteps with their money. But there are some mistakes you should never fall into.
An additional $200 billion in financing is headed to the battered mortgage markets after federal regulators Wednesday said they would allow finance giants Fannie Mae and Freddie Mac to reduce the capital they keep on hand.
The phrase "run on the bank" is really something you never want to hear. Yet that's what best describes Bear Stearns' swift demise - and it has caused investors to wonder if such a run could happen elsewhere.
The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
The credit crunch has finally hit the traditional mortgage market.
Question: I have a continuing debate with a classmate of mine regarding why a financial adviser does not include calculations/spreadsheets when determining asset allocation. My classmate claims it is trade secrets. I claim that the adviser doesn't know how to do/explain the calculations and blindly plugs the client's financial information in a system and reports the answer. Who do you think is right?
Mortgage rates rose across the board this week as lower home prices and mortgage rates contributed to a more affordable market for homebuyers, Freddie Mac reported Thursday.
It's going to cost some borrowers even more to get a mortgage beginning in 2009.
At first glance, Justin and Kim Ritchie seem in perfect financial sync. The couple, who grew up on the same street in Georgia and both went to college in Atlanta, are saving more than half of their combined six-figure income so they can buy a bigger house in their hometown of Bonaire, Ga., cover college tuition costs for sons Giuseppe, 2, and Gianluca, 1, and retire together before they hit 60.
Interest rates on 30-year mortgages are down and mortgage applications are up. Is it time to refinance?
Stocks tanked and bonds rallied Thursday as investors eyed the latest wave of credit market woes and opted to dump equities and scoop up the relatively safer government debt.
More home owners than ever are losing the battle to make their monthly mortgage payments.
After a series of gloomy readings on the economy, mortgage rates fell this week in the slumping housing market, erasing last week's jump, Freddie Mac reported Thursday.
Home foreclosures soared to an all-time high in the final quarter of last year, underscoring the suffering of distressed homeowners and the growing danger the housing meltdown poses for the economy
We can all count on the certainty of death and taxes. But many of us can add student loan debt to that list. The average student graduates with about $21,000 in debt these days.
Dear FSB: I am a small business owner (S-Corp) with over $100,000 in credit-card debt. Due to sharp drop in home sales and lack of cash flow, we are having a difficult time paying these credit cards. Being a business owner, I am looking for a program to combine and pay these cards off without having an adverse effect on my credit score. Your advice in this matter is greatly appreciated.
At the East Side Organizing Project in Cleveland, six home owners recently went in for group foreclosure counseling. When asked if any had taken out payday loans, four hands shot up.
Stocks slumped Thursday after comments from Fed chair Ben Bernanke on the banking sector and weak reports on economic growth and the jobs market revived worries about a recession.
Stocks slumped Thursday after comments from Fed chair Ben Bernanke on the banking sector and weak reports on economic growth and the jobs market revived worries about a recession.
The housing bust is handing Fannie Mae and Freddie Mac a fresh chance to rebuild their battered images. But the hefty losses the firms reported this week, and worries about the health of the economy, show it won't be easy.
Following a January surge in refinancing activities, mortgage rates rose this week in the lackluster housing market, but are likely to decline, Freddie Mac reported Thursday.
From mortgages to refinancing and home equity lines of credit -- it's getting harder for people to qualify for a loan. And that makes your credit score even more vital.
Foreclosure gets Congress' attention Tuesday when the Senate decides whether to end debate on a bill aimed at helping homeowners avoid losing their homes.
Americans are drowning in debt.
The Fed has lowered short-term interest rates this year but longer-term bond yields have risen. Call it the new conundrum. And it's adding to the confusion on Wall Street about the economy.
Adjustable-rate mortgages could become more popular as the difference between long-term fixed rates and adjustable rates increases, Freddie Mac reported Thursday.
For months, we've fretted about the Armageddon that will hit when subprime adjustable rate mortgages start resetting to much higher interest rates.
Finally, some good news about credit: Fair Isaac, the company that calculates consumer credit ratings for lenders, is rolling out a new formula that promises to favor responsible credit holders. Your FICO score could benefit.
Banks are tightening their purse strings, making it harder to qualify for loans. And now the Better Business Bureau is warning that some companies are using the credit crunch to take advantage of consumers who want to clean up their credit. Here are some top tips on avoiding these scams.
For many house hunters, these are good times. Home prices have fallen 10% or more in once-hot markets, and interest rates on mortgages of $417,000 or less have sunk to their lowest levels in four years. Today a family with solid credit and enough cash for a 20% down payment can lock in a rate of only 5.9% on a 30-year mortgage, according to Bankrate. Thank you, Ben Bernanke!
The credit crunch is hitting the college classroom.
You can spend hours negotiating the price of a new car, but even after you shake hands, the wheeling and dealing is far from over.
Mortgage rates were little changed this week as labor productivity rose higher than forecast and pending existing home sales weakened, Freddie Mac reported Thursday.
Delinquent borrowers face a dizzying array of options when it comes to saving their homes.
Six of the nation's largest mortgage lenders, in a joint effort to cool the raging foreclosure crisis, have agreed to temporarily stop foreclosure proceedings on homeowners who have fallen seriously behind in their house payments.
Countrywide Financial said Monday it will expand programs to help borrowers manage their mortgage payments regardless of the type of subprime loan they have or whether they have already fallen behind on payments.
If you've applied for a mortgage, auto loan or credit card recently, then you're probably intimately aware of what your FICO score is.
The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.
Question: I'm 23 and make $50,000 a year. I put 8% into a 401(k) with a 4% match and $1,800 a year into a Roth IRA, but I would like to start saving to buy a house. I currently have $10,000 in an online savings account that earns 5% interest. Are stocks too risky for money I want to spend in the next couple years? Will bonds make more than 5% a year?
Mortgage payments are set to jump. Home prices have plunged. "I'm outta here."
The increased share of housing debt taken on by Freddie Mac and Fannie Mae during the housing slump has put the two government sponsored enterprises at risk, it was charged Thursday.
Mortgage rates were flat this week, following a disappointing service sector report, Freddie Mac said Thursday.
More than half of borrowers who have missed mortgage payment deadlines are still in the dark about ways to avoid foreclosure, but that percentage is falling, said a survey released Thursday.
Mortgage rates ended their five-week descent following the Fed's decision to cut its federal funds rate by half of a percentage point, Freddie Mac reported Thursday.
Consumer spending posted only a narrow gain in December, another sign of a weak holiday shopping season and a slowing economy, although readings on spending and personal income were a bit better than forecasts, according to a government report Thursday.
Executives in Houston high-rises can rest easy. The mortgage industry has officially replaced Big Oil as Washington's favorite political punching bag.
What if you've done everything you could to save your house? You refinanced your risky adjustable-rate home loan to a conservative 30-year fixed-rate mortgage. You and your spouse emptied your savings accounts and pulled thousands of dollars out of your 401(k)s.
I wanted to get college funds started for the kids this year. Should I invest in a 529 plan or a Roth IRA? I thought you could take money out of your Roth for education and not be penalized. - James, Kansas.
Lenders, foreclosure-prevention groups and the government are all working to ease the shock of upcoming subprime adjustable rate mortgage resets. But the recent plunge in interest rates will also help consumers. Even so, it won't be enough to save many at-risk ARM borrowers.
Mortgage rates continued to fall this week, with 30-year and 15-year fixed-rate mortgages hitting their lowest levels in nearly four years, Freddie Mac reported Thursday.
We all know what it means to be upside-down in the physical sense. The blood rushes to your head and it's hard to breathe, all because it's not the natural state of the human body. In vehicular terms, being upside-down is a completely different, yet equally unpleasant phenomenon. When it comes to your car, truck, minivan or SUV, being upside-down in your car loan is not a physical problem, but a financial one.
Question: I'd like to reduce my tax liability for 2007. Can I still make a contribution to my 401(k) or to an IRA and have it count toward the 2007 tax year? Or is too late for me to do that now? --J. Scott
Question: I'm 24 and my employer matches up to 5 percent of my salary in my 401(k) plan. If I want to save, say, 8 percent of my salary, would I be better off putting it all in the 401(k), or limiting my 401(k) contribution to 5 percent of pay and putting the rest in a Roth IRA? -Dave Meyer, Corpus Christi, Texas
Weak retail sales and broader concerns about the economy exerted downward pressure on mortgage rates, Freddie Mac reported Thursday.
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