FHA stands for the Federal Housing Administration. They are a government agency that insures against defaults of mortgage loans. The FHA has been around for a long time and helps to guarantee homeowners loans with mortgage lenders. Their role is to set qualifying standards for lenders to follow, in exchange they insure the loan in the open market, which helps lenders to qualify borrowers who may not have been eligible for a conventional home loan. The FHA itself is not a lender and you can not contact them to apply for a mortgage loan. You will need to contact a lender that is a licensed FHA lender to apply for a mortgage.
President Bush recently announced some proposed changes to the FHA program, including his proposal for the FHA Secure program. This program would help homeowners who have fallen behind on there house payments as a result of originally taking out an adjustable rate mortgage. Traditionally these homeowners would not be able to qualify into an FHA refinance if they were over 30 days late on their mortgage payment. Under the new proposal you may be eligible if you can prove your late payments were a result of your interest rate adjusting from your original variable rate loan. If you would like further details our lender partners can offer you more insight and free interest rate quotes to find the best program for your situation.
If you have an adjustable rate mortgage coming due or your interest rate is already too high, you owe it to yourself to look at the safe and affordable financing options provided by government-insured mortgages through the Federal Housing Administration (FHA).
FHASecure is a refinancing option that gives homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHA-insured mortgage. With FHASecure, the lender will not automatically disqualify you because you are delinquent on your loan, and the lender may offer you a second mortgage to make up the difference between the value of your property and what you owe.
WHO IS ELIGIBLE
So long as you are current on your mortgage and have sufficient income to make the mortgage payment, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, in the case of an Option ARM, the "recasting" of the mortgage to fully amortizing.
By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments. FHASecure can improve the quality of life for many communities by helping to reduce the number of mortgage defaults and bringing greater stability to local housing markets.
INFORMATION On Bailout Loans, Refinancing,
& Foreclosure Purchase...
New Century Mortgage Home Loan 123 Quick Loan Funding
The Governments FHA Refinance can help homeowners in trouble.
Can you qualify to put past due payments into your refinance?
FHA Refinance can give you a below market rate and a fresh start !
Read Below For More Information !
Real Estate and Mortgage Services New Century Refi. Com
Before You Proceed With Refinance Assistance- It is highly recommended that you check your own credit report and obtain your 3 credit report scores. Signing up with an agency is low cost work, leading to lower interest rates. If you check your own credit, it will not lower your scores. Utilizing credit repair is a key for lower rates. Get the foundation on which you can begin analyzing your options. Doing this now will also alert you to possible problems before you start the refinance process. Credit reports, score analysis, and solutions will allow you to answer lender or broker questions during the initial interview process.
Our site is not affiliated, endorsed, or otherwise doing business with / or as New Century Mortgage. We are not a government enitity, do not claim to be, and are not associated with the restructuring. This message is a public service announcement.
New Century Refinance is Located At 18400 Von Karmen, Irvine CA 92604
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If you are interested in purchasing a property that one of the lenders is foreclosing on above or would like more information on purchasing a home at below market value, CLICK HERE.
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Email: info@CarringtonCap.com | Phone: 203.661.6186
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High-risk mortgage lender New Century filed for bankruptcy and fired over half its work forcein April 2007 as subprime worries by lenders resulted in lockouts by the capital markets. Eventually, all of its work force was terminated. The trend of rising defaults on variable-rate mortgages pinched lenders who made loans to borrowers with spotty credit histories, leaving many in financial trouble.
New Century Mortgage was one of the largest providers of home mortgages. They specialized in high loan to value loans
and risky borrowers. New Century had the largest niche in the subprime market and eventually exploded. Lenders no longer purchased their loans due to rising default rates. Unable to re-capitalize, they were no longer able to offer new loans and the financial troubles began.
They were headquartered in Irvine, California and have done over $14 billion dollars in home mortgages. They specialized in debt consolidation, refinancing, second mortgages, and home purchases. At one point, they had over 200 offices throughout North America.
For more bankruptcy information, visit the link on the home page.
Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation was a real estate investment trust (REIT) and one of the nation’s premier full-service mortgage finance companies, providing first and second mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offered a broad range of mortgage products designed to meet the needs of all borrowers. New Century was committed to serving the communities in which it operated with fair and responsible lending practices.
New Century originated and purchased loans on the basis of the borrower’s ability to repay the mortgage loan, the borrower’s historical pattern of debt repayment and the amount of equity in the borrower’s property (as measured by the borrower’s loan-to-value ratio, or LTV). Originating and purchasing loan activity started in 1996.
Origination and purchase of loans worked through a wholesale network of approximately 35,000 independent mortgage brokers and through a retail network of 216 sales offices operating in 35 states, and 34 regional processing centers operating in 17 states. Although a significant percentage of their loans originated in California, they were authorized to do business in all 50 states and regularly originate and purchase loans throughout the country. Additionally, approximately 7,500 Associates were employed prior to the bankruptcy filing.
Approximately 90 percent of loans originated through the wholesale channel and 10 percent through a retail channel. Of the loans that originated, approximately 60 percent were refinances of existing mortgages and 40 percent were for the purchase of residential property. Of the refinance transactions, 85 percent were cash-out refinances in which the borrower receives additional proceeds to pay off other debt or meet other financial needs.
Renegotiate Your Loan
Even as political pressure builds in Washington for a sweeping program to help struggling homeowners, some banks are realizing that it may be good business to keep borrowers in their homes.
On Friday, JPMorgan Chase became the latest big bank to pledge to cut monthly payments, by lowering interest rates and temporarily reducing loan balances for as many as 400,000 homeowners. Early in October, Bank of America, which acquired the large lender Countrywide, announced a similar effort aimed at 400,000 borrowers as part of a settlement with state officials.
Though the measures encompass only a fraction of the nation’s troubled homeowners, analysts say they could become more instrumental in stemming the rising tide of foreclosures than the government’s plan to partly guarantee home loans.
“The banks are doing the cost-benefit analysis,” said Gerard S. Cassidy, a banking analyst with RBC Capital Markets. “The banks don’t want these customers going into foreclosure because it is a costly and punitive way of trying to collect your money.”
Roughly 1.5 million homes were in foreclosure at the end of June, and economists expect several million more borrowers may default in the coming year as housing prices erode and job losses rise. Nearly one in 10 mortgages is either delinquent or in foreclosure.
Chase officials said their effort was not an act of charity or a response to government pressure. By renegotiating loans with borrowers, the bank is hoping to reduce the losses that it incurs in the foreclosure process and when it sells repossessed homes. Chase said it has already modified 250,000 loans since the start of 2007.
“What we are doing is a process that just makes a lot of sense,” said Charlie Scharf, chief executive of retail financial services at Chase. “If the government can come in and help us find ways to modify more people that would be wonderful.”
The bank, which will open 24 counseling centers and hire 300 employees to work with borrowers, will suspend foreclosures on loans it owns for at least 90 days while it puts its new policies into place at Chase and the two banks it acquired this year, Washington Mutual and Bear Stearns.
Like other banks, Chase is largely aiming at loans that the bank owns and not the mortgages that it services on behalf of bond investors who own mortgage-backed securities. Banks have less leeway in changing the terms of loans packaged into securities, because contracts that govern them can be very restrictive.
Those contracts could limit the impact of loan modification programs at Chase and other banks. For instance, Chase owns $350 billion of the $1.5 trillion in the home mortgages it services; the rest are owned by investors. Some hedge fund investors have threatened legal action if banks aggressively modify the loans that back bonds that they own. Mr. Scharf said the bank was working with investors to gain approval to modify more loans.
Chase’s effort resembles a plan put in place at IndyMac after the Federal Deposit Insurance Corporation took it over in July. Chase’s program closely mirrors that template by lowering interest rates on existing mortgages and temporarily reducing the principal owed on loans. The goal would be to lower a borrower’s housing payments to 31 to 40 percent of disposable income.
Sheila C. Bair, the chairman of the F.D.I.C., has said the agency may be able to help 40,000 of the 60,000 delinquent IndyMac borrowers. About 3,500 of those who have been approached have agreed to a modification. IndyMac owns most of those loans but it has been seeking permission from investors to modify other loans, as well.
But the steps being taken by banks on their own could affect a much larger pool of troubled homeowners.
“A clear consensus is emerging that broad-based and systematic loan modifications are the best way to maximize the value of mortgages while preserving homeownership — which will ultimately help stabilize home prices and the broader economy,” Ms. Bair said in a statement that applauded the announcement by Chase.
Mr. Scharf said Chase would also offer modifications to borrowers who were not currently delinquent but who the bank thought could be at risk of defaulting. For certain risky loans, it might offer to temporarily reduce interest rates to as low as 2 percent and calculate payments on a reduced loan balance for a few years.
Bank of America agreed to make similar changes under a settlement of predatory lending practices with officials from 11 states, and agreed to permanently write down the amount owed on some mortgages. HSBC, another big bank, is also pre-emptively providing relief to some borrowers and has modified nearly 25 percent of its subprime mortgages.
Mark Pearce, a banking regulator in North Carolina, said the government interventions at IndyMac and Countrywide were helping to set a good example for lenders like Chase that were now beginning to take a more aggressive approach to loan modifications.
“It’s clear that they have studied IndyMac and the Countrywide settlement,” said Mr. Pearce, who is a deputy commissioner for banks in North Carolina. “Those public programs are leading other servicers to rethink how they are approaching these issues.”
