| Mortgage applicants tire of 'trigger-list' calls; ftc offers no ...
WASHINGTON When you apply for a mortgage and get a barrage of irritating and confusing phone calls from competing lenders before noon the next day, can you turn to the government for help? The Federal Trade Commission issued its long-awaited answer to that question in mid-March, and it's already attracting criticism. The agency, which has regulatory oversight powers concerning consumer credit, says it lacks the legal authority to crack down on unwanted "trigger list" phone solicitations to consumers who've applied for mortgages within the preceding 12 to 24 hours. HOT ISSUES Trigger list pitches to mortgage applicants have become hot issues in recent months as new mortgage volume has declined nationwide in softening housing markets. With fewer people buying homes or refinancing, some lenders have begun investing heavily in leads - the identities and contact information of consumers actively in the market for a loan.
Less-expensive term insurance the way to go
Dear Bruce: I read your column every week, and I am impressed by your knowledge. That is why I would like to get your feedback on universal life insurance. I met with representatives from a financial institution, and they were pitching this type of insurance policy for $600 a month. The $500,000 policy has investment options, I can withdraw money without getting taxed until my death and my family gets the insurance money plus whatever value on the investments (tax-free). I am 46 years old -- is this a good investment for me? Or should I get a term-life policy for $500,000 with premiums of $50 a month, and invest the $550 ($600 minus $50) in my 401(k) or annuities? I was thinking of refinancing my current fixed-loan mortgage to an interest-only loan and withdrawing some cash to buy another house.
Subprime Mortgages And The Refinancing Boom - Options Are Still ...
Editors Note: This is a great interview with someone that is in the industry and knows the situation sub-prime lenders are faced with. Steven Frank answers some questions potential barrowers may have, including whether to refinance their first mortgage, get a second or apply for a home equity line of credit. Here is the article: There are more than 19,000 mortgage companies in the U.S. and some of the largest and most reputable of them specialize in subprime mortgage refinancing. Steven Frank, Senior Vice President of Marketing at FlexPoint Funding identifies a subprime borrower as “someone with a FICO score below 620. He or she will pay between 1.5% and 2% higher interest for a mortgage, but there is no shortage of money or willing lenders in the subprime mortgage market." .
Foreclosure wave bears down on immigrants
WASHINGTON - Immigrants are emerging as among the first victims of a growing wave of home foreclosures as mortgage lending problems multiply here and across the country. Nationally, 375,000 high-interest-rate loans were made to Hispanics in 2005, and nearly 73,000 of them are likely to go into foreclosure, said Aracely Panameno, director of Latino affairs for the Center for Responsible Lending. About 1.1 million homes in the United States are expected to go into foreclosure in the next six years, and many native-born Americans are likely to be stuck with burdensome loans. But immigrants are getting hit first in part because their incomes tend to be lower and many have lost construction jobs. Homeownership rates among immigrants surged in the first half of the decade, making their prosperity an economic success story.
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