“Subprime lending is back with a vengeance” – Government Programs Behind New Wave of Reckless Lending

Just when you thought it was safe to go back in the water… Subprime lending has come roaring back.

But this time, reckless financial innovation isn’t being hatched on Wall Street. Instead, state governments are angling to “monetize” first-time homebuyer tax credits so borrowers can purchase homes with little or no money down.

If this sounds eerily similar to the type of lending practices that got us into this mess, well, it should.

The federal government, as part of the recently passed economic stimulus package, will refund first-time homebuyers up to $8,000 if they meet certain eligibility requirements. The program is frequently cited as one of the myriad reasons a bottom in the housing market is imminent.

Critics, however, argue that rebates don’t end up in a buyer’s pockets until his or her 2009 tax returns are filed – even though rebates are credits, not just deductions.

Homebuilders like Pulte Home (PHM), Lennar (LEN) and KB Home (KBH), along with their lobbying arm, the National Association of Homebuilders, have thrown their full weight behind the rebate program, but say it still doesn’t go far enough.

In an effort to boost home buying — even for marginally qualified borrowersa number of states are finding creative ways to advance the tax credit to buyers on the day they get their new keys, rather than having to wait for next year’s refund check. This allows buyers to pay for things like closing costs, mortgage points – or even the down payment.

States are employing schemes whereby they offer prospective buyers low or no-interest loans for the amount of the tax credit, due upon of receipt of their money from Uncle Sam. If the borrower doesn’t make good, the loan becomes a junior lien on the property, with an interest rate that is far from usurious – usually just a bit over the prime lending rate. Missouri was the first state to launch such a program, and has since been joined by Delaware, New Mexico, Pennsylvania, Tennessee and others. States are even lobbying the IRS to deposit the refunds directly to the states, rather than to the home buyers, in order to circumvent non-payment. The IRS, for its part, “is reviewing” this idea.

In Washington, the state Housing Finance Commission runs a tax credit bridge-loan program, which it hopes will grow in the coming months. Not surprisingly, local real-estate professionals are behind the initiative. Washington Association of Realtors president Bill Riley told the San Francisco Chronicle he believes around half of would-be first-time buyers in his state “cannot save enough money for the down payment and closing costs.”

Exactly. That’s the point. This is precisely what differentiates a “would-be” home buyer and a home buyer. And that’s the way it should be.

If the federal government wants to subsidize home ownership, fine. It’s already proven unwilling to learn the lessons of Fannie Mae (FNM) and Freddie Mac (FRE) about the costs of jamming borrowers into homes they can’t afford. But these rebates should at least be limited to borrowers that meet even the most modest requirements to buy a home in a responsible manner.

The Federal Housing Administration — another vehicle for government-backed mortgages where taxpayers bear all the risk — gives out loans that require borrowers to post a meager 3% down payment. If a “would-be” homeowner cannot scrape together this amount of cash, that person should rent and save their pennies. They should not receive a no-interest loan from the state government. This is not discrimination, this is not redlining, its common sense.

In a rush to prop up home prices and delay the ultimate day of reckoning for the vast majority of US real-estate markets, the federal government — and now state governments as well — insist on coercing taxpayers to over-leverage themselves and take on a debt burden they cannot truly afford.

From the looks of it, Washington is leading by example.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Scott Andrew Jeffery.

http://blogs.moneycentral.msn.com/topstocks/archive/2009/05/08/subprime-lending-is-back-with-a-vengeance.aspx

McAuleys’ World: Once again the Government is behind these activities … just how short can our collective memory be …….

Obama Administration Wants A New $1 Trillion From Taxpayers – MSNBC

Treasury’s toxic asset plan could cost $1 trillion

Geithner releases initial outlines of proposal to be unveiled on Monday

Treasury Secretary Timothy Geithner intends to announce Monday aims to use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.

The plan relies on a new government entity, the Public Investment Corp. to help purchase as much as $1 trillion in toxic assets on banks’ books.

[You may have thought the Government was already doing this – for an explantion of where the money has been going up to now see: https://mcauleysworld.wordpress.com/2009/03/21/aig-cash-channelled-to-hedge-fund-millionaires/ ]

The initiative will seek to entice private investors, including big hedge funds, to participate by offering billions of dollars in low-interest loans to finance the purchases and also sharing risks if the assets fall further in value. [The same Hedge Funds that have been receiving our “Bailout Dollars” to purchase “bad debt insturments” at 100% of face value – will now use those same “bailout dollars” paid out of American Taxpayer Dollars – to repurchase the same assets – but at 20 cents on the dollar – This is a criminal conspiracy of the highest order. For the Hedge Funds who received our bailout dollars there is no “risk” at all – only more profit at taxpayer expense] 

http://www.msnbc.msn.com/id/29817617

Is Geitner complicit in this scheme or just a  “fall guy” or “patsy” to take the blame when the facts become public knowledge.  

BACKGROUND: 

1). Banks lend money and obtain mortgages

2) Most Banks do not “hold the mortgages until they are paid off in 30 years.   The Banks “sell” the mortgages as “mortage securties” to investors – most notably “Hedge Funds” – like the ones run by Madoff and Stanford.

3). The investors/Hedge Funds “insured” these securities through firms like AIG and Goldman Sachs. With CDOs (credit default swaps) and other “instruments”.

4). The Bailout dollars have been going in the front doors of banks and firms like AIG and straight out the backdoor to the Hedge Fund Firms and other investors. The great bulk of Taxpayer money spent to this date has not gone to restoring the economy or creating jobs but has instead gone to make the Billion dollar Hedge Funds, their Managers and Investors whole.

5). The governemnet did not even negotiate on the amounts paid out – the Hedge Funds have been paid 100 cents on the dollar. In some instances the Government overpaid by as much as 500%  – Incredible Government waste in what could be a “criminal enterprise”.

6). These same Hedge Funds, their investors and the Foreign Banks who received the Taxpayer Bailout dollars will now be offered the chance to repurchase these same “assets”, using the “bailout money” that was “channeled” to them through firms like AIG. Repurcahse the same assets at 20 cents on the dollar. An immediate 80% profit at taxpayer expense.

7). At a minimum, this effort exposes the incredible failure of the previous bailout activities and an almost unimaginable amount of Government waste. The same parties to receive the “bailout cash” are now being “invited” to “repurchase” the same investments.

Who Do You Think Benefits From The Ongoing Bailout Schemes? Tell Congress the Bailouts Were A Bad Idea to Begin With – To Stop Them Now!       

 

 

Fed Reserve Adds Additional $1.2 Trillion To Debt In New Bailout – $750 Billion On Bad Mortgages

Mar 18, 2009 6:15 pm US/Central

Fed Launches New $1.2T Effort To Revive Economy

WASHINGTON (AP) ― With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy. [READ: To buy bad credit card debt, bad auto loan debt, bad student loan debt, and sub-prime mortgage debt and place those debts squarely on the backs of the American taxpayer – the additional $1.2 Trillion will increase the spending of the New Democratic Administration to just over $10 Trillon in just under 3 months – the average American family share now exceeds $100,000 per family]

The Fed’s plan to buy government bonds and the sheer amount — $1.2 trillion — of the extra money to be pumped into the U.S. economy was a surprise. [ The surprise – there is no end to the Government spending – if reckless excess spending cretaed our problems – just as the President claimed when he called for fiscal discipline – just what will this unbelievable excess lead to? Exactly how does quadrupling – increasing by 400% – the total Natoinal debt help the Country’s future?]

The Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. [The original plan to “modify mortgages, released less than two weeks ago – started as a $75  Billion program – in two weeks that amount has increased to $750 Billion – a 1000% increase. As this writer has noted in prior posts – there  is $7 Trillion Dollars in “toxic mortage exposure” in the global economy – the Government shows no sign that their is any end to Government spending in sight]   

“The Fed is clearly ready, willing and able to be the ATM for the credit markets,” said Terry Connelly, dean of Golden Gate University’s Ageno School of Business in San Francisco. [An ATM filled with taxpayer money – the Fed may print the money but the taxpayers create the wealth that backs those dollars up]

The dollar fell against other major currencies. In part, that signaled concern that the Fed’s intervention will spur inflation over the long run. [The additional spending also mandates additional taxation which in turn reduces the disposable income and savings of the working class and the profits and dividends received or paid by the business class – the spending will create a short term stimulus and will, unquestionably, create a significant long term detriment to future economic growth – over $10 Trillion in National Debt]

The Fed chief and his colleagues again pledged to use all available tools to make that happen, and economists expect further steps in the months ahead. [A classic CYA – there is no certainty that this will help acheive the desired results – in fact these steps may exacerbate the problem by spurring additional lending to the “same bad credit risks” that got us here in the first place – thus the need to keep the door open to yet additional spending despite the unprecedented spending of the last 3 months] 

Since the Fed last met in late January, “the economy continues to contract,” Fed policymakers observed in a statement they issued Wednesday. [READ: What we have done so far has not worked – rather than wait to see if a positive or negative result occurs lets just rush ahead with more of the same – even if that means “pouring gasoline on the fire”]

“Job losses, declining equity and housing wealth and tight credit conditions have weighed on consumer sentiment and spending,” they said.
The Fed’s announcement that it will spend up to $300 billion over the next six months to buy long-term government bonds was something that in January it had hinted it would do. But some officials had seemed to back off from the idea in recent weeks.
The goal behind all the Fed’s moves is to spur lending. More lending would boost spending by consumers and businesses, which would revive the economy. [Lending to “good” or “bad” credit risks is the question]

The Fed also said it would consider expanding another $1 trillion program that’s being rolled out this week. That program aims to boost the availability of consumer loans for autos, education and credit cards, as well as for small businesses. [Another Trillion – before the last has even been spent – to make loansds to whom – those just coming out of foreclosure or bankruptcy? Loans made whith whose tax money? Does the Treasury think this is “Monopoly Money”?]

Where does the Fed get all the money? It prints it.
The Fed’s series of radical programs to lend or buy debt has swollen its balance sheet to nearly $2 trillion — from just under $900 billion in September. The Fed’s balance sheet could grow to $5 trillion over the next two years.
The Fed has said it’s mindful of the risks of pumping more money into the economy, bailing out financial institutions and leaving a key rate near zero for too long. There’s the potential to plant the seeds for higher inflation, put ever-more taxpayer money at risk and encourage “moral hazard.” That’s when companies make high-stakes gambles knowing the government stands ready to rescue them.
But even in this best-case scenario, the nation’s unemployment rate — now at quarter-century peak of 8.1 percent — will keep climbing. Some economists think it will hit 10 percent by the end of this year.
The recession, which began in December 2007, already has snatched a net total of 4.4 million jobs and has left 12.5 million searching for work.

Mortgage Rescue Program & The New Scam – “Quick Defaults” – New/Modified Mortgages Defaulting Prior To 1st Payment, Reports FHA

washingtonpost.com

Borrowers are flocking back to the FHA, which has become the only option for those who lack hefty down payments or stellar credit.

The agency’s share of the mortgage market is up from 2 percent three years ago to nearly a 33% of the mortgages now made, its highest level in at least two decades, according to Inside Mortgage Finance, an industry trade publication. The FHA does not lend money directly. It provides mortgage insurance for borrowers working with FHA-approved lenders and uses the premiums to cover its losses.

At the same time, Congress has substantially increased the amount a homeowner can borrow on an FHA loan in pricey areas, thrusting the agency into markets it was previously shut out of, such as California, where plunging home prices have made people more vulnerable to foreclosure. Moreover, lawmakers last year put the FHA in charge of a program created to address the roots of the financial crisis by helping delinquent borrowers refinance into new mortgages.

The agency now faces this swell of loans that default almost immediately.

Under the FHA’s own rules, there’s a presumption of fraud or material misrepresentation if loans default after borrowers make no more than one payment. In those cases, the lenders are required by the FHA to investigate what went awry and notify the agency of any suspected fraud. But the agency’s efforts at pursuing abusive lenders have been hamstrung. Once, about 130 HUD investigators teamed with FBI agents in an FHA fraud unit, but this office was dismantled in 2003 after the FHA’s business dwindled in the housing boom.

At the same time, the FHA office responsible for approving and policing new lenders has not expanded even as the number of active lenders doing business with the FHA more than doubled to 2,300 in the past two years.

Although the FHA insures mortgages issued by lenders, it leaves these companies to conduct their own business. If a lender writes a lot of bad loans, that’s when the agency can eject it from the program. Experts in housing finance warn, however, that the FHA has inadequate staffing and technology to keep up.

With the surge in new loans, however, comes a new threat. Many borrowers are defaulting as quickly as they take out the loans. In the past year alone, the number of borrowers who failed to make more than a single payment before defaulting on FHA-backed mortgages has nearly tripled, far outpacing the agency’s overall growth in new loans, according to a Washington Post analysis of federal data.

Many industry experts attribute the jump in these instant defaults to lax scrutiny of prospective borrowers.

If a loan “is going into default immediately, it clearly suggests impropriety and fraudulent activity,” said Kenneth Donohue, the inspector general of the Department of Housing and Urban Development, which includes the FHA.

The spike in quick defaults follows the pattern that preceded the collapse of the subprime market as some of the same flawed lending practices that contributed to the mortgage crisis are now eroding one of the main federal agencies charged with addressing it. During the subprime lending boom, many mortgage brokers and small lenders milked the market for commissions and fees by making as many loans as possible with little regard for whether they could be repaid. [McAuleys World: Borrowers secured NINJA and Liar Loans – the underlying problem that resulted in our financial collapse has never been corrected]

Once again, thousands of borrowers are getting loans they do not stand a chance of repaying. Only now, unlike in the subprime meltdown, Congress would have to bail out the lenders if the FHA cannot make good on guarantees from its existing reserves. [Congress pays no taxes – The American Taxpayer will be called upon to “bailout the FHA]  More than 9,200 of the loans insured by the FHA in the past two years have gone into default after no or only one payment, according to the Post analysis. The pace of these instant defaults has tripled in one year. By last fall, more than two dozen FHA home loans on average were defaulting this way every day, seven days a week.

The overall default rate on FHA loans is accelerating rapidly as well but not as dramatically as that of instant defaults.
William Apgar, senior adviser to new HUD Secretary Shaun Donovan, agreed that early defaults are a worrisome sign, “We have to make sure people don’t scam the system and when they do, they are held accountable,” Apgar said.

 

For those still looking to write loans in volume, the only game in town is government-backed mortgages, mostly those guaranteed by the FHA. But unlike with subprime business, lenders in the FHA program are asked to follow agency rules requiring borrowers to document their income, put up a modest down payment and commit to live in the homes.
“With the onslaught of FHA lending that’s going on right now, they’re bringing in lenders who are not familiar with FHA guidelines,” said David Hail, a vice president of Allied Home Mortgage of Houston, one of the nation’s largest FHA partners. He said the lenders are “under pressure from their builders or buyers to get these loans done. They’re approving loans that they should not be.”

 

 

The Palm Hill Condominiums project near West Palm Beach, Fla., exemplifies the problem. The two-story stucco apartments built 28 years ago on former Everglades swampland were converted to condominiums three years ago. The complex had the same owner as an FHA-approved mortgage company Great Country Mortgage of Coral Gables, whose brokers pushed no-money-down, no-closing-cost loans to prospective buyers of the condos, according to Michael Tanner, who is identified on a company Web site as a senior loan officer.

Many of the borrowers were first-time home buyers and were unable to keep up their payments. Tanner said he complained to his company that extending loans without any money down lured borrowers who either didn’t understand or take seriously the payments they’d have to make. Great Country’s owner, Hector Hernandez Jr., could not be reached for comment.

Eighty percent of the Great Country loans at the project have defaulted, a dozen after no payment or one. With 64 percent of all its loans gone bad, Great Country has the highest default rate of any FHA lender, according to the agency’s database. It also has the highest instant default rate. [Yet Great Country Mortgage is Still an FHA Lender – I wonder where Great Country’s Political Contributions go]

In Reston, Access National Mortgage has watched its default rate climb. The lender is among a growing number that market FHA mortgages to borrowers through direct mail, telemarketing and the Internet. By the end of 2008, more than 5,200 of the agency’s defaults were on loans promoted with these techniques, a sevenfold increase in one year, accord to the review of federal data. [A single lender with 5,200 defaults in a single year – and the lender is still authorized to work with the FHA –  this simply doesn’t pass the “smell test”]

Dean Hackemer, president of Access National Mortgage, noted that many of the lenders now running into trouble with FHA loans were previously selling subprime loans and related Alt-A mortgages, which required no documentation.

Refinanced Back Into Trouble

Among FHA loans with instant defaults, the upward trend is especially pronounced in refinanced deals. The number of refinancings that defaulted after zero payments or one have more than quadrupled since then end of 2007 and now represent two-fifths of all instant defaults.

The FHA is attractive to borrowers looking to refinance, in part because the agency allows for cash-out refinances, a practice Apgar called “particularly problematic.” It has become rare among conventional lenders, who fear that borrowers will take the cash and walk away from the loan.

The FHA also permits “streamlined” refinancing, in which established FHA borrowers get lower rates without verifying their income.

Karmen Carr, a housing finance consultant for the FHA, said some mortgage brokers have been known to game the system.

“The broker makes money on every transaction,” said Carr, a former executive at mortgage financier Freddie Mac. “They’re not going to turn away an application if they can get it through. There have been situations where people refinance and refinance to avoid making payments and the broker just keeps getting the fees. What do they care?”
 

 

For one homeowner in Spotsylvania, Va., it took only a month to fall behind on a new FHA-backed mortgage after she took it out in November 2007. The homeowner, a retired federal worker who asked not to be named because she’s embarrassed, said she soon refinanced into another FHA loan as a way of slightly delaying a subsequent payment. Then, she refinanced again. Now, she’s in default on that third loan, which she said requires two-thirds of her monthly income. Still, the mortgage pitches keep coming.
“The mortgage broker just called me again to say rates have fallen, do I want to refinance?” she said in an interview last month.

 

 

Some of the country’s largest and most established lenders are so concerned about this new threat to the credit market that they are not waiting for the FHA to tighten its requirements. Instead, they are imposing new rules on the brokers they work with. Wells Fargo and Bank of America, for instance, now require higher credit scores on certain FHA loan transactions and better on-time payment history. [Yet the Democrats ask “Why aren’t the Banks Lending”? –  Is rejecting a bad credit risk an excuse or valid business decision?]

“We have some self-preservation methods,” said Joe Rogers, executive vice president at Wells Fargo.

These large lenders often buy home loans from smaller mortgage originators and in turn bundle them as securities, which they sell to investors. [Is a new generation of bad “paper” entering the Global investment community] When the loans go into foreclosure the FHA pays the lender for the bad loan. That can take more than a year in some states and may not fully compensate the lender. [If a lender makes a stupid loan – why shouldn’t the lender pay the consequences. Taxpayers, not Congress “reimburses” the FHA. The FHA is fulfilling the same role as AIG in the first “Mortgage Crisis”, propping up an investment scheme based on “bad mortgage paper”]

Some experts who track FHA lending say the agency should not wait for lenders to take the lead on toughening the rules, especially given the mortgage industry’s poor track record for policing subprime and other risky home loans.

“Even if the market eventually gets these guys, they shouldn’t have to wait for the market to do it,” said Brian Chappelle, a former FHA official who is now a banking industry consultant. “The most frequent question I get asked by the groups I talk to is: ‘Is FHA going to implode?’ . . . They haven’t seen HUD do anything significant in the past two years to tighten up its lending.”

[In order to initiate an economic recovery the Country needs to find a floor on Mortgage Values – Investors will not pruchase Mortgage Securities until they can have confidence that appropriate Mortgage underwriting has been completed. Housing “demand” or demand for “Mortgage Backed Investment Securities” (which is what really triggered the housing crisis) will not rebound until the corruption is removed from the system. Attempting to “bailout” a corrupt system is a recipe for disaster]  

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/07/AR2009030702257.html?hpid=topnews 

 

Subprime Mortgages – Get One Today – Qualify For A “Cram Down” & “Mortgage Modification” Before Labor Day

If you thought you missed your chance to scam your friends and neighbors with a sub-prime mortgage loan – you know a loan you can’t afford for that bigger house you always wanted – your wrong.

Live the champagne life on a beer budget and let your neighbors pick up the tab.

Visit any of the cites below and get your sub-prime loan now ….. you still have time to default and get your the mortgage “crammed” down and “modified” before summer. Use the extra cash to buy a new car and boat ………. 

100% Financing Loans

More and more Americans are choosing to pay for their home with a 100% financing mortgage, also known as a no down payment or a zero-down mortgage loan.  This type of home mortgage frees borrowers from the worry and burden of having to gather and set aside funds for closing costs and a down payment in order to purchase a home. 

100% financing, or complete financing of the property via a first mortgage exclusively

….. we offer bad credit mortgage loans, which service consumers with scarred credit histories and “incapacitating financial circumstances”.

  • No cash is required for down payment
  • Stocks and other investments need not be liquidated to purchase the property
  • Private mortgage insurance is not required (unlike a conventional loan)
  • The greater the amount financed, the higher the tax deduction for the loan interest paid
  • The opportunity to use and/or start earning equity in the new home, instead of having it tied up
  • The ability to have their money earn interest in a money market fund or savings account
  • Diminution of their financial risk and risk-shifting to the lender [The lender shifts the burden to the taxpayer via a bailout]
  • Qualify for a bigger mortgage

Borrowers must decide whether to apply for an adjustable rate mortgage (ARM) or a fixed rate mortgage.  Eligibility requirements for the former are easier to satisfy, and an ARM offers lower mortgage rates.  [McAuley’s World – Wow, you can get an ARM and blame the lender later] 

Compare Mortgage Loan Rates:   

 

  • 100 Percent Financing Loan
  • Adjustable Rate Mortgage
  • Interest Only Mortgage
  • Subprime Mortgage
  • http://www.myhomeloanmortgages.com/rates/100-percent-financing.aspx

    Low Cost No Money Down Home Loan Solutions

    AAXA Discount Mortgage is pleased to offer fast, flexible no money down mortgage financing. The flexibility that these programs provide does not have to mean high rates and fees….  Our lenders offer highly competitive zero down home loans to qualified borrowers even if their credit is less than perfect.

    100% Mortgage Financing Programs , Creative Option to Finance Closing Costs, No Money Down Mortgage with No Private Mortgage Insurance, Adjustable Rate Zero Down Mortgage Products,  Less than Perfect Credit.

    If you are searching for the lowest payment possible, be sure to check out our interest only mortgage and option ARM programs.  

    http://www.forthebestrate.com/no-money-down-mortgage.aspx

    Zero Down Loans

    Closing costs can be financed – $250,000 to $962,000 – Credit scores as low as 580 (580 scores credit limit is $500K) – No income Verification – No Asset Verification [McAuley’s World – Get Your NINJA Loan here – No Income, No Asset, No Job, No problem]  http://www.loanshoppers.net/zero_down.htm 

    A zero down loan is good when you don’t have enough cash to pay your closing costs and make a down payment on the purchase of your home. It is also used to avoid paying Private Mortgage Insurance (PMI) costs. PMI is an additional charge you pay if you make less than a 20 percent down payment. This insurance policy protects the lender in the event of a payment default or foreclosure, and the loan is not paid off in full.

    Zero Down

    Zero down programs allow you to buy your home now, instead of waiting to save enough for a down payment.

    There are several options available for buying a home with zero down.

    Get one new loan at 100 percent loan-to-value (LTV), Some zero down programs allow you to borrow 3 to 7 percent of the purchase price to pay your closing costs. WE MAKE LOANS NOT EXCUSES!!!    http://landmarkmortgagelending.com/zero_down.html

    CHOICE FINANCE

    Question
    Can you please tell me more about the zero down option on the mortgage loan program?  which types are they, what kind of credit score does it allow for?

    Answer
    There is a lot of information regarding “zero down” mortgage programs. There are some great programs backed by Fannie Mae and Freddie Mac (these are the 2 government backed giants that control the industry) with great interest rates and credit requirements that don’t have to be sterling.

    I’ll give you an example: a borrower could have a 650 credit score and qualify for a “zero down” program backed by Fannie and Freddie. The rate would be approximately 6.5%.

    However, here’s another example: a borrower could have a credit score of 580 and no longer qualify for Fannie and Freddie but would be able to obtain 100% financing with well respected, publicly traded (NYSE or NASDAQ) companies. But the rate would be higher. [McAuley’s World – The rate is only higher until you receive your “mortgage modification” when the rate is written down to 2.5% and have your “principal crammed down” too ….. let your neighbors pay for the reductions through higher taxes – you can’t beat this deal with a stick]

    http://www.choicefinance.net/blog/tag/zero-down-financing/

    100% Financing No Down-payment Mortgage

    http://www.erate.com/100_percent_financing_no_downpayment_mortgage.htm

  • No Cash needed for down payment
  • Don’t need to liquidate stocks and other investments
  • Borrower may want to finance as much as possible for tax deduction purposes. 
  •  Debt ratios of 45 or less  [McAuley’s World – Don’t worry – after default or modification – the Governemnt will write you down to a 31% debt ratio while your neigbors pay the extra 14% for you] 
  • Zero Down Home Loans
    Home Purchase Loans – 100% Home Financing – No Money Down

    Zero Down Home Loans are offered to consumers with good and bad credit for 100% financing. We practice fair lending with 100% financing for conventional, home purchase loans, sub-prime, pick a payment loans, jumbo mortgages, negative amortization and interest only loans. 

    “Many people in California are finding the best way to get a low monthly payment is with the 1.25% negative amortization loans that allow borrowers to defer the interest until the end of the year. These payment option loans offer borrowers a payment that is even lower than the interest only payment. The negative amortization option is only available until the mortgage balance reached a 115% or 125% of the original mortgage balance depending upon the lender.”  [McAuley’s World – This loan will qualify you to move to the front of the mortgage bailout line – a zero down loan – to people with bad credit – with  less than an “interest only payment due” until you default – What a mortgage! With this mortgage a Municipal Bus Driver making $35K a year can mortgage a Million Dollar Home at Taxpayer Expense – What a Country we live in! Free Million Dollar Homes Paid For By Your Neighbors Taxes!]

    http://www.lendamerica.com/

    BD Nationwide Mortgage Introduces the Second Mortgage that Requires NO Appraisal for Home Equity Loans to 125% and Refinancing Credit Lines – “According to Citibank executive, Jim Markham, “Having the ability to use the AVM model is a Win-Win scenario for mortgage brokers and homeowners across the country. Mortgage brokers can increase their second mortgage volumes and borrowing consumers benefit from reduced costs and quicker loan processing cycles.” [Why would Citi care as long as Taxpayers keep “recapitalizing” the mortgage losses through TARP. “Appraisals” Are No Longer Needed For A “Mortgage Modification” at taxpayer expense – borrow as much as you want – you won’t be paying it back anyway]. http://www.bdnationwidemortgage.com/zero-down-home-loan.html , http://www.prweb.com/releases/mortgage/loans/prweb470912.htm 

    LOAN BIZ

    100% Zero Down Finacing – 125% Zero Down Home Equity Loans – Interest Only and negative amortization loans available. http://www.loanbizinc.com/

    Hurry, it’s not to late to get in on the scam – purchase a larger home or refinance your current home now. Default before Memorial Day and get your “Mortgage Modification” and “Cram Down” by Labor Day weekend.

    Why settle for a house you can afford when your neighbors will pay for your upgrade?

     Don’t settle for second best – go right to the top – http://www.acornhousing.org/TEXT/mortgage1.php – “Flexible credit guidelines and income requirements including the use of non-traditional income” – (Yes, welfare payments and food stamps can be used as income qualifiers.) ” We are very pleased with the level of commitment that CitiMortgage, First American and Fannie Mae are contributing to this effort”,  said Alton Bennett, President of ACORN Housing Corporation. Since its inception, AHC has provided free services to 250,000 households across the country, more than 80,000 of which have become homeowners, generating more than $10 billion in mortgages. 

    With AHC you get:

     Data from the Mortgage Bankers Association shows that a stunning 48 percent of homeowners who have subprime, adjustable-rate mortgages are behind on their payments or in foreclosure. http://news.yahoo.com/s/ap/20090305/ap_on_bi_ge/states_foreclosures 

    LET CONGRESS KNOW WHAT YOU THINK – http://www.usa.gov/Contact/Elected.shtml 

    Get A 0% Down Sub-Prime Mortgage Now – Join The Scam – Default By May 30th And Get Your Government Bailout Before Labor Day 2009

    If you thought you missed your chance to scam your friends and neighbors with a sub-prime mortgage loan – you know a loan you can’t afford for that bigger house you always wanted – your wrong.

    Live the champagne life on a beer budget and let your neighbors pick up the tab.

    Visit any of the cites below and get your sub-prime loan now ….. you still have time to default and get your the mortgage “crammed” down and “modified” before summer. Use the extra cash to buy a new car and boat ………. 

    100% Financing Loans

    More and more Americans are choosing to pay for their home with a 100% financing mortgage, also known as a no down payment or a zero-down mortgage loan.  This type of home mortgage frees borrowers from the worry and burden of having to gather and set aside funds for closing costs and a down payment in order to purchase a home. 

    100% financing, or complete financing of the property via a first mortgage exclusively

    ….. we offer bad credit mortgage loans, which service consumers with scarred credit histories and “incapacitating financial circumstances”.

    • No cash is required for down payment
    • Stocks and other investments need not be liquidated to purchase the property
    • Private mortgage insurance is not required (unlike a conventional loan)
    • The greater the amount financed, the higher the tax deduction for the loan interest paid
    • The opportunity to use and/or start earning equity in the new home, instead of having it tied up
    • The ability to have their money earn interest in a money market fund or savings account
    • Diminution of their financial risk and risk-shifting to the lender [The lender shifts the burden to the taxpayer via a bailout]
    • Qualify for a bigger mortgage

    Borrowers must decide whether to apply for an adjustable rate mortgage (ARM) or a fixed rate mortgage.  Eligibility requirements for the former are easier to satisfy, and an ARM offers lower mortgage rates.  [McAuley’s World – Wow, you can get an ARM and blame the lender later] 

    Compare Mortgage Loan Rates: 
    • 100 Percent Financing Loan
    • Adjustable Rate Mortgage
    • Interest Only Mortgage
    • Subprime Mortgage

    http://www.myhomeloanmortgages.com/rates/100-percent-financing.aspx

    Low Cost No Money Down Home Loan Solutions

    AAXA Discount Mortgage is pleased to offer fast, flexible no money down mortgage financing. The flexibility that these programs provide does not have to mean high rates and fees….  Our lenders offer highly competitive zero down home loans to qualified borrowers even if their credit is less than perfect.

    100% Mortgage Financing Programs , Creative Option to Finance Closing Costs, No Money Down Mortgage with No Private Mortgage Insurance, Adjustable Rate Zero Down Mortgage Products,  Less than Perfect Credit.

    If you are searching for the lowest payment possible, be sure to check out our interest only mortgage and option ARM programs.  

    http://www.forthebestrate.com/no-money-down-mortgage.aspx

    Zero Down Loans

    Closing costs can be financed – $250,000 to $962,000 – Credit scores as low as 580 (580 scores credit limit is $500K) – No income Verification – No Asset Verification [McAuley’s World – Get Your NINJA Loan here – No income, No Asset, No Job, No problem]  http://www.loanshoppers.net/zero_down.htm 

    Zero Down

     

    A zero down loan is good when you don’t have enough cash to pay your closing costs and make a down payment on the purchase of your home. It is also used to avoid paying Private Mortgage Insurance (PMI) costs. PMI is an additional charge you pay if you make less than a 20 percent down payment. This insurance policy protects the lender in the event of a payment default or foreclosure, and the loan is not paid off in full.

    Zero down programs allow you to buy your home now, instead of waiting to save enough for a down payment.

    There are several options available for buying a home with zero down.

    Get one new loan at 100 percent loan-to-value (LTV), Some zero down programs allow you to borrow 3 to 7 percent of the purchase price to pay your closing costs. WE MAKE LOANS NOT EXCUSES!!!    http://landmarkmortgagelending.com/zero_down.html

    CHOICE FINANCE

    Question
    Can you please tell me more about the zero down option on the mortgage loan program?  which types are they, what kind of credit score does it allow for?

    Answer
    There is a lot of information regarding “zero down” mortgage programs. There are some great programs backed by Fannie Mae and Freddie Mac (these are the 2 government backed giants that control the industry) with great interest rates and credit requirements that don’t have to be sterling.

    I’ll give you an example: a borrower could have a 650 credit score and qualify for a “zero down” program backed by Fannie and Freddie. The rate would be approximately 6.5%.

    However, here’s another example: a borrower could have a credit score of 580 and no longer qualify for Fannie and Freddie but would be able to obtain 100% financing with well respected, publicly traded (NYSE or NASDAQ) companies. But the rate would be higher. [McAuley’s World – The rate is only higher until to apply and receive your “mortgage modification” where you can have the rate written down to 2.5% and have your “principal crammed down” and let your neighbors pay for the reductions through higher taxes – you can’t beat this deal with a stick]

    http://www.choicefinance.net/blog/tag/zero-down-financing/

    100% Financing No Down-payment Mortgage

  • No Cash needed for down payment
  • Don’t need to liquidate stocks and other investments
  • Borrower may want to finance as much as possible for tax deduction purposes. 
  •  Debt ratios of 45 or less  [McAuley’s World – Don’t worry – after default – the Governemnt will write you down to a 31% debt ratio and your neigbors will pay the extra 14% for you] 
  • http://www.erate.com/100_percent_financing_no_downpayment_mortgage.htm

    Zero Down Home Loans
    Home Purchase Loans – 100% Home Financing – No Money Down

    Zero Down Home Loans are offered to consumers with good and bad credit for 100% financing. We practice fair lending with 100% financing for conventional, home purchase loans, sub-prime, pick a payment loans, jumbo mortgages, negative amortization and interest only loans. 

    “Many people in California are finding the best way to get a low monthly payment is with the 1.25% negative amortization loans that allow borrowers to defer the interest until the end of the year. These payment option loans offer borrowers a payment that is even lower than the interest only payment. The negative amortization option is only available until the mortgage balance reached a 115% or 125% of the original mortgage balance depending upon the lender.”  [McAuley’s World – This loan will qualify you to move to the front of the mortgage bailout line – a zero down loan – to people with bad credit – with  less than an “interest only payment due” until you default – What a mortgage! With this mortgage a Municipal Bus Driver making $35K a year can mortgage a Million Dollar Home at Taxpayer Expense – What a Country we live in! Free Million Dollar Homes Paid For By Your Neighbors Taxes!]

    BD Nationwide Mortgage Introduces the Second Mortgage that Requires NO Appraisal for Home Equity Loans to 125% and Refinancing Credit Lines – “According to Citibank executive, Jim Markham, “Having the ability to use the AVM model is a Win-Win scenario for mortgage brokers and homeowners across the country. Mortgage brokers can increase their second mortgage volumes and borrowing consumers benefit from reduced costs and quicker loan processing cycles.” [Why would Citi care as long as Taxpayers keep “recapitalizing” the mortgage losses through TARP. “Appraisals Are No Longer Needed For A “Mortgage Modification” at taxpayer expense – borrow as much as you want – you won’t be paying it back anyway]. http://www.bdnationwidemortgage.com/zero-down-home-loan.html , http://www.prweb.com/releases/mortgage/loans/prweb470912.htm 

    LOAN BIZ

    100% Zero Down Finacing – 125% Zero Down Home Equity Loans – Interest Only and negative amortization loans available. http://www.loanbizinc.com/

    Hurry, it’s not to late to get in on the scam – purchase a larger home or refinance your current home now. Default before Memorial Day and get your “Mortgage Modification” and “Cram Down” by Labor Day weekend.

    Why settle for a house you can afford when your neighbors will pay for your upgrade?

     

    http://www.lendamerica.com/

    Don’t settle for second – go right to the top – http://www.acornhousing.org/TEXT/mortgage1.php – “Flexible credit guidelines and income requirements including the use of non-traditional income” – Yes, welfare payments and food stamps can be used as income qualifiers. ” We are very pleased with the level of commitment that CitiMortgage, First American and Fannie Mae are contributing to this effort”,  said Alton Bennett, President of ACORN Housing Corporation. Since its inception, AHC has provided free services to 250,000 households across the country, more than 80,000 of which have become homeowners, generating more than $10 billion in mortgages. [Stats as of December 2006] 

    With AHC you get:

    • Lower down payments and closing costs.
    • No Private Mortage Insurance.
    • Banks generally require 3 months of mortgage payments in the bank at settlement.
    • With our program, they don’t, which allows you to buy a home sooner.
    • Most banks won’t count public assistance or voluntarily child support in determining if you’ll qualify for a mortgage.
    • With our program, all steady income counts.

     

    Remember, it may actually help to under-report your income to ACORN to qualify for HUD Programs and subsidies. http://www.mortgageqna.com/federal-government-loans/hud-median-income-limits.html , http://www.huduser.org/datasets/il.html , https://www.efanniemae.com/sf/refmaterials/hudmedinc/index.jsp

     LET CONGRESS KNOW WHAT YOU THINK – http://www.usa.gov/Contact/Elected.shtml 

    Data from the Mortgage Bankers Association shows that a stunning 48 percent of homeowners who have subprime, adjustable-rate mortgages are behind on their payments or in foreclosure. An additional 30% of those who obtained subprime loans over the last 5 years have already defaulted on their mortgages and are not included in the above statistic. In total 78% of those with subprime loans have either defaulted, are currently in foreclosure or are at least 1 month behind in their mortgage payment.  http://news.yahoo.com/s/ap/20090305/ap_on_bi_ge/states_foreclosures

    It is impossible to determine how many of these mortgage holders are “withholding” their mortgage payments to avail themselves of the substantial cash bonus available from a mortgage “cram down”.

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