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Building permits for single-family homes rose 1.8 percent in December to a rate of 444,000 units compared with November, according to a joint release by the U.S. Census Bureau and the Dept. of Housing and Urban Development.  Single-family housing starts rose 4.1 percent to a seasonally adjusted annual rate of 657,000.

An estimated 611,900 housing units were authorized by building permits in 2011. This is 1.2 percent above the 2010 figure of 604,600.  Approximately 606,900 housing units were started in 2011. This is 3.4 percent above the 2010 figure of 586,900.

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The New York Times

Interest rates are the lowest in decades, enticing many borrowers to shop for a loan.  Mortgage lenders adjust their rates based on perceptions of risk, so unless the borrower can show they’re a low-risk individual, the borrower is unlikely to qualify for a rate that matches those seen in recent advertisements and headlines.

Making sense of the story

• The rates quoted are averages drawn from a variety of financial institutions, and lenders use varied approaches to set them.  Consumers who want to try for the lowest rates available need to consider basic factors, such as credit score, points, property type, down payment, and length of the loan.
• Credit score: The ideal borrower has a FICO score of 740 or higher, which puts the individual in the best place for pricing.
• Points: The lowest rates usually are decreased by paying a fee called a point, or 1 percent of the loan amount.  Borrowers may buy points in order to get the best rates at many banks.  Points might make sense depending on the borrower’s financial situation and how long they expect to stay in the home.
• Property type: Borrowers planning to buy a duplex or a four-unit build likely will have a higher interest rate.  Condominiums also may have a rate premium rate, especially if they are newer or the down payment is less than 25 percent.  Lenders also may charge more if the borrower is not planning to live in the home.
• Down payment: Borrowers who put down at least 25 percent are more likely to obtain the best interest rates.  Lenders offer different breaks on rates if equity in the property is higher, so borrowers should ask what is available.
• Length of loan: Borrowers who are likely to move in a few years may want to look into an adjustable-rate loan with a low interest rate fixed for a few years, and adjusted afterword.

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http://www.nytimes.com/2012/01/15/realestate/mortgages-shopping-for-the-best-rates.html?_r=1&ref=realestate

San Diego Union-Tribune

The number of loan servicers taking part in a state mortgage-aid program continues to grow roughly one year after its launch.  The Keep Your Home California program now has 55 participating mortgage servicers, up from 21 in June.
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http://utsandiego.com/news/2012/jan/10/more-lenders-added-calif-mortgage-aid-program/

If you receive an unsolicited email that appears to be from the IRS requesting that you file a “tax refund request,” do not fall victim to this identity theft scheme.

Numerous people are receiving unsolicited email informing them that a $9,390.55 IRS tax refund is due to them if they complete a tax refund request form. The email code will be forged to appear as if it originated from a trusted source, usually the IRS or an IRS tax preparer, but viewing the “message header” or “message source” will reveal its origin to be something else, and the link will not lead to a trusted domain, but one controlled by identity theft criminals.

If you file a tax return and a refund is due, you will automatically receive your refund. You will never be contacted by the IRS, and there is no tax refund request form. Never disclose personal information to any unsolicited inquiry, as compelling as the story may be.

If you have questions or concerns about any IRS tax refund you may have due, you should access the official IRS “Where’s My Refund” online application at the following destination: http://www.irs.gov/individuals/article/0,,id=96596,00.html.

Freddie Mac is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers without Freddie Mac’s prior approval and up to an additional six months with prior approval.   This means unemployed borrowers may be eligible for up to 12 months of forbearance.  Freddie Mac’s forbearance options are being expanded at the direction of the Federal Housing Finance Agency and will take effect on Feb. 1.

Delinquent borrowers in an existing short term forbearance plan can be evaluated for an extended forbearance under the new policy.

Previously, Freddie Mac allowed servicers to grant up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with prior approval.  Longer forbearance required prior approval and was generally restricted to events such as natural disasters, permanent disability or long-term medical emergencies.

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CoreLogic recently released its November Home Price Index report, which shows that home prices in the U.S. decreased 1.4 percent on a month-over-month basis, the fourth consecutive monthly decline. According to the Index, national home prices, including distressed sales, also declined by 4.3 percent on a year-over-year basis in November 2011 compared with November 2010.  Excluding distressed sales, year-over-year prices declined by 0.6 percent in November 2011 compared with November 2010 and by 1.6 percent in October 2011 compared with October 2010.  Distressed sales include short sales and REO transactions.

Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to November 2011) was -32.8 percent.  Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -23.1 percent.

Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 77 are showing year-over-year declines in November, three fewer than in October.

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Los Angeles Times

The mortgage market told a sad story throughout 2011: Record low rates, but few people taking advantage of them to buy homes.  The likely scenario in the new year, according to many analysts, is more of the same.
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http://www.latimes.com/business/la-fi-mortgage-rates-20120103,0,2240865.story

HUD recently announced the launch of the HUD Language Line, a telephone language service pilot that will offer live, one-on-one interpretation services in more than 175 languages. Accessible throughout the nation, the language line will help HUD staff to better communicate with Limited English Proficient (LEP) individuals and families about HUD housing programs, services, and activities.

The pilot program will run through September 2012. HUD staff across the nation will be able to use the HUD Language Line to provide non-English-speaking individuals and families with information about fair housing, homeownership, lead abatement, housing assistance, and other HUD programs and services. When a person with limited English proficiency contacts the Department, the HUD staff person taking the call will contact the Language Line and speak with a live operator, who will connect the caller and HUD staff person with an interpreter who speaks the caller’s language.

HUD also offers a Limited English Proficiency website to promote equal access to housing programs by providing important HUD documents in 18 different languages. HUD’s expanded LEP website features factsheets, housing brochures and other HUD forms in Amharic, Arabic, Armenian, Cambodian, Chinese, Creole, Farsi, French, Hmong, Khmer, Korean, Lao, Polish, Portuguese, Russian, Spanish, Tagalog, and Vietnamese, in addition to English.

The site offers brochures on fair housing, model lease agreements, information about HUD’s Housing Choice Voucher Program (Section 8), and Resident Rights and Responsibilities. The larger LEP initiative is in response to Executive Order 13166, which requires all federal, local and state agencies that receive federal funding to ensure that people with limited language skills have meaningful access to government programs and services.

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The New York Times

More than 2.6 million households are at least 60 days delinquent on their mortgage payments, according to the nonprofit coalition Hope Now. While those who are delinquent 60-120 days can make back payments to help them become current, those who are more than two months behind may need to employ other means to catch up.

Making sense of the story

• Beyond the obvious threat of foreclosure, falling behind on a mortgage can be costly:  Lenders charge late fees as well as legal and administrative costs, and the borrower’s credit score will suffer.  Experts say the sooner a delinquent borrower deals with the situation, the better the chances are of making a full economic recovery.
• Borrowers who are determined to stay in their home but cannot immediately make back payments need to start by contacting their lender or a credit counselor to discuss available options.  Among them are devising a repayment plan, modifying the loan, doing a short sale, and adding what is owed back into the mortgage balance.
• The first step borrowers should take is to assess their financial situation by looking at the amount of money brought in each month versus what is spent.  Many credit and housing counselors have worksheets on their websites to help with this.
• Next, borrowers should collect pay stubs, documentation on other income, two years’ worth of tax returns, two months of saving and checking account statements, and mortgage records.  If the borrower has experienced a hardship, such as a layoff, a divorce, or an illness, they should gather evidence of that, such as unemployment insurance receipts, medical bills, a copy of a doctor’s letter to their employer, or a divorce decree.
• Finally, borrowers should talk to their lender, servicer, or an adviser.   The federal Dept. of Housing and Urban Development certifies counseling agencies that provide free advice and assistance, and has a list of them on its website.  Counselors can offer alternatives and prepare a budget to see if the homeowner can afford to stay in the house.
• Before agreeing to a repayment schedule, it is important homeowners understand how their lender treats partial payments.  Some credit partial payments toward the balance immediately, while others hold the money in a “suspend account” until the full amount is received.  Some will return the check to the borrower, and some will stop accepting payments after the mortgage is seriously delinquent.

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http://www.nytimes.com/2011/12/25/realestate/getting-back-in-the-black.html?_r=1&ref=realestate