Jobless Claims report

The initial Jobless Claims reported 500,000 people filed to receive unemployment benefits for the first time. This was the highest since November 2009 and the initial estimates were at 475,000. Continuing claims is at 4.5 million people receiving benefits. This number only takes into account unemployment benefits for the first 26 weeks.

In addition the Emergency Unemployment Compensation or EUC reports that an additional 4.75 million people are receiving this for a total of 9.25 million people receiving unemployment benefits. Until more jobs are created and people go back to work I don't see the economy recovering much.

Extreme Makeover Home Edition home in Neenah

Extreme Makeover Home edition is building a new home in my hometown this week. I stopped by last night to checkout the progress. WOW, they've done quite a bit in only a couple of days. Went to the live auction last night. Pretty good turn out and they raised quite a bit of money. According to Jeff Marlow's recent posting on facebook they are about $30,000 away yet from raising enough money to payoff the mortgage.  Text the word "GROOVE" followed by your dollar amount to 27138 if you'd like to donate to this great cause.

You can follow the build here
http://www.lexingtonhomemakeover.com/

Not sure of the exact date of when the home will be aired on ABC but I heard sometime around November.

FHA mortgage insurance premium changes updated

FHA announced their original plan to implement the changes effective September 7th, 2010 and that has now been changed to effective October 4, 2010. This will allow lenders additional time to make system changes and test to make sure everything is working correctly.

HUD announces refinancing program for upside down borrowers

Here's a link to an article that talks about HUD offering a new program to help out homeowners who are upside down on their mortgage and owe more than they are worth.

http://www.dsnews.com/articles/fha-rolls-out-principal-reducing-refi-program-for-underwater-borrowers-2010-08-06

From the investors I have talked with none are willing to refinance these types of loans. It will be interesting to see if any of the major banks will offer this program to any of their current customers.

Personally I think this is just FHA and HUD trying to put out a feel good story for the press. It'll be interesting to see in the coming months what happens.

I would encourage anyone who is currently upside down on their current mortgage to call their current lenders and see if they are willing to participate in this program.

FHA mortgage insurance premium changes

Congress has passed H.R. 5981. President Obama hasn't signed the bill yet but it's expected to be signed soon.

The law reads effective September 7, 2010 for all new FHA case numbers pulled the mortgage insurance premium will change. FHA's upfront mortgage insurance premium will go down to only 100 basis points "1%" of loan amount on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points ".85 or .90% of loan amount" on amortization terms greater than 15 years.

The upfront and annual premium changes do not apply to the following FHA Programs: Title 1, HECM, HOPE For Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), Section 223 (e) (declining neighborhoods), Section 238 (c) (Military Impact areas in Georgia and New York).

LTV's <=95% will increase to 85 basis points and LTV > 95% will increase to 90 basis points.

My websign redesign is now finished

My website redesign was just completed this week. The online application is quite a bit more user friendly. I also now am able to change and add new information to the pages quickly myself as things are constantly changing in the mortgage industry.

I hope you find the information on the site helpful. Check it out and give me your feedback.