Articles filed under Guttentag, Jack

• Despite new rules, borrowers still vulnerable to discrimination May 4, 2013 12:00 AM
  In an effort to eliminate discriminatory pricing of home mortgage loans, the federal government now imposes a raft of regulations on how mortgage brokers can price loans and charge for their services. The new rules have not eliminated discriminatory pricing, but they probably have raised mortgage broker fees.
  

   

• Allure of financial gain blinds many to the obvious red flags Apr 27, 2013 12:00 AM
  A few weeks ago, I discovered that I was not getting all the emails sent to me by readers, which induced me to examine my spam file. I disabled the spam filter, and reconciled myself to the daily task of weeding out all the junk mail by sight.
  

   

• Protect yourself against mortgage lock scams Apr 20, 2013 12:00 AM
  A price quote means nothing until it is properly locked with the lender. Too often, lenders take advantage of home mortgage borrowers because interest rates are continuously changing.
  

   

• Complications arise when splitting real estate in divorce Apr 13, 2013 12:00 AM
  If a couple is not married when they purchase a house, the possibility of a future split looms large, and they should agree before the purchase on how the house will be handled if it occurs. Married homeowners sometimes split, as well.
  

   

• Reverse mortgages struggle to shake stigma Apr 6, 2013 12:00 AM
  Q. It seems to me that you are writing a lot about reverse mortgages recently. Is the subject really worth the time you are spending on it?
  

   

• Mortgage professor: What seniors should know if borrowing costs start to rise Mar 29, 2013 12:00 AM
  This is a great time for senior homeowners to take out a home equity conversion mortgage HECM), especially if they don't need the extra money now! Sounds crazy? It isn't, so read on.
  

   

• New tool reliably compares mortgage rates, avoids overcharges Mar 23, 2013 12:00 AM
  The process of deciding whether to refinance a mortgage in order to lower costs involves four steps. What has been conspicuously missing in the marketplace has been one reliable information source supporting all four steps in the refinance process, but that is no longer the case.
  

   

• Eliminate ‘profit illusion’ from mortgage lending Mar 16, 2013 12:00 AM
  The subprime debacle arose out of a housing bubble within which decision-makers assumed that house prices would rise indefinitely. The profit illusion can be eliminated by requiring that reserves be set aside on each loan based on its risk. This is "transaction-based reserving," or TBR. It is common practice in the insurance industry, including mortgage insurance, where it works very well.
  

   

• Why haven’t any of the subprime ‘criminals’ been jailed? Mar 9, 2013 12:00 AM
  Q. According to a recent "Nightline" program, none of the Wall Street executives who engineered the subprime debacle have been convicted on criminal charges. Why do you think that is?
  

   

• New mortgage affordability rules offer hope Mar 2, 2013 12:00 AM
  My quick reaction to the hundreds of new mortgage rules recently issued by CFPB, contained in 804 densely packed pages, is that the agency has done a creditable job in an incredibly difficult situation. The rules cover a lot of territory, but those pertaining to borrower affordability probably have attracted the most attention.
  

   

• HECM’s success depends on reversing negative perceptions Feb 23, 2013 12:00 AM
  This article will look at overcoming problems that prevent HUD/FHA from attracting more of the seniors for whom the HECM program was intended. There are millions of them whose lives would be enriched with HECMs who haven't taken them. The purpose of the HECM program is to help senior homeowners finance their retirement, not to deplete all the equity in their homes at the outset of retirement.
  

   

• Eliminating fixed-rate HECM loan makes no sense Feb 16, 2013 12:00 AM
  The first article in this series indicated that major changes were needed in the HECM program. The one concrete proposal directed to this objectiv is to eliminate the fixed-rate standard HECM. Viewed strictly as a way to reduce FHA deficits, elimination of the fixed-rate standard while leaving the fixed-rate Saver HECM makes no sense.
  

   

• HECM reverse mortgages are attracting the wrong crowd Feb 9, 2013 12:00 AM
  The recent actuarial review of the financial status of FHA’s home equity conversion mortgage (HECM) insurance fund revealing a deficit of $2.8 billion has generated considerable attention in Congress and elsewhere. Some commentators have suggested that the deficit was a reason for curtailing the program.
  

   

• Using a HECM reverse mortgage as an insurance policy Feb 2, 2013 12:00 AM
  Can seniors insure themselves against running out of money? A standard remedy for anxiety associated with hazards to life, limb or pocketbook is insurance. In the case of homeowners with equity, the insurance is provided by the federal government with the HECM reverse mortgage program. But the senior must use the program properly.
  

   

• Five things to know about extra loan payments Jan 26, 2013 12:00 AM
  This is a good time to pay down your mortgage. One of the vexing features of the post-crisis financial system is the dearth of riskless investments paying a decent return. The rates on federal government securities and insured certificates of deposit (CDs) are not much greater than zero.
  

   

• Getting lender’s best price on home loan often futile Jan 18, 2013 12:00 AM
  This series of articles is about opportunities available to consumers to save money on a mortgage in 2013. This article is directed at those looking to find the best possible deal on a refinance or home purchase loan.
  

   

• Five refinance myths debunked Jan 12, 2013 12:00 AM
  This series of articles is about opportunities available to consumers to save money on an existing mortgage, or on a new one they plan to take in the near future. This one is about unexploited refinance opportunities.
  

   

• The truth about HECMs and upfront fees Jan 5, 2013 12:00 AM
  One of the bum raps against home equity conversion mortgages (HECMs) is that their upfront fees are too high. It is a dumb rap as well, because it is based on a comparison with standard mortgages, which aside from the fact that both are secured by a property, have very little in common.
  

   

• Retirees must prioritize between debt-free estate and spendable funds Dec 29, 2012 12:00 AM
  Q. I will retire shortly at 65 and still owe $67,000 at 6 percent on my mortgage. My house is worth $250,000 and I have savings of $300,000. Should I pay off the mortgage, let things ride, or is there another option?
  

   

• Buyers usually prefer land contracts to lease-to-own deals Dec 15, 2012 12:00 AM
  Q. You have written articles about lease-to-own contracts, but never about land contracts, which I am told may work better.