US Home Buyers Have A Better Chance To Gain A Quality Home Loan

The Q2 announcement and Disclosure of National Bank and Federal Savings Association Mortgage Loan Data report released by the Office of the Comptroller of the Currency (OCC) shows that homeowners have a better chance to buy a home with better credit options.Home Destination, a Minneapolis professional residential Realtor with RE/MAX Results, has found that Twin Cities home buyers are finding it a bit easier to obtain a quality loan.

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OCC Mortgage Metrics Report show it is easy to buy a home when homeowners can get a quality loan

OCC Mortgage Metrics Report

"Prepare your financing to buy a home; build up a down payment and study your best loan options available. Doing your homework, will position you for a better chance to purchase the home you are dreaming of." ~ Jenna Thuening

Minneapolis, Minnesota (PRWEB) October 02, 2012

Buying A Home With A Quality Loan The OCC Mortgage Metrics Report, released September 2012, covers 30.5 million first-lien mortgages worth $5.2 trillion in outstanding balances, about 60 percent of all first-lien mortgages in the United States. Buying a home is now more affordable than it has been in the last several years, thanks to homeowners improved ability to gain a quality loan.

"As credit quality stabilizes, it is easier for prospective home buyers to gain a quality loan that makes it possible to buy and for underwater homeowners to gain a home loan modification that they can live more comfortably with", says Jenna Thuening, owner of Home Destination.

The OCC Mortgage Metrics Report for 2012's Second Quarter gives real estate professionals and economists a summary of the percentage of mortgages that were current and performing. At the end of Q2, 88.7 percent of U.S. homeowners are current of their home mortgages compared to 88.9 percent in the first quarter and 88.1 percent at the end of Q2 in 2011. The report included information for home buyers that "HAMP attempts to increase payment sustainability by targeting monthly housing payments at 31 percent of borrowers’ income".

The Q2 Disclosure of National Bank and Federal Savings Association Mortgage Loan Data report released by the Office of the Comptroller of the Currency (OCC) show that homeowners have a better chance to buy a home because it is easier to obtain a quality loan. Minnesota had 1,485 home loan modification in Q2 of this year, with 0.7% gaining a mortgage term extension and 0.2% gaining a principal deferral. 430 of the modifications were through HAMP.

Highlights of the OCC Report Include:

  • The percentage of mortgages that were 30 to 59 days past due was 2.8 percent, up 12.1 percent from the prior quarter but down 7.5 percent from a year ago.
  • Seriously delinquent mortgages—60 or more days past due or held by bankrupt borrowers whose payments are 30 or more days past due—fell to their lowest level in three years.
  • The percentage of mortgages that were seriously delinquent was 4.4 percent, down 0.8 percent from the prior quarter and 9.2 percent from a year earlier.
  • The average loan modifications implemented in the Q2 of 2012 reduced borrowers’ monthly principal and interest payments by 24.6%, or $381. Modifications made under the Home Affordable Modification Program (HAMP) reduced payments by 35.3 percent on average, or $576.
  • The number of completed foreclosures decreased 16.1 percent from a year ago to 101,735.
  • Perhaps the best news -short sales increased by 5.7 percent from the previous quarter and 12.4 percent from a year earlier, meaning fewer foreclosures.

The OCC Report contributes year-over-year improvements to strengthening economic conditions, servicing transfers, and the ongoing effects of both home retention loan modification programs and home forfeiture actions. It is easier for underwater mortgages to refinance and potential home buyers to get a better quality loan due to more recent modifications that prioritize home loan affordability and sustainability.

The Federal Reserve Mortgage Debt Outstanding Report for September also shows an improvement show a slight increase for all holders to 13,216,356 in Q2 over 13,292,581 in Q1 of this year.

Modifications that decrease mortgage payments occur when loan servicers elect to lower homeowner's interest rates, extend the amortization period, defer principal or forgive principal. The reduced payments can make buying a home more affordable to borrowers and more sustainable over time.

Minnesota had 1,485 home loan modification in Q2 of this year, with 0.7% gaining a mortgage term extension and 0.2% gaining a principal deferral. 430 of the modifications were through HAMP.

Home Destination services Minneapolis and St Paul area homeowners and helps individuals who are looking to buy a home and gain a quality loan to do so. Jenna Thuening helps buyers find the right home and offers resources to help homeowners gain the best possible home loan.


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Attachments

OCC Mortgage Metrics Report for Second Quarter of 2012 OCC Mortgage Metrics Report for Second Quarter of 2012

shows mortgage loan quality is improving