| Fixed rates return to reverse mortgages
Many older homeowners prefer reliable, dependable mortgage interest rates. It helps them plan their monthly financial calendars, especially when they are battling the challenges of paying for health care on fixed incomes. Fixed-rate mortgages have been absent from the reverse-mortgage scene for more than decade, as lenders relied primarily on adjustable-rate mortgages insured by the U.S. Department of Housing and Urban Development. These mortgages, known as Home Equity Conversion Mortgages (HECMs), account for nearly 85 percent of the reverse market. BNY Mortgage, which recently announced it would trim the interest rate charged on the adjustable-rate HECM, introduced two fixed-rate reverse-mortgage products on March 5. The first, called the New Generation HECM, is similar to the current FHA/VA rate and hovers near 6.5 percent, not including the mandatory mortgage insurance premium.
To Subprime Origination
General Motors Acceptance Corp. said Wednesday that it intends to "sharply" cut the volume of subprime mortgages originated by its Residential Capital LLC unit for 2007, amid continued pressure from housing prices and the nonprime mortgage market. GMAC, which used to be wholly owned by General Motors Corp., ... .
North Carolina law firm files suit against Beazer
NEW YORK, March 26 (Reuters) - A North Carolina law firm has filed a state lawsuit seeking class action status against Beazer Homes USA Inc. (BZH.N: Quote, Profile, Research), accusing the home builder and its mortgage company of selling mortgages to unqualified buyers. The lawsuit was filed on Friday in Mecklenburg County Superior Court on behalf of Mark and Lea Tingly, who bought a newly constructed home in the Southern Chase subdivision -- with houses built for first-time buyers -- in a nearby county. Although the lawsuit states other class member have not been identified or named, it said Beazer Mortgage "would advise or encourage the prospective buyers to falsify information set fourth in their respective loan applications." The lawsuit also said the company "changed the information set forth on the loan applications by the prospective buyers," in order for the prospective buyer to qualify to buy a home in the Beazer subdivision.
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