FDIC Raises Fees

Rising bank failures forced the U.S. to raise premiums and implement a one-time fee in order to cover the cost of deposit insurance. There were rumours of changes to a debt guarantee program but only minor changes were announced.

The Federal Deposit Insurance Corp. (FDIC) voted to charge banks an additional $27 billion this year due to an expected rise in bank failures. The government-run corporation reimburses customers for up to $250,000 when a bank is forced to close its doors.

The board estimates that bank failures will cost $65 billion through 2013. The fund has fallen far below its government-mandated cushion; it sat at an estimated at $18.9 billion in the fourth quarter.

“We’re taking steps today to ensure that the deposit insurance system remains sound,” FDIC Chairman Sheila Bair said at a board meeting broadcast on the FDIC website. “These steps are necessary because banks, and not taxpayers, are expected to fund the system.”

A one-time fee of 20 cents per $100 in insured deposits will be collected in the third quarter, generating $15 billion according to a Bloomberg report.

The regular fee will also be increased to 12-16 cents from 10-14 cents beginning in April. In 2007, FDIC insurance premiums averaged 5.4 cents and before that, more than 90% of banks didn’t pay for deposit insurance.

There was also considerable speculation that the FDIC would extend the Temporary Liquidity Guarantee Program (TLDP). The program allows FDIC-insured banks and bank holding companies to issue government-insured debt with a maturity date of no later than June 30, 2012.

Market watchers suggested the deadline could be extended as late as 2019. The companies pay the FDIC a premium of up to 100 basis point per year to insure senior unsecured debt.

Last week, JPMorgan Chase and Co. used the program to raise $10 billion at a spread of 71.4 – 89 basis points above comparable Treasury notes.

Officials did not announce an extension of the maturity but instead voted to expand the program to include mandatory convertible debt. Officials called it a “very narrow targeted improvement.”

By Adam Button and edited by Stephen Huebl
©CEP News Ltd. 2009

Homebuyer Tax Credit Effective Today

Yesterday the Treasury Department moved to implement the 1st piece of the new American Recovery and Reinvestment Act of 2009.

The Department and the Internal Revenue Service which will manage it announced on Wednesday that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.

The credit is available to homebuyers who purchase a home before December 1 of this year. In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.

The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.

The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.

For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.

The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually.

Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit.

Treasury Secretary Tim Geithner said in a press release from his department, “The expansion of the first-time home buyer tax break as part of the President’s recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers. We view our economic recovery plan, our financial stability plan, and now this homeowner affordability plan as three legs of the same stool – an integrated whole that represents our immediate response to the current crisis.”

Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.

South Florida Mortgage Rates

As a South Florida Mortgage company we can help find a mortgage for purchasing a new home for the first time. Finding the right home can be a huge task, but you will need to find the right financing to go with it. With our help, you’ll be able to find the help you need to finance your new home. We can provide a smooth mortgage transaction with great mortgage rates, and low closing costs. From application to decision, we’ll hold your hand to guarantee your satisfaction. As a Florida FHA lender we can provide a FHA loan program with a low down payment of 3.5%. VA loans do not require any down payment.

Gateway Capital Mortgage also provide refinances for South Florida. As a mortgage lender, we’ll provide full disclosures to make sure there are no surprises at the closing table. We make it worry-free to reduce your current interest rate, and your current monthly payment. Our mortgage professionals will help guide you with the best South Florida Mortgage, and provide you with the florida mortgage information that will suit your needs.

We can also provide a Florida Reverse Mortgage through the HECM mortgage program. This HUD program has been helping a lot of senior residents in South Florida. Please contact us or apply online for direct consultation!

Orlando Mortgage Rates

Gateway Capital Mortgage Corporation is an Orlando Mortgage lender who can help finance your new home or help refinance your current mortgage. We can offer a florida mortgage for FHA, VA, Jumbo, Super Jumbo, USDA, and more!

Finding mortgage help can be hard to find when purchasing a new house for the first time. Picking the right house can be a great task, but you will need to have the right mortgage to go with it. With our guidance, you’ll be able to find the help you need to finance your new house. We can provide a smooth loan transaction with great mortgage rates, and low closing costs. From application to decision, we’ll hold your hand to guarantee your satisfaction. As a Florida FHA lender we can provide a mortgage program with a low down payment of 3.5%, and seller paid closing costs of up to 6%.

We also can refinance your current mortgage to a lower payment or lower rate. We will provide full disclosures to make sure there are no surprises before closing or at closing. We make it worry-free to reduce your current rate, and your current monthly payment. Our professionals will help guide you with the best Florida Refinance Rates, and will provide you with the mortgage information that will suit your needs. All refinance on primary homes are provided with a 3 day right of rescission.

Credit Repair

Finding the right credit repair information is imperative to fixing your credit. We can offer you products that will help you restore, fix, or clean up your credit file. This coaching software below is availabe for a small monthly fee and will be credited back at closing. It will shed light on how to fix your score, and suggest strategies in dealing with revolving credit. This coaching program will help you start to improve your credit score to obtain your mortgage loan! Please call 888-595-7339  or contact us for details. Video will load in 1 minute

Market Update February 20

We have started the morning strong today, florida mortgage rates and mortgage bonds are trading higher, as stocks remain under selling pressure. Yesterday, the Dow fell to a six year low, below a level it had first surpassed back in 1997. Wow – not accounting for dividends, the Dow is at a level equal to what it was twelve years ago. You’d have to go back to 2002 for the lowest intraday level on the Dow of 7197 to find a potential floor of support. We’ll be watching this level closely, as it’s very possible to be tested today. If Stock prices bounce higher off this level of support, it could ignite a overdue rally. However, that would be problematic for Bond prices, as dollars will flow into Stocks to chase the rally.

The strong ceiling of resistance overhead continues to keep a lid on Bond pricing gains. Even weak Stocks haven’t helped Bond prices break above resistance. This doesn’t mean that prices can’t improve down the road, but it still may be prudent to lock mortgage rate transactions and protect any modest gains, especially with the aforementioned dynamic in Stocks.

Market Update February 19

Florida Mortgage – We have been overwhelmed as of late with different ideas and programs that President Obama is initiating, most recently announcing his plan to help homeowners avoid foreclosure via two different initiatives. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. As we break apart the details of this plan, we will be giving you more information.

This morning, Bonds are trading lower as the tough multi-layered ceiling of resistance has put a lid on any advance. A quick look at the Bond Page shows the 50-day Moving Average has been a tough level to break for the entire month of February. Oftentimes, prices will drift lower after getting tired out from failed attempts to break above resistance. This appears to be happening now, and has given us a Locking bias for the past few days.

This morning’s Producer Price Index (PPI) grabbed some headlines as being a hot number, but we feel that it is more of an aberration due to one time charges, as well as data that suggests inflation on the wholesale level will remain tame down the road. It’s funny to watch the markets looking for some inflation as “good news”, since everyone realizes deflation is a much worse problem.

Initial Jobless Claims rose by 627,000, near expectations of 620,000. A staggering number, but what’s of even greater concern is that Continuing Claims now stand at 5,000,000. Think about it. 5 Million Americans are now unemployed and cannot find work. For many of you reading, this situation may hit close to home. Will it get better? The answer is yes, but not right away, and it will almost certainly worsen before the turn. Look for the worst to come over the next three months, but then some moderate improvement should begin to follow as we head towards the Summer.

We suggest locking rates at 1% origination fee structure as the heavy layer of overhead resistance has kept a lid on any meaningful price advances. We are offering rates in the 4% range and feel confident now is the time to structure financing.

Market Update February 17

Tue, Feb 17 – 5:00 PM ET – Florida Mortgage
Market Wrap: The bond market benefited from ‘flight to safety’ buying as investors fled the stock market. The bond rally lifted our benchmark 4.5% FNMA bond 50bp higher for a close at $101.12. Treasury issues also fared well. A $31 billion auction of 3-month bills and a $30 billion auction of 6-month bills were well received with greater bid to cover ratios of 3.13 and 3.01 respectively. Ten-year Treasuries jumped 206bp providing further evidence of flight to safety buying. Foreign buying was strong in December as the monthly Treasury International Capital (TIC) report showed a higher than forecast net inflow of foreign capital into the U.S. of $34.8 billion vs. a consensus estimate of $20 billion. The day’s economic news fed recessionary fears with a particularly ugly NY Empire State Mfg. Index. The volatile Index fell to a record low in February with a far worse than expected reading of -34.65 vs. a forecast of -24.0. January’s level was -22.2. The day’s housing news wasn’t much better. The National Association of Home Builders/Wells Fargo Housing Market Index remained in single digits for the fourth consecutive month with a reading of 9, up from last month’s record low of 8. The sub-indexes of current new home sales, six-month expectations for new home sales, and prospective buyer traffic in new homes suggests there has been virtually no improvement in the housing market for new, single-family homes. Stocks fell from the open over global banking concerns and continued to sell-off following the day’s economic news indicating the recession is worsening. The Dow lost 297 points to close at 7,552 with Wal-Mart the only Dow component closing higher after posting a greater than forecast quarterly profit. The broader S&P 500 Index plunged 37 points to finish at 789 while the NASDAQ Composite Index fell 63 points to close at 1,470.

4:06 PM ET - President Obama signs the new stimulus package into law. Stocks were trying to make a comeback but moved lower after the signing. Stocks think it is more like a spending package than a stimulus package. The Dow closes at session lows – down 300 points at 7,552. MBS still in positive territory. Oil much lower at $35/barrel down $2.50.

1:52 PM ET - U.S. homebuilder sentiment surprisingly rose in February but were still near all-time lows. The NAHB/Wells Fargo Housing Market Index sqeeked out a 1 point gain to 9 from the record low of 8.

12:26 PM ET - Equity markets still under considerable pressure pushing dollars into the safe haven of the debt markets. The Dow is off 285 points while the 4.5% MBS is higher by 44bp.

9:50 AM ET - MBS trading higher as Stocks near low levels hit back in late November. NY Empire Index plummets to record low of -34.65. Treasuries soaring as investors seek safe haven. Oil falling by $2.50 at $35/barrel as demand wanes.

8:15 AM ET - Global stocks drop on continued fears of a worldwide recession will continue. Stock futures plunging here in the U.S. Treasuries advance the most in a week as investors seek safe havens. Oil falls to $36.61/barrel down 88 cents. MBS not yet open.

Mortgage Rates Jacksonville Florida

Gateway Capital Mortgage is a Jacksonville Florida Mortgage lender that can help when purchasing a new home for the first time. Finding the right home can be a huge accomplishment, but you will need to find the right financing to go with it. With our help, you’ll be able to find the information you need to finance your new home. We can provide a smooth transaction with great rates, and low closing costs. From application to decision, we’ll hold your hand to guarantee your satisfaction.

We also provide Jacksonville Refinance for your current mortgage. We provide full disclosures to make sure there are no surprises at the closing table. We make it worry-free to reduce your current mortgage rate, and your current mortgage payment. Our florida mortgage professionals will help guide you, and provide you with the mortgage information that will suit your needs. We offer many types of refinances including cashout, rate/term, and streamline refinancing.

We offer a wide range of mortgage solutions.
We promise to provide you with the best possible mortgage options.
Because our Florida mortgage representatives are experts, and can help you with making the right financial decision.
We search investors for the best available FL refinance products.
We offer the best mortgage rates for all credit grades in Florida.

FL FHA Loans
VA Loan
Florida Fixed Rate Mortgage
Refinance Cash Out for any reason
Florida Jumbo Loans
USDA Mortgage
Florida Reverse Mortgage
Adjustable Rate Mortgage
FL Mortgage Rates

Florida Reverse Mortgage

The Home Equity Conversion Mortgage HECM (Florida Reverse Mortgage) is the oldest, and the most well known reverse mortgage program. Since 1989, HECMs are federally insured by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development also known as HUD. The amount of available proceeds you can qualify for under the HECM loan program will depend on your age, appraisal, and current mortgage interest rates. The older you are, and the more equity you have in your home, the more funds you will be able to receive. The maximum loan limit is $417,000. If your home is worth more than $417,000, the amount of equity you are eligible to receive will be based on $417,000. If your home is worth less, then the loan amount will be based on the lower appraised home value.

Many of the upfront fees associated with the HECM are capped by FHA. Currently, you will pay a mortgage insurance premium MIP equal to 2 percent of the maximum claim amount (the value of the home or $417,000, whichever is less), plus an annual premium thereafter equal to 0.5 percent of the loan balance. The MIP is paid directly to FHA in exchange for guaranteeing the loan. The MIP guarantees that if the company managing your account commonly called the loan servicer goes out of business, the government will step in, and make sure you have continued access to your loan funds. Furthermore, the MIP guarantees that you will never owe more than the value of your home when the HECM must be repaid.

Under the HECM loan program, which accounts for most reverse mortgages made in the US, the origination fee equals 2% on the initial $200,000 of maximum claim amount (lesser of the home value or county lending limit) and 1% on the balance thereafter with a cap of $6,000. In addition to these two primary fees, you will also pay other standard closing costs associated with getting a mortgage, including title insurance, attorneys fees, recording taxes, etc.  The HECM loan program is widely used Florida Mortgage program in the state of Florida.

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