Regulators tighten guidelines for 'exotic' mortgages

Federal banking regulators today published new guidelines for banks to follow when originating and underwriting "nontraditional" or "exotic" mortgages that carry potential payment shock for borrowers.

Many in the loan industry cite these mortgages as major contributors to the nation's home-ownership boom as they have enabled many borrowers to purchase in high-priced markets where traditional mortgages were out of reach.

The new guidelines retain disclosure and underwriting  more...

FBI: Suspicious loan activity up in Southern California

Southern California is on track to see twice as many reports of potential mortgage fraud cases in 2006 as last year, according to a Los Angeles Times report based on FBI figures.

Lenders filed 4,228 suspicious-activity reports in the first 11 months of the fiscal year ending Saturday, the Times said.  more...

First American Title grows in Kansas

First American Title Insurance has acquired Winfield, Kan.-based Barbour Title Co., which offers title insurance, escrow closings and contract escrows to residents of Kansas' Cowley and Sumner counties.

Barbour, founded in 1915, acquired Rogers Abstract & Title in 1997, and today employs 16 people in three offices.

First American's acquisition of Barbour closed Sept. 1 under terms that were not disclosed.

Countrywide sues over Indiana mortgage fraud operation

An Indianapolis man allegedly tricked dozens of Virginia residents into buying homes in Indiana at inflated prices as part of an elaborate mortgage fraud scheme, Countrywide Financial Corp.  more...

East Coast real estate slowdown escalates

The real estate slowdown along the East Coast continued in August, as markets in Virginia and Massachusetts endured plummeting sales and sinking prices, according to Realtor associations in both states.

In Virginia, August home sales fell for the 12th consecutive month, as prices dipped from a year ago, the Virginia Association of Realtors reported.

Statewide, closed sales were off 24 percent for August compared to a year ago.  more...

Job market forecast: gloomy

A key indicator that measures job offerings in major U.S. newspapers dropped for the second straight month in August, as businesses faced lower sales and rising costs, the Conference Board reported Thursday.

The Help-Wanted Advertising Index fell one point to 31 last month, down from 32 in July and 37 one year ago.

In the last three months, help-wanted advertising declined in eight of the nine U.S. regions.  more...

PNC selling $2 billion in home loans

PNC Financial Services Group Inc. will sell or securitize $2 billion in residential mortgage loans and replace them with other residential loans with higher yields.

In an SEC filing Thursday, the Pittsburgh-based bank said the move would result in a $50 million pretax loss in the third quarter, but boost net income by $25 million a year.

On Sept.  more...

Overnight real estate rates head uphill

Long-term mortgage interest rates were up Thursday, and the benchmark 10-year Treasury bond yield rose to 4.61 percent.

The 30-year fixed-rate average edged up to 5.8 percent, and the 15-year fixed-rate rose to 5.5 percent. The 1-year adjustable remained at 5.24 percent.

The 30-year Treasury bond yield increased to 4.76 percent.

Rates are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.  more...