My Way Lending

Bank of America announced that it plans to work-out approximately $40 billion of loans in trouble at Countrywide as part of it’s acquisition of the failed mortgage lender. BofA estimates that the $40 billion will result in a little over a quarter-million homeowners keeping their homes instead of losing them to foreclosure.

From the Pacific Business News on the new BofA initiative:

In addition, BofA says it will continue its policy of allowing tenants living in properties facing foreclosure to remain on site for 60 days after the completion of foreclosure proceedings. They will receive $2,000 to defray moving expenses if they leave voluntarily within 30 days of the completion of foreclosure proceedings.

BofA (NYSE: BAC) says it plans to spend $1.5 trillion over the next 10 years in community-development efforts that focus on affordable housing, economic development and consumer and small-business lending. BofA is the second-largest bank in the Sacramento region, based on deposits, according to the Federal Deposit Insurance Corp.

You can read the full press release from Bank of America on the initiative here.

Since we are all living longer than medical science may have predicted when we were young, many times the principal assets an older person may have will be his or her home. Since most elderly people want to stay in their homes for the rest of their lives, if their physical health allows, many are faced with a tough choice: either sell the home and move to an apartment or assisted-care facility, or make use of a reverse mortgage.

Reverse mortgages are a somewhat popular way for the elderly to make use of the equity in their homes. Many times bankers who they have always dealt with are eager to assist their elderly clients in obtaining the use of the equity in their home. If they do take this route, they argue, that senior should be able to earn more money on the cash, if it is properly invested, than the home as it may appreciate.

Just what is a reverse mortgage?

(more…)

Post from: Reverse Mortgage Loan Blog

Is your home a good safety net for you when you are older?

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The rating agency downgraded $247 million in Countrywide subprime loan transactions as the transactions experienced 60-day delinquency rates of ranging from 7-40%. In the process the ratings agency affirmed the ratings of $2 billion of the subprime-based transactions. Here’s the breakdown - check out the delinquency numbers on these things!

CWABS 2003-BC3 60+ day Delinquency: 26.73%
CWABS 2003-BC4 60+ day Delinquency: 18.01%
CWABS 2003-BC5 60+ day Delinquency: 16.06%
CWABS 2003-BC6 60+ day Delinquency: 12.35%
CWABS 2003-5 Group 1 60+ day Delinquency: 6.79%
CWABS 2003-5 Group 2 60+ day Delinquency: 40.99%
CWABS 2004-BC4 60+ day Delinquency: 18.59%
CWABS 2004-1 60+ day Delinquency: 14.92%
CWABS 2004-5 60+ day Delinquency: 19.51%
CWABS 2004-8 60+ day Delinquency: 28.68%
CWABS 2004-11 60+ day Delinquency: 28.76%