The Nehemiah down payment assistance program is a non-profit organization that has helped thousands of families, without the upfront cash to buy a home, make their home ownership dreams come true by gifting down payment and closing costs.

According to Nehemia’s website, the Department of Housing and Urban Development said that such down-payment systems will no longer be allowed after October 1st, 2008.

You can help keep this program alive for yourself and others by clicking this link. You’ll find a simple form where you can share your story on how Nehemiah has helped you (or would help others). The letter is then delivered to key members of the legislature and to the housing department.

Zillow, the popular real estate search and home valuation tool, announced a new product called the Zillow Mortgage Marketplace.

Here, buyers can submit an anonymous application (no SSN or contact info) to lenders who will then respond with a quote through the Zillow Mortgage Marketplace. The consumer then chooses the best quote and contacts the winning mortgage broker directly to finish and finalize the application.

Buyers are still required to accurately report their credit, income and other important details in order to get a realistic bid from the lenders.

As the presidential primary in Ohio approaches, Sens. Hillary Clinton (D-N.Y.) and Barack Obama (D-Ill.) are highlighting their different housing proposals. Voters in Ohio especially are concerned about the housing proposals because the state has one of the highest foreclosure rates in the nation.

Clinton insists that government intervention is necessary. She proposes ceasing foreclosure proceedings for 90 days to allow borrowers and lenders to work on modifications, instituting a five-year interest-rate freeze on adjustable-rate subprime mortgages for primary residences only, and the use of government-backed mortgages to refinance borrowers who can no longer manage their monthly payments.

Meanwhile, Obama says that government involvement will force lenders to put the brakes on making new loans and modifications. Instead, he is focusing on stricter penalties for predatory lenders, tax credits for mortgage interest, and a $10 billion fund dedicated to preventing foreclosure and assisting first-time buyers.

Source: The Wall Street Journal, Nick Timiraos (02/20/08)

NEW YORK (CNNMoney.com) — The Federal Reserve cut a key short-term interest rate by a half-percentage point Wednesday, its second significant cut in just over a week, as the central bank tries to combat the growing risk of a U.S. recession.U.S. stocks, which had been slightly lower ahead of the announcement, surged on news of the rate cut.

The federal funds rate, an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans, was cut to 3.0% from 3.5%. The rate had stood at 5.25% only four months ago.

via CNNMoney.com

The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday following an unscheduled meeting, citing continued concerns about a weakening economy and turmoil in the financial markets.via: CNNMoney

Federal Reserve Chair Ben Bernanke told a Washington D.C. business group Thursday that more interest rate cuts are in the offing to ward off a further weakening of the economy.

“On the whole, despite improvements in some areas, the financial situation remains fragile, and many funding markets remain impaired,” Bernanke said. “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.”

Many economists now believe the Fed will slice its key interest rate by a bold one-half of a percentage point when the Fed meets Jan. 29-30. Some, however, think the Fed will go with a more modest one-quarter point reduction, given concerns that high energy prices could spark inflation.

The Federal Open Market Committee (FOMC), the policy-making arm of the Fed, will be paying close attention to whether the weak housing market spills over to other sectors of the economy. However, so far, Bernanke said, the recession remains just a forecast.

Via: Dow Jones Business News (01/10/08)

Mortgage bankers are eagerly going back to basics before Congress makes them. At the annual convention of the Mortgage Bankers Association, or MBA, the most oft-spoken phrase was “back to basics.” What’s the hottest mortgage product today, Doug Duncan? “The 30-year fixed-rate mortgage,” Duncan, chief economist for the MBA, said with a tight smile. “It’s pretty much anything that’s fixed rate and conforming.”

In other words, the home loan du jour conforms to standards set by mortgage giants Fannie Mae and Freddie Mac: It isn’t a jumbo (a mortgage for more than $417,000), isn’t subprime (for a borrower with iffy credit), and doesn’t have an adjustable rate. Preferably, the borrower totes a good-size down payment (if buying) or sports serious equity (if refinancing).

Foreclosures are surging as homeowners fall behind on their mortgage payments and then discover that they owe more than their homes are worth. In response, lenders have pulled back. Subprime loans are drying up, more borrowers are asked to document their incomes, many lenders require bigger down payments than they used to, and jumbo loans are harder to get and have higher rates.

Mitch Ohlbaum, president of Legend Mortgage in Los Angeles, said: “Twelve months ago, it was sort of ‘anything goes.’ The rules were slim to none. Everyone was coming out with more aggressive deals every day.” And now? “You will see a return to basics,” Ohlbaum said. Mortgage insurance already is making a comeback, and he expects to see more carrybacks, in which the seller lends some of the money. In addition, more people will make down payments with money given by their families.

via: PMZ Home Loans

Analysts are predicting that the Federal Reserve will cut key interest rates when it meets Jan. 29-30.

Such a rate cut — while not directly tied to mortgage rates — does predict their levels. A key rate cut generally means mortgage rates will decline.

Recently released employment numbers “are clear evidence that the economy is beginning to slow,” says John Canavan, market analyst at Stone & McCarthy, “and that the housing weakness and credit-market woes are starting to take a bite. At this point, there’s no question that the Fed will have to ease again.”

The question is how much of a cut. Some observers say a half percentage point is likely to help offset the negative fallout from the subprime mortgage market and weaker job growth.

Other analysts say consumer spending is high and exports are rising. They predict a quarter percentage point decrease.

via: The Wall Street Journal, Deborah Lynn Blumberg

Freddie Mac has launched an anti-fraud video on YouTube^TM in an effort to warn troubled borrowers about the dangers of falling victim to con artists promising to help them avoid foreclosure through various fraudulent workout options.

Click here to view the video.

Click here to visit Freddie Mac’s Avoid Fraud website.