Mortgage-Refinancing.com News

H4H Gets Better
The maximum loan-to-value on the HOPE for Homeowners program has been raised to 96.5 percent, the U.S. Department of Housing and Urban Development announced. In conjunction with the increase to LTVs, HUD said it would eliminate the previously required trial modification. Another change to the H4H program includes an extension of mortgage terms to 40 years from 30 years.

Wave of Subprime Downgrades Coming
Cumulative losses on subprime residential mortgage-backed securities issued in 2007 are now projected at 31 percent, Fitch Ratings announced. The frequency of foreclosure on the 2007 issuances are projected at 52 percent. Fitch said it is reviewing subprime RMBS issued from 2005 to 2007 and expects to release updated ratings during the next several days.

Lenders Testify Against Cramdowns
The chairman of the Mortgage Bankers Association testified before a Senate committee about giving bankruptcy judges the power to modify mortgages on primary residences, according to a transcript of his prepared statement. He said cramdown legislation would lead to tighter underwriting standards, increased interest rates and lower loan-to-values. It could also lead to the re-emergence of redlining.

Wrath of the Regulators
Southern Community Bancshares Inc. last week entered an agreement with the Federal Reserve Bank of Atlanta and the Banking Commissioner of the State of Georgia. FirstBank Financial Services Inc. also entered an agreement with the Fed and Georgia's banking regulator. The New York State Banking Department issued a cease-and-desist order against Dresdner Bank AG of Germany and its New York branch.

Thornburg Defaults on Notes
Thornburg Mortgage Inc. announced it missed an interest payment on its 8 percent senior notes. The payment was due on Nov. 15. Thornburg said it did not have available funds to make the payment.