Fannie Mae: Three Servicers Improve Foreclosure Prevention Efforts

Fannie Mae released the results of the Servicer Total Achievement Rewards (STAR) Program Thursday, announcing improvements by JPMorgan Chase, PHH Mortgage, and U.S. Bank. All three banks improved their foreclosure alternative practices.
“The STAR program evaluates servicers’ capabilities and results and holds them accountable for preventing foreclosures and protecting the interests of American taxpayers,” said Tara Clayton, VP of servicer review and measurement at Fannie Mae.

“STAR is making a difference when it comes to increasing servicers’ focus on areas of critical importance to homeowners, Fannie Mae, and the market,” Clayton stated.
STAR breaks servicers into three categories based on the number of Fannie Mae loans they service.
In the first peer group of 11 servicers, four are expected to receive a three STAR rating – meaning they are at or above median performance – in 2011. Those four include CitiMortgage, Everbank, GMAC Mortgage, and Wells Fargo.
In Peer Group Two, six of nine servicers are expected to receive a three STAR rating at the end of the year, including Aurora Bank, FSB, Central Mortgage Company, Fifth Third Bank, The Huntington National Bank, and Regions Bank.
In Peer Group Three, nine of 13 servicers are expected to be at or above median performance level.
The nine banks include American Home Mortgage Servicing, Arvest Mortgage Company, Associated Bank, Capital One, Colonial Savings, Doral Bank, Manufacturers and Traders Trust, Nationwide Advantage Mortgage, and Navy Federal Credit Union. (Krista franks - dsnews.com)

Take advantage of expiring tax deductions

There are several tax credits and deductions set to expire at the end of the year, and given the federal deficit problem, there's a good chance they won't be extended. If you want to take advantage of them, you need to act before Jan. 1, 2012.

Mortgage insurance premium deduction

If you itemize deductions, you may deduct the premiums you pay for mortgage insurance, just like you do mortgage interest. However, this deduction is phased out if your income exceeds certain levels. To qualify for the full deduction, a couple or a single taxpayer must have an adjusted gross income of $100,000 or less. The deduction is phased out completely if AGI exceeds $109,000.
This deduction, which was first enacted for 2007, is scheduled to expire at the end of 2011. Thus, your payments are deductible only if you pay them during 2011; a payment after 2011 is not deductible. (Inman News)

Rate on 30-year fixed mortgage falls to 3.98%

WASHINGTON – The average rate on the 30-year fixed mortgage hovered above its record low for a fourth straight week. But cheap mortgage rates have done little to boost home sales or refinancing.

Freddie Mac says the rate on the 30-year fixed loan fell to 3.98% percent from 4% the previous week. Seven weeks ago, it dropped to a record low of 3.94%, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage edged down to 3.3 percent from 3.31%. Seven weeks ago, it too hit a record low of 3.26%.

Rates have been below 5% for all but two weeks this year. Yet this year could be the worst for home sales in 14 years. (USA Today)