California Mortgage Rate
California Department of Corporations - In the News - Home Buyers Turning to Interest-Only Loans:
This type of mortgage, designed for buyers who intend to live in their homes for less than the length of the loan, allows borrowers to make lower payments than a traditional mortgage because none of the monthly payment goes toward the principal. Interest rates generally are up to 1 percentage point lower than fixed-rate mortgages, and the full payment is tax-deductible. ... At Washington Mutual Inc., the nation's largest residential lender, such mortgages have accounted for roughly $1 billion a month since being introduced last summer. As mortgage rates fell to the lowest levels in decades, the loans were the most requested of all categories, said Gregory Sayegh, a senior vice president in the Irvine office. ... [Read More]
California Department of Real Estate: Sources of Home Loans
CalHFA was created as the state's affordable housing bank by the State of California in 1975. CalHFA administers several different homeownership programs, all geared toward fulfilling the dream of first-time homeownership for California families. CalHFA offers 30-year fixed rate mortgage loans at interest rates that are typically much lower than conventional home loans, saving borrowers hundreds of dollars on their monthly mortgage payment. CalHFA also provides down payment assistance with deferred payments that do not need to be repaid until the home is sold, refinanced, or paid in full. For more information, contact CalHFA at www.calhfa.ca.gov or 1-800-789-2432. ... [Read More]
Housing Policy Development
In California, there are approximately 149,000 units of privately-owned, federally-assisted multifamily rental housing plus additional tax credit and mortgage revenue bond properties, many with project-based rental assistance. These at-risk units are occupied by elderly persons and families with lower-incomes who cannot afford to pay market rate rents and who could be displaced if the projects convert. A large percentage of these units may convert to market rate as subsidy contracts or regulatory agreements expire. Potential conversion of affordable units to market rate units is an ongoing and critical statewide problem. Affordable Rental Housing at Risk of Conversion ... [Read More]
FTC: Mortgage Broker’s Deceptive Claims Tricked Consumers Looking for a Good Rate
The FTC alleges that the defendants violated the FTC Act by deceptively claiming that they offered: (1) a fixed interest rate or fixed payment loan; (2) a loan in which payment of the minimum amount specified covers both interest and principal; (3) a loan with a specific payment schedule, interest rate, and/or APR; and (4) a loan with no prepayment penalty or with a prepayment penalty that would not apply if the loan was subsequently refinanced through CFF. The FTC complaint also alleges that defendants misrepresented the “annual cash savings” that consumers would receive if they refinanced through CFF. In addition, the FTC alleges that the defendants failed to disclose or to disclose adequately that monthly payment of the specified amount would result in negative amortization and cause an increase in the total debt for periods during the course of the loan. ... [Read More]
Business, Transportation & Housing Agency - Departments: California Housing Finance Agency
The Agency raises its finance capital for its housing finance programs, using primarily tax-exempt debt. These low cost funds are, in turn, passed on to provide affordable housing financing with a reduced interest rate. The Agency uses no State appropriated funds and is, thereby, self-supporting, adding no debt burden to the State's taxpayers. CalHFA is also authorized through its Mortgage Insurance programs to provide affordable and hard to obtain mortgage insurance. ... [Read More]
California Department of Real Estate: Using the Services of a MortgageBroker
(also know as a lender rebate) – Therate at which a mortgage broker is compensated for the difference between theinterest rate on a par loan and the interest rate on an above par loan, which abroker can deliver to the lender. This is expressed in the number of points paidto a broker. A broker receives payment of the premium, the lender obtains ahigher than par loan, and the borrower pays for the premium over the entire lifeof the loan. For example, if the interest rate on a par loan is 7% and themortgage broker can deliver a 7.5% loan to the lender, the lender may beoffering to pay the mortgage broker a rebate of 2 points or 2% of the loanvalue. For a $100,000 loan, the broker would be paid a $2,000 Yield SpreadPremium by the lender and the borrower would have to pay a higher interest rateover the life of the loan. Always ask your broker if rebate pricing is involvedon your loan; a broker must disclose any rebate they are to receive inconnection with your loan to you. ... [Read More]
California Department of Real Estate: FAQs - Mortgage Loan Brokering in California
A . - As a licensed real estate broker, you may engage in mortgage brokering without any additional license. A real estate broker may engage in a variety of real estate related activities including residential home sales, mortgage brokerage, and property management, among others. You may, however, wish to consult with the Department of Housing and Urban Development to determine their rules regarding real estate sales and the arranging of FHA loans. Additionally, if you represent a buyer or seller in a real estate transaction, and will also be compensated for obtaining the loan for the buyer, Commissioner’s Regulation 2904 requires you to disclose, to all parties in the transaction, the form, amount, and source of the compensation received or expected for the loan. ... [Read More]
California Department of Real Estate: Reference Book Table of Contents
Background, The Economy, The Mortgage Market, Overview of the Loan Process,Details of the Loan Process, Federal and State Disclosure and Notice of Rights,Promissory Notes, Trust Deeds and Mortgages, Junior Trust Deeds and Mortgages,Other Types of Mortgage and Trust Deed Loans, Alternative Financing, Effects ofSecurity, Due on Sale, Lender’s Remedy in Case of Default, Basic Interest RateMathematics, The Tools of Analysis ... History, Mineral, Oil and Gas Brokerage, 1994 - No Separate License Requirements ... [Read More]
California Department of Real Estate: Disclosures in Real PropertyTransactions
Disclosurerequirements are primarily the responsibility of the lender/creditor. RESPAregulates specified disclosures at the time of the loan application, and at orbefore the time of settlement or closing of escrow, and servicing disclosuresafter closing. Effective January 1, 1998, real estate brokers who act asmortgage brokers no longer have to deliver to the borrower a separateCalifornia-mandated mortgage loan disclosure statement in federally related loantransactions where the borrower receives a good faith estimate (GFE) ofsettlement costs as required under RESPA and all disclosures required by theTruth-in-Lending Act and Regulation Z. This is provided that the documents setforth the broker’s real estate license number, contain a clear and conspicuousstatement on the face of the documents stating that the "good faithestimate" does not constitute a loan commitment; and that a special balloonpayment disclosure is included if the loan contains a balloon payment provision. Not ... [Read More]
First Alliance Mortgage Company
The People of The State of California, The State of Arizona, The State of Florida, The Commonwealth of Massachusetts, The People of the State of Illinois, and The New York State Banking Department, Plaintiffs, v. First Alliance Mortgage Company, et al., Defendants; In re: First Alliance Mortgage Company, et al., Debtors; Federal Trade Commission, Plaintiff, v. First Alliance Mortgage Company, et al., Defendants; and Frank and Nicolena Aiello, et al., Plaintiffs, v. First Alliance Mortgage Company, et al., Defendants. ... [Read More]
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