Mortgages

Starting in June, mortgage broker Jeff Appel will co-host a new hour-long program called NY Residential TV.

Airing Sundays at 9 a.m. on CW11, the show teaches New Yorkers about "preparing appetizers for open houses," real estate investment, and decorating.

In this week's Sit-Down, The Observer asked Mr. Appel's old boss, mortgage queen Melissa Cohn, about their relationship. It's safe to say she probably won't be preparing any cocktail weenies for the cameras:  read more »

Senator John McCain on the government's role in the unfolding foreclosure crisis:

"It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers... Some Americans bought homes they couldn’t afford, betting that rising prices would make it easier to refinance later at more affordable rates.”

The Bush administration's top economic people, including Treasury Secretary Henry Paulson, are expected today to propose new lending rules that are suppose to prevent a repeat of the current credit crisis, according to the Wall Street Journal.

Chief among the proposals will be those dealing with mortgage lenders and brokers. Mr. Paulson said that he would propose stronger federal and state oversight of mortgage brokers and lenders; and nationwide licensing for brokers.

The Wall Street Journal this morning goes to town on mortgage coverage. Absolutely none of it is good news for borrowers.

New data from NYU's Furman Center for Real Estate and Urban Policy shows (PDF) that the rate of new subprime mortgages in New York City declined from 2005 through 2006. The rate of subprime lending in the five boroughs dropped from 22.9 percent of conventional mortgages issued by subprime lenders to 19.8 percent in 2006.

But here's the bad news in two parts:

First, this annual decline wasn't as sharp as in other big cities, like Boston, Los Angeles and Chicago. (Washington, D.C., saw an increase.)

Second, the highest rates of subprime lending in the city are in poorer neighborhoods like East Flatbush, Brownsville, East New York and Bedford-Stuyvesant.

In fact, Manhattan continued to have virtually no subprime mortgages in 2006. The Observer earlier this year explained why the borough usually doesn't.

First he loses his TV show. Now this.

Crain's reports this morning (subscription required) that Trump Mortgage, launched with much fanfare in several states less than two years ago, has gone out of business. It wasn't the Donald's fault, however.  read more »

A Wall Street Journal piece this morning asks the increasingly relevant question: Is my mortgage broker really working for me?

New Yorkers, especially, should be asking that. State Attorney General Andrew Cuomo earlier this month subpoenaed information from Manhattan appraiser Mitchell Maxwell & Jackson and from mortgage broker Manhattan Mortgage Company, one of the city's top originators of mortgages. Mr. Cuomo's office then, shortly after these initial subpoenaes, extended its dragnet to include the real-estate appraisal unit of First American Corp., another appraiser that does work in the city.

The information sought? Whether or not mortgage brokers have been pressuring appraisers to inflate or otherwise change property values.

In a city where such values have jumped this decade, the pressure is understandably on for every side of a home sale--buyer, seller, broker, mortgage broker, bank. Each side has vested financial interests in a closed deal, and buyers who trust their mortgage brokers to work for them (rather than realizing up front that the mortgage broker works for him or herself) engage in a fickle lunacy.

"The mortgage broker does not represent the borrower," one mortgage broker in Colorado told the Journal. "We sell access to money."

Borrower, beware, indeed.  read more »