Today is Leap Day. It’s that day every four years when we get an extra day added to the year.

Today is Leap Day. It’s that day every four years when we get an extra day added to the year.

Until now, Freddie Mac and Fannie Mae, two government chartered mortgage lenders, have had caps on the number of securities they could own. Now that is changing. The New York Times reports that the limits have been removed:

Federal regulators for Fannie Mae and Freddie Mac,
the biggest buyers of American home mortgages, will remove limits on
the amount of loans and securities the companies can own, a step that
could help bolster the weakening housing market.

This will allow the two mortgage lenders the ability to buy up more risky debt from other lending institutions that may be facing trouble. It is worth noting that while Fannie Mae and Freddie Mac are government chartered, they are also publicly traded and companies meant to make a profit.

Do you think this will help stem the tide of the mortgage crisis and help the economy?

The numbers for January foreclosures are in, and the news is that they are trending upward. According to Inman News, January foreclosures are up 57 percent over last year, and up 8 percent since December. These rising foreclosures would seem to indicate that well-meaning government programs are not working at stemming the tide. Also contributing may the number of people that now feel that foreclosure is a viable financial planning option. Inman reports on the implications of the January foreclosures numbers:

"January’s foreclosure numbers demonstrate
that foreclosure activity is continuing on its upward trend,
substantially increasing from a year ago in many states," said James J.
Saccacio, RealtyTrac CEO, in a statement.

The numbers for January foreclosures are in, and the news is that they are trending upward. According to Inman News, January foreclosures are up 57 percent over last year, and up 8 percent since December. These rising foreclosures would seem to indicate that well-meaning government programs are not working at stemming the tide. Also contributing may the number of people that now feel that foreclosure is a viable financial planning option. Inman reports on the implications of the January foreclosures numbers:

"January’s foreclosure numbers demonstrate
that foreclosure activity is continuing on its upward trend,
substantially increasing from a year ago in many states," said James J.
Saccacio, RealtyTrac CEO, in a statement.

Efforts continue to attempt to stem the tide of expected foreclosures in the coming year and a half to two years. Many say that such programs as Project Lifeline will be largely insufficient.

One of the efforts to kick foreclosure prevention into high gear is a bill that gives bankruptcy judges the ability to force changes to mortgage loan terms. It is scheduled for a vote in the Senate tomorrow.

While many consumer advocate groups applaud the move, insisting that it will allow bankruptcy judges the same powers they have to modify car and credit card loans, others feel that the move would only increase the costs of home mortgage loans, reports Inman News:

Allowing judges to "cram down" loan
modifications over the objections of lenders could raise interest rates
on mortgage loans by 1.5 percent or more, industry groups fighting the
proposed changes to the bankruptcy code say.

What do you think? Would including mortgage loan terms in bankruptcy proceedings help or hurt the economy?

Shakadoo is celebrating its first birthday today, and my, what a year it’s been!

I feel proud to be a member of Shakadoo, writing about mortgage loan news and occasionally sharing tips and advice. And it’s been great to watch the Shak grow and expand to include new channels, and to even win awards!

So, Happy Birthday, Shakadoo! And many happy returns.

Happy Friday! Today’s Friday Fun Video is about financial priorities. A rather funny take, I think.

Happy Friday! Today’s Friday Fun Video is about financial priorities. A rather funny take, I think.

Now may be a good time to buy a home. The busy season is about to start in most real estate markets, and this means that you should get in on the action before prices head up, however slightly.

Besides, it’s a buyer’s market right now. With low mortgage interest rates, lower home prices, and homeowners eager to sell, it is possible to find a few good deals. And with the mortgage industry still scrambling to draw in new business, you might find even better deals on your home mortgage loan.