| Checklist: Reasons to Hire an Appraiser
Real estate appraising is the evaluation of property including the land, the dwellings and all the features on it. Although everyone knows it is necessary to appraise real estate to sell it, there are many other reasons people would contact a real estate appraiser. Establish value to buy insurance. Settle insurance claims. Establish market value to sell a home or buy new property. Establish market value to refinance or use for collateral on another loan. Assess current value to get rid of obligation to buy property mortgage insurance. (If value has risen, owner's percentage of equity in property may have increased enough to eliminate the lender's requirement to pay for property mortgage insurance.) Reduce property taxes.
Fannie Faces Trouble From Mortgage Insurers
The private mortgage insurance industry is under severe pressure from rising delinquencies and mounting losses. Now questions are swirling about how a potential blow-up in that sector will affect Fannie Mae (FNM - Cramer's Take - Stockpickr). As the largest purchaser of U.S. mortgages, Fannie Mae provides an essential backstop to the housing market. The government-sponsored entity, like its brother Freddie Mac (FRE - Cramer's Take - Stockpickr), purchases mostly standard 80% loan-to-value mortgages -- those for which the homebuyer puts down 20% equity. Due to a quirk in its charter, Fannie Mae is allowed to purchase mortgages with loan-to-value, or LTV, ratios greater than 80% -- and as high as 100%. Generally, these are allowed only if the homeowner purchases mortgage insurance to cover the amount of the loan above 80%.
Webster Announces Preliminary Fourth Quarter 2007 Earnings Information ...
As of year end 2007, Webster has discontinued all national wholesale mortgage banking activities and, as a result, is closing its wholesale lending offices in Seattle, Washington; Phoenix, Arizona; Cheshire, Connecticut; and Chicago, Illinois. As a result, the company recorded severance and other costs of $3.5 million (pre tax) in the fourth quarter of 2007, primarily for lease terminations and outplacement. Webster's remaining mortgage operations in Cheshire, CT will now focus solely on direct to consumer retail originations. Additionally, the company's home equity lending will be solely direct to consumer originations as Webster strives to build more multi-product relationships with customers in its core franchise. As previously announced, Webster has been exploring strategic alternatives for its insurance operations.
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