Mortgage Informer

The number of Chicago-area homeowners who have received permanent mortgage loan modifications under the federal Home Affordable Modification Program increased by 50% in February, but the pace at which temporary modifications are being granted appears to be slowing.

The shift is by design. For the past few months, the Obama administration has pressured mortgage servicers to speed up the rate at which they are making temporary HAMP modifications permanent. It also has altered the guidelines and wants servicers to grant trial modifications based on full documentation, rather than a borrower’s stated income, to make it more likely that borrowers can have their temporary loan terms made permanent.

After rising steadily just before the end of last year in what some feared was the start of a continuing upward trend, interest rates on home loans have dropped for three consecutive weeks in January, according to reports from both Freddie Mac and Bankrate Thursday.

For the week ending January 21, 2010, Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 4.99 percent (0.7 point), down from the previous week when it was 5.06 percent. Last year at this time, the 30-year FRM averaged 5.12 percent in the GSE’s study.

Bahrain-based BMI Bank has unveiled its enhanced mortgage loan products designed to serve the needs of all retail customers with property finance needs.

It comprises four new mortgage loan products – own residence, investment purpose, home equity release and first time buyers.

The company has also announced its new pre-approval process, committing to provide an answer on mortgage loan commitments and conditions within a maximum of 24 hours to customers who provide their CPR and evidence of income.