| Countrywide Home Loans Partners with RealEC Technologies to Deliver ...
SANTA ANA, Calif., Oct. 10 /PRNewswire-FirstCall/ -- RealEC Technologies Inc., the leading provider of collaborative network solutions to the mortgage industry, today announced it has entered into an agreement with Countrywide Home Loans, Inc., a division of Countrywide Financial Corporation, allowing Countrywide to use RealEC's Web-based closing platform for mortgage refinance and home equity lending transactions. Through the new agreement, Countrywide has licensed RealEC's Web-enabled closing service and has integrated the service into its TS2 settlement services platform, which was built using the RealEC Collaborative Network Platform. "RealEC is extremely excited, once again, to partner with Countrywide Home Loans to bring another innovative new industry utility to market," said Dan Sogorka, president of RealEC Technologies.
Rate cut sparks rush to refinance mortgages
This is a great time for customers to achieve homeownership in a way that is sustainable for the long term." West Des Moines-based Wells Fargo Home Mortgage is part of Wells Fargo & Co., the nation's largest mortgage lender and the largest private employer in the Des Moines area.
In general, a mortgage is deemed "refinanceable" if it is 0.40 percentage point above current average mortgage rates. And the recent drops in mortgage rates could lead to the refinancing of as many as 7 million mortgages, or more than 70 percent of U.S. mortgages, according to estimates by Tony Crescenzi, a fixed-income analyst at Miller Tabak. David Motley, president of Fort Worth, Texas-based Colonial National Mortgage, which originates loans in all 50 states, is expecting an even larger applications surge this week and beyond.
Savings and loan crisis cost taxpayers too much
Economic bubbles that burst get government bailouts. That's historically the way it's worked. The need to stabilize the farm banking system was given as the reason for the mid-80's farm aid. The savings and loan crisis cost taxpayers far more than deposit insurance could cover. Today, it's the Adjustable Rate Home Mortgage bubble that has burst and the Bush administration is attempting to cushion the blow with a plan to help borrowers refinance. 1.8 million ARMs reset to higher rates this year. The Bush administration worries that as many as 1.2 million of these are at risk of foreclosure without help. As was the case with the 1980's farm crisis, the government's plan doesn't bail out banks directly. The mortgage industry will lose $150-400 billion as a result of subprime mortgage losses.
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