| 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.
Sacramentan guilty of bank fraud, money laundering
A 25-year-old Sacramento man pleaded guilty Tuesday to bank fraud and money laundering in federal court in Sacramento. Sennett H. Swift defrauded two homeowners and their lenders by offering refinance loans with interest rate caps and promises of refunds for early payment penalties when he knew those terms were not real. Swift wanted to get the substantial broker commissions, said Matthew Stegman, the assistant U.S. Attorney prosecuting Swift. It turns out at least one of the homeowners wasn't eligible for the loan program. Swift also submitted a forged loan application. Sentencing is scheduled before Judge Lawrence Karlton on March 25. The case was investigated by the Federal Bureau of Investigations and the Internal Revenue Service.
Centro drags Aust market lower
The plummeting share price of struggling property group Centro has dragged down the Australian share market, despite a good lead from Wall Street and firmer commodity prices. The domestic market opened strongly, but the persistent credit problems abroad weighed on the market throughout the day. The All Ordinaries Index erased earlier gains to close 21 points lower to 6,019 and the ASX 200 shed 20 points to 5,960. Centro Properties has been battling to refinance $3.9 billion worth of debt because of the lingering subprime mortgage problems in the United States. Its shares closed 30 per cent lower to 60 cents. The company released a statement today saying it has had extensive interest from Australian and international investors.
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