you can't do fha loans. they're not doing modification on fha loans, which is big. in line have fha loans. you've got to understand that and understand they're not the end all to end all. they've got issues too as far as customer service. i've seen people complain and say, hey, i thought i was getting this and nothing happened. or, you know, i went down there, sat in line forever and they turned me away. also seeing great stories of people that got help. you've really got to do homework and research to make sure they can help. >> we did homework, research here. this naca has been traveling around, they were in colombia, south carolina, back in march. we'll show you what at least one with of our affiliates reporting, w withis, following story of neil johnson. what they're talking about here is not every company that you might have your loan with, not everybody is willing to work with nacca. how many people do recognize naca as legitimate and willing to work with them to get these loans down? >> i can tell you the lenders i know, naca has relationships or partnerships

. >> what's the down payment for fha loan? 1/2%, they're simply injecting the same moral hazards that led to the catastrophe of the nine months. >> the worst part of the anniversary you may have thought when we bailed out the excesses, it's part after crazy bubble. if you look at fannie and freddie, a lot of losses by the obama mortgage modification plans. if you look at ginnie-- >> is it the obama-bush plans? >> and on the ginnie mae side your subprime market, we realized it was a disaster, moved on to the government programs. >> another part of it, too, you'll remember there were all of these evil, terrible, private sector firms that used a lot of lefrnl -- leverage during the bubble and the fha today has a leverage ratio of 33-1 and it's a reserve fund which is bear-stearns level. >> dlielinquencies on fha, 13% believe is for at least 30 days. now, that is getting into the territory and the taxpayer could be on the hook here if the housing market keeps going down and something to stabilizing in some markets, but if it goes

an fha loan is backed by the federal housing administration, they have a reporting system for delinquents loans. you can contact your lender or broker, if they are fha approved they can tell you yes, you don't have claims against you, so then you can get an fha-backed mortgage. if the end of the year coming up, you have december 1st, for the date for the tax credit for $8,000 if you're a first- time home buyer, haven't purchased in three years and your income level and it's 1% of the value of the property. if your income level doesn't exceed a certain threshold, a lender can look it up for you, you can qualify for the $8,000 tax credit but remember, you have to settle by december 1st. >> you made two and a half people happy. >> two and a half? >> if you have mortgage questions for carl or jay, morningshow@wmar.com. >>> let's go to weather now. >> thank you. it's looking good. we have just a light haze of cloud cover over top of us. allows for plenty of sunshine to come through. 79 degrees now. relative humidity at 72%. winds out of the west at 5 miles an hour. satellite and radar composit

the other thing is she has an fha loan and most people don't know about this, they have a built-in clause that will give you a partial claim on your insurance where they'll actually reduce your payment -- [ indiscernible ] there are options out there but as far as refinancing and you're unemployed, there's nothing out there anymore. >> what i keep hearing is don't wait to do something. don't wait until you're three months behind. >> if there's anything good about this bad situation is more and more people have realized that becoming behind is not really the black mark it was in the past so don't stick your head in the sand and hope things get better. be proactive. talk to the mortgage companies first. call your lender. explain what's going on. just like when you call any one of the utility companies, you have to keep going higher up the chain until you get to a supervisor who has the authority to make those decisions. it's going to take some effort and some work but it's worth it especially if you lost your job. >> if you could look into a crystal ball, how do you think the housing market

you have less than 20% down, if you do that, you want to head to a fha loan, the only place to go for that information is hud.gov, that's where you want to go for information. we taxed out a lot of information, it's a commitment. >> i'm thinking i should hold on and wait and see what's going on before we jump in and take i dive. >> definitely because the word is amy, there may still be another dip in home values up ahead. this remains a buyer's market. thanks amy for joining us. thank you chris, good luck. >>> our spotlight question of the week, a viewer asked me, hey carmen, why are you mad at brokers? these days, wouldn't it be great if saving money happened as automatically as everything else? at bank of america, it practically does. use the bankamericard power rewards visa credit card and earn rewards like cash back with every purchase. cash you can put into savings. or even use to help pay down your credit card balance. it's one of the many ways we make saving money in tough times a whole lot easier. woman: (thinking) so, i stick this bounce bar inside my dryer, and it'll freshen

loans. if you recently made payment, the fha said your payment should have been received and transferred to bac home servicing. you can find answers on our website wbaltv.com. just click on i-team. >> coming up, stomach cancer is one of these toughest -- one of the toughest cancers to treat. as your children have back to school, they may be nervous about their first day. how to get them ready for the upcoming school year. >> president obama talks to the veterans of foreign wars about his two wars in iraq and afghanistan. that story is coming up. >> the city works on an abandoned car problem. >> michael jackson was known for his music but he could be known his music but he could be known for something oh yea, well for 6 months, customers get all three: fios tv, internet and phone for just $79.99 a month. oh, all right, see... you're just moving your fingers, aren't you? i gotta cut my nails. (announcer) now get three amazing fios services for the price of two. tv, internet, and phone for only... for the first 6 months. it all adds up to one incredible deal from fios. call the verizon center

minimum, 3.5% if doing an fha loan. more conventional loans require a greater down payment. theme to this is that banks have learned you've got to have a little money in the game. they know that people are defaulting on really bad loan products they did in 2005. so they expect people to save their money. >> a hire standard out there. you also say shop around for the right real estate agent. what should you be looking for? >> it's very important that you pick someone who fits your personality and your goals. a good realtor is going to really edukate the first-time home buyer before they put nem their car and show houses. you want somebody who will fight on your behalf. >> also you say it's important to do your homework online first. why is it so important, especially if you're looking for your first home? >> the internet, like everything else, has changed real estate forever. you have the opportunity to go out there, because there's such great information, you just need to seek it out. you can find out about schools and neighborhoods. and i think that the other thing that rea

think he mentioned it yesterday, and i guess you probably know the numbers, is the default rate and fha loansis beginning to spike up as well. so some might say that's like our first warning sign that we might have some problems over there that we all should be looking at. and so called red tape, and i understand redtape and what have you. tighten these things up over there before we create a whole new problem. >> i have a legitimate question. >> should be tightening things up in fha despite the fact it may have a dampening effect, right, if you tighten things up it may have a dampening effect on what you guys do. but would that be a prudent thing to do? >> i'm not sure it would be a prudent thing to do at this time because we are trying to absorb as much of those foreclosed properties in the inventory that is in the markets to get things going again. but i believe secretary donovan has just had that fha is doing great, and that they expect to see a profit of 1.6 million this year. spec that is only because we made the market to market rule. >> mr. garrett, i think you are right to ask questi

and an fha or va loan you can do the streamline.y look at credit scores but go a little lower than most fannie mae products and allow you to lower your interest rate. the program is there but think a lot of people that are paying the bills are hearing about the people getting the benefits. it's a little true but if you have good credit you can still benefit today. >> carl delmont is here every monday. if you have a question for us, e-mail carl at morningshow@wmar.com. he'll answer it on monday. thank you for coming in. welcome back from vacation. >> thank you. >>> also welcome back, justin berk. >> thank you very much. 9:47. isn't that nice? she had the wedding and she's welcoming us back. >> sweet. >> aw. >> happy to be together again. happy to be away from the beach? rough currents, few people out there perhaps trying to check out the high surf. still dealing with cloudy skies, a big storm rolled through. dale said earlier there were 10-foot seas over the weekend. still strong rip currents up and down the east coast, tropical mois

if you're doing a traditional mortgage through fha, putting your 3.5% down, loan to value is fine, you if you're doing a cash-back mortgage that's what you're opening yourself into, along with other criteria, but it's a cash-back mortgage reify. if that's not what you'ring into, you don't have to worry about it. next question is from ron in coven ton, ohio. he asking, why do interest rates keep declining when the supply is growing bigger? i love this question, and the answer is concerned of easy. first of all, remember we're going through a crisis. exactly how far out of the crisis is anybody's guess, but there's definitely the safe harbor notion to treasuries. we also have a big quid rho proquo with other countries that recycle their dollars in. the big test will be when we see the light of day when in terms of recoveries. i agree, counterintuitive, but it might not last long. >> rick, i couldn't agree more. americans are starting to take down the treasuries, we can handle the supply. >> it doesn't come up in a lot of discussions, especially the demand side of it. >>> "fast money" fan

the people who are still under the 417 loan amount who get the fannie mae programs, the fha, the va 100%they're still there and kind of okay. well, 11:30 of 2009, the tax credit goes away. you're going to see this little rush in september and october to force people to say you'd better get in right now before the tax credit ends. next winter, i think people are going to be sitting around twiddling their thumbs a little bit in the real estate market. it depends on the area, of course. but it's going to like dry up. the people in the 700, million dollar range are not out there. there's not a lot of buyers. >> they still can't get credit. is that the big issue? >> exactly. >> banks lending at that level because fan i and fred i won't buy jumbo loans. >> not only will fan i and freddie not buy jumbo loans but still looking for 20% down or you're going to face significant costs and other fees. if you look at most mortgage loans originated they still involve very high down payments. i think there's something in between where weigh are now and zero zoun and until credit loosens further, i agree

hera requires that the fha conduct a study on the advances that home loan banks make to the members. that is their core business, loans to members. they are securitized loans. and on the nature of the collateral supporting those advances. in particular, the question that we were asked to investigate is the extent to which the loans that serve as collateral for those advances were made consistent with the interagency guidance on nontraditional mortgage products. today, we are delivering that study to the congress. and i think importantly, issuing it in the federal register and requesting comment on the analysis that we will consider, and then we will, as necessary, update the study. the principal aspects of the study are essentially the following. first, the fhfa and it's predecessor agency, the federal housing finance board, had issued three sets of guidance to home loan banks that were pertinent to this question. first, in 2005, we required the home loan banks to adopt anti-predatory lending policies into specifically established in those policies the acceptability of a collateral t

fha worked with they only -- they would not ensure mortgages in changing neighbor hoods. if a few black men moved in, they wouldn't ensure neighborhoods there. they found one would loan to a black family moving into a white neighborhood, that is the black family who wants if get out activity completely packed black ghetto. so they can't get out with a relar mortgage. they can't buy in on a fair pbice on fai terms and live i a responsible, i mean it's less likely. so white people may not have understand exactly what was going on, but they knew that once black people started moving in, they wld usually guy in on contract at high prices and having to ovcrowd the properties. they also knew that white people knew the area was red lined once blacks moved in. what they understand was that suddenly they can't get -- it's hard for them to sell the property and get a loan to buy there. the whole community is written off. so they have to get out in a way. they have to leave. the quicker they leave the better, because basically you have people going door to door ying blacks are coming. if you want to sell to me now, i will give you $8,000 for your property which is worth $8,000.

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