Lenders To Aid Owners.

Regulators call on lenders to aid owners
By MARCY GORDON, AP Business Writer
Tue Apr 17, 6:59 PM ET


WASHINGTON - Federal bank regulators called on lenders Tuesday to work with distressed borrowers unable to meet payments on high-risk mortgages to help them keep their homes.

The heads of Fannie Mae and Freddie Mac said the mortgage finance giants are developing new types of loans to aid homeowners in avoiding default.

Home-mortgage delinquencies and foreclosures have been surging in recent months, especially for people who took out subprime mortgages — higher-priced loans for people with tarnished credit or low incomes who are considered greater risks. The distress has roiled financial markets and stoked anxiety that it could spill over into the broader economy.

The Federal Reserve and the five other federal agencies that regulate banks, thrifts and credit unions, in a joint statement, encouraged the financial institutions to extend flexible terms to struggling homeowners.

"Prudent workout arrangements that are consistent with safe and sound lending practices are generally in the long-term best interest of both the financial institution and the borrower," the statement said. "Institutions will not face regulatory penalties if they pursue reasonable workout arrangements with borrowers."

The initiatives for subprime loans of government-sponsored Fannie Mae and Freddie Mac, the biggest buyers and guarantors of home mortgages in the country, were disclosed by their chief executives at a hearing by the House Financial Services Committee.

Sheila Bair, chairman of the Federal Deposit Insurance Corp., exhorted mortgage lenders to show flexibility toward borrowers to help staunch a flood of defaults among homeowners with subprime loans.

Many of those borrowers "could avoid foreclosure if they were offered (loans) that allow for affordable mortgage payments," Bair testified. Restructuring their expensive adjustable-rate mortgages "into more affordable products, especially 30-year fixed-rate mortgages, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market."

Most importantly, Bair added, "people would be able to stay in their homes."

Adjustable-rate mortgages, known as ARMs, are especially prevalent in the subprime market. They are considered higher-risk loans because they typically draw borrowers in with an initial low "teaser" interest rate, which can spike upward after the first few years.

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On the Net:

Fannie Mae: http://www.fanniemae.com

Freddie Mac: http://www.freddiemac.com

Federal Deposit Insurance Corp.: http://www.fdic.gov

http://news.yahoo.com/s/ap/20070417/ap_on_bi_ge/risky_mortgages

AIA 150th Anniversary

PHOTO: WESTERN PENNSYLVANIA CONSERVANCY

To celebrate their 150th anniversary, the American Institute of Architects put together a list of 150 favorite buildings of Americans. From that list CNNMoney.com pulled the top 10 buildings designed as family homes, the most admired American masterpieces of residential architecture.

1. Vanderbilt
Location: Biltmore, N.C.
Architect: Richard Morris Hunt
Year Built: 1895
Built for: George Washington Vanderbilt

2. Monticello
Location: Charlottesville, Va.
Architect: Richard Morris Hunt
Year Built: 1808
Built for: Thomas Jefferson

3. Fallingwater
Location: Bear Run, Pa.
Architect: Frank Lloyd Wright
Year Built: 1935
Built for: Edgar J. Kaufmann, a department store mogul

4. Taliesin
Location: Spring Green, Wisc.
Architect: Frank Lloyd Wright
Year Built: 1911, rebuilt 1925
Built for: Frank Lloyd Wright


5. Hearst Castle
Location: San Simeon, Calif.
Architect: Julia Morgan
Year Built: 1947
Built for: William Randolph Hearst

6. Gamble House
Location: Pasadena, Calif.
Architect: Greene and Greene
Year Built: 1908
Built for: David B. Gamble of Procter & Gamble


7. Glessner House
Location: Chicago
Architect:
Henry Hobson Richardson
Year Built: 1887
Built for: John J. Glessner


8. Dana-Thomas House
Location: Springfield, Ill.
Architect:
Frank Lloyd Wright
Year Built: 1904
Built for: Susan Lawrence Dana, an heiress


9. Taliesin West
Location: Scottsdale, Ariz.
Architect:
Frank Lloyd Wright
Year Built: 1937 - 1959
Built for: Frank Lloyd Wright


10. Douglas House
Location: Harbor Springs, Mich.
Architect: Richard Meier
Year Built: 1973
Built for: James E. Douglas, a trucking company owner

http://realestate.aol.com/gallery/most-loved-homes

Luxury Real Estate Special Report

Connecticut
ZIP code: 06831
Town: Greenwich
Overall rank*: 1
Zip Code Median Price(2006:Q2): $2,983,000
5-Yr. Historical Change** (2001:Q3 to 2006:Q3): 49.3%
Metro Area/Division: Bridgeport-Stamford-Norwalk, Conn.


California
ZIP code: 92661
Town: Newport Beach
Overall rank: 2
Zip Code Median Price (2006:Q2): $2,500,000
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 132.2%
Metro Area/Division: Santa Ana-Anaheim-Irvine, Calif.


Arizona
ZIP code: 85253
Town: Paradise Valley
Overall rank: 9
Zip Code Median Price (2006:Q2): $1,850,000
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 100.4%
Metro Area/Division: Phoenix-Mesa-Scottsdale, Ariz.


Maryland
ZIP code: 20815
Town: Chevy Chase
Overall rank: 83
Zip Code Median Price (2006:Q2): $1,043,000
5-Yr. Historical Change(2001:Q3 to 2006:Q3): 94.8%
Metro Area/Division: Bethesda-Gaithersburg-Frederick, Md.


New Jersey
ZIP code: 08202
Town: Avalon
Overall rank: 14
Zip Code Median Price(2006:Q2): $1,687,500
5-Yr. Historical Change(2001:Q3 to 2006:Q3): 125.7%
Metro Area/Division: Ocean City, N.J.

Massachusetts
ZIP code: 02138
Town: Cambridge
Overall rank: 34
Zip Code Median Price (2006:Q2): $1,395,500
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 22.4%
Metro Area/Division: Cambridge-Newton-Framingham, Mass.


New York
ZIP code: 11545
Town: Glen Head
Overall rank: 57
Zip Code Median Price (2006:Q2): $1,150,000
5-Yr. Historical Change(2001:Q3 to 2006:Q3): 67.2%
Metro Area/Division: Nassau-Suffolk, N.Y.


Florida
ZIP code: 33036
Town: Islamorada
Overall rank: 58
Zip Code Median Price (2006:Q2): $1,150,000
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 204.3%
Overall rank: 58
Metro Area/Division: Key West-Marathon, Fla.

Illinois
ZIP code: 60521
Town: Hinsdale
Overall rank: 121
Zip Code Median Price(2006:Q2): $950,000
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 48.4%
Metro Area/Division: Chicago-Naperville-Joliet, Ill.


Washington
ZIP code: 98004
Town: Bellevue
Overall rank: 124
Zip Code Median Price(2006:Q2): $950,000
5-Yr. Historical Change(2001:Q3 to 2006:Q3): 83.9%
Metro Area/Division: Seattle-Bellevue-Everett, Wash.


North Carolina
ZIP code: 28207
Town: Charlotte
Overall rank: 168
Zip Code Median Price (2006:Q2): $879,000
5-Yr. Historical Change (2001:Q3 to 2006:Q3): 47.1%
Metro Area/Division: Charlotte-Gastonia-Concord, N.C.-S.C.

Source: Fiserv Lending Solutions