rebuild.org finance news:

Back to Latest News Headlines

Calls to Mortgage Hotline Double

[Jan 20, 2008.]


The crisis in the mortgage industry is taking a toll on telephone lines, if a new report from a non-profit homeownership group is any indication.

The Homeownership Preservation Foundation reports that its HOPE hotline fielded some 143,000 calls in the 4th quarter of the year. That's double the number of the quarter before. It's also 10 times the number recorded in the 1st quarter of 2007.

The non-profit foundation credits the increase to homeowners with adjustable-rate mortgages. The President has urged banks and loan servicers to work with homeowners in an effort to avoid defaults on mortgages. Mortgages numbering in the millions are resetting to higher interest rates. As a result, a number of homeowners are having difficulty making their monthly mortgage payments.

Homeowners are having great trouble selling their homes in today's market. For one thing, lenders have tightened their requirements for home loans, meaning that a number of prospective home buyers are having difficulty obtaining financing. In addition, home prices have been tumbling, meaning that homeowners are having a tough time recouping their investment.

Lenders have also tightened requirements for refinancing, making it more difficult than ever for homeowners to obtain home equity loans. As a result, many homeowners are left in a catch-22 situation.

Of the calls to the housing hotline, 48% were from homeowners with adjustable rate mortgages. The state with the largest percentage of callers was California with 18%, with Ohio and Illinois rounding out the top 3.

The current housing crisis is the worst the country has seen in 16 years. So far, however, the situation has not led to an all-out recession. Officials with the Federal Reserve Board have said they will do everything possible to prevent a recession from occurring. The Fed cut interest rates consistently last year, and more cuts may be on the way in 2008.

Julie Ann Amos
January 20th 2008

Recent News

  • Market Shares of ARMs Fall
    Freddie Mac reports that the total market share of adjustable rate mortgages decreased last year to its lowest point since the year 2003.

  • Profits Fall for Home Sales
    M & T Bank Corporation is reporting that 4th quarter profits fell 70% because of additional losses on home sales. [16th January 2008]

  • Prospects for Recession Still Unclear
    The President of the Federal Reserve Bank of St. Louis says that it's still unclear whether the nation is headed for recession. [15th January 2008]

  • Home Sales Dip in Late Autumn
    The number of pending U.S. home sales dropped slightly in November, according to the National Association of Realtors. The reading declined 2.6% to 87.6 from a revised October index of 89.9.[12th January 2008]

  • Housing Crisis Leads to Drastic Measures
    The nation’s housing crisis is leading some homeowners to take drastic measures in order to alleviate their financial burden. For instance, a couple in western Maryland is selling raffle tickets for their home, which is valued at nearly $400,000. [11th Janurary 2008]

  • Housing Crisis Becomes Election Issue
    The nation’s housing crisis has now emerged as a key issue in the race for the White House. [11th January 2008]

  • Student Loan Fix Among Congressional Accomplishments
    House Speaker Nancy Pelosi can claim a number of achievements to her credit in her initial year as Speaker. [10th January 2008]


news subscription:

Easily subscribe to the rebuild.org news feed.

Read our news without even visiting our site!

Subscribe to our news


news archive:

Rebuild.org monthly news archive