Mortgage activity picks up on falling interest rates

9/30/2013 3:41:52 PM

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With mortgage rates changing course and declining recently, mortgage application activity has perked up, according to the Mortgage Bankers Association. Data from the MBA show its Market Composite Index, which tracks mortgage application volume, increased 5.5 percent on a seasonally adjusted basis during the week ending September 20 when compared to the previous week.

"On an unadjusted basis, the Index increased 5 percent compared with the previous week," the MBA stated. "The Refinance Index increased 5 percent from the previous week. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 7 percent higher than the same week one year ago. The Purchase Index was at its highest level since July 2013."

The biggest news concerns refinancing activity. As mortgage rates began rising steadily due to speculation that the Federal Reserve would begin tapering its monthly bond buying program, refinance activity fell sharply. However, with the Fed's announcement that it would continue its bond-buying program, rates decreased and refinancing picked back up.

Current numbers represent the best mortgage refinance rates consumers have seen in some time, and provide another opportunity for current homeowners to save on their monthly mortgage payments. Whether through an FHA streamline refinance or a VA home loan refinance, eligible borrowers have a number of options when it comes to saving.

While rates are on the decline, it's unclear how long current mortgage refinance rates will last, meaning it's likely that mortgage application volume will continue to increase as borrowers enter the market while the chance for savings lasts.

Contact The Federal Savings Bank, a veteran owned bank, to explore refinancing options.

Trends in mortgage fraud change based on market

9/27/2013 5:47:40 PM

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Mortgage fraud has always been an issue within the lending industry, but recent data shows that trends are changing. According to CoreLogic, mortgage fraud concerning property information fell during the second quarter of 2013 while fraud involving income information increased.

According to CoreLogic's Mortgage Fraud Report, application fraud was down overall during the second quarter, with property-related fraud decreasing by one-fifth since the same time last year. The rise in income-related fraud over property information is attributed to rising home prices, which has made the need to lie about property worth unnecessary.

"As the housing market and economy have healed over the last 18 months, a transition away from property-related to income-related application fraud has occurred," said Mark Fleming, chief economist at CoreLogic. "Rising prices and a healing housing market make property-related mortgage application fraud less likely, but a higher level of scrutiny on an individuals' ability to pay increases the propensity to attempt income-related fraud."

Figures show that nearly 19,700 mortgage applications filed during the second quarter had some risk of fraud, down 0.7 percent from the previous year. However, even while mortgage application fraud is decreasing, the rising price of homes has resulted in a higher dollar amount concerning fraud.

"While the propensity toward application fraud risk has declined based on our index, as the housing market recovers, the volume of mortgage applications is rising and increasing the total amount of fraudulent mortgage loan application dollars," Fleming said.

Much of the income-based fraud can be attributed to mortgage borrowers hoping to qualify for loans that may feature more stringent restrictions by lying about their finances. However, there are many loan options available to eligible borrowers that feature more lenient qualifying standards. FHA mortgages, for instance, are particularly popular with first-time homebuyers who may have less established credit histories. VA loans also tend to be easier to obtain for former servicemembers and their spouses.

Contact The Federal Savings Bank to discuss different loan options, as well as how to qualify for them.

Federal government looks to spread awareness of refinancing options

9/27/2013 10:03:42 AM

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With refinance activity on the decline, the Federal Housing Finance Agency is doing all it can to spread awareness about the Home Affordable Refinance Program.

However, there's more to the FHFA's awareness campaign than just spurring on mortgage activity. The government agency has said that too many Americans who are eligible to benefit from the program have not done so due to a lack of knowledge regarding HARP.

"There's a perception among some that you've got to be delinquent in order to have some government-sponsored program that can help you," FHFA Acting Director Edward J. DeMarco told Bloomberg. "What we want to do is correct that misperception."

In addition to a new website, the FHFA has teamed up with Mike Aubrey of the HGTV program Power Broker in order to create new ads for HARP.

"These are people who are making payments on their houses, and I can assure you they will get better deals even with rates rising," Aubrey told Bloomberg. "Is there going to be some point of no return? Absolutely, and that's one of the reasons there's a sense of urgency to do it right now."

According to DeMarco, as many as 2 million Americans with mortgages backed by Fannie Mae and Freddie Mac may be eligible to refinance through HARP, making it easier to meet financial obligations each month. The question is why so many of these mortgage borrowers haven't already.

"Some folks may have tried before and found themselves not eligible and may not have realized that the eligibility standards have changed," DeMarco told Bloomberg.

However, with mortgage rates once again on the decline following the Federal Reserve's announcement that it would continue its bond buying program, the chance for homeowners to save on a refinance is once again at the forefront of many people's minds.

HARP not the only option
In addition to HARP, there are other special refinance programs that homeowners can take advantage of. One such program is an FHA streamline refinance mortgage. Homeowners who have existing FHA mortgages can refinance without having to go through the home appraisal process, allowing them to use their original purchase price as their home's current value, regardless of what it's worth today. This can be a great benefit for underwater mortgage borrowers.

Another great option for eligible borrowers is the VA streamline refinance loan. This allows current VA home loan borrowers to refinance with little or no out-of-pocket expenses. Like with the FHA streamline refinance, no appraisal is necessary. Additionally, VA loan holders do not have to provide income or employment verification, and a credit check is waived as well. And since all costs can be rolled into the new mortgage, eligible borrowers do not have to worry about paying for upfront costs.

In this way, servicemembers and their spouses can lower their mortgage rates, as well as change the terms of their existing home loan, with as little headache as possible.

Contact The Federal Savings Bank, a veteran owned bank,  to explore mortgage refinancing options.

Home prices rising, but at slower pace

9/26/2013 3:24:32 PM

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More data from the Federal Housing Finance Agency and S&P/Case-Shiller supports what market observers have known for some time: Home prices are steadily rising.

According to the FHFA, its House Price Index increased 1 percent on a seasonally adjusted basis during July. Meanwhile, the 10-city and 20-city composites from S&P/Case-Shiller showed increases of 1.9 percent and 1.8 percent, respectively, during the same time period.

"Home price gains are holding their 12 percent annual rate of gain established by the two composite indices in April," said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. "The Southwest continues to lead the housing recovery. Las Vegas home prices are up 27.5 percent year-over-year; in California, San Francisco, Los Angeles and San Diego are up 24.8, 20.8 and 20.4 percent, respectively. However, all remain far below their peak levels."

While increases in home prices spells good news for current homeowners, as it results in growing equity, more expensive homes could be discouraging to prospective homebuyers, particularly first-time buyers looking to enter the market. However, according to Blitzer, rises in home prices are beginning to slow.

"Since April 2013, all 20 cities are up month to month; however, the monthly rates of price gains have declined," he said. "More cities are experiencing slow gains each month than the previous month, suggesting that the rate of increase may have peaked."

Regardless of the rise in home prices, there are still affordable financing options for first-time homebuyers. FHA mortgages have been particularly popular with this demographic due to their low down payment requirements and less-strict qualifying standards.

Contact The Federal Savings Bank to discuss affordable home loan options for first-time homebuyers.

Cities across America utilize veteran housing program

9/25/2013 3:30:10 PM

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Veterans across the country struggle with housing needs, but a new federal grant is set to help ease this burden in Eaton and Barry counties in Michigan. The U.S. Veteran Affairs Office awarded a $171,380 grant to the Eaton County Housing Services, which will allow the non-profit organization to find and help nearly 100 veterans within the two counties.

According to the Lansing State Journal, Eaton County Housing Services is only one of 12 Michigan organizations receiving grants this year as part of the Supportive Services for Veteran Families program.

As highlighted by Denise Dunn, director of Eaton County Housing Services, one issue is getting help to those who qualify for it but may not identify as veterans. 

"We know there are veterans out there who are struggling but they don't self identify and I don't always have the resources to go out looking for them," Dunn told the Journal.

Meanwhile, Mel Burke, who will serve as the case manager and help find veterans in need, said that this may come down to an issue of pride. Burke, who is himself a 21-year veteran of the U.S. Army, hopes to help struggling veterans understand that help is available, and there is nothing wrong with taking it.

"I think primarily it's a pride issue," Burke told the Journal. "These individuals are proud of what they've done but may be ashamed of the circumstances they come home to. In the beginning education is going to be our biggest obstacle."

Despite these challenges, Dunn told the Journal she is confident in assisting every last veteran the grant can help and plans on applying for the grant next year, as well.

"If we can find 100 of them this year, I'm sure we can find 100 of them next year," she said. "They put their life on the line for us. This is one small thing we can do for them."

Similar programs abound across the nation
Michigan is hardly the only U.S. state reaching out to former servicemembers when it comes to housing needs.

In Montana, the Volunteers of America Northern Rockies are aiming to help veterans and their families end homelessness or avoid it altogether. The organization is taking advantage of the Supportive Services for Veteran Families program, the same program that awarded grants in Michigan.

Scott Powers, director of the program in Helena and Billings, told the Independent Record that this outreach program canhelp build relationships with local landlords, as well as help former servicemembers overcome obstacles like poor credit histories.

These programs highlight the U.S. Department of Veterans Affairs' focus on combating homelessness among veterans, a problem VA Secretary General Eric Shinseki said he wants eradicated by 2015.

Contact The Federal Savings Bank, a veteran owned bank, to discuss affordable housing options for eligible veterans.

Home sales rise along with inventory

9/24/2013 2:23:44 PM

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According to data from the National Mortgage Licensing System, the number of companies licensed through the organization decreased 2.1 percentduring the second quarter of 2013 on a year-over-year basis. This would seem to indicate a decline in the number of mortgage lenders currently on the market, except data also shows that the number of individuals licensed as loan originators actually increased 8 percent during this same time period.

In addition to the 15,791 companies licensed through the NMLS, an additional 10,669 financial institutions are registered by one or more federal agencies. This also marks a decrease from the previous quarter. Meanwhile, in addition to the 119,571 individuals registered through the NMLS, one or more federal agencies registers 400,919 individuals, an increase of 3.4 percent from the previous year.

These figures suggest that while the number of separate institutions offering mortgage loans may have declined, the remaining institutions are picking up the slack by hiring more individual loan officers.

An increase in loan officers is likely a necessary step, as data from the National Association of Realtors showed that U.S. home resales reached a six-and-a-half year high during August.

The number of existing home sales increased 1.7 percent during this timer period, reaching an annualized rate of 5.48 million units sold during the month of August, the highest level since February 2007.

"Rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions," said Lawrence Yun, chief economist at the NAR.

While some homebuyers may be worried that increased sales will only take away from the limited inventory and make it more difficult to find an affordable property, data from the U.S. Department of Commerce shows that housing starts were also on the rise during August. Single-family home starts increased 7 percent during this time period, reaching an annual rate of 628,000 units, the highest level in six months.

A separate report from Trulia shows that on a seasonally adjusted basis, housing inventory has increased for seven consecutive months, reaching 2.07 million units in August. This marked a 5.1 percent increase from the beginning of the year.

For consumers considering a new home purchase, increases in inventory and housing starts is great news. Together with affordable loan options, such as FHA mortgages, there remain plenty of ways for buyers of all stripes to enter the market and save money.

Contact The Federal Savings Bank, a veteran owned bank, to explore affordable home financing options.

Home Depot helps with housing through veteran program

9/25/2013 1:27:12 PM

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It seems like home makeover shows have been all the rage for some time, but one Minneapolis man was able to get his home the repairs it needed without signing up to be on national television. According to Insight News, Nathaniel Hull, a Vietnam veteran, received aid from The Home Depot Foundation and the Twin Cities Habitat for Humanity on Sept. 11 in the form of renovations to his home.

Together with volunteers from these organizations, Hull was able to install new windows, fans, air-conditioning units and a wheelchair ramp. Renovations also included a more accessible bathroom, a waterproofed basement and general repairs to the front porch.

Offering financial and physical help, this aid was part of The Home Depot Foundation's third annual Celebration of Service campaign, a yearly initiative between Sept. 11 and Veterans Day intended to help veterans and their families. The foundation has invested nearly half a million dollars in the Minneapolis area alone to assist with home and facility renovations for veterans since 2011, according to Insight News. Nationwide, the program is committed to spending $80 million to help with veteran housing needs.

Giving female military veterans the help they need
While The Home Depot Foundation is dedicated to helping all military veterans, the Celebration of Service campaign also shines a spotlight on the needs of women.

"Statistics also show that the fastest growing group within the veteran community is women," the Foundation stated. "Unfortunately, women veterans are also the fastest growing segment of the homeless population, and are twice as likely to be homeless as their civilian counterparts."

In conjunction with the Habitat for Humanity of Greater L.A. and Volunteers of America Support for Harbor Area Women, the Celebration of Service Campaign recently gave aid to Lidia Perez, a single mother and Navy veteran of Iraq and Afghanistan living in Los Angeles. Renovations included painting the interior and exterior of the home, installing carpet in the bedrooms, repairing plumbing, landscaping and installing fencing in the front and back yards.

"We feel very fortunate to meet these brave women veterans," the Foundation stated. "Not only are we proud to have the opportunity to refurbish the homes and facilities where they live and receive services, but also to say 'thank you' for their many sacrifices."

Contact The Federal Savings Bank, a veteran owned bank, to discuss affordable housing options for eligible veterans.

Home inventory rises, mortgage rates fall

9/23/2013 4:41:15 PM

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The limited U.S. housing inventory is starting to grow, according to The Wall Street Journal. Citing decreasing home sales and new buyers putting their properties on the market, the Journal makes the case that it's becoming easier for interested homebuyers to find an affordable property.

Due in part to limited inventory, home prices have risen considerably over the last year. This had led to greater equity, which in turn has given current homeowners the push they need to put their homes on the market.

"Nobody wants to sell right after prices bottomed, but it's been 18 months since prices bottomed and more homeowners are feeling as if they've waited long enough," Jed Kolko, chief economist at Trulia, told the source.

Even better, the homes that are entering the market now are not the distressed properties that flooded the market during the housing downturn, the Journal reported.

Decreasing mortgage rates add to affordability
More homes on the market will make it easier for buyers to find an affordable deal, as greater inventory means less competition. However, interest rates are also adding to recent gains in affordability, as news that the Fed will not be tapering its bond-buying program has led to drops in rates that were on the rise.

According to data from Freddie Mac, a 30-year fixed-rate mortgage averaged 4.50 percent during the week ending September 19, down from 4.57 percent the week before.

"Mortgage rates drifted downwards this week amid signs of a weakening economic recovery," said Frank Nothaft, vice president and chief economist at Freddie Mac. "This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program at its September 12th and 13th monetary policy committee meeting. It also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."

Whether seeking financing for a new home purchase or a mortgage refinance, lower mortgage rates spell good news for homebuyers. By locking in an affordable rate now, borrowers can ensure financing while avoiding the higher costs that will come with inevitable rate increases in the future.

Contact The Federal Savings Bank to discuss home financing options, as well as special programs available for U.S. veterans.

Mortgage applications rebound following news of success in 2012

9/23/2013 1:26:34 PM

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Data from the Federal Financial Institutions Examination Council shows that 2012 was a banner year for mortgage activity. Of the banks, savings associations, credit unions and mortgage companies covered in the data,15.3 million home loan applications were reported throughout 2012.

Of this number, 9.8 million resulted in loan originations. This marked an increase of 38 percent from 2011. This is partly attributed to a 54 percent increase in mortgage refinancing. The number of VA home loans also increased during this time period, rising 11 percent from 2011.

Meanwhile, conventional loans accounted for 85 percent of refinancing during 2012, while FHA and VA loans accounted for 9 percent and 6 percent, respectively. The number of conventional loans used for refinancing rose 51 percent during 2012 on a year-over-year basis, while FHA and VA loans used for refinancing increased 78 percent and 90 percent during the same time period.

While mortgage activity has declined in recent months due to rising interest rates, figures from the Mortgage Bankers Association show that there was a marked improvement during the week ending Sept. 13 when compared to the week ending Sept. 6. The MBA reported that its Market Composite Index, which measures mortgage application volume, increased 11.2 percent on a seasonally adjusted basis during the week ending on Sept. 13. This was led by an 18 percent increase in refinancing, a major change from the 20 percent decline in refinancing applications posted the previous week.

Borrowers of all stripes still have the chance to lower their monthly mortgage payments while interest rates remain historically low. Whether an FHA or VA loan refinance, replacing an existing loan with a new one can have many benefits for borrowers.

Contact The Federal Savings Bank, a veteran owned bank, to find out more about refinancing.

Less investor demand spells good news for first-time homebuyers

9/23/2013 11:54:32 AM

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Reduced housing demand from real estate investors is making it easier for first-time homebuyers to compete, according to a report from Reuters. The news source reported that due to rising home prices, some investors are beginning to slow their momentum.

"Investors helped stabilize a housing market that was in free-fall and they did so by taking advantage of fire-sale home prices," Michael Feroli, chief U.S. economist at JPMorgan Chase & Co, told Reuters. "Now you see few fewer bargain prices in the market and that's a reason investor demand is coming off its peak."

According to the Campbell/Inside Mortgage Finance survey, investors accounted for nearly 20 percent of homes purchased during June 2013, down 23 percent from February. This also marked the lowest level of investor activity since September 2012. Meanwhile, a separate survey from ORC International shows that 48 percent of investors plan to slow down on home purchases over the next year. This is an increase of 18 percent from 10 months prior.

While real estate investors helped stabilize the troubled housing market, the increase in demand has also made it more difficult for first-time homebuyers to get a foot in the door. High demand has led to increased home prices, and along with rises in mortgage rates, affordability has become an issue for first-time buyers.

However, with investor interest beginning to wane, reduced competition will likely make it much easier for first-time homebuyers to enter the market. Additionally, specialized loan programs are helping make the process more affordable.

For instance, FHA mortgages not only feature competitive interest rates, but they can have down payment requirements as low as 3.5 percent. Additionally, qualifying for these loans may be easier for buyers who have less than perfect credit, or less established credit histories, making them particularly popular with first-timers.

Regardless, the market for first-time homebuyers has remained strong despite competition from investors.

"We do not share the concern about weakness in housing demand going forward because we are not convinced that the data indicates a material decline in first-time buyer participation," said researchers Jessica Dill and Ellyn Terry, two economists from the Atlanta Federal Reserve.

However, less competition is still a boon for new buyers struggling to find and afford the home of their dreams.

Contact The Federal Savings Bank to find out more about FHA mortgages and other home financing options.

Rising rates halt following Fed announcement

9/20/2013 3:17:52 PM

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Rising mortgage rates have caused a drop in refinance activity, which in turn has led lenders to loosen their qualifying standards in regards to credit, according to Ellie Mae.

Data from the company's August Origination Insight Report shows that refinancing activity has fallen by 15 percentage points since May. Forty-three percent of closed loans were for refinancing during August, down from 47 percent in July and 58 percent in April.

This has led mortgage lenders to reduce the credit score level necessary to qualify for home loans. The average FICO score for closed loans decreased to 734 in August, according to Ellie Mae, the lowest level since the organization began tracking the numbers.

However, fears of mortgage rates rising further have been put on the backburner since the surprising news that the Federal Reserve will continue with its bond-buying program. As reported by The Los Angeles Times, market analysts expected the Fed to announce that it would begin tapering its monthly purchases of $85 billion in bonds. However, while the Fed highlighted economic improvements, its stated that there has not been enough evidence to warrant the end of the program.

"Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy," the Federal Reserve said in a statement. "However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. Accordingly, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month."

This news has had an immediate effect, with the likelihood of rates rising as steadily as before being reduced.

"Mortgage rates drifted downwards this week amid signs of a weakening economic recovery," said Frank Nothaft, vice president and chief economist at Fredie Mac, in regards to mortgage rates for the week ending Sept. 19. "This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program at its September 12th and 13th monetary policy committee meeting. It also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."

Continued bond-buying good news for homebuyers
With the Federal Reserve's announcement likely to put the brakes on rising mortgage rates, at least temporarily, it's a better time than ever for prospective homebuyers to enter the market. Additionally, special loan programs, such as FHA mortgages and VA home loans, offer even more opportunities for buyers to save.

Contact The Federal Savings Bank, a veteran owned bank,  to explore affordable mortgage options.

Home remodeling on the rise

9/20/2013 9:27:53 AM

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Current property owners are increasing their home remodeling efforts, according to recent data released by BuildFax.

Figures from the construction data firm show that building permits for home improvements to existing residential properties increased during July, reaching a seasonally adjusted annual rate of 3.51 million. This marks a 2 percent increase from June, as well as a 16 percent increase from July 2012.

"The national upward trend in remodeling is unmistakable, with the notable exception of the Northeast, in which the major cities (Boston, New York) have seen substantially less residential remodeling this year than last year, even though overall permit volumes have remained close to last year's totals,"  said Joe Emison, chief technology officer at BuildFax.

These figures are in keeping with data from the National Association of Home Builders. The NAHB recently reported that builder confidence in the housing market remained strong in September, coming in at 58 on its Housing Market Index.

"While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates," said NAHB Chairman Rick Judson. "Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past."

With a home purchase being one of the largest investments a consumer can make, it's no surprise that many people are looking to increase the value of their homes even further. Upgrades to home areas like kitchens and bathrooms can not only make a home more comfortable, they can greatly increase a home's resale price.

Paying for remodeling with a cash-out refinance
While remodeling projects can definitely add value to a home, there's also the important matter of paying for renovations in the first place. Many homeowners turn to cash-out refinances as an affordable option for financing home remodeling.

A cash-out refinance loan allows a homeowner to access their property's equity in order to receive funds, and with rising home prices driving up equity across the country, more homeowners than ever are finding themselves with the ability to take out such a loan.

For eligible servicemembers with a VA home loan, a VA cash-out refinance can make the process even easier. In addition to using the funds for home remodeling, VA cash-out refinances can also be used for paying off debt, funding school tuition and other important matters.

Even better, a VA cash-out refinance loan can be used to refinance a non-VA home loan into a VA loan, giving eligible borrowers even more options.

Contact The Federal Savings Bank, a veteran owned bank, to explore mortgage refinancing options.

Foreclosure activity falls drastically in some areas

9/19/2013 4:02:30 PM

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A recent article from 24/7 Wall St. highlighted decreasing foreclosure activityacross the country based on data from RealtyTrac. While some areas saw major decreases in foreclosure starts over the past year, others were still posting large numbers of foreclosures.

"I think that speaks to the fact that these states were incredibly hard hit by foreclosures," said Daren Blomquist, vice president of RealtyTrac. "Now, even with these huge decreases, you're still seeing thousands of families enter the foreclosure process."

Still, the decreases in foreclosures in some areas is staggering. For instance, Virginia experienced a 50 percent decrease during August on a year-over-year basis, making it the best performing market on 24/7 Wall St.'s list of states with the largest foreclosure declines.

"In Virginia, just one in every 2,126 housing units was in foreclosure in August, the best performance of any state on this list," the source reported. "That could be due in part to the relatively small decline in home prices over the five-year period from 2008 to 2013, compared to double-digit declines in several of the states on this list. Virginia had a median home price of nearly $300,000 in July, compared to a national median of $174,500."

Illinois saw an even larger decrease in foreclosure starts, with the number falling 66.2 percent year-over-year. However, it also had the second-most foreclosed properties in the nation during August, showing that even with major strides, struggles with foreclosures remain, a sentiment shared by Blomquist upon release of RealtyTrac's U.S. Foreclosure Market Report.

"The foreclosure floodwaters have receded in most parts of the country, but lenders and communities continue to clean up the damage left behind, which means the recent uptick in bank repossessions is a trend that will likely continue into next year," said Blomquist. "Meanwhile, foreclosure flash floods will continue to hit some markets over the next few months as delayed foreclosure starts are quickly pushed into the pipeline. This was the case with the jump in Nevada foreclosure starts in August."

Blomquist is referring to the fact that while foreclosure activity declined across most of the country during August, Nevada saw an increase of 226 percent year-over-year, as well as 93 percent from July. There were 3,236 foreclosure filings in the state during August, translating to one for every 359 housing units.

Refinancing can help
In addition to loan modifications, mortgage refinancing can help homeowners avoid the foreclosure process. Not only can mortgage refinancing lower a homeowner's monthly mortgage bill, it can help them change the terms of their loans, making it easier to pay off.

In addition to popular programs like HARP and FHA streamline refinances, eligible servicemembers can also take advantage of a VA loan refinance. Unlike other refinancing programs, a VA loan refinance requires no credit check or appraisal for eligible homeowners.

Contact The Federal Savings Bank, a veteran owned bank,  to explore mortgage refinancing options.