| Some Hawaii mortgage rates slightly lower
Mortgage rates were mixed at Hawaii's largest banks this week, while the national average for a 30-year fixed-rate loan remained relatively flat. Bank of Hawaii, which had the lowest rate among the four banks last week at 5.25 percent, this week offered a 30-year fixed rate mortgage for 5.5 percent and 1.75 points, according to the survey by the Honolulu Board of Realtors. First Hawaiian Bank lowered its rate on a 30-year fixed-rate loan to 5.375 percent with 1.25 points, down from 5.75 percent and no points. American Savings Bank inched up to 5.625 percent with 1.625 points for a 30-year loan, while Central Pacific HomeLoans, which did not participate in last week's survey, offered 5.5 percent with 1.5 points. Nationally, the average interest rate for a 30-year fixed-rate mortgage was 5.85 percent with an average 0.4 points, down slightly from last week, when the rate averaged 5.87 percent, according to mortgage giant Freddie Mac.
Radian Guaranty Inc. Eliminates 'Stated Income' and 'Stated Asset' Programs
Radian Guaranty Inc., the primary mortgage insurance subsidiary of Radian Group Inc. (NYSE: RDN - News), announced today that mortgages originated under "stated income" and "stated asset" programs will no longer be eligible for mortgage insurance. In a message to clients this week, Radian commented, "while certain forms of alternative documentation used to verify assets and income are appropriate with a disciplined underwriting process, the stated programs will no longer be insurable as a result of poor performance." This change will take effect on April 30, 2008 for all new mortgage insurance applications. .
Wall St. borrows big from Fed
Washington - Big Wall Street investment companies have jumped all over the Federal Reserve's unprecedented offer to obtain emergency loans, with borrowing more than doubled compared with the program's debut week. Those firms averaged $32.9 billion in daily borrowing over the past week using the new lending program, compared with $13.4 billion the previous week, the central bank reported Thursday. The program, which began last Monday, is part of the Fed's effort to aid the financial system. On Wednesday alone, lending reached $37 billion. The Fed, for the first time, agreed March 16 to let big investment houses temporarily get emergency loans directly from the central bank. This mechanism, similar to one available for commercial banks for years, will continue for at least six months.
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