Pipeline

'Move' into Lending

The online real estate listing service Move Inc. is helping to match borrowers with Cornerstone Mortgage Co.

On Wednesday, the Campbell, Calif., Internet company launched MortgageMatch.com, which walks prospective borrowers through the lending process, helping them figure out what loans and rates they qualify for, including conventional and Federal Housing Administration loans.

After providing a few pieces of personal information, consumers who qualify can either apply directly for a loan on the site through Cornerstone, of Houston, or get a prequalification letter that they can show their real estate agent.

Sue Stewart, Move's senior vice president, stressed that MortgageMatch.com is not a lead aggregator or a broker. "What MortgageMatch shows is real data to a consumer," she said. "No teaser rates. We have rates that are real."

Though consumers can use the site to refinance an existing loan, Stewart said MortgageMatch.com is focused on first-time homebuyers. "Over 50% of our real estate buyers in 2010 have been first-time homebuyers," she said. "We really anticipate that that will continue."

Move operates a number of real estate websites, including Realtor.com, the listing site of the National Association of Realtors.

ARMed at Pentagon

Pentagon Federal Credit Union is actively promoting a type of product that was popular during the housing boom, but out of favor the past few years: a hybrid adjustable-rate mortgage.

The Alexandria, Va., credit union's offering has a fixed interest rate for the first five years and adjusts by no more than 2 percentage points every five years after that.

The 5/5 ARM, which the credit union has offered since 2007, is available as a conventional, jumbo ($417,001-$750,000, or $625,501-$750,000 in Alaska and Hawaii) or superjumbo ($750,001-$2 million) mortgage in all 50 states and at the same rates.

"There are a few unfortunate misconceptions circulating out there involving mortgage lending," said Amy Doane, a spokeswoman for Pentagon Federal, which serves military, government and defense contractor personnel and veterans. "The first being that no one is offering jumbo mortgages and the second, that there is no adjustable-rate mortgage available in the marketplace that is beneficial to the borrower."

Eye on REO Sales

Foreclosed homes made up 25% of all residential sales in the third quarter — but made up 54% of all sales in Nevada and 47% in Arizona, according to RealtyTrac Inc. data due out Thursday.

In 10 states, sales of real estate owned by banks and other mortgage investors, or REO, accounted for more than a quarter of all sales.

In California, they made up 40%, down from 52% a year earlier. Still, foreclosed properties in Nevada and Arizona sold for average discounts of 20% to 25% while in California, the discount was nearly 40%.