Mortgage News Recap for the week ending for the week ending 20th May 2007.

Recapping home loan and mortgage news that you may have missed this week:

Reverse mortgage could back you into money trouble
The Age
Authors of the article, Mark Armstrong and David Johnston, report that the reverse mortgage market has grown by 80% last year and that over 27,500 people in Australia have drawn on the equity in their homes. For those that are not familiar with Reverse Mortgages they enable you to, if you own your home, draw on the established equity as a lump sum or as installments. In this article featured at the Age the authors look at some of the downsides.

NSW Government Helping Battling Homeowners
NSW Department of Housing
NSW Minister for Housing Matt Brown releases a Department of Housing program, the Mortgage Assistance Scheme, that aims to help struggling homeowners trying to avoid repossession of their house. The Mortgage Assistance Scheme can subsidise home repayments during times of crisis. A fact sheet and case study is also available via the link to the story.

Building costs to rise over Rudd election ‘risk’
The Australian
Steve Lewis and Samantha Maiden report on the “Risk of Rudd” premiums are being written into construction contracts by building firms. The cost of construction for major projects, apartment housing and more are looking set to rise due to fears of industrial unrest set off by Labor’s workplace relations policies. In the article the Masters Builders Association voices their opinion along with the Treasurer. Another article worth reading on the topic is I used to have a good business… at Andrew Bolt’s blog, columnist for the Herald Sun.

Dip in housing investment
ABC - PM Radio National
A transcript of the interview with Chris Caton, Chief Economist with the BT Financial Group, by Ashley Hall.

More choosing fixed rate loans in SA
ABC News Online
Warren O’Rourke from Mortgage Choice says fixed rate loans in South Australia increased to 34 per cent from 29 per cent for the same month last year.

US mortgage crisis no concern for Australia: Costello
News.com.au
In the article Australian Treasurer, Peter Costello, states that they’ll be watching the US market and Australians should not be to concerned as they continue to work on keeping inflation low. Currently the US mortgage market is experiencing high rates of delinquencies which US Federal Reserve Chairman Ben Bernanke has pointed towards rises in foreclosures in the American market over the next year or two and lays fault with loose lending practices and previous growth in the subprime mortgage market.