tag:blogger.com,1999:blog-2707311143342296262024-03-13T06:13:05.983-07:00Mortgage Banker Money HoneyCarl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.comBlogger69125tag:blogger.com,1999:blog-270731114334229626.post-34600900801651995512014-09-25T17:31:00.001-07:002014-09-25T17:31:36.591-07:00Guess Who's Driving Confidence in the Housing Market NowThe dream of homeownership remains a strong one among younger renters.
<a href="http://realestate.aol.com/blog/2014/09/24/millennials-driving-housing-market-confidence/"></a>
<a href="http://o.aolcdn.com/dims-shared/dims3/GLOB/crop/5370x3578+245+11/resize/640x426!/format/jpg/quality/85/http://o.aolcdn.com/hss/storage/adam/774424095f35c1f55a9b803b88483c3f/95435851.jpeg" imageanchor="1" ><img border="0" src="http://o.aolcdn.com/dims-shared/dims3/GLOB/crop/5370x3578+245+11/resize/640x426!/format/jpg/quality/85/http://o.aolcdn.com/hss/storage/adam/774424095f35c1f55a9b803b88483c3f/95435851.jpeg" /></a>
As the housing recovery continues, Americans are growing more confident in the housing market in general. And that confidence comes in part from a potentially surprising source: Millennial renters, who to date have been perceived by many as largely uninterested in and/or unable to attain homeownership.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-36913190194210824052014-09-25T17:27:00.000-07:002014-09-25T17:27:20.615-07:002014 FHA Loan Limits for High Cost Areas<b> FHA Loan Limit Changes Effective January 1, 2014</b>
Loan limits for the country's highest-cost areas were reduced January 1, 2014.
The 2014 national maximum "ceiling" loan limit for a one-unit property in a high-cost area was reduced from $729,750 to $625,500. The current standard minimum "floor" loan limit for a one-unit property in a low-cost area will remain unchanged at $271,050.
Loan limits in other areas have also changed, with both increased and decreased loan limits in different areas.
In Special Exception Areas (Alaska, Guam, Hawaii and the U.S. Virgin Islands), the maximum "ceiling" loan limit for a one-unit property will be reduced from $1,094,625 to $938,250.
The following illustrates FHA loan limits for low-cost and high-cost areas.
Property Size Low-Cost Area "Floor" High-Cost Area "Ceiling"
One Unit $271,050 $625,500
Two Units $347,000 $800,775
Three Units $419,425 $967,950
Four Units $521,250 $1,202,925
For multiple-unit loan limit adjustments in Special Exception Areas, download the FHA's Mortgagee Letter. FHA loan limits are determined by the median home price in each county. Approximately 650 counties have lower limits as a result of this change in the governing law. FHA loans are extremely popular and currently account for about 25% of all loans used to purchase homes. With an FHA loan, buyers can put down as little as 3.5%. FHA loans are available as both fixed-rate loans and adjustable-rate loans.
<a href="http://www.nesteggg.com/media/k2/items/cache/63ae8dd535459e6ddaa9950601158f8d_M.jpg" imageanchor="1" ><img border="0" src="http://www.nesteggg.com/media/k2/items/cache/63ae8dd535459e6ddaa9950601158f8d_M.jpg" /></a>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-75742043607270843112014-09-25T17:21:00.000-07:002014-09-25T17:21:02.292-07:0043% Debt to Income Ratio Rolled Back!<a href="http://www.businessweek.com/articles/2013-12-27/new-mortgage-rules-wont-knock-out-many-borrowers"><b>New Mortgage Rules Won't Knock Out Many Borrowers</b></a>
Lenders managed to win a reprieve on another piece of the standard, which is that a borrower’s total debt payments (including credit cards and student loans) can’t exceed 43 percent of income. Loans eligible for purchase by Fannie Mae (FNMA) or Freddie Mac (FMCC) or for insurance by federal agencies don’t have to meet that debt-to-income standard until 2021.<br>
<a href="http://www.jimsparrow.com/images/canadianmortgagerates_436.jpg" imageanchor="1" ><img border="0" src="http://www.jimsparrow.com/images/canadianmortgagerates_436.jpg" /></a>
Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-4629749122731660652014-09-25T17:20:00.000-07:002014-09-25T17:20:50.670-07:00Multiple Credit Inquiry ImpactsThird party credit reviews or “hard inquiries” impact credit scores for 12 months from the date they occur even though they can be seen for 24 months. There are windows of time that a consumer can have multiple third party credit reviews and it will only impact the score as one inquiry. This happens only with mortgage, student loan, and car financing hard inquiries. Each of these categories has its own window where multiple credit reviews are considered as one. All other third party reviews can drop scores 2-5 points each time they occur.
When an individual has many hard inquiries or third party reviews it can be considered “excessive shopping” and reduce scores dramatically. In many cases 6 hard inquiries (in total) in a 12 month period are considered excessive shopping and can drop Fico credit scores 20-40 points. Depending on what threshold a mortgage applicant needs for loan approval or the best interest rate available this could devastate their options. If a consumer buys their own credit scores from the Fico site their credit scores will not drop, even if it’s 100 times a day. If a promotional credit card offer is extended it also will not reduce scores. These types of inquiries are considered “soft inquiries” and will not hurt credit scores at all. If the promotional offer was accepted by the consumer a hard inquiry would occur before the final approval on the offer is given by the creditor.<br>
<a href="http://blog.lendingclub.com/wp-content/uploads/2010/11/FICO-Score.png" imageanchor="1" ><img border="0" src="http://blog.lendingclub.com/wp-content/uploads/2010/11/FICO-Score.png" /></a>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-66357731089268737502014-09-25T17:07:00.000-07:002014-09-25T17:07:26.872-07:00For First-Time Homebuyers: How to Dodge 5 Costly Rookie Mistakes<a href="http://realestate.aol.com/blog/2013/09/05/first-time-homebuyers-common-mistakes/"><b>How to Dodge 5 Costly Rookie Mistakes</b></a><div class="separator" style="clear: both; text-align: center;"><a href="http://cs412919.vk.me/v412919714/8cb9/MaDKalR49Hw.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://cs412919.vk.me/v412919714/8cb9/MaDKalR49Hw.jpg" /></a></div><a href="http://realestate.aol.com/blog/2013/09/05/first-time-homebuyers-common-mistakes/"></a>
1. Searching for the dream home before getting prequalified for a loan.
Save yourself the disappointment of not being able to afford the home of your dreams by getting prequalified for your loan before you start house hunting. Instead of picking out a price range and searching listings, take the time to talk to a lender about how much house you can realistically afford and what the monthly payment breakdown -– with all taxes and other fees included –- will be. The amount you are preapproved for will help you create a realistic budget for your home search.
2. Delaying the buying process in hopes of a better rate.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-9650267883101016482014-09-25T16:54:00.001-07:002014-09-25T16:54:27.131-07:00Economic EventAs of August 2013,
Mortgage customers that can document an "Economic Event" are no longer required to wait the standard seasoning time for bankruptcies, short sales & foreclosures. Rather than waiting (2) years for BK & (3) years for short sale/foreclosure borrowers are able to purchase within 1 year of the event as long as the following is true:
• Household income (at the time) dropped at least 20% and continued for at least a six month period.
• All credit was well maintained up until the event AND the borrower now has 12 month paid as agreed credit ~ this includes Non-Traditional
• Borrower(s) have completed HUD's Satisfactory Housing Counseling.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-19390441306828022722014-09-25T16:51:00.001-07:002014-09-25T16:51:44.157-07:0040 Million Mistakes: Is your credit report accurate?<a href="http://www.cbsnews.com/videos/40-million-mistakes-is-your-credit-report-accurate-50140748/">40 Million Mistakes: Is your credit report accurate?</a>A new study indicates as many as 40 million consumers have a mistake on their credit report and Steve Kroft finds it's hard to get them fixed. A must see video that will open your eyes on how hard it is to get errors on credit reports corrected.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-43414407382775922782014-09-25T16:48:00.000-07:002014-09-25T16:48:04.281-07:00Market Conditions and Analysis for Mortgage and Housing ProfessionalsGood article on strategy for presentations by housing professionals. Shows what market demographics indicate are the buying trends by age group.
<div class="separator" style="clear: both; text-align: center;"><a href="http://www.thenichereport.com/wp-content/uploads/2012/02/Housing-Analysis-300x182.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.thenichereport.com/wp-content/uploads/2012/02/Housing-Analysis-300x182.jpg" /></a></div>
<a href="http://www.mpamag.com/article/market-conditions-and-analysis-for-mortgage-and-housing-professionals-6366.aspx">Market Conditions and Analysis for Mortgage and Housing Professionals</a>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-16927095839251710312012-01-03T09:45:00.000-08:002012-01-03T09:56:25.939-08:00Pending home sales post solid gains two months in a row<a href="http://mam.econoday.com/reports/rc/2012/Resource_Center/Archives/SE-Archive/01-02-12/index_clip_image014.gif"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 356px; height: 241px;" src="http://mam.econoday.com/reports/rc/2012/Resource_Center/Archives/SE-Archive/01-02-12/index_clip_image014.gif" border="0" alt="" /></a><br /><br />There are signs that housing is coming off a second bottom as pending existing home sales rose a very strong 7.3 percent in November on top of October's 10.4 percent gain. Regionally, November's gains were led by the West and include the Northeast and Midwest with the South showing no change. November and October taken together show solid gains for all regions. The index is at its highest level since April 2010.<br /> <br />Recent sales increases have been helped by lower mortgage rates and lower home prices along with a somewhat improved jobs picture.<br /> <br />There is some speculation that the pending sales data are getting a boost, and are likely to continue to get a boost, from re-signings by homebuyers who had prior contracts voided for technical reasons such as missing deadlines due to financing snags. There have been reports that the failure rate of contracts (not going to closing) has risen significantly due to tighter lending standards.<br />Source: Barron's Online 1/3/2012Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-48678205827079667852011-12-30T11:34:00.000-08:002011-12-30T11:56:56.355-08:002012 Goal Setting<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXZmnj3Tt97t01ZGMoeBwps6R-jjKVnXRofCEPYlEPfZhtQuSS1GHPjWcK3OwgNR6NMt9ir55M5bHhQgFLRjEtkJb30_Kr4M3qTpJovSB2VzoPK-vB2eyo41oUyLM8G5VDfpbZp_YedAI0/s1600/cute-note.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 133px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXZmnj3Tt97t01ZGMoeBwps6R-jjKVnXRofCEPYlEPfZhtQuSS1GHPjWcK3OwgNR6NMt9ir55M5bHhQgFLRjEtkJb30_Kr4M3qTpJovSB2VzoPK-vB2eyo41oUyLM8G5VDfpbZp_YedAI0/s200/cute-note.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5692011828119183762" /></a><br />I have been studying goal setting for years now, and doing presentations on the topic.<br />It never ceases to amaze that the one simple act of writing goals down makes such a tremendous difference. Even when none of the finer points of effective goal setting are employed, it never fails that many of the written goals have been achieved by the time they are reviewed.<br />I will be offering free personal coaching on the topic to my business associates locally (San Diego area) in the 1st quarter of 2012. Just drop me a call or an email.<br />Even if we haven't met, send an email and I will send you the reasons most New Year's resolutions fail, the mistakes people make in goal setting, and links to the best mobile, online and computer apps for goal setting to help you get started!Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-67343807291740050672011-11-22T13:13:00.000-08:002011-11-22T13:27:02.083-08:00New Higher FHA Loan Limits Signed Into Law Friday<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiftjZM-OvCw7UwLPXPC2vQXkIEHhq9mrGSiaO4QVseAyrTaaFe16syFgSs9MmXerch-qMURBmvDZ-MzlYWz6-9VUqVNPCfkVjJ1HFjAAorS8nhFk-XJBBdMVK_k2vZrSo2_vQux0OqTf0/s1600/wheelbarrowmoney.png"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 148px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiftjZM-OvCw7UwLPXPC2vQXkIEHhq9mrGSiaO4QVseAyrTaaFe16syFgSs9MmXerch-qMURBmvDZ-MzlYWz6-9VUqVNPCfkVjJ1HFjAAorS8nhFk-XJBBdMVK_k2vZrSo2_vQux0OqTf0/s200/wheelbarrowmoney.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5677931577999289954" /></a><br />President Obama signed into law Friday H.R. 2112, a bill that among other things has raised the mortgage limit on Federal Housing Administration (FHA) loans. On October 1st of this year, the lending limits for high cost areas was slashed, with the national maximum being reduced from $729,750 to $625,000 and San Diego County's maximum also declining from $697,500 to $546,250. This bill will extend the pre-October 1st high cost area limits from now through December 2013. This increased limit only applies to loans backed by the FHA, as Fannie Mae and Freddie Mac loans were not included in this bill.<br /><br />This raising of mortgage limits was done for those in high cost areas who simply cannot get a home for the same prices as those in other areas of the country. FHA was created to help low and middle income families acquire loans with very little down payment, encouraging home buying for those who can afford their monthly mortgage payment but otherwise might struggle to come up with the down payment. San Diego is a prime example of a high cost area. The national limit for FHA basic standard mortgages is now 271,050.00. A quick Zillow search of single family homes yielded 21,279 homes on the market in San Diego County. Of those only 9,844 were priced lower than the national limit, the majority being condos or apartments. San Diego is an expensive market to live in, therefore what is considered middle class housing here is higher than in places such as the Midwest. This bill will remove the penalty of living in an expensive region of the country and provide opportunities to purchase great homes for the middle class. If one couples the FHA loans low down payments with the historically low interest rates, this bill will enable more middle class families to afford homes in the county.<br /><br />This bill will be beneficial to San Diegans, as there will be far more homes eligible for FHA loans and refinancing. Another Zillow search for homes between the prices of $546,250 (previous limit) and $697,500(new limit) shows 1521 homes. This means that 1521 homes in San Diego are now eligible under the FHA programs that were previously ineligible. The FHA wants to encourage home buying, as it stimulates economic growth. With so many more eligible homes home buying should increase, helping both our local and national economies after what has been a rough few years. Purchasing a home now while prices, down payments, and interest rates are low is an excellent investment in the future, and the FHA can make this possible for you.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-50655288089435283452011-11-14T10:40:00.000-08:002011-11-14T11:03:07.782-08:00More Personal Information in the Credit Report<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDjHFjzQEP-GX9KK-v5FbS8Iq-uzam5aypKMm_J5FKsZRjntYFgrn2i_3pFKbLLpDT1yf1XHbpbNkOWpco-4y4iYll7i6hqsVFBYNHUxgRKn8H9XjecYpCx8gsUcnE9NU5bj3y9-W4gqZ-/s1600/sherlock.gif"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 146px; height: 143px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDjHFjzQEP-GX9KK-v5FbS8Iq-uzam5aypKMm_J5FKsZRjntYFgrn2i_3pFKbLLpDT1yf1XHbpbNkOWpco-4y4iYll7i6hqsVFBYNHUxgRKn8H9XjecYpCx8gsUcnE9NU5bj3y9-W4gqZ-/s200/sherlock.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5674929050818796146" /></a><br />Consumers applying for a mortgage will be sharing more of their personal information with lenders next year. <br /><br />FICO scores have been based on a person's credit history. But now, tools are being developed to help the lending industry dig deeper.<br /><br />Fair Isaac Corp., and CoreLogic recently announced a joint project that will result in a separate score that will be available to mortgage lenders and will include payday loans, evictions and child support payments. In the future, the status of utility, rent and cellphone payments may also be included.<br /><br />Experian, Equifax and TransUnion have recently begun providing estimates of consumer income as an option to the credit report. Experian has also begun including data on on-time rental payments in its reports as of this year.<br /><br />All this new information could have positive or negative impact for consumers: It may open the door to homeownership to some consumers who otherwise lack sufficient credit histories, and it may help more affluent homeowners who show little use of credit.<br /><br />On the negative side, the extra information could make a borderline borrower look even worse on paper. <br /><br />The FICO-CoreLogic partnership will not result in a credit score that will eliminate a borrower for a mortgage backed by FNMA, FHLMC or FHA. This is because the report required for such a loan does not rely on the additional CoreLogic data. It could affect mortgage fees or interest rates charged by lenders who use a risk-based pricing model.This model rewards the most creditworthy borrowers with low rates and tack extra fees onto loans for those with lower credit scores.<br /><br />It will be interesting to see if the new information will actually expand the number of people who can get a mortgage.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-62209990627713485102011-10-25T13:24:00.000-07:002011-10-25T13:33:59.916-07:00New Home Affordable Refinance Program (HARP II)<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQPDVPs26WNX4AXbzD9LRMbZ9oyMWmwCvPrIMuGMoUnvVXL4dF24y_-HG8BGsj1DFEh-9FbYC56OzLfkZCo9iQUyYr2V0a9htyvkoHjHvhnbNrm3oBKRItT8d77_wG4_FAXFADLQTgQMgj/s1600/03upside-down-house.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 130px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQPDVPs26WNX4AXbzD9LRMbZ9oyMWmwCvPrIMuGMoUnvVXL4dF24y_-HG8BGsj1DFEh-9FbYC56OzLfkZCo9iQUyYr2V0a9htyvkoHjHvhnbNrm3oBKRItT8d77_wG4_FAXFADLQTgQMgj/s200/03upside-down-house.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5667528786312982690" /></a><br />Yesterday, Oct 24, 2011, President Obama announced changes to the Making Home Affordable Refinance Program (HARP) so that a person can refinance a first mortgage that is upside-down. <br /><br />That mortgage must be owned by Fannie Mae or Freddie Mac on or before May 31,2009.<br /><br />The changes announced yesterday also extend the program to the end of 2013, and will allow a refinance of a first mortgage with no cap on the loan-to-value (LTV) ratio. <br /><br />Another important enhancement is the elimination of certain risk-based fees for borrowers who choose a shorter term (see examples below) and lowering fees for other borrowers. <br /><br />No lenders are offering the program yet, although some major lenders have stated they are working on it’s release.<br /><br />The requirements released to date are as follows:<br /><br />1. 1st mortgage owned by Fannie Mae or Freddie Mac<br /><br />2. No late mortgage payments within the previous 6 months<br /><br />3. No more than 1 late mortgage payment within the past 12 months<br /><br />4. 2nd mortgages must agree to go back in 2nd position<br /><br />5. The loan cannot have been refinanced previously under HARP unless it was between March-May of 2009.<br /><br />6. Condominiums continue to be eligible under the program.<br /><br />Lenders are expected to receive guidelines, including implementation dates by November 15, 2011.<br /><br />Some of the enhancements may be available as early as December 1, 2011, <br /><br />However, availability of the loan for LTV's greater than 125 is not expected until after December 31, 2011.<br /><br />The FHFA announcement can be found here:<br /><br /><a href="http://www.fhfa.gov/webfiles/22721/HARP%20release%20102411%20Final.pdf">http://www.fhfa.gov/webfiles/22721/HARP%20release%20102411%20Final.pdf</a><br /><br />The program is only one of many refinancing options available to homeowners. It is unique in that it enables borrowers who owe more than the home is worth to take advantage of low interest rates and other refinancing benefits.<br /><br />Examples*<br /><br />Assume a homeowner currently has a mortgage on which he or she owes $200,000 and <br />has an interest rate of 6.5 percent – a monthly payment of $1264. If the house is worth $160,000, the homeowner has a current loan-to-value (LTV) ratio of 125 percent. <br /><br /><li>If this borrower refinanced into a 30-year fixed-rate mortgage with an interest rate of 4.5 percent, the monthly payment would decline to $1013. But, by refinancing into a 30-year loan, the borrower’s loan balance will not reach $160,000 for ten full years. <br /><br /><li>If the borrower chose a 20-year loan term at a rate of 4.25 percent (mortgage rates tend to be less for shorter term mortgages), the monthly payment would be $1238 ($26 less than the borrower currently pays) and the borrower’s loan balance would reach $160,000 in 5.5 years.<br /><br /><li>If this same borrower refinanced into a 15 year mortgage, assuming an interest rate of 3.75 percent, the monthly payment would be $1454 ($190 more than the current payment), but the loan balance would be below $160,000 in a bit more than 3.5 years. <br /><br />*These examples are purely illustrative and are not meant to represent interest rates borrowers should expect to pay. They do show that some HARP-eligible borrowers, depending on their circumstances and priorities, may benefit from a shorter term mortgage.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-19974188351110971992011-10-21T10:03:00.000-07:002011-10-21T10:07:28.848-07:00Are FHA Mortgage Loans Assumable?You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is streamlined and less expensive compared to that for a new loan. You must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new mortgage loan. After closing, you will then be responsible for an annual premium - paid monthly - if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.<br /><br />Here is how assumable FHA loans benefit the buyer:<br /><br />The benefits are two fold. The buyer may get an interest rate that is much lower than the current interest rate they could get from a bank AND they have an accelerated pay off schedule because there are less years remaining on the note!<br /><br />The FHA mortgage is one of the most expensive when it comes to closing costs, although the costs can be financed. To counter that cost, it helps to remember that your FHA mortgage is assumable. When you sell your property you will have an edge over your competition because of the assumable financing you can offer.<br /><br />The value of assumability is as high as it is ever likely to be because of the broad consensus that interest rates in future years will be higher than they are now.<br /><br />Loans insured by the FHA are assumable; conventional loans, with a few exceptions, are not. That means that a home buyer who finances the purchase with an FHA-insured loan and who sells the house later, when interest rates are higher, will be able to offer a potential buyer the right to assume his low-rate FHA loan.<br /><br />After approval of the buyer by the FHA, the buyer would assume all the obligations of the mortgage upon the sale of the property, and the seller would be relieved of liability, provided the loan being assumed was originated after December 14, 1989. It will be just as if the loan had been made to the buyer.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-35267940020402616632011-09-30T10:27:00.000-07:002011-09-30T10:29:44.541-07:00Waiting Period After Short Sale of a Home Purchased with a VA LoanBorrowers are required to wait for <span style="font-weight:bold;">two years</span> before applying for a new VA home loan. A qualifying credit score and a record of dependable payments during the waiting period following a short sale is required.<br /><br />Borrowers must apply to have their VA loan eligibility restored by filing a copy of VA Form 26-1880 to the Winston-Salem Eligibility Center. <br /><br />One thing could prevent a buyer from getting eligibility restored right away. If the VA paid a compromise claim as part of a short sale, the borrower may be indebted to the government as a result of that claim. The Department of Veterans Affairs may not restore eligibility if the applicant still owes money to the government.<br /><br />Here is the specific wording:<br /><br />“…although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.”<br /><br />If a VA loan applicant is notified that a debt to the government exists, or was aware of the debt prior to applying for the loan, the applicant should contact the VA directly to work out the details of repayment before applying for a new VA mortgage.<br /><br />A borrower may still be able to take advantage of any unused VA loan eligibility. Any remaining entitlement may be allowed if a borrower did not use the full entitlement on the previous VA mortgage.<br /> <br />A borrower’s debt for a compromise claim may be factored into the debt-to-income ratio, unless the lender feels the compromise claim debt is too great compared to other financial factors. That debt may result in the need for a down payment, or a larger down payment than usual – requirements will vary from lender to lender.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-41543076941685257472011-09-26T15:21:00.000-07:002011-09-26T15:39:36.610-07:00Are VA Loans Assumable?An assumable loan allows the buyer to take over the obligation of the seller's loan <br />with no change in loan terms. Generally, a loan without a "Due-On-Sale Clause" is assumable.<br /><br /><span style="font-weight:bold;">Advantages:</span><br /><br />If loan rates have increased since the seller got the loan, the old loan may carry a lower interest rate than a new loan, and the buyer won't have to pay as much in fees.<br />Also, more of the monthly payments on the loan will be going toward the principal balance instead of interest because the loan term will be reduced by the time since the loan began.<br /><br /><span style="font-weight:bold;">VA Assumablility</span><br /><br />There are two ways to assume a VA loan,<span style="font-style:italic;">but only one of them is a good idea for the seller.</span> <br />First, if the new buyer is a qualified Veteran, he can "substitute" his eligibility for the eligibility of the seller. In addition, the new buyer qualifies through VA standards for the mortgage payment. <br />This is the safest way for a seller to allow their loan to be assumed. The new buyer is responsible for the loan and the seller has no further liablility for the repayment of the loan. By obtaining a "release of liability" from the VA, the seller can then use their full eligibility to purchase another home right away using their VA loan.<br /><br />The second way is if the new buyer is not a veteran or qualified for a VA loan, they have no eligibility to give the seller. If the seller grants permission for the new buyer to take over their loan, the seller <span style="font-style:italic;">does not get back their eligibility</span> to use on another home, and <span style="font-weight:bold;">the seller is still liable for the payments</span> should the buyer default!<br /><br />For this reason, A VA seller and their realtor, should be very careful about offering their home with an assumable loan.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-42357305483438884592011-09-20T12:50:00.000-07:002011-09-20T12:52:36.646-07:00New California Maximum FHA purchase price with 3.5% Down 10/1/2011<table><tbody><tr><td><span style="font-weight:bold;">County</span></td><td><span style="font-weight:bold;">Max FHA Price</span></td></tr><tr><td>Alameda</td><td>$648,187</td></tr><tr><td>Alpine</td><td>$480,259</td></tr><tr><td>Amador</td><td>$344,404</td></tr><tr><td>Butte</td><td>$303,886</td></tr><tr><td>Calaveras</td><td>$387,306</td></tr><tr><td>Colusa</td><td>$280,881</td></tr><tr><td>Contra Costa</td><td>$648,187</td></tr><tr><td>Del Norte</td><td>$280,881</td></tr><tr><td>El Dorado</td><td>$492,176</td></tr><tr><td>Fresno</td><td>$291,969</td></tr><tr><td>Glenn</td><td>$280,881</td></tr><tr><td>Humboldt</td><td>$339,637</td></tr><tr><td>Imperial</td><td>$280,881</td></tr><tr><td>Inyo</td><td>$382,539</td></tr><tr><td>Kern</td><td>$280,881</td></tr><tr><td>Kings</td><td>$280,881</td></tr><tr><td>Lake</td><td>$280,881</td></tr><tr><td>Lassen</td><td>$280,881</td></tr><tr><td>Los Angeles</td><td>$648,187</td></tr><tr><td>Madera</td><td>$280,881</td></tr><tr><td>Marin</td><td>$648,187</td></tr><tr><td>Mariposa</td><td>$333,679</td></tr><tr><td>Mendocino</td><td>$387,306</td></tr><tr><td>Merced</td><td>$280,881</td></tr><tr><td>Monterey</td><td>$500,518</td></tr><tr><td>Napa</td><td>$613,731</td></tr><tr><td>Nevada</td><td>$494,560</td></tr><tr><td>Orange</td><td>$648,187</td></tr><tr><td>Placer</td><td>$492,176</td></tr><tr><td>Plumas</td><td>$349,171</td></tr><tr><td>Riverside</td><td>$368,238</td></tr><tr><td>Sacramento</td><td>$492,176</td></tr><tr><td>San Benito</td><td>$648,187</td></tr><tr><td>San Bernardino</td><td>$368,238</td></tr><tr><td>San Diego</td><td>$566,062</td></tr><tr><td>San Francisco</td><td>$648,187</td></tr><tr><td>San Joaquin</td><td>$315,803</td></tr><tr><td>San Luis Obispo</td><td>$581,554</td></tr><tr><td>San Mateo</td><td>$648,187</td></tr><tr><td>Santa Barbara</td><td>$648,187</td></tr><tr><td>Santa Clara</td><td>$648,187</td></tr><tr><td>Santa Cruz</td><td>$648,187</td></tr><tr><td>Shasta</td><td>$283,627</td></tr><tr><td>Siskiyou</td><td>$280,881</td></tr><tr><td>Solano</td><td>$414,715</td></tr><tr><td>Sonoma</td><td>$539,845</td></tr><tr><td>Stanislaus</td><td>$286,010</td></tr><tr><td>Sutter</td><td>$280,881</td></tr><tr><td>Tehama</td><td>$280,881</td></tr><tr><td>Tulare</td><td>$280,881</td></tr><tr><td>Tuolumne</td><td>$343,212</td></tr><tr><td>Ventura</td><td>$619,689</td></tr><tr><td>Yolo</td><td>$492,176</td></tr><tr><td>Yuba</td><td>$280,881</td></tr></tbody></table>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-24927473048347171042011-09-20T12:39:00.000-07:002011-09-20T12:43:50.071-07:00New California Maximum Loan Limits FHA & Conventional October 2011<table><tbody><tr><td><span style="font-weight:bold;">County</span></td><td><span style="font-weight:bold;">Maximum Loan</span></td></tr><tr><td>Alameda</td><td>625,500</td></tr><tr><td>Alpine</td><td>463,450</td></tr><tr><td>Amador</td><td>332,350</td></tr><tr><td>Butte</td><td>293,250</td></tr><tr><td>Calaveras</td><td>373,750</td></tr><tr><td>Colusa</td><td>271,050</td></tr><tr><td>Contra Costa</td><td>625,500</td></tr><tr><td>Del Norte</td><td>271,050</td></tr><tr><td>El Dorado</td><td>474,950</td></tr><tr><td>Fresno</td><td>281,750</td></tr><tr><td>Glenn</td><td>271,050</td></tr><tr><td>Humboldt</td><td>327,750</td></tr><tr><td>Imperial</td><td>271,050</td></tr><tr><td>Inyo</td><td>369,150</td></tr><tr><td>Kern</td><td>271,050</td></tr><tr><td>Kings</td><td>271,050</td></tr><tr><td>Lake</td><td>271,050</td></tr><tr><td>Lassen</td><td>271,050</td></tr><tr><td>Los Angeles</td><td>625,500</td></tr><tr><td>Madera</td><td>271,050</td></tr><tr><td>Marin</td><td>625,500</td></tr><tr><td>Mariposa</td><td>322,000</td></tr><tr><td>Mendocino</td><td>373,750</td></tr><tr><td>Merced</td><td>271,050</td></tr><tr><td>Monterey</td><td>483,000</td></tr><tr><td>Napa</td><td>592,250</td></tr><tr><td>Nevada</td><td>477,250</td></tr><tr><td>Orange</td><td>625,500</td></tr><tr><td>Placer</td><td>474,950</td></tr><tr><td>Plumas</td><td>336,950</td></tr><tr><td>Riverside</td><td>355,350</td></tr><tr><td>Sacramento</td><td>474,950</td></tr><tr><td>San Benito</td><td>625,500</td></tr><tr><td>San Bernardino</td><td>355,350</td></tr><tr><td>San Diego</td><td>546,250</td></tr><tr><td>San Francisco</td><td>625,500</td></tr><tr><td>San Joaquin</td><td>304,750</td></tr><tr><td>San Luis Obispo</td><td>561,200</td></tr><tr><td>San Mateo</td><td>625,500</td></tr><tr><td>Santa Barbara</td><td>625,500</td></tr><tr><td>Santa Clara</td><td>625,500</td></tr><tr><td>Santa Cruz</td><td>625,500</td></tr><tr><td>Shasta</td><td>273,700</td></tr><tr><td>Siskiyou</td><td>271,050</td></tr><tr><td>Solano</td><td>400,200</td></tr><tr><td>Sonoma</td><td>520,950</td></tr><tr><td>Stanislaus</td><td>276,000</td></tr><tr><td>Sutter</td><td>271,050</td></tr><tr><td>Tehama</td><td>271,050</td></tr><tr><td>Tulare</td><td>271,050</td></tr><tr><td>Tuolumne</td><td>331,200</td></tr><tr><td>Ventura</td><td>598,000</td></tr><tr><td>Yolo</td><td>474,950</td></tr><tr><td>Yuba</td><td>271,050</td></tr></tbody></table>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-28443388501368413362011-09-13T07:52:00.000-07:002011-09-13T08:27:45.386-07:00New UAD Forms and CodesThese are the four new required Appraisal forms, effective Sept 1, 2011 for all FNMA/FHLMC transactions.<br /><br /><span style="font-weight:bold;">Uniform Residential Appraisal Report</span> (Fannie Mae Form 1004/Freddie Mac Form 70)<br /><span style="font-weight:bold;"><br />Individual Condominium Unit Appraisal Report</span> (Fannie Mae Form 1073/Freddie Mac Form 465)<br /><br /><span style="font-weight:bold;">Exterior-Only Inspection Individual Condominium Unit Appraisal Report</span> (Fannie Mae Form 1075/Freddie Mac Form 466)<br /><br /><span style="font-weight:bold;">Exterior-Only Inspection Residential Appraisal Report</span> (Fannie Mae/Freddie Mac Form 2055)<br /><br />Here is the checklist for the new codes:<br /><br />UAD‐01: Real estate taxes and/or special assessments are to be entered in whole dollars only.<br />UAD‐02: If there are no HOA fees or Special Assessments, enter the numeral zero (0).<br />UAD‐03: If there is a HOA or the subject is a condo, answer yes or no for the question, “Is the<br />developer/builder in control of the Homeowners’ Association (HOA)?”<br />UAD‐04: If the subject property is currently offered for sale or has been offered for sale in the 12 months<br />prior, report the data source(s) used, offering price(s), Days on Market and date(s). If the answer is ‘No,’ the<br />data source(s) used must be provided.<br />UAD‐05: For a purchase transaction, in the contract section state what the sale type is.<br />UAD‐06: Provide an outline of the neighborhood boundaries clearly delineated using ‘North’, ‘South’, ‘East’,<br />and ‘West’<br />UAD‐07: For sites/parcels that have an area of less than one acre, the size must be reported in square feet ‐<br />whole numbers only. For sites/parcels that have an area of one acre or greater, the size must be reported in<br />acreage to two decimal places. The unit of measure must be indicated as either ‘sf’ for square feet or ‘ac’ for<br />acres. (for subject and comparables)<br />UAD‐08: View rating must be N, B or A along with an abbreviated factor. (site section and grid)<br />UAD‐09: For utilities, other must be accompanied with a description; if it is not present, enter ‘None’.<br />UAD‐10: Indicate whether the street or alley type is ‘Public’ and/or ‘Private’. Enter ‘None’ in the appropriate<br />description field if there is no street or alley.<br />UAD‐11: # of stories (and # of levels for a condo) can only be numeric; omit descriptors.<br />UAD‐12: If there is commercial space in the condo project, check yes at the bottom of page 1and indicate<br />overall % of commercial space – 2 digits, whole numbers only.<br />UAD‐13: Design style should be an architectural design such as ‘Colonial’, ‘Rambler’ ect. Descriptors such as ‘2<br />stories’ or ‘conventional’ are not architectural styles.<br />UAD‐14: If year date is unknown, estimate the year it was built with a tilde (~) preceding the year built.<br />UAD‐15: Indicate the basement size in square feet and the percentage of the basement that is finished. If there<br />is no basement, enter the numeral zero (0) in both fields ‐ whole numbers only.<br />UAD‐16: If there is no heating or cooling source, indicate ‘Other’ and enter ‘None’.<br />UAD‐17: For amenities, enter the numeral zero (0) in the appropriate space if there are no fireplaces or<br />woodstoves. Enter ‘None’ in the appropriate space if there is no patio/deck, pool, fence, porch, or other<br />amenity.<br />UAD‐18: For car storage, enter the number of spaces in whole numbers only for each type. If none, enter the<br />numeral zero (0) for # of cars.<br />UAD‐19: Baths should include the total number of baths above grade. A three‐quarter bath is to be counted as<br />a full bath in all cases. Quarter baths (baths that feature only a toilet) are not to be included in the bathroom<br />count. The number of full and half baths must be entered, separated by a period. The full bath count is<br />represented to the left of the period. The half bath count is represented to the right of the period.<br />UAD‐20: Condition must state the rating, then indicate ‘Yes’ or ‘No’ if there has been any material work done<br />to the kitchen(s) or bathroom(s) in the prior 15 years. If ‘No’, the text ‘No updates in the prior 15 years’ must<br />be provided; if ‘Yes’, additional information for kitchens and bathrooms must be provided including ‘not<br />updated’, ‘updated’ or ‘remodeled’ and the timeframe.<br />UAD‐21: Condition rating (for the subject and comps) must be in UAD format; select one of the following: C1,<br />C2, C3, C4, C5 or C6.<br />UAD‐22: Addresses for the comparables must include the address, city, state and zip code.<br />UAD‐23: Proximity must be in miles and 2 decimal places, along with the word ‘miles’ and direction (NW).<br />UAD‐24: The subject sales price must match the contract price in whole dollars.<br />UAD‐25: Data source for comparables must be given with the identifying number; then DOM must appear. If<br />not listed, enter numeral zero (0). If DOM is unknown, enter ‘Unk’.<br />UAD‐26: Indicate the sales type for each comparable property with the UAD abbreviation.<br />UAD‐27: Enter the financing type in UAD abbreviation; and total amount of concessions. If none, enter the<br />numeral zero (0). If other, indicate if sales transactions with below‐market financing are used for comparable<br />sales.<br />UAD‐28: Enter the status type abbreviation for the settlement date; followed by the contract date in mm/yy<br />format. Use ‘Unk’ if the contract date is unknown.<br />UAD‐29: Location rating must be N, B or A along with an abbreviated factor.<br />UAD‐30: Actual age for a new construction less than a year old should be (0) do not enter additional<br />information such as ‘years’. If actual age is unknown, estimate the age with a preceding tilde (~).<br />UAD‐31: Quality of construction rating (for the subject and comps) must be in UAD format; select one of the<br />following: Q1, Q2, Q3, Q4, Q5 or Q6.<br />UAD‐32: If no basement, enter (0) in the grid, otherwise indicate finished sq ft, do not indicate a % finished.<br />Type of access should be wo, wu or in. Then indicate the type of finished rooms by abbreviation or enter (0)<br />if there are no rooms of a particular type.<br />UAD‐33: Enter any energy efficient items or enter ‘None’.<br />UAD‐34: Off‐street parking spaces are to be entered on the garage/carport line or enter ‘None’.<br />UAD‐35: If no adjustment is warranted, enter a zero (0). When the features are the same, leave the field blank.<br />UAD‐36: Active listings must state ‘Active’ in the date field.<br />UAD‐37: Leave the supervisory appraiser field blank; do not enter N/A or none.<br />UAD‐38: AMC name should be entered in the Lender/Client section of the certification only<br /><br /><span style="font-weight:bold;">Interior/Exterior Complete Inspection Reports</span>:<br />Overall Condition Rating – The appraiser must select one of the following ratings<br />that best describes the overall condition of the subject property or unit. Only one selection is permitted. The rating for the subject property must match the overall condition rating that is reported in the<br />Sales Comparison Approach section.<br /> C1<br /> C2<br /> C3<br /> C4<br /> C5<br /> C6<br />The definitions for the ratings listed above are provided in Exhibit 1:<br /><br /><span style="font-weight:bold;">Level of Work Completed</span>:<br /> not updated<br /> updated<br /> remodeled<br />Definitions for the Level of Work Completed are provided in Exhibit 2:<br />Requirements – Definitions of Not Updated, Updated, and Remodeled.<br /><span style="font-weight:bold;">Timeframes</span>:<br /> less than one year ago<br /> one to five years ago<br /> six to ten years ago<br /> eleven to fifteen years ago<br /> timeframe unknownCarl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-64197149904613198082011-08-29T14:42:00.000-07:002011-09-13T07:54:50.996-07:00New Appraisal Guidelines moved back to Jan 1, 2012 for FHA/HUDOn Monday August 22nd, Mortgagee Letter 2011-30 announced that the deadline for the new Uniform Appraisal Dataset (UAD) requirements has been pushed back to January 1. It will apply to FHA financed purchases (with case numbers assigned on or after Jan 1), and all HUD real estate owned (REO) and Pre-Foreclosure Sale (PFS) properties with an effective date on or after January 1, 2012.<br /><br />The aim is to streamline the appraisal process and make appraisals more uniform. Appraisal management companies are working to teach and train appraisers to use the UAD, which will change the way appraisals are documented by setting standards throughout the appraisal process.<br /><br />The UAD is part of a larger effort toward improving the appraisal process. In addition, a Uniform Collateral Data Portal (UCDP) will enable lenders to submit appraisal report forms electronically. Either format may be used in advance of the January 1 implementation date.<br /><br />Previously, the implementation date for the UAD was set to September 1.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-74521553407119247532011-07-28T09:28:00.000-07:002011-07-28T10:07:33.102-07:00Upper-mid Range California Homes Market Softening<p>July 28 2011 - The demand for properties in the $650K-$750K space is now shrinking. We can expect softer prices ahead in Orange County, L.A., and the Bay Area. In San Diego, the impact extends down to $555K.</p><p>Why? Changes in the maximum loan limits for FHA and high balance conventional loans take effect in the weeks ahead. Filling the void are jumbo loans with higher rates (which require higher income to qualify) and higher down payments and reserves, which require substantially more assets.</p><p>For Los Angeles, Orange County, and the Bay Area the maximum loan limit for FHA and conventional (high-balance) lending is reduced to $625,500. For San Diego, it is $546,250.</p><p>Originally scheduled for Dec 31,2010, FHA loans need to fund by Sept 1, 2011 to allow time to insure by Oct 1, 2010. Conventional high balance loans must be originated before Sept 30, 2011.</p><p>Softer prices ahead in this part of the market spell opportunity for buyers who still qualify. Historically low interest rates remain in effect.</p>Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-23719702113791987542011-07-22T09:19:00.000-07:002011-07-22T09:27:30.573-07:00Appraisal Industry ChangesMany changes have occurred in the appraisal industry over the last two years with even more to come. The beginning of this year started with the start of Fin-Reg (in which the Consumer Finance Protection Bureau is now “open for business” with the last week) meaning fines are coming down quickly and hard. <br /> <br />Starting September 1, the way appraisers report their findings and the way they deliver a report will change. UAD stands for Uniform Appraisal Dataset which is the first part in a series of changes for how the overall loan is delivered to the GSE’s. They are doing this to make the appraisals more standardized as to what an appraiser might consider good condition in Texas is vastly different than what an appraiser in Connecticut might think. There are a total of 72 additions to the form with 60 being mandatory and 12 being optional. Phrases like neutral, beneficial and adverse will become standard. Very Good, Good and Average will be replaced in condition and quality fields with a 1 through 6 rating with 1 being exceptional and 6 being horrible. Appraisals will also have to be delivered in both a pdf and xml format. The appraisal software companies have started to release the UAD reports now with the xml capabilities within a week. <br /> <br />Some of the important changes are <br /><br />1) FHA and VA are also using the UAD reports but not the delivery method<br /><br />2) Appraisals MUST be sent to the GSE’s before the loan for conventional and jumbo loans (Not FHA or VA) <br /><br />3) If the lender orders a field review that review is sent with the loan and not the original appraisal<br /><br />4) If an appraisal is sent to the GSE’s in the new format incorrectly it will be kicked out and deemed unacceptable<br /><br />5) GSE’s wont accept a C5 or a C6 rating for condition<br /><br />6) Any C6 issue makes the whole property a C6 rating unless subject to repair<br /><br />Make no mistake, these are major changes in the appraisal world in both reporting and technology. <br /><br />Here is a link to a webinar if you would like to familiarize yourself with the changes. <br /><br />http://fanniemae.articulate-online.com/ContentRegistration.aspx?DocumentID=77856aa3-4df3-4e13-895b-4e71b79a7ed7&Cust=77787&ReturnUrl=/p/7778730514Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-1438441237906707722011-06-07T08:41:00.000-07:002011-06-07T08:44:27.442-07:00Fannie Mae and Freddie Mac Wind-down!In February 2011, the Treasury department unveiled its plan to wind down GSE’s Fannie Mae and Freddie Mac. The Treasury also wants to see 10% down payments from potential borrowers.<br />This has sparked concern within the real estate industry and among those who recognize the importance of a healthy real estate market to the nation’s economic recovery.<br />Perception that these changes will take place overnight are unfounded. <br />Treasury Secretary Geithner has predicted a 5 to 7 year timeline for implementation.<br />Federal Reserve Chairman Lacker has declared that any near-term moves could be too destructive to the housing sector.<br />On February 9th, 2011 the House Financial Services Subcommittee held a hearing on GSE’s.<br />Meanwhile, on another front, Republican legislators have released 8 bills intended to accelerate the process of winding down Fannie Mae and Freddie Mac and increase oversight, promising more to follow. <br />These include H.R.1859, which would schedule a reduction of portfolio retained from over 700 billion currently to 250 billion in 5 years, and require a 20% down payment 1st mortgage (allowing a 10% seller-carry-back second). The bill calls for the eventual complete replacement of Fannie Mae and Freddie Mac with ”housing financing guaranty associations”. Another bill aims to end all affordable housing goals set by Fannie Mae and Freddie Mac. A hearing was held in the Financial Services Subcommittee on May 25th. The Subcommittee is likely to hold a markup of the bills sometime in June (except H.R. 1859, for which no promise to hold a future hearing or markup was made).Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-6927196805406378542011-03-08T17:11:00.000-08:002011-03-08T17:16:25.306-08:00USDA Changes Fees for Rural Development LoanThe U.S. Department of Agriculture (USDA) has issued an Administrative Notice (AN) shifting a portion of the upfront fee it charges for the Single Family Housing Guaranteed Loan Program (SFHGLP) to the annual fee. <br /><br />The two fees are an attempt to make the popular loan program self-sustaining and to eliminate or at least minimize the frequent interruptions suffered by the program. <br /><br />When the bill was passed an upfront fee of the full 3.5 percent rate authorized by Congress was put into effect. The AN issued on February 3, notifies lenders that USDA will be lowering the upfront fee to 2 percent of the loan amount and implementing an annual fee of 0.3 of the unpaid principal balance for all purchase loan transactions. The changes will go into effect on October 1, 2011.<br /><br />The SFHGP ran through its $13.1 billion program funding early in 2010 and home buyers encountered long delays in completing their purchases until Congress reauthorized additional funding in late July. Depleted funding had been a nearly annual occurrence for the program that guarantees loans for single family homes in designated exurban and rural areas. <br /><br />According to the AN, "the intent of the annual fee is to make the SHHGLP subsidy neutral, thus eliminating the need for taxpayer support of the program." <br /><br />The program is popular with borrowers because of a low required down payment and with lenders because of the 90 percent government guarantee and because the loan size is limited to 115 percent of the area's median income.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0tag:blogger.com,1999:blog-270731114334229626.post-35628163824182251212011-02-28T09:56:00.000-08:002011-02-28T10:02:53.274-08:00FHA Flipping Waiver extended to 12/31/2011FHA Flipping Rule Limitations<br /><br />Waiver has been extended to 12/31/2011.<br /><br />The waiver to the FHA flipping rule is limited to those sales meeting the following general conditions:<br /><br /> * All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.<br /> * In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the sale meets specific lender conditions. (Typically, these will include a copy of the HUD-1 from the previous closing. If more than 20% markup, copies of receipts and contracts for rehabilitation.)<br /><br />Conventional loans flipping rules will vary from investor to investor, 90 days from purchase is generally required.Carl Snyderhttp://www.blogger.com/profile/15447921227946620617noreply@blogger.com0