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Thursday, October 21, 2010
Friday, October 15, 2010
CA Realtors forecast slight rise in home sales for 2011
Great article in the paper today:
The California Association of Realtors expects the state's existing home sales market to end 2010 on a down note, with only modest improvement next year.
By the close of this year, sales of existing single-family homes will have declined 10 percent compared with 2009, CAR predicted Monday in its 2011 California Housing Market Forecast. Los Angeles-based CAR forecast only a 2 percent gain in 2011.
CAR projected 2010 sales statewide to come in at 492,000, compared with 546,500 in 2009. It forecast 502,000 sales in 2011.
CAR also predicted an increase in median home sale prices. After two consecutive years of record price declines, CAR said the median home price in California will climb 11.5 percent to $306,500 for 2010, and increase another 2 percent in 2011 to $312,500.
"As the U.S. economy continues its tepid recovery, we'll see some improvement in California's economy," said CAR Chief Economist Leslie Appleton-Young. "We expect a net jobs increase of approximately 1.4 million jobs in California for the year to come and an improvement in unemployment figures."
Kris Vogt, president of the Coldwell Banker Residential Brokerage's Sacramento-Tahoe regional office, said he also was cautiously optimistic about 2011.
"I think the fact that we finally have a state budget might help with some confidence, along with low interest rates and (home) affordability at historic levels," Vogt said. "I think these are things consumers can really step into, and that will be good for 2011."
Even so, 2011 projections fall far short of pre-recession totals. In 2005, for example, statewide sales of existing homes totaled 625,000, with a median price of $522,700.
CAR President Steve Goddard believes troubled properties will play a role in helping the market climb out of the hole in 2011.
"Distressed properties will figure prominently in the market next year, but we also expect to see discretionary sellers play a larger role," he said, adding later, "The segment of the market under $500,000 has been driven by distressed sales, while higher-priced areas of the state have been constrained by restricted financing options."
"A lean supply of available homes for sale will drive prices up at the low end," Appleton-Young noted.
"But larger inventories and limited, less-attractive financing will cause continued softness at the high end. … The wild cards for 2011 include federal housing policies, actions of underwater homeowners and the strength of the economic recovery."
The California Association of Realtors expects the state's existing home sales market to end 2010 on a down note, with only modest improvement next year.
By the close of this year, sales of existing single-family homes will have declined 10 percent compared with 2009, CAR predicted Monday in its 2011 California Housing Market Forecast. Los Angeles-based CAR forecast only a 2 percent gain in 2011.
CAR projected 2010 sales statewide to come in at 492,000, compared with 546,500 in 2009. It forecast 502,000 sales in 2011.
CAR also predicted an increase in median home sale prices. After two consecutive years of record price declines, CAR said the median home price in California will climb 11.5 percent to $306,500 for 2010, and increase another 2 percent in 2011 to $312,500.
"As the U.S. economy continues its tepid recovery, we'll see some improvement in California's economy," said CAR Chief Economist Leslie Appleton-Young. "We expect a net jobs increase of approximately 1.4 million jobs in California for the year to come and an improvement in unemployment figures."
Kris Vogt, president of the Coldwell Banker Residential Brokerage's Sacramento-Tahoe regional office, said he also was cautiously optimistic about 2011.
"I think the fact that we finally have a state budget might help with some confidence, along with low interest rates and (home) affordability at historic levels," Vogt said. "I think these are things consumers can really step into, and that will be good for 2011."
Even so, 2011 projections fall far short of pre-recession totals. In 2005, for example, statewide sales of existing homes totaled 625,000, with a median price of $522,700.
CAR President Steve Goddard believes troubled properties will play a role in helping the market climb out of the hole in 2011.
"Distressed properties will figure prominently in the market next year, but we also expect to see discretionary sellers play a larger role," he said, adding later, "The segment of the market under $500,000 has been driven by distressed sales, while higher-priced areas of the state have been constrained by restricted financing options."
"A lean supply of available homes for sale will drive prices up at the low end," Appleton-Young noted.
"But larger inventories and limited, less-attractive financing will cause continued softness at the high end. … The wild cards for 2011 include federal housing policies, actions of underwater homeowners and the strength of the economic recovery."
NAR’s HouseLogic Launches Campaign to Help Military Families Sustain Homeownership
NAR’s HouseLogic Launches Campaign to Help Military Families Sustain Homeownership
Washington, October 11, 2010
The National Association of Realtors®’ HouseLogic, a free, comprehensive consumer website about all aspects of homeownership, today launched Operation Home Relief, a new Facebook Causes campaign. The campaign aims to increase awareness, rally support and raise funding for USA Cares, a nonprofit organization that provides counseling and financial foreclosure assistance to post-9/11 active duty U.S. military service personnel, veterans and their families.
HouseLogic will donate $1 to USA Cares every time someone “likes” the Operation Home Relief Cause page on Facebook and will match individual donations made to the cause, up to $20,000.
“Owning a home is part of the American dream, where we make memories, build our futures, and feel comfortable and secure; and any family who loses that dream to foreclosure is one family too many,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “HouseLogic’s Operation Home Relief aims to help sustain homeownership for military families who have already given so much to support our country, and we hope others will join together with us to support this worthy cause.”
When people lose homes to foreclosure, the community, the housing market and the economy all suffer. HouseLogic’s Foreclosure Guide highlights personal stories and offers information and tips to help homeowners facing foreclosure make smart, proactive decisions about what steps to take, where to find help and the alternatives to foreclosure. The guide also includes ideas for how others can get involved to combat foreclosures in their community.
“U.S. military service members bravely face danger around the world every day on behalf of all Americans. Yet, some military service members and their families also face financial dangers and hardships at home,” said William H. Nelson, executive director, USA Cares. “USA Cares’ sole mission is to help these service members and their families in their time of financial need. To that end, we’re excited to have the support of HouseLogic and the National Association of Realtors®. Their new Facebook Causes campaign highlights the work USA Cares is doing, reminding Americans of the many challenges faced by U.S. military service members and their families, and generates support via Facebook for the help that we’re offering every day.”
For more information on sustaining homeownership, and many other housing topics, visit HouseLogic at www.houselogic.com.
HouseLogic is a free source of information and tools for homeowners from the National Association of Realtors® that helps homeowners make smart decisions about all aspects of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.
USA Cares is a nonprofit 501(c)3 organization that helps post-9/11 military and their families with basic needs, assists veterans suffering from post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI) and their families and works to prevent private military home foreclosures and evictions. In seven years, USA Cares has received over 24,000 requests and responded with more than $7 million in grants. Military families anywhere in America can apply for assistance through the USA Cares web site, www.usacares.org or by calling 800-773-0387. For more information on USA Cares contact John Revell, jrevell@usacares.org or call 270-352-5451.
Washington, October 11, 2010
The National Association of Realtors®’ HouseLogic, a free, comprehensive consumer website about all aspects of homeownership, today launched Operation Home Relief, a new Facebook Causes campaign. The campaign aims to increase awareness, rally support and raise funding for USA Cares, a nonprofit organization that provides counseling and financial foreclosure assistance to post-9/11 active duty U.S. military service personnel, veterans and their families.
HouseLogic will donate $1 to USA Cares every time someone “likes” the Operation Home Relief Cause page on Facebook and will match individual donations made to the cause, up to $20,000.
“Owning a home is part of the American dream, where we make memories, build our futures, and feel comfortable and secure; and any family who loses that dream to foreclosure is one family too many,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “HouseLogic’s Operation Home Relief aims to help sustain homeownership for military families who have already given so much to support our country, and we hope others will join together with us to support this worthy cause.”
When people lose homes to foreclosure, the community, the housing market and the economy all suffer. HouseLogic’s Foreclosure Guide highlights personal stories and offers information and tips to help homeowners facing foreclosure make smart, proactive decisions about what steps to take, where to find help and the alternatives to foreclosure. The guide also includes ideas for how others can get involved to combat foreclosures in their community.
“U.S. military service members bravely face danger around the world every day on behalf of all Americans. Yet, some military service members and their families also face financial dangers and hardships at home,” said William H. Nelson, executive director, USA Cares. “USA Cares’ sole mission is to help these service members and their families in their time of financial need. To that end, we’re excited to have the support of HouseLogic and the National Association of Realtors®. Their new Facebook Causes campaign highlights the work USA Cares is doing, reminding Americans of the many challenges faced by U.S. military service members and their families, and generates support via Facebook for the help that we’re offering every day.”
For more information on sustaining homeownership, and many other housing topics, visit HouseLogic at www.houselogic.com.
HouseLogic is a free source of information and tools for homeowners from the National Association of Realtors® that helps homeowners make smart decisions about all aspects of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.
USA Cares is a nonprofit 501(c)3 organization that helps post-9/11 military and their families with basic needs, assists veterans suffering from post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI) and their families and works to prevent private military home foreclosures and evictions. In seven years, USA Cares has received over 24,000 requests and responded with more than $7 million in grants. Military families anywhere in America can apply for assistance through the USA Cares web site, www.usacares.org or by calling 800-773-0387. For more information on USA Cares contact John Revell, jrevell@usacares.org or call 270-352-5451.
Sunday, October 10, 2010
Mortgage Foreclosure Hault Widens as BofA extends freeze to 50 states
Bank of America has now widened it’s mortgage foreclosure halt from 23 to all 50 states. This follows as a growing number of mortgage lenders, such as GMAC Mortgage and JPMorgan Chase, have put a stop to foreclosures. Reports of problems involving paperwork and a lack of review of cases may have led to homeowners being evicted illegally. Some 40 state attorney generals are now investigating. The foreclosure halt by Bank of America in all 50 states is just the latest result of the subprime fiasco which now includes bank employees robo-signing and foreclosures being processed without proper documentation. The number of home foreclosures third quarter 2010 could be far worse than those in 2009.
One of the principle issues involved is whether or not the banks initiating the foreclosures are the actual mortgage holder? During the ‘hey-day’ of the housing boom, subprime mortgages were handed out like candy on Halloween to just about anybody. To cover these loans, banks would often sell the paper to another institution. Many ultimately were acquired by either Fannie Mae or Freddie Mac, who control a vast majority of all home mortgages.
Bank of America is the largest lender in the United States. They, along with JP Morgan Chase and Ally Bank, as well as others, first halted foreclosures in 23 states due to these problems with documentation and possible ‘robo-signing’ by employees without actually reading and reviewing the paperwork. With record numbers of home foreclosures being processed by banks through the courts, the potential for errors, false data and other issues increases.
Bank of America has now widened it’s mortgage foreclosure halt from 23 to all 50 states. There is no word yet if other lenders, such as GMAC Mortgage and JPMorgan Chase, will also extend their moratoriums on foreclosures. Some 40 state attorney generals are now investigating the legality of procedures used. The foreclosure halt by Bank of America in all 50 states is just the latest result of the subprime fiasco which now includes bank employees robo-signing and foreclosures being processed without proper documentation. The number of home foreclosures third quarter 2010 could be far worse than those in 2009.
One of the principle issues involved is whether or not the banks initiating the foreclosures are the actual mortgage holder? During the ‘hey-day’ of the housing boom, subprime mortgages were handed out like candy on Halloween to just about anybody. To cover these loans, banks would often sell the paper to another institution. Many ultimately were acquired by either Fannie Mae or Freddie Mac, who control a vast majority of all home mortgages.
Bank of America is the largest lender in the United States. They, along with JP Morgan Chase and Ally Bank, as well as others, first halted foreclosures in 23 states due to these problems with documentation and possible ‘robo-signing’ by employees without actually reading and reviewing the paperwork. With record numbers of home foreclosures being processed by banks through the courts, the potential for errors, false data and other issues increases.
Bank of America has now widened it’s mortgage foreclosure halt from 23 to all 50 states. There is no word yet if other lenders, such as GMAC Mortgage and JPMorgan Chase, will also extend their moratoriums on foreclosures. Some 40 state attorney generals are now investigating the legality of procedures used. The foreclosure halt by Bank of America in all 50 states is just the latest result of the subprime fiasco which now includes bank employees robo-signing and foreclosures being processed without proper documentation. The number of home foreclosures third quarter 2010 could be far worse than those in 2009.
Friday, October 8, 2010
State Tax Payment Plans Available
SACRAMENTO – The Franchise Tax Board (FTB) advised taxpayers dealing with income tax liabilities to contact
FTB for assistance if they are unable to pay on time.
For people experiencing a financial hardship and cannot pay what they owe, FTB specialists can establish payment
plans, grant temporary relief from state tax liens, or, in some cases, delay collection actions. FTB generally approves
installment payment requests if the balance owed is less than $25,000 and can be paid within 60 months.
FTB can generally grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell
or refinance their homes. When a home sells for less than the loan balance, FTB can sometimes remove its tax lien
from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate
escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.
FTB can help people refinancing or modifying an existing home loan. Homeowners can request that FTB allow the
new or modified loan to have priority over the tax lien. This allows prior home loans to be refinanced or modified
without first having to pay the lien.
More information is available at FTB’s website, ftb.ca.gov, including ways to help taxpayers resolve their accounts
through installment agreement requests. For lien information, look under the "Bills and Notices" tab and then under
the Earnings Withholding and Collections Action section, select: Individuals - Liens.
Taxpayers who cannot resolve their accounts online should call the phone number listed on their billing notices. Those
without Internet service may request an installment agreement payment plan by calling FTB at 800.689.4776, Monday
through Friday, between 8 a.m. and 5 p.m.
Partial Release & Subordination of State Tax Liens
Partial Release
A partial release of lien releases a state tax lien from a specific piece of property. However, the lien remains in effect
and will encumber the transfer of title of any other properties owned or subsequently acquired by the taxpayer.
Reasons to request a partial release of lien include a need to transfer the rights to the property when there are
insufficient funds to fully satisfy the state tax lien or the party with the lien has no rights to title of the property.
Subordination
A subordination of a lien is not the same as a release of lien . The lien remains in effect; however, a subordination of
lien lowers the priority in favor of some other lien against the property. The lien remains in effect and will encumber
the sale of the specified property and any other property owned or acquired by the taxpayer. Typical situations are the
refinance of a loan and there are insufficient funds to fully satisfy the state tax lien or the existing loan is being
modified.
Requesting Partial Release or Subordination
Individual or business entity, call 916.845.4350. If determined that a partial release of lien or subordination
of a lien is warranted, you will be asked to submit the following:
1. Letter of explanation detailing your request.
2. Estimated closing statement.
3. Current preliminary title report that includes the legal description of the property.
4. Current appraisal.
5. Copies of all other liens and encumbrances.
6. Documentation to substantiate all lien payoffs through this escrow.
7. Copy of the new deed of trust (for subordination requests only).
Additional documentation may be needed to complete your request.
Send your request by overnight mail to:
LIEN RESOLUTION UNIT MS A317
FRANCHISE TAX BOARD
SACRAMENTO CA 95827
Phone Numbers:
For Individuals:
800.689.4776 or 916.845.4470
Fax Number: 916.845.4389
For Business Entities:
Entity Type Phone Number
• Corporations 888.635.0494 or 916.845.7033
• Partnerships 888.635.0494 or 916.845.7166
• Limited Liability Companies 888.635.0494 or 916.845.7166
FTB for assistance if they are unable to pay on time.
For people experiencing a financial hardship and cannot pay what they owe, FTB specialists can establish payment
plans, grant temporary relief from state tax liens, or, in some cases, delay collection actions. FTB generally approves
installment payment requests if the balance owed is less than $25,000 and can be paid within 60 months.
FTB can generally grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell
or refinance their homes. When a home sells for less than the loan balance, FTB can sometimes remove its tax lien
from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate
escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.
FTB can help people refinancing or modifying an existing home loan. Homeowners can request that FTB allow the
new or modified loan to have priority over the tax lien. This allows prior home loans to be refinanced or modified
without first having to pay the lien.
More information is available at FTB’s website, ftb.ca.gov, including ways to help taxpayers resolve their accounts
through installment agreement requests. For lien information, look under the "Bills and Notices" tab and then under
the Earnings Withholding and Collections Action section, select: Individuals - Liens.
Taxpayers who cannot resolve their accounts online should call the phone number listed on their billing notices. Those
without Internet service may request an installment agreement payment plan by calling FTB at 800.689.4776, Monday
through Friday, between 8 a.m. and 5 p.m.
Partial Release & Subordination of State Tax Liens
Partial Release
A partial release of lien releases a state tax lien from a specific piece of property. However, the lien remains in effect
and will encumber the transfer of title of any other properties owned or subsequently acquired by the taxpayer.
Reasons to request a partial release of lien include a need to transfer the rights to the property when there are
insufficient funds to fully satisfy the state tax lien or the party with the lien has no rights to title of the property.
Subordination
A subordination of a lien is not the same as a release of lien . The lien remains in effect; however, a subordination of
lien lowers the priority in favor of some other lien against the property. The lien remains in effect and will encumber
the sale of the specified property and any other property owned or acquired by the taxpayer. Typical situations are the
refinance of a loan and there are insufficient funds to fully satisfy the state tax lien or the existing loan is being
modified.
Requesting Partial Release or Subordination
Individual or business entity, call 916.845.4350. If determined that a partial release of lien or subordination
of a lien is warranted, you will be asked to submit the following:
1. Letter of explanation detailing your request.
2. Estimated closing statement.
3. Current preliminary title report that includes the legal description of the property.
4. Current appraisal.
5. Copies of all other liens and encumbrances.
6. Documentation to substantiate all lien payoffs through this escrow.
7. Copy of the new deed of trust (for subordination requests only).
Additional documentation may be needed to complete your request.
Send your request by overnight mail to:
LIEN RESOLUTION UNIT MS A317
FRANCHISE TAX BOARD
SACRAMENTO CA 95827
Phone Numbers:
For Individuals:
800.689.4776 or 916.845.4470
Fax Number: 916.845.4389
For Business Entities:
Entity Type Phone Number
• Corporations 888.635.0494 or 916.845.7033
• Partnerships 888.635.0494 or 916.845.7166
• Limited Liability Companies 888.635.0494 or 916.845.7166
Thursday, October 7, 2010
Fannie Mae Extends Alternative Modification Program
The latest in a string of government extensions is an extension to Fannie Mae’s Alternative Modification (Alt Mod) to the Home Affordable Modification Program (HAMP).
The extension is being provided so servicers will have enough time to complete the processing of modifications for borrowers who meet the eligibility requirements for the Alt Mod program, which remain the same.
In Lender Letter LL-2010-04, Fannie Mae introduced the Alt Mod program for borrowers who were eligible for and
accepted into a HAMP trial period, and made all trial payments, but were not offered a permanent modification because of eligibility restrictions.
Fannie Mae requires that servicers consider the Alt Mod program for any eligible borrower before proceeding with foreclosure.
In addition to HAMP evaluation and fulfillment of trial payments, borrowers must meet one of the following requirements to be considered eligible:
• The monthly average mortgage payment ratio based on verified income was less than 31 percent.
• The target monthly mortgage payment ratio of 31 percent based on verified income could not be reached using the standard HAMP modification waterfall.
• The borrower failed to provide all income documentation required for a HAMP modification but meets the streamlined income documentation requirements outlined by Fannie.
The extension was announced September 30 and will allow servicers until November 30, 2010 to submit their Alt Mod cases.
Tuesday, October 5, 2010
B of A out of Wholesale Lending - see today's news
BofA unexpectedly exits wholesale mortgage market
Local mortgage brokers caught totally unawares; departure of second such huge lender leaves big gap.
--------------------------------------------------------------------------------
By Amanda Fung
Published: October 5, 2010 - 5:15 pm
Bank of America Corp. has exited the wholesale residential lending market, cutting off its business with mortgage brokers, the bank announced Tuesday.
The move came as a surprise to local mortgage providers who did business with the Charlotte, N.C.-based bank. It means that mortgage brokers and their clients will have one less option when they are looking for a loan to buy a condo or co-op in the city.
“We used them a lot for condo sales,” said Ross Weinstein, managing partner at Exclusive Capital Consultants. “Now we will have to move that business to other lenders.”
A BofA spokesperson said, given the opportunity in retail business, the bank preferred “to reallocate its resources to its retail channel and correspondent lending channel.” Less than 5% of the mortgages that the bank annually made came from its wholesale channel. In just the first six months of the year, BofA originated $145 billion in mortgages, according to trade publication Inside Mortgage Finance.
Loan applications via the wholesale lending channel were accepted through the end of the business day on Tuesday and must close by Dec. 1.
“This was not expected,” said Melissa Cohn, president of Manhattan Mortgage, adding that the bank had scheduled a conference for top mortgage brokers in the New York area and had abruptly cancelled it. “We were caught flat-footed.”
BofA's exit follows a similar move by J.P. Morgan Chase & Co., which got out of the wholesale lending business last year.
"It's another way for banks to cut back," Mr. Weinstein said.
Local mortgage brokers caught totally unawares; departure of second such huge lender leaves big gap.
--------------------------------------------------------------------------------
By Amanda Fung
Published: October 5, 2010 - 5:15 pm
Bank of America Corp. has exited the wholesale residential lending market, cutting off its business with mortgage brokers, the bank announced Tuesday.
The move came as a surprise to local mortgage providers who did business with the Charlotte, N.C.-based bank. It means that mortgage brokers and their clients will have one less option when they are looking for a loan to buy a condo or co-op in the city.
“We used them a lot for condo sales,” said Ross Weinstein, managing partner at Exclusive Capital Consultants. “Now we will have to move that business to other lenders.”
A BofA spokesperson said, given the opportunity in retail business, the bank preferred “to reallocate its resources to its retail channel and correspondent lending channel.” Less than 5% of the mortgages that the bank annually made came from its wholesale channel. In just the first six months of the year, BofA originated $145 billion in mortgages, according to trade publication Inside Mortgage Finance.
Loan applications via the wholesale lending channel were accepted through the end of the business day on Tuesday and must close by Dec. 1.
“This was not expected,” said Melissa Cohn, president of Manhattan Mortgage, adding that the bank had scheduled a conference for top mortgage brokers in the New York area and had abruptly cancelled it. “We were caught flat-footed.”
BofA's exit follows a similar move by J.P. Morgan Chase & Co., which got out of the wholesale lending business last year.
"It's another way for banks to cut back," Mr. Weinstein said.
Friday, October 1, 2010
Faulty Foreclosures May Prolong the Slump
Faulty Foreclosures May Prolong the Slump
Probes of whether lenders followed the rules could halt seizures, and that could keep the real estate market from finding its bottom
Howard Cohen hasn't paid the loan on his Tukwila (Wash.) home in a year, and when he heard in mid-September that Ally Financial's (GJM) GMAC Mortgage unit was suspending foreclosure evictions in 23 states, it gave him hope. "Maybe I'll stay in my house, too," says Cohen, a 57-year-old commercial-loan broker whose business fell off after the financial crisis. Cohen was encouraged even though his mortgage servicer, Bank of America (BAC), hasn't reported any irregularities.
Attorneys general in Iowa, Illinois, and Texas started investigating Ally's GMAC unit after it disclosed that one of its employees said in a December 2009 deposition that he had signed thousands of foreclosure documents without verifying their accuracy. The company also faces inquiries from officials in Ohio, Colorado, and North Carolina. A JPMorgan Chase (JPM) executive has said she signed thousands of documents without checking loan records, according to a deposition she made in a court case in Palm Beach, Fla., in May. JPMorgan spokesman Thomas Kelly declined to comment. On Sept. 29 the bank asked judges to postpone rulings in pending foreclosure cases while it reviews and possibly resubmits statements.
"Regrettably, a procedural error was found to have occurred in certain affidavits required in certain states," GMAC said in a Sept. 24 statement, adding that the problem "is not related to the accuracy of the underlying transaction." The "error" was the employee's failure to sign the documents in the presence of a notary public or signing them without "direct personal knowledge of all the information," GMAC said. The U.S. government, which has been pressing lenders to reduce foreclosures as evictions hit record levels, owns 56 percent of Detroit-based Ally. The company, formerly known as GMAC, has benefited from more than $17 billion in bailouts.
No one can say how widespread the problems are. "The suspicion is that there might have been shortcuts taken by every mortgage servicer who had extraordinary numbers of foreclosure documents to go through," says Rick Sharga, senior vice-president at RealtyTrac, a housing data provider in Irvine, Calif. In August, lenders took possession of a record 95,364 homes and issued foreclosure notices to 338,836 homeowners, according to RealtyTrac.
If uncovering deficiencies halts thousands of pending foreclosures or voids ones that have already taken place, the courts could be tied up with cases for years, says Stuart Saft, a partner at New York-based Dewey & LeBoeuf. That could further postpone a recovery. "You can't get the economy moving until this whole situation gets straightened out," Saft says. "Dragging out foreclosures doesn't help."
"Shadow Inventory" Problem
The foreclosure foul-ups highlight the "shadow inventory" problem—the vast number of homes now in default or foreclosure that may flood the market, further depressing prices. "Buyers know [prices haven't] hit bottom," says Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez, a New York forecasting firm. "So they're sitting on the sidelines."
In the 23 states where judges must approve foreclosures, the average time between borrowers falling behind and sales of their properties has climbed to almost 25 months from fewer than 18 at the start of 2007, according to data compiled by Austin (Tex.)-based Amherst Securities. The increasing time between default and foreclosure may encourage more homeowners to stop paying, says Cameron Findlay, chief economist at LendingTree.com (TREE) in Irvine, Calif. Overwhelmed lenders are likely to address the worst cases first, leaving many delinquent borrowers in their homes for longer periods, he says.
Other paperwork problems could also keep homeowners in limbo. Cohen, who is 12 months behind on his mortgage payments, says he's been trying to negotiate a loan modification. He anticipates difficulties down the road, he says, because "nobody can tell me who owns my mortgage."
The bottom line: Problems with the paperwork surrounding foreclosures threaten to delay the housing recovery and prolong the economic slump.
Probes of whether lenders followed the rules could halt seizures, and that could keep the real estate market from finding its bottom
Howard Cohen hasn't paid the loan on his Tukwila (Wash.) home in a year, and when he heard in mid-September that Ally Financial's (GJM) GMAC Mortgage unit was suspending foreclosure evictions in 23 states, it gave him hope. "Maybe I'll stay in my house, too," says Cohen, a 57-year-old commercial-loan broker whose business fell off after the financial crisis. Cohen was encouraged even though his mortgage servicer, Bank of America (BAC), hasn't reported any irregularities.
Attorneys general in Iowa, Illinois, and Texas started investigating Ally's GMAC unit after it disclosed that one of its employees said in a December 2009 deposition that he had signed thousands of foreclosure documents without verifying their accuracy. The company also faces inquiries from officials in Ohio, Colorado, and North Carolina. A JPMorgan Chase (JPM) executive has said she signed thousands of documents without checking loan records, according to a deposition she made in a court case in Palm Beach, Fla., in May. JPMorgan spokesman Thomas Kelly declined to comment. On Sept. 29 the bank asked judges to postpone rulings in pending foreclosure cases while it reviews and possibly resubmits statements.
"Regrettably, a procedural error was found to have occurred in certain affidavits required in certain states," GMAC said in a Sept. 24 statement, adding that the problem "is not related to the accuracy of the underlying transaction." The "error" was the employee's failure to sign the documents in the presence of a notary public or signing them without "direct personal knowledge of all the information," GMAC said. The U.S. government, which has been pressing lenders to reduce foreclosures as evictions hit record levels, owns 56 percent of Detroit-based Ally. The company, formerly known as GMAC, has benefited from more than $17 billion in bailouts.
No one can say how widespread the problems are. "The suspicion is that there might have been shortcuts taken by every mortgage servicer who had extraordinary numbers of foreclosure documents to go through," says Rick Sharga, senior vice-president at RealtyTrac, a housing data provider in Irvine, Calif. In August, lenders took possession of a record 95,364 homes and issued foreclosure notices to 338,836 homeowners, according to RealtyTrac.
If uncovering deficiencies halts thousands of pending foreclosures or voids ones that have already taken place, the courts could be tied up with cases for years, says Stuart Saft, a partner at New York-based Dewey & LeBoeuf. That could further postpone a recovery. "You can't get the economy moving until this whole situation gets straightened out," Saft says. "Dragging out foreclosures doesn't help."
"Shadow Inventory" Problem
The foreclosure foul-ups highlight the "shadow inventory" problem—the vast number of homes now in default or foreclosure that may flood the market, further depressing prices. "Buyers know [prices haven't] hit bottom," says Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez, a New York forecasting firm. "So they're sitting on the sidelines."
In the 23 states where judges must approve foreclosures, the average time between borrowers falling behind and sales of their properties has climbed to almost 25 months from fewer than 18 at the start of 2007, according to data compiled by Austin (Tex.)-based Amherst Securities. The increasing time between default and foreclosure may encourage more homeowners to stop paying, says Cameron Findlay, chief economist at LendingTree.com (TREE) in Irvine, Calif. Overwhelmed lenders are likely to address the worst cases first, leaving many delinquent borrowers in their homes for longer periods, he says.
Other paperwork problems could also keep homeowners in limbo. Cohen, who is 12 months behind on his mortgage payments, says he's been trying to negotiate a loan modification. He anticipates difficulties down the road, he says, because "nobody can tell me who owns my mortgage."
The bottom line: Problems with the paperwork surrounding foreclosures threaten to delay the housing recovery and prolong the economic slump.
Thursday, September 30, 2010
FHA Up Front and Monthly MIP Changes happening on 10-04-2010
Time is running out to secure the lower monthly FHA premiums!
FHA is increasing their monthly premium starting October 4th!
Click on the title above for the actual FHA Mortgagee Newsletter!
Wednesday, September 29, 2010
Article from DS NEWS that offers some hope
New Bill Calls for Refinancing of 30 Million GSE Mortgages
By: Carrie Bay 09/28/2010
Legislation to stabilize the foreclosure crisis through the federal government’s conservatorship of Fannie Mae and Freddie Mac was introduced in the U.S. House of Representatives Tuesday by Congressman Dennis Cardoza (D-California).
The Housing Opportunity and Mortgage Equity (HOME) Act would require Fannie and Freddie to allow borrowers to refinance their mortgages by locking in today’s record-low interest rates for longer fixed-term loans. The legislation would affect up to 30 million mortgages held or backed by the two GSEs.
To fund the program, Fannie and Freddie would issue new mortgage-backed securities (MBS) to fund the refinanced mortgages and use the proceeds to pay off the existing mortgages.
Fannie and Freddie would receive the same cash flow to cover default risk that they do now, passing along the reductions in financing costs to borrowers. Borrowers that qualify for the program would be able to refinance without facing penalty fees.
According to Rep. Cardoza, the measure would help stabilize the housing market by decreasing the inventory of foreclosed homes and reducing declines in property values from issues surrounding blight and abandonment.
At the same time, he argues that those with mortgages backed by Fannie and Freddie would have additional disposable income, providing a direct economic stimulus.
“No solution to date has addressed both foreclosure prevention and the decline of home equity, Cardoza said in a statement. “The reality is the housing crisis has spread far beyond the subprime market, hindering our economic recovery.”
Cardoza criticized the administration’s current housing programs for not being strong enough to make a dent in the worst foreclosure crisis in U.S. history.
“Until we see a program that cuts to the heart of the recession, we will continue to see little growth in our economy, families losing their homes, and lifetime investments with lost equity,” Cardoza said.
The legislation was initially introduced in January 2009. It has been modified based on new input Cardoza received from the House Financial Services Committee and several well-reputed economists, including Christopher Mayer, senior vice dean of Columbia Business School, and Mark Zandi, chief economist for Moody’s Analytics.
Cardoza says the proposal has gained increased interest as more economists realize that measures aimed at addressing the foreclosure meltdown have not been sufficient.
“If we allow housing to go into a free fall, everyone loses: taxpayers will have more bailouts, homeowners will watch their homes continue to decline in value, local communities will struggle to fund their schools. Everyone loses,” Mayer said. “Housing is an important part of what is holding back the economy. The government has a chance to help housing without harming the deficit. We should take it.”
Zandi added, “With mortgage rates near record lows, the quickest and most effective way policymakers can help the economy is to facilitate more mortgage refinancing. The HOME Act does this at little or no cost to taxpayers.”
©2010 DS News. All Rights Reserved.
Saturday, September 25, 2010
The Pre-Approval Process
In our last 3 Insider Mortgage Tips we discussed the
3 components lenders look at in order to make a determination
of your ability to obtain a mortgage.
In this Insider Mortgage Secrets Tip, we will discuss the
process of getting approved for a loan BEFORE you start
shopping for your new home.
Do You Have A Thousand Dollars To Simply Throw Away?
I know this may sound like a very silly question but that
is exactly what happens every day to unsuspecting buyers
who do not get pre-approved for a loan BEFORE they go
house hunting.
Let me explain with a typical scenario...
You decide it is time to move so you find a realtor and
start looking for a home. After some house hunting you
find the perfect home and make an offer which is accepted.
Now you must meet with a lender to obtain a mortgage for
this home. When you apply for your loan the lender will
request a check for the appraisal and credit report. It is
also a very good idea to have your home inspected. This is
another fee that you will be required to pay for when the
service is rendered.
So, approximately 7 to 10 days after your contract was
accepted by the seller you will be required to spend this
$1000.00 or more.
Whether Your Loan Is Approved Or Denied These Funds Are
Not Refunded!
THE RIGHT WAY...
The proper procedure is to meet with a lender and get your
loan pre-approved BEFORE you go house hunting. Aside from
avoiding the unpleasant situation just described above there are
other benefits to having your loan in place as your first
step in the process.
In this pre-approval meeting we can establish what your
comfort level is for monthly payments as well as the
amount of funds you can comfortably use for the
transaction and we can then use these figures to recommend the
appropriate program.
In a seller's market where there are many more buyers in
the market than there are homes for sale this can give you
a much needed edge. When the seller knows your loan is
already pre-approved your contract has a better chance of
being accepted than the one from the buyer who has not yet
met with the lender and may or may not be able to get a
loan.
If you would like to get pre-approved and have your money
waiting for you BEFORE you go house hunting please call me
at 916-960-5900 for a No-Obligation Consultation.
In our next issue we will cover the appraisal and what your
home is worth.
3 components lenders look at in order to make a determination
of your ability to obtain a mortgage.
In this Insider Mortgage Secrets Tip, we will discuss the
process of getting approved for a loan BEFORE you start
shopping for your new home.
Do You Have A Thousand Dollars To Simply Throw Away?
I know this may sound like a very silly question but that
is exactly what happens every day to unsuspecting buyers
who do not get pre-approved for a loan BEFORE they go
house hunting.
Let me explain with a typical scenario...
You decide it is time to move so you find a realtor and
start looking for a home. After some house hunting you
find the perfect home and make an offer which is accepted.
Now you must meet with a lender to obtain a mortgage for
this home. When you apply for your loan the lender will
request a check for the appraisal and credit report. It is
also a very good idea to have your home inspected. This is
another fee that you will be required to pay for when the
service is rendered.
So, approximately 7 to 10 days after your contract was
accepted by the seller you will be required to spend this
$1000.00 or more.
Whether Your Loan Is Approved Or Denied These Funds Are
Not Refunded!
THE RIGHT WAY...
The proper procedure is to meet with a lender and get your
loan pre-approved BEFORE you go house hunting. Aside from
avoiding the unpleasant situation just described above there are
other benefits to having your loan in place as your first
step in the process.
In this pre-approval meeting we can establish what your
comfort level is for monthly payments as well as the
amount of funds you can comfortably use for the
transaction and we can then use these figures to recommend the
appropriate program.
In a seller's market where there are many more buyers in
the market than there are homes for sale this can give you
a much needed edge. When the seller knows your loan is
already pre-approved your contract has a better chance of
being accepted than the one from the buyer who has not yet
met with the lender and may or may not be able to get a
loan.
If you would like to get pre-approved and have your money
waiting for you BEFORE you go house hunting please call me
at 916-960-5900 for a No-Obligation Consultation.
In our next issue we will cover the appraisal and what your
home is worth.
Thursday, September 23, 2010
Is a down payment really needed?
This Home Buying Guide is brought to you by:
United Commonwealth Mortgage, Inc
916-960-5900
One of the biggest barriers to home ownership in the
country is the money needed to buy a home. The money you
need is broken down into 2 categories: downpayment and
settlement costs. Your downpayment will vary depending on
which loan program you choose.
The three major loan programs are:
FHA - Federal Housing Administration
VA - Veterans Affairs Loan
Conventional
Each of these programs has its own loan limits, down payment
requirements and qualifying guidelines which do occasionally
change so please contact our office for the most up-to-date information.
Real estate closing practices vary widely from state to
state and even county to county but normally fall between
4-7% of your purchase price. Where you live will determine
exactly what you will have to pay.
Even if you are not required to escrow money for taxes,
you may want to set aside this amount to assure that you
will be able to pay those tax bills when they fall due.
You can get a good idea of what applies to your specific
area by giving us a call at 916-960-5900 or by filling
out the Contact Us form at:
http://yourfixedratelender.com/contact.htm
Remember, all lenders and brokers are required to provide
you with a Good Faith Estimate detailing the services you
may be required to get and pay for in connection with your
loan.
This Good Faith Estimate will give you a way to compare
loans and see what your closing costs would be. Click the
link below to find a list of coded names that describe the
different fees, which may be associated with the services
previously mentioned. These codes and names correspond to
those found on the HUD-1 Settlement Statement.
Lenders will want to see that you have had these funds in
the bank for the past 60-90 days and will request your
last 2 months bank statements.
If you do not have a lot of money available to buy a home,
here are some ideas:
1. Borrow against your 401(k)
2. Withdraw money from your 401(k)
3. Get a gift from a relative
4. Ask the seller to help with closing costs
5. Get a grant from a non-profit organization
What If None Of These Sources Are Available?
The good news is that we have several programs that will
allow you to purchase a home even if you truly have no funds.
No...this is not like the infomercials.
In the past few years, with homes appreciating rapidly
across the country, lenders have come out with new
products to address these issues.
It is still possible that we may be able to offer you a loan that
allows you to finance 100% (or almost 100%) of the purchase
price of your home.
Call us at 916-960-5900 to arrange a private No-Cost and
No-Obligation Consultation so we can review your situation and
recommend the programs that will be best suited to your needs.
In our next lesson we will cover getting pre-approved and
the CORRECT pre-approval process...
---------------------------------------------------------
If you would like to get started now please fill out a
Secure Online Application and we will contact you to
set up your free consultation and get you into the
home of your dreams with the best terms available...
regardless of your credit!
http://yourfixedratelender.com/application
Or if you have questions, call us or submit them here:
http://yourfixedratelender.com/contact.htm
I hope you have enjoyed this step of our guide.
We have many creative loan programs to fit your needs.
Please contact us at 916-960-5900 to schedule
your FREE No-Obligation Consultation where we
will meet to tailor a program to fit your needs
and comfort level for monthly payments and investments.
Until our next lesson,
United Commonwealth Mortgage, Inc
United Commonwealth Mortgage, Inc
916-960-5900
One of the biggest barriers to home ownership in the
country is the money needed to buy a home. The money you
need is broken down into 2 categories: downpayment and
settlement costs. Your downpayment will vary depending on
which loan program you choose.
The three major loan programs are:
FHA - Federal Housing Administration
VA - Veterans Affairs Loan
Conventional
Each of these programs has its own loan limits, down payment
requirements and qualifying guidelines which do occasionally
change so please contact our office for the most up-to-date information.
Real estate closing practices vary widely from state to
state and even county to county but normally fall between
4-7% of your purchase price. Where you live will determine
exactly what you will have to pay.
Even if you are not required to escrow money for taxes,
you may want to set aside this amount to assure that you
will be able to pay those tax bills when they fall due.
You can get a good idea of what applies to your specific
area by giving us a call at 916-960-5900 or by filling
out the Contact Us form at:
http://yourfixedratelender.com/contact.htm
Remember, all lenders and brokers are required to provide
you with a Good Faith Estimate detailing the services you
may be required to get and pay for in connection with your
loan.
This Good Faith Estimate will give you a way to compare
loans and see what your closing costs would be. Click the
link below to find a list of coded names that describe the
different fees, which may be associated with the services
previously mentioned. These codes and names correspond to
those found on the HUD-1 Settlement Statement.
Lenders will want to see that you have had these funds in
the bank for the past 60-90 days and will request your
last 2 months bank statements.
If you do not have a lot of money available to buy a home,
here are some ideas:
1. Borrow against your 401(k)
2. Withdraw money from your 401(k)
3. Get a gift from a relative
4. Ask the seller to help with closing costs
5. Get a grant from a non-profit organization
What If None Of These Sources Are Available?
The good news is that we have several programs that will
allow you to purchase a home even if you truly have no funds.
No...this is not like the infomercials.
In the past few years, with homes appreciating rapidly
across the country, lenders have come out with new
products to address these issues.
It is still possible that we may be able to offer you a loan that
allows you to finance 100% (or almost 100%) of the purchase
price of your home.
Call us at 916-960-5900 to arrange a private No-Cost and
No-Obligation Consultation so we can review your situation and
recommend the programs that will be best suited to your needs.
In our next lesson we will cover getting pre-approved and
the CORRECT pre-approval process...
---------------------------------------------------------
If you would like to get started now please fill out a
Secure Online Application and we will contact you to
set up your free consultation and get you into the
home of your dreams with the best terms available...
regardless of your credit!
http://yourfixedratelender.com/application
Or if you have questions, call us or submit them here:
http://yourfixedratelender.com/contact.htm
I hope you have enjoyed this step of our guide.
We have many creative loan programs to fit your needs.
Please contact us at 916-960-5900 to schedule
your FREE No-Obligation Consultation where we
will meet to tailor a program to fit your needs
and comfort level for monthly payments and investments.
Until our next lesson,
United Commonwealth Mortgage, Inc
Monday, September 20, 2010
FHA Short Pay Refi Update
In early August 2010 FHA announced a new product The FHA Short Refinance” effective September 2010. This refinance loan program is for homeowners who owe more on their mortgage than their home is worth.
FHA Short Refi Requirements:
FHA Short Refi Requirements:
Current on existing mortgage
Must owe more on mortgage(s) than home is worth
Must have a middle credit score of 500 or greater
Must qualify for standard FHA underwriting requirements
Home cannot be an investment property or second home - must be a primary
residence
Homeowners existing mortgage company must agree to write off at least 10%
of the existing mortgage principal balance owed
The combined loan balances between a new FHA first mortgage (due to the
short refinance) and an existing second mortgage balance (if one exists and
they agree to the short refi) cannot exceed 115% of the home's value
The first mortgage being refinanced cannot be an existing FHA mortgage
The new FHA short refi loan must not exceed 97.5% of the home's current
market value (yes you will have to get an appraisal on your home)
In reading this list, you may ask the question or be wondering whether your second mortgage lender will be interested in giving permission to do a FHA short refi. To address this concern, as it is a real concern, the US Department of Treasury will provide incentives to second mortgage holders who agree to partial or full release or extinguishment of their mortgage lien in a property.
FHA may slash costs on reverse mortgages
The Federal Housing Administration isn't talking publicly about it, but the agency may be getting ready to cut the upfront costs of reverse mortgages for some borrowers.
The agency also, however, may be reducing the amount seniors can borrow against their homes.
In a recent conference call with industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage requiring almost no upfront mortgage insurance premium, according to the National Reverse Mortgage Lenders Assn. The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs.
"HUD is looking at options to provide a lower-priced [home-equity conversion mortgage] option," said Lemar Wooley, a spokesman for the U.S. Housing and Urban Development Department. "We are still working out the details. Our basic plan is to make the product more attractive, while limiting FHA's exposure to risk."
A home-equity conversion mortgage is a federally guaranteed reverse mortgage designed to let homeowners 62 or older tap the equity in their homes. The loans and accrued interest don't have to be repaid until the owner sells the home, dies or fails to live there for one year, but the loans have traditionally carried significant upfront and annual expenses.
According to participants on the conference call, there would be two types of home-equity conversion mortgages beginning this fall: a "standard" loan and a "saver" loan.
The saver loan would have an upfront mortgage insurance premium of 0.01% of a home's value, but the amount that could be borrowed, known as the principal limit, would be reduced by at least 10%. That would lower the risk to the FHA, which guarantees the loans. Because a smaller amount could be borrowed, the saver loan could be marketed as an alternative to a home-equity line of credit to seniors on fixed incomes who can't make the monthly minimum interest payments required on such lines of credit.
Under the standard loan, the upfront mortgage insurance premium charged by the FHA would remain 2% of the property value (or a maximum of 2% of the FHA maximum loan limit of $625,500), and the principal limit would be cut 1% to 5% of a home's value, depending on the borrower's age.
For both loans, the monthly mortgage insurance premium, which is 0.5% of the mortgage balance for a traditional home-equity conversion mortgage, would increase to 1.25%.
"For someone who needs a chunk of money, but not a huge chunk, we believe this will significantly broaden the appeal," said Peter Bell, president of the National Reverse Mortgage Lenders Assn. "They're very smart changes."
In the last few months, several reverse mortgage lenders decreased origination fees and closing costs, partly to increase demand for the product and partly to pass along some of the profit they've made as investors scooped up the loans on the secondary market. The saver product would further reduce the upfront borrowing costs.
The National Council on Aging, which has advocated a more flexible reverse mortgage product for some time, views the changes as a sign that the industry is moving past the one-size-fits-all mentality.
However, the advocacy group also sees potential pitfalls.
"The more flexibility there is, the more chance there is to be talked into [something] that doesn't make sense," said Barbara Stucki, vice president of home-equity initiatives for the National Council on Aging.
The agency also, however, may be reducing the amount seniors can borrow against their homes.
In a recent conference call with industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage requiring almost no upfront mortgage insurance premium, according to the National Reverse Mortgage Lenders Assn. The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs.
"HUD is looking at options to provide a lower-priced [home-equity conversion mortgage] option," said Lemar Wooley, a spokesman for the U.S. Housing and Urban Development Department. "We are still working out the details. Our basic plan is to make the product more attractive, while limiting FHA's exposure to risk."
A home-equity conversion mortgage is a federally guaranteed reverse mortgage designed to let homeowners 62 or older tap the equity in their homes. The loans and accrued interest don't have to be repaid until the owner sells the home, dies or fails to live there for one year, but the loans have traditionally carried significant upfront and annual expenses.
According to participants on the conference call, there would be two types of home-equity conversion mortgages beginning this fall: a "standard" loan and a "saver" loan.
The saver loan would have an upfront mortgage insurance premium of 0.01% of a home's value, but the amount that could be borrowed, known as the principal limit, would be reduced by at least 10%. That would lower the risk to the FHA, which guarantees the loans. Because a smaller amount could be borrowed, the saver loan could be marketed as an alternative to a home-equity line of credit to seniors on fixed incomes who can't make the monthly minimum interest payments required on such lines of credit.
Under the standard loan, the upfront mortgage insurance premium charged by the FHA would remain 2% of the property value (or a maximum of 2% of the FHA maximum loan limit of $625,500), and the principal limit would be cut 1% to 5% of a home's value, depending on the borrower's age.
For both loans, the monthly mortgage insurance premium, which is 0.5% of the mortgage balance for a traditional home-equity conversion mortgage, would increase to 1.25%.
"For someone who needs a chunk of money, but not a huge chunk, we believe this will significantly broaden the appeal," said Peter Bell, president of the National Reverse Mortgage Lenders Assn. "They're very smart changes."
In the last few months, several reverse mortgage lenders decreased origination fees and closing costs, partly to increase demand for the product and partly to pass along some of the profit they've made as investors scooped up the loans on the secondary market. The saver product would further reduce the upfront borrowing costs.
The National Council on Aging, which has advocated a more flexible reverse mortgage product for some time, views the changes as a sign that the industry is moving past the one-size-fits-all mentality.
However, the advocacy group also sees potential pitfalls.
"The more flexibility there is, the more chance there is to be talked into [something] that doesn't make sense," said Barbara Stucki, vice president of home-equity initiatives for the National Council on Aging.
Friday, September 17, 2010
VA News...
New VA Guidelines on Charges
The Department of Veterans Affairs announced new requirements concerning closing costs on the HUD-1 for loan applications taken on or after October 1, 2010. Lenders must itemize certain credits and title service charges. The itemization of credits and title charges can be combined with the required VA origination statement.
Itemization can be accomplished by providing an attachment to the HUD-1 and will enable VA reviewers to determine who paid what charges and to ensure veteran borrowers did not pay unallowable fees. The attachment may be a lender-created addendum or any standard addendum used by title companies. For title services and lenders title insurance, lenders will now be required to provide a breakout of the charges shown on line 1101, similar to the breakout required of line 801. More information is available in Circular 26-10-9 dated July 30, 2010 and the updated Circular dated August 6, 2010.
We keep up with all the latest changes, let us help you with your next home!
The Department of Veterans Affairs announced new requirements concerning closing costs on the HUD-1 for loan applications taken on or after October 1, 2010. Lenders must itemize certain credits and title service charges. The itemization of credits and title charges can be combined with the required VA origination statement.
Itemization can be accomplished by providing an attachment to the HUD-1 and will enable VA reviewers to determine who paid what charges and to ensure veteran borrowers did not pay unallowable fees. The attachment may be a lender-created addendum or any standard addendum used by title companies. For title services and lenders title insurance, lenders will now be required to provide a breakout of the charges shown on line 1101, similar to the breakout required of line 801. More information is available in Circular 26-10-9 dated July 30, 2010 and the updated Circular dated August 6, 2010.
We keep up with all the latest changes, let us help you with your next home!
FHA Mortgage Insurance changes coming up!!
Upfront Premiums -FHA MIP Changes-
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.
Mortgage Type Upfront Premium Requirement
Purchase Money Mortgages and Full-Credit Qualifying Refinances 100 BPS
Streamline Refinances (all types) 100 BPS
Annual Premiums
Effective for FHA loans for which the case number is assigned on or after
October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:
LTV Annual Premiums for Loans > 15 Years
= or <>95 percent 90 BPS
The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.
LTV Annual Premiums for Loans = or < years =" or">90 percent 25 BPS
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.
Mortgage Type Upfront Premium Requirement
Purchase Money Mortgages and Full-Credit Qualifying Refinances 100 BPS
Streamline Refinances (all types) 100 BPS
Annual Premiums
Effective for FHA loans for which the case number is assigned on or after
October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:
LTV Annual Premiums for Loans > 15 Years
= or <>95 percent 90 BPS
The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.
LTV Annual Premiums for Loans = or < years =" or">90 percent 25 BPS
Speed Record!
Yes it's possible to close escrow on a FHA loan in less than 30 days! As a local Mortgage Broker, we are able to establish multiple relationships with several of the best lenders in the country. This means we can use our relationships to help you close fast. Our average FHA turn time is 2 days in underwriting and a total of 22 days from start to finish! Of course certain guidelines apply, why not call today! Let us break the speed record for you!!
Thursday, September 16, 2010
United Commonwealth Mortgage
Work with a lender that offers you solutions! United Commonwealth Mortgage can get you answers fast and with accuracy! Call today! We are FHA experts!
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