Weber and Davis Counties Population Explosion

Population explosion ahead
Forecast: Weber, Davis counties to fill up fast
By MITCH SHAW
Standard-Examiner Davis Bureau mishaw@standard.net

LAYTON — During the next three decades, living space is going to be a little tighter in Weber and Davis counties.

The two counties, and many of the cities within them, will grow exponentially during the next 30 years, according to recently released population forecasts from the Wasatch Front Regional Council.

The WFRC, the state’s transportation planning arm, took total population estimates made by the Utah Governor’s Office of Planning and Budget for Weber and Davis counties, then, with the help of a professional demographer, broke down estimates for each city within the two counties.

Handbook 2011

Health: 1. Drink plenty of water. 2. Eat breakfast like a king, lunch like a prince and dinner like a beggar. 3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.. 4. Live with the 3 E's -- Energy, Enthusiasm and Empathy 5. Make time to pray. 6. Play more games 7. Read more books than you did in 2010 . 8. Sit in silence for at least 10 minutes each day 9. Sleep for 7 hours. 10. Take a 10-30 minutes walk daily. And while you walk, smile.

Fannie & Freddie Announce Maximum Conventional Loan Limits For Utah:10/1/10-9/30/11

Time to refinance?

Mortgage rates spent much of the year setting record lows,  The average 30-year fixed-rate mortgage was still as low as 4.50% today.  With rates this low, if your bank or mortgage lender hasn't called you to tell you into refinancing, you may want to give me a call. 

Swapping your old mortgage for a new one can result in big savings, totaling thousands of dollars over the life of the loan.  Refinancing makes sense if you:

1)  Have an adjustable rate loan
2)  Want to swap a 30-year loan for a 15-year mortgage
3)  Are moving from a jumbo loan to "conforming" size
4)  Can shave 1/2 to 3/4 of a point off your current fixed rate
5)  Need cash out to retire high interest rate credit card debt or a 2nd mortgage

Call me to review your refinance options.   

Momentum Gathering

How to Harness the Power of Momentum

‘It’s like the wind at my back, the sun in my face. It’s like running down a grass-covered hill.’ ~Leo Babauta

Editor’s note: This is a guest post from Katie Tallo of Momentum Gathering.

It can carry you like a strong current carries a fallen leaf. It can ground you like an early morning walk through the woods. It can move you like wind moves a cloud across the summer sky. It can ignite your spirit and make you feel like you can do anything.
It is momentum – that invisible, universal force that can saturate your every choice, your every step, your every breath, your every moment of resolve with vibrant, joyful energy. Momentum can surge you forward and it can pull you under. It goes with your flow, follows your lead and enhances your trajectory.
It can be harnessed, gathered and used as an incredibly transformational tool.
How do I know this to be true? I’ve been actively gathering momentum for almost six years now, ever since I quit smoking. That one simple yet meaningful change shifted my direction just enough to spark momentum. I triggered it without even knowing it. All I knew at the time was that if I could quit smoking after twenty years of trying, I could do anything. That’s what momentum feels like. It seeps into your pores and tingles the back of your neck.

I never have to worry about delays-Closing December 9, 2010

Marty,

Thanks for another job well done on a new mortgage.  I can always count on you for great service, and never have to worry about delays or any other problems.

Thanks,

Barbara Kappen

Utah Housing Changes Interest Rate Policy

In recent years, Utah Housing has announced interest rate changes effective for one full week each Friday.  Effective immediately, UHC will no longer guarantee the announced rate for a full week and may announce rate changes more frequently.  The most current rate will continue to be posted on UHC's website and broadcast via email.

Forclosure seasoning changes for Conventional Loans

Conventional loans just changed their foreclosure guidelines from 5 years to 7 years.  (FHA is still 3 years)  See below:

DU Version 8.2 Implementation

In response to Fannie Mae Announcements and Freddie Mac Bulletins with subsequent updates to DU and LP, please see the following guideline changes:

·          The waiting period that must elapse after a borrower experiences a foreclosure will increase to seven years. If the foreclosure is reported within seven years of the credit report date, the loan case file will receive a Refer, and is ineligible for purchase.

Taxes

TAXES - The top 10% of taxpayers reported 46% of all adjusted gross income (AGI) nationwide in 2008 and paid 70% of all federal income tax (FIT).  In 1980, this group reported 32% of AGI and paid 49% of FIT (source: IRS).     

How do stock prices effect Mortgage rates? How do Stocks get bought and sold on Wall Street?

With the announcement of Quantitative Easing 2 (QE2) by the Federal Reserve Bank three weeks ago, the Fed has included a four fold purpose in spending money (buying bonds).  The $600 Billion will be put to work to meet specific Fed Goals. 

One of the goals of QE2, which gives rise to my question in the Title of this Blog Post of "how are stocks bought and sold on Wall Street?", is that QE2 wants to push stock prices higher.  The additional goals of QE2 are to increase employment, increase inflation (to fight deflation), and to devalue the dollar (to make our goods cheaper and more inviting to foreign markets).

All of the stated goals or purposes of QE2 are arch enemies to Bond prices and with falling Bond prices, if QE2 is successful in reaching its goals, we will see higher interest rates.

Call me if you would like to visit about your refinance or purchase mortgage options before rates increase from these historically low levels.  :)

Following is an interesting discussion of how Stocks are bought and sold on Wall Street...

Phone call questions I got today: Can you get me a mortgage? I'm self employed

One or two years of tax returns will determine income for the self employed borrower (one year of taxes are needed with excellent credit for Conventional Loan Financing and two years of taxes are needed for FHA financing).

Good to excellent credit is a must, and it doesn't help to get the borrower "more easily qualified".  Because the maximum Automated Underwriting debt to income ratios are presently set at 45% (max.) for Conventional and 55% (max.) for FHA, if the borrower doesn't have the income, the approval will not be possible.

There is going to be a trade-off between income tax paid and ability to get an approved Mortgage loan when tax time comes.

NOT having to pay taxes because the self employed borrower has a great Tax Accountant who shelters the income with expenses and write-offs so the borrower has a small tax liability, may in fact backfire when the same borrower tries to qualify for Mortgage financing.

If you need some direction about how you should file your taxes in 2010 (for your 2009 income) so that you have the ability to obtain the mortgage financing you would need, call me and we can review your options.

With an In-House Underwriter (Jenette sits in my office across the hall from me), she can give us insights into tax liability and taxable income strategies to maximize your opportunities.

Keep warm air INSIDE this winter!

Keep old man winter’s cold hands out of your pocketbook

  By TERRI BENNETT    McClatchy Newspapers

     The winter chill is preparing to take a bite from our bank accounts. We’ve all heard that “winterizing” our homes will help keep utility costs down and is easier on the environment.    

Here’s a short list of options that are simple to do, and which will yield the most immediate results.

   • Reverse the direction of your ceiling fans. This is one of the simplest ways to keep warm air moving inside your home.    In the colder months, your fan blades should turn in the clockwise direction to force warmer air collecting at the ceiling down toward the floor. You can tell that the blades are turning in the wrong direction for the colder months if you feel a breeze pushing down on you when standing directly under the fan.      
 
•Another smart place to check for leaks is in your attic. First, make sure the attic door itself is insulated and seals when shut. As for the actual attic space, if you can see the ceiling joists, you probably need more insulation. And, if your fireplace is more ornamental rather than functional, use a chimney plug to prevent warm air from escaping.     

• Windows and doors are the biggest places where warm air escapes. Use a match or lit candle to search for leaks. If the flame blows out when held next to windowsills or doorframes, there’s a problem. Replacing windows and doors with efficient new ones are your best bet, also costly.    One alternative is to put up insulating storm windows and doors. You can also use window insulating kits or heavy drapery   to help keep winter drafts from entering your home through windows.    And, weather-stripping is an inexpensive solution for filling gaps in doorframes. For high-traffic areas, rubber weather-stripping is your best bet because it is more durable than foam variety.    
 
• Don’t forget to keep up with the maintenance of central heating   units. Furnaces should be checked each year to make sure they are operating at maximum efficiency and with clean filters.    A clogged filter makes the unit work harder, costing more to operate and creating a fire hazard.    Another good idea is to check the ductwork in your home to make sure there aren’t any leaks. You   can easily fix any that you find with metal-backed tape found at any hardware store.     

• And finally, if your water heater is located in a cold garage or closet invest in a water heaterinsulating blanket. This keeps your unit from having to work so hard to heat the water.    These do-it-yourself jobs can be as big or as little as you want  and they all add up to energy and money savings. Do your part this winter to keep warm air inside your home and even more money in your pocket.    

Terri Bennett is a veteran TV meteorologist, syndicated columnist, and host of DoYourPart. com where you can find everyday green living ideas that are better for you and the planet.

The History of Thanksgiving

The Little Known – but true – History of Thanksgiving…

 

Despite the popular belief that Thanksgiving originated with the colony at Plymouth Plantation in 1621, researchers have actually pinpointed the actual first Thanksgiving to have been held a whopping 56 years earlier.

According to scholars, the first known Thanksgiving took place during September 1565, in Saint Augustine, Florida when Spanish settlers held a Mass of Thanksgiving after arriving safely in the new world. It wasn’t until 1619 when English settlers in the Virginia Colony held a similar day of thanks…and then two full years after that, the colonists at Plymouth Plantation celebrated the famed Thanksgiving of 1621.

 

But the story doesn’t end there.

Around 1789, President George Washington proclaimed “a day of thanks” to be observed. It was not an official national holiday, but it did become popular with many Americans, who would select their own state or city observance day, usually in the fall. But not everyone was in favor…there were people going through hardships who were actually against having a day dedicated for giving thanks. In fact, Thomas Jefferson himself scoffed at the idea of a thanksgiving day. 

SAFE Test and NMLS licensing: Consumer Benefits Outlined

As I have mentioned in a previous Blog post, I have successfully passed my SAFE Exam (July 2010) and am licensed within the NMLS system (NMLS #263702).

What I find interesting (and perplexing!) is that NOT all Mortgage Loan Originators (as we are now ALL called) are required to have an NMLS license, and take the National SAFE Exam.

Both regulatory systems were designed to protect the consumer. Some mortgage professionals are exempted from regulation and don't have to test and be licensed??????

This is definitely a time for the age old adage:  "Let the Buyer Beware!"

I am posting an excerpt from an article by Joffrey Long which underscores the importance of consumers working with Mortgage Loan Originators who are SAFE and NMLS compliant:

Still of concern, however, are the Act’s gaps.  Not all loan officers are required to complete pre-license training and to pass a comprehensive licensing exam, enabling the use of legislative loopholes.
Here’s how:
Loan officers who work for Federally chartered banks or credit unions DON’T have to take the exam or the pre-license training.  So unless your loan officer works for a certain type of company, you’re really no safer.  Lawmakers decided to trust the banks to properly screen and train their originators.  Hmmm, do you trust the banks?
To find out if your loan professional is really qualified,  has undergone required training and passed the exam - a little due diligence may be necessary.
First, ask for their license number and what agency they’re licensed by.  If they work for a bank or Federally chartered credit union, they might tell you they don’t have to be licensed.  If they tell you what license they work under, you can check on that licensing authority’s website for their license history.
But be careful.  Whether you’re buying foreclosed homes, looking for home refinancing, or you’re a first time homebuyer, you need to speak with a real financing expert.  

About Joffrey Long
Joffrey Long provides mortgage lending and real estate advice and insight for homebuyers, real estate investors and investors in mortgage loans.  He’s a mortgage lender and real estate investor himself, and has been in the industry for 34 years.  He’s also called upon to testify as an expert witness in mortgage related litigation matters.

Remodeling your home? Return on your investment dollars!

These numbers are courtesy of the National Board of Realtors and will give you a good idea of where to put your remodeling dollars when you begin thinking of starting your next project. :)


% Return of $ Spent                Remodeling Project
102%                                         Kitchen (By far, the best return of money in value given!)
77                                              Bathroom
73                                              Deck (enjoy those summer days more with this % return!)
71                                              Siding
69                                              Home Office (my personal favorite remodeling project!)
68                                              Windows (Federal Tax Rebates end soon!)

If you would like to explore refinance options to cash out some of your equity to finance a remodeling project, call or e-mail me.  :)

Marty, thanks for the excellent experience! Closing November 3, 2010

We were introduced to Marty about three years ago when we bought our current home. 
The experience was wonderful and we have referred colleagues and family to Marty since then. 

Marty takes the time and care to review several scenarios to determine what would work best for a mortgage or a refinance. A year or so ago, I reached out to Marty to see if it made sense to refinance at that point. He ran numbers for me and said that a refinance did not make sense unless we planned to stay in our house long term. 
I am pleased with his integrity - he could have easily processed a refinance for us and earned money on the refinance. 

Marty spends time to build long term relationships with clients. We had heard nightmares from others that it was nearly impossible to get a mortgage or a refinance in the current market. 
We had an excellent experience and are so thankful to Marty and his team for making it so easy to refinance.
 
Niels and Tara Hansen

Marty, your follow-up and knowledge was greatly appreciated! Closing October 22, 2010

Marty,

Thanks for keeping me updated during this process, and getting it done quickly and smoothly. I appreciate your call and follow-up, letting me know the option was available to me, and would be helpful, and recommended for me to complete. As I have mentioned, I lack knowledge when it comes to mortgages, lending, and rates- Marty, your follow up and knowledge was greatly appreciated!

All the best,

Scott

Scott Ingraham, ATP

Sales Manager

I Recommend Marty Without Reservation: Closing September 24. 2010

 Marty helped me about 15 months ago when I bought a home.  I was very pleased and impressed with all he did at that time.  With interest rates falling, I was considering a refinance.  Before I acted on my instinct, Marty sent me an e-mail saying that he recalled my rate and he would love to help me take advantage of the lower rates.  HE got in touch with ME.  THAT’S invaluable service!  Marty worked the numbers and ironed out any possible problems and I was able to lower my interest rate.  I highly recommend Marty to all my friends and associates without reservation.  Doug Paskett

Thank you for the Speed, Ease and Professionalism: Closing October 7, 2010

Marty.

It has been a very busy week since we closed, but I did not want to let anymore time pass without telling you how much we enjoyed working with you and you staff. I can not say enough about the speed, professionalism and how easy you made this process of refinancing our home. The manner which things were handled made us feel comfortable from the beginning that you had our best interest as a priority. Thanks again.  Pat and Clara Lynch

Why Mortgage Lenders Want Tax Returns

Why mortgage lenders want tax returns
By Marcie Geffner • Bankrate.com


Shopping for a home mortgage loan? Prepare to hand over real proof of your taxable income.
During the housing boom, lenders rarely required borrowers to provide copies of federal tax returns.
But today, lenders often ask borrowers to turn over entire tax returns, according to Brad Blackwell, national sales manager for Wells Fargo Home Mortgage.
"Often, people will think they can bring in the first two pages of the tax return, and what they need to bring is the full tax return and all schedules because a person's full income picture is contained in the entire set of documents, not just the first two pages," he says.

Higher Loan Amounts Approved through 2011!

President Obama has signed HR 3081, the bill that extends the higher loan amounts for Fannie Mae, Freddie Mac and the Federal Housing Administration’s (FHA) multifamily programs to $729,750. These higher loan amounts will continue through 2011.

I whole-heartedly refer Marty Qualls-Closing August 30, 2010

I've been referring borrowers and Real Estate Agents to Marty Qualls for over 6 years because of his professional demeanor and seniority and expertise in the mortgage industry. 

I have now had the pleasure of working with him on my personal loan for the purchase of a new home.  

I have always been impressed by Marty's ability to communicate effectively throughout the transaction, but especially noticed the difference it makes when you are the actual borrower.

I would whole-heartedly refer Marty Qualls to anyone who needs help with their purchase or refinance mortgage!

Melissa and Justin Miller, Layton, UT:  Loan closing August 30, 2010

Reverse mortgage costs may lessen

The Federal Housing Administration (FHA) isn't talking publicly about it, but the agency may be getting ready to lessen the upfront costs of reverse mortgages for some borrowers. 

The agency also, however, may be reducing the amount seniors can borrow from their homes. 

In a recent conference call with the industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage (HECM=Reverse Mortgage) with almost no upfront mortgage insurance attached.

The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs. 

FHA MIP changes effective October 4th, 2010: 6 things you need to know

FHA MIP Changes Now Official
With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front and the Annual premiums. These changes as outlined in Mortgagee Letter 2010-28, are effective for all case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
   |
2. The Annual premium is now .90% for LTVs GREATER than 95% on 30 year loans
   
   
3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30 year loans
   
   
4. The Annual premium is now .25% for LTVs GREATER than 90% on 15 year loans
   
   
5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15 year loans
   
   
6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

Want some attention?

If you think no one cares you're alive, miss a couple of house payments.

I tried to get it, but I missed this one...

Tiger Woods Takes Out $54.5 Million Mortgage For New Mega-Mansion

Hot on the heels of his highly public divorce, Tiger Woods reportedly took out a $54.5 million dollar mortgage for his new Florida mansion.
The troubled golfer filed the legal docs for the massive mortgage earlier this week, according to TMZ.com, and reportedly listed himself as a “single man”.
The home, located on the exclusive Jupiter Island, will reportedly have a tennis court, oxygen therapy room, many pools and a fitness center. The loan should be repaid by 2016, reports the site.

Reverse Mortgage (HECM) for purchase of a home

For additional information about the HECM for Purchase Program, call me.  Here is an excellent article to give you information to get started...

HECM for Purchase

Beginning on January 1, 2009, seniors became eligible to use a reverse mortgage to purchase a principal residence as part of HUD’s “HECM for Purchase Program.”

Definition (plain English)

HECM reverse mortgages are now available to seniors who would like to buy a new home if:

• The youngest homeowner is age 62 or older
• The purchased home will be primary residence
• The purchased home will be occupied within 60 days of closing
• No mortgage loan other than the HECM can be used to buy the purchased home
• The difference between the purchase price of the home and the HECM proceeds must be paid in cash or from the sale of an existing home

Definition (formal)

HUD’s formal definition of the program, from the HUD Mortgagee Letter on October 10, 2008, is:

The HECM for Purchase is a real estate purchase where title to the property is transferred to the HECM mortgagor, which the mortgagor will occupy as a principal residence, and, at the time of closing, the HECM first and second liens will be the only liens against the property. HECM mortgagors must occupy the property within 60 days from the date of closing. Lenders are required to ensure all outstanding or unpaid obligations incurred by the prospective mortgagor, in connection with the HECM transaction, are satisfied at closing.

FHA Refinance Update: Changing Guidelines on September 7, 2010

FHA Eliminates Unlimited CLTVs for Refinance Transactions

Call me for additional details and for help with your FHA refinance.

This update from Mortgagee Letter 2010-24 contains changes to the new maximum CLTV limits for refinance transactions, which will be effective for case numbers assigned on or after September 7, 2010.

The combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the applicable FHA LTV AND the geographical maximum mortgage amount (does not apply to streamline refinance transactions).

Here are the 4 Maximum CLTVs for Refinance Transactions that you need to know about:

1. Rate and Term (or No Cash Out) Refinances = 97.75%
2. Refinances for Borrowers in Negative Equity Positions* = 115%
3. FHA-to-FHA Streamline Refinances With or Without Appraisals = 125%
4. Cash-out Refinances = 85%

* This refinance option is only available through December 31, 2012.

Can rates remain low? 2nd warning in 10 days...

As we continue to enjoy lowest rates in our lifetimes, we have received two warnings this past two weeks, the of which Blog posted on 8/13 in which Kansas City Fed President Hoenig said that ZERO Percent interest rates (at the Fed discount window) is a dangerous gamble, and using monetary policy as a "cure-all will will lead to a recession and unemployment in a few short years.

Today's warning: Raghuram Rajan, the former chief economist for the International Monetary Fund, say the Fed should raise the Fed Funds Rate by 200bp. Rajan's words are not being taken lightly, because back in 2005 he correctly warned central bankers of a potential financial crisis should banks lose confidence in one another.

If you are purchasing or refinancing, call me for your options for mortgage financing.

Marty Qualls showed exemplary professionalism-Jim McGowen Loan Closing-May 27, 2010

Marty Qualls showed exemplary professionalism.  He made the process of obtaining a mortgage painless and easy to understand even when the bank tried to make things difficult.  

His experience is easy to recognize through his understanding of the mortgage industry and I would definitely recommend him to anyone looking for a mortgage.

 - Jim

Refinance to a 15 or 20 year term

Mortgage rates for 15 and 20 year refinancing are the bargain in the market place!

Nationally in July and so far this month, 1/3 of all refinances are 15 and 20 year loans.  Shorter term loans, lower interest rates, less interest paid over time, approaching retirement for many homeowners with a mortgage, has spiked demand for these loans. 

Call me to discuss your refinance or purchase mortgage options. 

Mortgage Modifications-A Successful Program?

The number of permanent mortgage loan modifications with at least a 9 month payment history = 4,764.

Although this number is very small, for the right situation and the right Mortgagor, here are some additional tips to make a loan modification successful.

Five-Tips-for-a-Successful-Mortgage-Loan-Modification

You’ve lost your job. You’ve recently gotten a divorce. Your adjustable rate mortgage has adjusted to a monthly payment you can no longer afford. Whatever the reason, you’re struggling to make your mortgage payments and need help. Through a loan modification, your lender can work with you to lower your home loan payments and help you keep your home. Unfortunately, many borrowers apply for a loan modification only to discover that the bank is proceeding with a foreclosure anyway. These tips will help you stay on top of the loan modification process and avoid foreclosure.

How many listed homes are selling?

1/2 of homes listed in 2009 were sold.  Considering the 9 month time frame for short sales to finalize, many of the homes listed in 2009 actually closed (sold) in 2010. 

45% of homes on the market last month (July 2010) had price reductions.  With the average sales price (nationally) of $254,987, there was an average of a 2.04% price reduction last month. 

Can interest remain low?

11:56 AM ET - Thomas Hoenig, Kansas City Fed President, states that zero interest rates were a "dangerous gamble" in a period of moderate growth. In a speech in Lincoln, NE, Hoenig warned that Fed Chairman Ben Bernanke and his allies were trying to use monetary policy as a "cure-all" for "every problem faced by the United States today." Keeping rates too low for too long will only lead to a repeat of the cycle of severe recession and unemployment in a few short years, he warned. Hoenig has dissented at every Fed policy meeting this year.

HUD Earmarks $1B for Unemployed Borrowers

HUD just set aside $1 Billion for unemployed borrowers!

Help to unemployed borrowers would come in the form of a $50,000, ZERO interest loan to help make their house payments for up to 2 years.

Those receiving help must have a perfect payment history on their mortgage loan. 

A new $1-billion program led by the Department of Housing and Urban Development, or HUD, will help homeowners who are at risk of foreclosure due to involuntary unemployment, underemployment or a medical condition.

The program could be an asset to seniors who have been unable to pay their tax and insurance obligations on their reverse mortgage.  While there is no official number as to how many HECM borrowers are currently in T&I default, it continues to be a concern for lenders and servicers in the reverse mortgage industry.  Whether or not the program will be available to HECM borrowers isn’t yet clear.

Click here for an article which details the program: HUD Provides $1-billion-of-emergency-loans-to-homeowners

Fed Worried About Economy

WASHINGTON -- As recently as two months ago, the Federal Reserve sounded optimistic about the economic recovery. Now the central bank is taking a new step that shows it is clearly more worried, but economists say it probably won't help much.
The Fed said Tuesday that it would spend a relatively small amount of money -- about $10 billion a month, economists estimate -- buying government debt. The move is designed to drive interest rates on mortgages and corporate borrowing at least a little lower and help the economy grow faster.

NegEQ loan with FHA

The FHA "NegEQ" Refinance
On August 6th, 2010, FHA published Mortgagee Letter 2010-23 which details the refinance program available to homeowners that owe more than the value of their homes. Although HUD estimates an economic benefit up to $35 billion, the success will be determined by the current lien holders who must participate by writing down the mortgages at least 10%. The program is for loans whose case numbers are issued on September 7th, 2010 and closed by December 31st, 2012.
Here are the 8 things you need to know about this program:

1. The mortgage to be paid off CANNOT be an FHA loan and must be current
   
   
2. The max LTV is 97.75% and the max CLTV is 115%
   
   
3. Second lien holders must subordinate to the new first
   
   
4. Loans that receive an "accept/approve" by TOTAL do not require a review of income or credit history
   
   
5. Loans that receive a "Refer" by TOTAL and/or manually underwritten files, the ratios CANNOT exceed 31/50 (31% includes both 1st and 2nds) and must have acceptable credit history with a minimum credit score of 500
   
   
6. Lenders CANNOT use premium pricing to pay off debt to qualify borrower OR bring mortgage current for the borrower
   
   
7. The performance of loans refinanced under the NegEQ refinance WILL NOT be included in the Lender's compare ratio but will have separate criteria in Neighborhood Watch
   
   
8. The borrower must occupy the subject property

Call me for additional details and to apply for this loan.

Extension Granted! FHA changes in Mortgage Insurance October 4th...

STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT
Tuesday, August 10, 2010
“Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010.
“Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.”
Note:
FHA will lower its upfront premium simultaneously with the increase to the annual premium. FHA’s upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points on amortization terms greater than 15 years

FHA Announcement: Help for underwater borrowers

On September 7, 2010 FHA will offer certain underwater NON-FHA borrowers a FHA refinance loan.  The borrower can move ahead on the refinance if their present mortgage holder agrees to write off up to 10% of the present loan balance.  FHA anticipates that 3-4 million borrowers will be assisted with this program.  Is this ANOTHER Government bailout program destined to NOT work?  Probably.  More information to follow...

Fannie and Freddie need more money: Cost to taxpayers?

Freddie Mac just announced that it needs $1.8 billion more to handle their 2nd quarter losses.  This brings Freddie's total losses to $64 Billion!

We taxpayers are bailing out Freddie, just like we did other industries before it. Here's a quick reminder of other recent financial losses that taxpayers took the hit for (just to put Freddie's losses in perspective):  AIG=$9 billion, the ENTIRE car industry bailout=$47 billion. 

Are Freddie and Fannie done losing money?  NOT even close.  Short sales and Modifications are up 123% (year over year increase), and forbearances (where distressed homeowners get more time to make their payments) are up 655%!

Excellent home purchase opportunities lie ahead as we see more of the distressed properties enter the market.  Call me to get your mortgage credit approval into place to take advantage of this opportunity.