FHA PFS (Pre-Foreclosure Sales Program)

If you have an FHA loan on your home and are facing a hardship keeping up with payments, the FHA Pre-Foreclosure Sales Program may be available to you.

This program allows a Mortgagor in default to sell his or her home and use the sales proceeds to satisfy the mortgage debt,even if the proceeds are less than the amount owed.

A description of the program, provided by an excellent Lender, and probably worded more for the lender than the mortgagor, is available at:

Paste this in your browser.... http://fha.dmarq.info/

The Lender, Kevin Lambe, can be reached at email address:
klambe@amerifirst.us

Hope this works for you!

Lowest Mortgage Rates

May 11, 2011 from Realty Times

Slow Economic Recovery Produces Lowest Mortgage Rates by Ed Ferrara

After releasing various reports of economic data this past week, it was evident that the economic recovery is at a slower pace than anticipated which, in turn, produced the lowest mortgage rates so far for this year 2011. Towards the end of the week, Freerateupdate.com's daily survey of wholesale and direct lenders showed that conforming 30 year fixed mortgage rates had dropped .125% to a new low of 4.375%. Remaining the same at last week's lows, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. Conforming fixed rate mortgage loans are popular with borrowers who want the same mortgage payment for the life of the loan. Available with 0.7 to 1% origination fee, these are the lowest mortgage rates for borrowers who have good credit and can obtain lender approval.

FHA 30 year fixed mortgage rates are at 4.250%, still lower than conforming 30 year fixed mortgage rates. FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%, both slightly higher than the comparable conforming mortgage rates. FHA mortgage loans are often used by borrowers, especially first time home buyers, who enjoy the benefit of low down payment requirements. Borrowers who have less than perfect credit also turn to FHA for their mortgage needs. In return for these benefits, FHA closing costs (APR) are higher because of various FHA fees and the upfront mortgage insurance premium.

Holding their own, jumbo mortgage rates are still at favorable lows which is a major benefit for high end borrowers. Current jumbo 30 year fixed mortgage rates are at 5.125%, jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable rate mortgages are at 3.625%, all remaining the same this past week. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250, depending on location of the property. These are the lowest jumbo mortgage rates available with 0.7 to 1% origination fee to borrowers who have maintained outstanding credit.

MBS prices (mortgage backed securities) fluctuated over the past week. Mortgage rates move up and down in the opposite direction of MBS prices. With lower mortgage rates in the limelight, there has been an increase in both purchases and refinances as reported by the Mortgage Bankers Association. It was reported that private sector jobs increased which was positive news. On the other hand, jobless claims increased as well as the unemployment rate for the month of April. While the positive news indicates an economic recovery, the negative news reflects a weaker and slower recovery. These mixed reports have continued to create uncertainty for investors trying to determine which ones reflect the true state of the economy. At the end of last week, the price of crude oil dropped significantly bringing about more questions. Crude oil prices quickly rebounded today. In the end, negative economic news has been resulting in lower mortgage rates which is a plus for borrowers, especially as the home buying season is under way.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

Click here for today’s new york mortgage rates.

Copyright © 2011 Realty Times. All Rights Reserved.

Mortgage Rates Keep Going Lower

May 4, 2011 from Realty Times

Mortgage Rates Keep Going Lower

Each time economic data is released or major events happen anywhere in the world, markets react in some sort of way. Lately, markets have been somewhat subdued as the reports have been mixed with both good and not so good data, although it has been positive for mortgage rates which keep going lower. Freerateupdate.com's daily survey of wholesale and direct lenders show that mortgage rates changed this past week for the better.

Conforming 30 year fixed mortgage rates started the week at 4.750%, dropped by .250% and now are at 4.500%. 15 year fixed mortgage rates also dropped by the same .250% and are at 3.750%. 5/1 adjustable mortgage rates are at 3.000%, a drop of .125%. These are the best mortgage rates available with 0.7 to 1% origination fee for well qualified borrowers. After remaining stable for some time, mortgage rates seem to be heading lower at what is usually one of the busiest seasons of the year.

FHA mortgage rates also repriced for the better. FHA 30 year fixed mortgage rates are at 4.250%, and FHA 15 year fixed mortgage rates are at 4.000%, both down .250%. FHA 5/1 adjustable mortgage rates are at 3.375%, down .275%. FHA mortgage loans offer a low down payment, but borrowers must be prepared to pay additional FHA fees and an upfront mortgage insurance premium which results in higher FHA closing costs (APR). FHA's recent increase in the annual mortgage insurance premium has resulted in a slow down of recent FHA mortgage applications.

Jumbo mortgage rates also did well this past week which should be a boost for high end home buyers. Jumbo 30 year fixed mortgage rates decreased by .250% and are at 5.125%. Jumbo 15 year fixed mortgage rates went from 5.000% in the early part of the week to 4.500% in the latter part of the week. Jumbo 5/1 adjustable mortgage rates are at 3.625% which is a decrease of .250%. With outstanding credit, borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% origination fee. This week's economic data had mixed results on MBS prices (mortgage backed securities) as data continued to roll in. MBS prices affect mortgage rates which move in the opposite direction. While new home sales came in stronger, home prices continued to decline. Consumer sentiment increased and personal income rose at the same time that unemployment claims increased. With gas prices heading up, everyone will be watching to see what impact this is going to have on the already slow economic recovery.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

Copyright © 2011 Realty Times. All Rights Reserved.

30-Yr Mortgage Rate Nears 3.875 Percent

September 29, 2010
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From Realty Times, 30-Yr Mortgage Rate Nears 3.875 Percent by Ed Ferrara


Mortgage-backed securities prices, which drive mortgage rates their opposite, posted gains Monday and Tuesday consecutively, pressuring mortgage rates to move downward again from already record low levels where they began the week.

30-year fixed mortgage rates, currently at 4% for well-qualified borrowers who pay 1 point origination, are very near 3.875%. 30-year fixed mortgage rates have never been below 4% before. 15-year fixed mortgage rates remain at 3.5% but could improve any hour as well.

FreeRateUpdate.com surveys over 2 dozen wholesale lenders' rate sheets for brokers daily to determine the most accurate mortgage rates available to highly qualified borrowers at a standard origination fee.

FHA loan rates continue to mirror conforming mortgage rates. Today's 30-year fixed FHA loan rate is also 4%; however, MI and other FHA closing fees make APR higher than that of a conforming mortgage at the same note rate and origination.

Jumbo mortgage rates are improved from last week and today's jumbo 30-year fixed loan rate is 4.875%, a record low.

Wells Fargo mortgage rates, as advertised on their website, are unchanged with 4.375% (4.559 APR) being their offering on a conventional 30-year fixed mortgage.

Mortgage refinance applications have been flat according to the MBA, who posts figures weekly, since spiking as rates slid into the low 4's.

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Copyright © 2010 Realty Times. All Rights Reserved.

90 Day No Flip Rule Waived

Investors are now exempt from the 90-day seasoning rule. The datailed rules can be found here:

90 DAY FLIP RULE WAIVED

This will allow investors that have purchased FHA repos to put them on the MLS or By Owner networks much sooner. This should offer some good properties much sooner, move in ready as compared to Short Sales and Bank Owned - providing the investor cleans up the properties after his purchase.

The incentive for the investor is a quick return on his investment and increases the rate at which foreclosed homes are returned to the market in move in condition.

Let's hope it works as intended!

NEW FHA LOAN LIMITS

FHA released the new loan limits starting January 1st 2010

Here in Maricopa County, we will see the max loan limit drop from $346,250 to $271,050 for SFR.

That is the same number as we used to have before HUD raised loan limits temporarily to allow for more folks to qualify back in 2008.

For a majority of the USA, the FHA loan limits will be …

1-Unit $271,050

2-Unit $347,000

3-Unit $419,400

4-Unit $521,250


For high cost areas, the limits will remain the same as previously set in 2008. They are as follows:

One-Unit $ 729,750

Two-Unit $ 934,200

Three-Unit $ 1,129,250

Four-Unit $ 1,403,400

In the future you can go to https://entp.hud.gov/idapp/html/hicostlook.cfm to find the limits whenever you wish.


The above info provided as a courtesy by:

Craig Bohall Your “Safe Harbor” Lender

ACADEMY MORTGAGE CORPORATION

480-344-3646 – office

480-374-6924 - e-fax

www.myazmp.com

craig@myazmp.com

NEW APPRAISAL AND LOAN PROBLEMS

The Home Valuation Code of Conduct(HVCC)went into effect on May 1, 2009. HVCC establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. Realtors® and mortgage brokers are prohibited from selecting appraisers except for In House staff appraisers.

To date, only Fannie Mae and Freddie Mac have agreed to adopt the Code. There is a strong feeling in the Real Estate Industry that the new system has created manor negative results in the home sales environment. In one long sentence, sales fall through due to delays and bad appraisals, Appraisers are given less time to complete their work and get paid less, many appraisers have left the business, and the system even sends appraisers from another state to work in unfamiliar territory. One or more appraisers from California were sent to Tucson to perform appraisel work?

To date HUD, who administrates FHA, has declined to accept the HVCC. Suddenly, FHA is becoming the lender of choice in our floundering Real Estate Market.

A few facts from recent news releases and information offered on radio programs:

1) Approximately 1/3 of all home owners in the U.S. are upside down on their homes (i.e. their loan is greater than the current value of their home!)

2) An estimated 75 to 80% of those loans are sub-prime loans.

3) And for the first time in history, over 7% of those loans are prime loans!

4) In Phoenix, the national 33% estimate becomes 51% of homeowners that owe more than their house is worth.

An Arizona judge recently forced Wells Fargo Senior Vice President Joe Ohayon to Phoenix for 2 days to explain why so few loan modifications had been granted and why they failed to communicate with those seeking help?

The customer that filed the case that prompted this judicial action said they never told her there was a problem with her request paperwork, they failed to tell her they had turned her down on her request for help, and she states she is now about to lose her home of 15 years. Nice job, Wells Fargo.

For those facing the potential for foreclosure, please see my last blog, "Mortgage Help". I wish you success in overcoming the barriers that seem to persist.

The New Appraisal System

From Realty Times of May 11, 2009

Washington Report: Appraisal System
by Kenneth R. Harney

Last week saw the official kickoff of Fannie Mae's and Freddie Mac's mandatory new system of appraisals nationwide, and some mortgage and appraisal groups are up in arms over sharply higher costs for consumers.

The so-called "home valuation code of conduct" imposed by Fannie and Freddie puts most appraisal assignments in the hands of management companies, some of whom are owned by major lenders such as Bank of America and Wells Fargo.

The Appraisal Institute, which represents 20,000 appraisers across the country, and the National Association of Realtors, which has thousands of appraiser members, both have been critical of the new code.

The Institute is particularly incensed at the expanded management company role in appraisals because those companies pay appraisers much less than their standard fees, and tack on thirty to fifty percent extra charged to the consumer.

For example, an appraiser who'd normally charge $325 for a valuation ordered though a lender or mortgage broker, now might be required by a management company to do the same work for $175 to $200.

Meanwhile the consumer, who has no idea where the money is going, is charged $400 or more for the appraisal, and must pay for it up front by credit card, rather than at closing.

The $200 to $225 extra goes to the management company. If the deal falls through and the mortgage doesn't close, that's the consumer's problem. The appraisal fee has already been pocketed by the management company.

Now evidence is circulating in Washington that not only are appraisal fees significantly higher under the new Fannie-Freddie code, but are being extended to FHA mortgages, despite the fact that FHA is not covered by the code.

The National Association of Mortgage Brokers has begun documenting the higher fees and other problems with the new code. In one case the association shared with Realty Times last week, a large lender, EverBank, circulated its list of new appraisal fees to be charged consumers through its "automated appraisal system."

Not only does the bank require credit payment for appraisals up front, but it now charges a flat $465 for FHA appraisals and $390 for standard single family conventional appraisals. Flat fees go up to $700 in Hawaii.

Roy de Loach, CEO of the brokers group, cited one member's experience -- where total appraisal fees for a routine FHA cash-out refi ballooned to $1,068 to the consumer.

Home buyers and realty professionals need to be aware of these sharply escalating fees -- and their controversial use on FHA loans that are supposed to be exempt from the Fannie-Freddie code.

Copyright © 2009 Realty Times. All Rights Reserved.

FICO SCORES

There are recent reports that FHA has raised it's FICO score requirement from 540 to 580. It is even suggested it could go to 600 or more.

If you are in that region of FICO scores, it is suggested you act soon while you have the opportunity and before the bar is raised too high for you to qualify.

Mortgages That Survived The Credit Crunch

From Realty Times of March 12, 2009

Mortgages That Survived The Credit Crunch
by Broderick Perkins


You'll probably have to go to homeownership school.

You'll have to prove you can really afford a mortgage.

You may have to reconsider your location.

And you'll have to run a gauntlet of scrutiny.

Today's mortgages are a far cry from boom time home loans, but they do exist and some lenders have money to burn.

"People used to qualify with stated income. Now there is more documentation. And they aren't just documenting your income, but looking for assets in addition to your income and low debt-to-income ratios and low loan-to-value ratios," said Asmaa Egal, mortgage broker, Loan Republic Financial in San Francisco.

The new brand of home loan has been customized with tighter controls and fewer defects to replace old mortgage models that crashed and burned when the economy hit the skids.

"You have to qualify. You have to prove your income. They have make-sense underwriting," said, Quincy Virgilio, 2009 president of the Santa Clara County Association of Realtors and broker-owner Realty World CA Property Network in San Jose, CA.

FHA-insured mortgages

The new darling of the homebuyer set, Federal Housing Administration-insured mortgage programs, have been available for decades. especially for low- to moderate-income families who may not meet requirements for conventional loans.

But with new loan limits as high as $625,500, they've become especially attractive in high cost areas. FHA loans are expected to account for 25 percent of the mortgages signed in 2009, according to the National Association of Realtors. Because of previously lower loan limits, FHA loans amounted to less than 4 percent of homes sold from 2003 and 2006.

The new FHA model also comes with low down payments and eased credit requirements.

"They are much more lenient (compared to conforming Fannie Mae and Freddie Mac mortgages) on how they look at credit scores. The score can be in the 600s vs. 700s, said Cheryl O'Connor, a finance expert with O'Connor Consulting in Danville, CA.

FHA features include:

• As little as 3 percent down.

• Financed closing costs.

• A 1 percent (of the mortgage) ceiling on the amount lenders can charge for closing costs.

• No prepayment penalties.

• Relaxed debt-to-income requirements.

• FHA-approved lenders only.

• FHA-approved appraisals only.

Virgilio says buyers who don't have 20 percent or more down will pay an upfront mortgage insurance fee amounting to as much as 1.75 percent (of the loan) and a monthly mortgage insurance premium that effectively tacks on another 0.5 percent to the interest rate.

"But you can structure your loan with participation from the seller paying closing costs. Not down payment assistance, but closing costs, but in this marketplace the seller is going for that," said Virgilio.

The best rates (typically fixed, rather than adjustable) go to those who have financial reserves, savings or investments amounting to at least two months worth of a PITI (principle, interest, taxes and insurance) mortgage payment.

Likewise, the best deals go to buyers with a 30 to 33 percent debt-to-income ratio when the debt includes housing and all other monthly debt payments.

In addition to FHA home-buying loans, the "Housing and Economic Recovery Act of 2008" created "Hope For Homeowners" which allows troubled mortgage holders to avoid foreclosure by refinancing into a more affordable, FHASecure mortgage, provided Uncle Sam gets a piece of the equity-growth action and provided the existing lender approves.

Members only

Credit unions largely survived the credit crunch because, as non-profits, the fundamentals apply. They take in deposits. They make loans based on sound underwriting principles. They charge more on those loans than they pay on deposits.

Without the profit motive, there was no incentive to get involved in the subprime racket, no reason to sell and repackage loans as investments and no need to otherwise venture into untried and untrue investment schemes.

Along with fixed-rate 30-year mortgages at rates often lower than banks they also offer conventional adjustable rate mortgages (ARM) and hybrids all with rates typically lower than conventional lenders (From CreditUnion.coop/ search "rates," then see "Ratedex").

"Credit unions have a tendency to be more lenient if you have a bank account with a credit union," O'Connor said.

Credit union originations rose a whopping 10.1 percent during the first half of 2008, according to the industry's federal regulator, the National Credit Union Administration (NCUA). Conventional mortgage lender loan originations took a nose dive, falling 17 percent during the same period.

Rural home loans

Don't get your knickers in a knot over the term "rural."

Loans backed by the United States Department of Agriculture's (USDA) Rural Development Housing and Community Facilities Programs are limited, but you don't have to grow corn or raise chickens.

The loans are for:

• People living in designated rural areas where the population is less than 20,000.

• People with incomes under 115 percent of household median income for the area. In most areas, the upper income limit for borrowers will be $60,000 to $70,000 per year.

• People buying homes, not refinancing or taking out equity loans.

USDA Programs include no-money down loans (imagine that), home improvement and rehabilitation loans and grants, construction loans, loans for minorities and true to the work-ethic of rural life, sweat-equity loans that require buyers to help build their own homes.

Local, state agencies

O'Connor says don't overlook local -- city, county and state -- housing assistance programs that often cater to first-time and or low- to moderate-income home buyers as well as government and service workers including teachers, police officers and fire fighters.

More information is available about state housing efforts from the HUD site.

Local contacts are available through the National Association of Housing and Redevelopment Officials.

Copyright © 2009 Realty Times. All Rights Reserved.

Assistance for Distressed Homeowners

The Federal Housing Administration (FHA) can provide some assistance to homeowners behind on their mortgages.

You can reach a US Department of Housing and Urban Development(HUD)counselor, at no cost or charge to you, for advice and guidance. FHA offers several programs to those eligible including, in some cases, a refinance loan.

In addition, for new loans FHA has relaxed some requirements on bad or leas than perfect credit folks. They also accept a lower down payment of 3.5%, less than conventional mortgages.

Ask your current lender about the "FHA Secure" program.

If you or anyone you know are in a distressed situation and could use some advice and guidance, call a HUD Counselor at 1-800-569-4287. Again, no cost to you and the sooner you act, the better the chance for help.



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HUD GOOD NEIGHBOR NEXT DOOR PROGRAM

A super HUD program available to Police and Teachers - tough to beat a 50% discount:

GOOD NEIGHBOR NEXT DOOR PROGRAM

· HUD offers a substantial incentive in the form of a discount of 50% from the list price of a home to law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical techs.

· In return the borrower must commit to live in the property for 36 months.

· Eligible SFR homes are HUD REOs located in HUD determined “revitalization areas”. To search for HUD listings click the following link. http://www.mcbreo.com/st_azmain.htm. Click on “City” next to “View All Available Properties”.

· HUD requires that the borrower sign a second mortgage note for the discount amount. No interest or payments are required on this “silent second” provided that the borrower fulfills the 3 year occupancy requirement.

· You may use FHA, VA or conventional financing.

· The purchase contract must indicate that the property is eligible for the GNND Program.


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Real Estate Market Defying Odds

An encouraging article from Realty Times of October 14, 2008:

Real Estate Outlook: Real Estate Market Defying Odds by Kenneth R. Harney


The panic and fear that have been shaking Wall Street aren't translating into negative numbers for real estate -- in fact, it's been the reverse.

While the Dow Jones index peeled off a record fourteen hundred points in a matter of days, the latest pending home sales index was moving in the opposite direction -- up strongly to its highest level in more than a year.

Pending sales jumped by 7.4 percent in the latest month, according to the National Association of Realtors.

Financial industry analysts had forecast a one and a half point DECLINE in the index for the month, but pent-up demand for housing, plus rock bottom bargain prices in many markets, convinced buyers that this is a good time to get off the sidelines and get into the game.

The pending home sales index measures new contracts for home purchases that haven't yet gone to closing, but should do so in the near future. It's a widely accepted predictor of sales activity two to three months down the road.

Mortgage rates and new loan applications also defied the negative spiral in the stock market: Applications for home purchases to be financed with conventional mortgages jumped by three percent last week, and new FHA applications were up by nearly 10 percent, according to the Mortgage Bankers Association's national survey.

Interest rates on 30 year fixed rate loans dropped to 5.9 percent and 15 year rates hit 5.7 percent.

Why the sharp divergence in performance between home real estate and Wall Street?

One key reason is that real estate -- which helped trigger the financial crisis through lending abuses and fraud -- has been undergoing its own correction on pricing and underwriting practices for the past two and a half years.

It's already taken its lumps, and has now reached a point where prices in former boom markets are so affordable that smart buyers are swooping in.

Also - although we keep hearing about the global credit squeeze and banks' unwillingness to lend money, that's definitely NOT the case in the mortgage market. There's plenty of money available - as long as you have a solid credit history and some downpayment cash.

Fannie Mae, Freddie Mac and the FHA now account for well over 90 percent of home financing volume, and all three are backed by the federal government.

They've got a direct and virtually unlimited pipeline into the capital markets.

And with mortgage rates under 6 percent, no wonder consumers are shopping for -- and buying -- houses at great prices.

Copyright © 2008 Realty Times. All Rights Reserved.

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Phoenix area progess is on my website at www.denismarque.com on the Welcome page and on the Buyer Help page. Pay us a visit!


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Snag for FHA Hope

From Realty Times of September 22, 2008

Washington Report: Snag for FHA Hope
by Kenneth R. Harney

Although Wall Street's woes got a lot of attention on Capitol Hill last week, so did the continuing crisis in home foreclosures.

Starting October 1, home owners who owe more on their mortgage than their property is worth may be able to qualify for new FHA "Hope" refinancings that cut their debt, lower their interest rates and help them start rebuilding equity.

Sounds like a great opportunity for hundreds of thousands of hard-pressed owners, but there's a huge potential snag: Their lenders and loan servicers have to agree to participate, and they may not.

Why? Because among other requirements, lenders and bond market owners of mortgages will have to agree to write down the balances due on the loans below current market values for the house -- in other words, they'd need to take immediate and sizable losses on those mortgages.

At a House financial services hearing last Wednesday, a top Bank of America executive, Michael Gross, said Congress may have unrealistic assumptions about how many lenders and investors will agree to participate in Hope refinancings.

"My biggest concern," said Gross, "is that expectations for (this) program might be too high."

Rather than booking instant losses many banks and bond investors might prefer to work out customized loan modifications with borrowers instead -- renegotiating loan balances, reducing monthly payments and even interest rates - without having to deal with FHA.

But Congressional critics like House financial services committee chairman Barney Frank say the banks have already been doing that -- and foreclosure rates are still rising in many markets.

Frank is threatening to make massive -- though as yet unspecified -- changes in the federal rules governing home mortgage servicing that would force lenders to be more responsive to borrowers stuck with underwater properties.

In the meantime, borrowers who believe they might benefit from a Hope refinancing, should start talking with their servicers to see whether there's a chance. The law expressly makes the decision voluntary for all financial institutions -- borrowers cannot compel them or take them to court to force their hands.

But Barney Frank's ominous warning to lenders just might get some banks' attention and soften their stances on taking part in the Hope program. At the very least, home owners who talk to their lenders about Hope refinancings could open the door to customized loan modifications that help them out of their jams.

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Copyright © 2008 Realty Times. All Rights Reserved.

FHA Increasing Premiums

From Realty Times:

Washington Report: FHA Increasing Premiums
by Kenneth R. Harney


The politicians may have fled Washington for conventions and vacations, but there's been lots of action at the Federal Housing Administration that could affect home buyers and borrowers across the country.

Tops on the list: Forced by Congress to raise prices, FHA is increasing the mortgage premiums it charges applicants in its booming programs. Starting October 1st, upfront premiums will jump by one quarter of a percentage point -- from the current one and half percent of the loan amount to one and three quarters.

Annual premiums will remain in the half-point range. Home owners seeking refinancing under the expanded "FHASecure" program will be charged 3 points in premiums up front.

FHA had no choice but to raise premiums across the board following Congress's imposition of a one year moratorium on the agency's planned move to "risk based pricing" for all applicants, using credit scores and downpayment amounts.

Under those plans, people with high credit scores and downpayments would be charged lower insurance premiums. Borrowers with low scores and downpayments would be charged more - precisely as they are in the private mortgage insurance industry.

But Congress decided to keep the traditional "one-size-fits-all" cross-subsidization approach that FHA has used for decades, at least for another year.

Seller-paid downpayment gift assistance through third-party organizations such as Nehemiah and Ameridream -- which the agency says have contributed heavily to insurance claims -- will no longer be accepted by FHA as of October 1.

The net effect of the premium increase for most buyers: An extra $500 more in fees up front on a typical $200,000 mortgage.

At the same time, FHA announced a series consumer-friendly changes to the ways it handles loan modifications for borrowers in financial trouble. The bottom line is that when home owners fall behind and need to have their payment terms changed to enable them to stay in the house, fees will be tacked onto their principal debts and any rate hikes will be limited.

Finally, FHA's parent department -- HUD -- made good on its promise and sent its final version of real estate settlement and mortgage disclosure rules -- the so-called "RESPA reform" regulations - for final White House clearance. Though mortgage and real estate industry groups - along with 243 members of the House -- have criticized the rules as unwieldy and potentially costly to implement, HUD said consumers need better disclosures now, not later. The RESPA changes appear likely to be adopted before the next administration arrives in January -- tossing a political hot potato to either John McCain or Barack Obama.



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Copyright © 2008 Realty Times. All Rights Reserved.

Real Estate Outlook: Resales Up, Rate Dip

An article from Realty Times.com:

"Take the latest home resale report: Sales were up by 2 percent nationally in May, and up 5.5 in the Midwest and 4.6 percent in the Northeast".

Real Estate Outlook

That's the good news - now read the rest of the article.

Ah, for the good old days of 2005.

Good old days? But 2005 was only 3 very loooooooong years ago!

Helping Homeowners Keep Their Home

If you or a family member, a co-worker, a friend, or a neighbor behind on payments, make sure you or they read the following:

*Don't ignore the letters from your lender
*Contact your lender immediately
*Contact a HUD-approved Housing Counseling Agency
*Toll FREE (800) 569-4287
*TTY (800) 877-8339

And most important, visit the following website:

Helping Homeowners Keep Their Home

FHA has relaxed many former requirements to get the home lending process in a healing process. It is there for you to use!

FHA Extends Financing for Immediate Purchase of Foreclosed Homes

From RISMedia Real Estate News, Bush has announced a policy to expedite immediate sale of vacant foreclosed properties.

FHA IMMEDIATE SALE OF FORECLOSED PROPERTIES

A little speed up of clearing vacant properties will reduce vandalism, neighborhood blight and loosen up some of the funding needed to get through the housing crisis.
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Fannie Mae Removes High Downpayment Provisions

From NewsGeni.us an article from CNNMoney.com:


Fannie Mae Removes High Downpayment Provisions

This will improve the sale of mortgages by many lenders, thus loosening up the money available to lend on new mortgages.

In parallel, Congress is still kicking around a credit relief program to stimulate the lending process with the aim of resolving the Housing Crisis sooner. Bush is prepared to veto since it's the taxpayers that will pay the price ultimately.

Here is a chance to read the process and progress of such a bill through our congress:


House Bill H.R.3221

Why should I worry, the Government will fix it - if I live long enough.

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Soft Existing-Home Sales Expected Near-Term But to Rise Midsummer

The latest projection from the NATIONAL ASSOCIATION of REALTORS®, WASHINGTON, May 07, 2008

"A flat pattern in home sales activity should continue for the next couple months before improving over the summer, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. "Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas," he said. "As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available."

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said additional costs in many markets are hindering a recovery. “Our members are telling us that more buyers are looking at homes but are slow in signing contracts, and that’s contributing to the weakness in pending home sales,” he said. “In many cases buyers are waiting for greater access to affordable credit, especially in higher cost areas, but some are disappointed with what appears to be unnecessarily restrictive lending requirements. The good news this week is there is some discussion toward relaxing some of the burdensome lending practices.”

The PHSI in the Northeast jumped 12.5 percent in March to 80.8 but remains 15.4 percent below a year ago. In the South, the index slipped 0.1 percent to 84.9 and is 26.7 percent lower than March 2007. The index in the West declined 1.4 percent in March to 91.2 and is 9.5 percent below a year ago. In the Midwest, the index fell 10.4 percent in March to 74.1 and is 22.3 percent below March 2007.

Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year. “Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Yun said. The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.

Some areas already are seeing sales increases, underscoring that all real estate is local. In March, unpublished snapshot data shows sales in Bakersfield, Calif., and Jackson, Miss., were higher than a year ago. At the same time, price gains were noted in markets such as Buffalo-Niagara Falls, and Cedar Rapids, Iowa. On May 13, NAR will report first-quarter data on metropolitan area home prices, covering about 150 metro areas, and state home sales.

"Although some market adjustments are necessary, a downward overshooting of the housing market would cause unnecessary loss in economic output, income and jobs," Yun said. "It is critical to stimulate housing demand by inducing fence sitters back into the market. A home buyer tax credit on any home purchase would accomplish that."

New-home sales are expected to fall 30.9 percent to 536,000 this year before rising 10.1 percent to 590,000 in 2009. Housing starts, including multifamily units, will probably drop 29.5 percent to 955,000 in 2008, and then rise 1.3 percent to 967,000 next year. The median new-home price is estimated to fall 3.7 percent to $238,000 this year, and then rise 5.4 percent in 2009 to $250,900.

The 30-year fixed-rate mortgage is likely to rise gradually to 6.2 percent by the end of the year, and then average 6.3 percent in 2009. NAR’s housing affordability index is expected to rise 10 percentage points to 127.0 for all of 2008.

Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.3 percent in 2009. The unemployment rate is projected to average 5.3 percent in 2008 and 5.5 percent next year.

Inflation, as measured by the Consumer Price Index, is seen at 3.4 percent this year and 2.2 percent in 2009. Inflation-adjusted disposable personal income is forecast to grow 1.2 percent in 2008 and 3.0 percent next year.

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*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for April will be released May 23; the next Forecast / Pending Home Sales Index will be released June 9."

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