Blog of the Mortgage

As you now know, or as of this E-mail you now Know:
The President signed into law the Extension of the Tax Credit for First Time Home Buyers, it now includes Move-up buyers as well (a Major Update). The loan limits we've had for the last 2 years are extended as well until the end of 2010.. one more year of much better priced quasi-jumbo loans.
The good thing of course is that home prices keep falling so more and more "high-end" properties will fit into this "Jumbo Conforming/High Balance" Product bucket then ever before especially in tandem with the possibility for $6500 refunded toward closing costs. A .60% to 1.5% Credit of loan amount isn't a bad offset under ANY circumstance.
Let's do some BIG LOANS next year. :)
 
Of course there are always two sides to the story so here's a link to what the I-Banks think about tax credits and Home Prices over the long term. Click Here:

Here's the update from our Potomac Partners:
Tax Credit
The President signed the unemployment extension bill today which includes the extension and expansion of the tax credit. Attached are FAQs prepared by NAR on important operational questions. 
The tax credit provision remains the same.
 
  • First-time home-buyers will continue at $8,000
  • Tax credit for "move up" purchasers will be up to $6,500
  • Must have used previous home as a principal residence for 5 consecutive  years of the previous 8.
  • Income limits increased and are the same for first-time and "move up" purchasers: $125,000 for single filers/$225,000 for joint filers
  • Limitation on eligible home prices has been increased to $800,000
  • Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010
  • Anti-fraud measures have been added
Here's the Link to the Unemployment Bill: Click Here:
BIG CHANGES COMING ON FHA LICENSING:

Here's some news that you may or may not have been aware of coming down the pipe...

HUD/FHA under Secretary Steven's Guidance is making some pretty radical changes in their style an underwriting guidance. We're seeing some of that with the New Streamline requirements limiting loan amounts and requiring income/asset documentation. 

There is more to follow in that realm to be sure.

The BIG news though is that HUD is very close to eliminating entirely the need for FHA Licensing and Audits for ALL Mini-Eagle (brokers, small correspondents funding under on a Captive Line etc.) Licencees.

THIS will really open the door to FHA origination across the board, although personally I don't know how much of a good thing this is for our business.
It's been hard enough for most to even obtain their FHA Approval up to now and then maintaining it beyond that.

HUD Maintains that their rule for the $63.5k minimum networth requirement is too low in today's environment.
There's not Enough "Skin in the Game". HUD would also like to expand the opportunities for consumers and feels that there are not enough options available for consumers today in total. We'll see what happens in the coming month or so.

Here's more from our Potomac Partnerson this process/rule change.

FHA Mortgagee Approval Changes - The proposed rule eliminating FHA approval of mortgage brokers has cleared OMB and now will be sent to Congress for the formal 15 day review prior to publication. 

The rule may become public while in the Congressional review process since documents are frequently leaked during this review process.

The rule could be published in the Federal Register by the end of November.  The rule will likely have a 30-60 day comment period which means it could not be finalized until February 2010 at the earliest.  We do believe that FHA will consider comments before making a final decision.

  Have a great week!

Posted by Raoul Badde on December 23rd, 2009 8:08 AMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

         


Your-AE Bay Area Northern, California 9xxxx
Phone:

My Team | Contact Us - Scenario | Education Station | Home | Submission Requirements | Blog of the Mortgage

Copyright © 2012 Your-AE
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map