Closing Docs 3 Days Before Closing REQUIREMENT H.R. 4229

November 19, 2010 by Leave a Comment

The Borrowers’ Right to Inspect Closing Documents Act of 2009 H.R. 4229 is currently in the House Finance Committee for Review.Home Buyers Have Expectations

But it brings a HUGE question to mind:

“Are we ready to make mortgage lending so precise that we can meet 8 different disclosure dates within each transaction?”

THREE DAYS BEFORE CLOSING???  Mandatory?  Seriously?!?!

Maybe this is another job creation effort by Congress?  Most mortgage companies are so lean, that in order to meet Realtor expectations of closing in 20/30 days (or less), almost ALL mortgage companies would need to hire an extra person for every 10 transactions (IMHO)… or maybe we just need to get REALLY efficient?

I’m trying to figure out where those 3 days are going to come from!  I just made a list of places that might be spots in our office where we might be able to squeeze a few hours -but for the most part underwriting is what sucks up time.  And if you think about the fact that an underwriter can only really look at a new loan every 45 minutes to an hour – you can see why it takes a while to get through there…

I don’t know how we will all change systems to adjust to this latest twist (if it passes) – but I can tell you this much about Mortgage Lending in 2009 and 2010…

Mortgage Lenders deserve an AWARD for being the most flexible industry on the PLANET!

If you are considering a mortgage loan for a home in Cary, call Steve Thorne, Mortgage Broker Raleigh 919-649-5058

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Are Mobile Homes Back on the Radar?

September 3, 2010 by Leave a Comment

FHFA is the Government body that is in charge of just about everything when it comes to regulating FNMA and Freddie Mac. They set out new guidelines and goals for the Agencies this week.

One of the suggestions on the table is for FNMA and FHLMC to offer more financing choices for Mobile Homes in as a way that they can meet their “goals” set by the overseeing agency.

The benchmark goals established could be seen as “production goals” your boss or company sets for you. FHFA  expressed these benchmarks as “minimum goal-qualifying mortgage”  percentages  of each type of home purchase or refinance mortgages acquired by the Enterprises.  They are:

  • 27 percent for the low-income home purchase goal;
  • 8 percent for the very low-income family home purchase goal;
  • A percentage to be set annually by FHFA for the low-income/high minority/disaster areas home purchase goal (with a sub-goal of 13 percent to measure acquisitions in low-income/high minority areas only); and
  • 21 percent for the low-income family refinance goal.

HERA requires that FHFA consider seven factors in setting the single-family housing goals:

  • national housing needs;
  • economic, housing and demographic conditions including expected market developments;
  • the performance and effort of the Enterprises toward achieving the housing goals in previous years;
  • the ability of the Enterprise to lead the industry in making mortgage credit available;
  • such other reliable mortgage data as may be available;
  • the size of the purchase money conventional mortgage market or refinance market serving each of the types of families described, relative to the size of the overall purchase and refinance markets;
  • The need to maintain the sound financial condition of the Enterprises.

Now when you look at HOW FNMA and Freddie are going to achieve this – Mobile Homes pop into my mind! It is very difficult to get a USDA Home Loan or FHA Mortgage Loan on a manufactured home.

If you are considering a home purchase, or want to know if you qualify for a new home, call Steve and Eleanor Thorne, 919-649-5058 we know the market, we know the products and we have the best rates!

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April Housing Numbers Strong – Who Knew?

July 1, 2010 by Leave a Comment

The S&P Case Shiller numbers released June 29, 2010 indicate that there were a ton of people buying homes in April!  WOW!  Who would have guessed that the $8000 tax credit was going to have such a huge impact on sales in April?!

Okay – so I’m being tongue and cheek here.  I think the sales are good for the buyers, the sellers an the Economy.  But I’m just not buying that the chart below shows the REAL picture in what’s going on in the Housing Market.

It is my estimation that once we look at May and June Housing Pricing numbers and activity we will see a SHARP drop. In fact current data indicates that SHOWINGS were way down in May, 2010 after the Tax Credit ended.

While I am fortunate to live in a high growth area (Cary, NC) and this chart shows we are in pretty good shape… I’m still very CAUTIOUSLY optimistic. My concern comes from the Realty Trac numbers in the last 2 weeks that indicates a “Shadow Inventory” of 3.5 years in North Carolina.  Shadow Inventory takes current properties on the market, plus the property banks currently own, plus the homes that are CURRENTLY 4 months past due.  Again, in Charlotte (which is the closest City we have data on) the “TOTAL” Inventory shows a 3.5 year supply.

The Triangle is blessed to have JOBS.  We have tons of people moving here…  so our little corner of the market might be okay… but in general, I fear that the “hoopla” over the April housing numbers is just that, “hoopla” – not a genuine indication that we are on a path of full housing market recovery.

We’ve lived in the Triangle since 1969.  If you are looking for an informed, local consultant to help you with a purchase in this area, call Steve and Eleanor Thorne, River Community Bank, NA 919-649-5058.  We have the best mortgage rates available.

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The FHA Bailout Plan

June 4, 2008 by Leave a Comment

Congress, and specifically the NC delegation and Rep. Barney Frank have a new plan to stop the “bleeding” for many American Families who are upside down in their homes.  This is really not so much a problem for those of us with property in the Triangle – but for folks moving here (and by my unscientific calculations almost 65% of the mortgages are currently being written for folks MOVING HERE), it could be a great deal.

The crux of the problem, as seen by Franks, are the number of new vacant homes that are competing on the market with “used” re-sale homes.  We need to get folks into those new homes, draw the inventory down – and Badda Bing – no more Housing Crisis.

How he proposes to do this is with a 300 Ba Ba BILLION dollar overhaul of FHA which creates a complicated system whereby the banks take a little loss – the seller takes a little loss and the government takes the risk.

IMHO there’s no chance this will make it’s way through Congress prior to the election - but the provisions in the bill – which expand the FHA authority are helpful, and if passed, this could be the end to the Housing Crisis.

The question we must all weigh is weather or not we are willing to take on this additional risk to our collective “Uncle Sam” balance sheet.  It could backfire, drive the dollar lower… and that would put gas at what – $6 bucks a gallon???

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Step 1 of Homebuying in Cary

June 4, 2008 by 7 Comments

fha housesCary has been called “The Land of $400k Houses.” Not so… there are TONS of affordable housing in this area, and there are still ways to purchase those homes with less than perfect credit – and 100% financing.

To do this… you will need a team of dedicated “assistants” (if you will) in the form of your agent and lender – as we will need to work as a team to negotiate the best terms for you and fashion the contract so that it reflects the financing and closing cost terms.  IT CAN BE DONE, and we work with some of the top, award winning agents in this area!

So If You Want to Buy A House? Relax!  Breahe!  You CAN DO THIS!!

Remember these words, “First the LOAN, then the HOME.” In today’s faced paced market, “ball parking” your price range with an agent, or online, is good, but you MAXIMIZE your buying power by being PRE-APPROVED with a Mortgage Loan Consultant FIRST.

The pre-approval process is a simple one, and will provide you with the options which meet your payment comfort zone. The process generally involved calling us and talking on the phone for 30 to 45 minutes.  After that conversation, we decide when we should meet in person.

We can send you Good Faith Estimate of your closing costs, and give you a pre-qualified letter at that time. THEN you are better equipped to meet with a Realtor and find the most house for your money.  Because multiple offers come in on the same home (especially if you are looking at Foreclosed Property!), a PRE-APPROVED buyer has a better chance of being the new homeowner!  This is the first of six steps in the Homebuying process…

If you are considering a purchase in Raleigh or buying a home in Cary, contact Steve and Eleanor Thorne at Corporate Investors Mortgage Group in Cary, NC 919-649-5058

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Risk Based Pricing?

June 4, 2008 by 5 Comments

fha mipYou are buying a home this summer and you are LOVIN’ Life!  Yippee!

Well, if you have credit scores over 640 – there’s more good news!  Effective July 14 FHA will move to Risk Based MIP and your cost of home ownership will be less!

So, what does Risk Based MIP mean and what happens if your score is NOT a 640?

Risk Based MIP means that if you are considered a lower “risk”, because your credit score is 580 (for example) then you will have a higher UFMIP.  What is UFMIP??  It’s the UpFront Mortgage Insurance Premium charged on an FHA loan, and there’s a monthly fee too.  This is going up to 2.0%… meaning that if you borrow $100,000 on an FHA loan – you will also be charged $2000 in MIP.  This mortgage insurance is ADDED to your loan – so your Principal and Interest payments are now based on $102,000 (base loan of $100,000 plus MIP of $2,000).  If you sell the home or refinance in the first 7 to 10 years then a portion of the MIP is refunded back to you.

The most significant part of this change is NOT that the UFMIP is going up… the most significant part is that FHA is going to these steps which many see as the first in moving FHA into the “new” sub prime role.  The Risk Based Matrix actually accept scores down to 525 (and lower)… although we don’t know of “Investors” who are willing to purchase loans at these low credit scores.  FHA does not make loans – they only insure them.  So even though their matrix says you can have a lower score and get a FHA loan - it doesn’t mean that SunTrust (for instance) has to make loans at the lower score.  Our best bet is that it will be at least 12 months before loans for people with credit scores under 580 are made.

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