In other posts, I have written about many causes of mortgage and financial market meltdown, but this press release from Senator Isakson seems to narrow on the correct fix - modify the intent of the Dodd-Frank QRM provisions, but not just because of underwriting problems.
http://isakson.senate.gov/press/2011/062211QRM.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 29, 2011
Thursday, June 23, 2011
Subdivision Ladder
Wouldn't it be nice for a subdivision to purchase one or two ladders and allow the residents to borrow it when needed? That eliminates the purchase of many ladders and storage at the home (which normally won't have the space to store it).
So many times, I have shown homes with 12' or higher chandeliers in their foyers and the normal comment is "Wow, how will I change the bulbs? I'll have to buy a 12' ladder to change the bulbs."
Wouldn't it be so much better to act as a neighborhood and buy one ladder to share it as you need it?
Note: My guess is that we will not cooperate to get the ladder back to its proper place in a timely manor.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
So many times, I have shown homes with 12' or higher chandeliers in their foyers and the normal comment is "Wow, how will I change the bulbs? I'll have to buy a 12' ladder to change the bulbs."
Wouldn't it be so much better to act as a neighborhood and buy one ladder to share it as you need it?
Note: My guess is that we will not cooperate to get the ladder back to its proper place in a timely manor.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 22, 2011
NCRC helps homeowners in mortgage trouble
The National Community Reinvestment Coalition (NCRC) helps those in need of mortgage modification by offering counseling and advice - so don't wait until the last minute, seek help now and get to know the steps to go through and what to do.
Source: http://www.ncrc.org/component/k2/item/536-hcn-offers-assistance-to-dc-residents
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://www.ncrc.org/component/k2/item/536-hcn-offers-assistance-to-dc-residents
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 16, 2011
Mortgage Assistance Relief Services (MARS) Rule Disclosures
7-18-2011: More updates and new stories about relaxation of rule for real estate gents under MARS - http://www.mortgageorb.com/e107_plugins/content/content.php?content.9178
7-16-2011: Many of the provision of the MARS rule is no longer applicable to real estate agents. The power of National Association of Realtors' lobbying efforts? Or just a "kindler or gentler" US Government and Administration? Source: http://www.ccireports.com/company/newsarticle.asp?ArtID=147533
MARS became effective December 29, 2010
In response to the mortgage crisis, government and private sector programs have been initiated to assist distressed homeowners. In March 2009, the Obama Administration launched the Making Home Affordable (MHA) program and the MHA’s Home Affordable Modification Program (HAMP), through which the government provides mortgage owners and servicers with financial incentives to modify and refinance loans.
Among other things, the proposed rule included provisions that would:
Under the program, The Federal Trade Commission (FTC) requires that the advertising short sales need to "clearly and prominently" disclose two things:
"(...Your company/broker name...) is not associated with the government, and our service is not approved by the government or your lender";
"Even if you accept this offer &use our service, your lender may not agree to change your loan."
Source: http://realtytimes.com/rtpages/20110607_disclosure.htm
Source: http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
7-16-2011: Many of the provision of the MARS rule is no longer applicable to real estate agents. The power of National Association of Realtors' lobbying efforts? Or just a "kindler or gentler" US Government and Administration? Source: http://www.ccireports.com/company/newsarticle.asp?ArtID=147533
MARS became effective December 29, 2010
In response to the mortgage crisis, government and private sector programs have been initiated to assist distressed homeowners. In March 2009, the Obama Administration launched the Making Home Affordable (MHA) program and the MHA’s Home Affordable Modification Program (HAMP), through which the government provides mortgage owners and servicers with financial incentives to modify and refinance loans.
Among other things, the proposed rule included provisions that would:
- Prohibit MARS providers from making false or misleading claims;
- Mandate that providers disclose certain information about their services;
- Bar the collection of advance fees for the provision of MARS, except in certain circumstances for attorneys who collect them in connection with preparing or filing documents in bankruptcy, court, or administrative proceedings;
- Prohibit anyone from providing substantial assistance or support to another they know or consciously avoid knowing is engaged in a violation of the rule; and
- Impose record keeping and compliance requirements.
Under the program, The Federal Trade Commission (FTC) requires that the advertising short sales need to "clearly and prominently" disclose two things:
"(...Your company/broker name...) is not associated with the government, and our service is not approved by the government or your lender";
and
"Even if you accept this offer &use our service, your lender may not agree to change your loan."
Source: http://realtytimes.com/rtpages/20110607_disclosure.htm
Source: http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 15, 2011
Cobb County Codes & Ordinances - Some Common Violations
There are laws (codes and ordinances) that all local cities and counties legislate to try and protect the enjoyment of property that may seem intrusive, but are designed to balance lifestyles and freedom from harm.
These are the codes & ordinances for Cobb County: Complete Cobb County Code
Some of the most common code enforcement topics are:
Link to Common Cobb County Code Violations in Subdivisions
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
These are the codes & ordinances for Cobb County: Complete Cobb County Code
Some of the most common code enforcement topics are:
- Dead Trees
- Dwelling Unit
- Door-To-Door Solicitations
- Exterior Attachments
- Fences/Walls
- Grass and Weeds
- Garbage Collection
- Group Home
- Gutters and Shutters
- Home Business
- In-Home Day Care
- Junk Cars
- Leash Law
- Livestock and poultry
- Outside Storage Limitations
- Parking
- Personal Vehicle Sales
- Temporary Signs
- Windows and Exterior Doors
- Yard Sales
Link to Common Cobb County Code Violations in Subdivisions
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, June 14, 2011
Cspan's segment on Proposed Mortgage Rules and Debt Resolution
If you have 35 minutes to spare, watch this Cspan segment on causes of mortgage meltdown & upcoming new mortgage rules.
The proposed new mortgage rules for 20% down payment will be implemented in future and eventually the US Government may get out of most mortgage lending. Right now, Fannie, Freddie, FHA, and VA are over 90% of the loans being created. That may revere itself over the next few years and as a result, fewer borrowers qualifying for a loan.
There are some good calls about what actually caused the mortgage problems.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, June 10, 2011
Bankruptcy News
Hello readers - as usual, as I hear of new Bankruptcy news I will update this blog post.
Some say consumer bankruptcies are on the rise (in 2006 there were less than 600,000 filed; last year (2010) there were 1.4 million, and this year (2011) is on pace to top 1.6 million). The rules to make bankruptcy filing more difficult were instituted in 2006, but that hasn't stopped the growth due to severe economic forces.
According to Page 30A of the Atlanta Business Chronicle, November 12-18, 2010, 1.2 million bankruptcies were filed in 2010 (up 11% from 2009) and 43,016 were business bankruptcies and that number was down about 6%.
Per the 8-5-2010 WSJ (Page A2), Georgia had 6 of the top 10 counties in the US for filing bankruptcies - Only about a quarter of them file Chapter 13 (restructuring) and almost 75aa% filed for Chapter 7 (complete) bankruptcy.
Regardless of whose numbers are accurate, it is distressing to see so many bankruptcy filings
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Some say consumer bankruptcies are on the rise (in 2006 there were less than 600,000 filed; last year (2010) there were 1.4 million, and this year (2011) is on pace to top 1.6 million). The rules to make bankruptcy filing more difficult were instituted in 2006, but that hasn't stopped the growth due to severe economic forces.
According to Page 30A of the Atlanta Business Chronicle, November 12-18, 2010, 1.2 million bankruptcies were filed in 2010 (up 11% from 2009) and 43,016 were business bankruptcies and that number was down about 6%.
Per the 8-5-2010 WSJ (Page A2), Georgia had 6 of the top 10 counties in the US for filing bankruptcies - Only about a quarter of them file Chapter 13 (restructuring) and almost 75aa% filed for Chapter 7 (complete) bankruptcy.
Regardless of whose numbers are accurate, it is distressing to see so many bankruptcy filings
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 9, 2011
Commercial Mortgage Backed Securities – (CMBS)
Apparently, Atlanta had the highest number of CMBS loans in March 2011 and led the nation for troubled CMBS loans. A little less than 10% of all CMBS in the US missed payment in March 2011. The dilemma seems to be that many CMBS are nearing maturity on older properties with lots of vacancies and cash flow (i.e., ability to repay loans) are serious issues to prevent refinancing to repair, improve or refinance debt to lower rates.
Source: (Atlanta Business Chronicle – 4/8-14/2011)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, June 7, 2011
RESPA - Real Estate Settlement & Procedures Act
HUD requires that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses loan terms and closing costs and provide borrowers with a new HUD-1 settlement statement. New RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010. The "New RESPA Rule FAQs" were comprised from industry questions and are posted to facilitate implementation of these new requirements.
Source: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm
However, as disclosed from my earlier BLOG post, the passage of the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB). One of their new responsibilities, once they are formally in place,is to integrate the Truth In Lending Disclosure form with the Good Faith Estimate (GFE) disclosure forms.
Source: http://abirenews.blogspot.com/2011/05/new-mortgage-disclosure-documents-from.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm
However, as disclosed from my earlier BLOG post, the passage of the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB). One of their new responsibilities, once they are formally in place,is to integrate the Truth In Lending Disclosure form with the Good Faith Estimate (GFE) disclosure forms.
Source: http://abirenews.blogspot.com/2011/05/new-mortgage-disclosure-documents-from.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, June 6, 2011
Mortgage Loan Guidance and Information - HUD Settlement Cost Booklet
In accordance with Real Estate Settlement Procedures Act (RESPA) laws, you are supposed to get this HUD settlement cost booklet within 3 days of loan application - http://portal.hud.gov/hudportal/documents/huddoc?id=SETTLMENTBOOKDEC_15REVISED.pdf
The booklet outlines what to expect when considering purchasing a home including
Don't wait to make a loan application to receive and read this booklet - glance through it when you consider buying a home.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The booklet outlines what to expect when considering purchasing a home including
- if it's right for you; what you an afford;
- some of the inspections to perform;
- shopping for a loan and evaluating the different types of loans;
- selecting a lender;
- closing attorney;
- what to expect from the Good Faith Estimate (GFE); and
- an excellent detailed discussion of the HUD-1 Settlement Statement.
Don't wait to make a loan application to receive and read this booklet - glance through it when you consider buying a home.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, June 3, 2011
Will the new Qualified Residential Mortgage (QRM) criteria solve or create more problems?
During the mid 2000's housing boom, did lenders produce lot of crappy loans - yes. Is the QRM a solution to crappy loans - yes, in a way - But isn't it like taking a chainsaw to the table to slice a loaf of bread?
Basically, when the new QRM definition hits the street, any non-Government backed loan will require lenders to keep or holdback 5% or more of the loan amount in case the loan goes south.
Sounds like a reasonable request so lenders don't get too loose with loans. The down sides are this will (a) restrict the amount of money the lender will then have to loan out; (b) will require even more stringent financing qualifications which will (c) further restrict the number of loans approved, and thereby (d) reducing real estate sales in an already depressed real estate market.
FHA, VA, USDA (rural properties), Fannie Mae and Freddie Mac (currently government owned) will be exempt from the 5% "holdback" risk retention regulations of Dodd-Frank.
All other loans will need to require 20% or higher down payments and Debt-To-Income ratios of 28/36 or better or they face the 5% holdback.
You now, alot of people, including "elected" US Senators, are griping about this - so what problems does it solve and which ones does it create?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Basically, when the new QRM definition hits the street, any non-Government backed loan will require lenders to keep or holdback 5% or more of the loan amount in case the loan goes south.
Sounds like a reasonable request so lenders don't get too loose with loans. The down sides are this will (a) restrict the amount of money the lender will then have to loan out; (b) will require even more stringent financing qualifications which will (c) further restrict the number of loans approved, and thereby (d) reducing real estate sales in an already depressed real estate market.
FHA, VA, USDA (rural properties), Fannie Mae and Freddie Mac (currently government owned) will be exempt from the 5% "holdback" risk retention regulations of Dodd-Frank.
All other loans will need to require 20% or higher down payments and Debt-To-Income ratios of 28/36 or better or they face the 5% holdback.
You now, alot of people, including "elected" US Senators, are griping about this - so what problems does it solve and which ones does it create?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 2, 2011
Reading into $100 Down HUD homes
Per the Mortgagee Letter 2011-19, if Buyer are purchasing HUD properties (i.e., homes that were foreclosed under an FHA loan), and placing $100 down, then the Buyer can roll the UFMIP (Up Front Mortgage Insurance Premium) into the loan provided the total amount of the loan plus the UFMIP doesn't exceed 100% of the "as-is" (i.e., FHA appraisal amount).
Reading between the lines tells me they are willing to settle for less than the asking price since they are allowing for the UFMIP charge of currently 1% of the loan (http://abirenews.blogspot.com/2010/09/changes-to-fha-up-front-annual-mortgage.html) and net of the $100 down payment, to be rolled into the loan up to a certain level.
Source: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-19ml.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Reading between the lines tells me they are willing to settle for less than the asking price since they are allowing for the UFMIP charge of currently 1% of the loan (http://abirenews.blogspot.com/2010/09/changes-to-fha-up-front-annual-mortgage.html) and net of the $100 down payment, to be rolled into the loan up to a certain level.
Source: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-19ml.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
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