Starting today, July 30th, certain disclosures have to be provided to borrowers within three business days when an application is taken.
This affects all types of loans offered in all 50 states.
The closing cannot be scheduled until at least 7 business days after initial disclosures have been sent out. Saturday is considered a business day. No Federal holidays or Sundays are included.
The lender will need to re-disclose if there are any changes made to a loan program, terms and/or APR. If the APR increases or decreases by .125% on fixed loans and .250% on ARM, they will need to re-disclose.
If re-disclosed, borrower will need to wait three business days after they receive the re-disclose packet. Therefore, it will be three days to receive the packet and three additional days to wait. The only way the three day wait will be waived is if the lender hand carries the disclosures to the borrower.
Lenders cannot collect any fees upfront except for the appraisal fee for which a credit card authorization form will be provided and charged once the report is completed by the appraiser.
There will be no exceptions to the above effective July 30th.
Please call your lender if you have any questions or concerns regarding these changes.
www.TeamDowns.com
Thursday, July 30, 2009
Monday, July 27, 2009
20 Ways to Waste Your Money
There are many small things that you might be spending money on but hardly noticing. These small items can add up to big money. Once you determine these small items, you will keep more money in your pocket for savings, investing or break your cycle of living paycheck to paycheck.
See if any of these items sound familiar, and I hope you find them useful.
How you could be wasting your money
1. Buying new instead of used, ie: a new car.
2. Carrying a credit card balance with a high interest rate.
3. Buying on impulse.
4. Paying to use an ATM.
5. Dining out frequently.
6. Letting your money wallow in a savings or checking account.
7. Paying an upfront fee for a mutual fund.
8. Paying too much in taxes or investments.
9. Buying brand name vs. generic.
10. Wasting electricity.
11. Paying banking fees.
12. Buying things you do not use.
13. Owning an extra car.
14. Ignoring your local dollar store.
15. Keeping unhealthy habits.
16. Being complacent about insurance.
17. Giving Uncle Sam an interest free loan.
18. Paying for something you can get for free.
19. Not using a flexible spending account.
20. Paying for unnecessary services.
I read this article in detail today from Yahoo! sources. You can view the full article here by Erin Burt provided by Kiplinger.com.
See if any of these items sound familiar, and I hope you find them useful.
How you could be wasting your money
1. Buying new instead of used, ie: a new car.
2. Carrying a credit card balance with a high interest rate.
3. Buying on impulse.
4. Paying to use an ATM.
5. Dining out frequently.
6. Letting your money wallow in a savings or checking account.
7. Paying an upfront fee for a mutual fund.
8. Paying too much in taxes or investments.
9. Buying brand name vs. generic.
10. Wasting electricity.
11. Paying banking fees.
12. Buying things you do not use.
13. Owning an extra car.
14. Ignoring your local dollar store.
15. Keeping unhealthy habits.
16. Being complacent about insurance.
17. Giving Uncle Sam an interest free loan.
18. Paying for something you can get for free.
19. Not using a flexible spending account.
20. Paying for unnecessary services.
I read this article in detail today from Yahoo! sources. You can view the full article here by Erin Burt provided by Kiplinger.com.
Tuesday, July 7, 2009
Low Ball Appraisals Spark Uproar
By Kenneth R. Harney
Saturday, July 4, 2009
It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house -- probably negatively -- by tens of thousands of dollars. The issue involves lowballed appraisals and the new rules guiding appraisers in both price-depressed and rebounding markets.
Consider these snapshots: In San Diego, Steve Doyle, division president for Brookfield Homes is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. But recently there's been a major hitch: Appraisers assigned by banks are coming in with valuations of $60,000 or more under Doyle's selling prices. The appraisers, who Doyle says are inexperienced, unfamiliar with local market trends or both, are using distressed sales -- foreclosures and short sales of existing houses -- as their "comparables." Some of the distressed properties are in poor condition, and all of them offer fewer amenities, Doyle says.
In Wilmington, N.C., a loan applicant with a house in excellent condition and an unblemished payment record sought to refinance into a 4.75 percent mortgage. She bought the property four years ago for $160,000 and made about $20,000 worth of improvements. Her loan application, according to Paul Skeens, president of Colonial Mortgage Group of Waldorf, was "a slam dunk -- nothing to it." The house was worth $180,000 to $200,000, according to a local realty estimate. But when the bank sent in an appraiser with little local knowledge, he chose as comparables two short-sale properties that had both closed in the mid-$140,000 range and one inheritance sale around $155,000. The last property was "in horrible condition," Skeens said. "I'd call it dog meat." The deal-paralyzing appraised value that came in for the slam-dunk refi: $149,000.
In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients' lots. Recently, he said, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are in foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who looked only at online data, according to Perfetto -- discouraging the couple from proceeding. "I think the pendulum is swinging way too far in the wrong direction on appraisals," Perfetto said.
Bank-assigned appraisers often "don't know the local market and they're going for low numbers to be 'safe.' " * * * Complaints about lowballed appraisals -- from builders, real estate agents, consumers and mortgage companies -- have erupted since May 1, when government-backed Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge that the new system fosters the use of appraisers willing to work for low fees -- sometimes 50 percent below previous standards -- and who are willing to conduct home appraisals far outside their typical areas of activity. The Fannie-Freddie system -- known as the Home Valuation Code of Conduct -- is complicated by the fact that it is a byproduct of a legal settlement in 2008 between New York Attorney General Andrew M. Cuomo and the two big mortgage investors.
Under the code, appraisers are now routinely assigned by appraisal management companies rather than local mortgage companies or loan officers. The management companies pocket as much as 40 percent to 50 percent of the appraisal fee paid by the consumer. Frustration with the new system boiled over and made its way to Capitol Hill late last month. The National Association of Home Builders called for an immediate change in the rules governing the use of foreclosures, short sales and other distress transactions as comparables for appraisals on non-distressed homes, whether new or resale. Two congressmen -- Travis W. Childers (D-Miss.) and Gary G. Miller (R-Calif.) -- have introduced legislation calling for an 18-month moratorium on the appraisal code. In identical letters to Cuomo and to James B. Lockhart III, the top regulator of Fannie Mae and Freddie Mac, the National Association of Realtors also requested a moratorium and complained that the code is raising consumer costs, distorting property values and killing sales. Asked for comment, Lockhart said through a spokesperson that his agency is "monitoring" the situation, and considers "the views of market participants important."
Bottom line: Be aware of the issue. It affects your equity, even if you're not currently buying or selling. And watch whether Congress fixes the problem.
This is also happening in Texas.
Saturday, July 4, 2009
It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house -- probably negatively -- by tens of thousands of dollars. The issue involves lowballed appraisals and the new rules guiding appraisers in both price-depressed and rebounding markets.
Consider these snapshots: In San Diego, Steve Doyle, division president for Brookfield Homes is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. But recently there's been a major hitch: Appraisers assigned by banks are coming in with valuations of $60,000 or more under Doyle's selling prices. The appraisers, who Doyle says are inexperienced, unfamiliar with local market trends or both, are using distressed sales -- foreclosures and short sales of existing houses -- as their "comparables." Some of the distressed properties are in poor condition, and all of them offer fewer amenities, Doyle says.
In Wilmington, N.C., a loan applicant with a house in excellent condition and an unblemished payment record sought to refinance into a 4.75 percent mortgage. She bought the property four years ago for $160,000 and made about $20,000 worth of improvements. Her loan application, according to Paul Skeens, president of Colonial Mortgage Group of Waldorf, was "a slam dunk -- nothing to it." The house was worth $180,000 to $200,000, according to a local realty estimate. But when the bank sent in an appraiser with little local knowledge, he chose as comparables two short-sale properties that had both closed in the mid-$140,000 range and one inheritance sale around $155,000. The last property was "in horrible condition," Skeens said. "I'd call it dog meat." The deal-paralyzing appraised value that came in for the slam-dunk refi: $149,000.
In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients' lots. Recently, he said, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are in foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who looked only at online data, according to Perfetto -- discouraging the couple from proceeding. "I think the pendulum is swinging way too far in the wrong direction on appraisals," Perfetto said.
Bank-assigned appraisers often "don't know the local market and they're going for low numbers to be 'safe.' " * * * Complaints about lowballed appraisals -- from builders, real estate agents, consumers and mortgage companies -- have erupted since May 1, when government-backed Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge that the new system fosters the use of appraisers willing to work for low fees -- sometimes 50 percent below previous standards -- and who are willing to conduct home appraisals far outside their typical areas of activity. The Fannie-Freddie system -- known as the Home Valuation Code of Conduct -- is complicated by the fact that it is a byproduct of a legal settlement in 2008 between New York Attorney General Andrew M. Cuomo and the two big mortgage investors.
Under the code, appraisers are now routinely assigned by appraisal management companies rather than local mortgage companies or loan officers. The management companies pocket as much as 40 percent to 50 percent of the appraisal fee paid by the consumer. Frustration with the new system boiled over and made its way to Capitol Hill late last month. The National Association of Home Builders called for an immediate change in the rules governing the use of foreclosures, short sales and other distress transactions as comparables for appraisals on non-distressed homes, whether new or resale. Two congressmen -- Travis W. Childers (D-Miss.) and Gary G. Miller (R-Calif.) -- have introduced legislation calling for an 18-month moratorium on the appraisal code. In identical letters to Cuomo and to James B. Lockhart III, the top regulator of Fannie Mae and Freddie Mac, the National Association of Realtors also requested a moratorium and complained that the code is raising consumer costs, distorting property values and killing sales. Asked for comment, Lockhart said through a spokesperson that his agency is "monitoring" the situation, and considers "the views of market participants important."
Bottom line: Be aware of the issue. It affects your equity, even if you're not currently buying or selling. And watch whether Congress fixes the problem.
This is also happening in Texas.
Wednesday, July 1, 2009
New Record Level Set for D/FW Home Foreclosure Postings
6,072 residential postings filed for July auctions.35,121 residential postings recorded so far this year.
JULY FORECLOSURE POSTINGS
Mr. Roddy stated, "Monthly residential foreclosure posting activity has topped 6,000 for the first time in this foreclosure cycle in the Dallas/Fort Worth Metro."
He continued, "For the upcoming foreclosure auctions to be held on July 7th, 66,072 postings have been filed on homes located in the four-county D/FW Metro, which was 62% surge over the 3,747 notices filed on area homes for the July auctions of last year.
Mr. Roddy stated, "For the last 10 consecutive months, residential foreclosure posting activity has resided on the high-end of this foreclosure cycle with monthly postings exceeding 4,000 notices per month in the D/FW Metro. And, for the past 4 month in a row, home postings have consistently been above 5,000 per month. Now, for the first time in this foreclosure cycle and most likely the first time on record, D/FW home postings have skyrocketed above the 6,000 mark.
What does this mean for the market? A lot of competition and a great time to buy a home at a great price!! Call me for more details.
JULY FORECLOSURE POSTINGS
Mr. Roddy stated, "Monthly residential foreclosure posting activity has topped 6,000 for the first time in this foreclosure cycle in the Dallas/Fort Worth Metro."
He continued, "For the upcoming foreclosure auctions to be held on July 7th, 66,072 postings have been filed on homes located in the four-county D/FW Metro, which was 62% surge over the 3,747 notices filed on area homes for the July auctions of last year.
Mr. Roddy stated, "For the last 10 consecutive months, residential foreclosure posting activity has resided on the high-end of this foreclosure cycle with monthly postings exceeding 4,000 notices per month in the D/FW Metro. And, for the past 4 month in a row, home postings have consistently been above 5,000 per month. Now, for the first time in this foreclosure cycle and most likely the first time on record, D/FW home postings have skyrocketed above the 6,000 mark.
What does this mean for the market? A lot of competition and a great time to buy a home at a great price!! Call me for more details.
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