September 1, 2010--The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”
What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.
“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”
Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.
Provided by RISmedia
Aug 16, 2010
New website provided by Fannie Mae--Providing your Options
Fannie Mae has launched KnowYourOptions.com™, a new consumer education Web site that outlines the choices available to homeowners who are struggling with their mortgage payments, and provides guidance on how they can contact and work with their mortgage company to find solutions.
The information is very informative. It provides a "one stop shop" for answers to the questions you may have in regard to your mortgage, mortgage default, foreclosure and options to avoid foreclosure. It serves as a great tool for deciding the next step if you or someone you may know is having a difficult time making mortgage payments.
Take a peek, its a pretty cool site! Immediately upon landing on the page, a woman stands up to "speak" with you about how the site can help. Its like having your own personal guide.
Visit: KnowYourOptions.com
The information is very informative. It provides a "one stop shop" for answers to the questions you may have in regard to your mortgage, mortgage default, foreclosure and options to avoid foreclosure. It serves as a great tool for deciding the next step if you or someone you may know is having a difficult time making mortgage payments.
Take a peek, its a pretty cool site! Immediately upon landing on the page, a woman stands up to "speak" with you about how the site can help. Its like having your own personal guide.
Visit: KnowYourOptions.com
Jun 12, 2010
Did You Hear? Did you Hear?
The Towers of Channelside has been approved for FHA financing! Hooray!
The Towers of Channelside, a luxury condominium community in Tampa Bay's Channel District — recently secured FHA financing approval. This is a huge opportunity because FHA financing opens the door to home ownership for more people by allowing
- Lower down payments — just 3.5%. With prices at The Towers starting at under $200,000, that could mean a down payment just under $7,000.
- Lowest fixed or ARM interest rates in the market
- Lower credit score rating and higher debt-to-income ratios
Jun 8, 2010
Bank of America to Settle More Countrywide Charges
Bank of America has agreed to pay $108 million to settle charges that Countrywide Financial Corp., which it acquired two years ago, charged large and unfair fees to borrowers facing foreclosure.
The settlement, which will refund money to about 200,000 borrowers, was announced Monday by the Federal Trade Commission.
FTC Chair Jon Leibowitz said Countrywide engaged in “callous conduct that took advantage of consumers already at the end of their financial rope.”
Source: Associated Press, Alan Zibel (06/07/2010)
May 19, 2010
Yikes. Mortgage Applications Fall Sharply
Mortgage applications declined 27.1 percent last week compared to the previous week, on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
The unadjusted purchase index decreased 27 percent compared with the previous week and was 24.1 percent lower than the same week a year ago. This is the lowest level of applications for home purchases observed in the survey since May 1997.
“The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, vice president of research and economics for the MBA.
Mortgage rates are at bargain levels:
Source: Mortgage Bankers Association (05/19/2010)
The unadjusted purchase index decreased 27 percent compared with the previous week and was 24.1 percent lower than the same week a year ago. This is the lowest level of applications for home purchases observed in the survey since May 1997.
“The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, vice president of research and economics for the MBA.
Mortgage rates are at bargain levels:
- 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent.
- 15-year fixed-rate mortgages decreased to 4.19 percent from 4.32 percent.
- 1-year ARMs decreased to 6.81 percent from 6.86 percent.
Source: Mortgage Bankers Association (05/19/2010)
May 11, 2010
Florida Bound Oil (Courtesy of BP)
Fla. to BP: Pay for ad saying we’re OK
ST. PETERSBURG, Fla. – May 10, 2010 – Florida CFO Alex Sink met with BP Executive Keith Seilhan at the Deepwater Horizon Incident Command Center in St. Petersburg, and asked for BP's commitment to help the state and its small businesses recover from economic losses by funding an advertising campaign to let the world know that Florida and its beaches are oil-free, open for business and as beautiful as ever.
Our businesses and our state cannot afford for our number one industry to be impacted by misinformation, Sink told BP. We must act quickly to preserve the most economically important months of the tourist season, especially for our Gulf Coast counties.
The state is already attempting to show potential visitors that the oil slick has not impacted tourist sites. Through www.VISITFLORIDA.com, vacationers can watch live Twitter feeds and read up-to-the-minute information on the status of any city or region in Florida, allowing them to see first-hand whether or not an area is currently affected. VISIT FLORIDA is working closely with DEP and other state agencies to ensure that Floridians and visitors are kept informed of any potential impacts through real-time updates.
Sink asked BP to dedicate an executive level representative to Florida, with that exec focused on the mounting costs to Florida businesses from interruptions caused by oil spill concerns. According to Sink, the Florida Consumer Services Division has already heard from Panhandle businesses facing business interruptions from the oil spill. During her meeting with Seilhan, Sink also emphasized the need to expedite the claims process for Florida's small businesses.
As another way to offset potential losses, BP executives were asked to recruit Florida residents to do any cleanup work and to buy supplies from the state's businesses.
© 2010 Florida Realtors®
May 3, 2010
Tax credit has expired for most but still available for Military
WASHINGTON – April 28, 2010 – Members of the military, foreign service and intelligence communities may have an additional year to buy a home and claim the homebuyer tax credit – up to $8,000 – that expires for most Americans on April 30.
To qualify for the extended tax credit deadline, service members must have served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, and April 30, 2010. If so, they have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. The rule includes both the $8,000 first-time and $6,500 repeat homebuyer tax credit.
Under the law, "qualified service members" includes those serving in the uniformed services of the United States military, a member of the Foreign Service of the United States or an employee of the intelligence community.
The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they must sell their home after receiving government orders for extended duty service.
© 2010 Florida Realtors®
Apr 29, 2010
Foreclosure update--Has the Market shifted? (again)
Foreclosures Decline in Most Hard-Hit Markets
Among the 20 U.S. metropolitan areas with the highest foreclosure rates, foreclosures actually declined in the last year, falling in 14 of the top 20 cities and eight of the top 10, reports RealtyTrac, which provides a market platform for foreclosures.
“The decreasing foreclosure activity in some of the nation’s top foreclosure hot spots in the first quarter is largely the result of government intervention and other non-market influences, and not a sure signal that those areas are out of the woods yet when it comes to foreclosures,” says RealtyTrac CEO James J. Saccacio.
Nationwide, foreclosure activity increased in 159 of the 206 metro areas RealtyTrac tracks and was up 16 percent overall compared to the first quarter of 2009.
Here are the top 10 cities with the most foreclosures:
1. Las Vegas-Paradise, Nev.
2. Modesto, Calif.
3. Cape Coral-Fort Myers, Fla.
4. Riverside-San Bernardino-Ontario, Calif.
5. Stockton, Calif.
6. Merced, Calif.
7. Phoenix-Mesa-Scottsdale, Ariz.
8. Vallejo-Fairfield, Calif.
9. Bakersfield, Calif.
10. Orlando-Kissimmee, Fla.
Source: RealtyTrac (04/29/2010)
Among the 20 U.S. metropolitan areas with the highest foreclosure rates, foreclosures actually declined in the last year, falling in 14 of the top 20 cities and eight of the top 10, reports RealtyTrac, which provides a market platform for foreclosures.
“The decreasing foreclosure activity in some of the nation’s top foreclosure hot spots in the first quarter is largely the result of government intervention and other non-market influences, and not a sure signal that those areas are out of the woods yet when it comes to foreclosures,” says RealtyTrac CEO James J. Saccacio.
Nationwide, foreclosure activity increased in 159 of the 206 metro areas RealtyTrac tracks and was up 16 percent overall compared to the first quarter of 2009.
Here are the top 10 cities with the most foreclosures:
1. Las Vegas-Paradise, Nev.
2. Modesto, Calif.
3. Cape Coral-Fort Myers, Fla.
4. Riverside-San Bernardino-Ontario, Calif.
5. Stockton, Calif.
6. Merced, Calif.
7. Phoenix-Mesa-Scottsdale, Ariz.
8. Vallejo-Fairfield, Calif.
9. Bakersfield, Calif.
10. Orlando-Kissimmee, Fla.
Source: RealtyTrac (04/29/2010)
Apr 27, 2010
Hooray to our Florida Legislators! Appraisal Companies Required to Get Licenses (Governor Signature Still Needed)
The Florida Senate today approved legislation requiring Appraisal Management Companies (AMCs) operating in Florida to register with the Department of Business and Professional Regulation (DBPR). This is one of Florida Realtors' key legislative initiatives this session. The bill now goes to the governor for his signature.
In addition to mandating registration with DBPR, the bill, once signed by Gov. Charlie Crist, will create a list of AMCs working in Florida and their locations. The bill also bans appraisers who have lost their state license from operating an AMC.
"There has been tremendous growth in the use of AMCs in the last several years," says Sarah Zieman Martinez of Florida Realtors' Public Policy team. "They play an important role in the real estate transaction but lack necessary oversight. This legislation not only requires AMCs to register with the state business board, but it also allows the Florida Real Estate Appraisal Board to adopt rules to specify the means by which an appraiser's signature may be affixed to an appraisal report."
The bill, SB 2210 by Sen. Lee Constantine (R-Altamonte Springs), passed the Senate unanimously. Its companion bill, HB 303 by Rep. Matt Hudson (R-Naples), who's also a Realtor, passed the House yesterday on a 112-0 vote.
AMCs are business entities that administer a network of independent contractor appraisers who do real estate appraisals on behalf of clients, primarily lenders.
Currently, eight other states have laws regulating AMCs. Legislation is pending in 16 other states.
© 2010 Florida Realtors®
Apr 20, 2010
FHA to Accept DocuSign for Real Estate Contracts Nationwide
The way we sign Real Estate contracts is changing
Stop! End all attempts to create a signature that is hard to duplicate and often illegible. No writers cramp here, the ease of signing the purchase or sale documents have been accepted by FHA (Federal Housing Adminstration). Included will be a savings in resources (ink, Paper, trees). Our world is becoming more dependent upon electronics and one of the most important industries to our economy is ready to embrace the inevitable-- a paperless existence.
DocuSign®, the leader in on-demand electronic signature solutions, has announced e-signed third-party documents, including real estate contracts, are now being accepted by the Federal Housing Administration (FHA). DocuSign spearheaded an industry-wide effort to move the FHA to formally recognize e-signed third-party documents. The April 8, 2010 dated FHA mortgagee letter is the first in what is expected to be a series of responses to this initiative. With this policy statement from the nation’s largest mortgage insurer, real estate professionals can use DocuSign to get real estate contracts, addenda and other documents signed electronically, and their buyers can apply for FHA insurance with confidence. The FHA mortgagee letter can be found athttp://nhl.gov/offices/adm/hudclips/letters/mortgagee/files/10-14ml.pdf
Real estate agents can quickly access the DocuSign e-signing service from any laptop with Internet access, drag and drop familiar yellow StickEtabs® onto the contract and send the envelope. The recipient immediately receives an e-mail notification that can be accessed through a computer or any Web-enabled mobile device, including Apple® iPhone®, RIM® BlackBerry®, Google® AndroidTM, Windows Mobile®, adopts an e-signature and signs the document. Once completed, an e-mail notification is sent to all parties with a link to the final executed document. The result is a legally binding, fully ESIGN-compliant document supported by a comprehensive audit trail.
DocuSign requires no additional software or hardware purchases and no downtime for training. DocuSign eSignature service offers users one of the easiest, most simple to use and safest electronic signature experiences available today. For more information on DocuSign, visitwww.docusign.com.
Ready to sign?
Source Realtown.com
Mar 27, 2010
More Investor Opportunities?
Delinquent Mortgages at Nearly 14 Percent Nearly 14 percent of all mortgages were in trouble in the fourth quarter of 2009, according to a report released Thursday by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
More than 4.7 percent of all mortgages were more than 90 days past due in the fourth quarter, a 21.1 percent increase from the same quarter in 2008. The number of troubled borrowers with prime mortgages increased 16.5 percent year over year.
Foreclosure sales, short sales, and deed-in-lieu-of-foreclosure actions rose by 8.6 percent from the third quarter to 163,224 and were up 44.5 percent from fourth quarter 2008.
The report, which reflects 34 million loans with nearly $6 trillion in principal balances, said: “Loan servicers reported that they expect new foreclosure actions to increase in the upcoming quarters as many of the mortgages that are seriously delinquent may eventually result in foreclosure as alternatives that prevent foreclosure are exhausted.”
More than 4.7 percent of all mortgages were more than 90 days past due in the fourth quarter, a 21.1 percent increase from the same quarter in 2008. The number of troubled borrowers with prime mortgages increased 16.5 percent year over year.
Foreclosure sales, short sales, and deed-in-lieu-of-foreclosure actions rose by 8.6 percent from the third quarter to 163,224 and were up 44.5 percent from fourth quarter 2008.
The report, which reflects 34 million loans with nearly $6 trillion in principal balances, said: “Loan servicers reported that they expect new foreclosure actions to increase in the upcoming quarters as many of the mortgages that are seriously delinquent may eventually result in foreclosure as alternatives that prevent foreclosure are exhausted.”
New Foreclosure Prevention Plan Announced
President Obama is announcing an expansion of foreclosure-prevent tactics, including a plan to reduce principal balances and special aid for unemployed borrowers.
The bulk of the responsibility for carrying out the new program will be assigned to the Federal Housing Administration, which will insure lenders against part of the losses.
The plan asks banks to write down loan balances to less than the value of the home. If there is both a first and second mortgage, the combined total would have to be no more than 115 percent of the home’s value.
The Treasury would pay part of unemployed homeowners’ loans for three months while they job hunt.
Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (03/25/2010)
Mar 23, 2010
Florida’s existing home sales rose in February
ORLANDO, Fla. – March 23, 2010 – Florida’s existing home sales rose in February, which means that sales activity has increased in the year-to-year comparison for the past year and a half (18 months), according to the latest housing data released by Florida Realtors®.
Existing home sales increased 21 percent last month with a total of 11,890 homes sold statewide compared to 9,867 homes sold in February 2009, according to Florida Realtors. Statewide existing home sales last month increased 13.6 percent over statewide sales activity in January.
Florida Realtors also reported a 59 percent increase in statewide sales of existing condos in February compared to the previous year’s sales figure; statewide existing condo sales last month rose 9.8 percent over the total units sold in January.
Source: FL Realtors
Existing home sales increased 21 percent last month with a total of 11,890 homes sold statewide compared to 9,867 homes sold in February 2009, according to Florida Realtors. Statewide existing home sales last month increased 13.6 percent over statewide sales activity in January.
Florida Realtors also reported a 59 percent increase in statewide sales of existing condos in February compared to the previous year’s sales figure; statewide existing condo sales last month rose 9.8 percent over the total units sold in January.
Source: FL Realtors
Feb 16, 2010
Former Countrywide borrowers get cash!
TALLAHASSEE, Fla. – Feb. 16, 2010 – More than 2,700 people will receive checks from a 2008 settlement Florida negotiated with Countrywide Financial Corporation. As part of the settlement, Countrywide is offering foreclosure relief payments to eligible borrowers who returned valid and timely claim forms and releases under a program administered by the Countrywide settlement administrator.
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
Feb 3, 2010
Great News for Investors!!
FHA Relaxes Anti-Flipping Rule
Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.
The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.
Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.
FHA's change "is going to be absolutely terrific" for first-time home buyers hoping to take advantage of the tax credit, says Bobby Taylor, an associate with Coldwell Banker Mountain West Real Estate in Salem, Ore.
Source: Washington Post
Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.
The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.
Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.
FHA's change "is going to be absolutely terrific" for first-time home buyers hoping to take advantage of the tax credit, says Bobby Taylor, an associate with Coldwell Banker Mountain West Real Estate in Salem, Ore.
Source: Washington Post
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