A couple of weeks ago Fannie Mae (FNMA) announced yet another game changer to the mortgage and real estate industries. The FNMA LQI (loan quality initiative) was introduced to the mortgage world. Effective for loan applications originated on or after June 1, 2010 (my birthday) Fannie Mae will require a credit "refresh" within 72 hours of funding. The purpose of this credit refresh is to determine any change in a borrower's debt load from time of application. Credit reporting agencies have made a credit comparison report available. The comparison report will be pulled within 72 hours of funding. If an increase in a borrowers debt capacity and/or undisclosed debts from time of initial application have been identified then a refreshed report will be issued and the file will be sent back through underwriting.
More on Another Game Changer, Yet Again: FNMA Loan Quality Initiative
The digital/internet press is heating up as we close in on the November 30th deadline to close a purchase and qualify for the FTHB tax credit. In the office we're slammed with purchase transactions that are heading for a mid-November closing and we couldn't be more blessed. However, there are still a good portion of our qualified borrowers who have yet to find a home. We've heard both positive and negative news recently regarding an potential extension of the tax credit.
More on FTHB Tax Credit: In The Media (that's all we have so far…)
Filed under mortgages by Conrad
Summer is off to a quick start this year. The calendar page hadn't even turned to June and we've had several days in the 80's. With the clouds away for a few months now is a great time to begin searching for a home if you're thinking about purchasing. As previously mentioned in my First Time Homebuyer Tax Credit post, the Federal Government is now offering an $8,000 first time homebuyer tax credit. The tax credit is literally free money people! A first time homebuyer is defined as someone who has not owned a home in the past 3 years. If you don't meet this qualification, I'm sure you know someone who does.
More on Seriously Free Money! (We're talking $8,000)
Filed under mortgages by Conrad
As I mentioned a few weeks ago, President Obama's American Recovery and Reinvestment Act included a new program for struggling home owners. The existing modification program for those who are delinquent is still available, but now there is a program geared towards those who have continued to be responsible with their mortgages, but simply don't have the equity in their home to take advantage of today's low interest rates.
More on Making Home Affordable Refinance
On Tuesday details of President Obama's Housing Affordability Plan became available to the public. The program is still in the very early stages of establishment which means that although there is some information available there isn't enough to make sense of it all. Currently there is a website set up that provides some good information to determine if one is eligible for the program. However, it's important to know that the government's website will just tell you to prepare some documents that will help your current lender decide if your eligible for any help from this program.
More on US Government: Making Home Affordable Refinance
Today the US Senate advances the new Stimulus Bill which includes an increase in the current home buyer tax credit. Currently a home buyer purchasing a home from April 2008 to July 2009 may be entitled to a tax credit up to $7,500. Currently the credit is to be paid back in increments of $500 each year thereafter. The new Stimulus Bill proposes an actual tax credit of 10% of the sales price with a maximum of $15,000. This provision may rid of the requirement to repay the credit, making it a true benefit for the home buyer.
More on Increased Home Buyer Tax Credit
Today the Federal Open Market Committee adjourned their meeting without a change in interest rates. The primary focus of Chairman Ben Bernanke was on the need to resuscitate our private credit markets. The Feds announced that they are prepared to buy long term treasuries if the credit trend continues to be tight in the market.
More on Fed's Hold Benchmark Rate; Focus on Treasuries
A report of existing home sales showed an unexpected rise in December. Purchases grew 6.5% at the end of 2008. As foreclosures have forced existing home sales down throughout most of 2008 it was nice to see a gain on board.
More on Existing Home Sales Rise Unexpectedly
Happy New Year! I have to apologize for not posting for a little over a week. The past month has been, well, hectic. Hectic, however, in a great way. 30 year fixed mortgage rates are the lowest they've been in years and have stayed low for several weeks. There has been a surge of refinance transactions in my office. We're thankful for the business, but we're even more thankful that the rates have been somewhat consistently low for a few weeks. Of course I'm thankful for the opportunity to help those who need to refinance save money on interest, but I'm more thankful that we're starting to see those who are prepared to purchase begin to make decision on homes because they are now a little more affordable.
More on Files, Files, Files…
Filed under mortgages by Conrad
A couple of weeks ago Fannie Mae (FNMA) announced yet another game changer to the mortgage and real estate industries. The FNMA LQI (loan quality initiative) was introduced to the mortgage world. Effective for loan applications originated on or after June 1, 2010 (my birthday) Fannie Mae will require a credit "refresh" within 72 hours of funding. The purpose of this credit refresh is to determine any change in a borrower's debt load from time of application. Credit reporting agencies have made a credit comparison report available. The comparison report will be pulled within 72 hours of funding. If an increase in a borrowers debt capacity and/or undisclosed debts from time of initial application have been identified then a refreshed report will be issued and the file will be sent back through underwriting.
