Posted by admin | Under Mortgage
Tuesday Aug 18, 2009
Purchasing a home is one of life’s biggest financial and personal investments. The process of getting a mortgage can be complex. Before acquiring a mortgage, it is important to learn what the process involves.
A mortgage is a loan one acquires through a lender to pay for a new home. You will have to repay the loan with interest by making monthly payments for the term of the loan. If you do not repay the loan according to the agreed terms and conditions, the lender can foreclose on you and sell the home to recover the money you owe.
1. Choose the Right Mortgage For You: Before choosing a home, you should know how much you can afford. A mortgage calculator will help you determine the maximum amount you can afford. These calculators are available online and will give you a good idea about how much you will have to pay each month.
Choosing the right mortgage is essential to purchasing a home. There are a number of mortgages on the market so the choice depends on which one suits your needs. There are as many types of mortgages to select from as there are styles of houses to purchase. The two main mortgages are Fixed-Rate Mortgages and Variable-Rate Mortgages. Fixed-rate mortgages provide an interest rate that remains the same for the entire life of the mortgage. They have terms of either 15 or 30 years. Variable-rate mortgages, or adjustable-rate mortgages, provide rates that change according to the market conditions. Sub-prime mortgages are offered to people who have some credit problems.
Mortgage products can vary from lender to lender. It is important that you obtain a number of different quotes. Consulting with a financial adviser will help you find the deal that fits your particular financial situation.
2. Acquire the Mortgage: Once you know the purchase price of the home, you must secure the mortgage. There is a lot of paperwork involved with securing a mortgage loan. The lender will require your credit history, employment record and financial assets and liabilities. You will also need a home appraisal. Lenders can include: banks, credit unions, mortgage broker, or an online lender.
A bank lends the money directly to you. A mortgage broker represents the mortgage loan products of many different lenders. The broker will find the best mortgage product that meets your needs. Your monthly payment is determined by the rate and the amount of the negotiated loan. The payment will also be based on the type of mortgage and its terms.
3. Complete the Home Purchase: Once you have found the right mortgage for you and acquired a mortgage lender who will lend to you, you must complete the purchase of the home. The process of closing a home purchase requires a lot of paperwork. It will also require attorneys. There will be attorney fees, transfer fees, property registration fees, taxes, title insurance fees… etc.
Research and knowledge are the best tools to making the mortgage process run smoothly. It will make your home buying experience much less stressful.
Whether you’re looking for mortgage rates or great GIC rates, with Meridian Credit Union you’ll have a customized financial plan that makes sense for you.
Posted by admin | Under Mortgage
Tuesday Aug 18, 2009
Mortgage rates rose again this week. This is the third time in the last 4 weeks that mortgage rates have risen. Why are mortgage rates rising? There are numerous factors at play but generally once the economy recovers it’s expected that inflation, and mortgage rates, should rise. The last month of generally positive economic news has probably helped nudge mortgage rates up. Although rates are increasing they are increasing in small steps and not large strides. Since July 16th the 30 year rate has only moved from 5.14 to 5.29. While this is interesting it’s certainly not a huge move upward.
What is interesting is that the current (small) upward movement in mortgage rates might be the beginning of the rise that many in the financial industry have predicted. If the economy continues to rebound this could be the beginning of mortgage rates steadily moving up to 10% or higher. This is of course dependent on the continued movement of the US economy out of the current recession. While the government has made some statements about curbing inflation it seems more concerned with making sure the US exists the recession.
Of the 4 major indexes 3 moved up this week. The 30 year note rose from 5.22 to 5.29, the 15 year mortgage rose from 4.63 to 4.68 and the 5 year arm rose from 4.73 to 4.75. The 1 year arm fell from 4.78 to 4.72. What is also interesting is that when rates were at their lows a few months ago the 5 and 1 year arm was higher than the 30 year fixed rate, which is highly abnormal. Since the 30 year rate has gone up (and the arms have stayed down) the 30 year rate is now above both arms. And now the spread between the 30 year rate and the arms is back to normal. Below are the rates for the different mortgage products for the last few weeks and for January 15 (6 months ago).
Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72
Aug 06, 2009
30-yr 5.22 15-yr 4.63 5-yr ARM 4.73 1-yr ARM 4.78
Jul 30, 2009
30-yr 5.25 15-yr 4.69 5-yr ARM 4.75 1-yr ARM 4.80
Jul 23, 2009
30-yr 5.20 15-yr 4.68 5-yr ARM 4.74 1-yr ARM 4.77
Jul 16, 2009
30-yr 5.14 15-yr 4.63 5-yr ARM 4.83 1-yr ARM 4.76
Jan 15, 2009
30-yr 4.96 15-yr 4.65 5-yr ARM 5.25 1-yr ARM 4.89
In addition to rates it’s always interesting to look at actual mortgage payments. We took today’s rates and using a mortgage calculator translated them into a payment for a 200k mortgage. We also did the same thing with rates from July 30, 2009 (2 weeks ago) and January 15, 2009 (6 months ago).
Aug 13
30-yr $1109.36
15-yr $1548.44
5-yr ARM $1043.29
1-yr ARM $1039.68
Jul 30
30-yr $1104.4
15-yr $1549.47
5-yr ARM $1043.29
1-yr ARM $1049.33
Jan 15
30-yr $1068.75
15-yr $1545.36
5-yr ARM $1104.4
1-yr ARM $1060.23
As we can see that while rates have risen the effect on a mortgage payment (looking at the 30 year fixed rate) is relatively small.
So what is our advice to potential buyers looking for a mortgage? I would start the process of looking for a lender/mortgage early on. Financing is stricter than it has been in the past and its good to start the process early so any potential problems can be resolved (i.e. credit report problems or extra documentation that is needed). Additionally, with a possible spike in inflation looming there is more of a risk of rates rising than falling so it makes sense to lock in early.
Posted by admin | Under Mortgage
Tuesday Aug 18, 2009
Without correct financial education and planning, it is a challenge for the general public in today’s economy to avoid shouldering debt. If you’re one of them and are seriously trying to stand up on your monetary feet again, you may consider unsecured debt consolidation loans which have helped many debtors repaying their loans.
Be wary when reviewing loan providers since there are so many companies out there in the market which have survived by writing unsecured debt consolidation loans. There are plenty of issues you have to look into and guarantee before you sign up for a loan.
if you are someone who is always paying your debts in time, you stand a much better chance of getting an unsecured debt consolidation loans from any bank or credit union. This happens when you’re basically using credit cards offered by these banks or credit unions. If you have made a good relationship with them and they think that they will have no problem getting payment from you, your claim for a consolidation loan should be authorized in almost no time.
The above case is particularly true when it comes to credit unions. In comparison to banks, credit unions have more personal approach towards business and therefore, it is strongly a good idea to built good relations with credit unions if ever you are considering consolidation loans. Good relationships are important here due to the fact that unsecured debt consolidation loans aren’t supported by collateral. They’re principally primarily based on your earnings and your credit.
When you take on a loan to pay down all of your debts, make sure never again, to leap into the sea of debt. Before you sign up for your unsecured debt consolidation loans, consolidate all of your liabilities and ensure all are cleared. Once all obligations eliminated, cancel all the credit cards you have got and close all loan accounts. The reason behind doing these is to avoid any enticement of borrowing again.
One point you have to note is that you may not acquire as much loan you need and as such, there may be some debts which are still delinquent. Barter for a larger amount if you view that you have very good relationship with the financial institution and you stand a good chance of getting one. Be smart to consolidate all of your debts and things should go well.
If you still think that there would be some debts left hanging and your unsecured debt solutions loans are not enough to pay all that, pay those debts that charge higher interests first. Whatever debt remain should be those that incurred less interest. Thus, you prevent loosing more money on paying just for interest alone.
So if you are actually thinking about researching consolidation loans, make sure you prepared yourself first. Consolidate your debts before you approach any credit union or bank for help. The two main results you would want to see are to obtain your loan and to smoothly pay off all of your debts.
Posted by admin | Under Mortgage
Tuesday Aug 18, 2009
Buying a house is large step in any person’s life. Getting the best deal possible on a mortgage is also very important when shopping for your dream home. You want to get the lowest payment rates possible for the lowest interest rate. Having a large down payment for a house helps these rates become lower, but comparison shopping is important when deciding on a mortgage. From your bank to the internet, there are many options when looking for the right mortgage with the right interest percentage and monthly payment rate for you.
Shopping aggressively for mortgages is very important when you are interested in buying a house but first choose the mortgage rates and payment schedule you are comfortable with. Choose a fixed-rate mortgage or an adjustable mortgage rate. Fixed-rate mortgages stay the same throughout the years of paying it back as opposed to adjustable-rate mortgages which fluctuate up or down for short period depending on the structure of the mortgage. Next calculate what you can pay per month and choose your loan term of 15, 20, 25, or 30 years of repayment. The shorter the loan repayment period is the higher the rate that must be paid each month to the loan company. The 15 year mortgage will save you thousands of dollars in interest, but the payments are so much higher than any other yearly mortgage rate. Most people choose the 30 year mortgage for the lowest monthly payment.
Be sure you have good credit before applying for loans. Use free websites or pay for your exact credit score. The closer your score is to 800, the better your chances of getting a loan will be. Do not have outstanding payments on credit cards or other large purchases such as cars. If you end up having a low credit score, take a year or so to let you credit return to an acceptable rate then try applying for loans. If you have massive debt, contact a free credit consolidation office for help with your finances. They can work down your credit card debts and more to one low monthly payment.
If you do have a good credit score, it is time to shop for mortgages. Start by applying at the bank in which you have accounts with. The bank you use may offer special rates for customers that have savings accounts. You can also contact a mortgage broker. They have access to lenders that may offer low interest and payment rates. Shopping online is also a great way to find a mortgage. Websites offer calculators and free hotlines in which you can contact for mortgage questions. When shopping for a lender, look at the company’s terms on closing costs, because this can be a big out-of-pocket expense for home buyers. Overall, make sure your going to get the best payment rate per month and the lowest percentage possible for the 15 to 30 year mortgage you choose.
Whether you’re looking for mortgage rates or great GIC rates, with Meridian Credit Union you’ll have a customized financial plan that makes sense for you.
Posted by admin | Under Mortgage
Tuesday Aug 18, 2009
Trying for a no fax payday loan is a very viable option to consider when you need cash in a hurry. This useful service can actually help out during an sudden circumstance that cannot wait until your next pay check.
So what’s a no fax payday Loan? Fundamentally it’s a money advance loan. The purpose is to help when an emergency strikes or when you find you want to stretch your paycheck merely a bit more. The’No Fax’ means no documentation is required to get the loan.
When online money advance companies commenced turning up about 5 years ago, you had to fax in a myriad of documents in order to get licensed for a loan. Therefore, folks preferred going to the local payday advance loans store due to less hassles and quicker turn around.
But as with everything online, all you have to do is blink your eyes and things change. Such is the case with online money Advance banks ; with improved techniques of verifying accounts and job the scary faxing was eliminated. Thus the payday loan was born, making online processing the best and best way to get a cash advance.
What are the benefits of a payday loan?
1 ) Convenient – An easy online application process.
2 ) Fast – In most case the approval is in less than 30 mins and the money is deposited into your account the following business day.
3 ) No Faxing – You do not send any documents to anyone.
4 ) assurance – Gives you a sense of security knowing you can get a cash advance loan when needed.
when looking for a cash advance bank, be sure to read all necessities and charges. You want to go over all the’fine print’ details because each company charges different rates and charges. Some will want direct deposit of the loan and direct payment withdrawal access to your bank account. If you’re not comfortable with this, you will need to pick a No Fax pay-day Lender which does not ask for automatic debiting.
Also make sure you know precisely how much you will be charged for the loan. Just like a car loan or other financing, you want to get the very best rate you can. Cash advance firms all charge different charges and percentages for loaning cash, so look around at many online marketers to get an idea of the adaptations in rates.
The following is a check list to use when searching for a No Fax Payday Loan bank :
1 ) Age of the Company ;
2 ) Rates and charges ( including late charges ) ;
3 ) Any Affiliations with web business Associations ;
4 ) How they think repayment ;
5 ) Processing Time ;
6 ) Do they run a credit check every time ;
7 ) Research at least 5 or more money advance loan companies.
you need to be aware a No Fax pay-day Loan is not recommended as a resolution to bill paying issues. If you are behind in payments, this might not be the solution for you. Proper management of your financials and possible debt consolidation could be your best answer.
Posted by admin | Under FHA Mortgage
Tuesday Aug 18, 2009
Just a short update to make sure the latest information is available on the site – even though what I’m about to tell you isn’t really “information” yet in my view!
According to a report in Realtor Magazine, HUD spokesman Lemar Wooley has stated that the proposal is still on track. As I suspected from the fact that the original Mortgagee Letter 09-15 was fairly fuzzy on the details, it appears they just got a little ahead of themselves.
According to Realtor Magazine:
The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site,” Lemar Wooley, a HUD spokesperson, told REALTOR magazine Wednesday afternoon.
There are many problems to be worked out – such as how the money can be used as a down payment, how they intend to deal with the fact that some people may have unsurfaced tax problems that interfere with paying the money back, exactly who will loan the money and how they will do it and so forth.
In the meantime, hold your breath. Maybe they’ll get it right the first time, unlike FHASecure and Hope for Homeowners.
Posted by admin | Under FHA Mortgage
Tuesday Aug 18, 2009
I was fairly excited to see HUD’s press release on Thursday that they had taken action against more than 120 lenders who had violated HUD guidelines. 102 FHA approved lenders were cut off from participation in the FHA program for various reasons. This excitement was only slightly tempered by my knowledge that some of the “cut off” lenders were already out of business anyway for other reasons.
The most exciting part of the news was that provisions of the “Helping Families Save Their Homes Act” give HUD/FHA more money, manpower and enforcement ability to help put a stop to fraud and general lack of compliance with the regulations.
…grants FHA more authority to keep bad actors out of the FHA programs and provided additional enforcement tools to police those lenders who employ false or misleading marketing tactics (see attached). Meanwhile, the Administration’s FY 2010 budget proposal seeks additional investments in FHA to curb fraud and abuse including enhanced investments in technology, staffing and training to enable FHA to cope with the rising volume of mortgage business, detect fraud, and monitor the practices of lenders and appraisers.
“At this time of uncertainty in the mortgage market, FHA needs to be especially vigilant in making sure that its approved lenders meet the highest standards of conduct,” said HUD Secretary Shaun Donovan. “We expect, and more importantly American homebuyers deserve, that when they deal with an FHA-approved lender, they’re dealing with a lender they can trust. “The provisions in the Helping Families Save Their Homes Act will expand our enforcement and help keep bad actors out of our program.”
I have long held that fraud and lack of compliance with the FHA rules were a much, much, much greater contributor to FHA’s default problems than seller paid down payment assistance. Seller paid down payment assistance just happened to get matched with fraud very often because the program made it easier for the criminals to get around having to produce a down payment for their straw buyers. The seller paid down payment assistance was tracked and documented while much of the fraud never was. I personally saw too many of those buyers using seller paid down payment assistance who would move heaven and earth to keep making their house payment on time, even if the value of the home dropped. They simply wanted to be homeowners and were in it for the long haul. If they were late on their payments it would be because they lost their job or had a medical problem which kept them out of work. Not because they had a measly 3% less equity than someone with a conventional loan.
FHA would be in much better shape and would have helped many more people over the past couple of years had some of the money slated for stupid programs like FHASecure and Hope for Homeowners had been put into compliance enforcement.
The honest mortgage originators often didn’t have a chance competing against lenders who would get borrowers approved in spite of the rules. Not because that other loan officer did a better job packaging the loan, but because they weren’t operating by the same guidelines! So I’m glad to see the chance that the field may get leveled.
It appears that this massive action on HUD’s part was an attempt to get out ahead of a news report in the Washington Post which says that a review just completed by the Office of the Inspector General that indicates that FHA’s “Mortgagee Review Board” has been ineffective in policing the large and quickly growing number of FHA approved lenders. All I can say is that I hope they didn’t spend too much money putting together that report. Ginger, my Chocolate Labrador Retriever, could have figured it out without taxing her intellect very much.
At any rate, let’s hope for the best. A lot is going on in the world of FHA lending right now. The jury is still out on how things will work out.
Posted by admin | Under FHA Mortgage
Tuesday Aug 18, 2009
At least they don’t do so in any way which stands much chance of meaningful success in the the real world. Here is the direct quote from HUD Secretary Sean Donovan’s May 29, 2009 press release: “Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.” (emphasis added)
HUD has re-published Mortgagee Letter 2009-15 entitled “Using First-Time Homebuyer Tax Credits”. This Mortgagee Letter does provide the regulatory framework for monetizing the $8000 first time homebuyer tax credit now in advance. There are two very important points that need to be made about this “monetization”.
First, although the HUD announcement sets out a framework for the policy, HUD does not provide the money. Therefore, we will have to wait and see how the policy becomes a part of the real world and how long we will have to wait to see any delivery of money to the closing table.
I know many people had hoped to see some form of check issued by the Treasury to the buyer, but an Act of Congress would have been required to make that possible. HUD just does not have that option available under current law.
The reality is that the possibility of non-profits or lenders coming up with the money to make these loans when the tax credit proceeds cannot be assigned to a third party is very slim. Neither of these parties has the wherewithal to put out this money and then wait for the home to sell or be refinanced before they are paid. Although the Mortgagee Letter attempts to address these issues, there are no guarantees that some other issue in the borrowers life won’t pop up and prevent the tax credit from being paid to them. With seller paid down payment assistance, the borrower never put their hands on the money. With this plan, the non-profits or lenders who would provide a second lien would have to hope they got repaid when or if the tax credit money arrives.
And don’t hold your breath waiting on state agencies to take up the slack. The states don’t have the money.
Second, the Mortgagee Letter specifically points out that according to “12 U.S.C. 1709(b)(9), the homebuyer’s downpayment required for eligibility for FHA insurance may not consist of any funds (including funds derived from a sale of the homebuyer tax credit) provided by the mortgagee, the seller, or any other person or entity that financially benefits from the transaction (or by any third party or entity that is reimbursed, directly or indirectly, by the financially benefiting person or entity).”
In other words, the borrower must still contribute 3.5% of their “own money” into the transaction. Of course, as was always the case, this can be a gift from a relative or similar close relationship.
The proceeds from this monetization can be used for additional down payment or to buy down the interest rate or to pay closing costs. The best use of the money will be dictated by the transaction. For example, many borrowers who are “on the borderline” of approval through the automated underwriting system may be able to change the decision to an approval with a little additional down payment. Other people (i.e. those who definitely plan to stay in the house for a very long time) would be better off paying down the interest rate with the “free money” from the tax credit. Borrowers who know they are going to move in a few years, and who can get the seller to pay all the closing costs may be better off waiting to receive their tax refund the normal way by waiting until they file their next tax return. The tax credit money can simply be put into the bank for a rainy day.
At any rate, this is all speculation until we actually see someone come forward with the actual money and not just a new bureaucratic pronouncement.
Following is the complete text of the Mortgagee Letter:
May 29, 2009
MORTGAGEE LETTER 2009-15
TO: ALL APPROVED MORTGAGEES
SUBJECT: Using First-Time Homebuyer Tax Credits
The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an $8000 tax credit to qualified first-time homebuyers. FHA supports this important initiative to promote homeownership. This mortgagee letter provides:
Basic information on the first-time homebuyer credit obtained from the Internal Revenue Service (IRS) website. Complete information on how the first time homebuyer tax credit works, including the eligibility requirements for the tax credit, the amount of the tax credit that a first-time homebuyer may be eligible to receive, and how a homebuyer may claim the tax credit is available on the IRS website at http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet7.
Guidance on how FHA-approved mortgagees and FHA-approved nonprofit organizations as well as Federal, state, and local government agencies or instrumentalities may assist homebuyers that are eligible for the tax credit.
I.About the First-Time Homebuyer Tax Credit
Please check the IRS website to ensure you have up-to-date information. A brief overview of the tax credit from the IRS website and a copy of IRS Form 5405 (including instructions) are attached for reference.
Pursuant to 31 U.S.C. 3727 and 26 U.S.C. 6402, a refund of the first-time homebuyer credit will be made by the IRS only to the taxpayer, not to a third party. In other words, any refund issued in response to a claim for this credit cannot be assigned by a taxpayer to a third party.
Consistent with existing FHA policy, FHA will permit entities covered by Section 528 of the National Housing Act to use the current authority to offer tax credit advances with second liens in a manner consistent with the requirements in 12 U.S.C. 1709(b)(9). Eligible government agencies and instrumentalities of government are described in handbook HUD-4155.1 5.C3 and 5.C4.
Conditions:
The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower.
The second lien may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses.
Secondary financing may be “soft” (silent) or require a monthly repayment.
If payments are required, they must be included within the qualifying ratios and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
Payments must be deferred for at least 36 months to not be included in the qualifying ratios.
If the tax credit advance loan has a short term for repayment, it must also provide that if the borrower fails to repay by the designated deadline, principal and interest payments begin automatically or the loan converts to a “soft” second.
The secondary financing may not require a balloon payment before ten years.
Purchase of Tax Credit
FHA-approved mortgagees and FHA-approved nonprofit organizations as well as Federal, state, and local governmental agencies and instrumentalities thereof may purchase the tax credit anticipated by the homebuyer.
Conditions:
The proceeds of the sale of the tax credit may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405;
The borrower must submit a signed certification that the tax credit is not subject to offset due to other indebtedness.
A copy of the borrower’s tax refund and/or the IRS 5405 must be collected and retained in the FHA case binder.
Any costs attendant to the purchase of the tax credit are to be nominal and discounting the anticipated credit to cover the costs and expenses of the transaction must be reasonable and disclosed to the homebuyer. In FHA’s view, fees and costs that total more than 2.5% of the anticipated credit are considered excessive. (Example: $6000 to be refunded, with all fees and costs discounted, borrower should receive not less than $5850.00 for sale of tax credit.)
Pursuant to 12 U.S.C. 1709(b)(9), the homebuyer’s downpayment required for eligibility for FHA insurance may not consist of any funds (including funds derived from a sale of the homebuyer tax credit) provided by the mortgagee, the seller, or any other person or entity that financially benefits from the transaction (or by any third party or entity that is reimbursed, directly or indirectly, by the financially benefiting person or entity). Accordingly, the proceeds of the sale of the tax credit to FHA approved mortgagees, the seller, or any other person or entity that financially benefits from the transaction (or any third party or entity that is reimbursed, directly or indirectly, by the financing benefiting person or entity), may not be used to meet the 3.5% minimum downpayment, but may be used as additional downpayment, buying down of interest rate, or other closing costs.
Due Diligence
FHA expects that entities purchasing tax credit assets will employ appropriate due diligence measures including, but not limited to:
Require the homebuyer to draft and provide the IRS form 5405 “First-Time Homebuyer Credit.”
Contact the borrower’s employer and review pay stubs to confirm there are no outstanding garnishments.
Review the homebuyer’s credit report to ensure there are no unpaid student loans, or other obligations that could be offset against the credit.
Validate that all of the eligibility requirements for the tax credit are fulfilled
Review previous tax returns and IRS tax assessment letters, if any, to determine that the borrower does not have unsettled obligations to the IRS
III. Monitoring
In order to track the tax credit monetization activities, FHA will require FHA-approved mortgagees to input into FHA Connection the following data:
Name and EIN of the party who purchased the tax credit,
The amount of the anticipated credit, and
The amount the homebuyer paid for the monetization services.
The lender must also collect and maintain in the FHA case file the documentation that validates all of the tax credit monetization data submitted via FHA Connection.
FHA will monitor the purchase of tax credit transactions closely. Charging of excessive fees or costs in the purchase of the tax credit or increasing other fees or charges in the transaction without FHA approval may result in referral to the Mortgagee Review Board, and particularly with respect to entities that are not FHA-approved mortgagees, referral to the Federal Trade Commission, or referral to the appropriate State Attorney General office, as may be applicable.
If you have any questions regarding this mortgagee letter, please call FHA’s Resource Center at 1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
Posted by admin | Under FHA Mortgage
Tuesday Aug 18, 2009
Everyone is full of questions about the recent HUD Mortgagee Letters on the monetization of the first time homebuyer tax credit and the new manufactured home guidelines.
Here is your chance to get the information straight from the horse’s mouth.
On Thursday June 4, 2009 at 3PM Eastern time HUD is having a conference call for the mortgage industry to provide a brief overview of recently published FHA policy guidance, including the recent tax credit & manufactured housing Mortgagee Letters.
The call-in number is: (866) 207-0413 & the conference ID # is: 13015879.
The third largest FHA lender in the country Taylor, Bean and Whitaker Mortgage has been suspended from FHA lending effective immediately. In addition, the Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW’s ability to continue to service Ginnie Mae securities.
“Today, we suspend one company but there is a very clear message that should be heard throughout the FHA lending world – operate within our standards or we won’t do business with you,” said HUD Secretary Shaun Donovan.
FHA Commissioner David Stevens said, “TBW failed to provide FHA with financial records that help us to protect the integrity of our insurance fund and our ability to continue a 75-year track record of promoting, preserving and protecting the American Dream. We were also troubled that the Company not only failed to disclose it was a target of a multi-state examination and a separate action by the Commonwealth of Kentucky, but then falsely certified that it had not been sanctioned by any state. FHA won’t tolerate irresponsible lending practices.”
TBW may appeal its immediate suspension by submitting a written request for a hearing before an Administrative Law Judge within 30 days. Such a request will not delay the action FHA is announcing today.
In conjunction with TBW’s suspension, HUD sent notices of proposed debarment to TBW’s Chief Executive Officer, Paul R. Allen, and TBW’s President, Ray Bowman. Mr. Allen’s proposed debarment alleges that he submitted false and/or misleading information to Ginnie Mae regarding TBW’s delay in submitting its audited financial reports for fiscal year ending on March 31, 2009. Mr. Bowman’s proposed debarment alleges that he submitted two false certifications to HUD on TBW’s Yearly Verification Report. Mr. Allen and Mr. Bowman have thirty days to contest the proposed debarments.
This action will massively impact small brokers and community banks across the country who rely on TBW to underwrite and close their FHA loans. I have already heard from many loan officers with loans in process, and home purchases on the line. They will now have to find new homes for those loans. We will have to wait and see how this situation impacts the housing recovery.
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