Hello Neighbors!
Good fun.
Neighborly Realty & Neighborly Financial will be supporting the "Tour de Cure" 100 mile bicycle ride and fund raiser tomorrow, May 1st.
Here is the link:
http://main.diabetes.org/site/TR/TourdeCure/SacramentoArea?pg=entry&fr_id=6898
Neighborly's own Jeff Engle will be driving a support vehicle during the middle of the event!
Visit the web site, come out to the course, and come support the American Diabetes Association!
- Jim
www.NeighborlyRealty.com
www.NeighborlyFinancial.com
www.NeighborlyGroup.com
www.PartnerWithNeighborly.com (check back in Mid May)
Apr 30, 2010
Neighborly Supports the "Tour de Cure" 100 Mile Bike Fund Raiser
Apr 29, 2010
Latest Data is Out - Sales are UP.
Hello Neighbors,
Hopefully this graph of existing home sales will come across well. If not, call me for the data.
What I find amazing is the ratio of homes that have gone PENDING (in escrow) vs. the amount that are on the market. It's gone nuts in the last month or two.
PENDINGs were at a record 2,921 in March - that is several hundred higher than any month since 2008.
While homes on the market have increased at a much slower pace (only 3,963 for the same March measure).
Meaning? There are segments of the market that are absolutely now a "Seller's Market". ...which is how we operated between 2002 - 2005.
Here is the data:
Many thanks,
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Apr 23, 2010
Approved Short Sale - Buyer Walked !!
Hello Neighbors,
We don't usually use this space for updates about just one listing, but this is a special opportunity.
After months of negotiation, we have short sale approval at $146,400 for an Elk Grove property. ...and the original buyers have walked away!
If needed, a new buyer could likely close in 30 days.
We call this the "sweet spot" of short sales - the lender has approved the terms and conditions (which takes MONTHS) but the original offers have moved on. Now the property is ready for another potential buyer - and that buyer won't have to wait months!
Some basic details:
$35,082 Spent in Installed Builder Options !!!!
• 2 Bedrooms, 2 Separate Bathrooms, and a 1 Car Garage Included !!
• Great Room Concept with Kitchen + Living Room + Nook
• 1,239 Square Feet on this Quiet Second Floor
• Quality DR Horton Construction – Completed in 2007 – with DR Horton’s Ultra-Efficient “Environments for Living” Options, Meaning Very Low Utility Bills
• Outdoor Balcony / Patio for your Barbeque, Table + Chairs
• Upstairs Laundry
• Maple Cabinets, Built In Entertainment Center, and Fireplace!
• Granite Counter Tops in Kitchen
• Pre-Wired for Security Systems
• Upgraded 18” x 18” Tile Flooring Throughout
• Maytag Stainless Steel Appliances
• Upgraded Window Treatments, Including 3.5” Plantation Shutters
• Upgraded Carpet and Carpet Pad
• Maple Stair Rail, and Elegant Wood Framed Stairs
• Additional Storage Fixtures in Garage
• Upgraded Sinks and Faucets, Shower Doors Too!
MLS #10006472
We put a few pictures in Craigslist at this URL: http://sacramento.craigslist.org/reb/1706281642.html
Please let us know if we can help!
Many thanks,
- Jim
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyGroup.com
www.PartnerWithNeighborly.com (Good video content, web site needs work)
Apr 21, 2010
Neighborly Joins Tahoe Sierra Board
Hello Neighbors,
Neighborly joined our 4th Realtor board today, the Tahoe-Sierra board.
If interested, their web site is: http://www.tahoemls.com/index.cfm
Neighborly is now officially part of:
* Placer County Association of Realtors
* Sacramento Association of Realtors
* Nevada County Association of Realtors
* Tahoe Sierra Association of Realtors.
Why?
We have another client who needs better information in the Tahoe area than the "standard" Placer County and Nevada County MLS systems provide. The Tahoe area is on a smaller MLS system than the rest of the nearby counties. They are supposed to list properties in the major MLS systems too, but we are done fighting that battle.
So?
Should you need help with vacation property in Tahoe, or even your primary residence in Tahoe, we now have even better information.
Many thanks,
- Jim
www.NeighborlyRealty.com
www.NeighborlyGroup.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com (Good video content, but web site in development)
Apr 19, 2010
Win a 5 Bedroom Home in Rocklin !!
Hello Neighbors,
What a fantastic opportunity and for a wonderful cause.
For a $100 entry ticket, your family could win a 5 Bedroom home in Rocklin. Yep. 3,096 square feet. Free. Built by Standard Pacific Homes. The address is already set - 2122 Ranch View Drive in Rocklin's Whitney Ranch.
This is made possible through a St. Jude charity program.
Here is the link: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=2360a4095bd67210VgnVCM1000001e0215acRCRD&vgnextchannel=61d5dc15925b0210VgnVCM1000001e0215acRCRD
The drawing is on June 27th.
Don't act too quickly though - Jenny and I haven't bought our tickets yet!
Good luck.
Please do invite Neighborly to the housewarming party!
More about St. Jude and their children's programs: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=f2bfab46cb118010VgnVCM1000000e2015acRCRD
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com (GOOD video content, but website really hurting)
Apr 16, 2010
US Q1 Foreclosure Rates Grew at 35% over Q1 Last Year
Many thanks to Paul Smith for passing this along.
Hello Neighbors,
From Yahoo yesterday.
Disapointing data on the foreclosure rates. Lots of detail below. One point of importance at the very bottom:
>>> California accounted for the biggest slice overall of homes facing foreclosure - roughly 23 percent of the nation's total. One in every 62 properties received a foreclosure filing in the first quarter. <<<
Neighborly has signed up with a Chicago based company to help sell foreclosed homes. We don't have insight yet on timeline on volumes, but watch this space for future updates.
By ALEX VEIGA, AP Real Estate Writer Alex Veiga, Ap Real Estate Writer - Thu Apr 15, 7:32 am ET
LOS ANGELES - A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.
Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.
These factors have helped slow the pace of foreclosures, but now that trend appears to be reversing.
"We're finally seeing the banks start to process the inventory that has been in foreclosure, but delayed in processing," Sharga said. "We expect the pace to accelerate as the year goes on."
In all, more than 900,000 households, or one in every 138 homes, received a foreclosure-related notice, RealtyTrac said. The firm based in Irvine, Calif., tracks notices for defaults, scheduled home auctions and home repossessions.
Homeowners continue to fall behind on payments because they've lost their job or seen their mortgage payment rise due to an interest-rate reset. Many are unable to refinance because they now owe more on their loan than their home is worth.
The Obama administration's $75 billion foreclosure prevention program has only been able to help a small fraction of troubled homeowners.
About 231,000 homeowners have completed loan modifications as part of the Obama administration's flagship foreclosure prevention program through March. That's about 21 percent of the 1.2 million borrowers who began the program over the past year.
But another 158,000 homeowners who signed up have dropped out - either because they didn't make payments or failed to return the necessary documents. That's up from about 90,000 just a month earlier.
Last month, the administration expanded the program, launching a plan to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break. But the details of those programs are expected to take months to work out.
The states with the highest foreclosure rates in the first quarter were Nevada, Arizona, Florida and California, with Nevada leading the pack, RealtyTrac said.
Rising home prices and speculation fueled a wave of home construction there during the housing boom. But now the state, particularly around the Las Vegas metropolitan area, is saddled with a glut of unsold homes.
Still, the number of homes in Nevada that received a foreclosure filing dropped 16 percent from the first quarter last year.
All told, one in every 33 homes in Nevada was facing foreclosure, more than four times the national average, RealtyTrac said.
Foreclosure filings rose on an annual and quarterly basis in Arizona, however.
One in every 49 homes there received a foreclosure-related notice during the quarter.
Florida, meanwhile, posted the third-highest foreclosure rate with one out of every 57 properties receiving a foreclosure filing.
California accounted for the biggest slice overall of homes facing foreclosure - roughly 23 percent of the nation's total. One in every 62 properties received a foreclosure filing in the first quarter.
Thanks again Yahoo.
- Jim
www.NeighborlyGroup.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyRealty.com
www.PartnerWithNeighborly.com (GOOD video content, yet the site is still a mess)
Apr 14, 2010
Rocklin Hosts "KidFest" on May 16th
Hello Neighbors!
Join us this May 16th from Noon to 4:00 at Rocklin's "KidFest"!
http://kidsfestnorcal.com/
For young families, this should be a kick. Not only are there tons of kid and family friendly vendors, but there will be activities for the kids... You can even register for a mini-triathlon.
See you there!
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com (early in development)
Apr 7, 2010
Neighborly Becomes Realtor.com Preferred Supplier
Hello Neighbors,
Exciting times indeed.
Neighborly has partnered with Realtor.com (www.Realtor.com) to help California Buyers searching in Granite Bay and Rocklin!
Realtor.com is the #1 search engine used for Real Estate in the United States. Not a bad partner to have!
Click on these links below to try the Realtor.com "Search Assist" program now:
Granite Bay:
http://www.realtor.com/#searchassist&loc=95746&advid=844067
Rocklin:
http://www.realtor.com/#searchassist&loc=95677&advid=844067
http://www.realtor.com/#searchassist&loc=95765&advid=844067
Please let us know how we can help you and your families.
Enjoy!
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly (EARLY in Development)
Apr 2, 2010
Interest Rates are Moving Up!
Hello Neighbors,
March 31st was the last day of the Federal program to buy mortgage backed securities. That is the program that has been removing the bad loan debt from the market at an enormous rate. It’s been going for well over a year now, and we know it’s been keeping mortgage interest rates artificially low.
Yesterday was the first day without this program in effect, and guess what?
We are already seeing rates jump. Yesterday they went up a quarter of a point.
Overnight? Some rates aren’t even available now. A few days ago, a client could buy down a rate to the low 4 percents. Now? We can’t even get access to those low 4 percent rates. Buying down will get you into the mid or high 4 percents.
Hmm.
While movement on any day is expected, the move by the Fed in general is signaling that interest rates are going up.
While we have all expected this, to what degree they will change (go up) is anyone’s guess.
Buyers? Be alert.
Re-financing? Get busy.
Many thanks,
- Jim
www.NeighborlyFinancialMortgage.com
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.PartnerWithNeighborly.com
Apr 1, 2010
3rd Neighborly Business Under Way!
Hello Neighbors,
Exciting times here at Neighborly!
The real estate company has been up and running since 2002.
The mortgage loan company has been up and running since 2007.
It's time to start something new!
In a few days we launch the new "Neighborly Gas & Sip"! Yep, a convenience store that is truly Neighborly. High quality gasoline, high quality slurpees. Tasty salted snack treats. We'll have a lotto kiosk sitting next to a Neighborly Financial loan officer. Win the big draw, and immediately finance your castle.
The first location will open in Roseville in The Fountains.
Branches two and three will be in Des Moines, Iowa and Puerto Rico.
Enjoy.
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Mar 30, 2010
Suspension of National Flood Insurance Program
Hello Neighbors,
This just in from our friend Chris Altobell with Farmers Insurance. It looks like buyers in Natomas may have a few extra hiccups:
Hi Jim,
The National Flood Insurance Program has been suspended; meaning new flood policies cannot be issued. This will likely have an impact on your clients looking to close escrow on a house in the Natomas area (or any other area) where flood insurance is required by the lender.
The flood program will not be reconsidered for extension until the Senate resumes its session on April 12th.
Here’s why it is being suspended:
1) The proposal for extending the flood program is part of a larger package of programs that are under consideration for extension. There is opposition to extending some of the other programs, not the flood program.
2) There are many in Congress who want to make reforms before granting a long-term extension to the flood program.
I’ll keep you posted on any further changes.
Cheers,
Chris
Have questions?
Chris can be reached at the following:
Altobell Insurance Agency
1700 Eureka Rd., Ste 120
Roseville, CA 95661
(916) 797-0990 (office)
(916) 214-2126 (cell)
www.farmersagent.com/caltobell
Thank you Chris for the updates!
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Mar 25, 2010
California Extends Buyer Tax Credits !!!!!!!!
Hello Neighbors,
This JUST in... literally, not 30 seconds ago.
It looks like California is extending Buyer tax credits past the existing April / June deadline!
I will dig into the mechanics of the legislation more in the coming days, but here is the note we just received from the California Association of Realtors:
Dear C.A.R. Member:
I’m gratified to report that late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill’s passage before it landed on the governor’s desk.
AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.
The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.
AB 183 will significantly contribute to the effort to stimulate jobs-creation within California's housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities.
Your Association’s efforts at the state and federal level to help protect private property rights and your right to conduct business are ongoing. This promises to be another busy year in the state legislature and in Washington, D.C.
If you’re not already involved in the political process, I encourage you to do so. You can go to http://www.car.org/governmentaffairs/getinvolved/ for a quick guide to involvement opportunities at the local, state, and national levels.
Sincerely,
Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®
Woo Whoo!
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Mar 24, 2010
Neighborly Welcomes Noelle Pitts to the Team !!
Hello Neighbors!
It's been a GREAT week here at Neighborly!
The real estate team added a fine young lady to the group - Noelle Pitts.
Noelle comes to us with experience, and from one of the larger "corporate" brokerages. She got tired of the high costs of doing business with the large shops, and wanted to focus more on the customer experience - 1000% the Neighborly Way!
Welcome to the team Noelle, and thank you for spending your time with Neighborly!
If any of you need help, Noelle is full blast as of a few days ago. You can reach her at 916.600.7665. You can also email Noelle directly at Noelle@NeighborlyRealty.com
Woo Whoo!
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Appraisal Problems (Again)
Hello Neighbors,
More insanity with appraisals.
As we are seeing with just about every appraisal these days, the values are out of sync with the market. It doesn't matter if the appraisal is for one of our real estate clients or for one of our partner company's loan / re-fi clients.
On May 1st of last year, the government changed the regulations governing the appraisal industry. The regulation is known as “HVCC” – Home Valuation Code of Conduct. We are now getting appraisers from out of the area doing appraisals in areas
Here is a bit of background on the appraisal changes over the last year and a half:
My own experiences:
http://neighborlyrealty.blogspot.com/2009/08/are-appraisals-useless.html
http://neighborlyrealty.blogspot.com/2009/08/where-is-bottom-how-about-here.html
http://neighborlyrealty.blogspot.com/2009/01/industry-cleanup-part-2.html
Thoughts from the industry in general:
http://www.tampabay.com/news/business/realestate/article1001295.ece
http://www.hvccpetition.com/
http://www.realphoenixliving.com/2009/06/26/a-few-mortgage-thoughts-for-the-week/
From the National Association of Mortgage Brokers:
http://www.namb.org/Forms.asp?MODE=NEW&Forms_FormTypeID=-29
Our latest appraisal came in at roughly $11,000 below our offer price.
The appraiser isn't a high performer. He has used one comp that is bank owned property (that isn’t truly “like kind”).
What does it all mean?
If you are putting a large sum of cash into the process, then the appraisal value isn't as much of a problem. If you are using a high loan to value ratio, then you may be in trouble - having to renegotiate the contract, get additional appraisals, or a few other steps.
Remember - the valuation is more of a “comfort” level for the Buyer / Borrower. The appraisal isn’t used by any other entity – it’s not used by the County to determine your taxes, it’s not used by the home owners insurance company to determine value, it’s not used by any other group in this process.
I think my clients are getting this particular home at a good price (or I wouldn’t let us proceed).
Recourse?
Nope. We still don't have effective channels to provide feedback on appraisals or appraisers.
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.PartnerWithNeighborly.com
Mar 3, 2010
Infamous Sacramento Landmark Up for Sale
Hello Neighbors,
This is a bit morbid, but an important part of downtown Sacramento real estate history.
1426 F St Sacramento, CA 95814
MLS# 10015576
List price is currently $309,800. It is bank owned (Bank of America), meaning the last buyers (who paid $560,000) defaulted.
This duplex has a very sad history. Back in 1988, this duplex was owned by a lady named Dorothea Puente.
This property comes with a ton of disclosures, including photocopies of the newspaper articles.
- Jim
www.NeighborlyGroup.com
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
Feb 2, 2010
Toll Free 1-800 Recorded Mortgage Loan Information
Hello Neighbors!
This one is fun...
John and his team are at it again. Using technology to get information out fast and free.
He has recorded 5 new messages (each just a minute or two long) and put them out on our toll free service line.
Give them a try and let us know what you think.
The Neighborly toll free number is 1-800-960-0860.
Extension numbers and topics are as follows:
• 8000 – How Do I Take Advantage of the Buyer Tax Credits Before April?
• 8100 – How Do I Pick the Right Lender?
• 8200 – How Do I Get Pre-Approved for a Loan?
• 8300 – How Do I Get the Best Rates on a Loan?
• 8400 – Is My Current Loan Worth Re-Financing?
Many thanks for support Neighborly.
- Jim
www.NeighborlyRealty.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyGroup.com
Jan 20, 2010
FHA Announces Changes to Lending Policies: More Mortgage Insurance
Hello Neighbors,
FHA just announced some big changes.
Why is this important?
FHA drives the standards for loan qualification that many of the large lenders adhere too. FHA backed loans are also a major percentage of all loans underwritten in this current market.
FHA loans are popular when times are tough. When lending is easy? FHA fades into the background. No more. The lending practices of 2000 – 2005 have pushed FHA back into control.
What does this mean?
• Loans will be a bit more expensive for the borrower, for those who finance more than 80% of the purchase price.
• Sellers can expect a reduction in requested concessions – no longer will the Buyers ask for 6%. It’s now limited to 3%.
• A few other technical issues that will make loans a bit harder to qualify for.
Here is the detail from the FHA:
FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
a) The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
b) If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
c) This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
d) The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
a) New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
b) This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
c) This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
a) The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
b) This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
a) Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
a1) This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
b) Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
b1) Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
b2) This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
c) Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
c1) Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
d) HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
d1) Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
d2) Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
Many thanks,
- Jim
www.NeighborlyFinancial.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyRealty.com
www.NeighborlyGroup.com
Jan 19, 2010
MOVIE: What is My "FICO Score" (Your Credit Score)
Hello Neighbors,
Again, more educational material from the team at Neighborly Financial.
You may have heard the term “FICO score” before… You’ve certainly heard the term “credit score”. What are they? Are they different? How are they calculated, and how can I improve mine?
Watch this video and find out how your credit score matters, and how the actions you take can impact that score:
http://www.youtube.com/watch?v=TfUa_vQuTXQ
Need more information? Call John Graham at 916.799.4336 or email John at JohnG@NeighborlyFinancial.com
Many thanks,
- Jim
www.NeighborlyFinancial.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyRealty.com
www.NeighborlyGroup.com
MOVIE: What is my Loan’s “APR” and Why is it Higher Than Interest?
Hello Neighbors,
Again, more educational material from the team at Neighborly Financial.
This time - what is "APR"?
Like interest, you will see this number quoted in your mortgage (purchase or re-fi) Good Faith Estimates. Unlike interest, it isn't totally clear how this number was created.
Watch this video and find out why APR is often higher than the interest rate you've been shopping for:
http://www.youtube.com/watch?v=5fiHr_Hw9h0
Many thanks,
- Jim
MOVIE TIME: Pre-Qualification vs. Pre-Approval
Hello Neighbors,
Our team at Neighborly Financial is at it again – creating more consumer education videos to help you make informed mortgage decisions.
Again, be gentle.
The content is fantastic, but we aren’t movie stars. Brad Pitt has nothing to fear.
Should you need more insight, please contact John Graham at 917.799.4336 or email JohnG@NeighborlyFinancial.com
This first movie: What is the difference between a Pre-Qualification letter and a Pre-Approval letter.
What are the process differences between the two, and which should you ask for?
Why does your Realtor need this data up front before you start looking for houses?
Please take a look and let us know what you think:
http://www.youtube.com/watch?v=4jQQBhtqjiA
Many thanks,
- Jim
www.NeighborlyFinancial.com
www.NeighborlyFinancialMortgage.com
www.NeighborlyRealty.com
www.NeighborlyGroup.com
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