Blogging About Loans: Ruth Vogt, WR Starkey Mortgage (LMB#100023827)

We've been hoping and watching HR 3044, which was a proposal to put an 18 month moratorium on HVCC but suddenly there is a new and better one out there: HR 3126. This bill is currently being reviewed by the Housing Finance Committee and is expected to go before the House for a vote within a couple of weeks!! And before Senate for a vote maybe by year end???

There are amendments to this bill that will:

1) nullify HVCC because it has "dramatically damaged the home mortgage process across the nation

2) request a more gradual implementation period of the new TILA requirements allowing HUD and the Federal Reserve to coordinate their regulatory efforts between RESPA and TILA (it really IS ridiculous right now, isn't it???)

3) and prohibit the government from capping the amount of compensation paid to mortgage lenders regardless if they are state chartered or federally chartered, big or small.

There is hope that someone out there is still sane. I, for one, had begun to question that!

What can YOU do? KEEP THE PRESSURE ON!! It seems, someone is listening to our pleas to stop the madness!! Call your representatives and tell them we need them to support HR 3126!

To track of the status of the bill, click here: HR3126.

I don't really reblog many things... and never do I reblog jokes, but his one has some merit worth consideration:

This September, our company closed $70 million more than any other September in our history! BUT the really great news is that 80% of our production resulted from purchase money transactions!! Yet, we only have offices in 9 states (by choice, obviously!)

How exciting is that? And, I for one, believe we have found the perfect solution to the balance between the product and security of working with a mortgage banker vs the service and pricing of a mortgage broker: It's called a correspondent lender, which you really don't hear a lot about.

A correspondent lender differs from a mortgage broker because we underwrite our own loans and fund with our own money. This allows us to provide service limited only by our internal systems. "Dual accountability" is the term our owner, Bill Starkey, uses to keep production and service both working toward the common goal that supports our tag line: "... a different kind of company where people come first."

Yet we are able to have product diversity that limit products (and guideline interpretations of) mortgage bankers. Let's face it, there are many mortage bankers that are very good at SERVICING loan payments, but not as focused on the service it takes in ORIGINATING loans. Why is that? Maybe because they know they can buy all the new loan originations they want!

Yes, we do have the best of both worlds, which is a very good reason to take another look at doing business with a correspondent lender. I think correspondent lenders could be the upset in the "which is best" race between "mortgage bankers" vs "mortgage brokers"! Just something to think about...

Heads up, Colorado... we just got our very first purchase suspense pending confirmation that a property has installed carbon monoxide alarms in conformance with the Colorado House Bill 1091 that went into effect 7/1/09, which is also known as Lofgren Family Carbon Monoxide Safety Act. This Act applies to both single family and multi-family dwellings and applies if the property is sold, remodeled, repaired, or leased after July 1, 2009.

For a full copy of this law, click here: Carbon Monoxide Safety Act

For a summary (that we can understand!) of this law, click here: CHB 1091

News will be breaking soon about yet MORE changes coming out for us to deal with in the wild world of mortgage lending. For one, there will be restrictions on WHO and HOW FHA appraisals are ordered, similar to the restrictions recently imposed by HVCC on conventional appraisals. YUK!

Additionally, the length of time an FHA appraisal is good for is being reduced to 120 days. Previously it was 6 months on existing and 1 year on new construction. Before complaining, though, think about this... IF you believe values are going to increase in your area, that could be a good thing. You won't be stuck with a value that is not represented of current market conditions.

And there's more, but I'll save that for another time once I've sold myself on the previous paragraph about this being a good thing.

This weekend we took a drive to Taos. Even though it's only about a four and a half hour drive, it's the first time we've ever gone to New Mexico. I'm not sure what it is, but no matter where we visit I can't help but wonder how the real estate values compare. Does everyone do this, or do I need counseling?

Taos was such an interesting little town. Incredible southwestern architecture, regardless of whether viewing a recently constructed hacienda or touring the ancient Taos Pueblo. What caused curiosity for me was what appeared to be the difference in the average household income vs the cost of real estate. So I did a little research comparing my little town of Castle Rock to Taos to see if the averages were comparable. And what I found seemed to justify my initial suspicion:

Taos: Average median household income = $29,602  vs median home or condo value = $239,100

Castle Rock: Avg med household income = $89,750 vs median home or condo values = $331,200

(figures taken from City-data.com)

That means the average price of homes in Taos is over 8 times more than the average income, whereby Castle Rock is just over 3.5 times more than the average income.

I suspect two things to be true about Taos, from my very limited research:

1) there must be a lot of retired people moving to Taos that pay cash for homes; and,

2) mortgage lending is probably not a very lucrative business there!

Many homebuyers are struggling with the decision of whether to buy now or wait and see if the 2009 Economic Stimulus Package ups the ante!

Currently, the tax credit available offers up to $8,000 to qualified first time homeowners who occupy the property as their primary residence for a minimum of 3 years. (Tax Credit Details)

But word of the Home Buyer Tax Credit Act of 2009 has caused many would-be buyers to stop and think about whether now really is the best time to buy. Two bills have been introduced, one by the Senate and one by the House of Representatives. Yet, each bill is basically the same.

H.R. 1245 Home Buyer Tax Credit Act of 2009, was introduced March 22, 2009 by Rep. Ken Calvert [R-CA44] and has 29 co-sponsors. It has been referred to the House Committee on Ways and Means. (Track HR 1245)

Home Buyer Tax Credit Act of 2009 was introduced June 10, 2009 by Sen. John Isakson [R-GA] and has 16 cosponsors. The bill has been referred to the Senate Finance Committee. (Track S. 1230)

• Basically the proposed legislation would still be up to 10% of the sales price, but increase the maximum one time tax credit from $8,000 to $15,000.
• Be available to ANY homebuyer whether first time or move up.
• Only have a two year primary residency requirement.

Now, here's the thing we need to remember: the initial piece of legislation that our current $8,000 tax credit stems from ALSO was proposing $15,000 and to be allowed for all home buyers. It wasn't until the last minutes of legislation that the amount was lowered from $15,000 to $8,000!

So, should home buyers roll the dice and hope rates stay low and the tax credit goes up??? What are YOUR thoughts?

To shop (and close) on a home and still get the 1st time home buyer credit, that is!

The clock is ticking ... and with the new mortgage disclosure regulations, you better subtract at least 30 days just to get your loan closed. So now you only have 80 days left to get your new home under contract!

Just as a reminder, here are a few of the features of the program:

1) Credit is for 1st time homeowners (defined as individuals who have not owned a home in the past 3 years)

2) Credit is equal to 10% of the sales price up to $8,000

3) Single taxpayers up to $75,000 annually and married couples with incomes up to $150,000 qualify for the full credit

4) Home must be purchased PRIOR to December 1, 2009

For more details on this program, visit this website: NAHB 1XHO INFO

To claim the credit, fill out IRS form 5405

....... 

  Foreclosure stats according to MBA:    

  Foreclosures in California and Florida increased (accounting for 39% of the total foreclosures started in the second quarter), offsetting the improvements in Texas, Massachusetts and Maryland.  

There were 8 states that exceeded the national average: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana, and Ohio.  

So, have we hit the bottom? Who knows? Just buy extra candy for the kiddies this year to make up for the vacant homes, if any, in your local market!

For the full story, click here: MBA

RECAP for the month of:

Month end again... seems like I JUST did a month end recap...where does the time go?

Here's a recap of the articles I posted this month:

FHA MIP effective 10/1/09

FNMA says 2 years after Short Sale

FNMA & FHLMC under conservatorship

Cities Likely to See Increase

Shopping Rates

Attn: COLORADO! CHFA continues!

Stopping "Buy and Bails"

Anyone Selling Hot Dogs?

Bail Out was a Bust