MortgageJaw.com

Here is a summary of the NEW RESPA Rule going into place January 1st, 2010.

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new RESPA rule became effective on January 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions (FAQs) on its website.

***Now below is the actual letter release from HUD***

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced that for the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under the Real Estate Settlement Procedures Act (RESPA), due to take full effect on January 1. The MRB instructed its staff to exercise such restraint in considering an action against FHA-approved lenders who have demonstrated that they are making a good faith effort to comply with RESPA’s new requirements.Hope this helps

In addition, HUD is asking other federal and relevant state enforcement agencies to exercise the same 120-day restraint in enforcement for non-FHA originators and other settlement service providers who demonstrate the good faith effort to implement RESPA’s new rules. In determining whether a mortgagee has made a good faith effort, MRB staff will consider whether the mortgagee has relied on the new RESPA rule and other written guidance issued by the Department, and the extent to which the mortgagee has made sufficient investment and commitment in technology, training, and quality control designed to comply with the new rule.

“We will work with those who are making an honest effort to work with us as we implement these important new consumer protections,” said HUD Secretary Shaun Donovan. “While we will not delay implementation of RESPA’s new requirements, we are sensitive to the concerns of the industry as it integrates these new rules into their day-to-day business practices.”

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new RESPA rule became effective on January 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions (FAQs) on its website.

By improving the disclosures borrowers receive when applying for a mortgage, and by promoting comparison shopping, HUD believes its new RESPA regulation will save consumers an average of nearly $700 in mortgage costs.

Looks like a new mortgagee letter from FHA, mortgagee letter 2009-46b is out with the new condo approval process for FHA loans. Saying it simpler, if you are buying a condo these are the guidelines lenders will be looking at for all FHA loans. You still have guidelines from Fannie Mae and Freddie Mac, then beyond that it is up to each individual lender and their interpretation of the guidelines and how much risk they want to take on. I originally talked about these changes in my earlier post HUD Delays Condo Changes notifying everyone of the delay until December 7th, 2009 for these changes to take place. The major change is the elimination of FHA’s Spot Loan Approval process for condo projects. So this means that all projects will be required to be approved through FHA with two approval options:

*HUD Review and Approval Process (HRAP)

* Direct Endorsement Lender Review and Approval Process (DELRAP) — The preferred method for approval, as it is typically faster.

DELRAP is available only through lenders who have unconditional Direct Endorsement authority as well as staff who are experienced in reviewing and approving condo projects. So this means for any one looking for financing on condos it is very important now what lender you choose and knows what they are doing!

Here is a link to the actual Mortgagee Letter 2009-46b for your reading pleasure. Any questions please feel free to ask and as always……Hope this helps

We have “Green Mortgages” or what we call Energy Efficient Mortgages. This loan allows the customer to finance improvements that result in making the home energy efficient. Now what makes this so appealing is we are starting to see a lot of people making these improvements to houses and/or looking for financing to do these improvements. Several things though would be needed to qualify a person for a Green Mortgage. The Energy efficient improvements must be “cost effective, so this means that the total cost of the improvements (including maintenance costs) must be less than the total present value of the energy saved over the useful life of the improvements. The full costs of the eligible improvements are added to the base loan amount and the customer does not need to qualify for the additional financing or provide an additional downpayment. In addition, a second appraisal is not required to reflect the expense of the eligible improvements. In place of not needing a second appraisal, you will need a written determination base upon a physical inspection of the property by an energy consultant using a Home Energy Rating System (HERS) must be provided by the borrower. The HERS energy consultant and contractor selected to install the improvements must be an independent entity, not related directly or indirectly, to the seller or the customer. For a list of certified energy specialists please visit: www.natresnet.org

This can be done on purchases and refinances and you can go all the way up to only 3.5% downpayment on these mortgages or 96.5% for refinances. Feel free to contact me with more questions about this since there is some more items that go into this type of loan.

Looks like HUD will be delaying the changes from Mortgagee letter 2009-19 to December 7th, 2009. Most of the changes are still coming out November 2nd from that letter, but new policy for condo project approval and condo unit financing is being delayed until the December date. So if you are in the market for a condo and need FHA financing to do it…..now is the time before the changes take place. Remember, the major changes that effect Chicago, Illinois are: HUD is putting the condo approval process in the hands of the direct endorsement lenders, so it will be up to them. HUD is still going to require 50% occupancy rate and they are capping their concentration to no more then 30% financed through FHA.

I can help you nationwide and Podemos ayudar en espanol! With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.

HUD and Condos, don’t forget about the change happening November 2nd! This should help a condo market like Chicago Illinois. Yes there are some downsides like consentration of FHA loans within a project, but conventional lenders have always had this in place and never hurt the market before. HUD is putting the condo approval process in the hands of the direct endorsement lenders, so it will be up to them. HUD is still going to require 50% occupancy rate and they are capping their concentration to no more then 30% financed through FHA. Most major lenders never went over 33% at the most in any project, so again, this has always been there and HUD is just coming into the times. There are several more changes that are taking place and encourage people to read the Mortgagee letter that I have linked to and is mortgagee letter 2009-19.

http://tinyurl.com/mortgagejaw10

I can help you nationwide and Podemos ayudar en espanol! With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.

Karl Case Says It’s Time to Drop Home Incentives for 1st time home buyers!!! The push to end the $8,000 tax credit for first-time buyers ends November 30th……so act now!!!

http://www.bloomberg.com/apps/news?pid=email_en&sid=az3blNPW5BXA

We can help you nationwide and Podemos ayudar en espanol!Need a Realtor, insurance agent, I can be your one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage. Send me an email or give me a call now. 

For 24/7 access from beginning to end of your mortgage, visit www.jasonwroble.com.

Either call or send an email and we can see if you would qualify for financing. If you currently have a mortgage and just want to see if you could get a better rate, its FREE!!!

We can help you nationwide and Podemos ayudar en espanol!

Need a Realtor, insurance agent, I can be your one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage. Send me an email or give me a call now. 

For 24/7 access from beginning to end of your mortgage, visit www.jasonwroble.com.