Conforming loan limit increased

FHFA Announces Increase in Maximum Conforming Loan Limits for Fannie Mae and Freddie Mac in 2017

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase.  In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000.  This will be the first increase in the baseline loan limit since 2006.  In higher-cost areas, higher loan limits will be in effect. 

The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price.  However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. home price returned to its pre-decline level.  Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased. 

Earlier today FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are now above their level in the third quarter of 2007.  The expanded-data HPI value for the third quarter of 2016 was roughly 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage.

100% gift fund program

Time to file your homestead exemption

Homestead Exemption:

Following are very important homestead exemption information.  I hope that the information I provide is useful. I am proving links to homestead exemption info per county. Most of Metro Atlanta counties are listed. If any of the web links are broken due to county website updates, please contact me and I will help you track down the proper websites and updated links.

What is homestead and what is needed to apply?

Homestead is a property tax reduction program, intended to keep taxes lower on owner-occupied homes.

In order to receive homestead exemption, you must present proof of ownership, complete a homestead application and provide the social security number of all owners. You must be listed as the owner on county tax records.

Who qualifies?

Those who own and occupy the property as their primary residence as of January 1 of the year for which application is made.

When should you apply?

You must apply by April 1 with most counties (please check with your specific county for particular deadlines) to receive credit on the current year tax bill. Applications received after April 1 will be processed for the following year.

Are there any special homestead exemptions?

Yes, for blind, disabled or paraplegic veterans, senior citizens and some people in military service. If all owners do not occupy the property, a partial homestead exemption may be given.

How often must I file?

Once, unless a form is mailed to you by the Assessor. If you receive an application, it is important that you complete it and return it to the address on the form.

Where can I file?

You should receive an application in the mail by February 1. If you do not receive an application in the mail, contact your county tax commissioner’s office or online for an application and any additional questions.

   

Cobb County:
Property tax Info search: Cobb County Tax Bill Search
Homestead Exemption: Cobb County Homestead Exemption Forms
 

Cherokee County:
Property tax Info search: Cherokee County Tax Bill Search     
Homestead Exemption: Cherokee County Homestead Exemption
 

Clayton County:
Property tax Info search: Clayton County Tax Bill Search    
Homestead: Clayton County Homestead Exemption Forms  
 

Dekalb County:
Property tax Info search: Dekalb County Tax Bill Search    
Homestead: Dekalb County Homestead Exemption Forms  

Fulton County:
Property tax Info search: Fulton County Tax Bill Search    
Homestead: Fulton County Homestead Exemption Forms 


Forsyth County;
Property tax Info search: Forsyth County Tax Bill Search    
Homestead: Forsyth County Homestead Exemption Forms
 

Gwinnett County;
Property tax Info search: Gwinnett County Tax Bill Search
Homestead: Gwinnett County Homestead Exemption Forms
 

Hall County;
Property tax Info search: Hall County Tax Bill Search
Homestead: Hall County Homestead Exemption Forms

Please feel free to contact me if you need further assistance.

3% down payment Conventional Loan

Guideline changes make it easier to qualify

Fannie Mae has implemented several changes to their underwriting guidelines which makes it easier for borrowers to qualify. Some of the highlights:

1.    Revolving Debt: If borrower is paying off a revolving debt (credit card), the borrower also had to close the account in order to exclude that payment from the debt-to-income ratio (DTI). Going forward, revolving accounts that are paid down to zero at closing may remain open and no monthly payment needs to be included in the DTI ratio.

2.    Conversion of Principal Residence Requirements: If a borrower is retaining their current primary residence and converting it to an investment property (while buying another primary residence) and wants to use any rental income from the property for qualifying, you are no longer required to have 30% equity in the property. 

3.    Stocks, Bonds, and Mutual Funds: One hundred percent (100%) of the value of the asset is allowed when determining available reserves. If the borrower documents that the value of the asset is at least 20% more than the funds needed for the borrower’s down payment and closing costs, no documentation of liquidation is required.

4.    Funds to close: This is not a new change but just a reminder: For primary residence: all funds for closing (down payment, closing cost, prepaids, reserves) can be gift funds. Borrower is not required to make any contribution from their own funds. This is helpful when borrower does not have savings of their own.  Many still think that at least 5% must come from borrower's own funds.


If you have any questions or would like to learn about additional changes giving borrower’s more flexibility when qualifying, please let me know.

Welcome to Autumn

Autumn is a second spring where every leaf is a flower. As you journey along your path to financial freedom, I am here to guide you. If there's anything I can do for you, call or email me anytime.

New TRID rules coming August 1. Are you ready?

New TRID rules coming. Are you ready?

Whether you are a homebuyer, real estate agent or mortgage loan originator, you should be aware that for loan applications taken on or after August 1, 2015, there will be big changes in disclosure documents and settlement procedures for home mortgage loans.

The Good Faith Estimate and the HUD-1 settlement statement will go away on most closed-end consumer purpose loans secured by residential real estate. These documents will be replaced by the “Loan Estimate” and the “Closing Disclosure.” These new documents are referred to as the TILA-RESPA Integrated Disclosures (TRID for short). These disclosure must be provided to the consumer three days before closing.

The purpose of these changes is to improve the mortgage loan settlement process for consumers. They are being implemented by regulations issued by the Consumer Financial Protection Bureau (CFPB), a federal government agency set up to look out for the interests of consumers seeking financial services. 

Following are some main points you should know:

1. How will the new rules affect the closing dates on purchase agreements? The National Association of Realtors (“NAR”) is recommending that 15 days be added to the purchase contract. So for example, if you customarily have a purchase contract that requires closing within 30 days, under TRID it is recommended that you now require closing within 45 days. A link to the NAR video is provided here: NAR video on TRID

2. How does TRID affect the seller? Under TRID the seller will now receive a separate Closing Disclosure that is prepared by the settlement agent. The settlement agent must deliver the Closing Disclosure to the seller 1 day prior to settlement (consummation).

3. How will this affect my settlement (consummation) date? For purchasers, it will be important that you work closely with your lender regarding approval of the loan and coordination of final walk-through with the realtor. Some contracts may increase from a 30 day requirement to settle to a 45 day requirement to settle which means move-outs, subsequent settlements and other relocation tasks may need to be adjusted to ensure a seamless transition into your new home. For consumers refinancing, you will need to ensure any loan changes such as adjusting the loan amount or changing loan products is discussed in advance with the lender to avoid re-disclosure of the Closing Disclosure once issued.

4. What will the new Loan Estimate and Closing Disclosure look like? Samples of the disclosure can be found on the CFPB website. Link to new disclosures.

It is important that you work with a mortgage professional who has full knowledge of the various changes so that the closing will go smoothly. Should you have any questions regarding any of the up coming changes, feel free to contact me.

Wishing you a happy and bright springtime season!

Reach out to us anytime about ways to make your finances bloom.

Credit Report Change

The three largest credit reporting agencies, Equifax, Experian and TransUnion will change the way they report medical collections, handle errors and resolve disputes. These changes will be implemented over the next 3 years.

The new agreement calls for reforms covering some of the most commonly expressed complaints from consumers about the credit reporting process including accuracy, the fairness and efficacy of complaint resolutions, and the harm done to credit histories due to medical debt.

• Improving the Dispute Resolution Process. Rather than relying as they do entirely in some cases on a fully automated complaint resolution process, the agreement requires that the CRAs have specially trained employees review all documentation submitted by consumers claiming that incorrect information belonging to other consumers has been mixed into their files or that they are the victim of fraud or identify theft. Even in cases where an automated dispute resolution system is employed a CRA employee must review the supporting documentation.

• Medical Debt. Medical debt constitutes over half of all collection items on credit reports and often results from insurance-coverage delays or disputes. Under the new agreement CRAs must institute a 180-day waiting period before medical debt is included in a credit report. In addition, while delinquencies ordinarily remain on credit reports even after a debt has been paid, the CRAs will remove all medical debts from a consumer's credit report once the debt is paid by insurance.

• Increasing Visibility and Frequency of Free Credit Reports. While current federal law provides consumers with the right to receive one free credit report a year from each of the three major CRAs, many are not aware of that fact. The agreement requires the CRAs to include a prominently-labeled hyperlink to the AnnualCreditReport.com website on the CRAs' homepages. Consumers will also now be entitled to receive a second free report each year if they successfully dispute an item on their report in order to verify the accuracy of the correction.

• Furnisher Monitoring. The Attorney General's agreement requires the three CRAs to create a National Credit Reporting Working Group that will develop a set of best practices and policies to enhance the CRAs' furnisher monitoring and data accuracy. This group will develop metrics for analyzing furnisher data, including: the number of disputes related to particular furnishers or categories of furnishers; furnishers' rate of response to disputes; and dispute outcomes. Each CRA will implement policies to monitor furnishers' performance and take corrective action against furnishers that fail to comply with their obligations.


**Swanson, Jann: Major Changes Coming for Credit Reporting:[http://www.mortgagenewsdaily.com/03102015_credit_reports_agencies.asp]:[March 10, 2015]

New HUD Rule Helps Buyers SAVE MONEY

HUD recently announced that it will be lowering the annual mortgage insurance premium. The new lower mortgage insurance premium will take effect starting 1/26/2015. Current FHA annual mortgage insurance premium on a 30 yr mortgage with 3.5% down is 1.35% or $197 per month for a $175k loan amount. The new rate will be 0.85% or $124. A reduction of almost 40% for a savings of $73 per month or almost $900 per year! This means that the borrower will have lower overall payments or increase their purchasing power to move up in price range. This is great news for the housing industry and will "help support home sales,  lower housing expenses for affected households, and help bring more balance to the housing market". 

If you would like more information regarding this important announcement or have questions regarding a loan/purchase scenario, please feel free to call me anytime.

Merry Christmas and Happy Holidays!

Best Wishes for Peace and Joy this Holiday Season and a New Year of Health, Happiness and Prosperity

HUD Appraisal Rules on HUD REO property

HUD issued Mortgage Letter 2013-44 on December 6, 2013. Majority of lenders implemented this rule in early February 2014. Although this rule is a year old, I wanted to post this as a reminder because I'm seeing some issues especially with over bids and properties with repair escrows.

HUD addressed the following in the Mortgagee Letter:

• Conditions that require a new appraisal on a HUD REO property, and
• Clarified their policy on the use of distressed properties as a comparable sale to establish value for HUD REO property.

New Appraisal Required

A new full appraisal must be ordered on a HUD REO property if any of the following conditions exist:

If a new appraisal is required based on the conditions above, the following applies:

• The original HUD ordered appraisal may not be used to underwrite the loan;
• HUD will not pay for the cost of the new appraisal. The borrower may be charged for the new appraisal as part of the borrower’s closing costs;
• A written justification for the new appraisal is required (documentation that one of the above conditions existed);
• Copies of all appraisals of the property must be retained in the loan file.

When the new appraisal is ordered, the new appraisal value may be less than the sales price and even HUD appraisal value. Sometimes there can be significant differences. This can cause the buyer to come out of pocket additional funds to cover the difference more than what the buyer had estimated when they made the over bid if they wish to complete the purchase. The significant difference in value most often arises with property that has major deferred maintenance and damage that does not exceed the $5000 repair escrow but has a bigger impact to value than the cost of the repairs would suggest (this is specific to HUD REO with repair escrow). 

Please keep this appraisal rule in mind when working on HUD REO properties.

Happy Thanksgiving!

We hope that you have a happy Thanksgiving with your family and friends. One of the things we are most grateful for is having wonderful clients like you. 

Changes to Fannie Mae guidelines

Fannie Mae Changes:

On July 29th, Fannie Mae posted a Seller Guideline Announcement updating their current credit policies as well as an update to DU. Those changes have been implemented over the past weekend. Many of the changes benefit borrowers who may have had foreclosures as part of bankruptcies in the past. However for borrowers with prior short sales, you are no longer eligible for financing after just 2 years with 20% down payment.

SUMMARY:

Effective Date(s):
All changes apply to applications dated on or after 08/16/2014 and to case files submitted or re-submitted to DU on or after 08/16/2014.

Mortgage Debt in a Bankruptcy
• The borrower is held to the BK waiting period and not the Foreclosure waiting period.

Foreclosures and DU
• Underwriters can instruct DU to ignore incorrect foreclosure information.

Deed-In-Lieu of Foreclosure and Pre-Forclosures (Short Sale)
• The waiting period for borrowers who have had a deed-in-lieu of foreclosure or short sale is now four (4) years.

New Mortgage Charge-off Policy - Effective immediately
• Fannie Mae will now require a four (4) year waiting period for any charged off mortgage account.

Please note: FHA allows financing 3 years after a short sale/foreclosure.

Wishing you and your family a fun and relaxing summer. 

Please let us know if there's anything we can do for you this season.

You Magazine May 2014

Follow Me On:

		Christian Pak Managing Partner Homeland Financial Phone: (404) 939-0502 Fax: (678) 638-1215 License: 162627 cpak@homelandmtg.com www.christianpak.com

May 2014 April 2014 March 2014 February 2014 January 2014 December 2013 November 2013		April Rates Bring May Closing Dates In mid-April, investors fled the Stock market by moving their money over to Bonds, which resulted in the lowest home loan rates seen in a month. Were they enough to get more buyers signing on the dotted line? Keep Reading »    Be Aware or Be a Social Media Square For many, communicating with younger loved ones requires knowledge of the latest social media apps and lingo. So, if you're feeling a little square and out of the loop, have no fear because we've got you covered. Keep Reading »    Shrimp Salad for Mother's Day and Entertaining in May With temps rising and Mother's Day around the corner, it's time to make a delicious shrimp salad, paired with a refreshing beverage. Impress your mother and guests alike with this early summer snack. Keep Reading »    The Three Types of Workplace Burnout Recognizing the right type is the key to beating it. Keep Reading »    Fitness Madness P90-What? "Hot" Yoga? How insane is Insanity? Find out the latest trends and programs taking over the gym and our living rooms. Keep Reading »    6 Things You Must Know About Tech Cleanup By Susannah Snider, Kiplinger.com While you're spring cleaning, don't forget to spruce up current devices and discard outmoded electronics. Keep Reading »

NMLS 150504 / 162627 Georgia Residential Mortgage Licensee