Long-term fixed rates decreased for the third consecutive week, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending March 3, 2011, down from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.97 percent.
The 15-year FRM averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.22 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, down from last week when it averaged 3.8 percent. A year ago, the 5-year ARM averaged 4.11 percent. More… »
The process starts with a real estate buyer with a property under contract. Once the settlement agent or closing attorney has been retained by the mortgage lender the begin the “title work.” That is the examination of the chain of ownership or chain of title to the property. This examination discloses the history of owners and lien holders on the property and helps the closing attorney to ensure that the buyer receives good clear title to the property and that the seller actually owns the property.
The closing attorney will also assist the lender to make certain the certain conditions of the mortgage loan are met. Like having the property insured for the proper amount of homeowner’s insurance or “hazard” insurance. The closing attorney will also help the lender and borrower meet conditions of the loan that are related to the title to the property, such as providing accurate real estate tax information. More… »
HUD’s videos are easily accessible from HUD’s website as well as from HUD’s YouTube channel.Keeping up with the changing times and the push of social media the Department of Housing and Urban Development (HUD) has set up a YouTube Channel. HUD has unveiled three how-to videos to assist potential homebuyers find an affordable home, shop for the right mortgage and what to expect at closing. More… »
With all of the recent talk of improper foreclosures having taken place, and the issues with bank owned real estate title problems, the question of the need for title insurance has been a hot topic. I have always stressed the importance of purchasing an owner’s policy of title insurance. Regardless of who is selling the property, how long it has been in the family or how familiar you or the seller may be with the property you just never know More… »
I have had a few clients ask me recently about the difference between buying a property at a foreclosure auction and buying a property owned by a bank (REO/Real Estate Owned).
A property purchased at a foreclosure auction or foreclosure sale is purchased through a bidding process by individuals at the auction. The property is sold to the highest bidder. If the foreclosing lender is not satisfied with the amount of the bids they may also bid on the property to raise the selling price. In the end the lender often ends up as the highest bidder and takes ownership of the property. Property that is acquired by the lender in this process is called REO property or Real Estate Owned property. The lender will in turn, eventually, place this property on the market with a Realtor for resale to the public. More… »
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Title insurance underwriters, concerned about the risk in insuring short sale flips have taken a position of not insuring them. Old Republic Title Insurance announced to it’s agents last month that it would no t authorize the issuance of lender or owner title insurance policies on short sale flip transactions.
So what is a short sale flip?
A short sale flip is when a property is purchased by a real estate “investor” from a seller who has negotiated with the current mortgage holder(s) to release the mortgage(s) for less than what is owed, the purchaser of the property then flips, or resells, the property for a profit. More… »
Must be provided to borrower within 3 days of receipt of a complete application.
Must match HUD-1 at closing within certain tolerances.
Except for “changed circumstances” GFE cannot change prior to closing.
Changed circumstances – is defined as: (1) Acts of God, war, disaster, or other emergency; (2) Inaccurate information being relied upon, (3) New information particular to the borrower or transaction that was not relied upon; or (4) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems. .
New style 3 page HUD-1 Settlement form:
HUD-1 Settlement Statement must match GFE within certain tolerances.
Lender must correct any intolerance within 30 days of closing. .
With limited exception fees quoted to a borrower on GFE cannot change prior to closing:
Lender Fees and Points cannot change.
Some settlement fees can change up top 10%.
Fees for borrower chosen services may change.
Escrows for taxes and insurance and per diem interest may change. .
Truth in Lending or Regulation “Z” Changes
The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.
The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.
If the annual percentage rate (APR) changes by more than 0.125 (1/8th) of a percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan.
A copy of the property appraisal must be delivered to the mortgage applicant at least three days prior to closing.
On February 23rd at 6:30pm, Jeff St. Laurent will be hosting one of his most impactful seminars to date.
Most people never finish what they start… and what is worse than that, of the people who do “finish,” most never give everything they have and are left with an empty feeling inside.
The lessons and strategies you will learn in this seminar come from a trialing journey Jeff experienced as a competitive athlete last year.
If you want to learn how to set yourself up for success, create true clarity on how you can move forward and create massive action…
n February 23rd at 6:30pm, I will be hosting one of my most impactful seminars to date.
Most people never finish what they start… and what is worse than that, of the people who do “finish,” most never give everything they have and are left with an empty feeling inside.
The lessons and strategies you will learn in this seminar come from a trialing journey I experienced as a competitive athlete last year.
If you want to learn how to set yourself up for success, create true clarity on how you can move forward and create massive action…
These most recent FAQs offer additional guidance on the following issues:
A loan originator can require the use of a particular provider of flood certification and tax service as long as that provider is not affiliated with the lender;
Pages cannot be added to the GFE but it may be printed on legal size paper and the shading and margins can be changed;
How to deal with the situation when an FHA approved loan correspondent closes a loan in its name that is not table funded by its sponsor;
What items can change when a new GFE has been issued and the interest rate has not been locked;
Clarification of some of the requirements when mortgage brokers and lenders interact;
What items can change when a revised GFE is issued and the borrower has previously locked the interest rate;
Lenders may not require a borrower to sign consents to verify employment, income or deposits prior to issuing a GFE;
Verification documents can be requested after a GFE has been issued;
Lender can indicate that although it has identified certain providers of settlement services these identifications do not constitute an endorsement;
When a new GFE has been issued borrowers are not required to re-indicate an intent to proceed;
An escrow waiver fee is a type of loan level price adjustment and may be part of the calculation of Block 2 on the GFE;
The Y.S.P. payment cannot be shown on the HUD-1 as POC;
If a lender requires a condominium certificate and questionnaire for loans on condos, that charge should be listed on Block 3;
Charges that are part of the sales contract, but are not required by the lender, are not disclosed on the GFE;
The fee paid by the seller for the preparation of deeds or closing charges should be disclosed in a blank line of the 1100 series in the seller’s column; and
If an appraisal is subcontracted by Company A to Company B, then Company A’s name should be identified on Line 804.
An index of over 300 home builders, which shows the demand for new homes. The index runs from 0-100, so a rating of 50 would mean that demand for new homes was average. Data used in the index is provided by the National Association of Home Builders (NAHB).
The index is not as comprehensive as formal housing reports like new home sales or MBA mortgage applications, the index is more like a supplemental indicator for predicting housing trends.
The NAHB Housing Market Index is used to provide general insight to where the housing market is heading. Because new home sales reflect ‘big ticket’ items that require construction and investment, the housing market is often considered an indicator of the direction of the economy as a whole. Growth in the housing market usually means subsequent spending, generating demand for goods and services and the employees who provide them.
he index is not as comprehensive as formal housing reports like new home sales or MBA mortgage applications, the index acts more like a supplemental indicator for predicting housing trends. As such, the NAHB Housing Market Index is still able to provide general insight to where the housing market is heading. Given that new home sales reflect ‘big ticket’ items that require construction and investment, the housing market is often viewed as an indicator of the direction of the economy as a whole. Growth in the housing market will spur subsequent spending, generating demand for goods and services and the employees who provide them
This is the real estate blog for the Law Office of David R. Rocheford, Jr., P.C.. Posts to this blog include topics of interest to the real estate and mortgage lending community. Posts also may also include topics that relate to personal and business development, humor and just plain interesting information.
