Half the Mortgage Brokers in Colorado THROWN OUT! - 08/31/09 01:34 PM
As of today, about half of the mortgage brokers in Colorado are no longer allowed to sell loans.  We were told over a year ago that we needed to take classes and pass a test, but only half of us did it. 
And we wonder why there are so many foreclosures!
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****NEWS ALERT****
The Colorado General Assembly passed House Bill 1085 in 2009. This bill became effective August 5th, 2009. House Bill 1085 defines circumstances in which the Director may inactivate a mortgage loan originator license if they have failed to comply with the education and testing requirements.
· As … (3 comments)

How High Can the DTI Go? - 08/28/09 10:06 AM
We are often asked what the maximum allowable debt-to-income (DTI) ratio is for the various types of loans.  Here you go:
For FHA loans, the maximum allowable DTI is 43% if the loan is manually underwritten and it is unlimited if the loan is underwritten through FHA's online underwriting software.  We routinely get approvals with DTI's in the 50% - 60% range if the borrower has good credit. For VA loans, the maximum DTI is 41% if the loan is manually underwritten and it is unlimited if the loan is underwritten through VA's online underwriting software.  Again, we routinely get approvals … (2 comments)

Gift Funds Used for the Down Payment - What are the Rules? - 08/21/09 11:58 AM
If a borrower does not have enough money to pay for the required down payment, it is permissible to have a relative give the borrower the money for the down payment.
With an FHA loan, the entire down payment amount can come from a relative.  The gift donor must sign a letter stating that the funds do not have to be paid back.  The donor must be able to show that they are able to provide the funds (a bank statement showing the money has not just recently been deposited into their account is sufficient), and the borrower must show receipt of the funds (a … (121 comments)

$8,000 Tax Credit Expires Soon - 08/20/09 05:05 PM
There is much news these days about an extension to the $8,000 first-time homebuyer tax credit.  There is also talk that it might be expanded to include second homes and investment properties.  PLEASE don't believe it.  The tax credit is set to expire on November 30, 2009.  Under the current IRS rules, if the closing is after that date, then the buyer does not get the credit. 
Congress might extend the credit, but they might not.  They might expand it to include second homes and investment properties, but they might not.  If there is one piece of advice that we can … (0 comments)

Is Anyone Reviewing the Title Commitment? - 08/17/09 12:29 PM
It's important to make sure your mortgage broker is reviewing the title commitment on all your deals.  Many times, there are issues that must be addressed by the seller that could be deal-killers if they are not dealt with correctly.  Some examples of things that might show on the title commitment include:
Tax liens Judgments Mortgage liens that far exceed the value of the property Foreclosure proceedings have been started Etc.  Although these are all issues that the seller must address before the closing, the lender should make sure they are being resolved in a timely fashion.
 
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How to Avoid Closing Delays - 08/10/09 09:17 AM
The new Truth-in-Lending law recently went into effect.  One of the most important parts of the law says that if the Annual Percentage Rate (APR) on the final Truth-in-Lending disclosure differs by more than 0.125% from the APR that was disclosed on the most recent Truth-in-Lending disclosure issued by the lender, then the loan cannot close until 3 days after the lender delivers an updated disclosure showing the correct APR.  Ensuring that the APR is correct is the responsibility of the lender.  However, there are a couple things that routinely change near the end of a transaction that are the responsibility … (1 comments)

Read the Counter-Proposal! - 08/10/09 09:11 AM
We're seeing a lot of sales contracts with counter-proposals from the seller stating that the seller will only pay for non-recurring closing costs.  A non-recurring closing cost is a fee that is only paid once, at the closing.  If a fee will need to be paid more than once over the life of the loan, then it is known as a recurring closing cost.  In the counter-offers we're seeing, the dollar amount of the closing cost concession in the counter-offer will very often be the same as in the offer, but there can be a big difference in how much money … (2 comments)

 
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Chris Thomas

Denver, CO

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The Mortgage Experts at America's Mortgage

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