FHA Legislation Update

Okay - the President said he was going to VETO the bill going through the House today - if passed on to his desk.  And so with new excitement I decided to take a peak and see what's going on with FHA Modernization Legislation

H.R. 5958 is introduced in the House today, to make the higher loan limits for Fannie, Freddie and FHA permanent (this is not the legislation the President is speaking of). There's nothing in this bill that might make it easier for brokers to do FHA loans.

H.R. 5830 is the FHA Stabilization and Homeownership Retention Act of 2008 was introduced April 17th.  This bill is meant to make it easier to refinance folks who are upside down - EXTINGUISHMENT OF DEBT BY REFINANCING is one of the common themes of this bill.  Again, there's nothing in this bill that might make it easier for brokers to do FHA loans.

S. 2325 is the Senate bill that would have a $75K surety bond: The last action on this bill was 11/7/08, it's still sitting in the Senate Banking Committee.

S. 2338 was introduced by Dodd in December - it also has FHA modernization and risk based MIP in the fringes... but it is not moving out of Committee either.

The "Housing Bill" that the President said today he would veto - is about FORECLOSURES and there's nothing in this bill that might make it easier for brokers to do FHA loans.

In summary - every piece of legislation that's been introduced to help brokers with FHA have gone nowhere.  The changes to Reg Z are "harmful" to brokers.  The proposed changes to the Appraisal "modernization" regulations hurt brokers... I don't see anyone championing ANYTHING that makes being a broker easier... in fact... here in NC we are holding "RESPA Alert Town Meetings" because of these issues:

"RESPA has introduced a new proposed rule that is biased towards the big banks and credit unions. This proposed rule will require brokers to guarantee certain fees and hold them while the borrower is shopping your competitor. 

The Good Faith Estimate (GFE) has changed which benefits banks and hurts brokers. As a broker you need to attend this important meeting to find out how this rule adversely effects you and what you need to do to fight back."

Keep a Copy of Dubya's Check, Ya'll

If you are applying for a USDA, VA or FHA loan, you might be asked to write a "Letter of Explanation."  You might be asked to explain, for instance, why you had a 3 month gap between graduating from college two years ago and getting a job that August. 

You might be asked to explain why you missed those payments on all of your credit cards for two months straight 4 years ago - and saying, "It wasn't me" won't work.

We had a client who wrote us a long letter explaining that he'd missed multiple payments over a 5 year period because he had a "Split Personality." 

The letter was a MASTERPIECE - but unfortunately he had NO medical documentation to support the fact that "he had no clue why 'John' decided not to pay the bills that month and buy a new set of rims for the car." The loan was not approved.

You see, the underwriter, who puts their neck out to approve your loan - needs for you to document EVERYTHING in the file.   Today we need a complete history of EVERYTHING - including where that extra $600 deposit came from this month.  A copy of the newspaper report saying the tax rebate check is in the mail probably won't work - so we suggest ya'll keep a copy of those checks from Dubya'!

For more information about purchasing a home in Raleigh, Cary contact Steve and Eleanor Thorne, Meridian Residential, 919-459-1313.

Cheaper Gas and Lower Rates

I think we really need lower interst rates, and so I'm still sniffing around for bad news in the economy...  the President mentioned again today that we're in "pretty decent shape", and the economists are predicting that tomorrow the Fed will do a "one and done," signalling that fear of inflation is stronger than the worries about the economy slowing down more. 

Well, I think there might be a flaw in that logic. Don't get me wrong, the weak dollar is undoubtably a leading cause of higher gas prices - but did you see the earnings reports from the GAS COMPANIES TODAY?? (BP LLC, Europe's second biggest oil producer, reported a 63 percent surge in first quarter net profit on Monday after crude oil prices soared to an all-time high and natural gas prices also rose). There must be OTHER contributing factors besides a weak dollar?!?

Other snap shots today indicate that Consumer Confidence is way down (guess those $75 fillups at the gas station bother other folks too!) and the Case Shiller report shows folks in most parts of the country are still "losing" equity (thankfully that's not happening in my little corner of NC!).

I read the reports about LandSource Communities and their partners, Kimball Hill Homes who filed BK.  This is particularly noteworthy because "the California Public Employees' Retirement System, received the default notice Tuesday." Are we facing problems with PENSION funds while Gas Prices are going through the roof??? 

Maybe the President's right - and I'm not focusing on the real issues...  But from where I'm standing... We have some problems in the Economy, and it's going to take more than a couple of "Dubbya Dollahs" in our bank accounts to fix it.

I'm still on the prowl for lower mortgage interest rates and cheaper gas... but I'm thinkin' it could be a LONG wait!

Cheap Fun in Cary NC

Apparently I'm the last one to know... but Connolly's Irish Pub in Cary, NC has Trivia Night each Monday!  Steve and I went last night as the "advance party" to check it out - and we had a BLAST!

It starts when Slow Talkin' Tom starts handing out small piles of index cards with a pen. That's right - this is not some slick video trivia game played on a screen - this is LOW TECH and HIGH FUN!  It runs on Mondays from roughly 7:30 to 8:30 or 9:00.

Some of the questions from last night included:

1. Name the President that introduced Mother's Day in the US?
2. Who were the 2 first human astronauts in space?
3. Besides Arkansas - name 3 other states that the Arkansas River runs through (remember - we're in NC!)
4. Name the 2 PLAY IN teams for the NCAA Tournament.

We came in last... but figured that if we'd had more braincells playing with us we would have done better!  Most people play in teams of 4 or 5, and we will definately be going back with our friends!  I think this summer we will also go with our daughter and play against other middle school families!  So start brushing up on your trivia - meet us there! It's good ole' fashion fun - and you learn something too!

The food is EXCELLENT (we split a grouper sandwich) - and it's convenient to get to at Davis and High House.

For more information on Connolly's Irish Pub in Cary, NC click here.