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real estate finance: Comment Now Before FHA Takes Another Bullet Out of Your Gun - 06/17/08 08:57 PM
DPA Killer The Storm is Coming.  





Hud is trying to deliver another knockout punch to the housing industry.  Round 2 at eliminating Down Payment Assistance.  The proposed rule has just been published and has a 60 day comment period ending on August 15, 2008. HUD's topline motive is that loans carrying down-payment assistance have a higher default rate.  I don't think there is any way to logically argue against that fact; a borrower with no money involved is likely to walk away.  HUD manages this higher default rate the same way they manage all defaults. … (6 comments)

real estate finance: Washington - Clears up the Terms for Borrowers - 06/11/08 05:39 PM
Washington House Bill 2770 goes into effect tomorrow, 06-12-2008. 
Some main points:
New material terms disclosure - 1 page loan summary No negative amortization loans (not a lot of these in the market place presently) No reverese mortgages (This needs to be revised) - and it appears the state is working that way. Disclosure Required:
The present model disclosure can be found on the States website at:  http://www.dfi.wa.gov/resources/2770_disclosure_rulemaking.htm
•  A disclosure must be provided to the consumer by whoever is taking the application (Broker or Lender) within 3 days of application.
•  Any changes to those terms a new disclosure … (0 comments)

real estate finance: FHA Risk Based Pricing Rears it's Ugly Head - 06/11/08 09:42 AM
Starting July 14, 2008 FHA will go to Risk Based Pricing to Determine the UP-front and monthly MI.  While overall it will not have a huge impact, it will increase some consumer monthly payment, and thus decrease the amount they will be able to borrowl
The pricing is based on 3 factors:
1.  "Decision Credit Score" - more about this later
2.  Loan to Value
3.  Amortization Term - either 30 year or 15 year
The only item outside these 3 is if it is a first time homebuyer, with HUD counseling.
 
Another notable point; to go above 90% LTV … (1 comments)

real estate finance: Illinois Gears Up to Slow Down Home Sales in Cook County - 06/11/08 09:20 AM
Yes, you read it correctly.  The Lending Database Program is set to go into effect, July 1.  This will be the 3rd attempt at doing this.  The newest iteration is from Senate Bill 1167. 
Plan on all loans in Cook County taking at least one week longer than usual, and if the borrower is required to go through counseling count on two weeks.  Keep in mind virtually all parties to the transaction will have a role to play.
The following will be required to go through counseling no matter what:  First Time Homebuyer, Negative Amortization, Interest Only,  Adjustable Rate Mortgage,  Points and … (0 comments)

real estate finance: Information You MUST Know About Declining Market Areas - 11/29/07 12:47 PM
Per Fannie Mae Part XI of the Selling Guide, Lenders are responsible for the accuracy of the appraisal, and the assesment of the marketability of the property. Take some time to click on the link below download the latest release and see if any of the declining areas are in an area you are considering purchsing.  If there are any make sure you inform the appraiser to comment on it and justify and sales or significant amounts of foreclosures in the area.  Expect a 5% reduced LTV, and possibly a second appraisal and an AVM.
The deals can still be done, they just … (0 comments)

real estate finance: Information You MUST know about Decling Market Areas - 11/29/07 12:45 PM
 Per Fannie Mae Part XI of the Selling Guide, Lenders are responsible for the accuracy of the appraisal, and the assesment of the marketability of the property.
Take some time to click on the link below download the latest release and see if any of the declining areas are in your area.  If there are any make sure you inform the appraiser to comment on it and justify and sales or significant amounts of foreclosures in the area.  Expect a 5% reduced LTV, and possibly a second appraisal and an AVM.
The deals can still be done, they just require a much more … (0 comments)

real estate finance: Lesson's Learned from the Credit Crisis - 11/27/07 10:00 AM
Education - For everyone
Everyone needs to be aware of all the products being offered in the marketplace.  By having depth of the marketplace you can better advice your clients on the positives and negatives of the particular financial vehicle they are considering. 
This would cause a lot of people to have to be forceful and to have a well thought out reason why the particular mortgage does not fit there overall short and long term goals. 
How many people would be thanking you right now had they been talked out of there present loan. 
It's not that I'm advocating a fixed … (3 comments)

 
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Jeremiah Wean (NMLS#132221)

Indianapolis, IN

More about me…

Lakewood Lending Group, LLC (NMLS#132141)

Address: 10218 Windward Pass, Fishers, IN, 46037

Office Phone: (317) 401-9700 x 101

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