I got emailed about a $20,000 Bounty that any blogger can win today.  The task?  Find VAMortgageCenter.com a VA Loan Underwriter. 

See it for yourself at the $20,000 VA Loan Underwriter page. 

Seems straightforward enough for me.  Any blogger can win, you just need to register at the site first.  Then start spreading the word.  Any applicant who lists your blog URL as their referring source, if they get hired, you get a big pay day!  Most bloggers I know have a hard time generating $20K per year from their blog, let alone in one day for a simple referral.

Any agent who has worked in the business for more than a month knows a few underwriters, if not on a personal level at least have spoken with them.  With government loans on the comeback, more and more are VA-approved.  I'll be taking a shot at the bounty, best of luck to you as well.

The most recent legislation regarding the home loan industry running through Congress has gotten a lot of press coverage.  Already through the House, it seems that raises in the loan limits for conforming loans and FHA loans alike will be pushing up to the $729K range.  Even if the new limits only last until the end of '08, I think this is great news for the housing industry and consumers.  

One thing that we haven't seen covered as much has been the new pricing adjustments that officially go into effect on March 1, 2008.   The adjustments come into play on all conventional mortgages when the buyer has a credit score sub-680.  What's intriguing about it all is that the interest rate hits are large enough that nearly every homebuyer walking through the door that has a credit score below 680 will almost assuredly be better off getting a FHA mortgage vs. a conventional product.

Yes, there are different fees associated with the FHA loan, but they don't outweigh the pricing hits on the conventional loans, at least not starting on March 1st.  The majority of lenders have already been instituting these price hits in preparation.  

Whether it's the pending legislation to up the loan limits (or the long-waited FHA 'modernization'), or the Fannie pricing hits, FHA is going to see the action it has been craving for the past 10 years.

Much like the resurgence of FHA home loans (which I, among others, have blogged frequently about), the subprime fallout has made the VA Home Loan a more popular option for qualifying homebuyers that have served in our military.  I try to keep up with a few industry blogs and one that has been forwarded my way a few different times by friends who serve is You Served.

Last week I noticed a post about a newly published statistics section on VA Loans from the producers of You Served, VA Mortgage Center.com.  It's an interesting read for anyone in the mortgage industry, especially if you are considering offering the VA products to help diversify your client base.  We've definitely experienced an upswing in the interest in both the VA and FHA programs with our clients, and if someone comes your way that may qualify under the VA program it's worth taking a look.  

The 'red tape' isn't what the reputation on these loans has spread - the days of no-doc loans and the like are behind us and the government programs are a great way to help out homebuyers who may need help with a downpayment.  Check out the stat report on VA Loans - Click here.         

Most of us are aware of Senator Chris Dodd's pro-FHA reform stance.  He has promised to make it a priority when Congress gets back in session in the coming weeks.  With HR1852 already through committee in the house and a lot of political talk being circulated on the subject of FHA modernization, it looks like some sort of legislation is more imminent than ever.

I personally have been amazed at the sheer amount of press that the subprime fallout and the housing market continues to get on a daily basis.  Not that it isn't big news when defaults continue to rise on subprimes and Alt-A loans, or that the fear of foreclosure is rampant in more American homes than we may have seen in a long time, but the press loves to talk about it all and regurgitate information.  

We posted a lighthearted comic about the subprime fallout on our blog yesterday to try and ease the tension (to mixed results).  Whatever your attitude about the current state of the housing market and if it's okay to have a laugh about it for a moment, take comfort in the fact that some sort of legislation (probably a watered-down version of HR1852) will be hitting the bricks in September.  Being a prominent member on a site that has long-touted the benefits of FHA loans and the ability of those stuck in nonprime loans to refinance to them, I'm hoping for the best myself.  There are hundreds of thousands of Americans that we hope to help through education about financing options or all the way through servicing their loans and refinances.  

Let's make something happen Congress, now's the time.

The No. 2 man at the U.S. Department of Housing and Urban Development recently implored subprime mortgage holders to refinance their skyrocketing loans through the Federal Housing Administration.

"The key is the FHA's loss-mitigation program," Brian D. Montgomery, assistant secretary for housing and HUD's federal housing commissioner, told the Rocky Mountain News during a forum at HUD's Denver office. "We want to keep people in their homes."

Twice as many subprime borrowers lose their homes to foreclosure than those with FHA-backed loans, according to Montgomery.

FHA loans are safer and more secure, especially for at-risk homeowners and those looking to escape the fiscal calamity surrounding the continuing subprime crisis.

Please take the time to consider an FHA refinance. Check out some of the information at Mortgage Loan Place's Lending Guide.  The subprime crisis continues to wrack up casualties and education is the first step in avoiding foreclosure and keeping your home.

We just published the Comprehensive Guide to FHA Loans on Mortgage Loan Place.  After about 2 months of our hard work, I feel like we have compiled one of the most useful handbooks / guides for consumers and lenders alike when it comes to FHA loans.  Visit the FHA Guide page to download it in .pdf format to see for yourself.

As FHA applications and general awareness about the FHA program continues to rise, we felt it was time to bring together all the expert information we could about the current state of FHA loans, the options the offer homebuyers and homeowners, and what the benefts and drawbacks are of the program.  I feel like realtors would also be well served by reviewing the guide since it has been so long since FHA loans had any noticeable market share.

Likely gone are the days of free-wheeling lending, subprime loans, and high consumer confidence in the market.  FHA Reform is likely to pass this year, but regardless if it does or not, myself and the others that contribute over at Mortgage Loan Place feel it would be worthwhile to give FHA a fresh start in our minds.  Hopefully our Guide can help.

We just published the Comprehensive Guide to FHA Loans on Mortgage Loan Place.  After about 2 months of our hard work, I feel like we have compiled one of the most useful handbooks / guides for consumers and lenders alike when it comes to FHA loans.  Visit the FHA Guide page to download it in .pdf format to see for yourself.

As FHA applications and general awareness about the FHA program continues to rise, we felt it was time to bring together all the expert information we could about the current state of FHA loans, the options the offer homebuyers and homeowners, and what the benefts and drawbacks are of the program.  I feel like realtors would also be well served by reviewing the guide since it has been so long since FHA loans had any noticeable market share.

Likely gone are the days of free-wheeling lending, subrpime loans, and high consumer confidence in the market.  FHA Reform is likely to pass this year, but regardless if it does or not, myself and the others that contribute over at Mortgage Loan Place feel it would be worthwhile to give FHA a fresh start in our minds.  Hopefully our Guide can help.

News surfaced today about the HUD putting into action measures that would eliminate downpayment assistance programs that have grown to encompass some 33% of all downpayments made on FHA loans.  The programs, of which there are actually hundreds, include big name options such as Nehemiah and AmeriDream helped put over 100,000 people into new homes in 2006.

HUD has noticed an increase in the rate of foreclosures in homes financed using these programs, and that is something they are looking to curtail.  Forelosures are on the rise nationwide, with many expecting the subprime mess to lead to hundreds of thousands more (if not millions).  Initiatives from other groups, both private and public, have also been enacted to help lessen the amount of foreclosures in the U.S.

This news comes only a week after the passing of HR1852 in the House, which in its efforts to modernize the FHA loan program would, among other things, eliminate the 3% downpayment requirement currently stipulated to obtain a loan from the FHA.  

The IRS is currently investigating 185 of the allegedly non-profit organizations that provide downpayment assistance.  More news as it develops I suppose . . .  

Legislation aimed at limiting the reach of subprime lenders was introduced into Congress on Friday.

The Predatory Lending Practice Reduction Act of 2007 calls for federal certification of mortgage brokers and agents and harsher penalties for violations.

"Predatory lending is a leading cause of foreclosures across this country," said U.S. Rep. Stephanie Tubbs Jones (D-Ohio), who introduced the bill. "It compromises the opportunity to own a home and hinders economic stability, creating greater disparities in wealth."

Forclosure or failed mortgages will strike more than 2 million American homeowners in the subprime market by the year's end, according to the Center for Responsible Lending, a nonprofit advocacy group. The cost in lost equity will near $164 billion.

About one in five people who obtained subprime mortgages in the last two years will wind up in foreclosure, according to the center.

More than a half-million borrowers have lost their homes in the subprime market, and industry experts project that another 2 million or so are likely to meet a similar fate as the subprime crisis spirals.

Along with the certification requirements, the proposed legislation also seeks to create minimum standards for information consumers must receive and cvil penalties for violations for predatory lending. It would also trigger the release of $2 million to educate community development corporations, who, in turn, would provide education about predatory lending to consumers.

This isn't the only bill that could spell relief for homeowners caught in the subprime web. Plans to overhaul and modernize the Federal Housing Administration are in the works, changes that could benefit millions of American homeowners feeling the crunch caused by subprime lending.

To learn more about the FHA and how it can help visit the HUD or perform a Google search.

Nearly all Americans share the dream of one day owning a home.  And whether you are a realtor, lender, or consumer, it's important that we are all well-versed when it comes to how to spot a predatory lender.  With all the news that has been out recently about the subprime fallout and the predatory practices that many have succumbed to in the past 7 years, now seems like a good time to talk about 5 easy things that we can all take with us regarding spotting a predatory lender:

1. Improper Documentation - This comes down to you as the borrower making sure that all the terms of the agreement that you have discussed with your lender are in writing.  Don't sign on the bottom line until you have reviewed every last word, and checked it with what your financial discussions were with the lender.  Be sure that none of the terms of the agreement are ommitted as well.

2. Hidden Fees - Predatory lenders are notorious for adding meaningless fees onto a mortgage.  If you are not comfortable with a certain fee, or notice one being added onto your mortgage at the last minute, question the lender or seek outside professional advice.

3. Overly-High Appraisals - Be wary of any situation in which the house you are looking to purchase is appraised well over it's actual value.  Predatory lenders can use this to get more money out of you.  Trust in your realtor and a 3rd party appraisal service (professional or online) to make sure everything checks out for the amount you're paying for the home.

4. Payment Term Changes (especially near closing) - Do not accept last-minute changes to the terms of payment on your mortgage without intense scrutiny.  Very rarely are there any reasons to change the payment terms once you have already been through most of the approval process with your lender.

5. 'Instant' Loan Approval - Ads or practices that guarantee 'instant' loan approval are generally too good to be true.  Lenders are supposed to do their homework on you and your financial situation to ensure you get placed in the right loan and right monthly payment for your budget.  Instant approval means they are willing to put anyone in any type of home, and that can either lead to predatory practices on their part or potential financial problems (and maybe foreclosure) for you down the road.

Be smart everyone, purchasing a home is one of the biggest decisions of your life.  While it is of course the American Dream, make sure you do your homework first.