Richard Woodward's Blog

How to Buy a Home in Today's Market

Richard Woodward (Envoy Mortgage) — Tue, 29 Jun 2010 10:58:24 -0700

How to Buy A Home in Today's Market

Buying a home raises a lot of questions. We know because we answer those questions every day. Our goal is to help you get straight answers to your specific questions. To make it easier for you, we've put our experience into this E-book. Click Here to get yours FREE.

Create Your Own Stimulus Package

Richard Woodward (Envoy Mortgage) — Fri, 07 May 2010 11:18:14 -0700

Richard Woodward
Banker / Senior Manager
Envoy Mortgage
Phone: 972-661-5136
Fax: 972-314-9647
Rwoodward@Envoymtg.com
www.Envoy-Mtg.com

May 2010


	April 2010
	March 2010
	February 2010
	January 2010
	December 2009
	November 2009

Create Your Own Buyer Stimulus Package Great Home Buyer Opportunities Despite Government Program Endings The Federal Government's Homebuyer Tax Credit may have expired on April 30, but just because Uncle Sam has turned off the financial spigot aimed at housing doesn't mean home buyers still can't get 'something extra' during their purchase. The keys for buyers today are how they negotiate and structure the terms of their offer. Keep Reading »

Mother's Day Spa Lunch Creating a Special Day for the Mom (Or Moms) In Your Life By Kirk Leins Mother's Day is just a few days away. If you've yet to plan a celebration for the mom or moms in your life, you'll definitely want to stick with this article. It may be too late to make reservations at a restaurant, but it's not too late to put together an incredible lunch that you can serve right in your own home. Keep Reading »

Cash for Clunker Appliances The fridge on its last legs? Uncle Sam wants you to replace it with a new, energy efficient model - and will give you money to do so. By Jim Ostroff, Kiplinger.com Cash rebates for clunker vehicles were such a smash hit, the government is at it again - this time offering you cash for your worn-out household appliances. The $300-million federal program - administered through the states - will provide consumers with a cash rebate of up to 15% of the cost of each new Energy Star-rated refrigerator, freezer, dishwasher, clothes washer, water heater and room air conditioner. Keep Reading »

Live It, Love It, Earn It A Her and His Book for Enhancing Finances Marianna Olszewski is on to something. From the moment we picked up her book, Live it, Love It, Earn It: A Woman's Guide to Financial Freedom, we knew it needed to be shared with our readers. Whether you're male or female, established or just starting out, we're sure you'll love Marianna's fresh take on taking control of your personal finances. Keep Reading »

Simple Truths Do You Walk the Talk? Motivational author and speaker Zig Ziglar once said, "Success means doing the best we can with what we have. Success is the doing, not the getting; in the trying, not the triumph. Success is a personal standard, reaching for the highest that is in us, becoming all that we can be." Keep Reading »

Shedding Winter Weight the Smart Way Tips for Keeping Weight Off for Good With summer just a few months away, many folks will soon begin focusing on shedding their winter weight in order to regain swimsuit physiques. If this is a yearly ritual for you, we urge you to read on. Dr. Paul Drew is back with us, sharing his tips for keeping the weight off for good. Keep Reading »

Webcam Interviews Offer Opportunities and Challenges for Applicants Here's What You Need to Know to Succeed When video capabilities were added to instant messaging services from AOL, Skype, and Yahoo, communication was changed forever. But what started out as fun technology for recording yourself or communicating with family and friends is now getting down to business. Keep Reading »

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Richard Woodward
Envoy Mortgage
17440 Dallas Parkway, Suite 118
Dallas, Texas 75287

Are Interest Rates On the Rise

Richard Woodward (Envoy Mortgage) — Mon, 03 May 2010 10:44:28 -0700

Richard Woodward
Banker / Senior Manager

Phone: 972-661-5136
Fax: 972-314-9647
Rwoodward@Envoymtg.com
www.Envoy-Mtg.com

Interest Rates on the Rise?

For the last couple of years, home buyers have benefitted from an affordable combination of lower home prices and lower interest rates. But if you've been on the fence about buying a home, or waiting for even better buying opportunities, now might be the time to give us a call to see if buying today makes sense for your individual goals and needs. Even though the government's popular Home Buyer's Tax Credit expired on April, 30, 2010, this is still a good time to act, as home affordability is likely to get worse before getting better. Ever since the Federal Reserve's program to help lower home loan rates and stabilize the housing sector ended in March, 2010, after purchasing a reported $1.25 Trillion in Mortgage Backed Securities, the mortgage market has been very volatile. And despite fluctuations, rates remain good overall; but, as the Federal Reserve sells off some of its huge holdings, supply in the market will increase, and likely lead to higher rates. Don't wait until higher rates force you out of the market. Give us a call today.

Extended Warranties

If you're thinking about buying a major appliance, you'll likely be offered an option to purchase an extended warranty. Major home appliances often include dishwashers, free-standing ranges, many types of ovens, many types of refrigerators, washing machines and dryers, microwave ovens and many types of televisions and computers.

Extended warranties are basically repair insurance in case something goes wrong after your manufacturer's warranty expires. Before you decide to purchase this insurance, be sure to research your product with Consumer Reports or similar organizations to see if it makes financial sense for your individual needs.

Studies by Consumer Reports and JD Power and Associates consistently show that purchasing extended warranties on certain major appliances doesn't make financial sense in many situations, since major appliances generally exhibit strong reliability. There are, of course, exceptions for certain repair-prone brands, which consumer groups define in their specific studies.

Extended warranties, however, do offer peace of mind which, for many consumers, is worth the extra cost. And for some appliances with complex electronics and potentially high repair costs, purchasing an extended warranty may make more sense. For the best results, however, do your research before you go shopping, and, before you buy an extended warranty, be sure to read the fine print.

How Long Should You Keep Your Tax Returns?

If you're not sure which tax documents to keep and which ones to drop in the shredder, you're not alone. Even the experts disagree. In fact, there are two basic schools of thought on this, and both seem to relate to the IRS' statute of limitations for auditing your tax returns. One school says keep tax returns and accompanying paperwork, including W-2 forms, 1099 forms, other tax reporting statements and end-of-year bank statements that show interest earned, for 3 years. The other claims that holding onto these documents for up to 10 years is the safest bet.

For assessment of additional taxes by the IRS, or if you intend to claim additional refunds, the statute of limitations is generally three years from the date you file your return. However, if you fail to report all of your income and the under-reported figure is more than 25% of the gross income provided on your return, the IRS has six years to audit your returns. Additionally, if you claimed a loss on certain securities, the statute of limitations is seven years. Of course, there is no limitation if you filed a fraudulent return or if you didn't file a return at all. With this in mind, consider keeping your tax returns and relevant documents for a minimum of 7 years.

Rethink Your Refund

According to USA Today, the average 2009 tax refund through March 12 is $3,036. In good economic times tax refunds are often viewed by many Americans as a kind of financial windfall, "extra" or "free" money that leads to splurge purchases like vacations, down payments for cars or big-screen TVs. But, especially in a tougher economy, it's important to remember that your tax refund is not a gift from the government. It's actually your hard-earned salary that you overpaid to the government throughout the year. In other words, this cash is actually "lost" money, not to mention the average $253 dollars a month in lost opportunity cost. After all, think about what this money could've made for you in your employer-matched 401K or other retirement plan. Imagine the interest on credit cards or your car payment or even your rent that you could've saved by paying an additional $253 a month. With this in mind, before you go out and splurge on big-ticket items, please give us a call. This money could really help you toward reaching your goal of homeownership this year, and we'll show you how. We'll review your finances and help you determine what makes the most sense for your individual financial goals and needs. If you're not sure which tax documents to keep and which ones to drop in the shredder, you're not alone. Even the experts disagree. In fact, there are two basic schools of thought on this, and both seem to relate to the IRS' statute of limitations for auditing your tax returns. One school says keep tax returns and accompanying paperwork, including W-2 forms, 1099 forms, other tax reporting statements and end-of-year bank statements that show interest earned, for 3 years. The other claims that holding onto these documents for up to 10 years is the safest bet.

Special Alert Fed is meeting soon and could impact rates

Richard Woodward (Envoy Mortgage) — Wed, 21 Apr 2010 12:07:09 -0700

The Fed is meeting April 27 and 28th, and its actions could impact home loan rates! Don't Wait. Call me before the Fed acts so we can review your situation and determine if there's anything you need to do.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts

Office: (972) 661-5136

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

Fannie Mae Changes Rules regarding Obtaining new mortgages after short sale

Richard Woodward (Envoy Mortgage) — Thu, 15 Apr 2010 14:38:35 -0700

Many people today are considering short sale or deed-in-liew of foreclosure as an option to foreclosure. How does that effect the sellers ability to obtain a mortgage in the future? Today, Fannie Mae announced an immediate change to it's guidelines that could help some buy a new home sooner than in years past.

According to a letter posted yesterday (April, 14, 2010) written by Marianne E. Sullivan, Senior Vice President at Fannie Mae, borrower waiting periods will be shortened if they put more money down on their purchase. This move is in an effort to support overall market stability and reinforce the importance of borrowers working with their servicers when they have difficulty repaying their debt.

Here are the changes:

Waiting Period After a Preforeclosure Sale, Short Sale, or Deed-in-Lieu of Foreclosure

Preforeclosure Event

Current Waiting Period Requirements

New Waiting Period Requirements ⁽¹⁾

Deed-in-Lieu of Foreclosure

4 years

Additional requirements apply after 4 years up to 7 years

•	2 years - 80% maximum LTV ratios

•	4 years - 90% maximum LTV ratios

•	7 years - LTV ratios per the Eligibility Matrix

Preforeclosure Sale

2 years

Short Sale

No policy currently exists specific to short sales

Exceptions to Waiting Period for Extenuating Circumstances

Extenuating circumstances are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower's claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower's inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).

The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on their financial obligations.

Preforeclosure Event

Current Waiting Period Requirements

New Waiting Period Requirements ⁽¹⁾

Deed-in-Lieu of Foreclosure

2 years

Additional requirements apply after 2 years up to 7 years

2 years - 90% maximum LTV ratios

Preforeclosure Sale

No exceptions are permitted to the 2-year waiting period

Short Sale

No policy currently exists specific to short sales

Based on my experience, exceptions are rarely granted by lenders out of fear of loan repurchase requests by Fannie Mae so I wouldn't count on this as an option. Overall this is welcomed news as it will help fuel the next round of purchases for everyone.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Toll Free: 866-430-7767

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

Factors To Consider When It Comes to Your Mortgage

Richard Woodward (Envoy Mortgage) — Fri, 09 Apr 2010 09:04:38 -0700

Putting Things in Perspective
Factors to Consider When It Comes to Your Mortgage

In last month's You Magazine, Barry Habib, Chairman of Mortgage Success Source, discussed how home loan rates may well buck the phrase, "March comes in like a lion and out like a lamb" due to the Federal Reserve ending its Mortgage Backed Securities (MBS) purchase program on March 31st. And the last week full week of March did in fact feel the "roar of the lion" as in two days, interest rates increased sharply following financial uncertainty and action within the bond markets.

With uncertainty surrounding the months ahead in the mortgage arena, here is some information to help you put things into perspective.

First Things First
Mortgage rates did rebound a bit from the highs set in March, but one thing was left clear for all watching mortgage and interest rates overall. Volatility and spikes in rates can occur anytime, be it in the U.S. economic arena or the world.

That being said, everyone wants to get the best rate for their mortgage. When the last interest rate wave came across the land in 2003, happy homeowners couldn't wait to brag that they received an interest rate below 5.50% for a 30 Year Fixed, which was then the lowest rate we had ever seen. We are still well below that level.

Would $1 a Day Keep You from Your Dream Home?
Even though 30 year fixed rates starting with the number "4" with no points may be out of reach, a great rate can still be obtained. The other thing to take into consideration is that with a mortgage amount of $200,000, the difference between a rate of 5.00% and 5.375% for a 30 year fixed rate is $46 a month.

While no one wants to pay more for their mortgage than they have to, most people would agree that $46 a month is typically not enough to prevent them from buying the home of their dreams. After all, $46 a month is less than the cost of one tank of gasoline for many people. Combined with the after tax benefits of deducting the interest on a mortgage payment, for many families we are talking approximately $1 a day.

Lower Payment vs. Lower Rate of Interest
With interest rates at phenomenally low levels, an argument can certainly be made for people considering a mortgage for a shorter term. The 15 year fixed rate mortgage is one loan often considered.

Through the first twelve weeks of this year, 15 year fixed rates according to Freddie Mac have averaged a better rate of just over .50% as compared to a 30 year fixed. The greatest benefit of choosing a shorter term is knowing that the mortgage will have a zero balance in 15 years, saving the borrower over $110,000 in interest payments over 30 years.

However, the lower rate and shorter term do come at a monthly cost for borrowers. The difference in monthly payment for a 30 year fixed at 5.00% and a 15 year fixed at 4.50% is $477 a month higher for the 15 year fixed. And in these tough economic times, "cash is king." That is, "cash on hand" is king.

Many people would be better served having a smaller mortgage payment under a 30 year fixed, and then saving or investing the extra money. Note, saving and investing rather than spending the extra money is the key point here. In particular, people who find themselves without a job or who have a pressing financial need would benefit from being able to access these saved funds.

Other Options
While adjustable rate mortgages (ARMs) were touted as a contributor to the mortgage melt down, perspective in this arena is warranted as well. In viewing ARMs as an alternative, the most important thing to consider is how long someone intends to have the mortgage in place.

Many industry experts state the average time a mortgage is in place is seven years. Seven years is a long time. People move to different homes, relocate for employment reasons, and see their children get older, go off to college, or move out completely. It's important to consider these types of factors when selecting a mortgage.

According to Freddie Mac, over the last twelve weeks, the interest rate for a 30 year fixed has been just north of .75% higher than that of a 5/1 ARM (where the interest rate would be fixed for 60 months before incurring an adjustment). If you know that you may be moving either before the interest rate is subject to change or shortly thereafter, that .75% would save approximately $90 a month in the same $200,000 example above.

For those looking for a little more security, a 7/1 ARM (meaning the interest rate would be locked for 84 months before incurring an adjustment), offers an interest rate that is nominally higher than a 5/1 ARM (perhaps .125-.25% in interest) but still quite a bit below that of a 30 year fixed rate.

For people who expect to have shorter time frames for their mortgage, these two loans offers a fantastic rate while still assuring that the monthly interest rate and payment will not change for a specified period.

Best Path for all Prospective Borrowers
Whether you are looking to refinance or buy a home, attractive options remain for anyone seeking a mortgage today. However, as an individual or family's mortgage payment is often their largest monthly payment, obtaining proper advice is paramount to making the best decision.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

Home Buyers the time to act is now

Richard Woodward (Envoy Mortgage) — Mon, 15 Mar 2010 16:40:02 -0700

Attention Homebuyers: Double-Barrel Stimulus Deadlines
Threaten Rates and Affordability; The Time to Act is NOW!

The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now."

This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion.

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

Just How Much Will Waiting Cost?
While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

If you or anyone you know is looking to purchase or refinance a home, waiting could be costly! Act now...so you can save later

Richard Woodward
Banker / Senior Manager
Envoy Mortgage
972-661-5136
RWoodward@Envoymtg.com

17311 Dallas Parkway Suite 173 Dallas, Texas 75248

Cash Strapped Buyers Could Get Shut Out - USDA Funding Running Low

Richard Woodward (Envoy Mortgage) — Fri, 12 Mar 2010 15:08:45 -0800

Cash Strapped Buyers Could Get Shut Out

If you have buyers in need of 100% financing, take notice! One widely popular tool for funding is about to run out of money. Buyers that need a no down payment loan guaranteed by the USDA are running out of time to get their deal done. This program is a favorite among first time home buyers.

USDA Rural Home Loans have been a phenomenal tool for helping cash strapped buyers get into homes for no down payment. Unlike many other loan programs though, the amount of funds available to fund these loans are set and capped at the beginning of the fiscal year.

Notice was delivered from Washington on March 9 that the funds are nearly exhausted, with expectations that they will run out in late April.

Unlike years past when similar notifications have been delivered, the USDA will not be issuing conditional commitments for buyers as the program awaits new appropriations from Washington. The USDA states they are "not certain when additional funding will be available."

What does this mean for your buyers?

If your buyers need 100% financing and are not eligible for a VA loan, they have to act quickly or they will have to seek other options. Combined with tightening from HUD on FHA loans in April and potentially later this summer, cash strapped buyers may be shut out if they miss this opportunity. To take advantage of the First Time Buyer Tax Credit and the Step-Up Buyer Credit contracts must be signed by April 30th, 2010.

If you have any questions, call me and let's discuss them.

Sincerely,

Richard Woodward
Envoy Mortgage

Phone: 972-661-5136 or Toll Free: 866-430-7767
www.Envoy-Mtg.com

Where Are Rates Going Now?

Richard Woodward (Envoy Mortgage) — Fri, 05 Mar 2010 14:03:49 -0800

Important Deadlines on the Horizon

Two years ago, the Washington Post reported that home loan rates shot up to nearly 7% from 6% in less than a week. The volatility demonstrated that week resulted from turmoil in the financial markets and a lack of buyers for mortgage backed securities (MBS).

That volatility continued through November 2008 when the Federal Reserve announced a program designed to lower rates and provide stability to housing. That program has been incredibly successful, driving rates to the lowest levels of all time. However, as this program will end March 31st, people want to know: Where are rates going now?

Looking for Clarity
This month YOU Magazine turns to Barry Habib, Chairman of Mortgage Success Source, for his viewpoint. Mr. Habib has been very accurate in his assessments of both the financial markets and the direction of mortgage rates, providing education and market information to 30,000 home loan professionals across the country.

Mortgage rates are tied to the price of MBS and like other fixed income vehicles similar to U.S. treasuries, the higher the demand and price, the lower the corresponding rate or yield will be. Therein lies the issue. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% or more of all MBS issued in any given month.

The concern is that when the Fed concludes the program, who will step in to pick up the supply of mortgages for the rest of 2010 and beyond. If investor interest is scarce, look for rates to rise. Also, filling the hole with avid buyers is not the only potential headwind facing MBS and other fixed income investments.

Think About It this Way
Throughout the boom years of real estate, homeowners could just about set any price they wanted when the time came to sell their property. In many cases, simply putting a sign in the front yard would bring multiple offers, driving the price of the home up.

The Federal Reserve has acted in this capacity, supplying heated buying interest for the last fourteen months, in essence, setting the price of MBS and keeping interest rates low. When the Fed stops buying in April, the concern that exists isn't so much that there won't be buyers for home loans but what price those buyers will be willing to pay. The lower the price that new MBS buyers settle on, the higher the rates that consumers will have to pay.

Little Consensus Among Experts
Up until now, the predominant opinion of economists and financial pundits has been that interest rates will rise. The only disagreement has been to what degree and how quickly rates will do so.

On one extreme, David Greenlaw, chief fixed-income economist of Morgan Stanley, expects that rates could climb by more than two points before year end. On the other hand, CNBC has recently paraded people before the camera with the opinion that rates may remain closely unchanged.

Mr. Habib holds fast to his original assertion though that home loan rates are set to rise. "Interest rates for a 30 Year Fixed Rate could rise to 6% by year end and consumers need to be prepared for that." Habib goes on to state that MBS are similar to other fixed income investments that are subject to inflation risk. Inflation erodes the value of bonds and forces rates to rise.

Inflation risk exists not only from the possibility of an improving economy but also increased debt coming from the U.S. Treasury to support stimulus packages and the budget.

One More Thing to Consider
The purchasing of MBS by the Fed does not occur immediately after a loan closes. Several weeks must pass after the consumers close on their mortgages before they can actually be delivered, packaged and sold to investors like the Fed.

Because of this, many people anticipate that any potential move higher in rates may not occur until April 1st, after the conclusion of the Fed program.

Habib states that this is not the case for many reasons. Rates have already started to move higher over the past few months, and will likely increase a bit more after the Fed stops buying - not just because the largest buyer is absent, but because speculators will be less confident and unload their positions ahead of the deadline. This gradual increase combined with what we've already seen will be meaningful, and as the year progresses, rates will oscillate higher still. It's like walking up a long staircase...you don't realize how high up you are, until you turn around and look down.

What Now?
If you are a candidate for purchasing a new home or refinancing your mortgage, call your mortgage professional today to lock in your best opportunity for a low rate. In addition to the potential for rates to rise, there are also other programs in place...that are scheduled to end in June...to assist people who otherwise could not refinance due to loan to value.

For prospective home buyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

For those who qualify for the tax credit for first-time and repeat home buyers, another deadline also exists. The last day to obtain a contract to qualify is April 30th and closing must occur by the end of June. Miss either deadline and it could cost you up to $6,500 or $8,000, depending on eligibility.

No matter which way you look at it, waiting could cost you. Mortgage rates are still near the best levels we have ever seen. If you are in the position to move forward with obtaining a mortgage, the best decision would be to act sooner rather than later.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts

Office: (972) 661-5136 17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

How to Buy a Fixer-Upper

Richard Woodward (Envoy Mortgage) — Mon, 01 Mar 2010 14:49:09 -0800

How to buy a Fixer-Upper

FHA 203(k) For Purchases

Real estate agents and home buyers are scrambling to adjust to today’s real estate market which is filled with foreclosed homes that have suffered from disrepair and neglect. Many banks that own these foreclosed properties are unwilling to repair them. As a result, many foreclosed properties do not qualify for traditional loan programs. FHA’s 203(k) loan program provides the funds necessary for both the purchase AND the renovation of a home.

Loan Program Advantages:

Streamline Program, Limited Repairs Up to $35,000
Low Down Payment
Credit Scores as Low as 620
Competitive Fixed Rate Terms
1-4 Owner Occupied Homes - Maximum Loans up to $281,000

One of the biggest misconceptions about a 203(k) loan is that obtaining it is a hard and time consuming process. Although there is a bit more involved in completing a streamline 203(k) purchase, most loans can still be closed within 30-60 days from start to finish. It is preferred that a 203(k) loan be written on a 60 day contract; however, 45 days is generally a sufficient time to close these loans.

Have Questions? Call Me!

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts Office: (972) 661-5136

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - http://www.Envoy-Mtg.com

USDA Program Makes "Rural" Homes More Accessible

Richard Woodward (Envoy Mortgage) — Wed, 17 Feb 2010 13:13:48 -0800

USDA Program Makes "Rural" Homes More Accessible

One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of "no-money-down programs" evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live "in the country" to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term "rural" really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city!

There are several benefits of the USDA loan program besides no money down. The program also does not require private mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it's important to note that you don't have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you're seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit is $70,750. In households where 5-8 people reside, the income limitation is $93,400. These income limitations are guidelines and, in some cases, may be exceeded.

To find out more about USDA loans, give us a call or click here. We can have an answer as to whether you qualify for this program in just a few minutes.

Richard Woodward
Banker / Senior Manager
Envoy Mortgage
Phone: 972-661-5136
Fax: 972-314-9647
Rwoodward@Envoymtg.com
www.Envoy-Mtg.com

17311 Dallas Parkway Ste, 173 Dallas, Texas 75248

Time is Running Out for Significant savings

Richard Woodward (Envoy Mortgage) — Fri, 05 Feb 2010 10:08:19 -0800

The Clock is Ticking!
Time is Running Out for Significant Savings!
Attention home buyers! Waiting to buy a home could cost you nearly $20,000 or more over a seven-year period if you time your purchase incorrectly. While the actual impact will vary depending on purchase price, the impact will certainly be significant because of stimulus programs scheduled to end in the coming months.

Economic turmoil and the real estate bubble have created significant opportunity for all those seeking to capitalize on the situation at hand. YOU Magazine will address the real estate purchase market and what people interested in both buying and selling a home need to know this month to take advantage of the current market conditions.

We also consulted with Michael J. Maher of "The Maher Team," one of the busiest agents in the country who sold 216 homes in 2009. With a degree in mathematics, he knows his numbers and the impact on both buyers and sellers.

As little as a few years ago, it would have almost been incomprehensible to expect that actions from Washington would impact decisions involving the purchase and financing of real estate. Well, that was then and this is now and the decisions people make or don't make stand to impact wallets across the country.

Cost for FHA Loans are increasing so now is the time to save with rates in the mid to upper fours and conventional loans under five too. Purchase or refinance now to save, get a free mortgage analysis now.
Keep Reading »

Richard Woodward
Banker / Senior Manager
Envoy Mortgage
Phone: 972-661-5136
Rwoodward@Envoymtg.com
www.EnvoyMortgage.US

Those Who Wait Will Pay Thousands More This Spring

Richard Woodward (Envoy Mortgage) — Fri, 29 Jan 2010 11:47:21 -0800

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead - submit all FHA mortgage applications by the last week of March.

First Time Buyers and Step Up Buyers are still eligible for up to $8000 and $6500 Federal Tax Credit if under contract by April 30th. Click Here to read the FAQ's.

If I can answer any questions you may have about how these changes could impact you, call me. I appreciate your business.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts

Office: (972) 661-5136 17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.US

Lenders and Realtors need to work together to help Buyers understand the new GFE

Richard Woodward (Envoy Mortgage) — Thu, 28 Jan 2010 16:52:05 -0800

Now more than ever a good working relationship is essential. An Open Letter to Texas Realtors Recent guidelines from Washington have forced a change to the way that loan originators will disclose closing costs for all homebuyers. The purpose of the new Good Faith Estimate is to level the playing field for borrowers comparing loans to be able to make apples to apples comparisons for loan scenarios. In essence, HUD is working to bring all lenders up to the same standard of excellence in reporting closing costs that I have always adhered to, estimating realistic fees that a buyer should expect to pay at closing with no last minute surprises.What are the important facts you should be aware of in having conversations with homebuyers? Below are some important points to know:

All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.
In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower's ease of comparison to other loan programs.
Estimates for fees from government recording charges and third party settlement providers we suggest are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.
Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner's insurance, and initial deposits for an escrow account.
Owners title policy must be included on the GFE as a borrower cost, regardless of who is paying for it. Work with the lender to explain to the buyer that even if it is disclosed as a cost, the purchase contract states who is responsible. Therefore, the Good Faith Estimate of cost will appear very high.
There is no cash to close estimate and there is no total payment shown on the GFE.
Lenders are prohibited from collecting income and asset verification from the borrower prior to issuing a good faith estimate unless the borrower specifically requests a "Credit Only" approval.

As always, I will strive to provide my clients with an accurate estimate of closing costs and funds to close. I understand that by referring me, I am a reflection of you and your team and my goal is not only to create the best experience but also to ensure additional referrals.

We can help you get more buyer leads. Click here to start

Richard Woodward Banker / Senior Branch Manager When Trusted Advice Counts Envoy Mortgage Office: (972) 661-5136 17311 Dallas Parkway Suite 173 Dallas, TX 75248 Visit Us Online - www.EnvoyMortgage.US

FHA Announces Big Changes to Existing Programs

Richard Woodward (Envoy Mortgage) — Wed, 20 Jan 2010 15:54:59 -0800

Today FHA announced that it would make sweeping changes to the current FHA mortgage program in an attempt to shore up it's beleaguered balance sheet. As many existing FHA borrowers default on their home loans the move is necessary to ensure the program stays solvent.

The biggest impact will be the increase in the up front mortgage insurance required. FHA will raise the up-front Mortgage Insurance Premium, paid by borrowers, from 1.75 percent to 2.25 percent as well as request legislative authority to increase the maximum annual MIP that the FHA can charge. This is the second time in two years that it has raised the premium.

In addition, in order for new borrowers to qualify for the 3.5 percent down payment program, they will now be required to have a minimum FICO score of 580. Borrowers with a lower score will be required to put down at least 10 percent.

The FHA will also reduce allowable seller concessions, or how much the seller can help the buyer, from 6 percent to 3 percent. The change will give borrowers a greater financial stake in their home purchases.

Commissioner Stevens, with the FHA, said he wanted borrowers to have more "skin in the game," and this is clearly a means to that end.

As of today, the date that these changes will take place has not been announced. I would encourage my Realtor Partners to inform any prospects they may be working with to consider a move now if they have little cash for down payments and closing cost.

As a direct endorsed lender, I would be happy to assist any potential buyers with the best possible financing terms.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.US

Daily Rate Lock Advisory for 1/13/10 Texas

Richard Woodward (Envoy Mortgage) — Wed, 13 Jan 2010 14:03:35 -0800

Dallas Texas mortgage rates still holding in the high 4's and low 5's but good news about the end of the recession from the Federal Reserves office means bad news for mortgage bonds. Rate could start a slow steady rise. Visit www.EnvoyMortgage.us for a quick rate quote.

Wednesday's bond market has opened in negative territory as investors prepare for today's auction. The stock markets are in positive ground with the Dow up 28 points and the Nasdaq up 6 points. The bond market is currently down 8/32, but we likely will see little change in this morning's mortgage rates due to strength late yesterday.

Today's only relevant economic news will come from the Federal Reserve this afternoon when they post their Beige Book report. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. Since the Fed relies heavily on it during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any surprises. It will be released at 2:00 PM ET, so any reaction to its results will come later today.

Also on tap today is the 10-year Treasury Note auction. If there is a strong demand for them during the sal e, we should see the bond market move higher during afternoon trading. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would result in upward revisions to mortgage rates. We will repeat this scenario tomorrow for the 30-year Bond auction.

Tomorrow morning brings us the release of December's Retail Sales data. This is one of the more important reports we see each month it measures consumer spending by tracking sales at retail establishments in the U.S. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely. Current forecasts are calling for an increase in sales of approximately 0.5%. A smaller than expected increase would be good news for bonds and mortgage rates tomorrow.

The Labor Department will post last week's unemployment figures tomorrow morning also. T hey are expected to show that 436,000 new claims for benefits were filed last week, but I doubt this data will cause much movement in mortgage rates. It tracks only a week's worth of new claims, so its impact on the markets is usually minimal.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2010

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.US

How To: Get Buyers by Using Your Listings In 3 Easy Steps

Richard Woodward (Envoy Mortgage) — Mon, 11 Jan 2010 12:27:17 -0800

How To: Get Buyers by Using Your Listings In 3 Easy Steps

Set Up Your Single Property Web Site - With Call Capture Text Messaging
- Use the Photos and Virtual Tour from your MLS listing and create a dynamic search-able web site that will be seen by potential buyers. It's not enough to JUST put your listing on the MLS and HOPE that another agent sells your listing for you, you have to be proactive. Approach this AS IF your listing IS NOT on the MLS and you have to physical get it out there. The only way to effectively do this is with the Internet. Go to www.Envoy-Mtg.com and click on the REALTOR PARTNER tab, it will explain how this all works or click here.
Post To Craig's List, BackPage and 18 other top sites.
- This might sound like an absolute NIGHTMARE and for most people it is! However with the above sights created you can post to CL in under 30 seconds per listing, if you have 10 listings, you spent a total of 3 minutes posting them all with a nice looking web site that will get seen. Again go to www.Envoy-Mtg.com click on the REALTOR PARTNER tab and it will explain for you.
Social Media Wave
- This is the LAST and EASIEST step. On the Single Property Web Site that you made for each of your listings there is a feature to Post to all the most popular Social Media sites; Facebook, My Space, Linkedin, Twitter etc... Then ask your "Friends" to share with their groups of friends etc, and VOILA you hit thousands of people all trying to sell your listing for you.

Now you as you ask yourself, "CAN I REALLY DO THIS?" because your stuck in the era of Print Media, and Yard Signs, what you really need to ask yourself is "CAN I NOT DO THIS AND SURVIVE?". There are those who will contest that their way is the best way "Belly to Belly Marketing" and I can tell you this, there is NOT enough time in the day to hit as many people as this system does in ONE HOUR let alone a weeks time!

Think about this, you're going into your next listing appointment armed to the teeth, and you know it, you know that each listing you get means ONE BUYER a month from this system. You know that once you roll out all your system features and benefits that the seller will be BEGGING you to list their property! Now is that a little different business model???

I look forward to answering your questions and working with you on this quest to greatness, unfortunately I cannot work with everyone as I am only one human being BUT because of my system automation I can work with quite a few. To see if this is a fit for us to work together, email me your information and best time for us to chat for a few minutes and at the end of our conversation we will both know whether it is a fit or not. I do suggest one thing, as the famous writer Mark Twain said "I never missed an opportunity until it ceased to be one." that you not walk BUT RUN to this chance to change the face of your business forever.

A Few Requirements to Think About:

Must be easy to work with, have a GREAT attitude and a magnetic personality
- "There are enough people to do business my way to not have to do business with the ones that won't." Brian Tracy
Full Time Or Part Time - No matter
Have Listings to Advertise, or ACCESS to Listings to advertise
- "ACCESS" means that someone in your office or on your team will allow you to market their listings for them in order to get buyers.
New Agent or Seasoned Agent - No Matter
- If you're willing to learn something new, it doesn't matter if you've been in the business 12 minutes or 12 years. I just can't work with folks with Bad Attitudes, we don't get a long very well anyways :)
Must be located in Texas
MUST BE WILLING TO WORK TOGETHER
- Obviously (unless you're brand new) you have a lender you've dealt with in the past, what you need to ask yourself, is one simple thing "What does my lender bring to the table, knife and a fork, or meat and potatoes?" I bring the meat and potatoes. I don't force anything to happen, it just naturally does as a by product of working together.
Last Thing - This does not cost you anything, I own the service whether you're a partner or not, so if you ask me "How much does this cost?" I will tell you that a partnership will not work because you're already going into this with a negative connotation. It only cost you EFFORT and if you're not willing to spend that, I am not willing to work with you.

To much deserved success!

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

Daily Rate Lock Advisory

Richard Woodward (Envoy Mortgage) — Mon, 11 Jan 2010 11:57:49 -0800

Monday's bond market has opened in positive territory following a calm open in stocks. The major stock indexes are showing minor losses with the Dow down 5 points and the Nasdaq down 10 points. The bond market is currently up 6/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point over Friday's morning rates.

There is no relevant economic news scheduled for release today. It is the only day of the week that does not have some type of data or relevant events scheduled. The rest of the week brings us the release of six pieces of economic data to digest along with two important Treasury auctions. The most important data is being released the latter part of the week, so we will likely see the most movement in rates then.

The first economic data is also the week's least important release. November's Goods and Services Trade Balance will be posted early tomorrow morning. It measures the size of the U.S . trade deficit and is expected to show a $34.5 billion deficit. This data usually does not directly affect mortgage rates, but it does influence the value of the U.S. dollar versus other currencies. A stronger dollar makes U.S. securities more attractive to international investors because they are worth more when sold and converted to the investor's domestic currency. But unless we see a significant variance from forecasts, I don't believe this data will lead to a change in mortgage rates tomorrow.

The Federal Reserve will post its Fed Beige Book report at 2:00 PM ET Wednesday. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. Since the Fed relies heavily on it during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any surprises.

The two important Treasury auctions come Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The 10-year sale is the more important one as it will give us an indication for demand of mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading the days of the auctions. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would result in upward revisions to mortgage rates.

Overall, Thursday or Friday will probably end up being the most important day of the week. The single most important report is Friday's CPI, but Thursday's Retail Sales report is a close second. Both are considered to be of high importance and can heavily influence the markets. Therefore, I strongly recommend maintaining contact with your mortgage professional this week, especially the latter part if still floating an in terest rate.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2010

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.US

What's Ahead for Home Loans in 2010 for Dallas Texas

Richard Woodward (Envoy Mortgage) — Fri, 08 Jan 2010 11:56:33 -0800

The Times They Are a Changing
What's Ahead for Home Loans in 2010 for Dallas Texas

This year could bring significant changes from 2009 for those seeking home loans. Over the last year, home prices fell to 2003 and earlier levels in many parts of the country. In addition, home loan rates declined to the lowest levels on record and this combination led to the highest home affordability levels ever recorded. Here's a recap of what happened in 2009 and what you need to know for the year ahead.

Would You Like a Sweetener with that Rate?

Interest rates throughout 2009 were artificially low. That's because in late 2008, the Federal Reserve put into place a program for purchasing Mortgage Backed Securities with the intention of lowering mortgage rates. They were successful with reported rates by Freddie Mac falling below 5.00% several times in 2009. At the time of this posting I still have FHA rates below 5%

Without this program mortgage rates would have been at least 1.00% higher, and potentially even higher than that. Did you know that a change of 1% in a home loan rate impacts the amount someone can borrow by roughly 10%? For example, if rates are in the low 5.00% range today and they shoot up to the low 6.00% range, $250,000 home buyers may become $225,000 home buyers.

Look for rates to return to 2008 and previous levels as the Fed ends the program on March 31, 2010. While rates will not immediately increase to 6.00% or higher, know that without additional intervention, rising rates are inevitable. Expect that under worst case scenarios, rates could dance around the 7.00% range.

Show Me Your Docs

Contrary to what you may see or hear in the media, money is widely available for people who want to finance their homes. There is one caveat, though. People need to be able to demonstrate that they qualify for the loan amount they are pursuing and that they have been willing to repay debt they have accepted in the past.

To obtain financing today, a borrower needs to supply the lender with all documentation pertaining to their income, liquid assets and potentially items related to their credit reporting. The best preparation path to follow is to gather most recent paystubs for 30 days of earnings, two years W-2s with complete tax returns and three months statements, all pages, for any liquid assets used for qualifying.

The free wheeling days of borrowing whatever people thought they could repay are gone. While some exceptions may be granted for strong compensating factors, total debt to income level will be capped at 45%.

If you haven't checked out your credit reports recently, now is a good time to do so if you plan on seeking financing in the next 12 months. You can pull up your reports for free at AnnualCreditReport.com Examine your reports for any inaccuracies and work to get them corrected prior to seeking financing. You can also seek assistance from your mortgage professional.

Have We Hit a Bottom in Housing?

If you simply look at the data that is reported, one could surmise that the bottom in U.S. home prices was hit in 2009. One nationally respected index for home price reporting, the S&P/Case-Shiller Home Price Indices, indicates that home prices turned for the better around mid-year in 2009.

While all markets are different and some may continue to show signs of weakness, most communities have demonstrated strength and should continue to do so. However, some potential headwinds do exist for the second and third quarter of 2010, following the expressed expiration dates of several stimulus programs: The Mortgage Backed Securities purchase program and home buyer tax credits, both of which are directed at the housing and the mortgage markets.

Foreclosures and short sales will also continue to influence many of the hardest hit markets as unemployment and resetting adjustable rate mortgages weigh on distressed homeowners. The real estate market in Dallas Texas and most of the Dallas Fort Worth market does appear to be stabilizing if not improving.

Dates to Remember

Two dates lie on the horizon that will impact interest rates and potentially home prices. The first program scheduled to end is the Federal Reserve's program for purchasing Mortgage Backed Securities. Announced in November of 2008, the Fed began purchasing $1.25 trillion in mortgage bonds in 2009 which will culminate at the end of March 2010. As the intention and result of this program was to lower rates, mortgage rates will likely begin to rise after the program concludes.

In addition, April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time home buyers and up to $6,500 for repeat home buyers. The credit can be claimed only on contracts that close by June 30, 2010. For more information on the tax credit visit www.envoymortgage.us

Act Now...Not Later

While no one knows for certain what the future holds, one thing does appear clear. Home loan rates and home prices both will be higher in the future. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

If you would like additional information on how these events may impact you, contact me www.envoymortgage.us/forms/askAnExpert.html here are just call me.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.US

The New Good Faith Estimate

Richard Woodward (Envoy Mortgage) — Wed, 06 Jan 2010 17:49:43 -0800

Effective January 1, 2010 HUD implemented the new Good Faith Estimate (GFE) for both Refinance & Purchase transactions of FHA & Conventional loans. HUD has been working on this revision for over 4 years and finally pushed it through last year. The goal was greater clarity and transparency for borrowers. I do not want to get into the details of every single field of this 3 page document or I could write my own book. I would rather write about what I like about the New Good Faith Estimate form and what I don't like.

Improvements I like:

All origination charges lumped together- This includes what was loosely referred to as the origination "point", underwriting, processing, flood cert, credit report, appraisal, doc preparation, wire transfer and any other fee that is required by the lender to originate the loan. This does make it easier for the borrower to shop rates and fees.
It clearly explains if the loan will have a prepayment penalty, if the payments can change, if the loan balance can increase, or if the loan has a balloon payment.
Tradeoff Table, this is a great idea but I promise you, most lenders will not use this. - Gives 3 different scenarios and compares the the loan quoted in the GFE to the same loan with lower closing cost but higher rate and the same loan with higher rate but lower closing cost. This gives the borrower the ability to pick the best option based on his/her situation.
Gives a snapshot of loan with important dates - Under "Summary of the loan" section on page 1, the borrower can get answers to most of the questions regarding the new loan.
Easier comparison of loan offers - The new GFE guides the borrowers on the factors against which to shop and compare loan offers. Surprisingly however, closing cost is not mentioned as one of the factors.

Things I don't like:

Cash to Close missing - There is no place on the new form that tells the borrower what will be the cash required to close the transaction.
The full payment with taxes and insurance is not on the Good Faith Estimate - This will confuse most borrowers and make them think the total monthly payment is much lower.
Charges typically paid by the buyer have to be listed, even if the seller pays them - For example the owners title policy: if the lender quotes too low, then they are responsible to reimburse the borrower for the overage that exceeds 10% of the original quote. Don't you think most lenders will quote very high to make sure they don't pay for it? This will add to the disclosed estimated closing cost even though the borrower won't be actually be paying for it. This will confuse borrowers and make them believe the amount required to close is much higher and potentially make some borrowers believe a purchase is out of their reach.
At least 1 provider per service required even if the lender permits borrower to shop - For some service providers lender may allow borrower to shop on their own. But even then, lenders are supposed to provide the borrowers with name of at least one service provider.
No signature - There is no signature required from the borrower on the form. In case of dispute, it will be impossible to prove which GFE did the borrower actually get at the beginning of the transaction.
3 Pages from 1 - Even though HUD claims to make everything simpler and easier for the borrowers to understand, the new GFE is 3 page long compared to the old one which was 1 page.
HUD prohibits Lenders from requesting income and asset documentation prior to issuing a Good Faith Estimate - All I can say is WOW! Most borrower believe that when they receive a good faith estimate that they are approved. Many will find themselves declined after the lender is able to review the borrowers full qualification. Just seems wrong to me.

Change is hard, and in this case, a little delusional. In my 14 years of originating mortgages in the Dallas/Fort Worth market I have seen many changes, let's hope this one is a good one for everyone. I would be happy to answer any questions regarding the 2010 Good Faith Estimate. Feel free to call me.

Richard Woodward
Banker / Senior Branch Manager
When Trusted Advice Counts
Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.EnvoyMortgage.us