Mortgages in Wake County NC

Cary Ranked One of the Safest Cities (Again)

Roland Carrillo, PhD - Mortgage Consultant — Mon, 26 Jan 2009 21:22:40 -0600

Cary once again makes the news for being one of the safest cities in the nation. The Town of Cary has been named the 3^rd safest with populations between 100,000 and 499,999 according to CQ Press in their annual crime rankings. In 2007, Cary was ranked the 4^th safest in the same category.

Once again Cary is also the highest-ranked municipality in North Carolina and the Southeastern Region. The Town of Cary has held this distinction for ten years in a row now. Amongst all the areas ranked, Cary was the 15^th safest overall in the report.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Our branch specializes in affordable lending options including FHA / VA and the Community Heros program. As both a banker and a broker, you have access to a full menu of products including all Fannie Mae and Freddie Mac Conforming loans, Reverse, Jumbo and Commercial financing on a variety of property types. We are located in Cary, North Carolina and are within easy reach of the entire RTP Area including Wake, Durham and Orange Counties.

2009 Home Equity Conversion Mortgage (HECM) Limits

Roland Carrillo, PhD - Mortgage Consultant — Wed, 21 Jan 2009 09:43:22 -0600

The Housing and Economic Recovery Act of 2008 tied the national mortgage limit for FHA-insured reverse mortgages to the national conforming loan limit. The FHA product known as the Home Equity Conversion Mortgage (HECM) will therefore have a national mortgage limit of $417,000. This is the first time that a single limit applies to these mortgages nationwide.

As in previous years the special exception areas of Alaska, Hawaii, Guam and the Virgin Islands have higher loan limits. Starting this month, counties in those areas may have loan limits of 115% of area median prices. Where that amount is above $417,000, up to a ceiling of $625,500.

Reverse mortgages allow homeowners age 62 and older to borrow against the value of their home without selling it. Homeowners can take a lump-sum payment, monthly payments or a line of credit. No repayment is required as long as a homeowner lives in the home. The reverse mortgage is repaid, with interest, when a homeowner dies or sells the home.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

FHA Loans Still a Great Option

Roland Carrillo, PhD - Mortgage Consultant — Mon, 19 Jan 2009 23:40:14 -0600

FHA loans have been around for a long time, but during the current market turmoil it is proving to be an increasingly better option for home buyers and owners looking to refinance. In fact, with some of the recent loan requirement modifications, these affordable loans may make sense now more than ever.

6 reasons why an FHA loan is ideal for today's home buyer

Low Down Payment: FHA loans require as little as a 3.5% down payment. The entire amount may come from a family member, employer or charitable organization.
Easier to Qualify: Since FHA provides the mortgage insurance for FHA loans; there are less restrictive guidelines than may be available for conventional loans.
Less than Perfect Credit Qualification: Borrowers with credit problems, such as bankruptcy, have an easier time qualifying for an FHA loan than a conventional loan.
No Income Caps: There are no maximum income requirements or geographic restriction for FHA loans.
Financed Mortgage Insurance: Because the FHA charges mortgage insurance up-front (UFMIP); borrowers are able to finance this into the cost of their loan. There is still a monthly portion, but it is generally lower cost than private mortgage insurance.
No Prepayment Penalty: With an FHA loan, borrowers may prepay their loan without the worry of a costly prepayment penalty.

Although many lenders have just started working with government programs, VanDyk Mortgage is a Full Eagle Direct Endorsement FHA Lender with over 20 years of experience with the FHA, VA and USDA programs. To find out more about FHA loan options, contact us now.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Lenders Reluctance to Use “Hope for Homeowners” Program Leads to Changes

Roland Carrillo, PhD - Mortgage Consultant — Mon, 19 Jan 2009 23:35:59 -0600

A few months ago while testifying before Congress, lenders praised the government's foreclosure prevention program but indicated that they preferred to use their own modification programs. As part of the housing rescue bill passed by Congress in July (not to be confused with the bailout bill passed in October), homeowners in trouble have been able to refinance their mortgages with the backing of the Federal Housing Authority (FHA) starting October 1^st.

However, after 8 weeks fewer than 100 applications have been made for the Hope for Homeowners program. A main reason lender's are not enthusiastic is that the program calls for them to reduce loan balances to 90% of a home's current market value. In addition, the lender has to pay an upfront mortgage insurance fee of 3% of the loan balance to the FHA.

A Senior Vice President for JP Morgan Chase Home Lending, testified about the drawbacks of Hope for Homeowners. "Under the Program, [investors in the loans] will take a loss when the principal balance is written down," she testified, adding that they won't have a chance to make up that loss if home prices recover. Sheehan added that Chase can help many borrowers' by reducing their interest rates, thereby making their monthly payments more affordable.

Other lenders such as Bank of America, Wells Fargo and IndyMac (which was taken over by the FDIC in July) agreed and stated that they prefer to use the FHA program as just one of several options. When directly asked whether the program would be considered a last resort, all the members of the panel agreed that it would be.

The bank executives said that their responsibility to maximize profits for the investors would probably limit the number of cases in which the Hope for Homeowners program would be used. All of the lenders also stressed that their efforts with loan modification programs and the increasing number of workouts that they have been doing.

Because of this disappointing response, the US Housing and Urban Development Secretary Preston announced that major changes were being made to help more home borrowers. The major change is increasing the loan to value to 96.5% from the previous 90% for some situations. This means that lenders will not have to write down the balances as much and make them more likely to participate in the program. Other changes include changing the way 2^nd mortgage holders are paid off, making the process simpler and again increasing the chances that lenders will assist home owners.

Together, these changes will hopefully help more homeowners avoid foreclosure and offer another solution if a loan modification alone will not work. Despite these relaxed terms, the FHA will still use the same standards to ensure that home owners will have enough income and the ability to repay the loans. Although its mission is to help provide affordable financing, the FHA needs to make sure that it does so in a responsible way that is sustainable.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

FHA Mortgage Limits for 2009

Roland Carrillo, PhD - Mortgage Consultant — Sun, 14 Dec 2008 13:32:55 -0600

Secretary Preston of the US Department of Housing and Urban Development announced the new Federal Housing Administration (FHA) loan limits for 2009. Beginning January 1^st FHA will insure single-family home mortgages up to $271,050 in all areas and up to $625,500 in high cost areas.

Because of the 2008 Stimulus Package, the maximum FHA loan limit was temporarily raised to $729,750 through December 31, 2008. However, the new maximum of $625,500 is still a significant increase over the $362,790 limit in effect prior to the Stimulus Package. Secretary Preston stated "these new loan limits will ensure FHA can to continue help struggling homeowners refinance into safe, affordable government-insured loans, and allow many first-time buyers take advantage of today's buyers market".

For conforming mortgages, the Housing and Economic Recovery Act links the maximum loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009 the national conforming limit will remain at the current level of $417,000.

Unfortunately for those in the Triangle the news is not so good. After January 1^st FHA limits in Wake County will actually decrease from the current $295,000 to $271,050. The same is true for Johnston, Franklin and Harnett County. For Orange and Durham County there will be no change, with loan limits remaining at $334,650.

Another important item to remember is that FHA will be increasing the minimum borrower contribution on January 1^st. Currently borrowers needed to put in 3% of the sales price or appraised value (whichever is lower), but in 2009 this will increase to 3.5%. So for anyone interested in buying under the current loan amount/down payment requirements, time is short to submit an application!

One final piece of good news... FHA and conforming interest rates are again at historic lows. They now rival the interest rates available back in 2004-2006, so if you can qualify for one of these great programs now is the time to look into buying or refinancing.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Holiday Gift for Some Distressed Homeowners

Roland Carrillo, PhD - Mortgage Consultant — Mon, 01 Dec 2008 18:48:41 -0600

Some homeowners fearing a foreclosure notice during the holidays are getting an early gift from Fannie Mae and Freddie Mac. The two government sponsored enterprises (GSEs) announced they will suspend evictions and foreclosures on over 15,000 properties until January 9^th.

One reason for the delay is because Fannie and Freddie, now under government control, is implementing a new loan modification program. In this program, the two mortgage companies will modify the terms on possibly hundreds of thousands of mortgages that are >90 days past due. Although the two GSEs hold a small percentage of the delinquent loans in the US, government officials hope that other lenders and servicers will follow the example.

"We encourage other servicers of non-GSE mortgages to participate in the streamlined modification program to bolster our collective efforts to stem the foreclosure crisis," Fannie Mae President and Chief Executive Herb Allison said in a statement. Until recently, troubled loans were handled on a case by case basis, a costly and time-consuming process. But as home prices continue to decline the cost of foreclosure to lenders is climbing.

For example, Freddie Mac is current trying to find buyers for over 28,000 foreclosed homes as of the last quarter, up from under 12,000 a year ago. Furthermore, the gross proceeds from the sale of fore closed homes were nearly 30% less than the unpaid balance of loan in the third quarter. This 30% loss doesn't even take into account other costs such as repairs, real estate agent commissions and closing fees.

The situation at Fannie Mae is equally bleak, with an inventor of more than 67,000 single family homes at the end of the third quarter. This is a drastic increase from the under 34,000 foreclosed homes they had at the end of 2007. Net proceeds at Fannie Mae also fell to an average of 70% of the loan balance from 78% in 2007.

The temporary suspension in foreclosure will apply to 10,000 Fannie Mae held loans and 6,000 Freddie Mac owned mortgages. Properties will range from single family to four-unit properties that were set to sell in foreclosure between the end of November and January 9^th of 2009. At the very least it will help homeowners by giving them a place to stay over the holidays and hopefully longer if the loan modification program works.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Bank Bailout or Economic Rescue?

Roland Carrillo, PhD - Mortgage Consultant — Wed, 12 Nov 2008 16:55:37 -0600

It has been a month since the "bank bailout package" was passed by Congress. The bill underwent a difficult road to passage, with the first draft rejected in the House of Representative for fear it would be a waste of money with little effect. To overcome these objections, inducements (money to fund projects key legislators wanted) and tax breaks were added to the bill. Unfortunately, it seems that these fears may have been well founded and the "economic rescue bill" will not have the desired results.

The original plan by Henry Paulson, the Secretary of the Treasury, was to buy up the delinquent mortgages and assets held by banks. The goal was to increase the banks stability and provide them with money they could lend to consumers and businesses. Even before the bill was passed, this plan was in doubt and now has been completely canceled. Instead Paulson has decided to buy stock in the banks and non-bank institutions that provide credit cards and auto loans so they have fresh capital, also so that they could regain stability and make loans.

Unfortunately, instead of making loans many banks are using the money to pay dividends, but other banks, give executive bonuses or save for emergencies. For example, PNC Financial Services received $7.7 billion from the bailout and immediately spent $5.6 billion of it to buy National City. In fact on the same day Paulson hired the Bank of New York Mellon to run the rescue program, it decided to take $3 billion of the money for itself. Added to the expensive spa retreats AIG paid for (including another one just this week) while receiving tax payer money it seems the bill might not help the economy as much as was hoped.

Lawmakers are protesting these actions, but it should have been expected since the bill gave Paulson unlimited authority and required little supervision. It also contained no restrictions on what the recipients did with the money, although Bush recently requested banks start making loans and using the money for its intended purpose. After the latest news of waste, the Treasury also announced they seek to impose caps on executive compensation and spending at AIG and other companies that receive government funds.

These are positive steps and hopefully a sign that the government is getting on a better track. Whether the this bill ends up a "bailout" of Wall Street and a few executives or a "rescue" of Main Street and the general economy remains to be seen. With a new focus on the economy and new administration there is hope on renewed emphasis on the bailout and other plans to help consumers.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Lending Integrity Seal of Approval

Roland Carrillo, PhD - Mortgage Consultant — Tue, 21 Oct 2008 20:00:19 -0500

With the anxiety in the financial markets recently, I am writing to share some good news. I was recently awarded the Lending Integrity Seal of Approval from the National Association of Mortgage Brokers (NAMB). This means that I have met the association's high standards for ethics, integrity and dedication.

I couldn't buy or receive it just by joining the association; I had to earn it. In fact, I am the first loan officer in the Triangle and one of the very few in North Carolina that has met the strict requirements set by the NAMB. I did so because I understand that the success of my business rests upon a foundation of professionalism, education and service.

To obtain the Lending Integrity Seal of Approval, a mortgage broker or loan officer must:

Possess a current state license or registration
Pass a national criminal background and credit check
Submit three mortgage industry business references
Complete yearly professional education, including ethics training
Pass an examination on federal and state mortgage regulations
Adhere to NAMB's Code of Ethics and Standards of Business Practices
Pledge to abide by NAMB's formal ethics grievance review process

This sets the highest national standard in the mortgage lending industry and I am proud to have earned it. The rigorous validation process assures consumers that they are working with a responsible lending professional and during these challenging times, that is more important than ever.

To read the full press release, visit:

Triangle Business News & Carolina News Wire

To learn more about the Lending Integrity Seal, email me or visit:

www.LendingIntegrity.org

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Fannie Mae and Freddie Mac Cancel Fee Increase

Roland Carrillo, PhD - Mortgage Consultant — Mon, 06 Oct 2008 12:56:22 -0500

After being seized by the federal government last month, Fannie Mae and Freddie Mac are canceling fee increases that were scheduled to go into effect this month. Both companies had announced plans to increase fees on all loans by 0.25%. These increases were planned as the organizations struggled to stabilize their finances over the last year.

Fannie Mae made the announcement last Thursday and Freddie Mac followed soon after. However, Freddie Mac will raise fees for some high risk loan products next year. They will also increase the requirements for low down payment loans, but will keep financing these types of mortgages.

Freddie Mac said the changes would provide "some relief from the challenges in the current market environment". In the last year, both Fannie and Freddie have increased several fees as well as the requirements such as down payments and credit scores borrowers must have. Fannie Mae Chief Executive Herb Allison also stated they are "evaluating all of our risk-management, underwriting guidelines, pricing and costs."

This is great news for consumers that are considering buying or refinancing a home. For example, on a $200,000 home it will save borrowers $500.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Parade of Homes - Wake County

Roland Carrillo, PhD - Mortgage Consultant — Sat, 04 Oct 2008 23:08:14 -0500

Its that time of year again, the Parade of Homes! For three weekends, the 43^rd Annual Parade of Homes will feature 394 new homes throughout Wake County that you can visit for free.

October 4-5, 10-12 & 17-19
12 pm to 5 pm

Tour books with maps can be found at various locations in the Triangle or you can view the homes online to see more information and search by criteria such as price range, city or home features.

The Parade of Homes is brought to you by the Home Builders Association of Raleigh and Wake County. The parade lets you see the latest products, features, decorating and technology at your leisure. Homes are priced from $125,000 to over $3,000,000 and in many different styles and subdivisions. It is a great and fun experience and I enjoy it every year.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Protect Yourself From ID Theft

Roland Carrillo, PhD - Mortgage Consultant — Tue, 30 Sep 2008 00:47:27 -0500

Sorting through credit card offers and other unwanted mail may be frustrating and seem like a waste of time, but think twice about just throwing them in the trash ... unless you don't mind increasing your chances of becoming a victim of identity theft.

Eliminate the Source

The best way to deal with a problem is eliminate the source. So if you didn't have those credit card offers and other unwanted junk-mail coming in you wouldn't have to worry about how to handle them. Guess what? With a quick phone call, letter or online request you can save time and energy, as well as give yourself additional protection against identity theft. Here is some information that will help you eliminate the source of the problem.

•1. Credit Card Offers

The credit bureaus offer a toll-free number that enables you to get out of having card offers mailed to you for either five years...or permanently. Just call 1-888-5-OPTOUT (567-8688). You will be prompted to provide some personal information, including your home telephone number, name, address, and social security number. All information provided is confidential and is used only to process your request. If you ever decide that you want to receive the card offers again, simply phone the same number and you will be added back on the list.

•2. "Junk" Mail

The Direct Marketing Association has a Mail Preference Service that allows you to reduce the amount of commercial advertising mail that you receive at home for five years. There are several ways to have your name added to the "do not mail" list. The quickest and most efficient way is to hit this link: Do Not Mail Website. From the website, you can enter the required information, print the letter, and mail the letter to the address listed below. Or for $5, enter the required information and hit the "register online" button.

Don't want to enter your information online? No problem, just mail a letter that includes a brief paragraph requesting to be excluded from the marketing lists, your name - be sure to list all name variations including, Jr, Sr, etc. - current and previous address, and signature to:

Direct Marketing Association
Mail Preference Service
PO Box 643
Carmel, NY 10512

Important note: You will not stop receiving mailings from organizations that are not registered with the Association's mail preference service, but at least this measure will greatly reduce the amount of advertising mail you receive.

•3. Email

The Direct Marketing Association also has an Email Preference Service that allows you to get out of receiving unsolicited commercial email for five years. Visit Do Not Email Website. Enter up to three email addresses and a confirmation will be sent to each email acknowledging the request. Replying to each email confirmation within 30 days is required by DMA, or the email address will be deleted and the request will not be processed. Unfortunately, this measure will not eliminate most "spam" email, but will at least help to reduce the amount of junk email you may be receiving.

•4. Phone

If you haven't done so yet, get on the National Do Not Call Registry. Protect yourself from annoying telemarketers and phone solicitations by putting your home number on the Do Not Call list via this link: Do Not Call List

Removing your information from the above lists will not only save you a lot of time and frustration, it will also help protect you against identity theft. Foer more tips on protecting yourself from ID theft and improving credit, check out my mortgage blog.

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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

FHA Program Changes

Roland Carrillo, PhD - Mortgage Consultant — Thu, 18 Sep 2008 10:35:31 -0500

With the focus on Fannie Mae and Freddie Mac, many have forgotten that big changes are in store for FHA loans as well. With the passing of HR 3221, the "Housing and Economic Recovery Act" this summer several significant changes were made to the FHA program.

The easiest one to understand (and possibly have the widest effect) is that the buyer contribution requirement was raised from 3% to 3.5%. On a $200,000 home, this means that a buyer will need to come up with an extra $1000 for a total contribution of $7000. This is expected to decrease the risk to FHA and help it weather the current market challenges.

Another important change is that there will be a 1 year moratorium on the new "risk-based pricing" for the FHA's mortgage insurance premium. Just recently on July 14^th FHA had switched from a flat 1.5% percent of the loan amount upfront fee and .5% annual fee to a system of tiers. Those with higher credit and down payments would have a lower fee, while those at higher risk would have higher fees. Because of HR 3221, this is put on hold until October 1^st 2009 and we will revert back to the "one size fits all" model. This was implemented to increase affordability for homeowners and home buyers with lower credit, income and assets.

The most controversial (and possibly the most discussed) change will be the elimination of seller-financed down payment assistance programs (DPA). It is important to point out that DPA from family members, employers, charities, local, state or federal governments will still be accepted. This change only applies to programs in which the owner or builder as the seller was providing the DPA.

The reasons why this DPA program was cancelled is complicated and it is still a highly debated issue. Many studies were performed by HUD and other parties and evidence was shown that it was correlated with an increased risk of fraud and foreclosure (we will review this in another post). HUD had actually attempted to prohibit this program last year, but a court order allowed the program to continue.

What this means is that an ever increasingly popular method to obtain 100% financing will no longer be available. In fact, most lenders stopped accepting applications for loans with this program on September 1^st to allow time for them to be processed. However, this may not be the final word on seller-funded DPA as a new bill, HR 6994 the "FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008" has been introduced to bring it back.

Chairman of the House Financial Services Committee, Barney Frank, reported at that the bill is certain to pass in the House of Representatives and has the approval of the Secretary of HUD. Although the program has its flaws and can be used improperly, the National Association of Mortgage Brokers supports the effort to preserve this program as it helps many low- to moderate-income families obtain homeownership. The program should be regulated and reformed, but during this turbulent time the FHA should be continuing its mission to help provide affordable and secure financing.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Fannie Mae and Freddie Mac - 1 Week Later

Roland Carrillo, PhD - Mortgage Consultant — Sun, 14 Sep 2008 13:58:25 -0500

A week has passed since the government took control of Fannie Mae and Freddie Mac, what has changed?

So far, very little. The CEOs of the two companies were let go (with nice severance packages that are being debated) and replaced with new heads meant to being back some security and clean up the balance sheets. No new regulations, guidelines or loan programs have been announced and no changes have been made to those existing. Plans to implement new guidelines and fees announced in August and taking effect on October 1^st have not been changed.

The question becomes, has this really improved the mortgage, credit and housing markets?

If you look at interest rates alone, the answer by consumers is likely yes. On Monday morning interest rates on 30 year fixed loans dropped approximately .5%. Over the last month when the takeover began to look certain, interest rates have decreased almost .6%. Although by the end of the week rates had increased slightly off their lows, this took the 30 year fixed rate for the highest qualified borrowers below 6% for the first time since early this year.

This decrease in rate means that the monthly principle and interest payment on a $200,000 mortgage will be ~$75 lower than it was a month ago. It could possible result in a small increase in purchases and refinances, helping both buyers that are looking for homes, sellers and those that need to refinance and lower their monthly payment.

The reason for this decrease is renewed confidence in the mortgage backed securities these institutions sell now that the US Treasury is backing them. Under the terms of the bailout the US can loan Fannie Mae and Freddie Mac up to $200 billion and also buy their mortgage backed securities. With increased demand and decreased risks, the interest rates will usually go lower.

As for other measures of the success and the long term effect this will have, that remains to be seen. This may help some, but the credit, mortgage and housing markets still need to return to affordability in many areas and that could take some time. More money, restrictions and changes could still be needed and the outcome on the US economy of this new obligation is still unknown.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Fannie Mae and Freddie Mac Takeover

Roland Carrillo, PhD - Mortgage Consultant — Mon, 08 Sep 2008 02:11:58 -0500

Federal officials announced today that Fannie Mae and Freddie Mac have been placed into "conservatorship" and will be overseen by the Federal Housing Finance Agency. This takeover means that the government will temporarily run Fannie and Freddie until they are able to recover. Both agencies will be open for business Monday, but many changes will occur including in their management. "We examined all options available, and determined that this comprehensive and complementary set of actions best meets our three objectives of market stability, mortgage availability and taxpayer protection," US Treasury Secretary Paulson said.

Fannie and Freddie play a central role in the market for home mortgages by purchasing loans from banks, packaging them into bonds and selling them to investors. Because they attach a guarantee to these securities, they have become the main source of mortgage funds as investors have become more cautious of buying mortgage backed bonds. They have helped stabilize the housing market by continuing to purchase loans, although with increased costs and standards.

Although the media will focus on the government takeover of Fannie Mae and Freddie Mac, several changes were already in the works for conforming loans. Because of large losses in the last year, Fannie Mae had announced it would increase its fees and stop buying certain high risk loans on October 1^st. The new fees include an across-the-board fee on all loans and other fees based on credit scores and down payments. This will of course affect borrowers with lower credit scores and down payments more. The added fees will likely add ~.25% to the interest rates on most conforming loans as banks passed them on to borrowers.

Fannie Mae is also planning to stop purchasing Alt-A loans by the end of the year. Alt-A loans were a category between prime loans and sub-prime loans for borrowers with excellent credit and down payment that could not fully document their income and assets. These loans were intended for self-employed or commissioned employees with hard to document income sources.

The government will of course be cautious and may impose new restrictions on loan programs and fees to ensure that the organizations will survive. The cost of the government intervention to taxpayers is unclear, as it will depend in the way the rescue is structured, how high mortgage default rates get and when the market finally stabilizes. It is likely that it will run into the billions and could take several years to complete. Ending on a positive note, if this move does restore confidence in the mortgage lending it could help to stabilize the market and result in lower interest rates.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Congress Passes Home Mortgage Aid Legislation

Roland Carrillo, PhD - Mortgage Consultant — Wed, 06 Aug 2008 19:32:41 -0500

After several months of negotiations and veto threats by the White House, HR 3221, the "Housing and Economic Recovery Act of 2008" passed Congress and signed by the President last week. The nearly 700-page final bill combined a number of measures to modernize and reform the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA). The bill will assist at-risk homebuyers and stabilize the mortgage market.

Key measures include:

Permanently increase the cap on GSEs (conforming loans) to $625,000 from $417,000
Increase FHA loan limits in high-cost areas to $625,500 from $362,790
Allow the FHA to insure up to $300 billion in 30-year fixed rate loans to help refinance at-risk home owners
Imposes a 12-month moratorium on the newly released "risk-based" mortgage insurance pricing on FHA loans
Bar seller funded down-payment assistance programs on FHA loans and increase the down payment requirement from 3% to 3.5%
Create a "tax refund" of 10% of a home's purchase price (up to a $7,500) to many first-time homebuyers
Authority for the Department of Treasury to provide funds to aid the GSEs over the next 18 months if it becomes necessary
Give states $4 billion in grants to buy and rehab foreclosed properties
Establish a nationwide loan originator licensing and registration system

The new FHA refinance program will help at-risk borrowers in owner-occupied homes refinance into affordable, fixed-rate loans. The current lender must write down the loan balance to 90% of the homes' current value and pay upfront fees to the FHA of 3% of the homes' value. The borrowers must also pay an annual premium to the FHA equal to 1.5% of their new loan balance and to share with the FHA any profit they gain from selling or refinancing. It is estimated that this provision will help ~325,000 borrowers to avoid foreclosure and remain in their homes.

The ban on seller-funded DPA programs (which we will cover in detail at another time) is the result of studies showing an increased incidence of foreclosure in those mortgages. In fact, the FHA claims that a main reason that their reserve fund has fallen is from the improper use of seller-funded DPA program. The FHA in recent years had tried to implement risk-based pricing (charging higher mortgage insurance premiums for lower credit scores and down payment) and to eliminate the DPA program. Both have met with resistance, but it appears that seller-funded DPA programs will now be banned, while the recently imposed (July 14^th) risk-based premiums will be suspended for another year.

Possibly the most controversial provision will allow the Treasury Dept. to provide liquidity to Fannie Mae and Freddie Mac if necessary. This is hoped will reestablish confidence in the GSEs and halt the steep declines in the government supervised but privately owned corporations stock prices. Combined, the GSEs own or back $5.2 trillion in mortgages and are vital to the mortgage industry. The bill allows the Treasury to offer them an unlimited line of credit and to buy their stock during the next 18 months.

One part of the bill receiving little mention in the media but crucial for consumer protection is the new all originator registry. Currently mortgage brokers in many states are required to obtain licensing, with mandated education, testing and background/credit checks. However loan officers at banks, credit unions and direct lenders are not licensed or required to meet these standards. The national system will ensure all mortgage originators are properly trained and screened and provide protection from unethical and criminal participants entering the mortgage industry. Our branch and company supports increased standards to make sure that our customers receive the level of service and value they deserve.

You can read more details and commentary on CNN Money.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

More Raleigh Rankings

Roland Carrillo, PhD - Mortgage Consultant — Wed, 06 Aug 2008 19:02:30 -0500

Raleigh keeps getting positive attention in the news! In addition to the great rankings we noted recently, Raleigh has received several favorable reviews by bizjournals.com.

Raleigh was ranked #1 in "metros offering the best opportunities for young professionals". The study looked at markets that offered the best prospects for people in the 18-34 age range and looked at growth, income levels and education to range the countries 67 largest metros.

Raleigh was also the only city in the top 10 in three categories: population growth, job growth and the percentage of young adults with college degree. It was also noted Raleigh also enjoys a relatively low cost of living which is helpful to those starting their careers. Raleigh was also ranked #8 in the "smartest metros" list. The area is one of only eight metros where at least 40% of adults hold at least a bachelors degree.

Why is this important? According to bizjournals.com studies these factors have a large impact on the economic vitality and prosperity of a region. Hopefully Raleigh and the rest of the Research Triangle Park area will continue to grow and be a great place to live for many years.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Center for Responsible Lending Report on Indymac

Roland Carrillo, PhD - Mortgage Consultant — Mon, 21 Jul 2008 12:34:15 -0500

The Center for Responsible Lending recently released a report titled "IndyMac: What Went Wrong?" analyzing some of the mistakes they, and many others lenders, made in the last few years. This is quite good timing considering the recent closure of IndyMac's mortgage unit and it falling under FDIC protection. In the report, the Center "finds substantial evidence that IndyMac routinely made loans with little regard for their customers' ability to repay the loans". The investigation also found that in the Center's opinion "IndyMac's current problems appear to be largely the legacy of top-down pressures that valued short-term growth over making responsible lending decisions."

This disinterest in learning about clients needs, disregard for the suitability of the recommended financial products and focus on short term "rate/payment" has without a doubt led to many of the problems we now face. Many in the industry became "sales people" or "order takers", quoting rates without offering any disclaimers or burying the risks in the fine print. A true mortgage consultant, like any financial advisor, should focus on the long term stability and financial security of their clients. It is in this way that we not only serve clients interests but ensure the survival and growth of our business.

The Center's report also stated that IndyMac:

• pushed through loans with bogus appraisals and income data that exaggerated borrowers' finances
• worked hand-in-hand with mortgage brokers who misled borrowers about their rates and other loan terms and stuck them with unwarranted fees
• participated or allowed bait and switch, discrimination and falsified paperwork to occur

There are currently several lawsuits against many lenders and brokers claiming that borrowers were deceived by loan officers who promised low rates. Instead, the lawsuits say, the teaser rate evaporated within one or two months to be replaced by much higher interest rates and payments.

Once again, this stresses the importance of working with licensed mortgage professionals. Furthermore, it is essential to research your lender and loan officer, including how much experience, licensing and education they have. After all, anyone can say they have a great rate (they are sales people after all) but not everyone will work diligently and honorably for their clients. There are many great lenders and brokers here on activerain and elsewhere, but consumers need to be careful that they will get the service and value they deserve.

For a full copy of the report, visit the Center for Responsible Lending website or download the report here.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Cary, NC - Again One of the Best Places to Live

Roland Carrillo, PhD - Mortgage Consultant — Mon, 14 Jul 2008 12:26:52 -0500

Money Magazine's annual list of the "100 best small cities to live" has been published for 2008. Again, Cary earned a top place coming in at #16. Cary typically ranks high in the list, so this was not much of a surprise. Statistics where Cary showed strength (compared to the list average) include:

Job growth at 24.50% (average 18.72%)
% with commute >45 min at 7.3% (average 15.7%)
Median home price at $264,000 (average ~$292,000)
Average property taxes at $2528 (average $3886)

Of course Cary also received praise for its low crime rate, as one of the safest cities around. So why didn't Cary rank higher? Cary was below the list average in several categories that had to do with the # of leisure, cultural and educational activities within a 15 mile radius. Local residents know that we have Raleigh, Durham and Chapel Hill nearby with amazing colleges, museums and dining choices... but unfortunately that was not enough to get Cary in the top spots.

At #1 this year was Plymouth, MN. Congratulations to them and to Chapel Hill, NC which also made the top 100 at #65. You can see the full list at the CNN website and see more details on Cary's entry as well.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Cary, NC - One of the Fastest Growing Cities

Roland Carrillo, PhD - Mortgage Consultant — Fri, 11 Jul 2008 18:24:49 -0500

In the new Census Bureau report for the year ended July 1st 2007, Cary made the list of the top 10 fastest growing cities. Cary actually made #5 on the list with a population growth of 7.3%. This puts the estimated population of Cary at 121,796.

While smaller cities top the fastest growing list percentage wise, the Census Bureau also prepares a top 10 list of numerical gainers. This list includes two North Carolina cities, with Charlotte at #9 nd Raleigh at #10. To see who else made the list, you can read more at CNN.

Although growth has many benefits (increase in housing prices, demand for business services, greater tax revenue) it can also burden our natural resources and cause other concerns. Hopefully our area will be able to manage the growth responsibly so that Wake County remains a great place to live.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Raleigh Rankings

Roland Carrillo, PhD - Mortgage Consultant — Fri, 11 Jul 2008 18:18:47 -0500

In recent reports in Forbes, Raleigh ranked high in two measures. First off Raleigh ranked #1 in the "top sellers market" for real estate. This was attributed to the strong local economy and continuing stability in real estate values. Although sales volume has slowed and by most Realtor's accounts we are in a "buyer's market" on a national level, Raleigh is still a good market for homeowners looking to sell.

Raleigh was also selected by Forbes as one of America's top "recession-proof cities" at the #5 spot. Raleigh received this rating because of its stable home prices (median price +4% in the last year) and anticipated growth in several economic sectors (top sectors were professional/business services at +7.4% and education/health at +6%). In the last year all economic sectors, except for the information sector, measured by the US Department of Labor have shown an increase.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Quick Tips to Improve Credit Score

Roland Carrillo, PhD - Mortgage Consultant — Wed, 21 May 2008 16:22:12 -0500

*Pay all accounts on time and make sure you do not go past 30 days late
*Avoid allowing any accounts to go into a collection status

*Never max. out your credit cards
*Keep you balances to <40% of your credit limit on revolving credit
*Establish a history of credit and do not close old accounts

*When shopping for a mortgage or auto loan try to do it within 14 days so that it only counts as 1 inquiry

*Don't apply for a lot of new credit at one time
*Don't think that if you pay for everything in cash and don't have any credit that this is good for you

*Be responsible using credit and don't over extend yourself

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Downtown Raleigh Home Tour

Roland Carrillo, PhD - Mortgage Consultant — Wed, 14 May 2008 14:54:11 -0500

This weekend, the Raleigh Department of City Planning is proud to host the 4th Annual Downtown Raleigh Home Tour. This self-guided tour is a great opportunity to experience downtown living and the variety of housing options in downtown Raleigh.

Saturday May 17, 2008 - 11 am to 5 pm

The public can tour nearly 20single-family homes, apartments, luxury condominiums and historic properties. There will also be information on residential projects planned or under construction.

Tickets are $10 each and can be purchased in advance or on the day of the event at the Raleigh Urban Design Center at 133 Fayetteville Street. Children 12 and under are admitted free.

For more information visit www.raleighdowntownliving.com

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Casa Lucca @ Hidden Lake

Roland Carrillo, PhD - Mortgage Consultant — Wed, 14 May 2008 14:37:25 -0500

One of the most impressive homes and communities I had the opportunity to visit in the Green Tour of Homes was "Casa Lucca" by builder Rex Bost (www.bosthomes.com) at Hidden Lake (www.hiddenlake-crescent.com) in Youngsville.

Casa Lucca: An incredible estate built in a Tuscan Villa style. The home had a lovely entryway with courtyard and a lake front lot. The most unique rooms included a third floor observation tower, dine-in wine cellar (subterranean with no energy required to cool) and gym/guest room accessed through a 2^nd story breezeway. The large master bedroom had an impressive bathroom with steam shower. There were also 3 bedrooms and a media room on the second floor and plenty of entertaining spaces both indoor and outdoors.

The home was large and perfect for entertaining yet retained warmth and charm with rich hardwood floors and detailed craftsmanship. Green features included spray foam insulation, solar hot water heater, energy efficient windows, dual flush toilers, rainwater harvesting system, energy star appliances and salvaged wood beams and bricks among many more. This home truly shows how green living can be beautiful and luxurious yet conserve energy and natural resources.

For more photos and information on this home visit the builders website about Casa Lucca.

Hidden Lake: Located around a 75-acre private spring fed lake, this community will have just 124 homesites on almost 600 acres. The homesites range from 1 to 6 acres and all are either surrounded by forests, meadows or have lake views.

In partnership with Audubon International, the community has been developed as a model of sustainable development with green homes and a respect for the land and wildlife around it. There are over four miles of paved and soft surface trails, 200 acres of green space including a 100 acre preserve, a fishing pier and canoes/kayaks for residents to use. The community also has a boat house and lakeside pavilion as a center point for gatherings and activities.

For more photos and information on this Crescent Community visit their website about Hidden Lake.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Our branch specializes in affordable lending options including FHA / VA and the Community Heros program. As both a banker and a broker, you have access to a full menu of products including all Fannie Mae and Freddie Mac Conforming loans, Reverse, Jumbo and Commercial financing on a variety of property types. We are located in Cary, North Carolina and are within easy reach of the entire RTP Area including Wake, Durham and Orange Counties.

Fannie Mae Tightens Its Guidelines

Roland Carrillo, PhD - Mortgage Consultant — Sat, 10 May 2008 14:53:52 -0500

Fannie Mae has announced that it will be making changes to its automated underwriting system, Desktop Underwriter effective May 31. This move is the latest round of tightening in underwriting guidelines in recent months. These changes have restricted private mortgage insurance to a maximum of 97% financing and imposed pricing adjustments (i.e. higher interest rates and fees) for those with credit scores <680.

One big change is the introduction of a new minimum 580 FICO for all eligible loans. Currently loans run through DU do not need to meet and minimum score requirement but the totality of factors (debts, income, assets, job stability, credit history, etc) and the reasons for the lower score (illness, divorce, failed business) were considered to make a decision. With this change anything below that score is automatically ineligible with no exceptions.

The changes go beyond FICO scores as Fannie has also said it will no longer consider mortgage insurance as a mitigating risk factor for high-LTV loans. Fannie Mae will also impose stricter rules regarding previous foreclosures and delinquencies. Borrowers with a prior foreclosure will be required to have five years of clean credit before becoming eligible from the prior standard of four years (some minor exceptions are possible).

It is becoming clear that despite efforts by Congressional leaders to have Fannie Mae and Freddie Mac stabilize the housing market, both are being careful about the risks they take on. They still offer several great financing options but the pool of qualified borrowers will again be reduced. FHA still remains a viable option for those in need as well, as they are still not imposing any minimum credit score requirements or penalties to rates/fees based on credit scores as long as the totality of factors meet the underwriting standards.

______________________________________________________

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/

Green Home Tour May 3rd and 4th

Roland Carrillo, PhD - Mortgage Consultant — Wed, 30 Apr 2008 22:47:39 -0500

For anyone interested in green home ideas and technologies, this weekend (May 3^rd and 4^th) is the 3^rd Annual Green Home Tour. This year there are 40 green homes throughout Wake, Durham, Orange and Chatham Counties that you can take a free tour of.

Saturday May 3, 2008 - 10 am to 6 pm
Sunday May 4, 2008 - 12 pm to 6 pm

Tour books with floor plans and maps can be found at various locations or you can view the homes online to see more information and floor plans.

The "Green Home" movement has experienced vast growth and this year there are twice as many homes as last year. This is great news for those that want to look into the energy efficiency, health and environmental benefits of ecologically responsible building technology.

There will be an opening event on May 3^rd from 9 AM until Noon at the NC Biotechnology Center in 15 TW Alexander Drive in RTP. This will include education displays and speakers. For more information about this event, take a look at their information website.

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/