The FTC just issued the Final ruling on telemarketing and prerecorded sales calls. In the new rule you will have to receive permission from the customer in order to deliver prerecorded messages. Consumers however, can receive calls that deliver purely informational prerecorded messages such as you doctors' office that has a prerecorded message to remind you of your appointment.  The ruling is supposed to protect consumers just like ‘The Do Not Call Registry'. The provision that requires prerecorded telemarketing calls to provide an automated interactive opt-out mechanism went in effective on December 1, 2008.

See complete rulings below.

 

http://www.ftc.gov/opa/2008/08/tsr.shtm

http://www.ftc.gov/opa/2008/12/tsramendments.shtm

Maryland Governor signed the emergency bills on April 4, 2008 (HB 365 / SB 216 into law as emergency measures). MD Real Property Code Section 3-104.1 requires that every instrument securing ‘residential property' to contain the name and license number of the mortgage originator and the mortgage lender in order to record the security instrument. However, under the new law if the originator is exempt under the Mortgage Originators Act, or if the lender is exempt under the MD Mortgage Lender Law, an affidavit to the security instrument stating this fact is required. Under Section 3-104.1(A) residential Property is defined as real property improved by one to four single family dwelling units.

OK, I cannot even imagine what a Billion $$$ would look like. But the IMF is reporting that the total losses from Sub-Prime Loans can reach $945 billion. WOW!! In the U. S. alone we can expect to see about $565 billion $$$ in Sub-Prime loses. We all know that the government is working on something to help out this crisis but what and when?

Will it be too late by the time they figure it out?

Sometimes when rates are low some clients just like to float to see if it gets better. Why? These rates have probably been the steadiest in the past week and a half but people always want better. Well we cannot give lower than the lowest which is around 5.625% today.  5.625% is a very good way to start your day...Keep your head up; there is always someone looking for low rates. At the end of the day we provide a service (a very good on at that).

Homes sales are declining at about 1% from one month to the next. However, it could be worst so let us just move on to better things like closing more loans and selling more homes.  Have a Great Day!

Well, after the $30 Billion dollar bail out given to Bear Stearns last week the senate had to do something about the foreclosure issue we are currently facing. 94-1 was the senate vote to move forward on legislation to assist homeowners facing foreclosure.  If the legislation is adopted there will be a $7,000 one-year tax credit for purchasers of foreclosed home. Hmmm

 

 That bill also includes $10 billion in tax-exempt bonds for local housing agencies to refinance sub-prime loans and for first time home buyers, provide new mortgages and $100 million to expand counseling for homeowners at risk of defaulting on their loans.

 

Now here is the monkey wrench in the carburetor. This bill will set a cap on FHA mortgages to $550,000 in the expensive Real Estate market areas. This of course will take effect after the temporary loan limit of $729,750 expires and the down payment requirement for FHA will increase from 3% to 3.5%. Wow

 

What are your thoughts on this?  

 

There are not too many encouraging words in the media yet on home values increasing going into the 2^nd quarter. As it stands home values are still on a decline for the past five months even in major metropolitan statistical areas (MSAs) across the nation. Some MSAs are reporting declines over 10%.

Some of the major cities include Detroit, Las Vegas, Phoenix, Miami, LA, Minneapolis, Washington, San Francisco, San Diego, and Tampa. Although there not any mention of light at the end of the tunnel we still have to serve our customers and make a living.

There is good in everything...so keep providing quality customer service and remember it is a great time for home buyers.

 

 

If you have not been following the mortgage finance industry; FannieMae has now entered into an agreement with the OFHEO (the office of Federal Housing Enterprise Oversight) and New York Attorney General's office to adopt a Home Valuation Protection Code. Basically the code will be for single family mortgage loans for the exception of governments insured loans that are originated on or after January 1, 2009 and are delivered to FannieMae. The comment period is open right now until April 30, 2008 after this date NY AG office will reflect on whether any amendments to the Home Valuation Code are essential to avoid unexpected consequences. How do you think this will affect the mortgage and Real Estate industry?

The new RESPA rule was released by the U.S. Department of Housing & Urban Development today. The official RESPA rule was published in the Federal Register so there is a 60 day comment period in effect right now and ends May 13, 2008. The new 4-page GFE is designed to more closely mirror the HUD-1 settlement statement and provide consumers with more detailed information about yield-spread premiums paid to mortgage brokers. One of the biggest changes is to encourage consumers to shop for the homes, home features, loans, and other settlement services that are best for them, free from the influence of dangerous referral arrangements.

 More to come.....

Some lenders are are removing their FNMA 100 programs also due to changes by the MI companiesthe FNMA Flex 97, FHLMC 97 and Community program guidelines are will have a reduction in maximum CLTV as well as an increased minimum credit score of 680 on loans with LTVs greater than 80.00%. What's next?

To help lenders serve more borrowers in many high-cost areas, Fannie Mae is introducing Jumbo-Conforming Mortgages. They will accept whole loan and MBS deliveries:

• starting April 1, 2008 for 15- and 30-year fixed-rate mortgages
• starting May 1, 2008 for eligible 5/1 adjustable-rate mortgages

For details on borrower and product eligibility, underwriting, pricing, and delivery:

View Announcement 08-05
(.pdf, 156K, 9 pages)
View the Jumbo-Conforming Mortgages Product Matrix
(.pdf, 197K, 2 pages)

View information about eligible areas and corresponding loan limits

There will also be a recorded training on how to originate, underwrite, commit, and deliver Jumbo-Conforming Mortgages to Fannie Mae in mid-March.

So if you told your borrower that Jumdo conforming will be ready this month you still to wait and there may be changes along the way.