Tommorrow Obama is expected to sign this extension of the tax credit that yes, will put America deeper in the hole in terms of tax liability, though.
However, given the fact that many first time homebuyers, at least in my neck of the woods, had given up looking at homes due to the fact that they felt they would not be able to qualify for the credit are now back on the fence.
I also feel that this tax credit is very good for those existing homebuyers who have equity and did not refinance multiple times in the past several years and are looking to get a great deal on a home, given today's home prices.
For those of us in the Real Estate and Mortgage profession, this incentive should help do wonders for our business and I am glad that this tax credit is passing.
What I do hate is the HERA/HOEPA law that passed.
I had to delay a purchase closing by three days because the escrow officer did not clarify fees with our processing center, it lowered our APR tolerance by over 1/8% of a point, and because of that, we had to redisclose and make the buyers wait an extra three days to sign, costing them more money in daily rent they are having to pay in their home that the seller let them move into. I cannot stand that law and would love to petition to get that law overturned or at least modified to where we do not have to redisclose if APR decreases. It is ridiculous that we have to redisclose and make the customer wait an extra few days to sign, especially in a purchase contract which has time sensitivity issues.
I am looking to petition to overturn that aspect of the regulation. Hopefully, with enough signatures, as we are trying with HVCC, we can eliminate that portion of the HERA/HOEPA law.
Until next time.
Thank you for your business
Sincerely,
Paul W. Thompson
Home Mortgage Consultant
Wells Fargo Home Mortgage
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