ga: HVCC and It's Influence on Today's Appraisal Standards - 09/04/11 06:59 AM
The Home Valuation Code of Conduct (HVCC) was implemented in May 1, 2009 by the Federal Housing Finance Agency (FHFA).  It was designed as an attempt to improve the independence of appraisers.  It contained provisions that prohibit lenders and third parties from influencing appraisals to arrive at a certain value.  
According to NAR, the HVCC establishes standards on solicitation, selection, compensation, conflicts of interest and appraiser independence. Mortgage brokers and real estate agents are prohibited from selecting appraisers. Lenders are permitted to use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:
1) Selecting, retaining, recommending, or influencing the … (8 comments)

ga: Morelli's Gourmet Ice Cream & Desserts Now Open at Edgewood Shopping District - 09/03/11 12:54 PM
Morelli's Gourmet Ice Cream & Desserts is now open in the Edgewood Shopping District.  The location held its Grand Opening on June 18, 2011.  At Morelli's, you will find a large selection of ice cream, gelato, yogurt, sundaes, and more. 
There are traditional favorites like:
Banana Black Walnut Butter Pecan Chocolate Cookie Dough Cookies N' Cream Peach Strawberry Vanilla Vanilla Bean  
You will also find unique varieties such as:
Avocado Balsamic Strawberry Blueberry Pancake Coconut Jalapeno Death By Chocolate Elvis Lives (Banana ice cream Ginger Lavender Green Tea Key Lime Pie Krispy Kreamier Maple Bacon Brittle Mojito Sorbet Peach Mango Pear Pumpkin Pie … (8 comments)

ga: Atlanta, GA Market Update - September 2, 2011 - 09/02/11 03:43 PM

A disappointing jobs report send increased demand for mortgages and treasuries. The Nonfarm Payrolls report indicated no change in jobs.  This gives indication of stagnant growth in the economy.  The economic outlook was for 70K to 100K added jobs.  The national unemployment rate remained at 9.1%. 
 
The markets will be closed on Monday in observance of Labor Day holiday. 
 
Earlier today, the FDIC seized two Georgia banks.  Woodstock-based CreekSide Bank with two locations was taken over.  Cumming-based Patriot Bank of Georgia with one locaiton was also both seized.  They were also both sold to Atlanta-based Georgia Commerce Bank.  Due to the … (3 comments)

ga: Atlanta, GA Market Update - September 1, 2011 - 09/01/11 03:15 PM
The market has been active thus far this week.  Mortgages rates worsened slightly this morning following weakened demand for Treasuries.  This comes after reports that factory orders increased 2.4% last month.  Chicago Manufacturing activity also came in better than anticipated further lessening demand for treasuries.
Yesterday, Fed minutes confirmed possible discussions of possible stimulus plans to attempt to improve the economy.  Interest rates ended the day today slightly improved from this morning's worsening.  This leaves them about the same as yesterday's close.
The metro Atlanta unemployment rate dropped to 10.4 in July.  This is a slight decline from 10.5 in June.  The … (3 comments)

ga: FHA 203(k) Maximum Loan Amount - 08/30/11 02:33 PM
The FHA 203(k) maximum loan amount is the lesser of:
Purchase price (or “as is” value for refinances) plus rehabilitation costs OR
110% of “After Improved” valueTIMES The LTV factor (96.5% for a purchase) or less the allowable down payment ($100) for a HUD REO Property NOT TO EXCEED
Maximum county loan limit for the local area  
 
(0 comments)

ga: Flood Insurance Changes Ahead for Metro Atlanta - 08/21/11 03:47 PM
Flood insurance changes are coming to metro Atlanta counties.  In the wake of severe flooding in the last few years, area flood maps may be re-drawn.  The Georgia Department of Natural Resources is presently working closely with Federal Emergency Management Agency (FEMA) to assess possible changes to the area's flood maps. 
The agencies are currently evaluating a 107 mile area surrounding the Upper Chattahoochee River Basin.  Affected areas include Cobb, Coweta, DeKalb, Douglas, Fulton, and Gwinnett counties.  The Atlanta Journal-Constitution reports that DeKalb County alone could be adding almost 550 acres to the 100 year floodplain. 
In September 2009, many areas of metro Atlanta experienced … (7 comments)

ga: The End of PMI.....Soon All Conventional Mortgages Will Require 20% Down - 08/21/11 11:47 AM
Is the end of Private Mortgage Insurance for conventional mortgages near?  The question begs to be answered after recent events of the last few weeks. 
On Friday, the New York Stock Exchange delisted The PMI Group, Inc.  Later in the day, they were informed that August 19, 2011 was their last day to issue new MI policies. 
This comes after the August 3, 2011 announcement from Republic Mortgage Insurance Company (RMIC) that they will cease issues new MI policies on August 31, 2011.   That is after Fannie Mae announced on July 27, 2011 that they would no longer purchase any mortgages with MI issued by RMIC.  Freddie Mac … (6 comments)

ga: Why Do Lenders Prefer a Short Sale Over a Foreclosure??? - 08/13/11 03:25 PM
Why do lenders prefer a short sale over a foreclosure is a common question asked by buyers and sellers.  The reason all comes down to money.  Any home owner that does a short sale or has a property go into foreclosure ends up costing their mortgage company a lot of money.  When a seller does a short sale, it ends up costing the lender about 20-30% less than if they have to foreclosure. 
Maintaining a foreclosed property is an expensive understanding for a mortgage company.  The legal fees associated with a foreclosure can be costly for the lender.  They also have … (15 comments)

ga: What Is A Short Sale? - 08/13/11 12:54 PM
A home sale is classified as a "Short Sale" whenever it is sold for less than the amount owned on the mortgage and the mortgage lender accepts less than the full amount due on the outstanding balance.  The seller must meet several criteria in order to qualify for a short sale?  Some of those include:
The seller must owe more on the home that its current value The seller must prove that the home cannot be sold for enough to satisfy the current outstanding mortgage(s) owed The seller must demonstrate that they are suffering from a financial hardship which leaves the … (3 comments)

ga: Completed HAFA Short Sales Pass 10,000 Closings - 08/13/11 12:04 PM
According to a recent article from HousingWire, completed HAFA Short Sales have now surpassed 10,000 closings.  Since the Home Affordable Foreclosure Alternatives (HAFA) program was launched in April 2010, mortgage servicers have now completed 10,438 HAFA short sales through the end of June 2011. 
JPMorgan Chase tops the HAFA closed volume list.  The lender has now completed almost 3,600 approved HAFA short sales through the program. In June 2011 alone, nearly 1,000 were completed.
Wells Fargo comes in second place in completed HAFA short sales.  They have completed over 3,100 HAFA transactions.  Of those completed, nearly 700 were done in June 2011 alone.
Bank … (6 comments)

ga: Atlanta, GA Market Update - August 10, 2011 - 08/10/11 03:52 PM
Today 's market was once again a wild ride.  The Federal Open Market Committee (FOMC) released a statement Wednesday afternoon that sent Treasuries and mortgages rallying.  There was no change in overnight rates though.  The committee said state that it would keep short term rates at these levels though mid-2013. 
Three of the twelve FOMC members dissented.  The committee noted that the labor market has deteriorated.  Additionally, spending has flattened and housing is depressed. 
All of this was great new for mortgage rates as we hit 50 year lows today.  These low rates wont last forever, so borrowers needing … (3 comments)

ga: USDA Loan Volume - 08/07/11 01:55 PM
The US Department of Agriculture has plenty of funds left for Fiscal Year 2011.  The below announcement was released last week by the department.
 
August 4, 2011
 
GUARANTEED LOAN FUNDING UPDATE:   
OVER $11.2 BILLION DOLLARS AVAILABLE FOR GUARANTEED LOANS!
 
The Single Family Housing Guaranteed Loan Program (SFHGLP) was allocated $24 billion dollars for Fiscal Year 2011 (through September 30, 2011).  Due to tremendous support from our lending and real estate professional partners over $12 billion has been obligated nationwide.      
 
SERVE RURAL HOMEBUYERS!  While program demand and volume have heated up with the summer temperatures, … (3 comments)

ga: GA Dream Debt to Income Ratio Limitations - 08/06/11 10:59 AM
For buyers using the GA Dream Down Payment Assistance program, there are a variety of underwriting guidelines that the borrower must meet.  Two of those are credit score and debt to income ratio (DTI).  Like every mortgage loan program, GA Dream has a minimum credit score for each borrower.  They also have a maximum debt to income ratio based on the borrower's credit score.
For all Georgia Dream Loans, the Borrower must meet the following requirements:
Middle FICO Score of 640 or more has a maximum 40/45 DTI 
Middle FICO Score of 620-639 has a maximum 35/35 DTI
 
 
(0 comments)

ga: Can I Purchase After a Short Sale in Georgia? - 08/06/11 06:12 AM
Can I purchase after a short sale in Georgia? 
That is a common question on the minds of many Georgia sellers in today’s market.  The answer is, possibly.  In December 2009, HUD announced guidelines under which a seller who has completed a short sale can buy a new home utilizing FHA financing. 
Short Sales
According to FHA underwriting guideline, borrowers are not eligible for a new FHA loan if
·         They pursued a short sale on their principal residence simply to take advantage of declining market conditions, and  purchase, at  a reduced price, a similar or superior property … (3 comments)

ga: Flagstar Bank to Exit Atlanta Market as PNC Bank Enters Earlier - 07/27/11 04:10 AM
It was announced yesterday that Flagstar Bank intends to exit the Atlanta, GA banking market. The Michigan based bank will sell its 27 Atlanta area branches to Pittsburgh, PA based PNC Bank. The deal is set to close in December 2011.
This announcement comes only a few weeks after PNC announced its plans to acquire the US retail operations of Royal Bank of Canada, including its Raleigh, NC based RBC Bank.  That deal is set to close March 2012.
Flagstar entered the Atlanta market in 2007 by building a new network of branches.  RBC Bank entered the Atlanta market in 1998 with its … (5 comments)

ga: New, Lower FHA Loan Limits for Atlanta-Sandy Springs-Marietta, GA MSA - Effective October 1, 2011 - 07/10/11 11:27 AM
The Housing and Economic Recovery Act of 2008 raised the maximum conforming loan limit in the contiguous United States, the District of Columbia and Puerto Rico to as high as $729,750.  Of course, most counties across the country saw much lower loan limits. 
Conforming loan limits, which had been raised for many high-cost areas throughout the country to a maximum of $729,750, are expected to expire September 30, 2011. After this deadline, high-balance loans will once again be classified as "jumbo" and carry a higher interest rate.
Once the maximum loan limits are lowered, the new FHA loan limit for the Atlanta-Sandy Springs-Marietta, … (8 comments)

ga: New, Lower FHA Loan Limits for Gwinnett County, GA - Effective October 1, 2011 - 07/10/11 11:17 AM
The Housing and Economic Recovery Act of 2008 raised the maximum conforming loan limit in the contiguous United States, the District of Columbia and Puerto Rico to as high as $729,750.  Of course, most counties across the country saw much lower loan limits. 
Conforming loan limits, which had been raised for many high-cost areas throughout the country to a maximum of $729,750, are expected to expire September 30, 2011. After this deadline, high-balance loans will once again be classified as "jumbo" and carry a higher interest rate.
Once the maximum loan limits are lowered, the new FHA loan limit for Gwinnett County, GA (as … (0 comments)

ga: How Do Delinquent Homeowners Association (HOA) Dues Affect FHA Mortgages? - 07/03/11 08:22 AM
How Do Delinquent Homeowners Association (HOA) Dues Affect FHA Mortgages?
As part of the FHA condo project approval process, various aspect of the Home Owner's Association must be evaluated.  One such aspect is the delinquency rate of the current owners.  FHA guidelines require that no more than 15% of the total units can be in arrears on their condominium association fee payments.  Arrears is defined as more than 30 days past due.  This does not include late fees or other administrative expenses. The 15% includes all units (occupied, investor, bank-owned, vacant).
Should the delinquency percentage exceed 15%, exception requests may only be considered on a … (18 comments)

ga: Theater of the Stars Announces Its 2011-2012 Season - 03/13/11 03:26 PM
Theater of the Stars has announced its 2011- 2012 season lineup for the Fabulous Fox Theatre.  The season will open on June 21, 2011 with Joseph and the Amazing Technicolor Dreamcoat. 
The 2011 - 2012 show line up includes:
Joseph and the Amazing Technicolor Dreamcoat - June 21 - 26, 2011
Joseph and the Amazing Technicolor Dreamcoat was the first musical debuted by Andrew Lloyd Webber and Tim Rice.  The pair would go on to create Jesus Christ Superstar, Evita, and Cricket.
 

Rock of Ages, July 5 - 10, 2011
Rock of Ages is set around classic rock songs of the 1980's.  The musical has its … (1 comments)

ga: Credit Tip #1 - Paying Off Collection Accounts and Charge Offs - 03/11/11 02:17 PM
Think twice before you pay off collections accounts or charge offs.
For someone wanting to pay off collection accounts, it is suggested that you do it as part of the loan approval process.  Paying off a collection account can actually bring an old account to a current derogatory status.  That may in fact lower your credit score instead of raising it.
If you are not planning on purchasing for several months or longer, then paying off a collection account may actually help you.  There are some creditors who will continue to report the account as delinquency each month that the debt goes unpaid.  Paying off … (11 comments)