Skip to content

CFPB announces finalized TILA-RESPA effective date

The Consumer Financial Protection Bureau has finalized the extension of its Know Before You Owe disclosure rule effective date.

The CFPB announced the finalization of the effective date on Tuesday. The rule, also called the TILA-RESPA Integrated Disclosures rule, will take effect on Oct. 3.

“The Bureau believes that moving the effective date may benefit both the industry and consumers with a smoother transition to the new rule,” the CFPB stated in a press release. “The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving the industry time over the weekend to launch new systems configurations and to test systems.”

The rule was originally scheduled to take effect Aug. 1. However, both industry groups and Congress pressured the CFPB to extend the effective date – or at least institute a grace period – citing concerns that spotty implementation in the early days of enforcement could lead to problems.

via http://www.mpamag.com/news/cfpb-announces-finalized-tilarespa-effective-date-23295.aspx#.Va6urX58PBM.facebook
Advertisements

Mortgage Shopping and Credit Scores

The notion that a flurry of credit inquiries from mortgage lenders will lower a borrower’s score is a common misconception, experts say. The truth is that five inquiries are likely to have no more impact than one, provided they are made within a compressed period of time.

When it comes to mortgages, as well as automobile financing and student loans, “in both the FICO and VantageScore credit-scoring systems, there is logic in place that protects consumers’ credit scores from any negative impact caused by multiple inquiries as a result of rate shopping,” said John Ulzheimer, a credit expert with Credit Sesame, a website that helps consumers manage credit.

With FICO (the scoring model required by Fannie Mae and Freddie Mac), credit inquiries for mortgage loans that are less than 30 days old are ignored and have no impact, Mr. Ulzheimer said. Inquiries older than 30 days are looked at, but multiple inquiries from mortgage lenders made within 45 days of one another are treated as one inquiry. With VantageScore, the window is 14 days.

Both scoring systems assume that if someone has multiple mortgage-related inquiries in a short period, they are likely shopping for the best deal on a single mortgage, Mr. Ulzheimer said.

If one of the multiple mortgage inquiries occurs outside the allowed window — say, on day 46 — it would be counted as a second inquiry. “But it probably wouldn’t hurt you even then,” said Daniel Sater, the owner of Credit Scoring Advisor in Melville, N.Y. “One or two isn’t a significant risk factor in determining your ability to pay your debts in the future.”

continue to full article http://www.nytimes.com/2015/02/01/realestate/mortgage-shopping-and-credit-scores.html?_r=0

3 Key Tax Deductions Renewed for Homeowners

Thought this would be helpful at this time of year…

If you are anticipating a rough year when it comes to filing taxes, don’t turn those forms into new year’s confetti just yet. Several key provisions for homeowners have been retroactively renewed for 2014—and they might provide you with some much-needed tax relief.

If you did any of these three things in 2014, you still have reason to celebrate (OK, maybe not really celebrate, but celebrate as much as anyone can while doing taxes).

Short sale

In the third quarter of 2014, 8.1 million homes in the United States were seriously underwater, according to the real estate research firm RealtyTrac. If you were a homeowner who decided to short-sell your home last year, it’s not all bad news: Congress once again extended the Mortgage Forgiveness Debt Relief Act.

read more two more via http://www.realtor.com/advice/three-key-2014-tax-deductions-still/?MID=2015_02_MonthlyNewsletter_2010-13_sl1_ro&RID=10250946&cid=eml-2015-02-MonthlyNewsletter-sub2_renewed-blogs_buy

Heartwarming thank you

Jennifer,

We had such a great experience, that you can rest easy knowing that you have two new outside sales reps working for you now! I would also like to thank you once again for all of your effort and knowledge that you put into getting Cyndie, Elizabeth and I into a new home. We now have just enough time to get the house ready and settled to welcome baby #2 in April! I would be lying if I said there weren’t days that we were anxious and nervous after reading online horror stories of denied applications and closings that fell apart because of this or that. It seemed to me that our process from application to closing went relatively smooth considering what you hear from others that have recently purchased a home, and that was a pleasant surprise; I have a co-worker whose closing took over 3 hours, Yikes! I’m sure that I had millions of questions at times, but you seemed right on the ball and had an answer every time. Thank you once again! -Bob

Interest rates are driven by various factors. Here is what you may not know…

There are a few other factors such as property type and occupancy status. But this is a good start to understanding how interest rates are determined.

If you’re like most people, you want to get the lowest interest rate that you can find on your mortgage loan. But how is your interest rate determined? That can be difficult to figure out for even the savviest of mortgage shoppers.

Your lender knows how your interest rate gets determined, and we think you should, too. That’s why we’ve created a new interactive tool that lets you explore the factors that affect your interest rate and see what rates you can expect.

Armed with information, you can have confident conversations with lenders and ask questions to make sure you get a good deal. Here are seven key factors that affect your interest rate that you should know:

1. Credit score

Your credit score is a number that lenders use to help predict how reliable you’ll be in paying off your loan. Your credit score is calculated from your credit report, which shows all your loans and credit cards and your payment history on each one. In general, if you have a higher credit score, you’ll be able to get a lower interest rate. You can use our tool to explore how your credit score impacts the rates available.

Before you start mortgage shopping, get your credit report. Check for errors, and make sure to get them fixed. Examine your debts, and see if there are any you can pay down to improve your score. Learn more about how to raise your score.

Credit scoring is complicated—in fact, you have many credit scores, not just one. You can learn more about how mortgage lenders evaluate your credit history and use credit scores.

It’s a good idea to try to get a sense of your credit score range before you start mortgage shopping. Once you have an idea of your credit score range, put it into our tool to get more accurate rates.

2. Home location

Many lenders have slightly different pricing depending on what state you live in, so to get the most accurate rates using our tool, you’ll need to put in your state. If you live in a rural area, you can use our tool to get a sense of rates for your situation, but you’ll want to shop around with local lenders as well. Making a loan in a rural area can be more complicated, so large lenders may not serve that area.

3. Home price and loan amount

Your home price minus your down payment is the amount you’ll have to borrow for your mortgage loan. Typically, you’ll pay a higher interest rate on that loan if you’re taking out a particularly small or particularly large loan.

If you’ve already started shopping for homes, you may have an idea of the price range of the home you hope to buy. If you’re just getting started, real estate websites can help you get a sense of typical prices in the neighborhoods you’re interested in.

4. Down payment

In general, a higher down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can put 20 percent or more down, do it—you’ll usually get a lower interest rate.

If you can’t afford 20 percent down, experiment to see how lower amounts affect your rate.

5. Loan term

The term of your loan is how long you have to repay the loan. In general, shorter term loans have lower interest rates and lower overall costs, but higher monthly payments. Learn more about your loan term, and then try out different choices with our tool to see how your term affects your rate and interest costs.

6. Interest rate type

Interest rates come in two basic types: fixed and adjustable. Fixed interest rates don’t change over time. Adjustable rates have an initial fixed period, after which they go up or down based on the market.

In general, you can get a lower initial interest rate with an adjustable-rate loan, but that rate might increase significantly later on. Learn more about interest rate types, and then use the tool to see how this choice affects interest rates.

7. Loan type

There are several broad categories of loans, known as conventional, FHA, and VA loans. Rates can be significantly different depending on what loan type you choose. You can learn more about the different loan types in our Owning a Home loan options guide.

Now you know

That’s it—know these seven factors and you’ll be well on your way to getting a great interest rate for your situation. And just remember:
•You don’t need to have all seven of these factors decided before experimenting in our tool.
•As you consider your budget and learn more about your options, come back often. The more you know, the more accurate the rates will be.
•As you start talking to lenders, compare their offers to the rates in the tool to see if you are getting a good deal.

Now go forth and find a great mortgage rate!

See more via http://www.consumerfinance.gov/blog/7-factors-that-determine-your-mortgage-interest-rate/?utm_source=newsletter&utm_medium=facebook&utm_campaign=01202015_oahlaunch

HARP refinance-helping homeowners who are current on their mortgage payments, but who are “underwater” on their mortgage

2015-01-13_1029
Last night I left my client’s home after a refinance closing with an awesome feeling. They are saving just shy of $500/month! Yes, you read that correctly. It’s what the HARP loan is all about.

• They lowered their rate from the 6% range to the 4% range
• Their loan to value was higher than 100% (the underwater part-they owe more than the value of their home in today’s market
• They did not need an appraisal
• I was able to cover their closing costs

This is one of the reasons I do what I do for my career, and feeling great about it!

Do call me if you wish to talk over your mortgage situation to see if you can get HARPed 630.362.6405.

Calling All Home Buyers! The 3% Down Payment Makes a Comeback

2015-01-11_1844
New programs available for first-time and lower-income homebuyers.

Socking away enough for a down payment isn’t easy. In fact, recent research found that, with Americans’ current savings rate, it would take the average buyer as long as 12 years to build up a 20% down payment on a median-priced home. Fannie Mae announced an option for qualified first-time homebuyers that will allow for a down payment as low as 3%.

As a result, many first-time, younger and lower-income homebuyers have been largely left out of the housing market in the years since the recession.

Now, Fannie Mae and Freddie Mac are hoping to change that. The mortgage giants announced on Monday that they would begin backing mortgages with down payments as low as 3%. Fannie’s program will start this month; Freddie’s will begin March 2015.

The catch? Borrowers would have to meet strict standards to be eligible, such as a credit score of at least 620. The program would also only be available for first-time homebuyers, those who haven’t owned a home in a few years, and people with lower incomes. Further, borrowers would be required to undergo home-buyer counseling and purchase private mortgage insurance before signing on the dotted line. And those eligible for the program would likely have to meet other measures to offset the increased risk, like boasting a low debt-to-income ratio.

“This will be particularly helpful to those who are strapped by wealth rather than credit challenges,” Jim Parrott, a senior fellow at the Urban Institute, told The Wall Street Journal. – See more at: http://www.trulia.com/blog/calling-home-buyers-3-payment-makes-comeback/?ecampaign=cnews&eurl=www.trulia.com%2Fblog%2Fcalling-home-buyers-3-payment-makes-comeback%2F#sthash.yY8d4i4n.dpuf

Make 2015 the Year You Get Off Your Butt and Buy a House

2015-01-11_1813
Treat your home-seeking experience seriously and make finding your new home a reality.New Year’s resolutions are in full effect. An overwhelming number of us have committed to hit the gym, sweat it out, and shed the extra pounds we managed to pack on over the holidays. Eating, drinking, and then more eating — it’s time to get serious!

Getting in shape is the standard New Year’s resolution, but by February, the new gym membership is languishing and we’re back to eating pasta for dinner. Forget all that sweaty talk, let’s set a goal that we can really work toward: committing to finding and buying a home in 2015. So what can you do to ensure this is the year you score your dream home?

Tell people

“Making yourself accountable to your friends and family is one of the best ways to reach your goals,” says Molly Cain, an experienced life coach and Forbes contributor.

It makes total sense, doesn’t it? Sharing your plans with your friends and family gives you a group of instant cheerleaders and makes you more beholden to the goal. So take the plunge, hop on the interwebs, and start updating your social media profiles.

You can even give yourself a public deadline for extra accountability — let everyone on Facebook, Instagram, and Twitter know that this is the year you will be hosting Friendsgiving in your new home.

Seek referrals

Working with solid real estate professionals is a critical component to a smooth homebuying process. Begin asking your network of contacts for a referral for a real estate agent — but only if they had a positive experience. Take the time to interview and learn about the agent’s experience and geographic specialty, as well as discuss his or her communication styles and habits.

Elizabeth Weintraub, a broker-associate with Lyon Real Estate in Sacramento, CA, suggests taking it one step further and asking the agent to provide references from previous clients. “Everyone has references; ask for them.”

Get your credit in check

We all know how vital our credit history is when purchasing a home. If your credit is pristine, congratulations! If not, then do yourself a favor and start the cleanup process now. Start by reading these nine steps to boost your credit and heed these words: “If you think you can get your credit spruced up and ready to go in a matter of days, think again.”

Credit agencies are unwieldy bureaucracies and take time to navigate, so planning far in advance is the key.

Apply for a mortgage

Once you have identified the mortgage professional you will be working with, begin the loan application process immediately. Not sure how to choose whom to work with to finance your home purchase? No problem. Follow these tips to select the best loan officer or mortgage broker.

Having an approved loan application and a prequalification letter in hand before searching for a home gives you a serious advantage when making offers. Jump this financial hurdle early in the process and you’re well on your way to achieving your goal in 2015.
See more at: http://www.trulia.com/blog/make-2015-year-get-butt-buy-house/?ecampaign=cnews&eurl=www.trulia.com%2Fblog%2Fmake-2015-year-get-butt-buy-house%2F#sthash.zleonLYS.dpuf

Connection for Women Networking Group

2015-01-09_1159
To all of my business friends: I have been part if this great networking group (women only) for several years now. If you are interested in expanding your business thru networking, please contact me to join our next lunch on Tuesday, Jan 27. I would love to have you as a guest! Sugar Grove location
To find out more: http://www.connection4women.biz/Home_Page.html
On Facebook – Connection for Women Networking Group

jcannon@avenuemortgage.com
Cell 630-362-6405

It’s official: Obama to direct FHA to cut mortgage insurance premiums

Finally, a positive change for those needing an FHA loan…

2015-01-07_1805
The Obama Administration is directing, via executive action, the Federal Housing Administration to reduce annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%.

“…(T)oday, the President announced a major new step that his Administration is taking to make mortgages more affordable and accessible for creditworthy families,” according to a statement from the White House.

The White House statement says that the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment.

read full article via http://www.housingwire.com/articles/32533-its-official-obama-to-direct-fha-to-cut-mortgage-insurance-premiums