News Release, Fannie Mae
January 28, 2010
Fannie Mae Announces 3.5 % Seller Assistance on HomePath Properties
Incentive Part of Ongoing Effort to Stabilize Neighborhoods
WASHINGTON, DC - Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath property will receive up to 3.5 % of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010
"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."
Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3% down.
Fannie Mae Resource Center
1-800-732-6643
Thursday, January 28, 2010
Wednesday, January 20, 2010
FHA lifts 90-Day waiting period
Starting Feb. 1 housing regulators will suspend for one year a 90-Day waiting period on property resales that it says has put FHA borrowers at a disadvantage in bidding on foreclosed properties.
The waiting period on FHA financing of resales was implemented in 2003 to protect the Federal Housing Administration's mortgage insurance program from the impacts of home flipping.
The policy did not apply to properties repossessed by Fannie Mae, Freddie Mac, or state and federally chartered financial institutions. In 2008, FHA lifted the 90-Day waiting period on resales of all bank-owned (REO) properties.
Now, although many other conditions still apply, the waiting period is being lifted on all resales including properties purchased and rehabbed by private investors.
Research shows that acquiring, rehabilitating and reselling properties to prospective homeowners often takes less than 90 days, the Department of Housing and Urban Development (HUD) said in announcing the change.
Some sellers of foreclosed properties have been reluctant to enter into contracts from potential FHA buyers because of the cost of holding a property for 90 days, and the risks that a vacant property would be vandalized, HUD said.
Lifting the waiting period "will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities," HUD said.
Lenders must have supporting documentation or a second appraisal if the sales price of a property increases by more than 20% from the seller's acquisition cost, HUD said in publishing the waiver requirements. The waiver does not apply t the Home Equity Conversion Mortgage (HECM) for purchase program
Inman News, 1/19/10
The waiting period on FHA financing of resales was implemented in 2003 to protect the Federal Housing Administration's mortgage insurance program from the impacts of home flipping.
The policy did not apply to properties repossessed by Fannie Mae, Freddie Mac, or state and federally chartered financial institutions. In 2008, FHA lifted the 90-Day waiting period on resales of all bank-owned (REO) properties.
Now, although many other conditions still apply, the waiting period is being lifted on all resales including properties purchased and rehabbed by private investors.
Research shows that acquiring, rehabilitating and reselling properties to prospective homeowners often takes less than 90 days, the Department of Housing and Urban Development (HUD) said in announcing the change.
Some sellers of foreclosed properties have been reluctant to enter into contracts from potential FHA buyers because of the cost of holding a property for 90 days, and the risks that a vacant property would be vandalized, HUD said.
Lifting the waiting period "will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities," HUD said.
Lenders must have supporting documentation or a second appraisal if the sales price of a property increases by more than 20% from the seller's acquisition cost, HUD said in publishing the waiver requirements. The waiver does not apply t the Home Equity Conversion Mortgage (HECM) for purchase program
Inman News, 1/19/10
Monday, January 18, 2010
Energy-Efficient Rebate, by CAR
Energy-Efficient Rebates
The government is expected to unveil a new program in the next couple of months that, if approved, may reimburse homeowners for up to half the cost of making their homes more efficient. Through the program, homeowners will receive the largest return from simple upgrades like caulking windows, adding insulation, and changing incandescent light bulbs to those that are more energy-efficient.
To determine which energy-efficiency upgrades are best for their house, homeowners should obtain a home energy audit. Homeowners are advised to hire a contractor licensed by the Building Performance Institute or the Residential Energy Services Network. These contractors have been trained to first test a home to determine the amount of energy it is losing, then make suggestions on renovations.
The government is expected to unveil a new program in the next couple of months that, if approved, may reimburse homeowners for up to half the cost of making their homes more efficient. Through the program, homeowners will receive the largest return from simple upgrades like caulking windows, adding insulation, and changing incandescent light bulbs to those that are more energy-efficient.
To determine which energy-efficiency upgrades are best for their house, homeowners should obtain a home energy audit. Homeowners are advised to hire a contractor licensed by the Building Performance Institute or the Residential Energy Services Network. These contractors have been trained to first test a home to determine the amount of energy it is losing, then make suggestions on renovations.
"Beyond The Headlines" by CAR
What’s ahead for home prices?
California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments. However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.
KEEP THIS IN MIND
• Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in year to-year comparisons for the first time since August 2007.
• C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.
• Some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.’s
economists expect that foreclosures will remain flat this year compared with 2009. In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels. By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
• Government efforts to maintain a low interest rate environment have stabilized the market. However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.
California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments. However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.
KEEP THIS IN MIND
• Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in year to-year comparisons for the first time since August 2007.
• C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.
• Some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.’s
economists expect that foreclosures will remain flat this year compared with 2009. In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels. By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
• Government efforts to maintain a low interest rate environment have stabilized the market. However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.
Friday, January 1, 2010
Uncle Sam's New Guide to Mortgage Shopping
Federal rules that take effect Friday, Jan. 1, mandate a standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders offerings. The rules are an update of the Real Estate Settlement Procedures Act, a 1974 law known as RESPA.
MAKING SENSE OF THE STORY FOR CONSUMERS
Federal rules that take effect Friday, Jan. 1, mandate a standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders offerings. The rules are an update of the Real Estate Settlement Procedures Act, a 1974 law known as RESPA.
MAKING SENSE OF THE STORY FOR CONSUMERS
- Although Good Faith Estimates have been in use for many years, there never has been a standard form required of all lenders. Under the new rules, lenders and mortgage brokers are required to give consumers the standard estimate forms within 3 days of receiving a loan application.
- The Good Faith Estimate form requires lenders to combine all of the bank's fees into one "origination charge," enabling consumers to compare one lenders fees with others. Lenders are prohibited from increasing the origination fee from the estimate. Some additional charges, including title services and recording charges, can increase by as much as a combined 10 percent. Estimates for other charges, such as homeowners insurance and other services provided by third parties selected by the borrower, are not subject to such limits.
- A finance professor emeritus at the University of Pennsylvania's Wharton School recommends that borrowers focus on two items as they shop: The interest and the "adjusted origination charge," which includes any points paid to lower the rate.
- Another change includes the HUD1 form used by settlement firms in closings. The new HUD1 includes a comparison of the estimated and final costs, as well as a summary of the loan terms.
The Wall Street Journal
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