Federal Reserve Board Issued Final Rule on Appraisals for High Priced Mortgage Loans

John Thomas January 24, 2013 Tags: Final Rule on Appraisals, High Priced Mortgage Loans, HPML, HPML Appraisal

Final Rule on Appraisals for High Priced Mortgage Loans Released.

High Priced Mortgage Loan also called an HPML is a loan that is secured against a borrower’s primary residence and has an interest rate that is higher than the average prime offer rate. The Federal Reserve Board issued the Final Rule on Appraisals for HPML on January 18, 2013, which was mandated by provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).

The Final Rule requires lenders to use a certified or licensed appraiser who prepares a written appraisal report based on a physical inspection of the interior of the property. The rule also requires lenders to provide borrowers with a free copy of the appraisal report and to disclose the purpose of the appraisal report. In an effort to prevent fraudulent property flipping, the rule requires creditors to obtain an additional appraisal at no cost to the borrower if the property has been acquired: Keep Reading...

Allowed Seller Contribution Toward Closing Costs on Delaware Purchase Transactions

John Thomas December 26, 2012 Tags: Fannie Mae Seller Paid Closing Costs, FHA seller paid closing costs, Freddie Mac Seller Paid Closing costs, Seller Concessions, Seller Paid closing costs, USDA Seller Paid Closing Costs, VA Seller Paid Closing Costs

How much can the Sellers contribute toward Buyers closing costs and pre-paid items?

John R. Thomas with Primary Residential Mortgage in Newark, Delaware will answer how much the seller can pay toward closing costs and pre-paid items based on the loan program being used. If you have questions or would like to apply for a mortgage loan please call 302-703-0727 or you can APPLY ONLINE.

When a Buyer makes an offer to purchase a property, they can negotiate for the sellers to pay money toward closing costs and pre-paid items as long as it is written into the sales agreement. On the Delaware Real Estate Sales Agreement, this is typically written into section 32 of the sales contract. A seller is allowed to pay money towards closing costs, prepaid items, and reserves. The seller cannot, however, contribute toward the down payment. Keep Reading...

FHA Extends Property Flipping Waiver till December 31 2014

John Thomas December 12, 2012 Tags: Delaware FHA Loans, FHA Guidelines, FHA Property Flipping waiver

Update to Property Flipping Waiver – FHA Extends the Waiver till December 31, 2014

In 2006, HUD published a final rule in the Federal Register amending regulations at 24 CFR 203.37a, prohibiting property flipping in the HUD/FHA single-family mortgage insurance programs by providing additional exceptions to the time restrictions on sales. The rule and Mortgagee Letter 06-14 became effective for mortgages endorsed for insurance on or after July 7, 2006.

For properties that do not meet the property flipping exception criteria, the property flipping waiver was recently extended through 12/31/14 Keep Reading...

Delaware Conforming Loan Limits Remain the Same for 2013

John Thomas December 2, 2012 Tags: Conforming Loan Limits 2013, Conventional Loan Limits 2013, Delaware, Fannie Mae Loan Limits, Freddie Mac Loan Limits, John Thomas

The maximum loan limit for Freddie Mac and Fannie Mae loans in 2013 for loans made in Delaware will remain the same as it was in 2012. The Federal Housing Finance Agency (FHFA) announced on Thursday, November 29, 2012, that the baseline limit that will apply to most of the country will be $417,000 for one unit properties. Below is a chart showing the conforming loan limits for New Castle County, Delaware; Kent County, Delaware’ and Sussex County, Delaware:

Number of Units: Max Delaware (Kent, New Castle, & Sussex Counties) Loan Limit 1 Unit $417,000 Keep Reading...

Delaware USDA Rural Housing Loan Guideline Updates October 1, 2012

John Thomas October 4, 2012 Tags: Rural Development Loans, USDA, USDA Guideline Update October 2012, USDA Rural Housing Loans

Delaware USDA Rural Housing Loan Guideline Updates that took effect October 1, 2012.

Delaware USDA Rural Housing Loan Guideline Updates from John R. Thomas with Primary Residential Mortgage

USDA Rural Housing Loan Program changed the monthly mortgage insurance premium charged on USDA mortgages from 0.3% to 0.4% effective on conditional commitments issued on October 1, 2012, and after. USDA also changed the Guarantee fee it charges for refinances. The guarantee fee on refinance transactions increased from 1.5% to 2.0% effective October 1, 2012. The Guarantee Fee on purchase transactions remains the same at 2.0%. Keep Reading...

FHA Update – Provisions for Condo Project Approval Process

John Thomas September 18, 2012 Tags: Delaware FHA Loans, Delaware mortgages, FHA Condo, FHA Loans

In order to address current housing market conditions, HUD has published Mortgagee Letter 2012-18, which highlights important changes to the current condominium guides.

Here are the 7 things you need to know about these changes
1. These changes are in effect from September 13, 2012, until August 31, 2014, unless extended.

2. Under construction is defined as (1) a new development in which construction has been started but is not yet completed or in which units are completed but are less than 1 year old (existing < 12 months old); or (2) gut rehabilitation conversions. The definition of “under construction” applies to legally phased developments. Keep Reading...

Delaware FHA Streamline Refinance Guidelines 2012

John Thomas August 13, 2012 Tags: Delaware FHA Loans, Delaware Home Loans, Delaware mortgages, Delaware Refinance, FHA Streamline Refinance, mortgage loans

Delaware FHA Streamline Refinance Guidelines 2012

If you currently have an FHA Loan then you are eligible to refinance your existing Delaware FHA loan using the streamline refinance guidelines. The guidelines are different depending on when your current FHA loan was delivered by your lender to FHA after it was originated. If your loan was delivered to FHA before June 1, 2009, then you can take advantage of the new refinance guidelines put into place by President Obama that took effect on June 11, 2012. If your loan was delivered to FHA after June 1, 2009, then you must use the FHA Streamline Refinance guidelines that took effect on April 9, 2012. Apply Now for an FHA Streamline Refinance by calling 302-703-0727 or APPLY ONLINE for Delaware FHA Streamline Refinance Keep Reading...

FHA Rescinds New Credit Guidelines for Collections Effective June 15 2012

John Thomas July 2, 2012 Tags: Delaware FHA Loans, Delaware Home Loans, FHA Update, mortgage loans

FHA Rescinds Select Credit Guides Effective June 15, 2012, with mortgage letter 2012-10

Mortgagee Letter 2012-10 rescinds guidelines regarding disputed accounts and collection accounts that were announced February 28, 2012, via Mortgagee Letter 2012-03.

Here are the 2 things YOU NEED TO KNOW about these changes:

1. Effective now, the FHA guides revert back to the previous guides regarding disputed accounts and collection accounts, meaning the DE underwriter has to make the decision whether disputed accounts and collection accounts must be paid as a condition of loan approval. Keep Reading...