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Written by Administrator
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Tuesday, 26 January 2010 13:53 |
Truth In Labeling For Borrowers
Part I of a Three Part Series
When the FDA required food manufacturers to reveal the ingredients, nutritional value, calorie count and net weight on their product labeling, the big winner was the consumer. The consumer wins again now that Department of Housing and Urban Development (HUD) has set a standard for loan transparency. As of January 2010, all loan originators are required to give borrowers a loan"ingredient" list called a Good Faith Estimate (GFE). This three page "label" is structured within the Real Estate Settlement Procedures Act (RESPA) and clearly discloses key loan terms and closing costs to the borrower. Actually the Good Faith Estimate is more than a guesstimate, because once presented to the borrower, it is a binding statement of costs with few exceptions. A loan originator must issue a GFE no later than 3 business days after the loan originator receives either an application or information sufficient to complete an application and failure to provide a GFE to a borrower is a violation of Section 5 of RESPA.
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Written by Manufactured Housing Lenders
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Tuesday, 11 August 2009 21:58 |
First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
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Written by Manufactured Housing Lenders
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Tuesday, 11 August 2009 21:58 |
Taylor Bean & Whittaker: Not Just Another Bank Failure—You May be Affected and Not Know It!
The fact that TB&W was shut down this week did not create an earth-shattering news event. The reason: the impact of this bank closure is less like an earthquake than a tsunami—the wave of destruction hasn’t hit the shore yet. This a behind the scenes implode and as yet has not completely reverberated to the ultimate borrower. As a wholesale bank, TB&W was where mortgage brokers often went for the loans that no one else would do: for instance the very difficult FHA-insured manufactured home loan. TB&W was one of the diminishing loan options for manufactured homes and for those borrowers, shopping for loans, they may find the playing field significantly down-sized. Just considering the loans that were likely already in line for underwriting, there are an anticipated 30,000 loans who now may be homeless. And for some people that already were ready to move into homes ready to fund, they may be homeless as well.
For those of you that had your loans in the pipeline, your lender may be scrambling to place you. There is the tick-tock of the appraisal shelf life, your loan lock rate, your next mortgage payment due date—and now all is up in the air. Any borrower who has a loan in the works needs to contact his loan officers and not just ask hard and fast questions, but demand them, “Where was my loan being placed? Do you have a back up source? When will my appraisal expire? If you were putting my loan with TB&W, what is your back-up plan?” If there is any sense of hesitation, any wishy-washy-feel-good responses, any skirting-around-the-issue stall tactic, stop right there! It is time to take matters into your own hands.
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