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Tuesday, March 24, 2015

California’s homeownership rate dropped

California’s homeownership rate dropped quickly in the fourth quarter (Q4) of 2014, falling over a percentage point to 53.2%. This is down from 54.6% one year earlier.

The homeownership rate has plummeted from its 60.7% peak in 2006 to its present level. California homeownership is certain to languish below California’s historical rate of 55% for years to come, due primarily to rising mortgage rates.

Sunday, March 15, 2015

HUD has announced new reverse mortgage regulations

Just a quick update!

HUD has announced  new reverse mortgage regulations  (previously dated to go into effect March 2nd 2015) have been delayed until sometime in April 2015.

Currently a senior citizen with equity in their home can (literally) be 1 day away from a trust deed sale, or BK and still can qualify for a cash out refinance or to  purchase their next home   with no qualifying!

That will end in April when seniors will have to qualify based on income, credit and debt to income ratios.

California residents have a shorter period a time as they must participate in mandatory housing counseling which can take up to 2 weeks to get an appt. and then wait for a “7 day cooling off period” to expire.

Senior citizens struggling to keep their home have just a few weeks left to get a reverse mortgage without a financial assessment which may exclude or reduce benefits for up to 50% of reverse mortgage applicants.

Please note: I’m not certified to originate Reverse Mortgages however my contact and friend of many years is.

Wednesday, March 4, 2015

FHA NEW DELAYS

If you have an FHA purchase transaction in process or just beginning one, you (and all of us industry professionals) are in for a wild ride for the next 90-120 days.

Indirectly affected also will be conventional fundings as well as the lending industry is on the verge of a short but intense “refi mania”.

If you are writing an FHA offer try and get a 45 COE (If any lender is promising less than 45 days “beware”).

The ONLY way to close an FHA loan in less than 45 days (currently) is for your buyer to have ALL of their paperwork to their loan officer, well in advance of offers being written.

As per the source:

“FHA is cautioning lenders, buyers and agents they may experience loan processing delays due to an expected upsurge in case number assignments” following the recent announcement of a 50 basis point cut in the annual mortgage insurance premium.

To assist lenders in providing the lower annual premium rates to current loan applicants, the FHA will allow lenders to cancel the current FHA case number for any loan application that has not yet closed and re-order a new one on or after Jan. 26, 2015, when the new premiums take effect.

A cancellation request based on the reduced annual MIP must be submitted on or before Feb. 25, 2015.

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