Adding kids as “Authorized Users” on your accounts

By Todd Abelson NMLS #180858 on .

Adding your children on as “authorized users” of your credit cards can help them establish credit history and will serve them well.

But be aware that this is not always the best option and certainly not intended to be long term.

Click here to read a fine article on this topic, created by Advantage Credit of Colorado.

Call Todd Abelson at (520) 331-LEND (5363) for all your mortgage needs!

MANY changes to Gov’t insured loans effective 10/1/2011

By Todd Abelson NMLS #180858 on .

The following bears repeating so you’re not caught off guard – changes to all Government Insured loan programs take effect October 1, 2011:

VA LOANS – Up Front VA Funding Fee is reduced on PURCHASE transactions. Click here to see complete chart for details

FHA LOANS – Temporary increased loan limits are eliminated; Pima County is back down to $271,050

USDA LOANS – Up Front Loan Guarantee Fee is being reduced from 3.5% to 2.0% BUT they are adding monthly mortgage insurance of 0.30% annually.

Be aware and don’t get “caught short”.

Call Todd Abelson, Licensed Mortgage Professional, at (520) 331-LEND (5363) for all your mortgage needs!

USDA changing Loan Guarantee costs!

By Todd Abelson NMLS #180858 on .

Effective October 1, 2011 USDA is making two changes to their Loan Guarantee costs.

First the good – the Up-Front Loan Guarantee fee is being reduced from 3.5% to 2.0%

Now the bad – like FHA, they will start charging monthly mortgage insurance at an annual rate of 0.30% (FHA currently charges 1.15%)

Loans that do not have a  “Conditional Commitment” by Sept. 30, 2011 will fall under the new fee guidelines – NO EXCEPTIONS!

INFORM YOUR CLIENTS ! If they are buying a newly built home, make sure they request their Lender to have their Guarantee Fees locked in.

Any questions? As always, I’m here to help!

Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363)

The “Uniform Mortgage Data Program” for Appraisals

By Todd Abelson NMLS #180858 on .

Under the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the GSEs) have developed the Uniform Mortgage Data Program (UMDP) to enhance the accuracy and quality of loan data delivered to each GSE…

FOR CONVENTIONAL LOANS DELIVERED TO THE GSEs ON/AFTER MARCH 19, 2012 (and with loan application dates on/after December 1, 2011), Fannie Mae and Freddie Mac WILL REQUIRE appraisals to be completed using the new field-specific standardization requirements…

Now my take – while this implementation SHOULD help “level the playing” field between geographies, Appraiser’s unique styles, housing markets, etc. and make it easier for INVESTORS (Wall Street or otherwise) to know what they’re getting it will definately have some down sides:

1. Appraisals are 80% science, 20% Art. The “art” is very often what make the report make sense

2. Fitting nicely into a Bell Curve makes statisticians happy, but what if you’re at either end of the curve (high or low)? You’re in trouble.

3. Trying to be all things to all people usually makes more problems than it solves.

So where does that leave us? First, the current style of appraisal report is being revamped so you won’t be able to tell the players without a scorecard. Get a copy of the “Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification (UAD)” document for study and reference. Next, inform your clients that it will be better if they can submit a loan application BEFORE December 1st if possible. Finally, prepare for some extra time to close since every lender will be gearing up for this (and they’ve already started).

More “fun and games” in the Mortgage Industry — but fear not because I’m on the case!

Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363).