Real Estate, Home Loans & Identity Theft!

http://www.seattlepi.com/local/406129_fha12.html

By AUBREY COHEN
SEATTLEPI.COM STAFF

Home buyers will be able to use the federal $8,000 first-time home buyer tax credit for down payments on Federal Housing Administration loans, U.S. Housing and Urban Development Secretary Shaun Donovan announced Tuesday.

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan said at the National Association of Realtors' Midyear Legislative Meetings & Trade Expo in Washington, according to a printed copy of the remarks released by HUD.

FHA will allow approved lenders and nonprofits, and state and local government agencies to issue short-term bridge loans buyers can use for down payments, Donovan said. Buyers would repay the loans after getting their tax refunds.

Donovan said FHA would soon release details on the new program.

Last month, the Legislature approved a program to provide the credit as a temporary loan, although that has since run up against an IRS rule barring taxpayers from designating someone else to get their refunds.

"A lot of people are working on the IRS issue, including the National Association of Realtors, and my understanding is we're pretty close on getting that put into place," said Erik Hand, president of Response Mortgage Services, which is real estate company John L. Scott's mortgage branch.

FHA loans fell out of favor during the housing boom, with the explosion of privately funded subprime mortgages. But the subprime market has all but disappeared over the past two years, and FHA's nationwide market share surged from 1.9 percent in the fourth quarter of 2006 to 23.7 percent at the end of last year, according to HUD.

Don Riley, executive vice president of Windermere Services, said 60 to 65 percent of first-time buyers in the Seattle area use FHA loans, which allow people to buy with as little as 3.5 percent down.

Allowing use of the tax credit for down payments essentially turns the credit into a form of down payment assistance. The FHA allows government agencies and nonprofits to give buyers down payment assistance, although it recently barred such assistance from home sellers.

HUD officials said mortgages with seller-funded assistance had higher default rates, largely because sellers often built the assistance into the price, meaning buyers were essentially financing the entire purchase. Hand noted that the same was not true of loans with government and nonprofit assistance.

I've recently been educated about the seriousness with Identity Theft. Arizona being the #1 state and the Phoenix metro area being the #1 city for Identity Theft. The statistics used to be 1 of 10 would be a victim, now they are estimating it to become 1 of 3 will become a victim of Identity Theft by the end of this year. I have become an associate with Prepaid Legal to provide education and awareness regarding this epidemic which I don't foresee going away. With so many credit monitoring companies, how do you choose the right service? Well, I've found that most companies only provide monitoring which would be the first signs that your identity has been stolen. Most companies don’t tell you the other forms of ID Theft such as medical, driver’s license, social security and criminal/character in addition to the financial we’re all aware of. Prepaid Legal has partnered with another 30+ year company, Kroll Worldwide, to provide full restoration services in all five areas of identity theft. Kroll partnered with prepaid legal as most effects of ID Theft do become legal issues. I have included a link to a video recently shown on MSNBC and how this issue could have been handled by the attorneys and a world renowned risk management company. My website within the next month will have vital information about Identity Theft and the services that are provided.

http://today.msnbc.msn.com/id/26184891/vp/30344575#30344575

I encourage your questions and comments which I would like to you to share on this blog.  This will give others the opportunity to see Q & A's from others. 

 I looked into what the media has announced about rates dropping.  At this time, it is still speculation.  We may know something more concrete next week.  Attached is a link to a website that has some additional information. 

"The US, Secretary Treasurer Paulson is considering another plan to help boost the ailing housing markets. The Treasury already announced plans to buy Mortgage-Backed Securities issued by Fannie Mae and Freddie Mac and now wants to step up those purchases in a coordinated move to drive home loan rates down to 4.5%."

http://www.inman.com/news/2008/12/4/mortgage-rates-down-can-you-get-one

Please make note of a few changes in my contact information.  Carnegie First is no longer open for business so I've decided to begin me lending business with a great company called Guaranteed Rate.  We are licensed in the majority of the U.S. and we are set up for HUD 184 business.  I have a great team to work with in process your loans.  We are very competive in our rates and fees along with what's most important SERVICE! 

I have some big ideas that I would like to share with members of my blog such as increased down payment assistance that may become available to Navajo's in Arizona and New Mexico.  I'd really like to look further into Green Homes or Self Sustaining Homes for new construction or renovation projects to all applicants but especially focusing on Native American Construction on tribal indian land.  Please share with me your comments and/or ideas as to people in this industry who could join me in my efforts. 

Tess Robinson

VP of Mortgage Lending

Guaranteed Rate Inc

7047 E. Greenway Pkwy

Suite 210

Scottsdale, AZ 85254

Direct: 480-556-5339

Mobile: 480-584-2150

Fax: 480-718-7972

Email: tess@Robinson-LendingGroup.com

www.Robinson-LendingGroup.com

www.guaranteedrate.com/tessrobinson

Native American Connections has townhomes located near 40th Street & Indian School Road for sale!  I will be the lender financing these homes.  The listing agent is Bryan Cooper with John Hall & Associates.  These homes have available Grants from $5K-$75K available depending on your income.  I.H.S. of Phoenix allowed us an information booth yesterday which was a success.  We will be sponsoring another informational booth on Wednesday, September 11, 2008.  Onsite pre-approval will be available! 

We, just like everyone in our industry, are waiting for a mortgagee letter from Hud to explain how the discontinuance of DPA will be implemented.   

We have contacted our investors for some guidance and wanted to keep you as up to date about it as we can.  Some wholesalers and large banks are not accepting any locks after August 15^th with 45 days as the longest acceptable period.  Some of these investors have all told us the same two key points:

1.       Must be funded by September 30, 2008.

2.       The lock will not hold the guideline.   

Keep this in mind if you plan to purchase and hope to utilize seller paid contributions such as Ameridream towards your down payment & closing costs.  As we hear more we will let you know. 

Well, its been 55 days since I last posted a blog.  I've been really busy holding seminars and meeting with new clients.  I have also had the opportunity to meet with Betsy Golob with Rimview Properties in Page/Greenhaven AZ.  This was one of the nicer groups of realtors I've had the opportunity to meet recently.  If you're interested in buying a home in the Lake Powell area, please give them a call.  Their website link is: http://www.rimviewproperties.com/ and please let them know you got this information from Tess Robinson. 

I would like to also introduce a realtor, Deb Gilman, with Cornerstone Home and Land.  She's a realtor in the valley and has recently been a speaker at our last Homebuyer Seminar sponsored by the Phoenix Indian Center and Title Management Agency last month.  We had a large number of people attend and all had great comments about the seminar.  I will have a link for Deb soon on my website. 

I have also added some additional WEBINARS to attend.  I decided to hold these on Friday afternoons at 11AM.  So bring your lunch to work and educate yourself on: Streamline refinance for HUD loans, becoming an investor in this market and soon the first time homebuyer seminar.  I do plan to eventually hold seminars for Native American buyers, Builders and Contractors on how the lending process on tribal indian works and what's required in getting a home built.  Please let know if there are any other topics that you would like me to cover.  I do encourage your feedback on this BLOG!

On January 10,2008, the Feds decided to drop interest rates .5% to stimulate the economy.  Rates for a conventional loan to refinance rate/term or for purchase loans can see rate as low at 5.75% paying a point depending on the loan type.  A down-payment will be required to obtain this type of rate.  Fannie Mae now adds to the rate for lower credit scores so your interest rate may be affected for lower credit scores.  HUD loans are still a great avenue towards purchasing since no add-on to the rate is generally required due to lower fico scores.  FHA is also currently be considered for changes which include a lower down.  More will be disclosed on this blog about market changes.  Homes are ON SALE! Many benefits are there for a buyer interested in buying at this time such as the ability to negotiate the sales price of homes, obtaining seller assistance towards closing costs, interest rate buy-down and lower interest rates to name a few.  You will need to start your purchase by getting pre-approved!  Take the time to complete the online application to begin your home purchase process. We work with some GREAT REALTORS who will take the time to find your the right home!

Keep in mind the great reasons to buy now: Great home prices, Seller's willing to provide buyer concessions and Great Interest Rates! Please blog me any questions or concerns regarding the real estate market, interests rates and lending requirement changes.  -Tess

As you are aware, HUD has issued a proposed rule that seeks to eliminate DPA. This proposed rule could affect our ability to continue helping deserving individuals. I'm happy to report that following a Congressional hearing last month, HUD agreed to extend the deadline for submitting comments an additional 30 days. To date, more than 13,390 individual comments supporting the need for DPA have been sent to HUD and a list of national supports is growing. Most recently, the US Conference of Mayors issued a resolution supporting DPA. We continue to remain confident that with the support and comments from industry partners, like you, this rule will be withdrawn. In the meanwhile, we continue to operate "business as usual."

Support Down Payment Assistance:
There is something you can do! 
Go to www.supportdownpaymentassistance.org to find out how.
       

The mortgage market has changed more in the past 6 months than it has in all of the past 6 years. As a result, over the last few days we have seen major movement from WAMU, Wells, Homecomings, ALS, CW, and Chase in various product segments.  In addition, several more tier B and C players have halted funding and shut their doors.  Many Investors have completely exited certain product segments.  When companies such as American Home (ABC) go out of business, the repercussions can be felt deeply across the lending spectrum. These days, there is no joy to be found in the demise of an investor, for we all know it means further market upheaval and heartbreaking job loss for many people we know and admire. Liquidity in the secondary market in the past two weeks has dried up. As this liquidity crunch has increased in the past few weeks, many Investors have determined that offering some loan products is not a viable option for either them or you.  If securities can't be sold on the secondary market, rates increase and guidelines are due to be changed. Loan types listed below are currently put on hold with many investors until we can see positive market changes.

• No Income No Asset (NINA)
• Stated Incomes with limited reserves
• Option Arms
• High LTV Loans
• Investment Property

If you're looking to buy a home which is to be your primary residence, there are still some great loans to consider such as the Flex 100 (Freddie Mac), My Community (Fannie Mae), FHA, VA, HUD 184 and the Home in Five.  Call today and get prequalified to buy. Waiting for stricter loan guidelines, loan programs to be eliminated and higher interest rates does not benefit you by waiting.

Our mortgage industry has gone through many changes in the past few months.  Many investors have gone out of business.  Loan programs have been eliminated and/or credit score requirements have increased which has made finding a loan for buyers more challenging.  We do now have a loan which allows for 100% financing on ARMs, Fixed and Interst Only loan types with credit scores as low as 580.  Other great loan options are the FHA, VA and HUD 184 loans.  With homes prices coming down to a more realistic range and interest rates being as good as they are, now is the time to buy.  Getting seller paid closing costs up to 3% in our "buyer's market" is very likely. 

Apply online today with our easy to complete online application.

NAR: The National Association of Realtors® supports legislation that would change the current law that forces individuals to pay an income tax when they have had a part of a mortgage loan forgiven or have been forced to foreclose because of their inability to pay their mortgage.  Some homeowner's have no choice but to sell their home and in our current market with stagnant or declining property values can cause homeowner's to fall short of paying off the full mortgage (short sale).  "Clearly, it is unfair to tax people on a phantom income, particularly right at the time they have experienced a serious economic loss and probably have no cash with which to pay the tax," said Combs. 

The Andrews-Lewis bill would ensure that any debt forgiven on disposition of a principle residence will not be taxed.

This HUD rule spells out very clearly that it eliminates seller funded nonprofit down-payment assistance programs such as Ameridream, Partners in Charity and Genesis Program. HUD has tried for a long time to get outside assistance by Congress and the IRS to help them eliminate these groups but has had little in getting any group to move fast enough for their
agenda. HUD has now decided to step up to the plate themselves with
this rule which eliminates nonprofit down payment assistance groups
themselves. With the adoption of this rule, this would make the nonprofit
seller funded source not an acceptable source of down payment funds.

HUD believes that the the Nonprofit down payment source is more of an inducement to buy from the seller since many times the purchase price is increased for the amount being given to the buyer.  HUD views this as a 100% financing rather than a down-payment source.

This does apply to all VA, FHA and the HUD 184 loans.  At this time we are looking into a source of down payment similar to Ameridream and others like it being from a government source.  If this is one that can be used, this Blog will be updated with that information.