Mortgage Changes to Know in 2014

RISMEDIA, Thursday, December 19, 2013— The New Year is almost here, and with it comes a bevy of legal and regulatory changes, especially for the mortgage industry. To help potential homebuyers understand how the changes will affect their mortgage processes, Don Frommeyer, CRMS, President of NAMB (The Association of Mortgage Professionals), outlines some of the regulations set to start in January 2014.

“Since 2009, the housing market has been working to create standards and regulations that minimize the risk of another mortgage industry fiasco,” says Frommeyer. “The ability-to-repay mandate is a perfect example of this and it exemplifies how mortgage professionals are taking extra caution with every customer.”

Upcoming mortgage industry changes include:

- Ability-to-Repay Mandate: The CFPB designed this regulation to set a gold-standard for lending to ensure each and every borrower is a qualified borrower. Lenders will follow a set of guidelines to establish a consumer’s income, assets and obligations before deeming them eligible. The CFPB rules establish a standard for what the government considers a “qualified mortgage.”

- Decrease in FHA Loan Limit: The Federal Housing Administration (FHA) announced that beginning January 1, 2014, mortgages will be limited to $625,000, down from $729,750. Homebuyers looking to obtain a larger loan will have to apply for a jumbo loan, which will most likely come with a higher down payment. “For many areas of the country this change won’t be a huge issue as average home prices fall below the established limit. However, borrowers in metropolitan areas with higher average housing prices may face challenges when applying for mortgages as the 20 percent down payment associated with jumbo loans will be an enormous increase from a traditional loan’s 3.5 percent down payment,” notes Frommeyer.

- Caps on Loan Origination Fees: January 10, 2014 brings a rule for the Qualified Mortgage that points and fees on mortgages cannot exceed 3%.

- Tighter Regulations for Self-Employed: As the rules to create a QM (qualified-mortgage) take effect, people without a W-2 will face difficulty when they apply for loans. It’s more of a task for individuals to prove their debt-to-income ratio without the proper documentation, even if they have a high net-worth and perfect credit. The income is calculated bringing into play the customer write offs to reduce taxable income.

For more information, visit www.namb.org.
If you are in the Savannah area, you can also call Kirsten Ray with Fidelity Bank:
Kirsten Ray
Fidelity Bank
200 Stephenson Ave
Suite 101
Savannah, GA 31405
912-692-8022                              

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

Real Estate Q&A: How the Self-Employed Can Get a Mortgage

Real Estate Q&A: How the Self-Employed Can Get a Mortgage

By Gary M. Singer

RISMEDIA, Saturday, December 14, 2013— (MCT)—Question: I am self-employed and make a good living. I want to buy a house, but it’s hard to document my income. So I’ve been getting turned down for a mortgage, even though I’m willing to make a large down payment. Any hope for me? —Trevor Answer: With banks and the federal government tightening lending requirements, it has become increasingly difficult for people who don’t get regular paychecks to qualify for loans. Although still rare, “stated income” loans are making a comeback. But they require very high credit scores, large down payments and deep cash reserves. If this is not available, you will have to try to get a loan based on your tax returns. Still, this can be difficult because the self-employed tend to use expenses to offset their net income, resulting in low numbers. That forces them to choose between favorable tax treatment or getting a loan. If you can’t find a loan from a traditional bank, there are a growing number of private lenders. Some, such as “hard money” lenders, will offer a smaller amount based only on the value of the house, perhaps lending 50 percent of its value. Others also will look at your credit, income and debts and lend larger amounts. Because these kinds of loans are risky for the lender, be prepared to pay a higher interest rate and higher closing costs. Shopping around is especially important with these loans because the costs and rates vary greatly from one lender to another. Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. ©2013 Sun Sentinel (Fort Lauderdale, Fla.) Distributed by MCT Information Services RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com. A. Joseph Marshall Coldwell Banker Commercial Commercial Real Estate Advisor Savannah, Ga 912-790-6999

Coastal Empire Economic Index Q2 2013

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

What homeowners need to know about avoiding foreclosure

I am reposting this article word for word that I got from Steve Nimmer here at Coldwell Banker Mortgage. (912) 604-3834 NMLS #: 186680.

Even though the recovery is over and people are getting rich in real estate(Flip That House Now! radio ads are playing again) there are plenty of home owners bank borrowers that are still struggling. And for some reason I sense there is a kind of stigma against them now that it is common knowledge that the recession is over.

So, here is Steve's article to help you out.

Since September 2008, the industry has seen some 4.5 million foreclosures completed, according to the June 2013 CoreLogic® National Foreclosure Report. And while those numbers have been coming down, it is still important that borrowers and homeowners understand what they can do to prevent foreclosure.

That means taking action at the first sign of trouble, such as the first time a homeowner makes a late payment or misses a payment altogether.

1. Analyze the cause
Was the payment late because the borrower had an unexpected expense, like a car repair or a medical bill? Or is the problem due to a job loss, disability or serious illness that could affect income for an indefinite period of time? The answers to these questions can help determine the best next steps.

2. Understand the foreclosure timeline
For most mortgages, a payment made one to 14 days late falls within a grace period. Payments 15 to 30 days late incur a late fee, which must be included at the time of payment. After 30 days, missed payments impact the borrower's credit score. Foreclosure procedures usually begin after four missed payments.

3. Optimize cash flow
Regardless of the scenario, it may be helpful for borrowers to revisit their budget and consider trimming extras like eating out, entertainment and other discretionary spending. It may also be necessary to generate additional income through part-time work or a second job.

4. Make a full payment – including late fees
A partial payment is usually credited as a principal reduction, not a regular mortgage payment. It's better to make a full payment, including any late fees, as soon as the money is available.

5. Communicate with their lender
The lender can help determine whether the borrower is eligible for any of several alternatives to foreclosure, such as refinancing or loan modifications. Even if the mortgage amount is more than the home is worth, the lender may be willing to accept a short sale or a deed-in-lieu of foreclosure.

The bottom line
A willingness to step back and assess the financial situation, take positive action to address shortfalls and work with the lender can go a long way toward helping borrowers avoid becoming foreclosure statistics.

Sources:
CoreLogic® National Foreclosure Report, June 2013
Freddie Mac: Alternatives to Foreclosure
7 Steps to Avoid Foreclosure by Tara-Nicholle Nelson, Esq.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999

AASU Coastal Empire Economic Monitor Q1

Dr. Toma has published the 2013 Coastal Empire Economic Monitor Quarter 1 report.

Summary: We are treading water in a sluggish stream that is moving in the right direction. Consumer confidence is weak, but tourism is up and so is housing. (In fact, in many areas of Savannah we are in a seller's market!)

Click on the images for enlargement.

 

Roubini Gets It If Only Everyone Else Did

A. Joseph Marshall 

Coldwell Banker Commercial

Commercial Real Estate Advisor 

Savannah, Ga 

912-790-6999

Tampa Luxury Retail Market Report

This has been your Tampa Luxury Retail Market Report.

A. Joseph Marshall 
Coldwell Banker Commercial
Commercial Real Estate Advisor 
Savannah, Ga 
912-790-6999