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Monday Morning Mortgages>
Monday Morning Mortgages
December 28, 2009
Happy New Year 2010!
As another incredible year in Sonoma County real estate closes, I wish all my realtor partners a healthy, peace-filled, and prosperous 2010. Remember that the work you do, with integrity, helps people safely transition into new phases of their lives. You provide an invaluable service and we are all still here slogging it out. Pat yourselves on the back!
Looking for a clear and productive direction for 2010? I’m taking a “One Page Business Plan” workshop, Jan 28th, from 9am to 5pm in Santa Rosa with Cynthia Riggs, business coach. Registration is $199 if you sign up by Jan 15. I’ve talked to others who have greatly benefited from the process of clarifying goals and setting strategy for their business using this workshop to create a road map for the year.
FHA HVCC Delayed
HUD Mortgagee Letter 2009-28 released early last week delays the implementation of the FHA requirement of using an HVCC system to order appraisals for FHA transactions to February 15, 2010 instead of January 1st as anticipated. Starting February 15, appraisals must be ordered directly by the lender without communication from realtors or loan originators to the appraisers. Prepare your clients to be in a position to pay for the FHA appraisals upfront via credit card once this system goes into effect.
January 1 Changes - GFE
Beginning January 1, 2010, Good Faith Estimates will comply with recent RESPA changes. I and my lenders are clear and prepared for the change. Once your client is in contract on a property, they meet with me to sign a loan application and disclosures. At that time, the new GFE is given to them and explained to them in detail to freeze the origination and settlement costs throughout the transaction.
This new process also gives buyers the chance to shop the loan with an initial GFE given by a broker or bank, provided the buyer has the subject property address and estimated value, and has provided the loan originator with a loan application, including credit report pull. The buyer then has 10 days to shop the loan with the quoted fees before the GFE quote expires.
January 1 Changes – VA Loan Limits
The Department of Veterans Affairs’ Loan Guaranty program does not impose a maximum amount that an eligible veteran may borrow using a VAguaranteed loan. However, county “limits” must be used to calculate VA’s maximum guaranty amount for a particular county. For Sonoma County in 2010, the maximum loan limit will be $417,000 with VA insuring 25% of the loan amount provided the veteran is entitled to full benefits.
Not that this impacts us much in Sonoma County where most of our home sales under $300k are bank owned or need bank approval for sale. The banks are not very patriotic when it comes to considering a VA purchase offer with its accompanying repair requirements. I have yet to originate a VA loan on an REO.
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