07/27/2009 - The Mortgage Monitor

New Truth in Lending Act (TILA) requirements take effect 07/30/2009.
Key elements you should know about the new law:

* If financing the earliest any home purchase transaction can close is 7 business days after the home buyer is issued his or her initial mortgage disclosures from the lender.
* Upfront fees cannot be collected by the lender (except for credit report) until the initial disclosures are received by the customers.
* The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing.
* An increase of more than .125% in the Annual Percentage Rate (APR) from the initial disclosure will require a reissue of disclosures to the customer an additional minimum of 3 days wait before closing. Keep in mind the APR may not be affected by just a rate change but a change in fees collected.

Rates Continue at Historic Lows
The 30-year fixed-rate mortgage (FRM) averaged 5.20 percent with an average 0.7 point for the week ending July 23, 2009, up from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. Read More->

First Time Home Buyers - 127 Days Remaining - Don't miss out.
127 days left for First Time Buyer Tax Credit (have not owned your own home in last 3 years). Financing is easy. Buy with little to no money down and still get up to $8000 back from government in weeks. Historically low rates. Why would you rent? http://www.miftb.com/

Mike Paige

07/06/2009 - Mortgage Monitor

July 6, 2009

Lower Long-Term Rates a Help to Housing Market.
The 30-year fixed-rate mortgage (FRM) averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements.

Revised "Truth in Lending" Disclosure Requirements Take Effect on July 30, 2009
Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009. Here are key highlights of the changes:

* The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.

* Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure).

* The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

* The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.

* If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan.

* The consumer may modify or waive both waiting periods for a documented personal financial emergency, but must receive the disclosures no later than the time of the modification or waiver.

Mike Paige