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1/18/2017

Trump May Hold Your Closing Hostage

Did you Lock in an FHA loan with lower MI?

FHA LOAN in 
the hopper?
You may get STUCK 



Inauguration and new Administration May Stall YOUR FHA loan 
closing BEWARE!  Oh no !  
This could be unwound before it starts. If the President retracts the MI reduction right after the 20th we will have stuck borrowers.  
As we know, President elect Trump may have different ideas on how HUD should work and is creating much uncertainty.  If you locked, re-disclosure with higher numbers may be impossible. Is this a legal change of circumstance?  Lender would have to pay the increase for life of
loan.  The current laws, lovely Dodd Frank, require Loan Estimate to be exact and
Closing Disclosure can't go up, only down. If Trump cancels the reduction in MI,
he may hold your transaction hostage until Mnuchin figures out the granular nitty 
gritty grass.

Stay tuned borrowers, 
the corresponding articles now surrounding this topic. It makes having tough conversations on the 26th easier should this occur.  My advice to mortgage lenders is do not disclose the lower MI, don't write this product until we find out what the new
boss will do.


Based on recent testimony and political pushback, we believe there is a strong chance the most recent MIP reduction (as published in HUD Mortgagee Letter 2017-01[MBA.informz.net]) may be one of the rollback actions[MBA.informz.net] taken soon after President Trump takes office. This change will likely be effective immediately, and could create significant operational challenges for lenders and their customers. Given this information,  consider the contingency steps that would be necessary to unwind any changes that have already been made to adjust for the reduced MIP rates if this reversal is implemented.

California County Recorder Holidays Closed Dates


Holiday Observances Closed County Recorder
Real Estate Transactions Can't Record on these
Dates in 2017:
January 2nd, New Years Day Observed
January 16th, Martin L. King Jr.
February 13th, Lincoln's Birthday
February 20th, Presidents Day
March 31st, Cesar Chavez
May 29th, Memorial Day
July 4th, Independence Day
September 4th, Labor Day
October 9th, Columbus Day
November 10th, Veterans Day
Observed November 23rd & 24th,  Thanksgiving
December 22nd,   Christmas Eve
Observance  December 25th, Christmas December 26th
December 29th, New Years Eve
Holiday Observances Closed County Recorder
Real Estate Transactions Can't Record in the following counties:
Alameda               
Alpine            
Amador               
Butte               
Calaveras
Colusa               
Contra Costa               
Del Norte               
El Dorado               
Fresno               
Glenn
Humboldt               
Imperial
Inyo
Kern        
Kings
Lake               
Lassen               
Los Angeles 
Madera       
Marin               
Mariposa               
Mendicino               
Merced               
Modoc
Mono
Monterey
Napa               
Nevada               
Orange               
Placer               
Plumas               
Riverside               

2017 California County Recorder Holidays

1/09/2017

FHA Bullish Reduces MIP .25

Bullish on FHA loans

HUD announcement today January 9, 2017 to reduce MIP
premiums. 

Borrowers who close FHA mortgages after January 27 will pay 25 basis points less for the mortgage insurance premium, the Department of Housing and Urban Development said.
MIP is insurance for the lender, not Borrowers

Congress set certain liquidity rules for FHA.
Today HUD says reserve ratio stood at 2.32% last year, the second year in a row to exceed the 2% threshold.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” HUD Secretary Julian Castro .
Unfortunately with mortgage rates rising, and expected to take two more leaps this year I don't think this black steer is going to be running out to apply for a home loan. Getting the loan closed with all the Dodd Frank rules is the real obstacle to real estate economic growth, that and affordable housing.
What does .25 in MIP mean in payment savings monthly? Perhaps about $12 dollars per $100000. monthly savings. This might be the difference in getting someone's debt to income ratio within approval, or not.

1/04/2017

TransUnion Equifax OWE YOU Money

Santa Slaps the CREDIT COPS


A day after CFBP announced that TransUnion would have to pay  seventeen million dollars in fines for deceptive advertising, the CFPB announces: now Equifax, another credit reporting agency is also being crushed in the wallet. Richard Cordray is surely paying his own salary here. Not that anyone feels sorry for the credit cops who preyed upon American Consumers touting their services of credit reporting are accurate, fair and useful. Credit cops TransUnion Equifax and others charge huge fees to mortgage lenders and consumers for their mathematical models which are flawed.

It's easy for business to hate The Consumer Financial Protection Bureau (CFPB). It will be near to impossible for Trump to dismantle the strong arm, as they are funded by fining. CFBP is perhaps one of the most profitable entities in Washington D.C. EASIER NOW for consumers to realize the Credit Cops lied, and cheated consumers
TransUnion Equifax and (Experian not yet named) and their subsidiaries and affiliated- those pesky credit karma, free credit report crap that get your credit card and bill consumers until the cows come home. deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers. Credit cops lure consumers into costly recurring payments for credit-related products with lies, misrepresentation and fear. CFPB orders TransUnion and Equifax now advertise the true value of the credit scores they provide and the cost of obtaining those credit scores and other services. Line up for your eleven dollar check from TransUnion and Equifax. Credit cops must pay $17.6 million in restitution to consumers, and fines totaling $5.5 million to the CFPB.
“TransUnion and Equifax deceived consumers about the usefulness of the credit scores they marketed, and lured consumers into expensive recurring payments with false promises,” said CFPB Director Richard Cordray. “Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them.”
Chicago-based TransUnion and Atlanta-based Equifax  collect credit information, including a borrower's payment history, debts, maximum credit limits, creditors, and other elements of their credit relationships. Information is gathered but often incorrect, erroneous and mistaken. Bits of historical payment records are conglomerated into a giant rubber band ball of numbers. A consumer who tries to correct mis-information about a similar name (those who happen to be a Junior with same name as father) or those who have wrong information find it near to impossible to get right. Credit reports and scores tare provided to subsidiaries for employment checks, loans, and all kinds of "snoopdom". Through subsidiaries, TransUnion Interactive and Equifax Consumer Services, Credit cops advertise and sell credit products to consumers, such as credit scores, credit reports, and credit monitoring. 
TransUnion sells to consumers via VantageScore Solutions, LLC. The big lie is VantageScores are not used for credit decisions by mortgage lenders, car loans and credit card loans. Equifax sold scoring to consumers from Equifax’s own machine: Equifax Credit Score, which is an “educational” useless credit score that also is not used by anyone to make credit decisions.
Furthermore TransUnion and Equifax sold consumers monthly services to check your score or check your credit which are worthless numbers. Both lied to the public. These are violations of Dodd Frank and Consumer Financial Protection Acts. Both TransUnion and Equifax failed to get consumer written authorization to pull these reports millions of times
  •  EVER TRIED TO CANCEL THESE SERVICES? BOTH TransUnion and Equifax hide from consumers to avoid cancellation of monthly charges. They must stop billing recurring charges. They must now advertise and list their phone number, answer the phone and have online cancellation forms, mail to, fax to and submit on line available to cancel services. These credit cops are worse than Match.com and Eharmony for not allowing consumers to cancel and USING their own information to sell as product. It's a wonderful digital world.
TransUnion and Equifax owe you money TransUnion's phone call free and ask for your $100.00 1 (855) 681-3196

 text of the CFPB’s Order against TransUnion is here:http://files.consumerfinance.gov/f/documents/201701_cfpb_Transunion-consent-order.pdf 

Contact:  C G  Barbeau (949) 784-9699