High Balance Loan Limit One More Year

Maximum Conforming and High Balance Loan Limits Remain the swame for HERA Loan Limits for 2014: Summary of High-Cost Areas

Fannie Mae and Freddie Mac announced today the extension of High Balance Mortgage Loan Limits. Frankly we are fortunate as our government seems to be backing out of the loan business.

Metropolitan Statistical Areas: 

Statistical Areas and Rural Counties where Maximum HERA Conforming Loan for 2013

Limits for Mortgages Acquired in 2014 exceed $417,000 in Contiguous U.S. or $625,500 for locations in Alaska, Hawaii, Guam, and U.S. Virgin Islands

Published November 27, 2013

ORANGE COUNTY CALIFORNIA Most zip codes $ 625500. High Balance Mortgage Loan remains available

VA Washington-Arlington-Alexandria, DC-VA-MD-WV (Metropolitan Area)

Component Counties (VA): Arlington, Clarke, Culpeper, Fairfax, Fauquier,

Loudon, Prince William, Rappahannock, Spotsylvania, Stafford, Warren

Component Cities (VA): Alexandria, Fairfax, Falls Church, Fredericksburg,

Manassas, Manassas Park

$ 625,500 $ 8 00,775 $ 967,950 $ 1,202,925

VA Cumberland $ 535,900 $ 6 86,050 $ 829,250 $ 1,030,600

VA King and Queen $ 535,900 $ 6 86,050 $ 829,250 $ 1,030,600

VA Lancaster $ 442,750 $ 5 66,800 $ 685,100 $ 851,450

VA Louisa $ 535,900 $ 6 86,050 $ 829,250 $ 1,030,600

VA Surry $ 458,850 $ 5 87,400 $ 710,050 $ 882,400

WA Seattle-Tacoma-Bellevue, WA (Metropolitan Area)

Component Counties: King, Pierce, Snohomish

$ 506,000 $ 6 47,750 $ 783,000 $ 973,100

WA San Juan $ 483,000 $ 6 18,300 $ 747,400 $ 928,850

WV Washington-Arlington-Alexandria, DC-VA-MD-WV (Metropolitan Area)

Component County (WV): Jefferson

$ 625,500 $ 8 00,775 $ 967,950 $ 1,202,925

WY Jackson, WY-ID (Micropolitan Area)

Component County (WY): Teton

$ 625,500 $ 8 00,775 $ 967,950 $ 1,202,925

MP Northern Islands $ 524,400 $ 6 71,300 $ 811,450 $ 1,008,450

MP Saipan Municipality $ 529,000 $ 6 77,200 $ 818,600 $ 1,017,300

MP Tinian Municipality $ 532,450 $ 6 81,650 $ 823,950 $ 1,023,950

trellis

rain chain

203K The Fixer upper Loan

FINANCING A FIXER-UPPER? PURCHASE AND REHAB ALL IN ONE FHA LOAN.

This program offers the unique features that make FHA loans excellent financing solutions in today’s market:

 PURCHASE OR REFINANCE 1-4 UNIT PROPERTIES (OWNER-OCCUPIED ONLY)
FHA DOWN PAYMENT (3.5%)
FLEXIBLE CREDIT
QUALIFYING ASSUMABLE LOANS

You just love the house. Except for the leaky pipes. Or maybe the kitchen is too small. For the house that's almost perfect, we have the perfect solution: Our Renovation Mortgage, a mortgage and home improvement loan all in one. 

Purchase or refinance 
Remodel the kitchen or bath 
Renovate or add a room 
Paint the house or add siding 
Add a porch, deck or patio 
Replace a leaky roof 
Put in new flooring, carpeting or tiling 
Update electrical wiring, plumbing or heating systems 
Conserve energy with new windows


Plus much more! Call Today! Caroline Gerardo Loan Officer NMLS #324982 Cell 949-637-8190 Office 949-784-9699 eFax 855-883-4303

CarolineGerardo@eaglehm.com
http://www.eaglehomemortgage.com/CarolineGerardo



Committed to Seeing You Home. Eagle Home Mortgage 8105 Irvine Center Drive #500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.


  Caroline Gerardo Barbeau  NMLS# 324982| 8105 Irvine Center Drive #500, Irvine, CA 92618

Fair Lending

ECOA Violations identifying mortgage lenders and fixing or penalizing mortgage companies, banks and lenders who are "unfair"

 
Corrective action is required “…when the self-test shows that it is more likely than not that a violation occurred, even though no violation has been formally adjudicated” (12 C.F.R. §1002.15(c)(1)).  In order to secure the privilege that comes with self-testing and corrective action, the corrective action must be “appropriate.” 

Regulation B provides guidelines for determining whether a creditor’s response to potential ECOA violations is appropriate.  First, the corrective action must be “…reasonably likely to remedy the cause and effect of a likely violation…” (12 C.F.R. §1002.15(c)(2)). 

regulations state that corrective action is reasonably likely to remedy the cause and effect of a violation if it:

• Identifies “…the policies and practices that are the likely cause of the violation…” and
• Assesses the “…extent and scope of any violation…”

(12 C.F.R. §1002.15(c)(2))

If self-testing reveals evidence of an actual or potential compliance failure, the creditor must determine whether it is necessary to provide remedial relief.  If the self-test involved the use of testers, and one of the testers received discriminatory treatment, the creditor is not required to provide remedial relief to the tester (12 C.F.R. §1002.15(c)(3)(i)). 

However, if the self-test shows that a credit applicant’s rights “…were more likely than not violated,” then the creditor is required to provide remedial relief to that applicant, unless the statute of limitations on an action available to the applicant has expired (12 C.F.R. §1002.15(c)(3)(ii-iii)).

In 2009, the DOJ, the Department of Housing and Urban Development (HUD), and the federal banking regulatory agencies wrote a Statement of Policy to address concerns regarding evidence of discriminatory treatment experienced by prospective homebuyers and borrowers.  This Statement includes answers to questions asked by financial institutions, including answers to inquiries regarding what a lender should do if self-testing shows evidence that lending discrimination exists.

·         Determining whether the discriminatory act or practice was the result of faulty lending policies, poor implementation of lending policies, or an isolated incident

·         Correcting policies or practices that may have led to a discriminatory act or practice

·         Disciplining and training employees involved

[1] Department of Housing and Urban Development and Department of Justice, et al. “Policy Statement on   Discrimination in Lending.”  3 Dec. 2009. Question 6. http://www.fdic.gov/regulations/laws/rules/5000-3860.html

Noting that while it does not “expunge or extinguish legal liability for violations of the law,” proactive measures that include self-testing and corrective action “…will be considered as a substantial mitigating factor by the primary regulatory agencies when contemplating possible enforcement actions.” [1]  The Statement also notes that self-testing and self-correction are regarded as a “substantial mitigating factor” when the DOJ and HUD determine whether to seek penalties in an action for ECOA violations.

Photographs of birdhouses in my Laguna Beach neighborhood, to cheer you up and make this legal information not so boring.

 

Fair Credit Laws

Laguna Beach Home



A little quiz with the answers as a cheat sheet if you are wondering about your rights to fair credit. Have you been denied employment or a loan? Quote the law noted in red

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance. True False

2. Harassment is not considered a form of discrimination under the Fair Housing Act. True False

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin. False True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices. False True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement. v False True

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan. True False

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities. False True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA. False True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing. False True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law. False True

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is: Religion Color Handicap Sex

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of: Race National origin Handicap Marital status

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy? Marital status Gender identity Sexual orientation Political party affiliation

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to: Mortgage brokers Qualified senior housing HUD housing Lenders

5. A conciliation agreement cannot be finalized without the signature of: The CFPB Director A judge in a federal court in the district where the discrimination allegedly occurred An administrative law judge HUD’s Assistant Secretary

an employer refuses to promote an employee because of information contained in a consumer report, what does the Fair Credit Reporting Act require of the employer?

That it send notice of the decision not to promote to the consumer reporting agency Nothing is required because FCRA does not apply to decisions to promote X That it give the employee a copy of the report That it provide the employee with reasons for the decision not to hire him or her Consumer reporting agencies are not allowed to give an entity asking for a report a record of inquiries in connection with a credit or insurance transaction not initiated by a consumer. However, consumer reporting agencies are allowed, upon request, to disclose to a consumer a record of all inquiries received by the reporting agency within the one-year period prior to a consumer’s request that identified the consumer in connection with a credit or insurance transaction not initiated by the consumer (15 U.S.C. §1681g). report provided in a credit or insurance transaction may contain the following pieces of information, except: An identifying number used to identify the consumer The consumer’s name The consumer’s address X The consumer’s Social Security number FCRA gives consumers the right to prevent a consumer report from being provided in connection with a credit or insurance transaction that they did not initiate (15 U.S.C. §1681b(e)). To get on the do-not-send list, a consumer has two options. First, the consumer can use the notification system that the consumer reporting agency uses (FCRA requires that all consumer reporting agencies establish a notification system, which could be as simple as a toll-free telephone number). provisions of this subsection alter, affect, or supersede the applicability of any other provisions of federal law relating to medical confidentiality. Which of the following accurately states the rule for sharing information about medical treatment histories? X Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction The information cannot be shared even where the consumer consents Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

• Arrest records that are more than seven years old, unless the statute of limitations has not expired, at which point the arrest may be reported until the statute of limitations expires
• Tax liens that are more than seven years old
• Accounts placed for collection (or charged off) that are more than seven years old
• Any other adverse information that is more than seven years old, other than conviction of a crime (conviction of a crime can always be reported, no matter how old);
• The name, address, and telephone number of any medical information provider unless either:
• That information does not convey information on the nature of the services (the name of a psychiatric center, for example, would not qualify because it conveys information that the consumer has mental health problems), or
• The report is being provided to an insurance company for purposes related to an insurance matter not involving property and casualty insurance

(15 U.S.C. §1681c(a))

FCRA also contains a list of situations in which the rules about what can be contained in a consumer report do not apply. The rules do not apply in the following situations:

• A credit transaction involving, or which may reasonably be expected to involve, a principal amount of at least $150,000
• The underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of at least $150,000
• An employment situation in which the employee is expected to receive an annual salary of at least $75,000

(15 U.S.C. §1681c(b))

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance.
	True
	False

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance.

True

False

2. Harassment is not considered a form of discrimination under the Fair Housing Act.
	True
	False

2. Harassment is not considered a form of discrimination under the Fair Housing Act.

True

False

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin.
	False
	True

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin.

False

True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices.
	False
	True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices.

False

True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement. v
	False
	True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement.

v

False

True

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan.
	True
	False

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan.

True

False

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities.
	False
	True

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities.

False

True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA.
	False
	True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA.

False

True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing.
	False
	True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing.

False

True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law.
	False
	True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law.

False

True

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is:
	Religion
	Color
	Handicap
	Sex

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is:

Religion

Color

Handicap

Sex

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of:
	Race
	National origin
	Handicap
	Marital status

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of:

Race

National origin

Handicap

Marital status

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy?
	Marital status
	Gender identity
	Sexual orientation
	Political party affiliation

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy?

Marital status

Gender identity

Sexual orientation

Political party affiliation

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to:
	Mortgage brokers
	Qualified senior housing
	HUD housing
	Lenders

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to:

Mortgage brokers

Qualified senior housing

HUD housing

Lenders

5. A conciliation agreement cannot be finalized without the signature of:
	The CFPB Director
	A judge in a federal court in the district where the discrimination allegedly occurred
	An administrative law judge
	HUD’s Assistant Secretary

5. A conciliation agreement cannot be finalized without the signature of:

The CFPB Director

A judge in a federal court in the district where the discrimination allegedly occurred

An administrative law judge

HUD’s Assistant Secretary

an employer refuses to promote an employee because of information contained in a consumer report, what does the Fair Credit Reporting Act require of the employer?

	That it send notice of the decision not to promote to the consumer reporting agency
	Nothing is required because FCRA does not apply to decisions to promote
X	That it give the employee a copy of the report
	That it provide the employee with reasons for the decision not to hire him or her

Consumer reporting agencies are not allowed to give an entity asking for a report a record of inquiries in connection with a credit or insurance transaction not initiated by a consumer. However, consumer reporting agencies are allowed, upon request, to disclose to a consumer a record of all inquiries received by the reporting agency within the one-year period prior to a consumer’s request that identified the consumer in connection with a credit or insurance transaction not initiated by the consumer (15 U.S.C. §1681g).

report provided in a credit or insurance transaction may contain the following pieces of information, except:

An identifying number used to identify the consumer The consumer’s name The consumer’s address X The consumer’s Social Security number

FCRA gives consumers the right to prevent a consumer report from being provided in connection with a credit or insurance transaction that they did not initiate (15 U.S.C. §1681b(e)). To get on the do-not-send list, a consumer has two options. First, the consumer can use the notification system that the consumer reporting agency uses (FCRA requires that all consumer reporting agencies establish a notification system, which could be as simple as a toll-free telephone number).
provisions of this subsection alter, affect, or supersede the applicability of any other provisions of federal law relating to medical confidentiality.

Which of the following accurately states the rule for sharing information about medical treatment histories?

X Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction The information cannot be shared even where the consumer consents Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

That it send notice of the decision not to promote to the consumer reporting agency

Nothing is required because FCRA does not apply to decisions to promote

X

That it give the employee a copy of the report

That it provide the employee with reasons for the decision not to hire him or her

report provided in a credit or insurance transaction may contain the following pieces of information, except:

	An identifying number used to identify the consumer
	The consumer’s name
	The consumer’s address
X	The consumer’s Social Security number

An identifying number used to identify the consumer

The consumer’s name

The consumer’s address

X

The consumer’s Social Security number

Which of the following accurately states the rule for sharing information about medical treatment histories?

X	Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction
	The information cannot be shared even where the consumer consents
	Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation
	Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

X

Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction

The information cannot be shared even where the consumer consents

Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation

Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction



Beach Patio by Caroline Gerardo

NMLS 324982