FHA Changes Not Primroses

Primroses from Caroline Gerardo's Organic Garden

 

FHA Policy Changes Frowny Face :(

Mortgage FHA changes, everything is not coming up primroses…

Is an FHA loan the best thing for an Orange County Buyer? Maybe not with all the new rules coming in the next few weeks.

Here are the legal FHA Change Effective Dates for those detail oriented home shoppers in Newport Beach, Laguna Niguel, Ladera Ranch, Mission Viejo, Orange County and all of California
Here’s the legal scuttle:

• Up-front mortgage insurance premium (hereafter called MIP) increased 75 basis points to 1.75%

Effective April 9, 2012

Annual Mortgage Insurance Premium (MIP) on loans up to $625,500

• Annual MIP increased 10 basis points

LTV ≤ 95% to 1.30%

LTV   95% to 1.35%

Effective April 1, 2013

Annual Mortgage Insurance Premium (MIP) on loans greater than $625,500

• Annual MIP increased 5 bps

LTV ≤ 95% to 1.50%

LTV > 95% to 1.55%

Annual Mortgage Insurance Premium (MIP) NOW Non-Cancellable

• For loans with application dates on or after June 3,

2013, Annual MIP will be collected for the life of the loan, up to 30 years.

• Annual MIP collection had ceased when loan balance reached 78% of original property value.

Effective June 3, 2013

Seller Concessions

• Reducing from 6% to: greater of 3% or $6,000

• Capped at actual allowable costs

• Allowable costs are more restrictive: now disallows homeowner/condo association dues, interim interest and payment protection insurance

Indemnification becomes an issue for lenders to certify:

• Lenders must indemnify FHA against loss for all loans found with:– fraud or misrepresentation, that lender “knew or should have known about”; and/or – serious and material noncompliance with HUD requirements that would make the loan ineligible

• No appeals process or negotiated settlements permitted

Final Rule Issued January 25,

• Compare Ratio Changes:

– No longer compare to national FHA default /delinquency rate

– Mortgagee’s 24 month default/delinquency rate compared to the average rate of all FHA mortgages   only in the state(s) in which the mortgagee operates

• Automatic termination if compare ratio is greater than; 150%

• Automatic termination applies to the institution level of the mortgagee, as opposed to its branches

January 25,2012 (Federal Register /Vol. 77, No. 16)

While the FHA has been a key player in the mortgage industry, the ongoing policy changes were made to strengthen capital reserves—pricing and guideline adjustments, lender enforcement etc.

These changes have a significant impact on the higher cost to close an FHA loan, more careful scrutiny and less appealing product to close a home loan. Someone has to pay and it is going to be on the backs of lower down payment, lower credit score and first time homeowners.

 

 

So what’s my solution? 
Where is the Steel Magnolia this Spring in Orange County?

It is blooming right here in Newport Beach. Borrowers enter my credit counseling program prior to making an offer, they gather more down payment to make a solid offer and save money doing a conventional loan with MI. It will be a less costly option to buy a home in O. C.

Caroline Gerardo
NMLS # 324982
Mortgage Banker
(949) 784-9699
http://mywjb.com/caroline-gerardo/

 

Green Clean Your Beach House

It is spring and like many people in Orange County I don’t complain about the fog or the on and off cool weather of this winter. I have some tips to get your home cleaned up and ready for the glory of summer, the long days at the beach or enjoying your backyard Newport Beach pool.

Flooring tips:

Ceramic tile floors can be cleaned easily with warm water. First sweep or vacuum the flooring carefully to remove any loose soil or grit. Do not use a sponge mop to clean ceramic-tile or stone floors. It places the dirt into the grout tracks. A micro-fiber mop picks up all the dirt that a sponge mop leaves behind. Pour the ingredients into a bucket and use a rag or micro-fiber mop to clean. If you do use a rag and the on your hands and knees method, wipe in a circular motion across the floor with a microfiber rag.

I purchased a pack online at amazon see link below and have been very pleased that they are Green to use, last forever and don’t leave lint and dog hair behind. Microfiber cloths and microfiber mops are a must for any Green clean home. Microfiber consists of millions of tiny hooks that attract, absorb and remove dirt, dust and bacteria from surfaces without the use of chemicals! Reducing chemical use is better for the environment and our own health in our homes. Microfiber rags offer energy savings as they need to be washed in ONLY cool water and tumble dried. Don't forget the cabinets and baseboards. I like the smell of a couple drops of lavender oil or peppermint oil and a light spray of "liquid gold" on the rag to clean and dust the cabinets thoroughly. If the grout is very dirty, use a brush, or an old toothbrush. 

Hardwood floors: Boil a quart of water adding two teabags to clean hardwood floors. The tannic acid in tea creates a beautiful shine for hardwood floors. Let two teabags steep in the boiling water for two minutes. Pour the tea into a bucket. Take a soft cloth and wring it out in the tea. Again use a microfiber cloth but not dripping wet. The cloth should be damp, not soaked. The floor to dries quickly and leaves a streak less shine. If there are scratches in the wood that show more after cleaning the hardwood floor, use a brown crayon (the color of the floor) and rub it on the scratch to fill the gap. Turn a blow dryer on high for thirty seconds, heat the area where the crayon was applied and buff it with a soft cloth.

Vinyl floors are not as popular but often used in Orange County laundry areas, or pet areas To clean the vinyl floors mix Borax in a bucket of warm water and wash the floor rinse with warm water.

To remove hairspray residue from hard surfaces like mirrors and countertops with a solution of one part fabric softener and two parts water.

These last two recommendations are not very “green” but sometimes you just have to get serious with dirt. Open all the windows wear gloves and old clothing and one part bleach to one part water to scrub grout with a toothbrush. Put the bleach and water in an old glass jar. Rinse two times with clean water and discard the toothbrush, you don’t want someone to make a mistake and use it.

Sometimes my son’s Lacrosse bag with the sweaty helmet and all those black pellets from the astro turf seems to really dirty up the air. A few suggestions to clean up the air: put the equipment and bag out in the sunshine on a patio. Spraying with Lysol doesn’t seem to get rid of the odor, but rinse with a hose and expose to sun really does the job. I also like to have on hand some peppermint oil that I put a few drops on a white washcloth after his equipment is dry and ready to come inside. The wash cloth can go in the bottom of the bag and makes a fresh scent when unzipped. As to cleaning up floors with those dirty black rubber tire pellets: sweep and vacuum before they get trampled and carried all over the house.

This is the type of rags I purchased to clean my home. I have also used them in my office in Newport Beach to clear dust off computers and desktops.

More tips to come in following posts

 

 

 

Caroline Gerardo is a Mortgage Banker in Newport Beach California

Caroline has been in the Home Loan business twenty four years. NMLS # 324982
Caroline ( also known as C. G. Barbeau ) published four novels, two poetry anthologies and her poetry and short fiction has been published in 40 magazines and major newspapers. http://mywjb.com/caroline-gerardo/

http://cgbarbeau.blogspot.com/

http://carolinegerardo.blogspot.com/

 

Mortgage Loans on Condominiums in Newport Beach

 

 

60 Sea Island Drive, Newport Beach, California, 92660  Condo

$799,000.00 3 Bed / 3.5 Bath 1527 Sq Ft MLS ID - OC13039392

courtesy of: Regency Real Estate Brokers; Michelle Yegsigian; DRE License Number: 01025400; Co-Listing Firm: First Team Estates; Co-Listing Agent: Nicholas Jordan

Certifying and recertifying condos for an FHA loan can be a real hassle, but when you partner with WJB, we help you every step of the way —

and we don’t pass on any administrativecosts to your clients.

If you are buying a home in Newport Beach, Laguna Niguel or anywhere in California
this mortgage program will be very helpful.
This is also available on a refinance of an existing mortgage loan.

 

• We maintain a checklist of requirements for initial and recertification

• The WJB branch collects all legal documents and emails them to our Central Processing unit

• We absorb the cost of shipping the package to the FHA

• We check on the status of the file to ensure it is being processed — until it is complete!

• We help you take care of any additional conditions — again, at no additional charge

 

Caroline Gerardo believes that supporting partners’ business
helps us both accelerate our success and growth.

If you are working with condo units and need assistance with FHA certification, talk to me today about our certification assistance. I'm excited to offer this benefit to my valued partners and clients.

 

Caroline Gerardo

Mortgage Officer

NMLS# 324982

23041 SW BIRCH # 330

Newport Beach, California 92660

Call me today to see what I can do for you! (949) 784-9699

Underwater Refinance

Underwater Turtle Searching for his Home

 

 

We have a NEW Mortgage program that can help!

With the new Home Affordable Refinance Program (HARP) loan, you may be able to refinance no matter how upside-down your mortgage is!

Are you worried about making your payments? Would you like to have more cash in your pocket every month? Do you want to pay your loan off faster?

Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If you currently have a mortgage held by Fannie Mae or Freddie Mac, the HARP II refinance loan can help you lower your interest rate, decrease your monthly payments and help you start turning your finances around.

Appraisals may be waived

No LTV/CLTV restrictions on fixed-rate loans of 30 years or less

Only 620 FICO required

Loan was sold to Fannie or Freddie before June 1, 2009

 
If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP 2.0.   The refinance must benefit you in one of four ways:

Reduction in the borrower’s monthly principal and interest payment

Reduction in the interest rate

Reduction in the amortization term

Movement to a more stable product (i.e., interest-only to fully amortizing, ARM to fixed, 30-year to 15-year, etc.)

If you have a Fannie Mae- or Freddie Mac-owned home loan, call me today. I’m here to help make sure you have a home financing program that works for YOU. Let’s see if the HARP II loan is the solution you’ve been looking for!

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

http://www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup

 

W.J. Bradley Mortgage Capital, LLC

© 2012 W.J. Bradley Mortgage Capital, LLC. 6465 Greenwood Plaza Blvd, Suite 500, Centennial, CO 80111 Phone #303-825-5670. NMLS ID 3233. Trade/service marks are the property of W.J. Bradley Mortgage Capital, LLC. This is not a commitment to lend. Restrictions apply. All rights reserved. Some products may not be available in all states. WJB is not
acting on behalf of or at the direction of HUD/FHA or the federal government.

AZ Mortgage Banker License # BK-0903998; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act RML# 4131002; Colorado Mortgage
Company Registration NMLS ID 3233 Regulated by the Division of Real Estate. To check the license status of your CO Mortgage Broker, visit www.dora.state.co.us/real-estate/index.htm; Florida
Mortgage Lender Servicer license #MLD738; ID Mortgage Broker License No. MBL-7766; IL Residential Mortgage Licensee – License #MB.6760738, 6465 Greenwood Plaza Blvd., Suite 500,
Centennial, CO 80111; MN Residential Mortgage Originator License No. MN-MO-3233; NV Mortgage Banker License No. 2061; NV Mortgage Broker License No. 504; NM Mortgage Loan
Company and Loan Broker Act Reg. No. 01856; OK Mortgage Broker – License No. MB001365; OR Mortgage Lender License No. ML-776; TX Registered Mortgage Banker – NMLS 3233; Texas
Mortgage Banker Disclosure: www.wjbradley.com/Texas-Mortgage-Banker-Disclosure.html; UT Mortgage Lender Company License No. 5495659-NMLC; Utah Consumer Credit Notification and
Utah Residential First Mortgage Notification regulated by the Utah Department of Financial Institutions; Vermont Lender License #6341; WA Consumer Loan License No. CL-3233; Wisconsin

Mortgage Banker License No. 699991. NMLS consumer access: www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/233.

 

Caroline Gerardo

Mortgage Loan Originator

W.J. Bradley Mortgage Capital, LLC

20341 SW Birch St., Suite 330

Newport Beach, CA 92660

Office: 949.637.8190

Cell: 949.784.9699

caroline.gerardo@wjbradley.com

http://www.mywjb.com/caroline-gerardo

NMLS: 324982