BANK REFUSES TO CLOSE MY DINKY HOME LOAN!

MY LENDER WON'T CLOSE MY LITTLE LOAN

Bank can't close as there were changes after we locked and says this is a HPML

What are Higher Priced Mortgage Loans?

	Weekly Average Prime Offer Rates for Fixed Rate Loans
Week of 09/02/2013
Term (in years)		5*	10	15	20	25	30
APOR		3.44	4.51	3.64	3.64	4.57	4.57
Margin		1.5	1.5	1.5	1.5	1.5	1.5
HPML APR Tolerance		4.940	6.010	5.140	5.140	6.070	6.070

 

Weekly Average Prime Offer Rates for Adjustable Rate (ARM) Loans
Week of 09/02/2013
Term (in years)	1/1*	3/1	5/1	7/1	10/1
APOR	2.90	2.92	3.04	3.37	3.86
Margin	1.5	1.5	1.5	1.5	1.5
HPML APR Tolerance	4.400	4.420	4.540	4.870	5.390

 

     * Amortization or adjustment rate terms may not be available in current product offering.

 Higher Priced Mortgage Loan (HPML) test implemented under Regulation Z is a tricky rule. The HPML rule applies to Conforming and Jumbo loans for Primary Residences with an APR that is 1.5% or more above the Average Prime Offer Rate (APOR) for loans secured by a first lien. APORs are published each Friday and are effective the following Monday. Once the loan is locked, the APOR used for that loan does not change.

If the APR is equal to or exceeds the HPML APR tolerance, the loan is HPML and will be un-saleable in the Secondary market. If a $55000 mortgage is going to cost a lender $10000 to close because of this rule there is no money to pay the huge penalty. Many banks, brokers, mortgage bankers don't want to mess with a loan that they might earn $200 on for the risk of having to pay that $10000. Although Dodd Frank set this rule to protect Borrowers from being switched to a costly loan, the rule is a Catch 22.

 

What Causes HPML Loans?
There are several things that may cause a loan interest rate to go above the APOR:

·         Lower loan amounts – the impact of fees on the APR increases as the loan amount decreases. A $100,000 loan is more likely to trigger an HPML than a $300,000 loan.

·         Mortgage insurance – The loan may have MI over a longer period of time because the LTV is in excess of 100% (common in HARP loans).

·         Shorter loan terms – APR fees are averaged over the term of a loan, so the shorter the term, the higher the fee (a 20 year loan will have a higher APR than a 30 year loan).

          Locking a loan before you know the property is something different than you were told upfront

          Changing a loan request

          Adding or deleting a Borrower with lower FICO score

          FICO score change on Borrower with long extended escrow due to New Construction taking longer than planned or delays by Seller

           Locking a loan on a Short Sale to find substantive changes to package after months of wait and hold

      Discovering additional fees from Escrow, Attorney or Title

Borrower’s failure to disclose facts                                                      

Condo complexes that add huge fees after the fact for information and transfer.

LENDERS CAN’T CLOSE A LOAN THAT COSTS THEM THOUSANDS OF DOLLARS

ORGINATORS SHY AWAY FROM TAKING LOANS UNDER $120000 BECAUSE DODD FRANK’S HPML RULE IS A CATCH 22

How to Resolve an HPML Issue
If you receive a notice of HPML there are a number of different ways to reduce the APR:

·         Apply a seller credit to the APR fees

·         Lower the APR fees

·         Reduce the discount (if there is one)

·         Lengthen the term of the loan

·         Increase the premium paid to the borrower

·         Reduce the note rate

 

WHAT CAN A BORROWER DO?

          Disclose vesting type upfront

          Provide existing mortgage statement

          Get cost commitments from HOA or Management Companies upfront 

      

Don’t lock upfront on a delayed purchase such as short sale or new construction if you need have no real idea of closing date.

Rancho Mission Viejo

Rancho Mission Viejo

kitchen 

 SEA COUNTRY's model home I LOVE the galvanized light fixtures

patio furniture

Patio off Sea Country's model home

For the 55+ buyers four single-story neighborhoods each feature their own character, but all offer conveniences. The entry will be gated with electronic openers (not guarded). Large community pool, Hacienda Club house, community gardens set with surrounding hillsides that hold on to their rural beauty. Orange Groves, horse stables, and hiking trails all in area create a country setting for this new community.

Exit the I-5 at Crown Valley Parkway to avoid the Caltrans construction on the Ortega/I-5 on and off ramps. Go east. At Antonio Parkway turn right and head south. Before Ortega, turn left at the signed entry.

hanging barn door indoors

RYLAND Homes Bright and airy model number two

box light fixtures marble kitchen

Kitchen so clean and white!

 The hillsides have been inhabited by native peoples, then cattle ranchers, then orange and lemon groves. Today there are hiking trails and cowboy activities with the rodeo and equestrian events. There are a couple phases to Rancho Mission Viejo and this post is about the "retirement" section. What is it they politically correct call it? It's not Senior living any more it is just for the over 55 set.

Gavilán Neighborhoods

·            Standard Pacific   and Standard Pacific Casitas: Courtyard homes

·             Shea: Single-family

·             Del Webb: Single-family detached homes

Standard Pacific | Bungalows

Spanish-modern designs single and duplex bungalows feature two- and three-bedrooms and range from 1278 to 1809 square feet.

Plan Name	Priced From	Square Feet		Beds	Baths	Garage	Stories
Plan 1A/B/C	mid $400s	1,276		2	2	2	1
Plan 2A/B/C	low $500s	1,533		2	2	2	1
Plan 2XA/B/C	mid $500s	1,843 – 1,860		2	2	2	2
Plan 3/A/B/C	low $500s	1,692		3	2	2	1

Standard Pacific | Casitas

Casitas showcase the relaxed spirit of ranch-style living. From the cook’s kitchen with its oversized island to the covered outdoor Ranch Room, these two- and three-bedroom homes with den or loft range from 1624 to 2059 square feet and feature two-car garages. They do not look like “retirement living” homes.

Plan Name	Priced From	Square Feet		Beds	Baths	Garage	Stories
Plan 1A/B/C	mid $500s	1,624		2	2	2	1
Plan 1XA/B/C	high $500s	1,900		2	2	2	2
Plan 2A/B/C	high $500s	1,787		2	2	2	1
Plan 3A/C/D	high $500s	1,748		2	2	2	1
Plan 3XA/C/D	low $600s	2,059		2	2	2	2

Shea | Single Family Homes

Single family homes on graded lots with full amenities

Plan Name	Priced From	Square Feet		Beds	Baths	Garage	Stories
Plan 1	mid $600s	1,770		2	2.5	2	1
Plan 2	high $600s	1,929		2	2.5	2	1
Plan 3	mid $700s	2,041		2	2.5	2	1

Del Webb | Single Family Homes

Spacious and energy-efficient is the idea in the Del Webb neighborhood. Dual pane windows, additional insulation, reflective roof materials and a contemporary ranch feel.

Plan Name	Priced From	Square Feet		Beds	Baths	Garage	Stories
Residence One	$830,990	2,021		2	2.5	2	1
Residence Two	$853,990	2,156		2	2.5	2	1
Residence Three	$908,990	2,325		2	2.5	2	1

Soon I will review Sea Country’s innovative homes in this tract and compare:

·             Lyon Cabanas: Townhomes  and  Lyon Villas: Townhomes

·             Shea: Townhomes

·             SeaCountry: Single-family detached homes offering three and four bedrooms in

·             TriPointe: Single-family detached homes offering three and four (optional bonus

·             Ryland: Single-family detached homes

·             Meritage: Single-family detached homes

Vote For Pretty Snail Trap

Creating garden organic art that are work as tools to get rid of snails.

Snail ranch come on in and never check out.

 

Other tools I have made effective in my suburban neighborhood of South Orange County are: my organic snail eradicator, my special stick around ladybug house, Noni’s female dog sauce elixir for no brown spots, and a host of tips of what to plant next to your tomatoes, peppers and roses to keep away pests. The problem is my tools aren’t “pretty.” I want them to be durable and beautiful rather than what I have is MacGiver recycled containers crazy glued together. This post is about a snail trap prototype that I am making and prize for your input.

Idea A.

The snail ranch will be a ceramic or porcelain house with a hole and lid that can be removed. I am thinking of making it as a simple box bird house.

 

 

 

I have not tried to my get rid of snails in suburbia using Sluggo, Ortho bug-getta, iron phosphate or any other store bought chemical. I don’t use any chemicals, poisons or fertilizers in my garden in an attempt to keep the vegetables I grow healthful and my pets safe.

Idea B

more rustic or steam punk house with muted colors and not so cheerful?

After making twenty different “snail ranches” I’m ready to build a pretty prototype to  sell. “Snail ranch”- is a nicey nice term I use for traps that capture snails that are being permanently removed from my garden. A couple of  kind gardeners posted about putting the snails they gather into zip lock bags, placing them into the freezer for a quick gentle death and others who release them into a stream. Freezing to death is might be more painful than my quick smash. My snail hut is designed to capture slugs overnight, immobilize snails until I do a manual squish. You can trust these buggers to a baggy in the garbage (I find some escape and I want them to never to return to my yard).  This is snail war.

Idea C

a simple box with printed flora and fauna?

When my children were younger paid them to gather snails in a plastic bucket with a flashlight as if it was a fun game. It has become impossible to engage in battle them as teens.  My teenage son says I ought to make the snail trap an army bunker, but that's not the pretty look I am aiming towards.

I’m not allowed to have chickens where I live (once had lovely hens who roamed around doing the chore and as hard as I try I can’t seem to encourage toads to stick around). The only natural predator easily accessible to my Orange County California yard is crows. I have trained the crows to wait around in the morning for my cup full of snails tossed into the middle of the street. The crows have become peaceful inhabitants, but that’s another story.

Idea D

a box with a real house perhaps a Dutch or English Cottage printed on the ceramic?

 

Nothing seems to easily “kill” the mollusks.  They only are slowed down by crushed eggshells, sandpaper, cinders, wood ashes, and diatomaceous earth (this will need replacing if it gets wet), work well as a barrier.

Putting mint or sage in your mulch is reported to do a good job of repelling them. Which snail trap is both cute and one you might try in your garden?

Idea E a white or bisque finish that has removable lid and hole in rear to match any garden?

Another scratchy material they don't like to cross is sandpaper. You can make sandpaper collars to put around your plants if you have the time. I don’t find this works as the paper renders worthless as soon as you water.

This ammonia mix of: 1 cup water to 1 cup ammonia and 1 tablespoon of Murphy’s oil soap to make it stick seems to piss hem off and doesn’t wreck you soil like salt. It is the AK47 of the spray bottle in the slug war but you have to find the enemy and get it on them. The slugs hate it and die quickly. Plants love the ammonia it is pure nitrogen (and some H3). Consider this the Marine Corps down and dirty battle. Personally I prefer two methods: pick and squish the big ones and leave snail ranch traps out and refill with secret bomb juice every other day. My dogs will eat the bomb juice filled with fresh escargot but they won’t eat the snails. This is not harmful to dogs.

Idea F

I love these little sculptures I would need to make the house larger- smaller than a bread box and larger than a grapefruit with a blue bird of happiness on top? or maybe threatening with a crow?

 

Please give your input on the prototype and there is a prize!

Yes anyone who votes on one of the images for the exterior appearance of my snail trap gets a two free taco coupon. Why a two free taco coupon from Jack in The  Box? It just seems funny for an organic gardener to give away junk food. Make a comment and leave some bread crumb trail to find your mailing address where I can send the taco coupon. Make two votes get two coupons… or show me some gingerbread house design that I can make out of porcelain.

More to follow - secret sauce, and the final mock up