February 8th, 2008 -- Posted in Lending Info |
Great news everyone!Great news as the House and Senate pass increases in conforming loan limits! The measure now moves to the President’s desk for signature and approval. Which is expected next week.Once singed, California conforming loan limit could increase from $417,000 of $729,750. However, it may take months for lenders to gear up to have the underwriting limits in place. Also important it that it allows the government to buy loans in that range that were originated as far back as July of 2007, allowing lenders to get those stagnant loans off their books and sold to government sources. A huge boost for market liquidity!Remember, conforming loan rates are as much as 1.0% or better than Jumbo loan rates, a huge boon to our potential buyers as well as the refinance market!For example once the new limits are in place, a $900,000 purchase with 20% down payment is a conforming loan of $720,000. This is a huge stimulus to our low to middle market that is bound to trickle up to higher end purchases as well.Three important excerpts from the Inman news report as follows. Quote:Bush administration officials renewed their calls for Congress to pass legislation tightening oversight of Fannie Mae and Freddie Mac Thursday, as Congress signed off on a plan to allow the companies to guarantee or purchase loans that exceed the $417,000 loan limit.The increase, to as much as $729,750 in high-cost areas, will also apply to Federal Housing Administration loan guarantee programs. Because the increase will be capped at 125 percent of the median home price for an area, the conforming loan limit will remain at $417,000 in markets where the median home price is $333,600 or less.James Lockhart, director of the Office of Federal Housing Enterprise Oversight, said underwriting the larger loans will require new models and systems, which could take months to put in place. As Fannie and Freddie get set to venture into what is now jumbo loan territory, Congress must act quickly to ensure they don’t put themselves — and the entire financial system — in jeopardy, Lockhart said. Unquote: Stayed tuned for more news as the lenders gear up and we start accepting loans at these higher limits. I’ve attached a PDF of a full article from Inman News or you can go to the link directly here http://www.inman.com/inmannews.aspx?ID=66047
February 4th, 2008 -- Posted in Lending Info |
Hi Everyone,  I just got this from a Lender and this is HUGE!!! This should help Buyers get great pricing and help some Sellers sell.Of course there are several conditional words: -temporary increase-as much as $729,750-senate and president must pass Let’s see what happens.Â
“Yesterday, the US House of Representatives overwhelmingly passed HR 5140 – an economic stimulus package that includes a temporary increase in the conforming loan limit and the upper threshold for FHA loan programs to as much as $729,750 in high-cost areas. Now the Senate must pass it and the President must sign it. It is suppose to happen by Feb. 15th. This will allow people with Jumbo loans to get conforming pricing!â€
February 4th, 2008 -- Posted in La Times |
Real Estate Down payments just got biggerBuyers in so-called risky areas will need to pony up more cash at purchase time.By Kenneth R. Harney, Washington Post Writers Group
February 3, 2008 WASHINGTON — Critics call it the new redlining: Many of the country’s largest mortgage lenders are imposing restrictions on entire counties or ZIP Codes that they rank as risky or declining.
Countrywide Bank sent mortgage brokers a list on Jan. 25 that categorized hundreds of counties as soft markets with rankings from 1 to 5, in ascending order of perceived risk. In areas rated in Categories 4 and 5 — roughly 100 counties in metropolitan areas nationwide — Countrywide said it would now require larger down payments from most applicants.
If a loan program previously allowed a minimum 5% down payment, applicants will now be required to come up with double that amount — 10% — to qualify.
Riverside and San Bernardino counties are both ranked as Category 5, and Los Angeles, Orange, San Diego, Ventura and Santa Barbara counties are in Category 4.
An additional 970-plus counties are rated more moderate risks, in Categories 1 to 3, with 5% down-payment increases if an appraisal report indicates there is an oversupply of houses for sale or a marketing time over six months.
Other national lenders have their own such lists. Minneapolis-based GMAC-ResCap even has a website allowing loan officers to type in a ZIP Code and learn whether the area is ranked as risky.Restrictions imposed by Fannie Mae late last year have prompted lenders to compile area-by-area risk ratings and impose down-payment penalties. In a notice to lenders on Dec. 5, Fannie Mae said all loans delivered after Jan. 15 of this year on properties in declining areas would be subject to higher down-payment requirements. The company’s electronic underwriting system began flagging selected markets as high risk last summer.
Critics charge that such requirements are unfair to homeowners and buyers whose properties are in sub-markets or neighborhoods within those jurisdictions that may not be declining in value, or not by enough to justify punitive underwriting requirements.
Ted Grose, president of Los Angeles-based 1st Mortgage Advisors Inc., said labeling entire counties as declining is “ridiculous — it totally fails to distinguish between areas where prices are rising or relatively stable and other neighborhoods or communities where they are not.”
Paul Skeens, head broker for Carteret Mortgage Corp., in Waldorf, Md., said he had observed that the county and ZIP Code designations “have their heaviest impacts on areas with high proportions of minority groups and people with moderate incomes who bought houses” through low- and no-down-payment programs.
Brian Robinett, chief credit and operations officer for wholesale lending at Countrywide, rejected the criticism. “It would be hard to make the case” of redlining against the company’s ratings, he said. After all, he said, a wide variety of property types, income levels and ethnic groups are “equally affected” by every risk ranking.
So, if a lender has tagged your area, you’re going to need more cash upfront.
February 2nd, 2008 -- Posted in Uncategorized |
BOOK REVIEW
Two new books on the art of feng shui
Two new books on the art of feng shui
By Amy Hubbard
Los Angeles Times Staff Writer
January 20, 2008
It wasn’t until I read two new books on feng shui that I realized the mirror facing my living-room window was bouncing good energy out into the frontyard, my sink and stove were locked in a power struggle and a hunk of my house was completely missing.
I told my husband this, and he cocked an eyebrow and continued to read the paper.
Reading these books about the ancient art of object placement from a Western (read: “narrow”) viewpoint, it’s easy to shake your head at some assertions. Neither book sets out to persuade readers of the merits of these beliefs. Rather, the authors assume you have an interest in the subject. And it’s tough not to be curious as proponents — and books on the subject — multiply.
MaryAnn Russell’s stated purpose in “The Feng Shui Factor” is to demystify the Eastern art and make it useful for Western readers. Does she succeed? Partially. Some points remain a mystery. Advice is given without sufficient explanation. For example: If you are living in a home that is next to a hospital, mortuary or cemetery, keep an exterior light on 24 hours a day. Or: Avoid placing pictures of living people on the mantel. Why?
Russell’s advice on exterior feng shui, such as less desirable locations and house shapes, may benefit those serious about the practice who are looking for a home. I simply found it perplexing to read that the irregular shape of my house meant a piece was “missing” (turns out it’s the part that governs wealth, which may explain my bank account). Russell does offer remedies, which include creative landscaping.
Her advice for using feng shui indoors was fun to read and more practical for someone staying put. Lose the clutter, she says. It makes sense, even if you don’t buy the theory behind it (lack of energy circulation may affect your health).
“Sell Your Home With Feng Shui” takes a different perspective — that of the seller. It centers on incorporating feng shui as a staging technique, and authors Christine Ayres and Cindy Coverdale note that some advice doesn’t apply to those who want to remain in the house. It pinpoints areas of negative feng shui (too many outside stairs to reach the doorway, for example, which may make every walk into the house feel like a struggle). Then it offers fixes to help lure buyers (decorate the landing; create a seating area with plants and a bench part of the way up as a spot to sit and pause).
This book too has advice that may leave novices feeling quizzical. Such as the “Bagua Mirror Cure”: The small, octagonal mirror is “a tool for pushing away energy that doesn’t belong to you and that you do not wish to accept.” The authors say it doesn’t even have to be visible to have an effect: Hang it behind the window draperies and buyers may not even notice the view of the neighbor’s junk-filled yard. And if the property keeps falling out of escrow, putting a weight in the buyer “gua,” or right front area of the property, is said to help.
There is some advice I’ll follow; other advice, perhaps not. I probably won’t remodel my kitchen to move my sink and stove so they’re not in direct opposite alignment (apparently the fire and water elements conflict, causing agitation and arguments). However, I will go ahead and take down that mirror. Never liked it anyway.
Placed toward the center of “The Feng Shui Factor” (symbolizing a balanced view, perhaps?) was a bit of wisdom from the author: Correcting feng shui in your home is just one factor in improving an area of your life. Such corrections can be a catalyst for improvement by compelling you to take action toward change.
Now that I buy.
amy.hubbard@latimes.com
