Top Metro Areas by Mortgage Lending Volume, 2008
Top Metropolitan Areas by Lending Volume
| 1 | Los Angeles-Long Beach-Glendale, CA | $88,630,823 |
| 2 | Chicago-Naperville-Joliet, IL | $77,057,094 |
| 3 | New York-Wayne-White Plains, NY-NJ | $70,930,690 |
| 4 | Washington-Arlington-Alexandria, DC-VA-MD-WV | $53,638,942 |
| 5 | Atlanta-Sandy Springs-Marietta, GA | $39,917,873 |
| 6 | Seattle-Bellevue-Everett, WA | $38,110,276 |
| 7 | Phoenix-Mesa-Scottsdale, AZ | $37,299,327 |
| 8 | Riverside-San Bernardino-Ontario, CA | $34,543,195 |
| 9 | Santa Ana-Anaheim-Irvine, CA | $33,078,199 |
| 10 | Oakland-Fremont-Hayward, CA | $32,758,992 |
New HUD/FHA Condo Guidelines
December 7 has been set as the date for the new condo review and approval requirements. For cases pulled on and after December 7 the condo project must either be currently approved on the approved condo list at https://entp.hud.gov/idapp/html/condlook.cfm or must be reviewed and approved before the case can close with FHA financing.
HUD offers two approval options: DELRAP and HRAP.
DELRAP stands for Direct Endorsement Lender Review Approval Process and HRAP stands for HUD Review Approval Process. HUD agreed to allow experienced lenders the option of taking on responsibility for reviewing and approving some projects while choosing to submit others directly to HUD for their expertise on others.
1. The project must include no less than two units
2. All projects must be covered by hazard and liability insurance and applicable projects must provide evidence of coverage for flood insurance and fidelity bond insurance when required.
3. For projects whose master insurance policy does not include interior unit coverage, evidence of the borrower’s HO6 coverage must be obtained and provided.
4. Right of first refusal is now deemed acceptable as long as it does not subject any person to discrimination as listed or defined under the Fair Housing Act regulation 24 CFR part 100.
5. No greater than 25% of the total project’s floor space may be used for commercial purposes.
6. No more than 10% of the units can be owned by a single individual or investor.
7. No more than 15% of the unit owners are allowed to be delinquent on their HOA fees.
8. Evidence of a minimum 50% pre-sale must be presented in the form of any of the following:
A direct builder certification requires the builder to sign and certify as to the following:
The undersigned hereby certifies that in lieu of providing (1) Copies of sales agreements and evidence that a mortgagee has issued approval; or (2) Evidence that units have closed and are occupied; the Developer/Builder has attached to the signed and dated certification, a list documenting all units sold, under contract or closed (i.e., and excel spreadsheet). This information will be used to document the required minimum presale requirement of 50 percent.
Title 18 U.S.C. 1014, provides in part that whoever knowingly and willfully makes or uses a document containing any false, fictitious, or fraudulent statement or entry, in any matter in the jurisdiction of any department or agency of the United States, shall be fined not more than $1,000,000 or imprisoned for not more than 30 years or both. In addition, violation of this or others may result in debarment and civil liability for damages suffered by the Department.
9. At least 50% of the units must be occupied by owners or sold to owners who intend to occupy.
10. Projects consisting of three or fewer units must not have more than one unit encumbered by FHA financing.
Projects consisting of four or more units must not have greater than 30% of the total number of units encumbered by FHA.
HUD will be tracking the number of cases assigned in each project and the FHA concentration will be listed within the condo approval data screens at https://entp.hud.gov/idapp/html/condlook.cfm.
11. The homeowners association budget must be reviewed for adequacy to ensure sufficient funds are available to maintain and preserve all amenities and features unique to the condominium project.
Awaiting FHA's Audit Results
FHA Audit Due Wednesday Morning
11/04/2009 morning the Federal Housing Administration (FHA) will release their mortgage insider anticipated audit of its finances.
The details about how much capital is left in its single family insurance reserve fund which covers losses on its massive amount of covered homes is being awaited. FHA commissioner David Stevens has stated that the government entity and single family home loan insurer won't need tax payor money to weather the recession and housing crisis.
FHA's David Stevens told National Mortgage News last month that the stories of a mismanaged fund are essentially groundless. A spokesman for the agency said it does not anticipate releasing any results that will vary widely from "what we've already signaled."
Recently FHA has tightened its underwriting guidelines and taken administrative action against certain lenders that it believes were abusing and violating its guidelines.
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HVCC Dying Soon
An amendment would sunset the scrutinized Home Valuation Code of Conduct (HVCC) obtained unanimous support from the House Financial Services Committee last week. The legislation was created by Rep. Gary Miller (R-CA), along with many calls on regulators to work together for more reasonable appraisal standards, while simultaneously elminating HVCC.
Loan originators would be able to order their own appraisals again instead of being abused by Appraisal Management Companies (AMCs). "I supportive of ensuring accurate appraisals, I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes. In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.” Congressman Miller stated.
Since the HVCC was implemented in May of 2009, appraisers have argued that it has cut salaries in half while destroying their hard earned relationships. Homeowners also complained in droves that appraisals are valued low, causing problems for those looking to refinance or sell their properties.
realestateloans.com, housing, mortgages, interest rates, homeownership, freddie mac, fannie mae, fha, hud
Home Buyer Tax Credit Needs Boost. Stop Dabbling and Knock This Downturn Out !
Home Buyer Tax Credit Needs Boost to Stimulate
October 9, 2009
Simply extending the $8,000 first-time homebuyer tax credit will not provide much stimulus for the economy, according an IHS Global Insight economist. "The first time buyers who were going to use it would have used it already," said Global Insight economist Patrick Newport. Congress has to "expand it in some way to have any impact," he said. The Obama administration and congressional Democrats are discussing ways to create more jobs and stimulate the economy and a homebuyer tax credit extension is in the mix. The first-time homebuyer tax credit is due to expire November 30 and the National Association of Home Builders and others are pushing for an extension that expands the tax credit to all home buyers. NAHB president and CEO Jerry Howard says it would kick start the move-up market, generate more sales and construction, and create 350,000 jobs. But it would cost the government $30 billion to $35 billion for a full year. "To get the most bang for the buck, it is has to be in effect throughout the spring and summer home buying season," Mr. Howard said.
Thank You Bill Ladewig
Wonderful article from Bill Ladewig that I would like to commend him at our site Realestateloans.com The ethical loan officers in our industry are completely sick of this continued fraud and abuse by state regulated/licensed loan companies. Please view Bill's Article here:
