Ring in the new year with a new low mortgage rate! Refinance with us and save some money! Apply today @ http://globalhomefinance.com/apply.php
I'd like to say that there are no illusions in Washington D.C., but I can't.
Remember that just because a bureau doesn't have a director doesn't mean
that it can't set rules, policies, and carry out extensive audits! The
Senate said "no" to confirming Richard Cordray as the director of the CFPB,
which brought this response from President
Obama: "I will not take any options off the table when it comes to getting
Richard Cordray in as director of the Consumer Financial Protection Bureau.
The bottom line is, we're going to look at all of our options. My hope and
expectation is Republicans who blocked this nomination will come to their
senses." Republican leaders said they intended to combat Obama's
recess-appointment threat by keeping the Senate technically in session
throughout the holidays. Read all about the mess at: MerryChristmas
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108942647792&s=8721&e=001ODREUO
aVYfwbbLMUw684sXo4cvEGyYm_3Y3wZ3DzTg5zSQIK-zYTNo5JBB3NAYKqvCI0zK2w_AazAvYWzB
mc25mPglBLRtU-7qfBKX5v7syQngFqQJp4nih8Xrebz2OP-JMCcQJgkIXKJmYUZAaxTbeooMYEOD
MJKGBGBHVxHVKSzanlODPx6gqpkzBOn3iVYy4NyjJTwuVno2CQayqML7ISLtuszvkgZtGGI9mCd4
oPnVlsCU13sW49PNoilXXvwfoxz8r5AKw=].
"Rob, one loan program that seems to be forgotten or arbitrarily lumped in
with the FHA program is the VA Home Loan Program, which allows veterans and
service members to attain a federally guaranteed home without a down
payment. The program is enveloped in a set of rules and requirements,
beginning with stringent eligibility requirements that veterans, active
duty, guard or reserve, and military spouses must meet to obtain a
Certificate of Eligibility through the Veterans Administration. Although
loan approval is not guaranteed once a certificate is awarded, the
certificate allows those who are apply for a VA home loan
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108942647792&s=8721&e=001ODREUO
aVYfxXWm472vmASKhpgdzTMTvpac7aCsWTLFv8IhdRoiHZ673oIy1vRLkS6e93BDLX6XmhuswmOT
-9OtQb6y7ykBp7XHlF7sX-YNikDA6kk4e5bKuCHzl9RS04]).
Additionally, there are occupancy requirements to make sure the homes will
be used as a "primary residence." In order to seal the deal on their VA
loan, potential homeowners must prove they will use the residence they are
purchasing within a "reasonable time," which is typically two months
following closing on the loan or by the time the house is finished for
custom built properties. There are also ongoing occupancy requirements that
impact individuals who travel frequently or spend long periods of time away
from home, in addition to serve members who may be up for deployments and
permanent change of station orders." So wrote Kevin Peria with Veterans
United.
Kevin continued, "The loans are still made through private loans just as
other home loans are, but are backed by a VA guarantee for a maximum of 25
percent of a home loan amount up to $104,250, which limits the maximum loan
amount to $417,000. Borrowers can borrow the reasonable value of the
property or the purchase price, whichever is less, in addition to the
funding fee. The VA Home Loan Program is just one of many public services
provided to veterans as a result of the original GI Bill. These veterans
programs have been supplemented through the Post-9/11 GI Bill and the
Veterans Opportunity to Work Act of 2011, which passed in November: VAAct
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108942647792&s=8721&e=001ODREUO
aVYfwuMUNyGArXgfvZEIDsFJPuHv4JfL8LRSk79S4eZnWHhQhXHOUmcYxnZbOFiBJVaf3diynevf
gn7flHF_uR3LUhtR88QxRgONmmzIOzOkURS_hRAz3txCzPIeCIi29BLGYVCh0jDmHxkpYkIdoYSO
1p-YsUO__F1To=].
"The most recent legislation, known as the VOW Act
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108942647792&s=8721&e=001ODREUO
aVYfzoLCZdRB-D6MHDYhvLRVZ71M59zYfM5OpdQtJugi7JTCXAORQ6HNrMdzFE-NP_ebVQDwVTOQ
hmCu-eabONAOQFkQm5UFrgLN51eeCe3LD_bg==],
provides significant tax credits to businesses hiring unemployed and
disabled veterans.
Additionally, the law builds on an existing education and jobs retraining
program for unemployed veterans and establishes a new project helping the
Labor Department to determine new ways for veterans to utilize their
specialized training to obtain licenses needed for certain civilian jobs.
Also signed at the same time as the VOW Act was the Consolidated and Further
Continuing Appropriations Act of 2012, which renewed the expired higher loan
limits for VA loans for another two years, through Dec. 31, 2013. For next
year, the loan limits for counties in the contiguous U.S.
will be between $417,000 and $625,000, depending on the median county price.
There were no decreases in loan limits as a result of the legislation." (If
you have any questions, write to Kevin Pearia at kpearia@veteransunited.com
Yesterday the commentary discussed the FHA program for underwater borrowers
with negative equity, and I received these corrections Joel Harrison: "The
program has been extended to 12/31/2013, and the product's compare ratio has
been separated in Neighborhood Watch but Ginnie has not indicated that they
are separating it when considering an Issuer's delinquency ratios. In case
any of your readers are interested they can contact me for an outlet to
originate these loans (broker or correspondent) at
I also received notes asking, "Why would borrowers continue to make car loan
payments when they know that as soon as they drive it off the lot it is
worth less than the loan and not make payments on home loans?!"
Also, "I would like to comment on your response to the AE in CA regarding
the upside down equity position. First, I agree with you that in a normal -
or even a slightly unusual market - a homeowner should honor his commitment
to the lender. Simply walking away from a debt obligation should not be
minimalized. However, these are not ordinary times and these are not
ordinary circumstances - look at the predominance of short sales. Aren't
these people in essence walking away from their financial obligation to the
bank? Homeowners today are faced with a still-declining market and the
concern is not whether they can afford their home, it is whether they can
afford to sell their home 2, 3, 5, or 7 years from now without penalty.
Perhaps it is better to walk away now than to deal with damaging additional
financial consequences in the future when tax forgiveness is no longer
available. I agree that an owner should do everything possible to repay
their debt, and I am angered and frustrated with former homeowners who walk
away from their obligation without any sense of remorse (and I have spoken
to several who have done so and feel quite justified with the decision).
"However, tell this to the homeowner in my neighborhood who bought his home
in good faith for $670,000 in 2007, only to see the same model across the
street sell for
$438,000 a few months ago. Is there really a likelihood that the property's
value will increase over $200,000 in the next 5 years? How about 10? Forget
about equity, the concern is what if their family income changes during this
time, affecting their ability to handle the payments? Oh, and they are
currently in the 4th year of a 5-year fixed ARM at 6.50% (I/O) that they
obviously cannot refinance out of and they won't qualify under HARP II
because the loan is not Fannie or Freddie? Let's not forget that THESE
people bought the home in good faith, only to be betrayed by an economic
meltdown that was heavily impacted by corrupt lending practices and a
government they trusted to look out for their best interests. These people
are looking for help and a solution. What happens when their loan goes
fully amortized and they cannot refinance due to equity issues? So, again,
while I agree with you that a homeowner should do everything possible to
meet an obligation, we also need to acknowledge the magnitude of these
historic circumstances and understand that there are victims of the economy
and of our housing crisis. It is in our collective best interests to look
for solutions. People like this homeowner want to stay in their homes, but
at some point in time reason has to come in to play along with the
resignation that they are fighting a losing battle. Integrity and common
sense collide - and we all lose this battle."
Turning to the markets, rates really aren't doing a heckuva lot. But at
least they're drifting lower: the 10-yr T-note closed at 1.97% and MBS
prices improved by about .250. Whether or not that is passed on to LO's
remains to be seen, however. The economic week winds up this week with the
International Trade Balance (expected to be narrowly wider at -$44 billion
but which came in at a 43.5 billion deficit) and at 9:55AM the University of
Michigan Survey.
In Europe, the EU leader's summit offered some preliminary takeaways. The
European Council released a statement overnight detailing elements of a deal
reached during phase 1 of the summit talks. Things are subject to change,
but the broad contours of this agreement look like they will stay in place -
we'll learn more during a press conference today. The deal looks a bit
better than investors were thinking as 23 of the 27 EU Leaders have agreed
to adopt a new "fiscal pact" that "significantly coordinates" economic
policies (the UK is a big holdout although it wasn't expected that all 27
would get on board w/this type of a deal). In the early going we find the
10-yr back up to 1.99% and MBS prices worse by about .125.
NATURAL BORN CITIZENS BEWARE.....
This just might make your day a little brighter!! You, who worry about
Democrats versus Republicans--relax, here is our real problem.
In a Purdue University classroom, they were discussing the qualifications to
be President of the United States. It was pretty simple. The candidate must
be a natural born citizen of at least 35 years of age.
However, one girl in the class immediately started in on how unfair was the
requirement to be a natural born citizen. In short, her opinion was that
this requirement prevented many capable individuals from becoming president.
The class was taking it in and letting her rant, and many jaws hit the floor
when she wrapped up her argument by stating, "What makes a natural born
citizen any more qualified to lead this country than one born by C-section?"
Yep, these are the same kinds of 18-year-olds that are now voting in our
elections! And they walk among us.
If you're interested, visit my twice-a-month blog at the STRATMOR Group web
site located at www.stratmorgroup.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106435366068&s=4179&e=001SVt-lj
bp53436QjxD9vbwURtIPPjV05jEcEKyBN3SjS2forXe0C_foO8RjEV-Uye0N7Z_Sh1il0SRXPx6P
jQauayNXQjni-Hc9Sseu-hhZcR1ujeZyAEpw==]
. The current blog discusses the time frames for borrowers returning to
A-paper status after a short sale or foreclosure. If you have both the time
and inclination, make a comment on what I have written, or on other comments
so that folks can learn what's going on out there from the other readers.
Rob
(Check out
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=qp7dcziab.0.epg7qedab.zy6u9cdab.8
721&ts=S0708&p=http%3A%2F%2Fwww.mortgagenewsdaily.com%2Fchannels%2Fpipelinep
ress%2Fdefault.aspx]
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=qp7dcziab.0.v7uif6dab.zy6u9cdab.8
721&ts=S0708&p=http%3A%2F%2Fwww.thebasispoint.com%2Fcategory%2Fdaily-basis].
For archived commentaries, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=qp7dcziab.0.fpg7qedab.zy6u9cdab.8
721&ts=S0708&p=http%3A%2F%2Fwww.robchrisman.com%2F].
Copyright 2011 Rob Chrisman. All rights reserved. Occasional paid notices
do appear.
This report or any portion hereof may not be reprinted, sold or
redistributed without the written consent of Rob Chrisman.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~
Join My Mailing List
[http://visitor.r20.constantcontact.com/email.jsp?m=1102827910937]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~
Forward email
Instant removal with SafeUnsubscribe(TM)
TmggCt&t=001RhkC6BlIPBuxQDrSwBXsfw%3D%3D&llr=zy6u9cdab
Privacy Policy:
Online Marketing by
Constant Contact(R)
Chrisman Inc. | 24-G West Main Street #386 | Clinton | CT | 06413
No comments:
Post a Comment