Danny Salas

Archive for the 'Mortgage Industry Updates' Category

FHA Reminder: MI Premiums to Increase

The News

This past Valentine’s Day, HUD announced a new change for the real estate market. For FHA Loan case numbers on or after April 18, 2011 there will be an annual Mortgage Insurance Premium increase of 25 basis points. The upfront MIP will remain the same at 1%. Any case number that is uninsured by this date will also be cancelled by FHA, with some exceptions.

What This Means

Mortgage Insurance is accumulated contingent upon loans defaulting causing loss. 15 and 30 year loans for single family mortgages will have an insurance increase of a quarter of a percent (.25).  The higher the monthly costs, the lower the loan amounts and offers for buyers. However, this means a higher income is needed for buyers and it also means less for sellers.  As of right now, FHA mortgages are low down payments and therefore a prime option for families of low income, this increase is a strategy for the economy due to the National Housing Act’s MMIF. Here is a reason for the increase given 4 days after:

 

“We determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster our capital reserves and to help private capital return to the housing market…Raising the annual premium will enable FHA to increase revenues and have a positive effect on the ongoing stability of the MMI fund, which had capital reserves of approximately $3.6 billion at the end of FY 2010…This quarter point increase in the annual MIP is a responsible step towards meeting the two percent threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.” – David H. Stevens, Assistant Secretary for Housing/Federal Housing Commissioner

 

→ At the same time, this move is expected to help FHA and therefore keep it from having intervention, which in a market full of tight guidelines is a good thing.

Check Your Pre Approvals

• 1.15 - 0.9 – = .25 point
• Per $100,000 x .25% = $250 divided by 12 months = $20.83 per month
• $20.83 a month using a 5% interest rate equals 3,880.87  per $100,000 less buying power on your loan amount.

 Illustrations of the Increase

 

 

 

Information From HUD

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-10ml.pdf
http://portal.hud.gov/hudportal/documents/huddoc?id=fromthedeskof021811.pdf

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‘Sup With Housing?

The words of the week are “Housing, Housing and more Housing”. Three significant reports were released this week and all of them do not bode well for the housing. However, and this is a big “however”, despite the negative housing reports, there are happenings in the real estate market that are not showing on any reports yet however they have me more optimistic about housing than I have been in quite some time.

Not So Great

First let me get the bad news out of the way. Existing Home Sales which were expected to rise by 2.7% in February, actually plummeted 9.6%. As for the experts that predictedsales to rise, I have to wonder where they get their information from. I know that it certainly does not come from anyone in the real estate or the mortgage business. If these so called experts bothered to ask anyone who actually writes mortgage loans or sells real estate they would have known that home sales were way off last month.

The Federal Housing Finance Agency announced that housing prices on a national basis dropped .3% in January from the prior month. Additionally, December’s numbers which originally showed a decline of only .3% actually were revised up to show a decline of 1%. It is my expectation that January’s numbers will also be revised upward and the report will actually be worse.

The final piece of housing that just completes the Trifecta of bad news is that New Home Sales reached the lowest point on record dropping another 16.9% in February. New Home Sales are at the lowest point on record and they are currently 13.9% lower than a year ago.

It was reported this week that distressed sales, which are made up of foreclosures and short sales, represented 39% of all houses sold in the prior month. Additionally, 33% of all sales in the prior month were all cash purchases which may explain why mortgage volume continues to be down in the dumps for many mortgage lenders. (I promise you there is some good news on the horizon for housing, just keep reading)

If you are in the market to purchase a home you love the housing reports because it means you can purchase a home for less. If you own a home, then you hate this report. However, I did promise you in the beginning some good housing news.

Not To Ruin Your Friday

I have spoken with at least two dozen mortgage loan officers and real estate agents around the country, and everyone one of them, yes every single one of them, told me that in the last week they have seen an increase in the number of inquiries for home purchases. Real estate agents are receiving more calls on their listing signs and loan officers are finding that more and more of their pre-approved buyers are starting to locate homes.

It is my feeling that spring fever is finally starting. Mortgage rates have dropped back down again and housing prices are incredibly affordable. Bank foreclosure filings are slowing slightly as well as loan delinquencies. Additionally we have been seeing a slight improvement in the job markets as first time unemployment claims have definitely stabilized and are even beginning to drop. When you put all of these factors together, it does fall right into the sweet spot for housing to start improving. “I believe, I believe, I believe”.

Reports due out next week are:

• Monday March 28th – Pending Home Sales
• Tuesday March 29th – Consumer Confidence and Case-Shiller House Value Index
• Wednesday March 30th – MBA Mortgage Applications and ADP Employment Report
• Thursday March 31st – First Time Jobless Claims
• Friday April 1st – Employment Situation (National Unemployment figures are released)

 

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Checking the Status of your Tax Refund

Checking the Status of Your Refund 

If you already filed your federal tax return and are due a refund, you have several options to check on your refund. Here are eight things the IRS wants you to know about checking the status of your refund:

 1. Online Access to Refund Information Where’s My Refund? is an interactive tool on http://www.irs.gov and are the fastest, easiest way to get information about your federal income tax refund. Whether you split your refund among several accounts, opted for direct deposit into one account, used part of your refund to buy U.S. Savings Bonds or asked the IRS to mail you a check, Where’s My Refund? give you online access to your refund information, 24 hours a day, 7 days a week. It’s quick, easy and secure.

2. When to Check Refund Status If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, refund information will generally be available three to four weeks after mailing your return.

3. What You Need to Check Refund Status When checking the status of your refund, have your federal tax return handy. To get your personalized refund information you must enter:

• Your Social Security Number or Individual Taxpayer Identification Number
• Your filing status which will be Single, Married Filing Joint Return, Married.
• Filing Separate Return, Head of Household, or Qualifying Widow(er).
• Exact whole dollar refund amount shown on your tax return.

4. What the Online Tool Will Tell You Once you enter your personal information, you could get several responses, including:

• Acknowledgement that your return was received and is in processing.
• The mailing date or direct deposit date of your refund.
• Notice that the IRS could not deliver your refund due to an incorrect address. In this instance, you may be able to change or correct your address online using Where’s My Refund?

5. Customized Information Where’s My Refund? also includes links to customized information based on your specific situation. The links guide you through the steps to resolve any issues affecting your refund.  For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you may be able to start a refund trace.

6. Visually Impaired Taxpayers Where’s My Refund? is also accessible to visually impaired taxpayers who use the Job Access with Speech screen reader used with a Braille display and is compatible with different JAWS modes.

7. Toll-free Number If you do not have internet access, you can check the status of your refund in English or Spanish by calling the IRS Refund Hotline at 800-829-1954 or the IRS TeleTax System at 800-829-4477. When calling, you must provide your or your spouse’s Social Security number, filing status and the exact whole dollar refund amount shown on your return.

8. IRS2Go This is the IRS’ first smartphone application that lets taxpayers check on the status of their tax refund. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.
Links:

• Where’s My Refund?

YouTube Videos:

IRS2Go  English  |  ASL  

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 *Thanks to Leo Whitton

Part One of Transitioning From HVCC to Appraisal Independence

Check out last Sunday’s Real Estate Today Radio segment with Danny Salas and Barbara Robinson of Valley Oak Appraisals and hear about changes in the appraisal process.

Tune in to Part 2 next Sunday on KPAY 1290AM at 7 to 9 PM!

 

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