Texas Home Loan Blog

FTC Cracks Down on "Free Credit Reports" That Just Aren't

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Wed, 10 Mar 2010 16:06:42 -0600

Finally, something that makes sense....

Via Eleanor Thorne 919-649-5057 Cary Mortgage Loans (First Financial Services, Inc):

I'm tired of that "F-R- Double E Spells FREE" credit report commercial! Because what they are "hawkin' is NOT free!
Thankfully, on March 3, 2010 the Federal Trade Commission file a revision to the Free Annual File Disclosure Rule to address the abuses and deceptive advertising for Free Credit Reports. This was part of the new Credit Card Accountability and Responsibility Act 2009.

The new disclosure is available now, but must be used after April 2, 2010, per the FTC ruling... however the Radio and Television Ads don't have to go off air until September 1, 2010 (although the advertisements must adhere to the interim disclosure in the Credit Card Accountability Act until then.)

"The pre-existing requirement to make a free annual credit report available to consumers applies to consumer reporting agencies that operate on a nationwide basis. The new marketing requirements apply to parties that offer free credit reports. For purposes of the requirement, a "Free Credit Report" is a file disclosure prepared by or obtained from, directly or indirectly, from a nationwide consumer reporting agency that is represented, either expressly or impliedly, to be available to the consumer at no cost if the consumer purchases a product or service, or agrees to purchase a product or service subject to cancellation."

I think this is GREAT news for consumers who have been PAYING for what services they don't need!

If you are looking for credit repair from someone who cares about your situation, and will show you how to immediately, and over time imporve your score - please call Steve Thorne, Credit repair specialist 919-649-5058 also check out this site ... it's all about credit repair and dispute information!

Last chance for First Time Home Buyers and other tax credits?

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Wed, 24 Feb 2010 21:00:30 -0600

Some good advice from a friend of mine. Pay attention to the timeline.... Don't lose out on the Tax Credit

Via Ken Cook, FHA Home Loans 678-439-8683:

At the time I was writing this post we had 69 days and nearly 22 hours left to get those contracts signed and executed. Let me explain - that's almost not enough time.

By the time you, as a home shopper, get approved for a mortgage (should always be the first step unless you truly are paying cash), find the home you are looking for, make an offer, get it back - not including the time it takes to negotiate price if that comes into play, get the inspection and appraisal done and get your loan to closing about 30 days will have passed. That is for a smooth shopping event followed by a smooth loan event.

My company generally closes loans in less than 21 days from contract to close but we rely heavily on many other moving parts including the title company (closing attorney), the appraiser, the seller (if it's a bank add a few to several days to the process), your insurance agent, the appraiser, and you to get everything to us we need. Yes, we can, have and do close faster. Be careful about closing times and what companies call the process. For example from the time we have everything required to close the loan until closing occurs can and has been as little as 2 days. Of course it often takes a week or two to get to that point. That's why we say 21 days from contract to close.

What I am say is if you are planning on taking advantage of the tax credits which have been offered for several months you need to get off your duffus and start making offers.

Step One - Get Pre-Qualified

Now because of some lovely time restraints and new federal regulations you can't really get fully qualified until you have accepted a Good Faith Estimate of Settlement Costs. You can't, legally, get a Good Faith Estimate of Settlement Costs until you have a property address. So while there are some caveats in there until the regulation is rewritten your pre-approval is just that ... pre.

Step Two - Go Shopping

Do NOT go buy a new truck because you just found out your credit is good. Do NOT apply for new credit of ANY kind including store credit down at the MegaLo Mart. You have one purpose in life and that is to find a property that can be financed with the type of loan you are pre-qualified for. This may or may not be a "fixer-upper" and if it is a "fixer-upper" you really are waiting until the last minute.

Step Three - Move Quickly

Don't be the reason your home loan is delayed from being underwritten. Get all of your documents to the lender when they ask for them. Be the person who makes the processor say, "Wow! They had this to me within 10 minutes!" Especially if you are purchasing with an FHA 203k Streamline loan you want to make sure you get started now. If you are using one of the community down payment assistance programs or a USDA rural loan program that will take longer as well.

Take advantage of it NOW because the chances of it being extended yet again are slim to none.
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683

Teach it.... Preach it.... Teach your fellow Real Estate Pros the power of activerain

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Mon, 22 Feb 2010 20:36:57 -0600

I am partnering with Cammie Winover and Winover Insurance to deliver an introductory course about blogging to Realtors in the Dallas area.

Contact Cammie for great Texas Insurance Rates TODAY!!

Original content posted at my Texas Home Loan Blog.

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

UPDATE YOUR VIRUS DEFINITIONS TODAY!!!!

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Fri, 19 Feb 2010 11:56:40 -0600

UPDATE YOUR VIRUS DEFINITIONS TODAY!!!!

Kneber Botnet
is a new virus after financial info.

ALSO.... searching for info on Kneber can result in you stumbling onto a malware site. Be careful.
If you search for info on this virus, click only on trusted news source links and beware of spoofs.

http://tech.yahoo.com/blogs/null/160728/beware-kneber-search-results-lead-to-malware/

This has been a public service announcement from The DallasLoanGuy

Have a great weekend everyone!!!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Video Blog- "Is The FDIC Killing Short Sales?"- A MUST WATCH

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Tue, 09 Feb 2010 23:15:50 -0600

Interesting.....

Do NOT miss this....

Via Robert G Hertzog (Summit Home Consultants):

Video Blog- "Is The FDIC Killing Short Sales?"- A MUST WATCH

Many of you read the blog I wrote in September/2009, entitled "Is The FDIC Killing Short Sales?" In the blog, I explained how OneWest Bank, who had received a sweetheart deal from the FDIC called a "shared-loss agreement", was holding my client hostage for a $75,000 promissory note demand.

In the end, once I reminded them of how much money they were getting from the FDIC, they agreed to drop their demand for the promissory note, and the short sale closed 3 weeks later.

Today, they guys at "Think Big Work Small" did a great video blog, describing my case. If this doesn't get your blood boiling, I don't know what will! Take 5 minutes out of your busy day to watch this video. It does a great job of what could be causing your short sales to stall.

Video Blog-"Is The FDIC Killing Short Sales?"- A MUST WATCH

Please Please Please do your part and re-post this blog to everyone you know. The "Think Big Work Small" website gets several thousand hits per day, and this story needs to get out!

Bob Hertzog

Designated Broker-Summit Home Consultants

www.phxshortsalehelp.com

P.S.- "Think Big, Work Small" did a follow-up to the story yesterday. Fast-Forward to the 1:50 mark to view it.

Video Blog-Follow Up

Hey Texas... FHA Streamline Refinance Rates below 5%

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Tue, 01 Dec 2009 16:37:38 -0600

FHA Streamline Refinance Rates

Wow! Below 5% on a non-qualifying(mostly) loan. Still need a 620 credit score and job is verified. However, we do not calculate income/debt/assets.

A refinance is not for everyone..... But there is no charge to have a mortgage analysis done by your professional loan officer.

Call today for your free consultation!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Todays Announcements

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Wed, 20 Jan 2010 16:20:40 -0600

From the Horses Mouth..... So to speak.... (sorry David)

FHA Commissioner David Stevens explains the need for a few changes to FHA

Via David H Stevens (United States Dept. of HUD):

Today I will be announcing a series of changes to FHA that will affect some of you. As you read about them, please note a few key points.

FHA fell below is legislated requirement to have 2% in excess capital for reserves above and beyond forcasted losses. Being below this 2% requires me, by law, to make changes to get the funds reserves back over 2%. Virtually all of the losses are from 2006, 2007, and 2008 book years. These are the worst years in the housing crisis from an origination standpoint and they contained programs like the SFDPA (seller funded downpayment assistance) that have extremely high default rates.

The changes announced today will get the reserves up and put in place some controls to protect the fund and FHA for the long term, while making sure not to overly, adversely, impact this housing market at a critical time.

You can read about these in any major newpaper today or perhaps tomorrow, but please understand that these are necessary to keep FHA functioning. Without some tightening, we would be under extreme scrutiny and the lack of fiscal soundness could threaten FHA for the long term.

The housing market is slowly coming back to life in many markets across the country. Let's keep working at making this american dream of homeownership be part of a safe and responsible system for the long term.

Thanks for listening and for being a professional in this industry - it's why I post here in active rain - this place is filled with real pros.

Have a geat day.

FHA Non Occupying Co-Borrower

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Tue, 01 Apr 2008 15:11:32 -0500

FHA Non Occupying Co-Borrower rules in a nutshell.

Typically called a 'Kiddie-Condo' loan. FHA allows family members to help their kids buy their first home. Whether they are in school with no income or out in the real world and just need a little extra income to qualify.

FHA allows for a family member to be a non-occupying co-borrower in order to assist in qualifying. This is available when your borrower would qualify for the loan when considering their credit but they wouldn't qualify because of debt ratios, employment, income and assets.

Adding a NOCB does not resolve credit issues!! The occupying co-borrower must be credit worthy or have no credit at all. Bad credit will kill the deal. No credit - no problem.

The occupying co-borrower does not have to be employed and does not have to invest in the transaction.

The DallasLoanGuy Originates, Processes, Underwrites, Closes & Funds FHA Loans in-house. We offer manual underwrites down to 620 FICO.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan for Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

Don't pay to have someone file your Homestead Form. It is FREE!

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Tue, 08 Dec 2009 22:57:51 -0600

Good info for first time homebuyers. You will get lots of offers after you buy a home as the transaction is a public record.

Via Jeff Kessler ABR,GRI, Texas 512.801.5666 (Austin Homes, Realtors www.CentralTexasHomeRebates.com):

So you may have bought a new home this year, if so, congratulations. The home buying process can be a fun and interesting process. Hopefully you had a good experience.

Most likely when you closed on your home you went to the title co and signed a ton of paperwork.

In that paperwork is probably a form to fill out so you can get your homestead exemption. If not I will post a link for you at the bottom to find your Taxing Office.

Come Jan 1st you can then file for your homestead, but not before the 1st. You have till April 30th to get the form in.

Now is the important part.

Watch out for scams. You will most likely get a very official looking notice in the mail that says "company name" will file your homestead for $25. All this company does is fill in your information and fax the form to the Tax Office.

THIS SERVICE IS FREE so please don't pay anyone to do this for you. Just send in the forms yourself.

Here is the link to the Tax Appraisal offices. http://www.txcountydata.com/selectCounty.asp If your county is not in the drop down box then visit this link. http://www.txcountydata.com/links.asp This site does not have all the counties, but it is a good start.

Enjoy saving money this Jan 1st.

Here are a few more ways to save money on your next home purchase or let a friend know how to save.
That would be a great holiday gift.

For new home anywhere in Texas purchases please see http://www.RebateOnTexasHomes.com

For resale home purchases anywhere in Central Texas please see http://www.CentralTexasHomeRebates.com

Wondering what is wrong with your Appraisal?

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Sat, 05 Dec 2009 10:15:04 -0600

Everyone in our industry needs to get involved here.

Sign the petition

Via Gynell Stalford - Texas Cert. Appraiser *****FHA & FLAGSTAR APPROVED***** (Metroplex Appraisal Services - The FHA Appraisal Shop):

This might help.

http://www.thinkbigworksmall.com/mypage/archive/1/4916/

Please sign the petition and help change this.

http://www.hvccpetition.com/

Gynell Stalford

Metroplex Appraisal Services - FHA & FLAGSTAR APPROVED

Commerical & Residential Appraisal & Consulting Services

Serving Collin, Dallas, Rockwall, Kaufman and Tarrant Counties.

Xerox is doing it again this year - send a card to a soldier

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Sat, 05 Dec 2009 09:55:50 -0600

This is real.... Support the troops with a personalized card!!

Via Dave Rosenmarkle (Highland Realty):

XEROX IS DOING SOMETHING COOL

If you go to this web site, http://www.letssaythanks.com/ you can pick out a thank you card and Xerox will print it and it will be sent to a soldier that is currently serving in Iraq. You can't pick out who gets it, but it will go to a member of the armed services. It is FREE and it only takes a second. Our soldiers over there need to know we are behind them. This takes just 10 seconds and it's a wonderful way to say thank you. Please take the time and please take the time to pass it on for others to do. We can never say enough thank you's. Thanks for taking to time to support our military!

Foreseeably Harder Approvals: FHA gets tough

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Thu, 03 Dec 2009 16:13:42 -0600

Some good info here from a friend and fellow loan officer in Georgia!!

Via Ken Cook, FHA Home Loans 678-439-8683:

For many years home mortgage insured by the Federal Housing Administration (FHA) have made home ownership possible for millions of home owners. During the "boom" FHA loans lost a lot of ground in the marketplace because non-conforming loans were often easier to get and cost the borrower less scrutiny and often less out of pocket. (More on Examiner.com from my article this morning.)

Welcome the day when Housing and Urban Development Secretary (HUD) Shaun Donovan stood in front of Congress and reported the reserves of the FHA insurance pool to be only .53% - far below the federally mandated, by law, 2% reserves. As you may imagine Mr. Donovan, in an effort to save his job, is now scrambling for good ideas to get those reserves back to the minimum legal level. Let us all observe as the fireman tries to put out a big fire while his own pants are on fire.

Here are some of the recommendations thus far:

Raise the required minimum down payment from 3.5% to 5%

Lower the maximum seller contribution from 6% to 3%

Establish a required minimum credit score

Eliminate the ability to finance the Up Front Mortgage Insurance Premium (UFMIP) into the loan

Raise the cost of FHA mortgage insurance (higher premiums)

Currently it is much more difficult to be approved for a home loan, purchase or refinance, than it was two years ago or even six months ago. Mortgage brokers are not dropping like flies they have already dropped like flies and the remaining small percentage are having great difficulty getting loans underwritten and closed when they involve lower credit, lower income borrowers. Mid-level lenders are now the ones who are disappearing as they still lose warehouse lines of credit at an astonishing rate. This week saw the demise of LendAmerica.

Judging from the applications I have accepted and closed over the last few months these changes will absolutely impact at least 25% of the borrowers who have successfully purchased or refinanced their homes in the last few months. In fact I have two borrowers today who easily qualify who will likely not qualify if these changes are made. Considering I'm one out of tens of thousands go ahead and do the math.

Just wait ... it's not only FHA - it's Fannie, then Freddie and Ginnie. We predicted it a few months ago that it would not be long until buyers would need a minimum of 5% down, a minimum of a 640 credit score and rates would start to rise.

Are you ready to pay attention even if you don't get CEs for participating in the conference calls? If I were an agent I would be - I would want to be ahead of the curve!

Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683

General Mortgage Loan Guideline Changes - Regarding Debt Ratios

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Sat, 21 Nov 2009 16:52:06 -0600

Mortgage Loan Guideline Changes

Capital Market adjustments to guidelines:

Conforming Fannie Mae & Freddie Mac Debt Ratios:

Effective on loans funding after December 12, 2009 the maximum debt ratios are as follows. References to DU 8.0 are due to the pending update to Desktop Underwriter(automated underwriting).

* DTI > 45% must be approved thru DU Version 8.0
* Fannie Mae indicated that debt ratios exceeding 45% require compensating factors. Fannie does not publish a list of compensating factors and it is unknown whether DU 8.0 will approve above 45%

FHA, VA, USDA & Bond Program Loans:

Effective with loans funding on or after December 12, 2009 the maximum debt ratios are as follows.

* Maximum DTI 50% regardless of AUS(automated underwriting) Findings.
* DTI 45% - 50% at the sole discretion of the underwriter who will require measurable compensating factors, including, but not limited to 12 months verified housing history with no late payments. Limited payment shock. Cash reserves. Possible increased down payment.

Minimum FICO on ALL LOANS will be 620..... Gov't or Conforming.
Get ready for 640+ credit score requirements as I believe the tightening will continue.

Borrowers need to prepare themselves to provide more documentation than ever before. Realtors... prepare your clients!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Non Purchasing Spouse with Texas FHA Loans

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Sun, 22 Nov 2009 14:04:36 -0600

Non Purchasing Spouse with Texas FHA Loans

The non purchasing spouse is a married person NOT on the mortgage loan. But there is special treatment of the non purchasing spouse with respect to FHA Mortgage Loans in Community Property States like The Great State of Texas.

A non purchasing spouse situation arrises when for whatever reason one spouse is left off of a mortgage loan. Typical reasons are that one spouse has bad credit and the other spouse can buy the home solely on their income and credit.

In Texas, as all community property states, the non purchasing spouse will have their credit pulled. Debt payments not showing on the Purchasing Spouse's credit will be added to the loan application and as a result affect the debt ratios on the loan. This is to assure that there aren't any 'Household Debt' that would affect the ability to repay the loan. <= Which simply means, that the non purchasing spouse cannot hide the $700/month lease payment on their Lexus from FHA.

Borrowers in this situation should work with a lender who understands the guidelines and can offer a Conforming option to their borrowers.

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

FHA Streamline Refinance Changes

Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com) — Sun, 22 Nov 2009 09:49:02 -0600

FHA Streamline Refinance Changes

We have seen tightening of all loan guidelines.... And the same is true for the FHA Streamline Refinance Loan.

Key Revisions:

* Seasoning: At time of application the borrower must have made at least 6 payments.

* Payment History: For mortgages with less then 12 months payment history, all payments must be paid on time. For mortgages with more than 12 months history, no more than one 30-day late is allowed.... and the previous three months must have been made on time as well.

* Net Tangible Benefit: The lender must determine that there is a benefit to the borrower making the loan. A reduction in PITI(payment) or refincing from an ARM to a fixed rate or reducing the term of the loan. See your preferred lender for the fine print.

* Certifications & Verifications: Employment must now be verified. And any cash to close funds must be verified.

* Credit Score: Most lenders require 620 FICO score.

* Maximum Combined Loan-to-Value: If subordinate financing(2nd lien) is to remain in place then the maximum CLTV = 125%

With or without an appraisal, this is still a very good loan for those who purchased back when rates were a little over 6% and would like to lock in at these historically low rates today!!

The biggest benefits to the loan is that lenders do not care about new debt taken out since the mortgage was originally taken. And borrowers who have seen a decline in income are not affected.

Talk to your preferred lender today and see if an FHA Streamline Refinance is right for you!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!