Georgia Mortgage FHA

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HUD has issued Mortgagee Letter 2010-28 changing the Upfront and Annual Mortgage Insurance Premiums effective with case numbers assigned on or after October 4, 2010 as follows:

Upfront Premiums

Loan Type	Upfront Premium Requirement
Purchase & Full Credit Qualifying Refinances	100 BPS
Streamline Refinances (all types)	100 BPS

Annual Premiums

LTV	Annual Premiums for Terms >15 Years
= or <95%	85 BPS
>95%	90 BPS

LTV	Annual Premiums for Terms =or <15 Years
= or <90%	None
>90%	25 BPS

These premiums are effective with case numbers assigned on or after October 4, 2010.

Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339

— Ken Cook NMLS ID 208452

The Annual Percentage Rate (APR) is one of the most misunderstood numbers there is on the mortgage documentation. Additionally it is the most easily abused and even though it is supposed to exist to protect shoppers can be so misconstrued as to actually harm the shopper. Be that as it may here are fees that must be included in the calculations for APR in the state of Georgia.

APR FEES
Processing Fee	Allowed
Underwriting Fee	Allowed
Origination Fee to Lender	Allowed
Discount Points to Lender	Allowed
Broker Fees for Services Rendered	Allowed
Commitment Fee	Allowed
Lock Fee	Allowed
Closing/Escrow Fee to	Allowed
Attorney’s Fee to	Allowed
Disbursement/Funding Fee	Allowed
Wire Transfer Fee	Allowed
Warehouse Fee	Allowed
Assignment Fee	Allowed
Amortization Schedule Fee	Allowed
Copy Fee	Allowed
Fax Fee	Allowed
Document Review Fee to Lender	Allowed
Courier or Express Mail Fee to	Allowed

The APR is the total cost of the loan over the life of the loan averaged with the base interest rate. For example if you have an interest rate or 4.5% and closing costs of $5000 on a $100,000 loan the .5% APR qualified closing costs would result in an APR of 4.923% while $10,000 in APR qualified closing costs on the same loan would result in an APR of 5.333%

The way this can be abused or manipulated is by charging a higher base rate and shifting the rate commission to cover some of the closing costs. Not that this is necessarily a bad thing but it gives a hint as to how this figure can be manipulated.

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Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339

— Ken Cook NMLS ID 208452

I can’t say it any better than my friend Jennifer Fivelsdal “Just a few years ago it was not uncommon to see a house assessed at $200,000 selling for $400,000 and this made home sellers happy.  That was a market called a Seller’s Market, in other words more buyers and fewer properties.  The well known rule of supply and demand dictates that a higher demand with a limited supply will result in higher prices.  Today the scenario is so different.  Very high inventory and few buyers makes this a Buyer’s Market. In this case buyers want to spend less and get much more for their money.”

We are very much, for almost every market, in a buyer’s market. More now than ever before many sellers are having to short sell their home or bring cash to closing to pay the difference between the sales price and the mortgage pay off. To be sure a home seller may want to have their home appraised independently. While that appraisal cannot be used by the buyer’s lender due to all sorts of rules and regulations it should still be a standard, Uniform Appraisal and the result should be within a few percentage points. If you are in the Atlanta area I can give you the names of a few Atlanta area Georgia licensed appraisers.

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Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339

— Ken Cook NMLS ID 208452

Actually this should be title “How to kill your chance of closing on time” or “How to sabotage your own home purchase or refinance”. Then again this is the short, short list of a long list of things you can do to bring your loan process to a screeching halt.

Be reminded of the number of people who put a lot of effort in your loan to get it to the closing table. In fact from my office door right now I can see four full-time people who work behind the scenes on every loan. I can see the set-up person, the processor, the compliance officer and the underwriting department supervisor. That doesn’t include your insurance company and the people who touch the policy there, the agents and all the people in their employment who work on your file, the appraiser, inspector, title office and all the people who are involved in working on your file and others. When you do not close all of the work of all of those people is for nothing. That time could have been invested in someone who doesn’t do the things we are talking about today.

Over the years I have seen a lot of reasons for people to be denied a loan after then have been pre-qualified and before they close. Everything from quitting their job to buying a new boat to something as simple as applying for a student loan and being approved. Here is the rule of thumb:

From the time you are pre-approved to the time you have your keys and paperwork in your hands plus about 90 days do not apply for any credit, quit your job, spend your saving, cash out your 401K, co-sign with someone on a loan, or anything else with your money or your credit. Think I’m kidding? I’ve seen it happen no less than two dozen times in the last few years.

Hopefully you are working with a loan officer who knows how to properly instruct you at the time of application or pre-approval and who knows how to accurately answer your questions about changes in employment, income, savings, or credit. If not call me and I’ll find one for you. I know loan officers in almost every state. Now get some popcorn and enjoy this brief video

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Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339

— Ken Cook NMLS ID 208452

There is little secret about the devastation delivered to the real estate industry in the Atlanta area over the last twenty-four months. Values plummeted in 2009 as more properties made their way to the market through increasing numbers of foreclosures leaving banks and investors holding inventory unlikely to resell in months if not years.

Making matters worse many of the foreclosed properties are not in prime condition with many of them needing repairs to return them to livable condition. Add to this trouble the number of properties which have been vandalized while vacant and those continue to set in a deteriorating state further impacting the values of other properties in the area. Read the rest of this entry »

Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339

— Ken Cook NMLS ID 208452

The Georgia Dream down payment assistance plan has been extended to higher loan amounts and higher income amounts in the Fall and Winter of 2009. Call me on my cell phone for specific examples of the augmentation to this program – that’s 678-439-8683.

Here is some information directly from Georgia DCA about the Georgia Dream Down Payment Assistance Plan.

Higher Income Limits!
Higher Purchase Price Limits!
No First Time Home-buyer Requirement!

In the 21 counties designated as Federal Disaster Areas.

The 21 Georgia counties are:

Carroll, Catoosa, Chattooga, Cherokee,
Cobb,Crawford, Dawson, DeKalb, Dooly, Douglas, Fulton, Gwinnett, Heard, Houston, Newton, Paulding, Peach, Rockdale, Stephens, Taylor and Walker.

For a limited time ANY HOME BUYER in these counties may qualify for Georgia Dream products with the following special guidelines:

You DO NOT have to be a First Time Home Buyer (For a Georiga Dream? First Mortgage Loan combined with NSP or “PLUS” down payment assistance)

Higher purchase price limits
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker – $250,000

Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale – $300,000

Higher Household Income limits
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker
1 or 2 persons $73,000
3 or more persons $85,000

Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale

1 or 2 persons $86,000
3 or more persons $100,000

— Ken Cook NMLS ID 208452

Looking for a great place to live with some of the best values in America? Look no farther because I am sitting in it right now keyboarding this post to you! On October 6th NBC’s Today Show with Al Roker highlighted Marietta, Georgia as the number 4 place in America to buy a home and get the most “bang for your buck”.

I happen to agree with them because I live here, have lived here my entire life except a little college stint, and I am very actively involved in my community and lending here. During the boom builders constructed some very beautiful homes which in turn emptied a number of existing homes and left us with a surplus of larger, newer homes. In fact on October the 12th I wrote about “My Home, Marietta, Georgia” which was a featured article here on Active Rain. Read the rest of this entry »

— admin

While for the last several years I have been blogging as partner and “President” of a busy but small mortgage lender licensed in Georgia, Florida and for a time North Carolina things have changed mightily over the last few weeks. Many of you knew I was considering mothballing my Novation Mortgage and indeed had spoken to some about various opportunities around the industry.

Early on in the change process I decided if I were to continue with my experience in the mortgage industry it would be at Regional Director or above or good old Loan Officer. Several people contacted me through Active Rain or as a result of Active Rain I should say and others with whom I interviewed rapidly found my 3 plus years of blogging here as well as proliferated around the Internet. Some liked the idea and others did not – understandably – as keeper of the keys to my own company I was often more outspoken than I will be henceforth. Read the rest of this entry »

— admin

Fifty years ago this past August I was born in the same hospital where decades later my children would be born and I would say good-bye to both of my parents. I remember when there was no Interstate highway, only six government high schools and the fire department was all volunteer. That was before my fellow Cobb County residents Ty Pennington, Travis Tritt or Julie (Julia) Roberts were born. Read the rest of this entry »

— admin