Arizona Homeowner October / 2009
Inventive Home Lending 1400 E. Southern Avenue, Suite 615 Tempe, Arizona 85282 RETURN SERVICE REQUESTED
The financing of your real estate can be a daunting task. You want the best interest rate and you want the pre-approval, application and close of escrow processes to be hassle-free. I understand. I listen. I respond quickly. • I specialize in custom-designing a specific loan for each individual client. With over 400 loan programs at my fingertips, you will get a mortgage that best fits your unique situation. • I use the latest technology in loan underwriting. You’ll receive a loan decision within hours. Don’t wait days to find out if you qualify for the home you really want! • Closing thousands of loans and working with thousands of borrowers assures you that I have the knowledge and expertise to handle any situation. • My impeccable reputation is my best asset. I always strive to exceed your expectations! CALL ME TODAY!
autumn is here!
Happy October! Signs of cooler weather are finally starting to hit the Valley. That should lift all of our spirits. And I am happy to note that the real estate market keeps chugging along. The month of August closed out with just over 8,100 homes sold. Homebuyer demand still remains strong. However, there are some new governmentmandated mortgage regulations that are slowing down the process of getting a home loan. There are two sets of new government regulations that are creating complications for mortgage lenders. The first one implemented about six months ago is the Home Valuation Code of Conduct (HVCC). The government felt that lenders had too much influence over appraisal values in the past resulting, in some cases, of inflated appraisal values. As a result, the government took away a mortgage lender’s ability to choose an appraiser. Every conventional loan now requires a blind appraisal panel to conduct appraisals. The lender now orders the appraisal through a government-approved appraisal management company. Since the appraiser has no contact with the lender, there are no appraisal cost restraints, completion time constraints, or quality constraints. We used to see conventional appraisals getting done in 3-5 business days with an average cost of $325. Now, we are seeing appraisals take 10-14 days at an average cost of $450. And the quality of these appraisals is often poor with conservatively low valuations. In a nutshell, we feel that the HVCC appraisal rule was a decent idea with systematic problems that have not been addressed. It has
caused unnecessary delays in the loan process, created poorly done appraisals, and raised the consumer’s costs. Secondly, the Mortgage Disclosure Improvement Act has been designed to give consumers a better education of what their loan costs are before closing. It requires a lender to prove that they have sent out a new Good Faith Estimate and Truth in Lending statement every time there is a program change or loan cost change of more then a couple hundred dollars. The problem is that there is a mandatory three-day wait to allow a consumer to review each set of disclosures. This has created quite a few delays and in many cases has caused a buyer to be late on their closing date. Many sellers now fine their buyers if they don’t close on time. There are some fees such as appraisal, inspections, and title fees that are not fully known until the end of the process. And as a result, the new mandatory three-day wait for re-disclosure is impacting almost every file at the end of the process. This is another example of a good idea gone bad. We’ve gone from fairly loose regulation of the mortgage industry in the past to overregulation today. Some industry experts are suggesting that the HVCC appraisal and the MDIA disclosure rules have, on average, added three weeks to the mortgage loan process for the consumer and raised loan and appraisal costs. It is important for all consumers buying or refinancing a home to be aware of these new regulations and adjust their closing dates to allow for the extra time. Call me for help and guidance in these matters.
HELP FOR HOMEOWNERS
• Mortgage rates are at a 50-year low. Almost everyone can benefit by either buying a new home or refinancing to a low fixed rate. Call now for a free review of your options. • First-time home buyers are eligible for up to an $8K tax credit for buying and closing on a home by 12/1/09. That’s free money if you buy a home by the deadline! • If you are behind on your mortgage payments the government has offered incentives to lenders to modify your loan so that the interest and payment is lower. (We do not offer loan modifications but would be happy to offer free advice on how you can get help.) • If you have a Fannie Mae, Freddie Mac, FHA or VA loan you may be eligible for refinancing even if your owe more on your loan then your home is worth. (Call us to determine if you are eligible.)
Brady Holland President 480.627.2423 bradyh@ihlending.com www.ihlending.com
Celebrate The Season
Uncle Sam to Slow Housing Improvement?
MORTGAGE RATES AS OF 9/15/09 Loan Rates for $150K-$417K
30-Year Fixed at 5.000%/5.342% APR 15-Year Fixed at 4.375%/4.657% APR
Loan Rates for $418K-$1.5M
5/1 ARM at 4.125%/4.372% APR 7/1 ARM at 4.500%/4.775% APR
*Note: Quotes assume primary home financing with 720+ fico score on a single family property with 20%-30% equity. All quotes offered at 1% origination fee. Certain restrictions apply.
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