Henry Yutangco- Realtor | Homes for Sale | Elk Grove | Sacramento Call Me (916) 833-1687

The Los Angeles Times
Bank of America said Friday it would reduce by about $100,000 the amount owed by as many as 200,000 underwater homeowners as part of the recently announced government foreclosure settlement with top mortgage servicers.

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http://www.latimes.com/business/money/la-fi-mo-bank-of-america-mortgages-20120309,0,5615384.story?track=rss

• Some borrowers who have sold their homes through short sales may be eager to buy another home while interest rates are still low.  However, these borrowers should be aware of the downside of trying to purchase a home right away.
• While banks are starting to lend again to those who have worked to polish their tarnished credit, and once-wary investors are starting to show renewed interest in sub-prime mortgage bonds, buyers who simply can’t wait will have to pay high interest rates and likely a down payment of at least 30 percent.
• Working with a private lender is one option, but borrowers should first check to make sure that the lender is licensed to provide mortgages by searching the Nationwide Mortgage Licensing System & Registry.

Borrowers who kept their mortgage payments current until the closing of the short sale also may be able to get a Federal Housing Administration loan.  If the mortgage was in default though, an FHA loan is not possible for three years.

The Appraisal Institute has released a form intended to help real estate appraisers analyze values of energy-efficient home features. 

The Appraisal Institute issued the form as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac, and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the contributory value of a home’s green features is rarely part of the equation.

The Appraisal Institute’s addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances. Form 1004 devotes limited attention to energy efficient features, so green data usually doesn’t appear in the appraisal report, or it is included in a lengthy narrative that often is ignored.

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Current conforming loan limits are scheduled to expire Friday, Sept. 30.  The maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum.  The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
Congressmen Gary Miller and Brad Sherman jointly introduced a bill in the house that would have made permanent the current loan limits, and Congressman John Campbell introduced a bill that would have extended the current limits.  Additionally, Senators Dianne Feinstein and Barbara Boxer jointly cosponsored a bill in the Senate that would have extended the conforming loan limits.
Although bills were introduced to extend and to make permanent the current conforming loan limits, it is unlikely Congress will take action by the Sept. 30 deadline.
C.A.R. and NAR will continue to remain vigilant in this area and hope that elected officials also will continue this fight on the hill.
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NAR recently issued a Call For Action urging REALTORS® to contact Congress and clearly communicate that Congress needs to prevent loan limits from expiring on Sept. 30.
Unless Congress acts, the current loan limits will expire on Sept. 30 and the cost of a mortgage could rise significantly.  More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning October 1, 2011, according to analysis by C.A.R. 
Despite the Obama administration claiming it will support a one-year extension of the current loan limits, Bank of America has already lowered their loan limits for new loans, and others will follow suit.
Please contact Congress today and communicate clearly that a housing recovery depends on keeping mortgages affordable and that Congress needs to prevent these higher loan limits from taking effect.
Take action now

The Obama administration is ramping up talks on how to revive the housing market, which is weighing on the economic recovery.

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http://online.wsj.com/article/SB10001424052702304584404576440033488980192.html?mod=WSJ_RealEstate_LeftTopNews

Fannie Mae, Freddie Mac, and the FHA are facing an upcoming cutback in mortgage limits, but banks say they’re planning to expand their jumbo loan business in high-cost housing markets.

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http://www.latimes.com/business/realestate/la-fi-harney-20110710,0,7259626.story