United Commonwealth Mortgage, Inc.

FHA to increase mortgage insurance premiums one quarter of one point

2011-03-04T10:22:00.000-08:00

The Federal Housing Administration is increasing its annual mortgage insurance premium one quarter of one point on all 15-year and 30-year mortgages backed by the agency.
The hike is in response to a congressional mandate that gave the FHA permission to increase premiums and keep its insurance fund liquid. The higher premiums also were outlined in President Obama's 2012 fiscal budget, which estimates the FHA will insure $218 billion in loans during the 2012 fiscal year.

The changes will effect loans issued on or after April 18.

Once the change takes place, the monthly insurance premium paid on a 30-year, fixed-rate FHA-insured loan will increase by $33.
On loans with amortization terms greater than 15 years, the FHA's annual mortgage insurance premium will increase to between 110 and 115 basis points. For loans with amortization terms of 15 years or less, the annual premium is set to rise between 25 and 50 basis points.
After the transition, a borrower holding a 30-year, fixed FHA-insured loan valued at $163,000 will be paying $151 per month in premiums, compared to $118 under the current rates.
"After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said FHA Commissioner David Stevens in a statement. "This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally mandated 2% reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments."
The FHA also has relaxed some of its refinancing rules, declaring in a letter Monday that borrowers no longer have to be employed to get a streamlined refinancing.
In addition, the agency said on simple-rate refinancings where borrowers pay for their own closing costs with cash or higher rates, income and asset information is no longer required, which allows the refinancing to be completed with an abbreviated loan application. The changes go into effect 60 days after the official release of the FHA's letter on Feb. 14.
Meanwhile, tighter lending rules remain in place for refinancing loan holders, with the FHA stipulating that closing costs cannot be financed for a simple rate without an appraisal.
The agency also said in order for homeowners to qualify for a refinancing, the monthly cost of their new loans must save them at least 5% or more. In addition, a borrower must be current on the loan a month prior to the refinancing.

Large housing inventories to be sold at deep discounts in 2011

2011-03-03T12:17:00.000-08:00

Foreclosure filings and completed foreclosures will reach record levels this year, after lenders exhaust alternatives such as mortgage modifications, according to DBRS.
Analysts expect increased losses to residential mortgage-backed securities, as a result, because large inventories of foreclosed homes will be sold at deep discounts. The ratings agency also expects the federal government to continue calling for large-scale loan modifications in 2011. This will now affect loans such as option adjustable-rate mortgages because most of the delinquent subprime mortgages have already been modified.
DBRS projects delinquency trends to continue climbing this year, as negative home equity persists, home prices remain down, unemployment stays high, and many borrowers have trouble refinancing due to tightened underwriting standards.
Analysts said the number of REO properties could double over the next 12 months to 4 million from 2 million, and it will take at least one to two years to sell those homes, further hindering recovery. DBRS said servicers may turn to short sales and some government programs more often this year to sell these distressed properties.
Analysts pointed to the "first look" program the Department of Housing and Urban Development rolled out in September as one option. The program gives local nonprofits or borrowers a chance to bid on a house at a 1% discount of the appraised value before investors.
More regulatory reform will come to mortgage servicers in 2011, analysts said, "as the industry tries to recover from the revelations that were brought about over the last few months including robo-signing foreclosure affidavits, wrongfully foreclosing on military families and the inability of servicers to prove in court that they owned the mortgage loans."
Servicing fees are likely to increase because lenders and servicers need to find ways to pay for additional staff and increased litigation costs, while compensating borrowers for errors, according to DBRS.

Home Buyer University! Free Online Workshops

2011-03-02T08:50:00.000-08:00

If you or someone you know is thinking about buying a home, please tell them about this free resource. We call it Home Buyer University and it is free online webinars on how to be prepared when it comes time to buy a home. Click on the logo below for more information!

Special Annoncement! Free Online Webinars

2011-03-01T15:02:00.000-08:00

Special Announcement!

We are excited to roll out a new series of free webinars for our clients. Every week we will host valuable free webinars for you or someone you know who wants to buy a home.

Topics include:

25 things you have to know before buying a home
20 things you should understand before buying a house
5 easy ways to improve your credit score
and more...

Benefits:

Weekly
Free
Current Information
Watch from the comfort of your own pc

Registratoin is simple, just click on the button for upcoming dates and times!

Do You Know Me?

2010-10-21T07:51:00.000-07:00

Call today! 916-960-5900

CA Realtors forecast slight rise in home sales for 2011

2010-10-15T17:33:00.000-07:00

Great article in the paper today:

The California Association of Realtors expects the state's existing home sales market to end 2010 on a down note, with only modest improvement next year.

By the close of this year, sales of existing single-family homes will have declined 10 percent compared with 2009, CAR predicted Monday in its 2011 California Housing Market Forecast. Los Angeles-based CAR forecast only a 2 percent gain in 2011.

CAR projected 2010 sales statewide to come in at 492,000, compared with 546,500 in 2009. It forecast 502,000 sales in 2011.

CAR also predicted an increase in median home sale prices. After two consecutive years of record price declines, CAR said the median home price in California will climb 11.5 percent to $306,500 for 2010, and increase another 2 percent in 2011 to $312,500.

"As the U.S. economy continues its tepid recovery, we'll see some improvement in California's economy," said CAR Chief Economist Leslie Appleton-Young. "We expect a net jobs increase of approximately 1.4 million jobs in California for the year to come and an improvement in unemployment figures."

Kris Vogt, president of the Coldwell Banker Residential Brokerage's Sacramento-Tahoe regional office, said he also was cautiously optimistic about 2011.

"I think the fact that we finally have a state budget might help with some confidence, along with low interest rates and (home) affordability at historic levels," Vogt said. "I think these are things consumers can really step into, and that will be good for 2011."

Even so, 2011 projections fall far short of pre-recession totals. In 2005, for example, statewide sales of existing homes totaled 625,000, with a median price of $522,700.

CAR President Steve Goddard believes troubled properties will play a role in helping the market climb out of the hole in 2011.

"Distressed properties will figure prominently in the market next year, but we also expect to see discretionary sellers play a larger role," he said, adding later, "The segment of the market under $500,000 has been driven by distressed sales, while higher-priced areas of the state have been constrained by restricted financing options."

"A lean supply of available homes for sale will drive prices up at the low end," Appleton-Young noted.

"But larger inventories and limited, less-attractive financing will cause continued softness at the high end. … The wild cards for 2011 include federal housing policies, actions of underwater homeowners and the strength of the economic recovery."

NAR’s HouseLogic Launches Campaign to Help Military Families Sustain Homeownership

2010-10-15T14:49:00.001-07:00

NAR’s HouseLogic Launches Campaign to Help Military Families Sustain Homeownership
Washington, October 11, 2010
The National Association of Realtors®’ HouseLogic, a free, comprehensive consumer website about all aspects of homeownership, today launched Operation Home Relief, a new Facebook Causes campaign. The campaign aims to increase awareness, rally support and raise funding for USA Cares, a nonprofit organization that provides counseling and financial foreclosure assistance to post-9/11 active duty U.S. military service personnel, veterans and their families.
HouseLogic will donate $1 to USA Cares every time someone “likes” the Operation Home Relief Cause page on Facebook and will match individual donations made to the cause, up to $20,000.
“Owning a home is part of the American dream, where we make memories, build our futures, and feel comfortable and secure; and any family who loses that dream to foreclosure is one family too many,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “HouseLogic’s Operation Home Relief aims to help sustain homeownership for military families who have already given so much to support our country, and we hope others will join together with us to support this worthy cause.”
When people lose homes to foreclosure, the community, the housing market and the economy all suffer. HouseLogic’s Foreclosure Guide highlights personal stories and offers information and tips to help homeowners facing foreclosure make smart, proactive decisions about what steps to take, where to find help and the alternatives to foreclosure. The guide also includes ideas for how others can get involved to combat foreclosures in their community.
“U.S. military service members bravely face danger around the world every day on behalf of all Americans. Yet, some military service members and their families also face financial dangers and hardships at home,” said William H. Nelson, executive director, USA Cares. “USA Cares’ sole mission is to help these service members and their families in their time of financial need. To that end, we’re excited to have the support of HouseLogic and the National Association of Realtors®. Their new Facebook Causes campaign highlights the work USA Cares is doing, reminding Americans of the many challenges faced by U.S. military service members and their families, and generates support via Facebook for the help that we’re offering every day.”
For more information on sustaining homeownership, and many other housing topics, visit HouseLogic at www.houselogic.com.
HouseLogic is a free source of information and tools for homeowners from the National Association of Realtors® that helps homeowners make smart decisions about all aspects of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.
USA Cares is a nonprofit 501(c)3 organization that helps post-9/11 military and their families with basic needs, assists veterans suffering from post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI) and their families and works to prevent private military home foreclosures and evictions. In seven years, USA Cares has received over 24,000 requests and responded with more than $7 million in grants. Military families anywhere in America can apply for assistance through the USA Cares web site, www.usacares.org or by calling 800-773-0387. For more information on USA Cares contact John Revell, jrevell@usacares.org or call 270-352-5451.

Mortgage Foreclosure Hault Widens as BofA extends freeze to 50 states

2010-10-10T07:51:00.000-07:00

Bank of America has now widened it’s mortgage foreclosure halt from 23 to all 50 states. This follows as a growing number of mortgage lenders, such as GMAC Mortgage and JPMorgan Chase, have put a stop to foreclosures. Reports of problems involving paperwork and a lack of review of cases may have led to homeowners being evicted illegally. Some 40 state attorney generals are now investigating. The foreclosure halt by Bank of America in all 50 states is just the latest result of the subprime fiasco which now includes bank employees robo-signing and foreclosures being processed without proper documentation. The number of home foreclosures third quarter 2010 could be far worse than those in 2009.

One of the principle issues involved is whether or not the banks initiating the foreclosures are the actual mortgage holder? During the ‘hey-day’ of the housing boom, subprime mortgages were handed out like candy on Halloween to just about anybody. To cover these loans, banks would often sell the paper to another institution. Many ultimately were acquired by either Fannie Mae or Freddie Mac, who control a vast majority of all home mortgages.

Bank of America is the largest lender in the United States. They, along with JP Morgan Chase and Ally Bank, as well as others, first halted foreclosures in 23 states due to these problems with documentation and possible ‘robo-signing’ by employees without actually reading and reviewing the paperwork. With record numbers of home foreclosures being processed by banks through the courts, the potential for errors, false data and other issues increases.

Bank of America has now widened it’s mortgage foreclosure halt from 23 to all 50 states. There is no word yet if other lenders, such as GMAC Mortgage and JPMorgan Chase, will also extend their moratoriums on foreclosures. Some 40 state attorney generals are now investigating the legality of procedures used. The foreclosure halt by Bank of America in all 50 states is just the latest result of the subprime fiasco which now includes bank employees robo-signing and foreclosures being processed without proper documentation. The number of home foreclosures third quarter 2010 could be far worse than those in 2009.

State Tax Payment Plans Available

2010-10-08T12:20:00.000-07:00

SACRAMENTO – The Franchise Tax Board (FTB) advised taxpayers dealing with income tax liabilities to contact
FTB for assistance if they are unable to pay on time.
For people experiencing a financial hardship and cannot pay what they owe, FTB specialists can establish payment
plans, grant temporary relief from state tax liens, or, in some cases, delay collection actions. FTB generally approves
installment payment requests if the balance owed is less than $25,000 and can be paid within 60 months.
FTB can generally grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell
or refinance their homes. When a home sells for less than the loan balance, FTB can sometimes remove its tax lien
from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate
escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.
FTB can help people refinancing or modifying an existing home loan. Homeowners can request that FTB allow the
new or modified loan to have priority over the tax lien. This allows prior home loans to be refinanced or modified
without first having to pay the lien.
More information is available at FTB’s website, ftb.ca.gov, including ways to help taxpayers resolve their accounts
through installment agreement requests. For lien information, look under the "Bills and Notices" tab and then under
the Earnings Withholding and Collections Action section, select: Individuals - Liens.
Taxpayers who cannot resolve their accounts online should call the phone number listed on their billing notices. Those
without Internet service may request an installment agreement payment plan by calling FTB at 800.689.4776, Monday
through Friday, between 8 a.m. and 5 p.m.
Partial Release & Subordination of State Tax Liens
Partial Release
A partial release of lien releases a state tax lien from a specific piece of property. However, the lien remains in effect
and will encumber the transfer of title of any other properties owned or subsequently acquired by the taxpayer.
Reasons to request a partial release of lien include a need to transfer the rights to the property when there are
insufficient funds to fully satisfy the state tax lien or the party with the lien has no rights to title of the property.
Subordination
A subordination of a lien is not the same as a release of lien . The lien remains in effect; however, a subordination of
lien lowers the priority in favor of some other lien against the property. The lien remains in effect and will encumber
the sale of the specified property and any other property owned or acquired by the taxpayer. Typical situations are the
refinance of a loan and there are insufficient funds to fully satisfy the state tax lien or the existing loan is being
modified.
Requesting Partial Release or Subordination
Individual or business entity, call 916.845.4350. If determined that a partial release of lien or subordination
of a lien is warranted, you will be asked to submit the following:
1. Letter of explanation detailing your request.
2. Estimated closing statement.
3. Current preliminary title report that includes the legal description of the property.
4. Current appraisal.
5. Copies of all other liens and encumbrances.
6. Documentation to substantiate all lien payoffs through this escrow.
7. Copy of the new deed of trust (for subordination requests only).
Additional documentation may be needed to complete your request.
Send your request by overnight mail to:
LIEN RESOLUTION UNIT MS A317
FRANCHISE TAX BOARD
SACRAMENTO CA 95827
Phone Numbers:
For Individuals:
800.689.4776 or 916.845.4470
Fax Number: 916.845.4389
For Business Entities:
Entity Type Phone Number
• Corporations 888.635.0494 or 916.845.7033
• Partnerships 888.635.0494 or 916.845.7166
• Limited Liability Companies 888.635.0494 or 916.845.7166

Fannie Mae Extends Alternative Modification Program

2010-10-07T15:02:00.000-07:00

The latest in a string of government extensions is an extension to Fannie Mae’s Alternative Modification (Alt Mod) to the Home Affordable Modification Program (HAMP).

The extension is being provided so servicers will have enough time to complete the processing of modifications for borrowers who meet the eligibility requirements for the Alt Mod program, which remain the same.
In Lender Letter LL-2010-04, Fannie Mae introduced the Alt Mod program for borrowers who were eligible for and
accepted into a HAMP trial period, and made all trial payments, but were not offered a permanent modification because of eligibility restrictions.
Fannie Mae requires that servicers consider the Alt Mod program for any eligible borrower before proceeding with foreclosure.
In addition to HAMP evaluation and fulfillment of trial payments, borrowers must meet one of the following requirements to be considered eligible:
• The monthly average mortgage payment ratio based on verified income was less than 31 percent.
• The target monthly mortgage payment ratio of 31 percent based on verified income could not be reached using the standard HAMP modification waterfall.
• The borrower failed to provide all income documentation required for a HAMP modification but meets the streamlined income documentation requirements outlined by Fannie.
The extension was announced September 30 and will allow servicers until November 30, 2010 to submit their Alt Mod cases.

B of A out of Wholesale Lending - see today's news

2010-10-05T17:39:00.000-07:00

BofA unexpectedly exits wholesale mortgage market
Local mortgage brokers caught totally unawares; departure of second such huge lender leaves big gap.

--------------------------------------------------------------------------------

By Amanda Fung

Published: October 5, 2010 - 5:15 pm

Bank of America Corp. has exited the wholesale residential lending market, cutting off its business with mortgage brokers, the bank announced Tuesday.

The move came as a surprise to local mortgage providers who did business with the Charlotte, N.C.-based bank. It means that mortgage brokers and their clients will have one less option when they are looking for a loan to buy a condo or co-op in the city.

“We used them a lot for condo sales,” said Ross Weinstein, managing partner at Exclusive Capital Consultants. “Now we will have to move that business to other lenders.”

A BofA spokesperson said, given the opportunity in retail business, the bank preferred “to reallocate its resources to its retail channel and correspondent lending channel.” Less than 5% of the mortgages that the bank annually made came from its wholesale channel. In just the first six months of the year, BofA originated $145 billion in mortgages, according to trade publication Inside Mortgage Finance.

Loan applications via the wholesale lending channel were accepted through the end of the business day on Tuesday and must close by Dec. 1.

“This was not expected,” said Melissa Cohn, president of Manhattan Mortgage, adding that the bank had scheduled a conference for top mortgage brokers in the New York area and had abruptly cancelled it. “We were caught flat-footed.”

BofA's exit follows a similar move by J.P. Morgan Chase & Co., which got out of the wholesale lending business last year.

"It's another way for banks to cut back," Mr. Weinstein said.

Faulty Foreclosures May Prolong the Slump

2010-10-01T15:38:00.000-07:00

Faulty Foreclosures May Prolong the Slump
Probes of whether lenders followed the rules could halt seizures, and that could keep the real estate market from finding its bottom

Howard Cohen hasn't paid the loan on his Tukwila (Wash.) home in a year, and when he heard in mid-September that Ally Financial's (GJM) GMAC Mortgage unit was suspending foreclosure evictions in 23 states, it gave him hope. "Maybe I'll stay in my house, too," says Cohen, a 57-year-old commercial-loan broker whose business fell off after the financial crisis. Cohen was encouraged even though his mortgage servicer, Bank of America (BAC), hasn't reported any irregularities.
Attorneys general in Iowa, Illinois, and Texas started investigating Ally's GMAC unit after it disclosed that one of its employees said in a December 2009 deposition that he had signed thousands of foreclosure documents without verifying their accuracy. The company also faces inquiries from officials in Ohio, Colorado, and North Carolina. A JPMorgan Chase (JPM) executive has said she signed thousands of documents without checking loan records, according to a deposition she made in a court case in Palm Beach, Fla., in May. JPMorgan spokesman Thomas Kelly declined to comment. On Sept. 29 the bank asked judges to postpone rulings in pending foreclosure cases while it reviews and possibly resubmits statements.
"Regrettably, a procedural error was found to have occurred in certain affidavits required in certain states," GMAC said in a Sept. 24 statement, adding that the problem "is not related to the accuracy of the underlying transaction." The "error" was the employee's failure to sign the documents in the presence of a notary public or signing them without "direct personal knowledge of all the information," GMAC said. The U.S. government, which has been pressing lenders to reduce foreclosures as evictions hit record levels, owns 56 percent of Detroit-based Ally. The company, formerly known as GMAC, has benefited from more than $17 billion in bailouts.
No one can say how widespread the problems are. "The suspicion is that there might have been shortcuts taken by every mortgage servicer who had extraordinary numbers of foreclosure documents to go through," says Rick Sharga, senior vice-president at RealtyTrac, a housing data provider in Irvine, Calif. In August, lenders took possession of a record 95,364 homes and issued foreclosure notices to 338,836 homeowners, according to RealtyTrac.
If uncovering deficiencies halts thousands of pending foreclosures or voids ones that have already taken place, the courts could be tied up with cases for years, says Stuart Saft, a partner at New York-based Dewey & LeBoeuf. That could further postpone a recovery. "You can't get the economy moving until this whole situation gets straightened out," Saft says. "Dragging out foreclosures doesn't help."
"Shadow Inventory" Problem
The foreclosure foul-ups highlight the "shadow inventory" problem—the vast number of homes now in default or foreclosure that may flood the market, further depressing prices. "Buyers know [prices haven't] hit bottom," says Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez, a New York forecasting firm. "So they're sitting on the sidelines."
In the 23 states where judges must approve foreclosures, the average time between borrowers falling behind and sales of their properties has climbed to almost 25 months from fewer than 18 at the start of 2007, according to data compiled by Austin (Tex.)-based Amherst Securities. The increasing time between default and foreclosure may encourage more homeowners to stop paying, says Cameron Findlay, chief economist at LendingTree.com (TREE) in Irvine, Calif. Overwhelmed lenders are likely to address the worst cases first, leaving many delinquent borrowers in their homes for longer periods, he says.
Other paperwork problems could also keep homeowners in limbo. Cohen, who is 12 months behind on his mortgage payments, says he's been trying to negotiate a loan modification. He anticipates difficulties down the road, he says, because "nobody can tell me who owns my mortgage."
The bottom line: Problems with the paperwork surrounding foreclosures threaten to delay the housing recovery and prolong the economic slump.

FHA Up Front and Monthly MIP Changes happening on 10-04-2010

2010-09-30T15:30:00.000-07:00

Time is running out to secure the lower monthly FHA premiums!

FHA is increasing their monthly premium starting October 4th!

Click on the title above for the actual FHA Mortgagee Newsletter!

Article from DS NEWS that offers some hope

2010-09-29T09:34:00.000-07:00

New Bill Calls for Refinancing of 30 Million GSE Mortgages
By: Carrie Bay 09/28/2010

Legislation to stabilize the foreclosure crisis through the federal government’s conservatorship of Fannie Mae and Freddie Mac was introduced in the U.S. House of Representatives Tuesday by Congressman Dennis Cardoza (D-California).

The Housing Opportunity and Mortgage Equity (HOME) Act would require Fannie and Freddie to allow borrowers to refinance their mortgages by locking in today’s record-low interest rates for longer fixed-term loans. The legislation would affect up to 30 million mortgages held or backed by the two GSEs.

To fund the program, Fannie and Freddie would issue new mortgage-backed securities (MBS) to fund the refinanced mortgages and use the proceeds to pay off the existing mortgages.

Fannie and Freddie would receive the same cash flow to cover default risk that they do now, passing along the reductions in financing costs to borrowers. Borrowers that qualify for the program would be able to refinance without facing penalty fees.

According to Rep. Cardoza, the measure would help stabilize the housing market by decreasing the inventory of foreclosed homes and reducing declines in property values from issues surrounding blight and abandonment.

At the same time, he argues that those with mortgages backed by Fannie and Freddie would have additional disposable income, providing a direct economic stimulus.

“No solution to date has addressed both foreclosure prevention and the decline of home equity, Cardoza said in a statement. “The reality is the housing crisis has spread far beyond the subprime market, hindering our economic recovery.”

Cardoza criticized the administration’s current housing programs for not being strong enough to make a dent in the worst foreclosure crisis in U.S. history.

“Until we see a program that cuts to the heart of the recession, we will continue to see little growth in our economy, families losing their homes, and lifetime investments with lost equity,” Cardoza said.

The legislation was initially introduced in January 2009. It has been modified based on new input Cardoza received from the House Financial Services Committee and several well-reputed economists, including Christopher Mayer, senior vice dean of Columbia Business School, and Mark Zandi, chief economist for Moody’s Analytics.

Cardoza says the proposal has gained increased interest as more economists realize that measures aimed at addressing the foreclosure meltdown have not been sufficient.

“If we allow housing to go into a free fall, everyone loses: taxpayers will have more bailouts, homeowners will watch their homes continue to decline in value, local communities will struggle to fund their schools. Everyone loses,” Mayer said. “Housing is an important part of what is holding back the economy. The government has a chance to help housing without harming the deficit. We should take it.”

Zandi added, “With mortgage rates near record lows, the quickest and most effective way policymakers can help the economy is to facilitate more mortgage refinancing. The HOME Act does this at little or no cost to taxpayers.”

©2010 DS News. All Rights Reserved.

The Pre-Approval Process

2010-09-25T09:06:00.000-07:00

In our last 3 Insider Mortgage Tips we discussed the
3 components lenders look at in order to make a determination
of your ability to obtain a mortgage.

In this Insider Mortgage Secrets Tip, we will discuss the
process of getting approved for a loan BEFORE you start
shopping for your new home.

Do You Have A Thousand Dollars To Simply Throw Away?

I know this may sound like a very silly question but that
is exactly what happens every day to unsuspecting buyers
who do not get pre-approved for a loan BEFORE they go
house hunting.

Let me explain with a typical scenario...

You decide it is time to move so you find a realtor and
start looking for a home. After some house hunting you
find the perfect home and make an offer which is accepted.

Now you must meet with a lender to obtain a mortgage for
this home. When you apply for your loan the lender will
request a check for the appraisal and credit report. It is
also a very good idea to have your home inspected. This is
another fee that you will be required to pay for when the
service is rendered.

So, approximately 7 to 10 days after your contract was
accepted by the seller you will be required to spend this
$1000.00 or more.

Whether Your Loan Is Approved Or Denied These Funds Are
Not Refunded!

THE RIGHT WAY...

The proper procedure is to meet with a lender and get your
loan pre-approved BEFORE you go house hunting. Aside from
avoiding the unpleasant situation just described above there are
other benefits to having your loan in place as your first
step in the process.

In this pre-approval meeting we can establish what your
comfort level is for monthly payments as well as the
amount of funds you can comfortably use for the
transaction and we can then use these figures to recommend the
appropriate program.

In a seller's market where there are many more buyers in
the market than there are homes for sale this can give you
a much needed edge. When the seller knows your loan is
already pre-approved your contract has a better chance of
being accepted than the one from the buyer who has not yet
met with the lender and may or may not be able to get a
loan.

If you would like to get pre-approved and have your money
waiting for you BEFORE you go house hunting please call me
at 916-960-5900 for a No-Obligation Consultation.

In our next issue we will cover the appraisal and what your
home is worth.

Is a down payment really needed?

2010-09-23T08:16:00.000-07:00

This Home Buying Guide is brought to you by:

United Commonwealth Mortgage, Inc
916-960-5900

One of the biggest barriers to home ownership in the
country is the money needed to buy a home. The money you
need is broken down into 2 categories: downpayment and
settlement costs. Your downpayment will vary depending on
which loan program you choose.

The three major loan programs are:

FHA - Federal Housing Administration

VA - Veterans Affairs Loan

Conventional

Each of these programs has its own loan limits, down payment
requirements and qualifying guidelines which do occasionally
change so please contact our office for the most up-to-date information.

Real estate closing practices vary widely from state to
state and even county to county but normally fall between
4-7% of your purchase price. Where you live will determine
exactly what you will have to pay.

Even if you are not required to escrow money for taxes,
you may want to set aside this amount to assure that you
will be able to pay those tax bills when they fall due.

You can get a good idea of what applies to your specific
area by giving us a call at 916-960-5900 or by filling
out the Contact Us form at:

http://yourfixedratelender.com/contact.htm

Remember, all lenders and brokers are required to provide
you with a Good Faith Estimate detailing the services you
may be required to get and pay for in connection with your
loan.

This Good Faith Estimate will give you a way to compare
loans and see what your closing costs would be. Click the
link below to find a list of coded names that describe the
different fees, which may be associated with the services
previously mentioned. These codes and names correspond to
those found on the HUD-1 Settlement Statement.

Lenders will want to see that you have had these funds in
the bank for the past 60-90 days and will request your
last 2 months bank statements.

If you do not have a lot of money available to buy a home,
here are some ideas:

1. Borrow against your 401(k)
2. Withdraw money from your 401(k)
3. Get a gift from a relative
4. Ask the seller to help with closing costs
5. Get a grant from a non-profit organization

What If None Of These Sources Are Available?

The good news is that we have several programs that will
allow you to purchase a home even if you truly have no funds.

No...this is not like the infomercials.

In the past few years, with homes appreciating rapidly
across the country, lenders have come out with new
products to address these issues.

It is still possible that we may be able to offer you a loan that
allows you to finance 100% (or almost 100%) of the purchase
price of your home.

Call us at 916-960-5900 to arrange a private No-Cost and
No-Obligation Consultation so we can review your situation and
recommend the programs that will be best suited to your needs.

In our next lesson we will cover getting pre-approved and
the CORRECT pre-approval process...

---------------------------------------------------------

If you would like to get started now please fill out a
Secure Online Application and we will contact you to
set up your free consultation and get you into the
home of your dreams with the best terms available...
regardless of your credit!

http://yourfixedratelender.com/application

Or if you have questions, call us or submit them here:

http://yourfixedratelender.com/contact.htm

I hope you have enjoyed this step of our guide.
We have many creative loan programs to fit your needs.

Please contact us at 916-960-5900 to schedule
your FREE No-Obligation Consultation where we
will meet to tailor a program to fit your needs
and comfort level for monthly payments and investments.

Until our next lesson,

United Commonwealth Mortgage, Inc

FHA Short Pay Refi Update

2010-09-20T17:09:00.000-07:00

In early August 2010 FHA announced a new product The FHA Short Refinance” effective September 2010. This refinance loan program is for homeowners who owe more on their mortgage than their home is worth.
FHA Short Refi Requirements:

 Current on existing mortgage
 Must owe more on mortgage(s) than home is worth
 Must have a middle credit score of 500 or greater
 Must qualify for standard FHA underwriting requirements
 Home cannot be an investment property or second home - must be a primary
residence
 Homeowners existing mortgage company must agree to write off at least 10%
of the existing mortgage principal balance owed
 The combined loan balances between a new FHA first mortgage (due to the
short refinance) and an existing second mortgage balance (if one exists and
they agree to the short refi) cannot exceed 115% of the home's value
 The first mortgage being refinanced cannot be an existing FHA mortgage
 The new FHA short refi loan must not exceed 97.5% of the home's current
market value (yes you will have to get an appraisal on your home)

In reading this list, you may ask the question or be wondering whether your second mortgage lender will be interested in giving permission to do a FHA short refi. To address this concern, as it is a real concern, the US Department of Treasury will provide incentives to second mortgage holders who agree to partial or full release or extinguishment of their mortgage lien in a property.

FHA may slash costs on reverse mortgages

2010-09-20T11:35:00.000-07:00

The Federal Housing Administration isn't talking publicly about it, but the agency may be getting ready to cut the upfront costs of reverse mortgages for some borrowers.
The agency also, however, may be reducing the amount seniors can borrow against their homes.
In a recent conference call with industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage requiring almost no upfront mortgage insurance premium, according to the National Reverse Mortgage Lenders Assn. The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs.

"HUD is looking at options to provide a lower-priced [home-equity conversion mortgage] option," said Lemar Wooley, a spokesman for the U.S. Housing and Urban Development Department. "We are still working out the details. Our basic plan is to make the product more attractive, while limiting FHA's exposure to risk."
A home-equity conversion mortgage is a federally guaranteed reverse mortgage designed to let homeowners 62 or older tap the equity in their homes. The loans and accrued interest don't have to be repaid until the owner sells the home, dies or fails to live there for one year, but the loans have traditionally carried significant upfront and annual expenses.

According to participants on the conference call, there would be two types of home-equity conversion mortgages beginning this fall: a "standard" loan and a "saver" loan.
The saver loan would have an upfront mortgage insurance premium of 0.01% of a home's value, but the amount that could be borrowed, known as the principal limit, would be reduced by at least 10%. That would lower the risk to the FHA, which guarantees the loans. Because a smaller amount could be borrowed, the saver loan could be marketed as an alternative to a home-equity line of credit to seniors on fixed incomes who can't make the monthly minimum interest payments required on such lines of credit.

Under the standard loan, the upfront mortgage insurance premium charged by the FHA would remain 2% of the property value (or a maximum of 2% of the FHA maximum loan limit of $625,500), and the principal limit would be cut 1% to 5% of a home's value, depending on the borrower's age.
For both loans, the monthly mortgage insurance premium, which is 0.5% of the mortgage balance for a traditional home-equity conversion mortgage, would increase to 1.25%.
"For someone who needs a chunk of money, but not a huge chunk, we believe this will significantly broaden the appeal," said Peter Bell, president of the National Reverse Mortgage Lenders Assn. "They're very smart changes."

In the last few months, several reverse mortgage lenders decreased origination fees and closing costs, partly to increase demand for the product and partly to pass along some of the profit they've made as investors scooped up the loans on the secondary market. The saver product would further reduce the upfront borrowing costs.
The National Council on Aging, which has advocated a more flexible reverse mortgage product for some time, views the changes as a sign that the industry is moving past the one-size-fits-all mentality.
However, the advocacy group also sees potential pitfalls.
"The more flexibility there is, the more chance there is to be talked into [something] that doesn't make sense," said Barbara Stucki, vice president of home-equity initiatives for the National Council on Aging.

VA News...

2010-09-17T15:31:00.000-07:00

New VA Guidelines on Charges

The Department of Veterans Affairs announced new requirements concerning closing costs on the HUD-1 for loan applications taken on or after October 1, 2010. Lenders must itemize certain credits and title service charges. The itemization of credits and title charges can be combined with the required VA origination statement.
Itemization can be accomplished by providing an attachment to the HUD-1 and will enable VA reviewers to determine who paid what charges and to ensure veteran borrowers did not pay unallowable fees. The attachment may be a lender-created addendum or any standard addendum used by title companies. For title services and lenders title insurance, lenders will now be required to provide a breakout of the charges shown on line 1101, similar to the breakout required of line 801. More information is available in Circular 26-10-9 dated July 30, 2010 and the updated Circular dated August 6, 2010.

We keep up with all the latest changes, let us help you with your next home!

FHA Mortgage Insurance changes coming up!!

2010-09-17T12:52:00.000-07:00

Upfront Premiums -FHA MIP Changes-

Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.

Mortgage Type Upfront Premium Requirement
Purchase Money Mortgages and Full-Credit Qualifying Refinances 100 BPS
Streamline Refinances (all types) 100 BPS

Annual Premiums

Effective for FHA loans for which the case number is assigned on or after
October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:

LTV Annual Premiums for Loans > 15 Years
= or <>95 percent 90 BPS

The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.

LTV Annual Premiums for Loans = or < years =" or">90 percent 25 BPS

Speed Record!

2010-09-17T07:20:00.000-07:00

Yes it's possible to close escrow on a FHA loan in less than 30 days! As a local Mortgage Broker, we are able to establish multiple relationships with several of the best lenders in the country. This means we can use our relationships to help you close fast. Our average FHA turn time is 2 days in underwriting and a total of 22 days from start to finish! Of course certain guidelines apply, why not call today! Let us break the speed record for you!!

United Commonwealth Mortgage

2010-09-16T16:08:00.000-07:00

Work with a lender that offers you solutions! United Commonwealth Mortgage can get you answers fast and with accuracy! Call today! We are FHA experts!

Your FHA Fact of the Day...

2009-12-04T16:53:00.000-08:00

Your FHA Fact of the Day!

DID YOU KNOW:

The guidelines we will use are the following:

We require a minimum of three pieces of credit that have a perfect 12 month history.

At least two of the three must be traditional credit – ie: rent, mortgage, auto loan, credit card, etc

(Note, if rent is to an individual, we will require canceled checks or bank statements for a minimum of 6 months)

One piece of credit can be from the following – Utilities, Auto insurance, rent to own, school tuition, cell phones, department stores, personal loan (with repayment terms in writing and canceled checks) This type of credit reference is not acceptable if it is payroll deducted.

IF A TRADELINE CLOSED OR WAS LAST USED WITHIN THE PAST 12 MONTHS BUT HAD A 12 MONTH HISTORY, IT IS ACCEPTABLE AS PART OF THE THREE TRADELINES.

NOTE: Accounts shown as “authorized user” do not count in building the borrower’s credit history.

REMINDER – if a borrower does not meet the above credit guidelines, the following guidelines come into play.

• Qualifying ratios are to be computed only on those occupying the property and obligated on the loan, and may not exceed 31 percent for the payment-to-income ratio and 43 percent for the total debt-to-income ratio. Compensating factors are not applicable for borrowers with insufficient credit references.

AND

• Borrowers (with or without non occupying co-borrowers) should have two months of cash reserves following mortgage loan settlement from their own funds (no cash gifts from any source should be counted in the cash reserves for borrowers in this category).

Acceptable Types of non-traditional credit references:

Utilities if not included in rent

-gas

-electricity

-water

-land line home telephone service

-cable TV

School Tuition

Retail Stores

Rent to Own stores

Internet/Cell phone services

Payment to child care providers – made to a business providing such services

A personal loan from an individual with repayment terms in writing and supported by cancelled checks for 12 months

New Law Expands Benefits for Taxpayers

2009-12-01T11:03:00.000-08:00

This is the latest newsletter from Riolo, Roberts & Freddi, LPP our favorite local CPA Firm. They are located at 1227 Pleasant Grove Blvd. Roseville, CA 95678 and their number is (916) 771-4134 ext 202

The new Worker, Homeownership, and Business Assistance Act of 2009 contains several key provisions
affecting individuals and business owners. The following is a brief summary.
♦ Homebuyer’s Credit
Under prior law, an eligible first-time homebuyer could claim a maximum credit of $8,000 for a principal
residence purchased before December 1, 2009. This credit, however, began to phase out for single filers
with a modified adjusted gross income (MAGI) above $75,000 and joint filers above $150,000.
Under the new law, the credit is available for home purchases made before May 1, 2010 (July 1, 2010, if a
binding contract exists before May 1). Also, the phase-out threshold increases to $125,000 of MAGI for
single filers and $225,000 for joint filers. The homebuyer credit may be elected on a 2009 tax return for a
qualified purchase in 2010.
New limit for everyone: No credit is allowed for purchases after November 6, 2009, if the price exceeds
$800,000.
Not just for first-timers: If you buy a home after November 6, 2009, and have owned and used the previous
home as your principal residence for five consecutive years in the last eight years, you may claim a credit of
up to $6,500.
♦ NOL Carryback
Normally, a business can carry back a net operating loss (NOL) for only two years before carrying it forward
for up to 20 years. A prior law change allowed a carryback for three, four, or five years to qualified small
business for NOLs in tax years beginning or ending in 2008.
The new law extends the longer carryback regardless of the size of the business. This election is generally
available for NOLs incurred in either 2008 or 2009.
Caveat: Under the new law, an NOL carried back to the fifth year is limited to 50% of the taxable income
for the year. Any remaining NOL may offset income in the remaining four years.
♦ Other Provisions
Unemployment benefits are extended for up to 14 weeks (20 weeks for individuals in states with high unemployment
rates). But the tax exclusion for the first $2,400 of unemployment benefits received in 2009 isn’t
extended.
Finally, the new law includes several revenue-raisers to pay for the favorable changes, such as expanded use
of e-filing by small tax return preparers, an extension of the FUTA surtax, and increased penalties for failing
to file partnership and S corporation returns.
NEW LAW EXPANDS BENEFITS FOR TAXPAYERS

NEW RULES IN 2010 FOR ROTH IRA CONVERSIONS
Beginning in 2010, the rules governing Roth IRA conversions will undergo a significant change. Traditional
IRA to Roth IRA conversions will be available to everyone, creating a financial planning opportunity that
didn’t exist previously. Under the 2009 rules, taxpayers with income of more than $100,000 cannot convert a
traditional IRA to a Roth IRA. Tax legislation enacted in 2006 changed the rules and ends the $100,000
income limit, effective January 1, 2010.
The Roth IRA has been a popular investment vehicle, with its ability to give taxpayers tax-free distributions
once the account has been in existence for five years and the taxpayer has reached age 59½. Another Roth
benefit is the lack of required minimum distributions once the owner reaches age 70½.
* * The conversion to a Roth does have a cost. When you convert a traditional deductible IRA to a Roth, you
must include the entire amount converted in your taxable income.
If you do a conversion in 2010, you are allowed to report half of the income on your 2011 tax return and the
remaining half on your 2012 tax return. You can also choose to pay the taxes due on the conversion on your
2010 return. While prepaying seems counterintuitive, remember that present federal tax rates are set to expire
December 31, 2010. Postponing income into future years could mean a bigger tax bill.
The new conversion rules are particularly advantageous to those upper-income taxpayers who could never
participate in a Roth. Now taxpayers in high tax brackets will have access to Roth IRAs. One possible
strategy is to set up a traditional IRA with nondeductible contributions in 2009 and then convert it to a Roth
in 2010.

100% Financing Still Available - check it out

2009-11-22T09:31:00.000-08:00

What Is A.P.R.?

2009-11-19T16:13:00.000-08:00

What is the difference between the interest rate and the A.P.R.?

You will see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to "why" is that federal law requires the lender to tell you both. The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms.

The A.P.R. is designed to represent the "true cost of a loan" to the borrower, expressed in the form of a yearly rate. This way, lenders cannot "hide" fees and upfront costs behind low advertised rates.

While it's designed to make it easier to compare loans, it's sometimes confusing because the A.P.R. includes some, but not all, of the various 3rd party fees, title fees, and insurance premiums that accompany a mortgage. And since the federal law that requires lenders to disclose the A.P.R. does not clearly define what goes into the calculation, A.P.R.s can vary from lender to lender, loan to loan, amounts change acording to what month property tax’s are due for payment and even prepaid interest for days remaining in the given month funding occurs.

The A.P.R. on a loan tied to a market index, like a 5/1 ARM, assumes the market index will never change. But ARMs were invented because the market index changes and makes fixed rate loans cheaper or more expensive to make -- that's why they're variable rate in the first placed!

So, A.P.R.s are at best inexact. The lesson is, that A.P.R. can be a guide, but you need a mortgage professional to help you find the truly best loan for you. Note when you are browsing for loan terms that the A.P.R. will not tell you about balloon payments or prepayment penalties, or how long your rate is locked. In addition, you will see that A.P.R.s on 15-year loans will carry a higher relative rate due to the fact that points are amortized over a shorter period of time.

You Caught Me!

2009-11-14T13:59:00.000-08:00

Now there are two dates I want you to keep in mind because there’s a time limit and we want to make sure that you make it.
1. You have to be under contract to buy the new home by April 30th and
2. You have to close before June 30th.
That might sound like a long time off. But you need to go out and start looking right now because it will be here before you know it. Again, the credit is for first time home buyers and now for those of you that already own a home. If you’ve had a house for five of the last eight years you get a $6,500 credit when you buy a house. Very cool stuff. We’ll put a link right here on this page so that you can get the details for more information.My question to you today is what would you do with the $8,000 or the $6,500 depending upon which group you fall in? What would you do with that extra money when it came to you?

http://www.federalhousingtaxcredit.com

$8,000 Homebuyers Tax Credit Extended

2009-11-09T16:58:00.000-08:00

$8,000 homebuyers tax credit extended

President Obama reups popular tax credit through June 2010 and expands it to include people with higher incomes and some who want to trade up into new homes.
By Les Christie, CNNMoney.com staff writer
November 6, 2009: 3:18 PM ET
NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.
The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.
"The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.
Who qualifies?
Nicholas provided four scenarios illustrating how the tax credit rules for existing homebuyers will apply:
• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.
• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.
• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.
• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.
How it helps the economy
Legislators and industry experts expect that the credit will encourage buyers such as Jane and Sue to move up their purchase plans.
"This bill will shift demand from the second half of 2010 into the first half," said Pat Newport, a real estate analyst with IHS Global Research. "As a result, home sales and prices will get a boost in the first half of 2010, with payback in the second."
That's not a bad thing, according to Bill Kilmer, vice president of advocacy for the National Association of Home Builders. It's important to stabilize real estate markets quickly to help bring the economy out of its tailspin.
The original $8,000 tax credit appears to have helped accomplish that goal: Home prices have inched up the past few months, according to the S&P/Case-Shiller Home Price Index.
Would it have happened anyway?
But critics still see the program as being ineffectual because it rewards buyers who would have purchased a home anyway. Newport estimates that fewer than 400,000 of the 2 million who have claimed the original credit made their purchases solely because of the tax advantages.
Furthermore, buyers do not, in reality, receive the entire benefit. "The credit helped prices stabilize," said Newport. "So the credit has been split between seller and buyer. The sellers are getting higher prices and buyers paying more than they would have without it."
The housing industry, however, is pleased with the extension, although the credit has not been quite as effective as they hoped.
The industry thought the credit would provide a ripple effect, with sales to first timers triggering as many three additional "move-up" sales.
That did not happen, according to Lawrence Yun, NAR's chief economist.
"It did not have the chain reaction impact it was supposed to," he said. "Instead, many first-timers turned to vacant, foreclosed or other distressed properties the sellers of which were unlikely to be move-up buyers."
So, the tax credit helped prop up the low end of the market without having much impact on the rest of the spectrum. Expanding the benefit to existing homeowners should boost those segments. That should produce additional benefits, according to Yun.
"Preventing further price decline or even nudging prices up a bit stabilizes housing wealth, which makes homeowners more comfortable in their spending," said Yun. "They're more likely to go out to the stores or buy a new car. That provides a boost to the overall economy."

Hot off the AP Wire - Tax Credit Making its way...

2009-11-05T12:19:00.000-08:00

By JIM ABRAMS, Associated Press Writer Jim Abrams, Associated Press Writer – 15 mins ago

WASHINGTON – Congress took further steps to right the staggering economy by expanding a popular tax credit for homebuyers and extending unemployment checks for the growing legions of people running out of benefits with few job prospects.
The White House said the legislation builds on its efforts to spur job creation and President Barack Obama would sign it into law Friday morning.
The House passed the bill on a 403-12 vote Thursday, a day after the Senate ended a monthlong stalemate with a 98-0 vote. With some 7,000 people exhausting unemployment benefits every day and the $8,000 tax credit for first-time homebuyers set to expire at the end of November, there was a sense of urgency in getting it to Obama's desk.
The $24 billion package also contains tax credits aimed at struggling businesses.
The IRS says some 1.4 million people applied for the homebuyers credit through August, helping enliven the moribund housing market. The legislation would extend the program through June of next year, as long as the buyer signs a contract by the end of April. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years.
The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.
The nearly 2 million who have exhausted their unemployment benefits or face termination of benefits, usually about $300 a week, before the end of the year would receive 14 weeks of additional benefits under the bill. The unemployed in those states where the jobless rate tops 8.5 percent would get six weeks on top of that.
House Majority Leader Steny Hoyer said the bill would also help the economy because the unemployed quickly spend their checks on living necessities. "We help people in very bad straits and we help our economy and help us all."
All but 12 Republicans voted for the bill, although several took the opportunity to swipe at the Obama administration's efforts to produce new jobs. "Make no mistake, the unemployment benefits are no substitute for a good job,"said Rep. Kevin Brady, R-Texas.
The extension would be the fourth since June of last year and the first since the $787 billion stimulus package was enacted last February. The unemployed in the hardest-hit states could, once the bill becomes law, receive a maximum of 99 weeks of benefits, well above the previous record of 65 weeks in the 1970s.
Lawmakers said aggressive measures are needed because the unemployment rate, now at 9.8 percent, is expected to hover around 10 percent into next year and more than one-third of the 15 million unemployed have been looking for work for at least six months, a record.
The nation has lost 8 million jobs since the "great recession" began at the end of 2007, said Rep. Jim McDermott, D-Wash., a chief sponsor of the legislation. Even with the recession winding down, "we know it will take considerable time to restore those lost jobs."
"A stunning 600,000 workers ran out of jobless benefits in the past two months alone, and thousands more are projected to by the end of the year," said Christine Owens, executive director of the National Employment Law Project. "Workers need this extension, the economy needs this extension."
The bill only applies to those running out of benefits before the end of the year, and McDermott reminded his colleagues that Congress may have to revisit the issue before it adjourns for the year.
The bill would also allow businesses that have incurred losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.
The two tax credits, each costing more than $10 billion over 10 years, are paid for by delaying enactment of a law giving international companies more leeway in how they allocate interest expenses between U.S. and foreign sources in determining tax liabilities.
The $2.4 billion cost of extending unemployment benefits is offset by extending through June 2011 the federal unemployment tax that employers pay for each employee.
The three measures would add $43 billion to the 2010 deficit and then be repaid over time.

How to Purchase a Home with a FHA Loan with Almost Zero Down

2009-11-02T17:59:00.000-08:00

For a limited time, up to 99.5 % financing is being offered to increase home ownership opportunities to individuals and families in California. You can purchase a home with a FHA Loan for as little as .5% down payment. Yes! That’s right! As little as a 1/2% down payment.

Call our office at (916) 960-5900 to learn more about the details of this program.

CHF has negotiated with FHA to allow a second mortgage to cover 3% of the 3.5% required down payment by using the CHF Access down payment assistance loan.

Eligibility Guidelines:
Not Limited to just first time home buyers.
3% 2nd loan can be used for down payment or to pay closing costs.
FICO under 600 ok on case by case basis.
No Sales price limits.
No minimum borrower contribution.
No pre-pay penalties.
Gift funds are allowed from family members.
Seller contributions allowed, up to 6%.
Income limits are 120% of HUD AMI.
2nd loan (CHF Access) is 15 year fixed @ 8.5%.
No recapture tax / penalty if home is sold later on.

Call (916) 960-5900 to learn how you can qualify for this program.

Important FHA Update (Realtors this is for you)

2009-10-31T13:11:00.000-07:00

Just an FYI….some helpful information to share with your realtors….they need to start doing the Amendatory Clause with the purchase agreement. (same date)

An amendatory clause must be included in the sales contract when the borrower has not been informed of the appraised value by receiving a copy of Form HUD-92800.5B, Conditional Commitment/DE Statement of Appraised Value or VA-CRV before signing the sales contract. The Amendatory clause must contain the following language:

''It is expressly agreed that notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender setting forth the appraised value of the property of not less than $_________. The purchaser shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value or the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.''

The actual dollar amount to be inserted in the amendatory clause is the sales price stated in the contract. If the borrower and seller agree to adjust the sales price in response to an appraised value that is less than the sales price, a new amendatory clause is not required. However, the loan application package must include the original sales contract with the same price as shown on the amendatory clause, along with the revised or amended sales contract. The Amendatory Clause is not required on HUD REO sales, sales where the seller is Fannie Mae, Freddie Mac, the Department of Veterans Affairs, Rural Housing Services, other Federal, State and local government agencies, mortgagees disposing of REO assets, or sellers at foreclosure sales and those sales where the borrower will not be an owner-occupant (e.g., sales to nonprofit agencies).

UCM approved with the "Fastest FHA Lender in the Country"

2009-10-31T00:34:00.000-07:00

Important Announcement...

United Commonwealth Mortgage, Inc is now approved to do business with the fastest FHA wholesale lender in the country, United Wholesale Mortgage, located in Birmingham, Michigan.

"We are unparalleled in our knowledge of FHA products—streamlines and buydowns are always expanding our conventional product line. Our talented team has years of experience with an impressive background in both the wholesale and retail markets. We walk through the loan to determine viable solutions to get loans closed. Our Sales and Operations staff works closely together in teams to provide you with the quickest possible response time. Underwriters are available to you anytime during the day for your questions; provide an old fashioned common sense approach to loans and manual underwriting where needed. Our continued success and growth has brought about expansion which is a direct result of our positive teamwork and dedication to exceptional service." United Wholesale Mortgage Account Executive Mike Nicholson

The addition of this FHA lending source will allow United Commonwealth Mortgage, Inc to maintain its competitive advantage by offering the best rates and the fastest closing times.

"Since the majority of every loan we fund is a purchase, we understand the urgency of closing on time and we are committed to making that happen 100% of the time." says the President of United Commonwealth.

If you need your FHA loans closed fast and on time, we are the local source for you.

Great News for First Time Buyers...

2009-10-30T14:50:00.000-07:00

Great News from Washington - Tax Credit Extended!

Senators agree to extend homebuyer tax credit By STEPHEN OHLEMACHER (AP) – 25 minutes ago WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new homes sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit. Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers. Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash. Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening. Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own. Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires. Majority Democrats have refused to add the amendments. If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers. Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate. Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion. Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March. It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. "Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years. The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive. "It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax. A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag. "Because everybody is so cash strapped, this is a good way to get refund when businesses need it for operating expenses," said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.