Category Archives: Mortgage Information

Foreclosure Default Dip to Lowest Levels Since 2006

Posted on February 10, 2014 | Leave a comment

Foreclosures and mortgage defaults fell during the first half of the year to their lowest levels since 2006, show figures released Tuesday from real estate tracker DataQuick.

The declines come at a time when the county’s home prices have risen to a 5½-year high and mortgage professionals are adjusting to a California law that protects homeowners from potential foreclosure abuses.

Foreclosures totaled 1,489 during the first six months of the year. That’s the the lowest half-year tally for the county since 2006, when 445 foreclosures were counted.

Nearly 3,500 mortgage defaults were filed from January to June. That marks the lowest level of defaults since 2006, when more than 3,300 were recorded.

On a monthly basis, foreclosures are down as well. They dropped 13 percent to 152 in June from the month before. Notices of default in June totaled 654, up 2 percent from the previous month but down 55 percent from the same time a year ago.

New Federal Rule Gives Home Buyers Better Access to Appraisals

Posted on February 6, 2014 | Leave a comment

WASHINGTON — A new federal rule could give millions of home buyers insights they’ve never had before about a crucial element of their mortgage application: the appraisal, including the electronic cross-checks and reviews now used by lenders to determine the amount of the loan they’ll approve.

The new rule will also give buyers the time and ammunition they need to challenge appraisals that they suspect contain errors. Starting this weekend, lenders nationwide will be required to inform mortgage applicants that they can receive a free copy of whatever appraisals, reviews, computer valuations and other data are used in the transaction. They will be entitled to see this material promptly after the appraisal report is completed, or three days before their loan closes, whichever is earlier. The lender will have to inform them of their new rights within three business days after receipt of their mortgage application.

This contrasts with the current system, in which lenders don’t have to provide you with a copy of the appraisal unless you request it. The additional valuation data — which may include follow-up review appraisals by a second appraiser, multiple “automated” valuations and “broker price opinions” provided at low cost by realty agents — currently are not subject to disclosure, even though they may have played a role in the final decision on your loan.

Now everything will be mandatory. You have to be given any significant information that was integral to the valuation of the property, even if you had no idea it existed and didn’t ask to see it.

The new rule implements changes to the Equal Credit Opportunity Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It will be overseen by the Consumer Financial Protection Bureau. Unlike earlier rules, the disclosure requirements will be limited to mortgages that are first liens on a home, including reverse mortgages and construction loans. If you’re applying for a second mortgage or second-lien home equity credit line, the bank will not have to provide you appraisal materials, although you are still free to ask.

So what might this mean to you in practical terms? Potentially plenty. Say your appraiser works for a management firm that uses low-cost, inexperienced appraisers. By chance it turns out that your appraiser lives 80 miles away and is not familiar with local real estate trends. Then the valuation comes in low because the appraiser used inappropriate “comparable” properties, including a house that sold at a depressed price because the owners were in financial distress.

Disclaimer: for information and entertainment purposes only

Why Fed Reserve Will Raise Rates

Posted on February 1, 2014 | Leave a comment

Recently, Deery shared important news regarding upcoming changes from the U.S. Federal Reserve. In December, the Fed announced it would begin tapering its aggressive bond-buying program, planning to trim equally from both mortgage and Treasury bonds. This change heralds the end of the measures the Fed made to bolster the U.S. economy during its recent struggles.

The change is a result of improving economic data for the U.S, indicating the country’s economy is truly on the road to recovery. The tapering of the Fed’s monetary stimulus program called Quantitative Easing (QE) will begin in January and continue throughout 2014. When it comes to the housing marketing, this gradual increase will result in increasing mortgage rates throughout coming months. However, the current market still offers outstanding opportunities for prospective homebuyers.

“This decision from the Fed is a trigger to get out there and look for a home while rates are low, as the Fed is still giving buyers the opportunity to borrow money at a discount,” said Deery.

He noted that, although the announcement signals a move toward a higher rate environment, it’s still important to put current rates in perspective.

“Mortgage rates continue at all-time lows,” said Deery. “Overall, it’s still a great time to buy a home, as the Fed is still offering money at a discount, so take advantage of this while they continue to do their monetary stimulus programs.”

Deery recommends that buyers who have been on the fence about buying a home or refinancing should act earlier rather than later because of the rising rates.

disclaimer: for information and entertainment purposes only

Category Archives: Mortgage Information

Foreclosure Default Dip to Lowest Levels Since 2006

New Federal Rule Gives Home Buyers Better Access to Appraisals

Why Fed Reserve Will Raise Rates

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