Category Archives: Mortgage Information

The Energy Efficient Mortgage

Posted on June 18, 2013 | 1 comment

Energy mortgages are essentially mortgages that credit a home’s energy efficiency in the home loan.

For an already energy efficient home, this could allow the borrower a greater debt-to-income ratio, thereby giving the homebuyer the ability to buy a higher quality home due to lower monthly heating and cooling costs.
For homes where energy efficiency can be improved, an energy mortgage allows money saved in monthly utility bills to finance energy improvements.

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A variety of energy mortgages have appeared in recent years and more are anticipated as RESNET and the Environmental Protection Agency increase education and information outreach.

Energy mortgages come in two basic categories:

Energy efficient mortgages, which are used to finance homes that are already energy efficient.
Energy improvement mortgages, which are used to improve the efficiency of existing homes.

Energy mortgages are sponsored by both federally insured mortgage programs (i.e., Federal Housing Administration and Veterans Administration), as well as the conventional secondary mortgage market (i.e., Fannie Mae and Freddie Mac).

Read more at: http://www.resnet.us/energy-mortgage

Disclaimer: for information and entertainment purposes only.

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Posted in Mortgage Information

Tagged energy efficient mortgage, home mortgage, improvement mortgage, solar

High Closing Fees? Maybe Kickbacks are to Blame

Posted on June 6, 2013 | Leave a comment

Advice to homebuyers from CAARE

• Always shop for title insurance and settlement service alternatives to the in-house deals you’re offered.

• Ask your realty agent to help you shop beyond the affiliation network. Agents have a duty to help you get the best deals and best service, and they often know where they are. If you find better prices from unaffiliated vendors, don’t let anybody pressure you to go with the in-house, preferred provider. It’s your legal right to choose.

A settlement between the federal Consumer Financial Protection Bureau and a Texas homebuilder is drawing renewed attention to a controversial issue that was prominent during the years preceding the housing bubble: kickbacks in home real estate transactions.

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Put another way, do you know where your money is really going when you pay thousands of dollars in loan fees and closing charges? Is your realty broker or builder getting an extra piece of the action through side deals with lenders or title agencies — all at your expense through higher charges?

The CFPB’s allegations in its case against Dallas-based Paul Taylor Homes illustrate how these arrangements can work: According to the settlement, the builder created partnerships with two lenders — one a bank, the other a mortgage company. In reality, however, according to the CFPB, “both entities were shams” designed to funnel kickbacks to Taylor for referrals of home purchasers needing mortgages.

Though the partnership entities had names — Stratford Mortgage Services and PTH Mortgage — and appeared to be the funding sources for the loans, they in fact were shells with no separate employees, office space or real substance, the CFPB alleged. They did not advertise their mortgage businesses to the general public, instead servicing only Taylor purchasers.

Tips on selecting the “right” mortgage lender

Posted on June 4, 2013 | Leave a comment

Whether you are a first-time buyer or seasoned veteran, obtaining a home loan today is more difficult than ever.

The level of lender scrutiny and the maze of loan programs has never been more complex or illogical. The key to navigating this “Kafkaesque” process is selecting the right mortgage loan officer. But before you open up your personal information vault, do your own due diligence.

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There is one Web site that makes the loan officer investigative process relatively easy. The National Mortgage Licensing System & Registry (NMLS) maintains a site providing consumer access to the administrative and license information for state regulated mortgage lenders in all 50 states and the District. The NMLS Consumer Access site can be searched free of charge at www.nmls
consumeraccess.org .

With a few mouse clicks you can obtain a treasure trove of information about your proposed mortgage lender. Before revealing any personal financial data, you should confirm that your loan originator is licensed. In fact, in the Washington area, Keller Shinholser, senior loan officer for Apex Home Loans in Rockville, advises that you work with a loan officer that is licensed in all three local jurisdictions. “If you start working with a loan officer only licensed in the District, and you later decide to buy a home in Virginia, you may have to start the loan approval process all over again,” she said.

Disclaimer: for information and entertainment purposes only