Rates
Not going to spend too much time on rates, lots below, but overall rates worsened this week, which was expected after last weeks chaos.
Rates ended up about .125 of a point, teetering around the High 3’s to low 4’s.
Stock rallied and not much news out of Europe, next week we will have a little more volatility.
Also watch Oil, looks like Saudi Arabia is ratcheting down production to try and increase oil prices, which is negative for rates.
Watch the Ebola case in New York, if the current doctor is an isolated incident, then we shouldn’t have too much volatility in the markets, but if he was contagious and hopping around New York, and 1 other person gets infected, all bets are off, and mass hysteria could ensue.
Cautiously Floating right now, can’t be too greedy about where rates are.
Fannie rule changes
December 19th Fannie Mae is updating their Automated Underwriting system, there will be changes to LTV, types of homes, FICO scores. Actually quite a few changes. Just be aware someone qualified for a mortgage today, may NOT be qualified aft 19th.
GSE easing
It was announced this week that Fannie and Freddie are going to ease some of the lending restrictions here is what they are going to do:
1-Lower downpayment requirements from 5% to 3%
2-Ease the FICO score rules down to 620
3-Honor different sources of down payment assistance.
4-Ease some appraisal restrictions.
Basically Fannie and Freddie are going to roll out the HFA program to all lenders, not just restrict them to HFA (Housing and Finance Authorities), like IHA is.
http://www.375loan.com/loan_products/idaho_housing__home_loans/
This is GREAT news, because it will allow more people who may not qualify to now qualify for mortgage other than FHA loans.
So time to call up all you old leads, and tell them the good news.
As soon as they release the new guidelines, I will have a flyer!
FHA flipping rules
Well we knew it couldn’t last forever, FHA as of 12/31/2014 will no longer allow a buyer, got FHA, to purchase a property, if the seller has been on title <90 days.
This means you will need to check web sites, Title One has a pretty good one, to see if the seller has been on the title for more than 90 days.
Link to article here: http://www.latimes.com/business/realestate/la-fi-harney-20141019-story.html
And keep in mind, the date of the purchase agreement needs to be +1 day, you can’t write the offer up on the 90th day, it needs to be the 91st day. And make sure you get out a calendar, some months only have 30 days…
2007 Mortgage Relief Act
Looks like congress will NOT extend the Mortgage Relief Act of 2007, atleast as of today.
This allowed for someone who did a short sale or a foreclosure, and there was a deficiency to the bank, to not be taxes on any amount that was forgiven by the bank.
So a person owed $100,000 on home, short sold or Foreclosed it for $80,000, the bank’s deficiency was $20,000.
Banks can then forgive that $20,000, which means they will 1099 the owner. Typically 1099 is income and is taxable. The MRA2007 instructed the IRS not to tax that $20,000.
Well the act expired 12/31/2013, and there was some hope that Congress would extend that into 2014…that would be a negative ghost rider.
So now anyone who SS or FC a home in 2014 or from here on out, and the bank forgave the deficiency, they will be taxed on that amount…ouch!
Make sure you clients consult their CPA’s!!!!
New web addresses
I mention a few weeks ago that ICAN who regulates the web and address is releasing new dot whatever addresses.
As an example, I am now the proud owner of: www.idaho.loans
So they release quite a few and one of them is .realtor
This will be regulated by NAR, so if you want a cool web site with your name, like:
Johnsmith.realtor
You better giddy up and reserve it, NAR will let you have 1 for free, link below.
It is FREE, so reserve it now, you don’t have to use it, but if you don’t reserve it you won’t get it.
Link here: https://www.claim.realtor/
Same Sex Marriage in Idaho
Looks like same sex marriage in Idaho is here to stay, and no matter what your political view, you have to abide by it.
So this comes to question, how to vest same sex couples.
I posed this question to Title One and here is what they said.
If you have 2 ladies, say Molly Jones and Mary Smith, and they were either married in California, or got married, as of last week, in Idaho. And they are purchasing a home, here is vesting:
Molly Jones and Mary Smith, as married persons.
Or
Molly Jones and Mary smith, a married couple.
Of course neither Title One or me are your Broker, so you probably want to verify with your Broker as well.