Lots of changes, for the good!?
2017 Loan limits increase
GREAT news, lending limits have increased for all areas of Idaho!
Conventional limits have increased from $417,000 to $424,000, for areas like Boise or Nampa, and in high cost areas, such as Sun Valley, the limit increased to $636,150.00
For FHA, the limit has increased from $271,050 to $275,665, once again, for like Boise or Nampa, and in high cost area, Sun Valley, the limit is now $636,150.00.
And for VA, we have gone from $417,000 to $424,100.
Fannie and Freddie increasing appraisal waivers.
For the last 5+ years, each time we get an appraisal completed, we have had to upload this data directly to Fannie and Freddie, so they have been collecting data on trends. Well beginning next month, Fannie and Freddie will allow for more Property Inspection Waivers (PIW). What is this you ask, well when we run a file in Fannie or Freddie’s automated underwriting cloud computer, sometimes we get a PIW. Now all of my lenders will honor that PIW, some big banks and credit unions will not. Honoring it means we accept the value and DO NOT have to order an appraisal. I have had 2 of these in the last 2 months, one on a refinance and one on a purchase.
This is AWESOME because it saves the borrower an average of $525 on the appraisal fee, and cuts off 7-10 days of underwriting. This is SWEET!!!
Solar Panels
Beginning in March 2017, appraiser and lenders are going to have new guidelines when the home being purchased has solar panels, and whether or not they have been purchased, bought under an installment loan or are leased.
HMDA new rules
Home Mortgage Disclosure Act, right now has lenders releasing about 40 data points about the loan application, items like price, down payment, MID FICO score, if it was denied, or closed, loan amount. But beginning in 2017, lender will have to release almost 200 data points to the federal government, and this time, it is some pretty personal information.
Suggestion for Realtors
With the new TRID now in place for over a year, we are highly recommending that Idaho Realtors put their personal license number AND their company license number in their email signature lines, on their business cards, and we have recommended to the Idaho Real Estate Commission that it be put on the Real Estate forms as well. Makes title and lender’s jobs easier!
Mortgage Rates
Well all I can say is OUCH, since the election of Trump, mortgage rates have been on a rocket ride to Mars, with rates jumping almost .75% since the election. This is causing LOTS of anxiety in our industry and has all but dried up refinances, although cash out refinances are hot right now.
Majority of this is due to money being taken out of bonds and put into the stock market. Next is the anticipation of the Federal Reserve raising rates next week. And finally, we have been warning about this for a long time, mortgage rates couldn’t just be in the 3’s forever.
We anticipate a little cooling of rates for a few weeks, hopefully finding a stable top for the mean time, and causing rates to take a more gradual increase, rather than jumping off a cliff.
The talking heads feel that rates will stay put where they are for the rest of the 3 weeks left in the year, but it is anticipated that rates will trend towards the 5’s in 2017.
Appraisal issues
It seems that appraisal have finally come back to that 5-7 business day turn time, but we are defiantly blessed in the Boise area, here are some interest facts about appraisal in other areas:
Seattle 10-15 days, average price is $1800
Portland 21-35 days, average price $1200
Montana, 28+ business days, average price $900.
Right now, to become an appraiser, you have to have a 4 year degree + 2000 hours working under another appraiser. This is hopefully going to change and be taken down to 2 year degree + 1000 hours.
Some interesting news:
Coleman Homes was purchase by Toll Brothers, and if you don’t know who Toll Brothers is, you must not watch national news. Toll Brothers if one of the largest, publicly traded, builders in the US.
They currently operate in 20 states, and build in the middle high to high end homes. I suspect that they will come in and start acquiring land and for the near future, push prices down to try and gain market share.
Article here: http://www.builderonline.com/builder-100/strategy/toll-acquires-coleman-homes-in-idaho_o
Bank of the Cascades has been sold, again, I think this is the 4th time?? Link to article here: http://www.idahostatesman.com/news/business/article115513478.html