MARKET UPDATE AUGUST 2014 FANNIE MAE SHORT SALE GUIDELINE CHANGE – AUGUST 16TH, 2014 The waiting period requirement for borrowers who have had a previous deed-in-lieu of foreclosure or a pre-foreclosure sale/short sale has been reduced from 7 years to 4 years. Loans with 80% LTV/CLTV were previously allowed after 2 years; however, this is now only allowed with documented extenuating circumstances, but at the maximum LTV/CLTV. Four years is the new required waiting time, but the LTV restriction has been removed and maximum LTV/CLTVs are available. Waiting Periods Under the Old Guideline Waiting Periods Under the New Guideline 7 years from the date the deed to the property was transferred back to the servicer. 4 years from the date the deed to the property was transferred back to the servicer. No LTV/CLTV limitations. 4 years from the date the deed to the property was transferred back to the servicer. Maximum 90% LTV/CLTV. 2 years from the date the deed to the property was transferred back to the servicer. Maximum 80% LTV/CLTV. A 2-year waiting period up to 90% LTV/CLTV permitted if extenuating circumstances could be documented. A 2-year waiting period will be permitted if extenuating circumstances can be documented. No LTV/CLTV limitations. If you currently have any buyers who experienced a deed in lieu of foreclosure or a pre-foreclosure sale/short sale over two years ago but less than four years ago, please encourage them to apply for financing with Geneva Financial, LLC before August 16, 2014. Homebuyers who fit this description and who submit applications on or after August 16, 2014 will be required to wait four years from their short sale or deed in lieu to qualify for home financing, unless they have documented extenuating circumstances. EXISTING HOME SALES ON THE DECLINE Existing home sales in June decline 2.3% from June 2013. Median existing home prices did rise 4.5% from last year, now at $224,300. Total housing inventory climbed 2.2%. 2.3 million existing home are currently on the market. Inventory is at a 5.5 month supply. Lawrence Yun, NAR chief economist, said housing fundamentals are moving in the right direction. “Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country. This bodes well for rising home sales in the upcoming months as consumers are provided with more choices,” he said. “On the contrary, new home construction needs to rise by at least 50% for a complete return to a balanced market because supply shortages – particularly in the West – are still putting upward pressure on prices.” – Lawrence Yun, NAR Chief Economist Region Existing Home Breakdown: · Existing home sales in the Northeast rose 3.2% to an annual rate of 640,000 in June, but are 3.0% below a year ago. The median price in the Northeast was $269,800, slightly below (0.1%) June 2013. · In the Midwest, existing home sales jumped 6.2% to an annual rate of 1.20 million in June, but remain 2.4% below June 2013. The median price in the Midwest was $177,900, up 4.6% from a year ago. · Existing home sales in the South inched 0.5% higher to an annual level of 2.06 million in June, and are up 1.0% from June 2013. The median price in the South was $192,600, up 3.4% from a year ago. · Existing home sales in the West rose 2.7% to an annual rate of 1.14 million in June, but remain 7.3% below a year ago. The median price in the West was $301,000, which is 7.2% above June 2013. (housingwire) PENDING HOME SALES DIP The National Association of Realtor (NAR) reported this week that pending home sales dropped 1.1% from May and 7.3% from June of last year. Despite the drop, prices rose, with the median home prices up 4.3% from June 2013. (housingwire) DEMOCRATS WAGE ATTACK AGAINST THE GSEs Reps. John Delaney (Md.), John Carney (Del.), and Jim Himes (Conn.), have just introduced a bill to unwind Fannie Mae and Freddie Mac. The Partnership to Strengthen Homeownership Act would provide a government guarantee for mortgages, but would require a minimum of 5 percent private capital support. The remaining 95% of the risk would be shared through an insurance program established through Ginnie Mae and a private reinsurer, The Hill reported. (Mortgage Professional America) Fannie Mae and Freddie Mac will likely be here for the foreseeable future. Both of the GSEs are posting record profits. Even the Republicans have a hard time arguing with that. FED TO RAISE RATES Fed Chair, Janet Yellen, told the Senate Banking Committee that the Federal Reserve may look to raise interest rates sooner than later. “If the labor market continues to improve more quickly than anticipated by the Federal Open Market Committee, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target likely would occur sooner and be more rapid than currently envisioned,” Yellen said. Yellen has previously admitted that the housing “recovery” is disappointing. The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery, she said. Yellen said overall, the economy is “continuing to make progress toward the Federal Reserves objectives of maximum employment and price stability.” (housingwire) REFINANCING SAVES HOMEOWNERS MORE THAN $1 BILLION Freddie Mac’s second quarter refinance analysis shows that borrowers will save “in aggregate” more than $1 billion in interest payments over the coming year, through refinancing; shortening the loan term, and lowering interest rates. Interest rates, while off their historic lows, are still very low, with increased savings on shorter term 10 and 15 year mortgages. Nearly 40% of those who refinanced, shortened the loan terms. (housingwire) APPLY FOR A MORTGAGE AT THE USPS The United States Postal Service may be getting into the home loan origination business. Get your mail and mortgage in one convenient location. New legislation proposed by our Congress last week may make that possible. The Providing Opportunities for Savings, Transactions and Lending Act would allow the United States Postal Service to offer bank accounts, and even home loans. A last ditch effort to generate more revenue and save the Postal Service? We will see. Why not install grills and sell a few hamburgers while you are at it. ARIZONA IS STILL GIVING AWAY MONEY TO UNDERWATER HOMEOWNERS The State of Arizona currently has more than $100 million to contribute to homeowners that are underwater and qualify for HARP, FHA, or VA. The Arizona Department of Housing will offer up to $100K per homeowner(s) that owes more than their home is worth in principle reduction. The State assistance is not a 2nd mortgage, does not require repayment, and is forgivable after five years and may now be combined with Second Mortgage Extinguishment up to $60,000! If you or someone you know, owes more than your home is worth, and obtained the mortgage prior to June 1st, 2009, call or email me to see if you qualify for a principle reduction. Borrowers that have already completed a HARP refinance do not qualify. CORPORATE HOME OWNERSHIP BENEFITS PROGRAM For the last several years, Geneva Financial, LLC has been offering free home ownership mini seminars for local companies and organizations. Seminars are generally 60 minutes in length and are on one of several topics (i.e. First Time Home Buyers, Real Estate Investment, Home Owners in Distress, and The Importance of Home Ownership); and can be catered to an individual company’s or organization’s needs. Seminars are free to both company and employees. If your company or organization is interested in learning more about our free corporate mini seminars, please contact Jonathan Reece at 602-332-1772 or JVR@JonathanVReece RATE WATCH – FLAT MORTGAGE TYPE INTEREST RATE APR 30 YEAR FIXED 4.250% 4.299% 15 YEAR FIXED 3.250% 3.334% Interest rates as of 07/30/2014. Conforming interest rates. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to value not to exceed 80%. 740+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your individual scenario rate quote. Published rates do not apply to HARP loans. APPLY ONLINE: genevafi
Posted on: Wed, 06 Aug 2014 02:42:21 +0000
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