New limits on loans Fannie Mae and Freddie Mac can purchase Richard Tegley June 03, 2013; 12:06 PM The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the “ability to repay” requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). In January, the Consumer Financial Protection Bureau (CFPB) issued a final rule implementing the “ability to repay” protections from liability for loans that meet the criteria of a qualified mortgage as outlined in the rule. Beginning January 10, 2014, Fannie Mae and Freddie Mac will no longer purchase a loan that is subject to the “ability to repay” rule if the loan: • Is not fully amortizing, • Has a term of longer than 30 years, or • Includes points and fees in excess of three percent of the total loan amount, or such other limits for low balance loans as set forth in the rule. Effectively, this means Fannie Mae and Freddie Mac will not purchase interest-only loans, loans with 40-year terms, or those with points and fees exceeding the thresholds established by the rule. Scammers are scraping rental listings off the Internet and using real estate agents’ identity from the listings to dupe would-be clients. Scammers are reportedly taking rental listings off of websites and reposting them at lower rent than the original listing. The renter than corresponds with the scammer, often through email. Scammers will create e-mail addresses that reflect the listing agent’s name to trick clients, and will use a phone number with the agent’s area code. Retirees looking to obtain a home loan may find that solid retirement accounts and a sterling credit rating are not enough. Lenders look for a consistent monthly income in line with their usual debt-to-income standards. Lenders, when looking at dividends, want to see a regular annual amount on the tax return paid out over at least the past couple of years. Borrowers need to prove they are actually working at the moment of the application and a two-year work history may be required in some cases. The National Association of REALTORS® reported in March that investors and all-cash home buyers accounted for about 19 percent and 30 percent, respectively, of all sales. As home prices rise and investor and all-cash demand start to decline, who will take their place? Robert Dietz, an economist with the National Association of Home Builders, notes in a recent article for U.S. News and World Report that “missing households” in today’s market who have delayed home ownership will eventually play catch up. These may be recent college grads who delayed home ownership by moving in with their parents or renting as expected to increase their home buying activity. Surveys show a growth in the number of Americans living together as roommates who are not relatives. The nation’s population has grown, but the number of independent households of renters and owners has not kept pace. The Census Bureau’s American Community Survey shows that the population from 2006 to 2011 grew by more than 4 percent, but there was only about a 3 percent growth in the number of households. The Consumer Reports’ annual State of the Net report says that nearly 40 percent of smart phone users do not take basic security measures such as installing a password on their phone. About 5.6 million Americans, by failing to take security measures, have become victim to malicious software, which could result in the sending of unauthorized text messages or even having accounts on their handset accessed without permission. The Consumer Reports study found that nearly 48 million Americans stopped installing a mobile app because they started to get uncomfortable when the app asked for too many permissions during the installation process. A survey from the PulteGroup states that sixty-five percent of the millennial generation, ranging in age roughly from 18 to 34, says that their intention to purchase a house has significantly increased in the past year. Nearly 20 percent of men ages 25 to 34 reportedly live with their parents, while 9.7 percent of women that age still live at home. Generation Y, is 7 percent larger than the baby boom generation, according to Barron’s. The Military Family Home Protection Act (H.R. 1842) has been introduced to extend foreclosure protections to enlisted persons who bought homes after going on active duty.
Posted on: Tue, 11 Jun 2013 16:39:01 +0000