My New Blog

What's new in the mortgage business?  Well, where should I start?  First of all, we have a new Good Faith Estimate that actually simplifies all loan fees and title company fees and clearly explains the loan terms for our borrowers.  I'm excited to start using it!  Also, the HUD Settlement statement that appears at closing will be compared to the Good Faith Estimate, and if lenders fees are higher than what was disclosed to the buyer, guess what...the lender must eat the extra fee!  No more bait and switch tactics...which is great for us honest loan officers and not so good for the shady ones.  I feel this is going to improve our industry immensely! 

What else is new?  Well FHA just announced that they will be raising the upfront MIP from 1.75% to 2.25%.  So FHA loan will be a bit more costly for buyers, but you have time...this doesn't take effect until April 1st 2010.  FHA also announced they will be lowering the maximum seller credit from 6% to 3%, but they haven't stated when this will take effect. 

Lastly, it is rumored that the Federal Reserve will stop buying mortgage backed securities in March of 2010, sooo that means we need new investors for Mortgage Backed Securities or our rates will rise pretty dramatically. 

The moral of this blog...if you are thinking of buying or refinancing....now is the time, before rates go up!

I'd love to help, give me a call (504) 324-1880.

Brandy Simpson