Central Ohio Real Estate Blog

REALTOR® Magazine-Daily News-Real Estate Gifts to Family Members? Notify IRS

2011-05-31T15:56:00.001-04:00

REALTOR® Magazine-Daily News-Real Estate Gifts to Family Members? Notify IRS

...the IRS so far has uncovered a high "failure-to-report rate" in these states--with noncompliance rates reaching even 100 percent in Ohio based on case reviews .

Fannie Mae Homepath program no offers 3.5% closing cost assistance to homebuyers

2011-04-12T11:10:00.001-04:00

Fannie Mae announced on Monday that it will now offer 3.5% in closing cost assistance to owner occupied buyers of Homepath properties. This benefit is offered for contracts submitted on or after April 11^th 2011 with a closing date of June 30^th 2011. The Homepath program was set up by Fannie Mae with the goal of attracting qualified homebuyers to purchase the existing inventory of vacant homes owned by Fannie Mae. Properties that are available can be viewed by at www.homepath.com but due to the nature of foreclosed properties it is highly recommended that you start you search with a local real estate agent.

Arlington Bank also adds the added benefit of a tax credit of up to $2,000 a year to qualified homebuyers of Homepath properties in Central Ohio. The yearly tax credit of up to $2,000 a year continues for the length of your mortgage and often adds up to $25,000 or more in tax credits. Since conditions do apply please contact me to apply at BrentDiebert@arlingtonbank.com. Homepath financing also offers down payment as little as 3% and mortgage insurance is not required. With over 1,300 available properties in Ohio Fannie Mae’s Homepath program should not be overlooked.

Program offers incentive for College grads to stay in Ohio

2011-04-05T11:57:00.000-04:00

Grants for Grads is a program with the distinct purpose of limiting “brain drain” in the state of Ohio. The program offers college graduates the opportunity to qualify for 2.5% in down payment assistance to purchase a home within 18 months of graduation. The program allows graduates to qualify for both down payment assistance and a below market interest rate when purchasing a home. The program also allows for higher than typical household incomes in comparison to other available grant programs.

Program benefits

· Below market interest rate

· 2.5% second mortgage that can be forgiven after 5 years

· Program can be used in conjunction with some other grant programs

· Program funds are ongoing unlike other grants that may run out of funds

What you need to know:

You must be a graduate of an Ohio High School and apply for the grant within 18 months of graduating from an educational institute recognized by the Ohio Board of Regents
You will need to take a homebuyers education class

· The grant is for a single family home owner occupied home

· There is no repayment of the grant if you continue to live in Ohio for the next 5 years

· You can use the grant for down payment, closing costs or other prepaid expenses incurred in the purchase of the home

As the Ohio Housing Finance Agency (OHFA) kicks off Fair Housing Month in April they wish to expand the public’s knowledge of the Grants for Grads program. As spring and graduation season approaches there could not be a better time to look into the many affordable homebuyer programs that are currently available. The grant programs offered in conjunction with OHFA requires the use of an approved lender such as Brent Diebert with The Arlington Bank.

Fannie Mae offers low down payment and no mortgage insurance for homes and investment property under the Homepath

2011-03-04T11:11:00.004-05:00

Fannie Mae (Federal National Mortgage Association) has homes to sell in Franklin County and there are special terms available for homebuyers. Fannie Mae is a private mortgage corporation that began as a government subsidized entity in the late 30s. Today Fannie Mae is a government sponsored private corporation authorized to purchase and sell mortgages and to facilitate the orderly operation of a secondary market for home mortgages. When Fannie Mae takes back a property their goal is to sell the property as quickly as possible and to make this happen special financing terms are available for both owner occupants and real estate investors.
The program is called Homepath and allows for special terms for both owner occupants and investment purchases.
Owner occupants can qualify for:

Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
As little as 3% down payment with a 660 credit score or 620 credit score with 20% down payment
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance option
No appraisal fees
No prepayment penalties
You may also qualify for a 30% tax credit (conditions apply)

Investment property purchasers can qualify for:

Down payment as low as 10%
As little as 10% down payment with a 660 credit score or lower with 20% down payment
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or
No mortgage insurance option
No appraisal fees
No prepayment penalties
Up to 10 financed properties are allowed (additional conditions apply)

As a mortgage lending professional with The Arlington Bank Brent Diebert can assist you with qualifying for the purchase of these homes. You can start the process by visiting www.BrentDiebert.com to apply online or calling Brent’s office at 614-486-3843.

Grant funds available with the Welcome Home Program

2011-03-03T15:19:00.004-05:00

The Arlington Bank has $200,000 in grant funds available to low and moderate income home buyers in Central Ohio. The grants are available up to $5,000 and funds can be used for both down payment and closing costs. For the purpose of this program income limits are $54,880 for a 1-2 person family and $63,112 for a family of 3 or more.
The Welcome Home program is for the purchase of an owner occupied primary residence. This program is NOT limited to 1st time homebuyers but for qualifying buyers that currently do not own a home. 1st time homebuyers are required to complete homebuyer education prior to closing on their home and home buyer’s education is recommended for all buyers under this program. Homebuyers must contribute a minimum of $500 to the transaction.
Funds for this program are available on a first come/first serve basis and you must be in contract on a property to reserve funds. FHA financing is available in conjunction with this grant program at current interest rates subject to loan qualifications. With FHA loan costs increasing in April of 2011 there is no better time to make application for both an FHA loan and the Welcome Home grant program. Applications can be initiated online at: http://www.brentdiebert.com/

Brent Diebert Mortgage Loan Professional

Office:614-486-3843

Mobile 614-571-3554

Set up your own accelerated mortgage plan | www.clarkhoward.com

2011-02-07T17:00:00.000-05:00

Set up your own accelerated mortgage plan www.clarkhoward.com

Franklin County Tax Bills

2011-01-06T11:40:00.001-05:00

After receiving several calls from clients I came across this Article. Read the article here. Thousands of tax bills were mistakenly sent to homeowners instead of the mortgage lenders who are to pay them. If this has happened to you please contact your lender to ensure the payments are made on your behalf.

Brent Diebert

What is a no cost refinance and does it make sense for me?

2010-08-02T16:28:00.000-04:00

Refinancing to a new lower rate may look like an expensive option until you consider a no cost refinance. With a no cost refinance you will pay a slightly higher interest rate instead of paying closing costs. This will allow you to lower your interest rate and mortgage payment without adding to your principal loan amount. If you financed a home on a 30 yr fixed rate just 1 year ago you more than likely at a rate of 5.125% or more. With a no cost refinance you could lower your rate by .375-.5% without closing costs. On a $200,000 loan amount you can look to save an additional $16,000 over the life of the loan or you could keep making the same payment and cut 32 months off the term of your loan. By reducing your term the savings are closer to $36,000. Since you do not pay closing costs the savings start with your vary first payment. If you would like to do home improvements or pay off debt this is still a great choice. A no cost refinance is a great option to consider for any mortgage financing and can be used with both conventional and FHA financing. Although this is a great tool you should consider all available options when considering mortgage financing.

With 15 years of mortgage lending experience I provide both options and solutions rater that just a rate and a payment.

Brent Diebert

BrentDiebert@ArlingtonBank.com

Office 614-486-3843

Mobile 614-571-3554 Apply Now

Team Fax 614-430-8116

Has your lender offered you a yearly tax credit up to $2,000

2010-06-22T17:11:00.001-04:00

With the expiration of the $8000 First Time Home Buyer Tax Credit and the depletion of the funds from Welcome Home Grant of $5,000 you may feel that you have missed all of the free money. There’s still free money and it can add up to tens of thousands of dollars. The program is called the Mortgage Credit Certificate program and it allows for a yearly tax credit of up to $2,000 for as long as you have a mortgage. With a 30 yr FHA loan at today’s rate of 4.5% the credit over the 30 yr term would be just over $32,900. So you can not only get an unbelievable low rate but get tax credit of over 10% of the original purchase price of the property.

This program is available to:

· 1^st time home buyers

· Home buyers who have not had ownership in a primary residence over the last 3 years

· All home buyers in a “Target Area”

· Veterans

There are income and property limitations for this program (please contact me for full details)

Currently there are 3 credit options

· For a single family home the credit is 20% of the yearly mortgage interest paid

· For a single family home in a target area the credit is 25% of the yearly mortgage interest paid

· For a single family REO/bank owned property the credit is 30% of the yearly mortgage interest paid

The program is available to a wide audience of home buyers in Ohio so let’s talk to see if you qualify.

Funds were just allocated to all 3 credit options so don’t delay in getting your cash reserved.

Brent Diebert

BrentDiebert@ArlingtonBank.com

Office 614-486-3843

Mobile 614-571-3554 Apply Now

Financing investment properties

2010-05-06T16:04:00.000-04:00

When purchasing investment property there are different lending criteria based on your history as a landlord, number of mortgage properties, and amount of savings and reserves. At the Arlington Bank We offer conventional financing to investors with between 4 and 10 financed properties. If this fits your needs lets go over the guidelines and see where your property acquisition plans fit.

Brent Diebert

BrentDiebert@ArlingtonBank.com

Office 614-486-3843

Mobile 614-571-3554

Team Fax 614-430-8116

HUD BUYER AND BROKER INCENTIVES DISCONTINUED

2010-02-16T16:01:00.000-05:00

Effective February 12,2010, any properties listed and/or sold with FHA financing as of this date are no longer eligible for the $100 down payment incentive. Only contracts executed by 02/12/2010 are eligible. The Sales Allowance of $2500 for owner occupant purchasers will also be discontinued as of February 12, 2010 for all new contracts accepted on or after this date. The $500 broker bonus for owner occupant purchasers who took advantage of the $2500 sales allowance is also discontinued as of February 12, 2010.

Brent Diebert

BrentDiebert@ArlingtonBank.com

Office 614-486-3843

Mobile 614-571-3554 Apply Now

Team Fax 614-430-8116

Central Ohio's Jumbo Summary Report

2010-02-12T12:59:00.003-05:00

Listings between $500,000 - $1,400,000 in Franklin Delaware, and Fairfield Counties.

In Calendar year 2009 there were 1,185 jumbo properties listed in the statistical area.

There were 407 sold jumbo properties listed in the statistical area.

This is a 2.912 ratio of listings to sales or approximately 3 listed properties for every sold property.

In 4th Quarter of 2009 there were 184 jumbo properties listed in the statistical area.

There were 97 sold jumbo properties listed in the statistical area.

This is a 1.897 ratio of listings to sales or approximately 2 listed properties for every sold property.

In January of 2010 there were 90 jumbo properties listed in the statistical area.

There were 23 sold jumbo properties listed in the statistical area.

This is a 3.913 ratio of listings to sales or approximately 4 listed properties for every sold property.

As of 2-11-2010 there are 527 jumbo listing.

Brent Diebert Brian Hitchcock

BrentDiebert@ArlingtonBank.com BrianHitchcock@ArlingtonBank.com

Office 614-486-3843 Office 614-486-9174

Mobile 614-571-3554 Apply Now Mobile 614-260-5537

Team Fax 614-430-8116

The Arlington Bank’s “Lean on Me Team” located at 4621 Reed Rd Columbus OH 43220.

Defaults on FHA Loans Surpass 9%

2010-02-10T12:43:00.001-05:00

Defaults on FHA Loans Surpass 9%

Even with improvements beginning to peek through the debris of the housing crisis, mortgage defaults continue to rise at an incredible rate, and the story is no different for the federal government’s mortgage insurance agency.

The latest numbers from the Federal Housing Administration (FHA) show that the percentage of loans it backs that are at least 90 days past due hit 9.12 percent at the end of 2009. That figure is up from 6.82 percent one year earlier – a 34 percent increase.

FHA officials have repeatedly cited a rise in loan defaults as inevitable given the agency’s exponential growth in market share. The FHA currently backs about 30 percent of all new loans for home purchases and 20 percent of refinanced loans. Those figures represent an increase of nearly 1,000 percent since 2006, when private lenders began to pull back and the credit crunch set in.

According to the agency, the bulk of its problem loans stem from originations made in 2007 and 2008. Officials say tighter underwriting standards make more recent and new loans less likely to default. In fact, HUD said in its fiscal year 2011 budget that it expects new business from FHA to generate a $6 billion overall profit, although that number will be eclipsed by projected losses of $19 billion from insuring soured loans.

In the fourth quarter of 2009, lenders originated $86.1 billion in FHA single-family loans, up 21 percent compared to the same period in 2008. Sixty percent, or $51.8 billion, of the fourth-quarter financing was used to fund home purchases.

For the full 2009 year, FHA insured 5.8 million loans, with an aggregate balance of $752.6 billion – a 24 percent increase compared to 2008’s business.

Foreclosures on loans guaranteed through FHA soared 41 percent in the fourth quarter from year-ago levels, to 20,650. The agency also reported that 2,925 short sale transactions were completed during the three-month period – that’s a 140 percent increase compared to one year earlier.

FHA announced extensive policy changes last month to get a better handle on default risk and minimize problem loans. The agency has raised homebuyers’ up-front costs for mortgage insurance, tripled downpayment requirements for borrowers with low credit scores, and cut seller concessions in half. Officials say they will also be keeping a close eye on FHA lenders to ensure the agency’s standards are being followed and plan to institute new rules that force mortgagees to assume liability

Brent Diebert Apply Now

Mortgage Lending Professional

The Arlington Bank

Deadline for OHFA down payment assistance second mortgage set now set to expire 12/31/2009

2009-11-25T13:05:00.001-05:00

The down payment assistance second mortgage program in Ohio has been extended through December 31^st 2009. The original deadline was set to expire the end of November. The basic idea of this program is to allow homebuyers to get an advance on the tax credit for the purpose of down payment on a first home. If this idea sounds appealing you are not alone. The program has been very successful over the past several months.

This also means that at the current time although the first time homebuyers tax credit is available for home purchase closing for another 7 months this program is only available through the end of the year. If you have any interest in using this program I suggest you act quickly and give me a call.

Brent Diebert

Mortgage Lending Professional

The Arlington Bank

4621 Reed Rd

Columbus, OH 43220

Office: 614-486-3843

Did your last lender offer you a $2000 yearly tax credit?

2009-11-19T15:55:00.000-05:00

Most 1^st time homebuyers (Realtors for that matter) have no idea that there is a yearly tax credit of up to $2,000 every year you have your mortgage available in the state of Ohio. For a first time homebuyer you can receive a tax credit in the amount of 20% of the mortgage interest paid on your loan for every year you have it with a cap of $2000. For anyone buying a bank owned home to live in you can receive a 30% of the mortgage interest paid on your loan for every year you have it with a cap of $2000. This program is called the Mortgage Credit Certificate program MCC and may be available in may other states as well. To apply for the credit you must use a approved lender for your mortgage loan. The loan must be a fixed rate but can be a conventional or FHA loan. Funds are limited but available at the current time.

Please contact me for more information

Brent Diebert The Arlington Bank 614-486-3843 BrentDiebert@Arlingtonbank.com

Congress Passes Homebuyer Tax Credit Extention

2009-11-05T16:45:00.000-05:00

The first-time home buyer tax credit extension and expansion has won Congressional approval and is on its way to President Barack Obama.

He's expected to sign the measure as early as tomorrow.

The U.S. House of Representatives, this morning, voted 403 to 12 to pass the measure, following Senate approval yesterday.

The extension and expansion of the popular first-time home buyers tax credit gives both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010.

The new tax credit extends the existing credit for first-time homebuyers, worth up to $8,000, and offers a new credit of up to $6,500 for some existing homeowners.

The reduced credit for existing homeowners is available to those who have been in their current residence for a consecutive five-year period.

The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000.

A home buyer must have a sale agreement in hand by April 30 and close escrow by June 30, 2010.

Brent Diebert

The Arlington Bank

BrentDiebert@ArlingtonBank.com

614-571-3554

Hud fumbles the deal for 1st Time Homebuyers

2009-05-29T12:15:00.004-04:00

Homebuyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.This means that 1st time homebuyers still need 3.5% for down payment. If you’re in Central Ohio I can help. I have programs available to monotize the Stimulus from the State of Ohio.

Contact me Now!!

Office 614-486-3843

Updates from HUD on the Monetization of the stimulus for homebuyers

2009-05-15T14:37:00.001-04:00

HUD Secretary Donovan’s statement was a “preview” ahead of the formal announcement, which is expected next week along with information about how to apply for the $8,000 bridge loan.

I will keep you up to date as the news rolls in

FHA to help with down payment

2009-05-13T10:45:00.001-04:00

Yesterday (May 12^th 2009) Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Clipped from www.hud.gov

We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.

Tax credit saves tens of thousands for Central Ohio 1st time buyers

2009-04-24T16:44:00.000-04:00

As if it wasn’t great enough having the feds giving 1st time buyers $8,000, now I have a program available that give buyers a yearly tax credit of up to $2,000 every year they have a home loan. The tax credit is 20%-30% of your yearly mortgage interest.
Rates today are currently 4.875 – 5.00% with No points for conventional and FHA financing.
A recent example:
· $150,000 loan amount
· 5% rate for 30 yr fixed rate FHA purchase
· Total credit over the life of the loan was $27,983

This was over and above the $8,000 federal stimulus check they received.

There are income and property limitations but every 1st time buyer should apply (at no cost of course).

Brent Diebert
The Arlington Bank
Office 614-486-3843
Mobile 614-571-3554

Ohio beats Florida down payment assistance

2009-04-20T12:55:00.001-04:00

As the state of Florida works to get residents and advance the $8,000 stimulus funds the Federal Government is offering** see (http://www2.tbo.com/content/2009/apr/18/na-state-eyes-plan-to-aid-homebuyers/news-politics/) I have it available for the residents of Ohio.

Get an advance on your federal stimulus to use as down payment for your first home.

Don’t need assistance with down payment, I can also offer 1^st time homebuyers an additional tax credit of up to $2,000 every year you live in the home. Email me for all the information. BrentDiebert@Arlingtonbank.com

Brent Diebert

Mortgage Lending Professional

The Arlington Bank

Office: 614-486-3843

Mobile: 614-571-3554

1st Time Homebuyers Advance on $8,000 Stimulus

2009-04-15T13:46:00.004-04:00

This IS what you have been waiting for!

I now have the avaibility to advance 1st time homebuyers 3% down payment money to purchase a home today. With FHA financing this means that I can offer a first mortgage of 96.5% of the purchase price, a second for an additional 3% of the purchase price and the seller can pay all the closing costs and pre-paids. Buyer's down payment of 1/2% can still be a gift from a family member. So for $1,000 investment buyer can purchase a $200,000 home.

Income and property limits apply so contact me for the details.

Brent Diebert
BrentDiebert@Arlingtonbank.com
Mortgage Lending Professional
The Arlington Bank
Office: 614-486-3843
Mobile: 614-571-3554

It's no April fools Joke. FHA discontinues Cashout soon so APPLY NOW

2009-03-17T10:45:00.000-04:00

FHA to stop cash-out loans as of April 1^st 2009. Cash-out can mean any money that was not part of the original purchase of the home. Effective for case number assignments on or after April 1, 2009, the loan-to-value (LTV) of any cash-out refinance to be insured by FHA may not exceed 85 percent of the appraiser’s estimate of value.

Given the continued deterioration in the housing market, and FHA’s need to limit its exposure to undue risk, this reduction to the maximum LTV for cash-out refinances is being instituted on a temporary basis while FHA further analyzes the housing and mortgage industry as well as its own portfolio to determine whether permanent measures should be taken.

Brent Diebert

Mortgage Lending Professional

BrentDiebert@arlingtonbank.com

The Arlington Bank

4621 Reed Rd

Columbus, OH 43220

Office: 614-486-3843

Cell: 614-571-3554

1st time homebuyers won't have to wait for tax credit

2009-02-27T13:17:00.000-05:00

First-time homebuyers who qualify for up to $8,000 in new tax credits don’t have to wait until 2010 to get their money.

The Internal Revenue Service says that buyers can claim the credit when filing their taxes this year, by April 15.

Already filed your taxes? You can still get the credit this year, too, by filing an amended return.

The other option is waiting to claim the credit when filing 2009 tax returns, by April 15, 2010.

The tax credit, which is part of the federal stimulus package, provides up to 10 percent of a home’s purchase price (with a maximum of $8,000). Purchases must be between Jan. 1 and Dec. 1. Buyers who haven’t owned a home in the past three years would qualify, too.

The tax credit is capped at $4,000 for married people filing separately, and the amounts are less for people whose adjusted gross income is over $75,000, or $150,000 for joint filers.

People who already filed federal income tax returns this year can still get the homebuyer tax credit early, if they purchased a home since Jan. 1. They would need to file a 1040X to amend their tax returns, reflecting the new tax credit.

Some people may have bought a home after Jan. 1, but before the new tax credit was adopted last week. If they’ve already filed their taxes, they may have claimed the old credit. They, too, could file an amended 1040X, to get the new credit this year.

An IRS spokesman says it’s best to hold off on filing amended returns until after you receive your expected tax refund.

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on www.IRS.gov. The instructions to the revised Form 5405 provide additional information on who can (or can’t) claim the credit, income limitations and repayment of the credit.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit,” said IRS Commissioner Doug Shulman in a statement. “This important change gives qualifying homebuyers cash they do not have to pay back.”

First-time homebuyers who purchased between April 8, 2008, and Dec. 31, 2008, would qualify for the previous tax credit of $7,500, which has to be repaid over 15 years.

The new tax credit does not have to be repaid if the recipient stays in the home for 36 months after purchase

Economic Stimulus Plan Benefits the Housing and Mortgage Industries

2009-02-19T15:03:00.000-05:00

Here’s the Skinny……..

Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, insulation. The Incentives also assist with a person favorite of mine wind turbines

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.

As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

Please feel free to share this information.

Best regards,

Brent Diebert

Mortgage Lending Professional

FDIC to Tighten Interest Rate Restrictions on Institutions That are Less Than Well-Capitalized

2009-01-28T10:01:00.001-05:00

Below is a partial notice released by the FDIC. Were less that stable banks offering higher than average rates of returns? If memory serves me correctly both Indymac and Washington Mutual were offering accounts at a return of approximately 5% before their demise. The bigger question in my mind is: If there are only 154 problem banks out of the 8,300 nationwide why is the government concealing their identity? With the lack of faith in the entire banking community wouldn't the country be better served with FULL DISCLOSURE?

Prompt Corrective Action requires the FDIC to prevent banks that are less than Well Capitalized from soliciting deposits at interest rates that significantly exceed prevailing rates. The proposed regulation would define nationally prevailing deposit rates as a direct calculation of those national averages, as computed and published by the FDIC based on data available to it. Reliance on the Treasury yields in the regulation would be discontinued. The expectation is that this additional concreteness would result in lower deposit rates being paid by a number of banks that are less than Well Capitalized and closer adherence to the statute."

The proposed rule applies only to the small minority of banks that are less than well capitalized. As of third quarter 2008, there were 154 banks that reported being less than Well Capitalized, out of more than 8,300 banks nationwide.

Fair Isaacs is making major changes to its credit scoring models by mid 2009

2009-01-08T10:42:00.001-05:00

By next spring, two of three credit reporting bureaus will use a new model. Fair Isaac, the developer of FICO scores, has made the biggest change to its mathematical credit score model since it was introduced in 1989. Scores will still be on a 300- to 850-point scale. But the company estimates that 40% to 50% of borrowers’ scores could go up or down by more than 20 points because of how the new model fine-tunes the variables it uses to evaluate consumers’ credit use behavior.

For creditors, the new FICO score promises to reduce the risk of defaults, improving the predictability of defaults by 5% to 15%. Delinquencies are at their highest rate since 1992, when the economy was also in a recession. The revised scoring method “has a few more gray areas fleshed out so it gives us confidence in credit scoring models,” says Ginny Ferguson, a member of the board of the National Association of Mortgage Brokers.

Equifax and TransUnion will be the first credit reporting bureaus to roll out the changes over the next year. As credit tightens because of the financial crisis, FICO scores are becoming increasingly important for borrowers looking to qualify for favorable terms. That puts high scorers in “even a better position for pricing on loans” as the economy recovers, says Ferguson.

Fair Isaac has increased the number of groups that customers fall into from 10 to 12, taking into more account the number and magnitude of credit problems. Infrequent problem borrowers will no longer be lumped in with habitual delinquents. With the new model, “there is more forgiveness around people in the middle,” says Foster. “If you have one isolated missed payment you won’t score as low as before.” The new FICO model also focuses less on how many accounts a borrower has and more on the amount of balances carried.

Piggybacking — upping a score on someone else’s back — won’t be ruled out in the new FICO score. But it will make using that route to establishing credit harder and lengthier. The authorized user provision allows young adults to create a credit history by using and paying off accounts held by their parents. But it has also been subject to abuse, with high credit scorers selling their names to borrowers looking to improve scores. Fair Isaac estimates that 30% of U.S. credit card holders, or 60-75 million people, are authorized users. Credit.com says that many of those authorized users are women. Many of them rely on their husbands’ FICO scores, and it will now take longer for those women to build up their own credit scores.

Super Conforming Loans Ineligible for Private Mortgage Insurance

2009-01-07T13:15:00.000-05:00

Recent announcements by the Private Mortgage Insurance companies no longer allow mortgage insurance coverage on loan amounts over $417,000 in the states of: Arizona, California, Florida, or Nevada.

USDA Rural Development 100% loan program to run out of money by January 9, 2009, if not sooner

2009-01-06T15:30:00.001-05:00

In a message received from the USDA Rural Development National Office in Washington DC announced that demand for the this program is at a historic high, and we anticipate this funding will be exhausted by January 9, 2009, if not sooner. USDA Rural Development will continue to accept and process applications, and will issue Conditional Commitments “subject to receipt of Congressionally appropriated funds.”. There will be no interruption of service by USDA Rural Development during any period in which funding is not available. So rest assured any loans I currently have in the process for your clients will continue to move forward in a timely manner.

Brent Diebert

Mortgage Lending Professional

The Arlington Bank

4621 Reed Rd

Columbus, OH 43220

Office: 614-486-3843

Cell: 614-571-3554

Are Some Owners Purposefully Falling Behind?

2008-12-12T13:52:00.000-05:00

There is a growing increasingly alarmed that programs to bail out troubled home owners might have the unintended consequence of encouraging people to miss mortgage payments in order to qualify for easier loan terms.

Such initiatives typically require that borrowers be 60 to 90 days late on payments to get a mortgage reworked.

Customers who are contacting their lenders before they fall behind are being told to call back when they are 2-3 payments late. “They essentially told me to stop paying my loan” is a comment I have heard from several homeowners looking for assistance.

Half of newly modified loans become delinquent

2008-12-09T12:57:00.002-05:00

Comptroller of the Currency John Dugan said more than half of loans modified in the first quarter have become delinquent within six months of being modified with more favorable terms.

"After three months, nearly 36 percent of borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months 58 percent," he said.

Why is the re-default rate so high? Were the loans so badly underwritten that the customers were never qualifiable at any payments. Here are some headlines from lender solicitations I received in years past:

Credit score of 620? No job no proof of income no problem
1 day out of a chapter 7 bankruptcy 100% financing available
$417,000 loan amount with a $322 payment No proof of income required!
100% stated income stated asset investment property purchases available

The loan modification process is a road paved with good intentions but they might as well be building it on a sandy beach unless they start re-underwriting the loans prior to any changes.

Fannie, Freddie Suspend Foreclosures Through Holidays

2008-11-21T08:59:00.002-05:00

Fannie and Freddie will suspend foreclosures and evictions over the holidays.
The six-week halt will begin Nov. 26, a day before the U.S. Thanksgiving holiday, and last through Jan. 9, the companies said in separate statements 11-20-2008. The hope is that this time frame will allow mortgage servicers to implement a streamlined loan modification program for struggling borrowers. A short reprieve for struggling homeowners over this years holiday season.

Service Members Civil Relief Act

2008-11-14T16:04:00.001-05:00

Formerly known as: The Soldiers and Sailors Civil Relief Act
For many years the Service Members Civil Relief Act has been available to lenders for any mortgage loan. Service members who provide evidence of active duty status and request relief from lenders are entitled to the provisions of this act which include but are not limited to:

• Interest rate reduction to 6%
• Occupancy requirements are lifted
• Waiver of late fees
• Suspension of delinquency reports to credit bureaus
• Suspension of foreclosure proceedings/stay initiated until service member returns

If you know of anyone this may benifit please forward this information

Government bails on the mortgage bailout

2008-11-12T14:00:00.000-05:00

Treasury Secretary Henry Paulson said the government's $700 billion financial rescue package won't purchase troubled assets from banks as originally planned. He said that plan would have taken too much time, and that the Treasury instead will rely on buying stakes in banks and encouraging them to resume more normal lending.

Fines for non-registered rental properties to start next month

2008-11-04T14:21:00.000-05:00

In a recent meeting with Joe Testa he announced that fines for non registered rental properties will start with the next tax bill. In a notice dated 10/1/2007 all rental properties are required to be registered with the county auditor. Below is the information that is required:
· The name, address and phone number of the owner or contact agent;
· The street address and parcel number of the residential rental property,
· Any owner of residential rental property who resides outside of the state shall designate an individual who resides in the state to serve as the owner’s agent.
· Any owner who designates an agent shall file in writing the name, address and telephone number of the agent.
· An owner shall update the information, within sixty days after they are notified by receiving a tax bill, a property transfers or any change in the information occurs.
The fines will start at $50 per occurrence and increase by $50 each tax bill until corrected. Registration can be completed by visiting: http://www.franklincountyohio.gov/auditor//

Bargain Hunters Help Shrink Housing Glut

2008-10-28T12:37:00.002-04:00

As the news on Wall Street continues to rumble there is some positive news in real estate sales. The over supply of homes on the market is shrinking as bargin hunters take advantage of lower home prices. On the Columbus MLS September monthly sales were only 1.5% lower than September 2007. What does this mean? Well for one thing mortgage financing is still available to homebuyers. With all the news of the credit crunch you might think it's impossible but the numbers show differently. People are buying homes and credit is still available.

Fed cuts prime lending rate

2008-10-08T11:41:00.003-04:00

Press Release:
"Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets...

Federal Reserve Actions
The Federal Open Market Committee has decided to lower its target for the federal funds rate 50 basis points to 1-1/2 percent. The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures.
Incoming economic data suggest that the pace of economic activity has slowed markedly in recent months. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. Inflation has been high, but the Committee believes that the decline in energy and other commodity prices and the weaker prospects for economic activity have reduced the upside risks to inflation."

Banks thru-out the US (Wachovia, Bank of America, LaSalle, Wells Fargo Bank) have announced immediate decreases in their prime lending rates to 4.50%. Bank prime rates are major factors in determining pricing for corporate and consumer lending. The hope is that this drop will increase the availability of business and consumer credit.
Mortgage interest rates have remained relatively stable as the crisis on Wall Street continues and this change is expected to have a minor influence on the 30 yr fixed rate mortgage market.

HUD EXTENDS SALES INCENTIVE PROGRAM FOR OWNER OCCUPANTS

2008-10-06T11:42:00.002-04:00

HUD will continue to offer $2500 Credit at closing to be used for closing costs, lower mortgage amount, and lender-approved repairs. Minimum house price $25,000 For cash, owner occupant buyers, the incentive can be used for closing costs only, balance reverts to HUD. $500 Selling broker bonus, $100 down payment program for FHA financing.

Lower rates for first time home buyers starting 9-11-2008

2008-09-10T12:49:00.004-04:00

The Ohio Housing Finance Agency has just announced that effective 9-11-2008 they are lowering their interest rates by .25%. First time home buyers can now qualify for 100%+ financing with a low fixed rate of 6.00% for a new first mortgage of up to 97% of the purchase price with an available second mortgage at 8% for 100%+ financing of the purchase price of a new home. Ohioans working in critical professions can save even more (contact me for details)

With the federal government takeover of Fannie Mae and Freddie Mac as well as the end of seller assisted down payment this news could not come at a better time.

Conditions apply so contact me for more details.

Brent Diebert

States act to license loan originators

2008-08-14T13:49:00.002-04:00

From The Miami Herald;

To Illinois mortgage regulator Dean Martinez, too many loan people peddled home loans without licenses.

''It didn't make sense,'' said Martinez, secretary of Illinois' Department of Financial and Professional Regulation.

''The guy who owns the company was licensed, but the people who get the confidential information, who meet with the borrower, who originate the loans are not.''

Prompted by a rising number of predatory lending cases, Illinois legislators passed a sweeping law in 2003 requiring that loan originators get licensed. For the first time, the law imposed criminal background checks and exams. The result: The agency had 25,000 applicants, with about 15,000 approved.

''For us, that's 10,000 people who shouldn't have been in the business,'' Martinez said.

MINIMUM STANDARDS
Facing a widening mortgage fraud crisis, an increasing number of states have ramped up oversight by creating minimum standards for originators -- with some even banning convicted felons.

Since 2005, more than a dozen states -- including New York, Pennsylvania, Colorado and Arizona -- passed laws requiring the licensing of all mortgage professionals, except those who work in banks.

One Michigan industry leader says the laws are part of a trend to clean up a profession that has been overrun by fraud this decade.

''We've been fighting for this for years,'' said Pava Leyrer, former president of the Michigan Mortgage Brokers Association. ''Now it's starting to happen because of the implosion of the industry.''

NEW TO LENDING
''All these new loan originators who weren't brokers were new in the field, and there was no way of regulating them,'' said New York Assemblyman Michael Benjamin, who co-sponsored the New York measure, which was passed last year.

Colorado's new law this year bars anyone convicted of fraud or misrepresentation in the last five years from selling home loans. Ohio passed a law, to be phased in over the next couple of years, that requires anyone writing mortgages to submit to a criminal background check every three years.

''This is not an industry that should be left unregulated,'' said Brent Diebert, a loan officer in Columbus, Ohio.

''You need a system that allows you to deal with reputable, legal people. By not having that, you are inviting the problems that happened over the last few years to happen again.''

H.R. 3221: Foreclosure Prevention Act of 2008

2008-08-01T16:36:00.002-04:00

This bill will provide for a temporary, $7,500 first-time homebuyer tax credit for the purchase of any home, purchased between April 9, 2008, and July 1, 2009.
In addition to the first-time home buyer tax credit, the bill would allow the Department of Treasury to purchase an equity stake in Fannie Mae and Freddie Mac, and would give the Federal Reserve a supervisory role over the two government-sponsored enterprises (GSEs).
H.R. 3221 also would:
• Modernize the Federal Housing Authority and permanently raise its loan limits;
• Give states authority to issue an additional $11 billion in mortgage revenue bonds;
• Reform the regulation of the GSEs and permanently increase the conforming loan limit to help buyers in high-cost markets;
• Enhance the Low Income Housing Tax Credit;
• Provide foreclosure relief; and
• Provide tax relief for homeowners who don't itemize their deductions.
• Bill also eliminates all seller funded down payment assistance programs
• Increase buyers investment using FHA financing to 3.5%

SEE THE BILL

House and Senate have reached agreement & seller participation in downpayment assistance loans is being terminated as of 10-1-2008

2008-07-23T11:46:00.002-04:00

· The House and Senate have reached agreement on the omnibus Housing bill

· Seller participation in downpayment assistance loans is being terminated. Must have obtained credit approval prior to October 1^st.

· Risk-based pricing moratorium is effective October 1^st

· No changes to FHA broker eligibility requirements

· House is expected to begin debate and possibly vote on Wednesday (July 23^rd) on the final version of the omnibus housing bill

· The Senate could vote as early as Friday on the final bill with the President signing shortly thereafter (possibly early next week)

Below is the link to the complete bill. The FHA provisions start on page 477.

http://www.rules.house.gov/110/text/110_hr3221.pdf

We will keep you apprised as the bill moves toward enactment.

I. Housing Legislation

The House and Senate completed their negotiations on the omnibus housing bill.

The major provisions of the omnibus housing bill are:

a. FHA Modernization

b. FHA Rescue (Foreclosure relief)

c. GSE Reform

d. Tax provisions (Maximum tax credit was lowered to $7,500 for first-time homebuyers.)

e. Secure and Fair Enforcement for Mortgage Licensing Act of 2008 or "S.A.F.E. Mortgage Licensing Act of 2008

1. Establishment of nationwide mortgage licensing system for loan originators

II. FHA Provisions

Barring a totally unforeseen circumstance, below are the expected final provisions of the FHA portion of the bill.

Ø Mortgage limits

· FHA base limit ("floor") is increased from 48% to 65% of GSE limit ($271,050)

· Maximum loan amount in high cost areas is increased to 150% of the current GSE base limit ($417,000). The new limit for FHA, Fannie and Freddie will be $625,000. VA should have equivalent guaranty ($156,250)

· The factor for calculating increases is 115%

Impact:

As we reported in our last update, an area w/ a median sales price of $500,000 currently has a maximum loan amount of $625,000. Using the 115% factor, the maximum loan amount would drop to $575,000 ($500,000 x 115%) when the Stimulus bill expires at the end of the year. For areas w/ medians at $400,000, the FHA and GSE maximum limit would decline from $500,000 to $460,000 after the Stimulus bill expires in December. (For areas w/ $300,000 medians, the limit would drop from $375,000 to $360,000 and so on.)

Ø Cash investment requirement

· The minimum cash investment is 3.5%. It will, at least, be a simpler calculation eliminating the state closing cost variation.

· Gifts will be permitted from family members, unions, and state and local bond programs,etc). Seller funded downpayment programs are discussed below.

Ø Seller funded downpayment assistance programs

· Any downpayment assistance programs involving sellers or other interested third parties will be terminated on October 1, 2008

o Borrowers must be approved on or before September 30^th.

Ø Risk-based pricing moratorium

· Risk-based pricing moratorium for one year will be implemented on October 1st.

· HUD asked for time to prepare new instructions and to modify its systems

· Legislation does permit FHA to raise upfront premiums up to 3%.

1st time homebuyers can get added assitance when working with OHFA and HUD

2008-07-17T08:14:00.002-04:00

The Ohio Housing Finance Agency announced that a new incentive from the U.S. Department of Housing and Urban Development and the Federal Housing Administration will allow qualifying Ohioans to purchase HUD-owned homes with a $100 down payment. In addition, buyers will have the opportunity to obtain an FHA mortgage through OHFA, and receive a $2,500 sales allowance that they can put toward home repairs, closing costs or their mortgages.One of OHFA's most popular programs is its First-Time Homebuyer Program, which offers purchasers conventional loans or FHA, VA and USDA-RD government loans with competitive interest rates. (Income and property limits may apply) A First-Time Homebuyer is defined by OHFA as homebuyers who not had an ownership interest in they primary residence for the past three years. This program is also available to any owner occupant homeowner who purchases in a target area. The 30 yr fixed rate program offers down-payment assistance with the option of a second mortgage in an amount up to 4 percent of a home's purchase price, or a grant in an amount equal to 3 percent of a home's purchase price.First-time home buyers who are "Ohio Heroes" - active military personnel, military veterans, firefighters, emergency medical technicians, paramedics, health-care workers, police officers or teachers - can receive a 30-year fixed-rate mortgage at a quarter of a percent less than OHFA's rate for the First-Time "The current interest rate on a mortgage through the First-Time Homebuyer Program, with no down payment assistance, is 6.125 percent.

OHFA works with over 200 lenders including The Arlington Bank. If you have any questions regarding this program, target areas, income or property limits please contact Brent Diebert at: BrentDiebert@ArlingtonBank.com

Operate as an LLC, IRS changes extension policies for some

2008-07-08T16:51:00.002-04:00

Some business owners will have one fewer month to file their federal tax returns under a new rule implemented by the Internal Revenue Service.
The IRS says the change will reduce the length of extensions for individual filers who report income from partnerships to five months from six. It says the move will ease the burden on taxpayers who must report information from Schedule K-1 and similar documents on their individual tax returns.
The previous extension date often forced businesses and individuals to file on the same day, Oct. 15.
Coinciding filing dates creates a burden for individual taxpayers who rely on the information from Schedule K-1 and other statements to prepare and file their personal tax returns in a timely manner, the IRS says.
The change affects extension requests for tax returns due on or after Jan. 1. It applies to businesses that file the following returns and forms that have a tax year ending on or after Sept. 30:
Form 1065, U.S. Return of Partnership Income;
Form 1041, U.S. Income Tax Return for Estates & Trusts; and
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446).

Bank of America and Countrywide

2008-06-26T22:07:00.000-04:00

Bank of America plans to complete the purchase of Countrywide on July 1st 2008. Today they announced that they plan to cut about 7,500 jobs after it closes its acquisition of mortgage lender Countrywide Financial Corp. This is over 12% of their work force. With losses at Countrywide totaling over 2 billion dollars in the past 12 months you have to wonder what Bank of America was thinking.

Welcome

2008-06-26T21:55:00.001-04:00

Welcome to the Central Ohio Real Estate Blog. Your source for news on lending issues affecting Central Ohio as well as the world.I hope to keep everyone up to date on lending changes as well as news that affects the real estate industry as a whole. Please check back soon