The amount of the guarantee fee increases will be included in future mortgage rates. In the past all guarantee fees collected by the agencies were held in separate guarantee pools. The increased fee will go straight to the General Fund. Several elements in the bill are not quite clear and may take weeks or months to determine.

The primary questions are:

1. How much will the Fannie and Freddie g-fee rise? The Act calls for a minimum increase of 10 basis points, but the amount of the increase is to be determined by FHFA. The early expectation from insiders is that the increase will be 10 basis points. An enactment date hasn’t been determined yet.

2. Will the increase in guarantee fees hit all at once? The Act says the FHFA may phase in the increase over a two-year period. This could make the initial effect on mortgage rates fairly small. However, the FHFA could make the increase applicable all at once.

3. How much will the FHA’s annual insurance premium increase? This is the easy one. The answer is 10 basis points. Date of enactment is not clear.

Everyone knows the housing industry carries the economy into and out of a recession. Why is it that the one thing that can boost the economy the quickest is being burden with too many regulations and additional fees?

The other sad part is the American public thinks they really got a tax reduction. So much for transparency

To see the interior photos and learn the rest of the story go to http://bit.ly/tGlN6l

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All these “smart???” legislators seem not to understand the basics of economics and why the US is in financial trouble.

Simple Math – The US Problem in a Nutshell

* U.S Tax revenue: $ 2,170,000,000,000
* Fed budget: $ 3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $ 15,000,000,000,000
* Recent budget cut : $ 38,500,000,000

Now let’s remove 8 zeros and pretend it’s a household
budget.

* Your income: $ 21,700
* Your House Hold budget: $ 38,200
* New debt: $ 16,500
* Your Credit card debt: $ 150,000
* Recent budget cut : $ 385

Now builders have decided this is a good idea and in some parts of the country have been implementing the same type fee. Everytime the house is sold the seller must pay the builder a “flip fee”. This goes on for 99 years. The funds go straight to the builder and in no way benefits the neighborhood. It is just residual income to the builder for his life and the life of his heirs.

We all need a deal like that. Fortunately it hasn’t caught on in Kentucky.

www.KnowYourOptions.com

The website is very user friendly and highly interactive. Through a virtual assistant the homeowner is able to look at several options and get a better understanding of the industry terms that most consumers don’t understand. The bottom line is the site prepares the homeowner to talk intelligently with their lender or instructs them on how to seek help from free counseling.

I think this website will have a greater impact in helping the homeowner than almost any mortgage program that has been announced.

In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has (1) kept some homebuyers from being able to purchase affordable homes and (2) prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.

Research has shown that the buying, fixing, and reselling of foreclosed properties is often achieved in less than three months time.

The temporary waiver, which will expand access to FHA mortgage insurance to many, will be in effect for a period of one year, unless extended or withdrawn by the FHA. With this in mind, now may be an excellent time to contact clients who have recently purchased a foreclosed property and those who may be on the fence about purchasing a foreclosure as a short-term investment.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

· All transactions must be arms-length and there can be no identity of interest between the buyer and seller.

· If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet specific conditions for the waiver to apply.

· The waiver is limited to forward mortgages, and cannot be used under the Home Equity Conversion Mortgage (HECM) purchase program.

T’was the week before New Year’s

When all through the lands,

LO’s and Closers were wringing their hands.

RESPA changes are coming,

They all started to worry,

We’d better get trained, and get trained in a hurry!

We all kept on hoping

There would be a delay.

But HUD said, “No Way,” it’s all here to stay.

“We love our new HUD

And our new GFE,

Don’t fret, don’t worry, it’s as simple as can be.”

We all shook our heads,

Threw our hands to the sky.

What were you drinking? You must have been high!

You took a one page doc

And changed it to three.

Easier? More simple? How can that be?

The Regs don’t match up,

So now what do we do?

HUD says, “No comment, It’s all up to you.”

No info on TILA,

HMDA, REG B.

We are totally confused, why can’t they see??

In a time when some borrowers

Think lenders are scary,

You’ve given 3 pages to make them more wary.

This doesn’t make sense,

Not one little bit.

We are all trying hard to not throw a fit.

So we will all do our best

To put borrowers at ease.

But make more reform, please, please, please!

Please bring someone in

Who knows just what to do.

What is best for both borrowers AND lenders too.

We are all still waiting,

Though not holding our breath

And hoping the government doesn’t “Reg” us to death.

So, on this week before New Year’s,

I’d like to wish you

Good luck with RESPA, I need it too!

Earlier this month, the U.S. Treasury Department announced new guidelines to the Short Sale process that could speed the housing market recovery, a move that a number of U.S. real estate executives have been promoting in Washington D.C. for the past year.

Short Sales, transactions that can occur when a lender accepts the sale of a home at a price below the actual amount owed on the home, have become an increasing part of the real estate business as besieged homeowners look for alternatives to foreclosure.

RE/MAX Chairman and Co-founder Dave Liniger has promoted a streamlined Short Sale process since foreclosures began flooding the market and has presented specific proposals to government officials. In the last year he made many trips to Washington, D.C. to encourage policies that facilitate Short Sale transactions.

Liniger believes that a streamlined Short Sale process would help many families avoid the trauma of foreclosure and help the housing market remain on the road to recovery.

“Short Sales are absolutely critical as more and more people continue to face foreclosure and as our housing market struggles to recover,” said Liniger, who’s closing out a 28-city, cross-country speaking tour encouraging thousands of agents to become educated on the Short Sales process. “While not all of our recommended changes were implemented, the Treasury’s new guidelines go a long way in incentivizing both lenders and homeowners to work together to keep homes from falling into foreclosure.”

Until now, the Short Sale process has been cumbersome for all involved and took upwards of eight to ten months for a transaction to close. But, through the Foreclosure Alternatives Program and the new guidelines issued this month, Short Sale transactions will increase dramatically, which means less vacant and vandalized properties in neighborhoods across the country.

The new guidelines enhance the short sale process in several ways:

Speeds up the process — Mortgage servicers have 10 days to say yes or no to a Short Sale request, and after the transaction is complete, the borrower could be completely released from debt.

Provides financial incentives — Borrowers are eligible to receive a $1,500 moving allowance if they sell their home through a Short Sale, and mortgage-servicing companies will in turn receive $1,000 for every completed short sale transaction.

Limits proceeds to second lien holders — Second mortgage holders can only receive up to $3,000 of the sales proceeds to release their liens, and investors who hold the first mortgages can collect up to $1,000 for allowing such payoffs.

The program also facilitates the transfer of ownership by a borrower through a “deed in lieu of foreclosure,” another helpful alternative to assist home owners forego a foreclosure.

Real estate agents should study and become familiar with the new Short Sale guideless to improve their business and to provide the best service to their customers.