Archive for the ‘Alerts’ Category

New Year 2014 Residential Mortgage Lending Trends

Friday, January 24th, 2014

On January 10, 2014, new mortgage lending rules went into effect. How will these new restrictions affect residential mortgage lending in 2014?

These new restrictions issued by the Consumer Financial Protection Bureau will mean that more borrowers will be under more scrutiny by underwriters with longer processing times, yet there may be some reprieve for credit scores and debt limits in 2014.

New requirements will impact borrowers in specific ways. First, mortgage lending companies will determine if a borrower can return payment over the lifetime of the loan. And to put an end to risky loans, lenders are now required to have documentation of credit score, income, debt, and a full credit history.

To protect borrowers, these new rules will restrict what is called steering, or recommending loans that a family cannot afford. And there is no minimum down payment or credit score requirement, which may benefit borrowers. Borrowers will benefit from no minimum down payments, which will make it easier for new homeowners. Still, do not expect many loans to be approved with credit scores below 620.

Historically low mortgage rate will begin to rise this year. And as 2013 drew to a close, foreclosure rates were at a 6-year low, with less short or quick sales.

As we begin 2014, new home sales are expected to rise.

Are you looking to sell your home this year? Check out these great tips from guest contributor Geralin Thomas to stage your home.

Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.

David.

919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.

The Truth About Online Mortgage Lending Scams

Wednesday, November 20th, 2013

Did you know that North Carolina does not require that mortgage lenders be located in the state? That leaves the door open for many out of state lenders to attempt to do business in North Carolina.

Lending over the Internet continues to be unreliable and in many cases leading to fraudulent behavior that scams the borrower. Here’s what you need to know:

Verbal Quote. Never value a quote that has been given verbally or over the Internet that neglects the steps of pulling your credit, completing a documented application and providing a written good faith estimate and Truth-in-Lending statement. There is not penalty for lying to a customer, who may be shocked to receive an initial verbal approval to find their application rejected later on.

Upfront Fees. This is a common tactic that involves collection of an appraisal fee, and an upfront fee, which is illegal for a licensed loan originator to collect in North Carolina. Since online lenders do not adhere to North Carolina laws, they collect these fees anyway.

Low bid appraisals. Out of state lenders also use contract appraisers and title agents who bid on an appraisal. This is one reason why there are so many complaints regarding the home not being appraised properly, incomplete or inaccurate title work, and mishandled closings.

Here’s how you can avoid getting scammed by your mortgage lender:

1. Be aware of these unethical practices, and cease working with a lender if you see these policies.

2. Use these questions to interview your appraiser!

3. Work with a reliable mortgage broker who builds a relationship with their client rather than taking your money upfront.

4. If a loan product sounds too good to be true, it is. Do as much research as you can to feel confident about your home-buying or refinancing decision.

As rates have increased in recent months from record lows, more local lenders and loan originators are exiting residential mortgage lending in North Carolina as competition increases. Don’t be caught in a lending scam as more online mortgage lenders appear.

Read the full article here with some great mortgage tips! 

Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.
David.  919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.