Blog Category: Government
I know it is difficult to understand why the mortgage process gets more complicated. And I know its curious why the number of loan disclosures you have to sign just keeps growing. When I started in the mortgage business in 1986 I bet there were only 12-15 pages of loan disclosures. That ballooned to around 30-35 pages up until 2008. Then the financial world seemed to implode in 2008. The Feds took over Fannie Mae and Freddie Mac. And the number of disclosures you get now must be over 50.
Getting a mortgage is easy, right? You apply for the loan, you send in some paperwork, someone appraises the home, if your credit is OK, a little bit later you get a mortgage. Right? It should be that easy, I agree. We have the technology and desire in place to make the mortgage process easy, I believe. But getting a mortgage has become the most arcane, complicated, minutia filled experience ever. It is worse than going to the Department of Motor Vehicles, by far.
Hello, You Have Reached The Government, We’re Closed! I have been getting questions about the impact of the possible government shutdown on the mortgage industry. The answer is, no one knows yet. In my opinion the government will shut down. Politicians love to play games with our money and lives. But I think it will end after a week or two of posturing.
There are increases coming to mortgage interest rates due to several rule changes. One change is a proposed increase in the guarantee fees. This is also called the g-fees. This fee will increase 10 basis points, which is equal to 1/10th%. There are also increases coming to what I call add-ons. Add-ons are fees charged by Fannie Mae and Freddie Mac. Add-ons vary depending on credit score and down payment of each mortgage borrower.
Is It Cheaper to Rent or Own a House? If you are planning on moving and are financially stable enough to potentially qualify for a mortgage, there is a lot for you to consider. Buying a home usually requires a down payment plus closing costs. Renting also comes with its own fees, but those are generally less than you will need to buy a home. Here, we will explore whether it is cheaper to rent or own a house. And the pros and cons of both.
When buying a home in Washington, D.C. you should work with a lender familiar with Mortgage Credit Certificates (MCC’s) and who is participating in the MCC Program. A Mortgage Credit Certificate allows eligible borrowers to claim a Federal Tax Credit of 20% of the mortgage interest paid on the mortgage during each calendar year. The remaining 80 percent of the mortgage interest paid for that year may still be claimed as a tax deduction.
I just heard that Federal Housing Finance Agency (FHFA) has implemented a hike to the Fannie Mae/Freddie Mac guarantee fee. This is the fee that the Government Sponsored Enterprises (GSE’s) which are now actually GOE’s (Government Owned Enterprises) pays to the government for their backing. They raised this fee to pay for the Temporary Payroll Tax Cut. The announcement said specifically:
When the U.S. sues a big bank what happens? I read a Wall Street Journal article titled, “U.S. Sues Wells Fargo for Faulty Mortgages”. It is another government lawsuit against another big bank. It is another attempt at a department of government to make sure the public knows it is doing something. Something that is allegedly for the public good.