VICTORY for HOMEOWNERS & FUTURE of HOMEOWNERSHIP in this COUNTRY.  This version of the QRM rule will give creditworthy buyers access to safe & affordable loan products without overly burdensome down payment requirements.  The new standards are stringent enough to protect consumers from unscrupulous lending practices while also creating new opportunities for private capital to re-establish itself as part of a robust & competitive mortgage market.  REALTORS were among the most vocal opponents to the first QRM rule proposed in 2011 that would have required 20% down to get a loan.  Some even wanted  30%, but it would take the average American more than 25 years to save enough money for that type loan.  From the National Association of Realtors.

In Texas builders can’t keep up, while usually when the market is strong home builders build more.  Real Estate Center Research Economist Dr. Jim Gaines told Bloomberg he projects about 100,000 single-family permits in TX this year, up 20% from a year ago, but still 30,000 short of what is needed.  Home prices rising not only state’s major metros, but also rural areas such as the West TX oil fields & in the South Texas’ Eagle Ford Shale region.  So much so, Gaines is concerned that the state will loose its reputation for being an affordable place to buy a home.  We are going the path of California & Florida if we don’t think of some way not to do it.  You can SEE IT COMING!

If you live in Texas and thinking about putting your home on the market, you couldn’t have picked a better time, according to an article this week from Bloomberg News.  With housing inventory down, prices up and employment on the rise – which means more folks are looking for a place to live – they are experiencing what the news source called a “suburban land rush.”  Home builders are caught off guard by the ferocity of buyer demand, are exhausting construction-ready lots as they struggle to recruit workers to complete houses quickly.”  PART 2 TO COME!

SOCIAL SECURITY ADMINISTRATION (SSA) – The Social Security Administration is closed and has suspended most customer service functions.  According to the SSA Contingency Plan, verifying Social Security numbers through the Consent Based SSN Verification Service will also be suspended during the shutdown, a further complication for mortgage processing.  As with IRS income verification (discussed on this blog yesterday), policies may vary with each lender.  Fannie Mae and Freddie Mac have also adopted policies to allow for closing subject to subsequent verification and before GSE purchase of the loan.  END OF THIS SERIES OF BLOGS!  NEW SUBJECT TOMORROW.

INTERNAL REVENUE SERVICE (IRS)  is closed & has suspended the processing of all forms, including requests for tax return transcripts (Form 4506T).  While FHA & VA do not require these transcripts, they are required by many lenders for other kinds of loans, including FHA and VA, if the shutdown is prolonged.  Some lenders are waiving this requirement but with income verification to follow, as long as the borrower has signed a Form 4506T requesting IRS tax transcripts.  Fannie Mae & Freddie Mac have also relaxed their provisions allowing for closings, but subject to tax transcript verification before the GSE’s purchase of loans.  MORE TO COME!

GOVERNMENT SPONSORED ENTERPRISES – Fannie Mae & Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency, since they are not reliant on appropriated funds.  TREASURY – The Making Home Affordable program, including HAMP and HAFA, will not affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.  MORE TO COME

FLOOD INSURANCE – The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown, since NFIP is funded by premiums & not tax dollars.  Changes to the flood insurance program scheduled to take effect on Oct. 1 will be implemented as scheduled.  RURAL HOUSING PROGRAMS – For the U.S. Department of Agriculture Programs, essential personnel working during a shutdown do not include field office staff who make the commitment, loan guarantees & modification approvals.  Lenders will NOT receive approvals during the shutdown, but ones in the pipeline will fund and commitment good for 90 days.  MORE TO COME!

FEDERAL HOUSING ADMINISTRATION – HUD’s Contingency Plan states the FHA will endorse new loans in the Single Family Mortgage Loan Program, but not new commitments in the Multi-family  Program during the shutdown.  FHA will pay claims & collect premiums.  Expect some delay with FHA processing.  VA LOAN GUARANTY PROGRAM – lenders will continue to process & guaranty mortgages through Loan Guaranty program in the event of a government shutdown.  Again expect delays.  MORE TO COME.

www.medlineplus.gov

Produced by National Library of Medicine (NLM) for the National Institutes of Health (NIH),  MEDLINE PLUS is a Web-based consumer resource for up-to-date information on diseases, drugs and supplements and medical research.  Again it is FREE and NO commercial advertising.  Can be accessed through any mobile device, through electronic health records (FHRs) and patient portals via MedlinePlus Connect.   There is a wide disparity in the quality of content among medical resources on the Web and MedLine is a reliable source.  “Health Topics” on the home page leads you to information on more than 900 diseases, conditions and wellness issues, including overviews of symptoms, causes, treatments and prevention.  UPDATED REGULARLY AND OFTEN DAILY.  The “Drugs” section provides consumers with information on adverse effects, dosages and precautions for over 1,000 brand-name or generic prescription and over-the-counter drugs — provided by the American Hospital Formulary Service.  “Herbs and Supplements” section on site.  Clicking on “Videos and Cool Tools” leads to interactive tutorials that explain over 165 procedures and conditions in simple language with accompanying audio and graphics and quizzes.  Stay HEALTHY TO READ ALL THIS!!

Several city homeowners have recently reported receiving notices from a company offering to provide them with a copy of their property deed for an $83 payment.  However, the mailings fail to mention one thing:  homeowners can obtain a copy of their deeds themselves for a fraction of the cost – possibly even at no charge – simply by contacting their county clerk’s office.  The mailings imply that homeowners must comply within a specified period of time.  While the mailing does state that it is not a bill and homeowners are under no obligation to pay the fee, some consumers have found the mailing confusing and have issued complaints their local BBB office.  Nothing illegal or wrong, but the banner print and inset boxes on the note give so- called  ‘compliance response dates,” which seem to demand attention and action, but the small print at the bottom of the notice says it not necessary to pay.    Several company names who issue the notices are Property Transfer Service and Record Transfer Services.