Fremont Real Estate and Beyond

FEMA announced late Friday that it will once again renew flood insurance policies, which were halted during the partial federal government shutdown.  This has affected ~40,000 home sale transactions nationwide.  More info here-- https://rismedia.com/2018/12/31/nar-helps-secure-fema-reversal-shutdown/

Per the Freddie Mac news release.  This opens the door for obtaining loans with realistic interest rates to those who may not be able to afford a traditional home.  The next step is getting through the prohibitive park approvals... Freddie Mac (OTCQB: FMCC) today announced CHOICEHomeSM conventional financing for manufactured housing to help increase the availability of the quality affordable homes that borrowers want, while providing lenders with the innovative financing options they need. Today’s manufactured homes can deliver outstanding quality at prices that are up to 50 percent less per square foot than conventional site-built homes. These savings can enable more Americans to own their own home, even in the face of an ever-widening housing affordability gap. “Finding a home is more difficult than ever because of the ongoing housing supply shortage in many parts of the country, especially when looking for a home at a lower price point,” said Mike Dawson, vice president ...

HUD is changing some of the rules behind reverse mortgages today.  Specifically, seniors won't be able to borrow as much and they will have to pay more up front.  A great explanation and interview from Marketplace Weekend.

Starting next year, Fannie and Freddie will not be able to retain any capital.  This was part of the terms of their bailout package in 2008.  Why is this important? It means starting next year taxpayers will probably have to foot the bill if they incur any losses.  It's important to remember that Fannie and Freddie back about 40 percent of the nation’s home loans. There are a few lawmakers and private industry titans getting together to brainstorm on how to deal with this.   More info here-- https://www.bloomberg.com/news/articles/2017-03-28/fannie-freddie-fix-is-focus-of-senators-push-across-party-lines

HUD just announced it is reducing FHA annual premiums by a quarter of a percent, saving the homeowner on average of $500/year. More details here-- https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2017/HUDNo_17-003

Federal Housing Finance Agency (FHFA) announced the development and implementation of Fannie Mae and Freddie Mac’s new Flex Modification program which will replace the Enterprises’ current Home Affordable Modification Program (HAMP®) which expires at the end of the year.  The program incorporates elements of a joint white paper developed by the U.S. Department of the Treasury in conjunction with the U.S. Department of Housing and Urban Development (HUD) and FHFA titled Guiding Principles for the Future of Loss Mitigation. Terms of the program included a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations. More info here-- https://www.nar.realtor/articles/gse-announce-new-modification-program

In a very head scratching hire, president-elect Donald Trump tapped retired neurosurgeon Dr. Ben Carson to be head of HUD.  He has never held public office before. More info here-- http://www.npr.org/2016/12/05/503150852/trump-taps-ben-carson-for-secretary-of-housing-and-urban-development

The National Association of Realtors is reporting that members of the House and HUD are trying to ease the very restrictive FHA requirements for purchasing condos with FHA. Highlights of the bill--  Ease FHA’s restrictions on the purchase and sale of condominiums.  The bill includes changes to the certification process, owner/occupancy ratio, commercial space requirements, and transfer fees.  NAR has been pushing FHA on these changes for more than 3 years.   Provide the Rural Housing Service with delegated endorsement for approved lenders.  NAR has been pushing for this provision for over a year, that will streamline the use of RHS loans and speed up processing times.   Provisions to preserve and expand affordable rental housing.  These provisions will reduce burdens for the owners and managers of these Section 8 properties and provide greater opportunities for low income tenants. More details are here-- http://www.realtor.org/articles/major-...

Fannie and Freddie are usually a nebulous topic for most people.  An interesting interview came up today on Marketplace about Fannie and Freddie and how they are integral to the mortgages made today. U.S. mortgage giants under the microscope | Marketplace.org  

It's been a long road for TRID, which are the 2 new forms (Loan Estimate and Closing Disclosure) to replace the TILA, Good Faith Estimate, RESPA, and HUD-1.  This makes the facts about a person's loan more clear as well as the closing costs more accurate.  The closing disclosure also explains why there may be any differences in final expenses between what was mentioned in the loan estimate and what appears in the closing disclosure.  Video and samples of the paperwork are below.  

Starting Sept. 14, HUD is including a mandate that instructs lenders to inform borrowers when they first meet to get a home inspection prior to purchasing a home. The mandate will be added to the HUD/Federal Housing Administration Single Family Policy Handbook and will include a document called "For Your Protection, Get a Home Inspection." HUD has asked the American Society of Home Inspectors to provide buyers with information about why they should get a home inspection, why the FHA does not guarantee the value or condition of a new home, and information on radon gas testing and other safety and health issues.

I mentioned earlier about PACE loans causing issues with home purchases being super liens. An announcement by the U.S. Department of Housing and Urban Development (HUD) that the Federal Housing Administration (FHA) will issue final guidance that will require Property Assessed Clean Energy (PACE) liens to be subordinate to FHA single-family first-mortgage financing: “C.A.R. provided input to HUD last week asking that PACE liens remain subordinate to FHA first mortgages, and we are pleased with HUD’s announced anticipated guidelines to do so,” said C.A.R. President Chris Kutzkey. “In aligning with the Federal Housing Finance Agency’s (FHFA) policy that prohibits Fannie Mae and Freddie Mac from buying mortgages or notes with PACE-type “super liens,” home buyers can more easily obtain FHA financing while supporting energy efficiency, and mortgage markets can remain secure.” PACE loans allow homeowners to build the costs for energy-efficiency upgrades, such as adding insulation and ins...

The U.S. Department of Housing and Urban Development (HUD) announced a final rule today to equip communities that receive HUD funding with data and tools to help them meet long-standing fair housing obligations in their use of HUD funds. HUD will also provide additional guidance and technical assistance to facilitate local decision-making on fair housing priorities and goals for affordable housing and community development. More can be read here-- http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2015/HUDNo_15-084

HUD has announced it will be revising its auctions of non-performing mortgages to address concerns it's not doing enough to help neighborhoods affected by foreclosures. The most important aspect is that after winning a bid, buyers will be barred from seizing properties for at least a year. More details can be found here-- http://www.bloomberg.com/news/articles/2015-04-24/hud-to-delay-foreclosures-in-loan-sale-changes-to-aid-homeowners

I'm really glad the Consumer Finance Protection Bureau is finally enacting changes to the loan paperwork received by the consumer at the beginning and end of escrow.  I've encountered a lot of buyers who were surprised by unexpected costs that came up at the last minute.  This smooths out the entire escrow process! August 1, 2015 is when these new rules will be enacted. 

 Per the CAR Broker newsletter-- A controversial plan to use a municipality's eminent domain powers to seize properties in default has suffered a severe setback.  FHA, Ginnie Mae, and HUD now have no funds to insure, securitize or establish a federal guarantee of any mortgage or mortgage backed security that refinances or replaces a mortgage that was subject to eminent domain condemnation or seizure by a state, municipality or other political subdivision of the state.  The funding to allow such federal guarantees was removed in the Fiscal Year 2015 Omnibus Appropriations bill.  This should make it much more difficult to finance or resell any such securities under these programs. Such mortgage seizure programs were proposed by some companies that promised municipalities a portion of the proceeds when the mortgages were resold. Under the program, the defaulting or underwater homeowners would also be allowed to stay in their homes with the mortg...

No flashy posters to post today, but I just thought I'd throw out some great sites to find your next dream home or investment property.  I don't get paid by any of these sites, they're just great resources that I use. Redfin (my alma mater!) This shows *most* of the homes for sale.  The East Bay MLS has a quirk where if the listing agent doesn't click a certain button, it doesn't appear on any of the websites that pull from the MLS (i.e. Redfin/Zillow/Trulia/etc.). New Home Source Great website for new construction homes. REO homes that give preference to owner occupied home owners or first time home owners.  HUD homes require buyers to have agents who have a HUD license (I do!) Fannie Mae Freddie Mac HUD REO bank multiplexes HUD