Fremont Real Estate and Beyond

An interesting article from the Wall Street Journal saying Fannie Mae may do away with paystubs and would allow lenders to use employment and income information from a database maintained by credit bureau Equifax to verify borrowers’ ability to handle a loan, rather than relying on the traditional documentation process of collecting physical copies of pay stubs and tax data. The move is expected to make the mortgage process easier for borrowers and lenders alike. More info here-- http://www.wsj.com/articles/need-a-home-mortgage-fannie-says-forget-the-pay-stubs-1445333580

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  

 A really interesting article came out on MarketWatch.com regarding what keeps Millenials from owning a home.  Carrington home loans asked, "What keeps you from buying a home?" and they sorted the responses by category, and then broke them out by region in the United States.   More on this article is here-- http://www.marketwatch.com/story/millennials-in-texas-and-in-california-reject-home-ownership-for-vastly-different-reasons-2015-05-28?siteid=yhoof2

As part of their obligations under the Real Estate Settlment Procedures Act (RESPA) and the Dodd-Frank Wall Street Reform and Consumer Protection Act the Consumer Financial Protection Bureau issued an updated "Special Information Booklet" which is now known as the "Your Home Loan Toolkit."  The toolkit attempts to modernize and simplify the information presented to consumers and is designed to work better with the new forms and processes under RESPA/TILA harmonization that go into effect on August 1, 2015. Download the toolkit at the link below-- http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf

I'm glad that FICO and their affiliates are reaching out to worthy individuals who have not been able to obtain traditional credit. More info here-- http://www.housingwire.com/articles/33445-its-official-fico-announces-new-credit-program-for-risky-borrowers

BofA has been recently making a push to educate consumers about the products they provide.  One of the new sections has been about mortgages and what it takes to finance a home purchase.  You can find great posters and videos here-- https://www.bettermoneyhabits.com/buying-my-first-home/steps-to-get-a-mortgage.html https://www.bettermoneyhabits.com/buying-my-first-home/steps-to-get-a-mortgage.html

Great news came out this morning that the nation's three largest credit-reporting companies have agreed to make it easier for consumers to correct mistakes, as well as to wait longer to list unpaid medical bills to allow more time for insurance payments. More info is here-- http://www.latimes.com/business/la-fi-credit-reporting-settlement-20150309-story.html

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. 

I've been seeing an uptick in short sales hitting the market and getting a lot of calls from perspective buyers who have gone through a short sale or foreclosure in the past.  The most frequent question I've been hearing is, how long will it take to clear from my credit report?  Here's a great chart to answer this question.  

When I was a not-so-wee lad taking real estate classes for my Broker's license (this was before the bubble burst), part of the requirements was to take a finance class.  I remember distinctly having a very heated discussion with another student about whether there was ever a better time to rent than buy.  I pointed out in New York and in many other prosperous countries in Europe, there were a lot of people who rented rather than bought and their economies weren't affected.  Others argued that, "The only direction home prices can go is up" and that "No one who ever owned real estate has ever lost money".  Obviously we've learned over the past half decade both arguments are not true.  There are still a lot of people who are underwater or barely treading after purchasing a home. This new WSJ article points out that many people currently are just 1 setback away from financial ruin. As I've told all of my clients-- -Talk to a lender and make sure yo...

In other lending news, we will find out on 10/22 whether financial regulators are finished with developing mortgage market standards, which will adopt a more relaxed set of rules designed to ensure credit is broadly available. http://www.marketwatch.com/story/regulators-likely-to-finalize-relaxed-mortgage-ruleoct-22-2014-10-15  

This is great news for consumers who need to share their FICO scores (i.e.: getting a pre-approval letter or loan)...