Samuel Gibson Jr NV-MLD 3080 Branch Manager

Title is the legal documentation that bestows ownership of real property. This is to be indicated in Part II of the 1003 Uniform Residential Loan Application as “manner in which title will be held.”

The decision of how the title will be held should not be put off until the last-minute since it has a great impact on future tax planning, the financial future of the borrower(s) and their respective heirs, and the choice of the lender.

It is most important for the mortgage consultant to work hand-in-hand with the borrower’s financial planner or tax consultant to assist their mutual client in order to make decisions that work best for their particular scenario.

For example, most married couples would consider holding title with Joint Tenancy. But if one spouse has a good credit history while the other has damaged credit that may prevent funding of the loan, it would be advantageous to place title in the name of the spouse with the good credit rating.

Common ways to hold title are broken down into options that fall under the categories of sole ownership or co-ownership. Many states permit the holding of title in a living trust, but some lenders do not accept those terms. There are ways around this, but this is where the financial planner and the mortgage planner can make a tremendous by working together.

Direct Access Lending NV-Broker #405

650 White Dr #200

Las Vegas NV 89119

o: (702) 617-9900 x1106

c: (702) 205-7409

f: (702) 425-9426

e-mail: samuel.gibson@dalusa.com

Samuel Gibson Jr NV-MLD 3080 Branch Manager

Senators have agreed to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first homebuyers but is set to expire at end of November. A spokeswoman from Senator Majority Leader Harry Reid said senators agreed Wednesday to extend the existing tax credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years.

A congressional aide said the tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes. WASHINGTON (AP)

Samuel Gibson Jr NV-MLD 3080 Branch Manager

Based on the “Making Work Pay” tax credit, employers now use new withholding tables to lower the amount of tax that is withheld from eligible workers’ paychecks.

Samuel Gibson Jr NV-MLD 3080 Branch Manager

1. Free Money. The $8,000 tax credit for first time buyers is valid before December 1, 2009. This special tax credit from the government that you don’t have to pay back, as long as you stay in the home for at least 36 months.

2. Affordability. Based on recent property declines and current interest rates, home affordability has not been higher since it was tracked over 40 years ago. Your grandparents couldn’t have received a better interest rate than you can today.

3. Tax Breaks. The IRS allows you to deduct the interest you pay on your mortgage, your property taxes and, in many cases for those who qualify, some of the cost to buy your home and mortgage insurance. Owning a home a home is a great way to lower your tax bill.

4.  Appreciation.  As home prices have fallen precipitously in today’s tough economy, the basis for realizing appreciation in future years is very strong. Historically, even with other periods of declining value, home prices have exceeded consumer inflation. From 1972 through 2005, home prices increased on average 6.5% according to the National Association of Realtors.

5. Stability. Knowing you can establish roots and raise a family in one location, free of the desires or needs of your landlord to sell the property you are living in. This is something no other investment provides. you can’t live in a stock, and you cant raise your kids in a bond.

6. Build Wealth.Unlike paying rent, with each mortgage payment you make, you build equity and you decrease your income tax liability. Owning a home is still the best long-term investment.

7. Independence. Enjoy the freedom to do what you want to your home. After all, it’s yours to do what you wish. And, with any improvements you make, you have the ability to benefit from your investment. Try that with an apartment!

Direct Access Lending NV-Broker #405

650 White Dr #200

Las Vegas, NV 89119

o: 702.617.9900 x1106

c: 702.205.7409

f: 702.425.9426

email: samuel.gibson@dalusa.com

**News on Fannie Mae Home Path Program** 

 Eligibility Requirements for

Fannie Mae Home Path Program

 The Fannie Mae Home Program is specifically designed for borrowers purchasing a REO directly from Fannie Mae.  

□       Standard fixed and adjustable rate products.  

□       Fully amortized fixed and adjustable rates. 

□       Up to  95% LTV 1-2 units primary residents and DW manufactured homes.  Full doc, FICO 660 minimum. 

□       Up to 90% LTV second homes and investment properties. Full doc, FICO 660 Minimum.  

□       Warrantable Condos: Primary residence 80%-95% LTV FICO 660 minimum, Second Home or Investment 80%-90% LTV FICO 660 minimum. 

□       Mortgage insurance not required and appraisal not required. LTV is based on purchase price. Program requires HomePath Disclosure form to borrowers. 

□       Sellers concessions up to 6% with LTV from 75% to 95%. 

□       All Fannie Mae REO properties are not eligible for the HomePath financing. Property must be registered at www.homepath.com as being eligible for HomePath financing.  

This is a quick overview of the new Fannie Mae Guidelines for New program called Home Path.  For more information please contact:

Melanie Dages  NV-MLD # 43600

Direct Access Lending

650 White Drive  #200

Las Vegas,  NV  89119

702-468-8737

702-617-9900  etc 1176

NV Broker #405

Samuel Gibson Jr NV-MLD 3080 Branch Manager

 According to HUD, The Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008 (Public Law 110-289) (HERA), constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America’s residential housing market. The SAFE Act is a key component of HERA.

The SAFE Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and for the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry.

The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration are together issuing proposed rules requiring mortgage loan originators to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act).

The proposal (R-1357) establishes the registration requirements for mortgage loan originators employed by agency-regulated institutions as well as requirements for these institutions, including the adoption of policies and procedures to ensure compliance with the S.A.F.E Act and final rule. According to a press release from the Federal Reserve on June 1, 2009, the S.A.F.E. Act requires the agencies to jointly develop and maintain a system for registering residential mortgage loan originators who are employees of agency-regulated institutions, including national and State banks, savings associations, credit unions, and Farm Credit System institutions, and certain of their subsidiaries.

• Mortgage loan originators (defined who are employees of agency-regulated institutions) must be registered with the Nationwide Mortgage Licensing System and Registry (Registry), a database established by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the States.
  
• Participating mortgage loan originators must furnish to the Registry background information and fingerprints for a background check.
• The S.A.F.E. Act generally prohibits employees of an agency-regulated institution from originating residential mortgage loans without first registering with the Registry.
• The proposal also requires these mortgage loan originators to obtain a unique identifier through the Registry that will remain with that originator, regardless of changes in employment.
• The proposal further requires these mortgage loan originators to provide their unique identifiers to consumers in certain circumstances and agency-regulated institutions to make them available to consumers. Because modification of the Registry to accept federal registrations involves complex technical issues, the proposed rule provides for a delay in implementation of the registration requirements until 180 days after the Registry becomes operational and available for initial federal registrations.

Direct Access Lending  NV Broker #405

650 White Dr. #200

Las Vegas, NV 89119

o: (702) 617-9900 x1106

f: (702) 425-9426

c: (702) 205-7409

e: samuel.gibson@dalusa.com

Samuel Gibson Jr NV-MLD 3080 Branch Manager

In 2008 the Housing and Economic Recovery Act prompted changes in several laws effecting residential lending. Truth In Lending received extensive overhauling with the introduction of MDIA in July, 2009.

Effective with loan applications dated on or after October 1, 2009, the second phase of TIL changes are ushered in which require specific loans to be tested to see if they are Higher Priced Mortgage Loans (HPML’s) or Section 35 loans.

Higher Priced Mortgage Loans (HPML) are those that meet the following criteria:

• Owner occupied, principal dwelling
• Purchase and refinance transactions
• The APR on the 1st lien loan is greater than 1.55 over the Average Prime Offered Rates as quoted by the FFIEC on their website. Separate rate tables exist for fixed and adjustable rate transactions.

Average Prime Rates means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics. The Board of Governors of the Federal Reserve publishes average prime offer rates for a broad range of transactions in a table updated at least weekly.

Effective Date:

The rules are effective with all loan applications dated on or after October 1, 2009 or all mortgage applications with a note date on or after January 1, 2010 regardless of the application date.

I would encourage everyone to learn the requirements under HERA. HERA guidance can be found at http://edocket.access.gpo.gov/2009/pdf/E9-11567.pdf.

Direct Access Lending NV – Broker #405

650 White Dr #200

Las Vegas,  NV 89119

o: 702.617.9900 x1106

f: 702.425.9426

c: 702.205.7409

e: samuel.gibson@dalusa.com

John Le Francois NV-MLD #40102

This past month the Social Security Department announced that for the first time in 26 years there will not be an adjustment for COLA (Cost of Living Increase) for Social Security recipients starting in 2010. Many recipients might actually see a decrease in payments due to higher Medicare premium costs. Social Security Department has defended this action stating do to the lower inflationary costs there was no need to provide an increase. They also stated that they have included the higher Medicare premiums to calculate for the COLA adjustment.

While this may seem rational to some and a fair approach on government control on spending, it hurts the most vulnerable people in our society who are dependent on the fixed income they receive. What is not factored in is that while the Social Security recipient was getting the COLA increases it did not keep up with inflation and the money did not stretch as far as the previous years.

Senior’s have been the hardest hit as the job market has shrunk, so has the jobs that were needed to help make ends meet for them. Baby boomer’s that are now reaching retirement age are now questioning if they can even retire as pensions are decreasing and 401K’s are now only 50% or less off of its highest value. Some senior’s bought houses with ARM’s in the believe that they could use their 401K to pay off the mortgage only to see that they do not have the funds to do this now. They can not refinance into a fixed mortgage as the value of the home as depreciated.

Some Seniors are making some very difficult decisions  on priorities on utilities, food, or medical costs to keep from losing their house. Most seniors do not want to move from their home that they have worked hard for. Most seniors do not want to ask their children for help and do not let them know until it is too late.

Reverse Mortgage

There is a solution to most of these problems, a Reverse Mortgage. Most seniors are missed informed on how the program works as they have only heard the “Urban Legends” and as such I will list some of the misconceptions.

Myth #1: The bank takes away OR I will lose my house.
FACT: With a reverse mortgage, the borrower retains title to the home throughout the life of the reverse mortgage:
The borrower cannot, as a result of the reverse mortgage, be forced out of his or her home as long as property taxes and hazard insurance are paid, the home is maintained in reason living condition, and at least one borrower resides the home as their primary residence.
The loan must be repaid once the last borrower permanently moves out of the home.

Myth #2: The home must be debt free to qualify for a reverse mortgage.
FACT: Reverse mortgages convert home equity into cash. As long as there is sufficient equity in the property, the homeowner may be eligible for a reverse mortgage. In fact, many seniors use a reverse mortgage to pay off an existing mortgage in order to eliminate a required monthly mortgage payment.

Myth #3: The bank sells the home when the reverse mortgage becomes due.
FACT: The borrower is in control of the home and retains title, not the bank or lender. So while it’s common for the borrower or the heirs to sell the home to repay the loan, it’s a decision the borrower or the heirs make. The borrower or the heirs might also refinance the home in order to repay the loan.

Myth #4: My children won’t be comfortable with me obtaining a reverse mortgage.
FACT: Seniors are encouraged to talk with their children about reverse mortgages. Many baby boomers are faced with trying to plan for their retirement and pay for their children’s education. Often, the children of many seniors are happy that their parents have a financial solution available to help them live more independently and financially secure.

Myth #5: The borrower could end up owing more than the house is worth.
FACT: Two of the great built in safeguards of reverse mortgages are that they are structured so that the borrower can never owe more than the fair market value of the home upon repayment*.  In addition, HECM products are insured by the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development (HUD).

*If the borrower or the heirs want to keep the house by refinancing the debt and paying off the reverse mortgage, the borrower or heirs must payoff the balance in full, regardless of the value of the property.  If the last borrower has moved out of the property and the property will be sold in an arm’s length transaction, the property may be sold for the fair market value and neither the borrower’s estate nor the heirs will be responsible for a deficiency balance.

Myth #6: Reverse mortgage proceeds will impact Social Security and Medicare benefits.
FACT: A reverse mortgage will generally not affect regular Social Security payments or Medicare benefits. Depending upon the borrower’s situation, a reverse mortgage may affect benefits one receives, if any, from the Federal Supplemental Security Income (SSI) program, or state-administered programs like Medicaid. It is recommended that the borrower speak with his or her financial advisor and appropriate governmental agencies.

Myth #7: There are restrictions on how the money is used and taxes will have to be paid on it.
FACT: Actually there are no restrictions. The cash proceeds from a reverse mortgage can be used for almost any purpose and since it’s already your money, it’s tax-free. Many seniors have used reverse mortgages to travel, pay off debts, help their kids, make a luxury purchase or just live more comfortably.

Myth #8: Reverse mortgages are only for seniors in need, or for the ‘house rich, cash poor.
FACT: Reverse mortgages are an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years. In fact, with the new 2009 lending limit, many seniors are benefiting from increased cash benefit from a reverse mortgage.

To get more information or to see if you qualify for a Reverse Mortgage contact me.

John Le Francois

Direct Access Lending NV-Broker # 405
650 White Drive #200

Las Vegas, NV. 89119

Office: 702-2-617-9900 Ext. 1165

Fax: 702-617-9970

Mobile: 702-271-2659

Website

Customer Ratings

E-Mail: john.lefrancois@dalusa.com

Samuel Gibson Jr NV-MLD 3080 Branch Manager

A Big Tax Deduction: One of the largest tax deductions available is the

NV-MLD Broker #405

amount of interest paid on a mortgage. In fact, a $150,000 home at 5.50% interest rate can add up to approximately $8,000 in first year interest. This amounts to significant savings – effectively reducing the amount of a homeowner’s monthly mortgage payment.

John Le Francois NV-MLD #40102

The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve their exposure to risk.  The changes, effective January 1, include:

• Modification of Procedures for Streamline Refinance Transactions
• Adoption of Home Valuation Code of Conduct Guidelines (some not all)
• Updated Appraisal Validity Period
• New Appraisal Portability Regs
• New Requirement of Lenders to Submit of Audited Financial Statements for Review
• Adjustments to the Approval Process for Participation in FHA Loan Origination
• Increased Net-Worth Requirements for Lenders

Grabbing the attention of mortgage professionals was FHA’s decision to adopt language from HVCC appraisal guidelines. The HVCC, which has been the subject of heated debate within the industry, was implemented by Fannie Mae and Freddie Mac on May 1, 2009. At that time the FHA decided not to adhere to the policy. This undoubtedly increased demand for FHA loan products as originators quickly learned of the multitude of problems associated with HVCC. The new requirements will prohibit any commissioned based lender staff member from ordering an FHA appraisal.

FHA will not require the use of AMCs or other third party organizations for appraisal ordering, if lenders do use AMCs and/or other third party organizations FHA-approved lenders must ensure that:

• FHA Appraisers are not prohibited by the lender, AMC or other third party, from recording the fee the appraiser was paid for the performance of the appraisal in the appraisal report.
• FHA Roster appraisers are compensated at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.
• The fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.
• Any management fees charged by an AMC or other third party must be for actual services related to ordering, processing or reviewing of appraisals performed for FHA financing.
• AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.

John Le Francois

Direct Access Lending NV-Broker # 405

650 White Drive #200

Las Vegas, NV. 89119

Office: 702-2-617-9900 Ext. 1165

Fax: 702-617-9970

Mobile: 702-271-2659

Website

E-Mail: john.lefrancois@dalusa.com