Archives
June 2006
Friday, June 30, 2006 - Down Payment Assistance Programs - IRS/HUD Update "The List" |
In response to the IRS Ruling, FHA published Mortgagee Letter (ML) 2006-13, Charitable Organizations
Making Downpayment Gifts. ML 2006-13 provides links to the IRS and FHA’s lists of organizations that have lost their tax exempt status. We accept Wells Fargo approved seller funded DAPs that meet FHA requirements.
To obtain ML 2006-13 visit: http://www.hud.gov/offices/hsg/mltrmenu.cfm
To ensure a timely closing, contact your DAP provider one week prior to verify funds will be provided at closing. |
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Tuesday, June 27, 2006 - Blackberry Contacts Need Updating? |
ADD CONTACTS TO YOUR BLACKBERRY
If you have a bunch of contacts to enter into your blackberry, it might be easier to add them in your Blackberry Internet Service Account. The contacts will be automatically sent to your Blackberry.
Simply log in, on the left hand side of the menu select Address Book. On the address book page, select NEW. Enter the information and then click SAVE AND CLOSE. |
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Monday, June 26, 2006 - SECURE YOUR LAPTOP |
With more and more professionals using laptop computers, it is more important than ever to safeguard against theft. There are many devices available to protect your laptop from robbery. One of the easiest ways to guard your laptop and valuable files on your home or work PC is to use a KEY. SecuriKey is one such product that uses a USB key and hardware encryption to protect your information. If someone does steal your laptop, they will not be able to access your files without the USB key and password. The same holds true for your office or home PC.
Files cannot be accessed without the USB key!
http://www.securikey.com/securikeypro.htm |
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Monday, June 26, 2006 - BACK UP YOUR DATA! |
We all know how important backing up your data is. You work hard and your data should be protected! There are many back up services online, making it even easier for you to protect valuable files!
Check out Mozy. It's a FREE back up service for up to 2GB.
http://mozy.com/ |
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Monday, June 26, 2006 - What is "Express Path Financing?" |
THIS IS NOT AN ENDORSEMENT OF THIS PRODUCT, BUT WE HAVE BEEN ASKED WHAT THE PRODUCT IS BY ONE OF OUR LOAN OFFICERS WHO HAD A BORROWER ASK HIM ABOUT IT.
From the research we've done, it appears that this product is related to properties that are Fannie Mae foreclosures and therefore, it's a quick way to get them off their books.
On selected Fannie Mae homes special financing may be available. There are reduced closing costs, an appraisal is not required nor are lender-required repairs. If this financing is offered, the listing agent will publicize that in the MLS comments. Pre-qualification is required for this financing. Prospective buyers should call PHH Mortgage Services directly at (866) 366-2736. See the ExpressPath brochure in the home for additional details and requirements.
HERE IS THE ACTUAL PRODUCT DESCRIPTION:
ExpressPath—a fast, cost effective way to finance your home designed with YOUR needs in mind.
ExpressPath is brought to you by PHH Mortgage and is available to borrowers purchasing eligible properties for their primary residence.
ExpressPath Benefits for Homebuyers Include:
A Fast and Simple Loan Decision Process . . . allows you to get a loan decision—not merely a pre-qualification —in as few as 20 minutes.
Most importantly, there are NO up-front application fees.
Seller– Paid Closing Cost Assistance . . . reduces the challenges you might face regarding down payment and closing cost requirements.
With ExpressPath, a property appraisal* is not required and the seller will pay the borrower's closing costs, excluding pre-paids. A PHH loan consultant can provide you with details.
Lender Service Guarantees . . . PHH Mortgage provides ExpressPath borrowers with outstanding service guarantees to give you the confidence your loan decision is the right one. Guarantees include Same Day Loan Decision, a $500 Best Price Guarantee**, and a Closing Date Guarantee that reduces your rate by 1/8th of 1% if the closing date is missed***.
Great Service . . . friendly loan consultants are there when you need them. PHH Mortgage has a team of experienced, bilingual loan professionals to assist you with your loan application or answer questions. They are available Monday through Friday from 8:30 a.m. to 8:00 p.m. EST and on Saturday from 8:30 a.m.-5:00 p.m. EST.
Customized Loan Products . . . ExpressPath includes a wide array of fixed- and adjustable-rate mortgage products with competitive pricing and down payment options with borrower contributions as low as $500, and up to 100% financing available for qualified borrowers.
How To Apply
1. Call toll free (866) 366-2736 to speak with a loan consultant
2. Provide a limited set of pertinent financial information about you and any co-borrowers
• Social Security #
• Employment information for last 2 years
• Income (W-2s and Paystubs) and asset information
• Property purchase price
• Requested loan amount
3. Receive your loan decision within minutes
HERE IS A LINK TO THE FLYER:
http://www.highplainsrealty.net/ExpressPathFact%20Sheet%20Final%20(2).pdf |
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Sunday, June 25, 2006 - IRS Issues Revenue Ruling on Downpayment Assistance Companies |
On May 4, 2006, the Internal Revenue Service issued Revenue Ruling 2006-27 addressing the tax-exempt status of companies providing downpayment assistance to borrowers. Specifically, the ruling holds that companies providing downpayment assistance through funding received from property sellers will not qualify for tax-exempt status as a 501(c)(3) organization.
In the ruling, the IRS holds that seller-funded payments are not motivated by “detached and disinterested generosity” but instead are made with the expectation of economic gain by facilitating the sale of the seller’s home.
An organization using seller funding for its downpayment assistance program does not get tax-exempt status because it is not construed to be operating exclusively for charitable purposes. Further, the amount of the downpayment assistance is interpreted as a rebate or purchase price reduction, and is not included in the homebuyer’s cost basis. The IRS distinguished seller-funded programs from those that use a broad base for funding, from sources not connected to the sale of a particular property.
MORE ON THE STORY
Nonprofit DPAs Unite in Response of IRS Revenue Ruling 2006-27
Monday May 22, 2:38 pm ET
SupportDownPaymentAssistance.org Advocates Need for Public Comment
GAITHERSBURG, Md., May 22 /PRNewswire/ -- An alliance of nonprofit organizations that provide down payment assistance have joined forces to urge Treasury Secretary John W. Snow to suspend IRS Revenue Ruling 2006-27 and create an opportunity for public comment on the impact the ruling will have on low-to-moderate income homebuyers, the housing industry, and the national economy.
The organizations united in response to a May 4th revenue ruling by the Internal Revenue Service that could result in preventing certain nonprofit organizations from providing down payment assistance to low and moderate income individuals and families who require help to purchase a home.
"The negative impact that the revenue rule will have on American homebuyers and an already declining housing market demands that the general public and key stakeholders should have an opportunity to comment on key elements of the ruling and whether there is a more effective and cost beneficial way to accomplish its objectives," said Ann Ashburn, AmeriDream President and CEO. The alliance has named Ms. Ashburn as its chair and chief spokesperson.
Absent from the ruling is the recognition that the nonprofit down payment assistance sector was created nearly a decade ago with IRS's approval and is now responsible for providing annually over $500 million of assistance to homebuyers. As a result of nonprofit down payment assistance, over 625,000 individuals and families have achieved homeownership. The sector gives financial assistance to approximately 40% of the mortgages that FHA insures. Their mission, similar to FHA's, is to help low-to-moderate income homebuyers.
"The nonprofit down payment assistance sector has had a tremendous positive social and economic impact for low and moderate income individuals and families and has contributed significantly to the national economy, especially with housing contributing so much to our national growth over the past few years," said Kelly Schwedland, President of the Genesis Foundation, who also serves as an alliance spokesperson. "The IRS revenue ruling would take all of these positive contributions away." |
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Sunday, June 25, 2006 - Calyx 5.2 Tips - Sync loan details in Unmarried Cobo file |
When you have a borrower file and a coborrower file because the two borrowers on the loan are unmarried, it gets tricky to keep the loan details lined up while the loan is in process. It's easy to start them out the same because you can create the cobo file from the Borrower file, but as the loan progresses, tiny details change.
It's quite tedious to get the two files to mirror each other. (Otherwise one file could have higher closing costs than another or the wrong loan amount, etc.)
How can you make this easier?
1. Get your borrower file just right. Make sure all the details of the loan are accurate, including:
- property address
- transaction details from Borrower Info screen
- sales price
- value
- loan amount
- 2nd lien info (rate, term, and loan amt)
- Good Faith Estimate
- Truth-In-Lending
2. Go to the dropdown for Borr/Cobo and select the correct cobo file.
3. From the File menu, select "Import From" and then select "Associated Borrower File"
This will import all of the loan transaction data listed above. It will not affect any of the personal information such as employers, liabilities, etc.
LIGHTNING FAST!!!
This is also the workaround for second liens.
Ever notice that when you create a 2nd Lien file by selecting "Subordinate Financing" from the file menu, the unmarried cobo file doesn't pick up the second lien info? It is just a replica of the first lien cobo file.
This is a bug in Point and they are aware of it, but the workaround is to get your Second Lien borrower info just right like we did earlier in the post and then from the Cobo file, do the Associated Borrower file step again.
VOILA!!!
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Saturday, June 24, 2006 - SML Department - Recent Updates Link!!! |
Did you know that our very own Rachel McNamara worked in conjunction with the Savings and Mortgage Lending Department to get information to you easier.
The department does not send out notices that updates are made to their site. They expect that brokers should be checking the site regularly for updates.
Big problem... the site is huge. Where do you look? How do you figure out what's old and what's new?
Rachel created a solution a few months ago and it's now the newest feature on the SML website.
In the center of the page look for the "Recent Website Updates" link. It will take you to a list of all of the updates posted by months and dates so you can easily see what's been posted since the last time you checked the site.
Alliance Academy is staying involved to improve your life as a broker |
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Saturday, June 24, 2006 - CALYX 5.2a - Not a Full Update! |
Though you may think that you are using the most recent forms, chances are that you are NOT! Alliance Academy has played a central role in this situation.
Did you know that the state has updated the Texas Mortgage Broker Disclosure and CALYX IS NOT CURRENT?
Jerry brought it to the attention of the Finance Commission that the form promulgated by the state was not accurate because the borrower did have the right to recieve all funds returned if the transaction was rescinded. The form was updated with the new language and approved for use for ALL TRANSACTIONS AFTER March 19, 2006
By downloading the 5.2a update, you get a lot of your software updated, BUT the update was released on January 27, 2006.
Rachel alerted Calyx to the situation several months ago and they were completely unaware that there was a new form!!! They said they hope to have the form included for the release of the 5.3 update due shortly.
You can get the most current form by going to the state's website.
http://www.sml.state.tx.us/disclosure1.htm
Calyx Update 5.2a http://www.calyxsupport.com/care/update_point52a.htm |
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Saturday, June 24, 2006 - Colorado Enacts Mortgage Broker Registration Act |
Press reports indicate that Colorado Governor Owens has signed House Bill 1161, enacting the Mortgage Broker Registration Act (the “Act”). With the enactment of this new law, Colorado becomes the forty-ninth state to enact licensing or registration of mortgage brokers. The Act will go into effect July 1, 2006, but the requirement that mortgage brokers be registered applies to mortgage brokering activity conducted on or after January 1, 2007.
Currently, only Alaska lacks such oversight of mortgage brokers. |
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