HomeLoans Blog

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 Home Loans Blog

Several blogs and newspaper articles have reported a temporary suspension to the FHA flipping rule. This is very good news to our local Chattanooga market, where foreclosure inventory is building.

The result should be that there will be more qualified buyers and that lenders will be able to make property repairs with FHA approval in mind.

Both of these influences should help sustain our area property valuations.

Foreclosure sales of property in poor condition tend to drive down valuations. And lenders have not had the motivation to make repairs because they could not sell with FHA financing anyway.

The first blog I read this in was http://www.activerain.com/blogsview/553519/We-Can-Flip-Bush .

I verified the change with these articles at CNNMoney.com and Zimbio Business .

I have also posted comments on this in my other blog at http://www.activerain.com/blogsview/553662/FHA-suspends-property-flipping .

This is a significant policy change that is designed not to help investors flip houses, but to help ease the pressures of increasing foreclure inventory.

FNMA, FHMLC, federally chartered banks and other government related lenders have always been able to obtain a waiver to the FHA flipping rule. Now other lenders will also be able to sell their inventories with FHA financing.

In our local Chattanooga market this will help keep high foreclosure inventories from pushing down property values. Lenders are now encouraged to perform property repairs so that the homes will pass FHA standards.

With the new ability to sell with FHA financing, including down payment assistance and full 6% seller concessions, lenders will have many more buyers who are qualified to purchase.

This is generally good news. I will continue to check for more details.

Here is a link to the actual HUD order.

Last week, Governor Phil Bredesen signed into law the new Mortgage Originator Reform bill. This legislation mandates continuing education for all persons who originate mortgage loans in the state. It is really the second step taken to enhancing professionalism in mortgage industry in Tennessee.

Prior to the institution of originator registration, three years ago, there were only minimal requirements to become a mortgage professional. The requirements primarily were to post a bond.There were no educational requirements.

As a result there were many mortgage originators who were probably not qualified to provide the best loan advice.

State licensing has helped, but I think that the education requirement is an even bigger step.

It still remains to be seen how the new regulations will be implemented and what the education requirements will be.  Any start though is a start.

Here is a photo of the bill signing. Tina Christein, president of the TNAMB for 2008 and vice president of American Acceptance Wholesale, is on the left, almost hidden by the pole.

The TNAMB played an important part in developing this bill. The association has already submitted recommendations for the curriculum requirements for originator education.

I will post more on this important development and how it can help consumers.

For consumers who want to make a good decision about purchasing or refinancing their home.

For consumers who are having problems with their existing home loan payment.

For consumers who need help with credit problems or need to build a credit report.

Where do you go for information?

Because there is so much information out there, who is giving good guidance?

The best start, in my mind, is with professional agencies. Take care before paying a fee to any company offering home ownership counselling, credit repair, credit negotiation, etc.

It is probably best not to contact a company that charges. Then, only after investigating options with a non profit or a professional association, and then only with the good counsel of that adviser, should a for pay company be contacted.

If your information need is related to a home loan, it is probably good to get some guidance from a local mortgage professional before taking irreversible steps.

A very good site that I have just discovered is by the Mortgage Banker's Association.

For a start in seeking good information, visit the MBA Home Learning Center.

I love to go to Riverbend. The crowds are exciting. The entertainment is tops. You can see local amateur performers, rising stars, established stars, and old time favorites.

The main acts on the Coca Cola stage are always the focus of most who attend, but the acts on the other stages are always terrific. I am generally disappointed when two are playing at the same time, or if I just arrive too late.

The variety of the quality musical acts performing is just not found in many places.

Here is a play list of two of the acts from the first day.

The Black Crowes headlined on the CocaCola Stage. The reported attendance was over 100,000.

The concert was terrific, and the crowd was great. For some reason they did not play Too Hard to Handle or She Talks to Angels. Both are on this play list.

The Riverbend website is http://www.riverbendfestival.com/

Here are some photos taken from the first day. Trying to be careful not to violate any copyrights, I will not post any photos of the musical acts.

Here are two photos from the first day. Both were take early in the day, before the musical acts had started.

Today American Acceptance Mortgage gave our Super Sponsor presentation to the Chattanooga Chapter of Women's Council of Realtors. The meeting was very productive. I will post more about the meeting which was held at the Home Builders Associations. The topic for the meeting was timely, on realtor/builder relations. Additionally there was a theme basket auction to raise funds for the local WCR.

This post is just to put up the video of our presentation. The Not Ready for the Not Ready for Prime Time Players.