HUD secretary: Housing crisis improving, not over
VICTOR EPSTEIN
The Associated Press
HACKENSACK, N.J. - The head of the federal agency working to stabilize the nation's slumping housing market says more homes are being saved from foreclosure as lenders rework mortgages, but cautioned that the crisis is not over yet.
U.S. Housing and Urban Development Secretary Shaun Donovan said Monday that there are other signs of an improving housing market, such as the slowing decline in prices. He estimated that more than 500,000 homes will be saved from foreclosure this year.
"I wish the administration preceding us had begun to address the problem before we began" the process of having 3 million homeowners in foreclosure, Donovan said, testifying at a field hearing of the U.S. Senate's housing subcommittee in northern New Jersey. Residents in the area have been hit hard by job losses and home foreclosures.
The number of New Jersey homes returned to lenders in August increased 17 percent to 877 from the same period a year ago. That compares to 16 percent decline at the national level, according to the RealtyTrac Inc. mortgage information service.
"We have not experienced anything like this since The Great Depression," said U.S. Sen. Robert Menendez, who chaired the hearing in his home state. He predicted that the full impact of the housing crisis won't be felt until homes are revalued. That process is likely to yield downward revisions that reduce government tax revenue.
Marge Della Vecchia, executive director of the New Jersey Housing and Mortgage Finance Agency said entire neighborhoods are being destabilized in New Jersey by blocks of foreclosed homes that have been boarded up.
Homeowners, counselors and lenders who spoke at the hearing said some lenders are reluctant to renegotiate mortgage terms to keep struggling families in their homes. Many banks continue to prefer foreclosure to renegotiation, they said.
Bryan Bolton, a senior vice president at CitiMortgage Inc., said his company believes that modifying loans is preferable to foreclosures in most cases.
But Phyllis Salowe-Kaye, executive director of the watchdog group New Jersey Citizen Action, said most mortgage lenders aren't as supportive of loan modifications.
"If the industry really believed this we wouldn't be here," Salowe-Kaye said.
She said some lenders appear to be padding their numbers by directing refinancing offers to homeowners with solid finances instead of those in need of help, and then counting those deals as a home saved. She pleaded with Menendez and other lawmakers in Washington to do more to help struggling homeowners and to support a proposal from President Barack Obama for the creation of a consumer protection agency at the federal level.
"We are not at the end of this," Salowe-Kaye said. "We have not peaked. We are still in the middle of this crisis."
Golden Spike Realty
GOOD READ ON FHA AND HVCC
FEDERAL HOUSING FINANCE AGENCY NOTICE (FHA)
Strengthening Appraiser Independence and Improving the Valuation Process
Update on Enterprise Implementation of the
Home Valuation Code of Conduct
The Home Valuation Code of Conduct (Code) announced by Fannie Mae and Freddie Mac (Enterprises) in December 2008 was developed after a long period of public input and was deployed on May 1, 2009, after a four-month transition period. The Code expanded on existing Enterprise appraisal standards, seeking to redress problems that contributed to the current mortgage crisis and to improve the quality of the mortgage loans they purchase.
Unfortunately, during the 2005 to 2007 period, mortgage lending was much too aggressive and placed pressure on the appraisal process. In some cases, that resulted in unrealistically high appraisals, hurting homebuyers as well as investors. The HVCC is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers or brokers.
The Code’s main purpose is to protect appraisers and the quality of appraisals from undue influence and conflicts of interest. The Enterprises continue to address questions on implementation and today provided additional FAQs. Also, they are finalizing a complaint form relating to Code violations.
Market participants should appreciate the difficulty facing appraisers when valuing properties in a declining market, especially when sharply dropping home prices and foreclosures are prevalent. The challenges of appraising properties exist with or without the Code. Market participant concerns in the current circumstances would create appraisal controversies even without the Code. Indeed, the Code should help mitigate these controversies by providing clearer protection for appraisers.
The Enterprises have taken additional actions. For example, Freddie Mac recently issued an alert to mortgage lenders advocating the use of qualified and experienced real estate appraisers, including those appraisers affiliated with a professional organization. This was similar to a Fannie Mae pronouncement. The Appraisal Institute termed this a victory for efforts to promote more professional appraisals and said it would "have a positive effect on millions of home buyers and sellers." The GSE guidances reinforce existing professional standards that appraisers must be familiar with the local market where the property is located and highlighted that appraisers must choose appropriate sales comparisons.
Addressing Misinformation
Misinformation has been circulated about the content of the Code and some have tried to cite the Code as the source of unrelated market dislocations. FHFA believes that the Code is serving the intended purpose and will continue its oversight role both as to the implementation of the Code by the Enterprises and its market impact.
Some key items that the public should know:
Communications with appraisers– Contrary to some suggestions, the Code provides for communications with appraisers about errors, additional needed information and unprofessional conduct. Quality control personnel may communicate with appraisers and other lender personnel, outside of the loan origination function. The real bar is on communications that seek to influence the appraiser to adopt a set valuation, which is prohibited.
Low appraisals— Contrary to some suggestions, the Code does not lead to lower appraisals for property. The Code insulates appraisers from pressures that led to higher or lower appraisals and should now lead to more accurate valuations. This is in everyone’s interest. Declining home prices began long before the deployment of the Code and relate to many other factors. Current efforts at mortgage market stabilization are a central focus at FHFA and the Enterprises, but that needs to be achieved by keeping borrowers in their homes, not urging appraisers to improperly overvalue homes.
Appraisal management company (AMC) role— Contrary to some suggestion, the Code does not favor the use of AMCs over independent or in-house appraisers. Significantly, for the first time, the Code places the same requirements for appraiser independence on AMCs as the limits placed on lenders. Lender use of AMCs was increasing prior to the Code and one of the key goals and results of the Code was to strengthen appraiser protections when engaged by AMCs.
Unqualified or out-of-area appraisers– The Uniform Standards of Professional Appraisal Practice (USPAP) requires that an appraiser be competent and knowledgeable of the local market to perform an appraisal. In addition, in reinforcing USPAP, the Enterprise appraisal guides require appraisers to have knowledge of the local market. The use of unqualified in-state or out-of-state appraisers, unfamiliar with local conditions, should be reported to state appraiser licensing agencies.
Increased costs at closing— Closing costs have risen in some instances, but that has not been a function of the Code. Lenders have tightened underwriting standards, often requiring additional comparables by appraisers and even requiring second appraisals. Market investors have focused on reducing fraud and sought greater assurances about valuations. Appraisers have been working hard to meet these requests.
Turnaround times for appraisals— The Code may initially have slowed appraisal time as it was being implemented. However, there are other reasons for turnaround time changes; these include increased demands by lenders, the efficiency of a particular lender’s underwriting process and the workload of appraisers. The Code’s appraiser independence standards are critical for accurate valuations, a lesson learned in the current market crisis. Assuring a good appraisal is in the borrower’s interest. As the market adjusts to new underwriting standards, including those for appraisals, more efficiency will reduce turnaround times.
Transferring an appraisal – Contrary to some suggestions, appraisals are transferrable between lenders under the Code. Transferring an appraisal may obviate the consumer’s need to pay for a new appraisal should the first lender deny the loan. Whether a lender decides to transfer or
accept an appraisal, however, is up to the lender, and is not related to the Code. Lender discretion in this area predated the Code.
* * * *
The Home Valuation Code of Conduct supports the critical role of appraisers and their central role in the underwriting process. Accurate appraisals, produced in line with industry standards and legal requirements, provide key protections for homeowners, the Enterprises and investors who support the markets. The poor practices of the past are being corrected and lessons learned are being addressed.
Strengthening Appraiser Independence and Improving the Valuation Process
Update on Enterprise Implementation of the
Home Valuation Code of Conduct
The Home Valuation Code of Conduct (Code) announced by Fannie Mae and Freddie Mac (Enterprises) in December 2008 was developed after a long period of public input and was deployed on May 1, 2009, after a four-month transition period. The Code expanded on existing Enterprise appraisal standards, seeking to redress problems that contributed to the current mortgage crisis and to improve the quality of the mortgage loans they purchase.
Unfortunately, during the 2005 to 2007 period, mortgage lending was much too aggressive and placed pressure on the appraisal process. In some cases, that resulted in unrealistically high appraisals, hurting homebuyers as well as investors. The HVCC is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers or brokers.
The Code’s main purpose is to protect appraisers and the quality of appraisals from undue influence and conflicts of interest. The Enterprises continue to address questions on implementation and today provided additional FAQs. Also, they are finalizing a complaint form relating to Code violations.
Market participants should appreciate the difficulty facing appraisers when valuing properties in a declining market, especially when sharply dropping home prices and foreclosures are prevalent. The challenges of appraising properties exist with or without the Code. Market participant concerns in the current circumstances would create appraisal controversies even without the Code. Indeed, the Code should help mitigate these controversies by providing clearer protection for appraisers.
The Enterprises have taken additional actions. For example, Freddie Mac recently issued an alert to mortgage lenders advocating the use of qualified and experienced real estate appraisers, including those appraisers affiliated with a professional organization. This was similar to a Fannie Mae pronouncement. The Appraisal Institute termed this a victory for efforts to promote more professional appraisals and said it would "have a positive effect on millions of home buyers and sellers." The GSE guidances reinforce existing professional standards that appraisers must be familiar with the local market where the property is located and highlighted that appraisers must choose appropriate sales comparisons.
Addressing Misinformation
Misinformation has been circulated about the content of the Code and some have tried to cite the Code as the source of unrelated market dislocations. FHFA believes that the Code is serving the intended purpose and will continue its oversight role both as to the implementation of the Code by the Enterprises and its market impact.
Some key items that the public should know:
Communications with appraisers– Contrary to some suggestions, the Code provides for communications with appraisers about errors, additional needed information and unprofessional conduct. Quality control personnel may communicate with appraisers and other lender personnel, outside of the loan origination function. The real bar is on communications that seek to influence the appraiser to adopt a set valuation, which is prohibited.
Low appraisals— Contrary to some suggestions, the Code does not lead to lower appraisals for property. The Code insulates appraisers from pressures that led to higher or lower appraisals and should now lead to more accurate valuations. This is in everyone’s interest. Declining home prices began long before the deployment of the Code and relate to many other factors. Current efforts at mortgage market stabilization are a central focus at FHFA and the Enterprises, but that needs to be achieved by keeping borrowers in their homes, not urging appraisers to improperly overvalue homes.
Appraisal management company (AMC) role— Contrary to some suggestion, the Code does not favor the use of AMCs over independent or in-house appraisers. Significantly, for the first time, the Code places the same requirements for appraiser independence on AMCs as the limits placed on lenders. Lender use of AMCs was increasing prior to the Code and one of the key goals and results of the Code was to strengthen appraiser protections when engaged by AMCs.
Unqualified or out-of-area appraisers– The Uniform Standards of Professional Appraisal Practice (USPAP) requires that an appraiser be competent and knowledgeable of the local market to perform an appraisal. In addition, in reinforcing USPAP, the Enterprise appraisal guides require appraisers to have knowledge of the local market. The use of unqualified in-state or out-of-state appraisers, unfamiliar with local conditions, should be reported to state appraiser licensing agencies.
Increased costs at closing— Closing costs have risen in some instances, but that has not been a function of the Code. Lenders have tightened underwriting standards, often requiring additional comparables by appraisers and even requiring second appraisals. Market investors have focused on reducing fraud and sought greater assurances about valuations. Appraisers have been working hard to meet these requests.
Turnaround times for appraisals— The Code may initially have slowed appraisal time as it was being implemented. However, there are other reasons for turnaround time changes; these include increased demands by lenders, the efficiency of a particular lender’s underwriting process and the workload of appraisers. The Code’s appraiser independence standards are critical for accurate valuations, a lesson learned in the current market crisis. Assuring a good appraisal is in the borrower’s interest. As the market adjusts to new underwriting standards, including those for appraisals, more efficiency will reduce turnaround times.
Transferring an appraisal – Contrary to some suggestions, appraisals are transferrable between lenders under the Code. Transferring an appraisal may obviate the consumer’s need to pay for a new appraisal should the first lender deny the loan. Whether a lender decides to transfer or
accept an appraisal, however, is up to the lender, and is not related to the Code. Lender discretion in this area predated the Code.
* * * *
The Home Valuation Code of Conduct supports the critical role of appraisers and their central role in the underwriting process. Accurate appraisals, produced in line with industry standards and legal requirements, provide key protections for homeowners, the Enterprises and investors who support the markets. The poor practices of the past are being corrected and lessons learned are being addressed.
Burglar Proof Your Home
Easy Ways to Burglar Proof Your Home
Theft makes up more than three-quarters of all reported crime. According to U.S. Department of Justice, an American home is burglarized every 8 seconds. In the next two decades, it is estimated that three out of four American homes will be burglarized.
Burglars enter homes through the following locations:
81 percent enter through the first floor
34 percent of burglars enter through the front door
23 percent enter through a first-floor window
22 percent enter through the back door
9 percent enter through the garage
4 percent enter through the basement
4 percent enter through an unlocked entrance
2 percent enter through a storage area
· 2 percent enter anywhere on the second floor
Doors should be made of steel or solid-core wood construction. Hollow-core wood doors are more easily broken than heavy, solid-core doors.
Doors should be protected by quality deadbolt locks. Chain locks are not adequate substitutes for deadbolt locks, although chain locks may be used as additional protection.
If a door is equipped with glass panes, they should be installed far from the lock. Otherwise, burglars can smash the glass and reach through the door to unlock the door.
A peephole can be installed in doors so homeowners can see who is on their doorstep before they open the door.
Pet doors can be used by burglars to enter homes. Some burglars have reached through pet doors in order to unlock the door. It is advisable to not have a pet door, but if one is necessary, it should be as small as possible and installed far from the lock. Electronic pet doors are available that open only when the pet, equipped with a signaling device in their collar, approaches the door. These doors are designed to keep stray animals out of the home, and may provide protection against burglars, as well.
All windows should be composed of strong glass, such as laminated glass, and be in good operating order.
Sliding glass doors should be equipped with locks on their tops and bottoms. All windows should lock.
A cut-off broom handle, or a similar device, can be laid into the door track to prevent it from being opened.
Windows and doors should not be able to be lifted from their frames.
Lights should be installed on the exterior of all four sides of the house. Burglars prefer darkness so they cannot be seen by neighbors or passersby.
When building occupants are not home, a few lights should be left on.
It is helpful to install exterior lights that are activated by motion sensors. Burglars that are suddenly illuminated may flee.
· Suggest that someone is home by using electric timers to turn on the radio and house lights at certain hours. Vary the lights that you turn on.
· The lawn should be cut regularly. Uncut grass is a clue that no one is home.
When on vacation, tell a trusted friend where you'll be and how to reach you in an emergency. Ask them to pick up your mail and newspapers, hand bills, litter, packages, or anything else that would signal a burglar that you're not home.
Dogs are excellent burglar deterrents. If you cannot own dogs, place "beware of dog" signs around the yard for nearly the same effect.
Your garden can also be an attractive opportunity for thieves, and is often easier for them to access. Make sure you lock up valuables in a good quality shed - don't forget your garden tools and ladders as these can also be used to break in to homes.
Never leave your garage door opener in an unlocked car. To do so could give thieves access to your garage. If you have an attached garage, you could also be giving thieves access to your home.
Theft makes up more than three-quarters of all reported crime. According to U.S. Department of Justice, an American home is burglarized every 8 seconds. In the next two decades, it is estimated that three out of four American homes will be burglarized.
Burglars enter homes through the following locations:
81 percent enter through the first floor
34 percent of burglars enter through the front door
23 percent enter through a first-floor window
22 percent enter through the back door
9 percent enter through the garage
4 percent enter through the basement
4 percent enter through an unlocked entrance
2 percent enter through a storage area
· 2 percent enter anywhere on the second floor
Doors should be made of steel or solid-core wood construction. Hollow-core wood doors are more easily broken than heavy, solid-core doors.
Doors should be protected by quality deadbolt locks. Chain locks are not adequate substitutes for deadbolt locks, although chain locks may be used as additional protection.
If a door is equipped with glass panes, they should be installed far from the lock. Otherwise, burglars can smash the glass and reach through the door to unlock the door.
A peephole can be installed in doors so homeowners can see who is on their doorstep before they open the door.
Pet doors can be used by burglars to enter homes. Some burglars have reached through pet doors in order to unlock the door. It is advisable to not have a pet door, but if one is necessary, it should be as small as possible and installed far from the lock. Electronic pet doors are available that open only when the pet, equipped with a signaling device in their collar, approaches the door. These doors are designed to keep stray animals out of the home, and may provide protection against burglars, as well.
All windows should be composed of strong glass, such as laminated glass, and be in good operating order.
Sliding glass doors should be equipped with locks on their tops and bottoms. All windows should lock.
A cut-off broom handle, or a similar device, can be laid into the door track to prevent it from being opened.
Windows and doors should not be able to be lifted from their frames.
Lights should be installed on the exterior of all four sides of the house. Burglars prefer darkness so they cannot be seen by neighbors or passersby.
When building occupants are not home, a few lights should be left on.
It is helpful to install exterior lights that are activated by motion sensors. Burglars that are suddenly illuminated may flee.
· Suggest that someone is home by using electric timers to turn on the radio and house lights at certain hours. Vary the lights that you turn on.
· The lawn should be cut regularly. Uncut grass is a clue that no one is home.
When on vacation, tell a trusted friend where you'll be and how to reach you in an emergency. Ask them to pick up your mail and newspapers, hand bills, litter, packages, or anything else that would signal a burglar that you're not home.
Dogs are excellent burglar deterrents. If you cannot own dogs, place "beware of dog" signs around the yard for nearly the same effect.
Your garden can also be an attractive opportunity for thieves, and is often easier for them to access. Make sure you lock up valuables in a good quality shed - don't forget your garden tools and ladders as these can also be used to break in to homes.
Never leave your garage door opener in an unlocked car. To do so could give thieves access to your garage. If you have an attached garage, you could also be giving thieves access to your home.
GREAT News!!
The First Home buyer $8,000 tax credit has been extended UNTIL 12/31/09
(1st time home buyers or if you haven't bought a house in the last 3 yrs)
0 down programs
Prices are soft
NOW IS A GREAT TIME TO BUY AND SELL REAL ESTATE
(1st time home buyers or if you haven't bought a house in the last 3 yrs)
0 down programs
Prices are soft
NOW IS A GREAT TIME TO BUY AND SELL REAL ESTATE
Utah Housing
Did you know Utah Housing is one of the best loans for a first time home buyer?
Utah housing has fantastic rates for first time home buyers, They will also allow you to finance all of your closing costs and down payment. There are very few if any lenders that will allow you get a 100% loan. If you are in the market and you want to see if you quailfy for Utah Housing give me a call today!
Utah housing has fantastic rates for first time home buyers, They will also allow you to finance all of your closing costs and down payment. There are very few if any lenders that will allow you get a 100% loan. If you are in the market and you want to see if you quailfy for Utah Housing give me a call today!
Subscribe to:
Posts (Atom)