The final rules take effect on October 1 and registration as early as January 28, 2011.
The rules are part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, also called the S.A.F.E. Act. Mortgage loan originators will have to be fingerprinted and sign up to a central registry to do business in future, according to final rules issued on Wednesday by the Federal Reserve and other regulators.
Each day this week major banks reported profits beating the estimates and their cash to loan reserves are approaching all time highs. But today, Ben Bernanke said the outlook for the economy is “unusually uncertain.” This message is for Ben, “by loaning money to the big banks at close to zero percent interest, they will continue to report ‘record profits’, while not loaning or working to resolve the foreclosure problem.” Ben, the facts are clear: Banks now own more the 2 million vacant properties and unemployment is close to 10%. Maybe a program for investors to buy those properties and hire people to fix up might help.
The Federal programs ‘Cash for Clunkers’ and the ‘First time homebuyer credit’ gave money from the Fed directly to the consumer and both of those programs were an immediate success. Giving money to big banks now for two years has produced very little. Ben, when are you going to wake up?
Fair Isaac Corporation, the company that pioneered the development of the FICO score, keeps track of trends in the scores, here is the latest year over year comparison:
When your buyer goes to their mortgage company for their loan, this is the first information they get before moving forward. You should know the buyers score and receive a pre-approval letter prior to negotiating a contract.
Check your FICO Score Here for Free!
Â
Mortgage company Freddie Mac said today the average rate for 30-year fixed loans dropped to 4.57 percent. That’s down from the previous record of 4.58 percent set last week and the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s, when most long-term home loans lasted just 20 or 25 years.
WASHINGTON — President Barack Obama signed Friday morning a three-month extension on the deadline for home buyers to obtain a federal home-buyer tax credit of up to $8,000.
Buyers now have until Sept. 30 to close on a home sale to be eligible for the credit. The closing deadline was originally June 30. To be eligible, buyers need a contract that was in place by April 30.
232,959 Foreclosed Homes sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions according to RealtyTrac Inc.
Over 1 million are currently for sale and another 1 million foreclosed properties will come on the market this year. The important fact that the bank and government doesn’t get, the average family is not the buyer of these properties, it is investors. The investor buys, then spends money on material and labor to improve the property, hopefully to get the value back to normal. Yes, for their efforts, investment and risk, there is a profit. Encouraging this process helps in the following ways:
1. Raises the value of properties in the neighborhood, which reduces further foreclosures
2. Improves the economy by spending money on materials and labor.
3. Improves the Federal Budget by collecting more income tax
4. Reduces the unemployment rate
5. Reduces bank liablilities
6. Reduces inventory of vacant properties for sale