Alert: Reduced FHA Insurance Premiums Repealed

HUD SUSPENDS MIP REDUCTION

The Department of Housing and Urban Development (HUD) announced today that the recent Reduction of Mortgage Insurance Premiums (MIP), outlined in FHA Letter 2017-01 were suspended.

According to posted information from Housing Wire, the letter stated that a subsequent Mortgagee Letter will be issued at a later date should this suspension or policy change.

“FHA is commited to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,..”
as stated in the letter this afternoon.

Please see this link to read the full article, but know that CHM is committed to you and your borrowers and with this suspension of policy, there will be some loans that will need correcting in respect to compliance.

Please contact us today should you have questions.

Don Parsons
Mortgage Advisor
(949) 428-3099
dparsons@commercemtg.com

How Appraisers Figure “Price Per Square Foot”

home-blueI recently read an article where an appraiser talked about how he figured “price per square foot.” He said it has become a common practice to take the selling price and divide it by the gross living area which has, in some areas, become the basis for establishing the listing price of a home.

However, it’s not as simple as that.

Appraisers also rely on an index provider called “Marshall & Swift” (MarshallSwift.com), which provides various cost estimates for different types of properties. When appraisers figure a price-per-square-foot estimate, they take the following into consideration.

  • Superior/inferior features as compared to other properties
  • Dissimilar amenities
  • One-story home versus two or more stories
  • Length of time on the market
  • Seller concessions
  • Size of the land
  • Location of the home (i.e., view, utility easements, corner lot)
  • Seller motivation to sell (i.e., foreclosure, short sale)

There are many stories out there of buyers backing out of contracts because the square foot price of the home on the listing agreement (or verbal communication) did not match the appraiser’s estimate. So, when a buyer asks you the question, “What’s the square foot price?” you can say…“It depends upon….”

Mortgage Market Weekly Update – Jun 10, 2013

In This Issue

Last Week in Review: The Jobs Report for May was released, plus more good news in the housing sector.

Forecast for the Week: Look for Retail Sales, Consumer Sentiment and inflation data at the end of the week.

View: Be smart about using your smart phone with the important tips below.

Last Week in Review

“You ain’t a beauty, but hey you’re alright.” Those lyrics from the Bruce Springsteen song Thunder Road are a good description for the May Jobs Report. Read on to learn why.

may-job-creations_2013-06-07On Friday, the Labor Department reported that 175,000 new jobs were created in May, above the 159,000 expected, while the unemployment rate rose to 7.6 percent from 7.5 percent. The increase in the unemployment rate was due to more job seekers entering the labor force.

The Jobs Report also showed that the Labor Force Participation Rate (LFPR) ticked up to 63.4 percent from the thirty-five year low of 63.3 percent. The LFPR calculation is quite simple. If you are 16 years old and not in the military, then you either have a job or you don’t. The ratio of people “participating” or working is then compared to the total population. [Read more…]

OC Register Reports Orange County has Quickest Home Sales

From the Orange County Register Business Section:

May-OC_quickest-homesales

Home Prices on the Rise

More positive news from the housing sector, CoreLogic reported yesterday that home prices rose 0.7% from December to January and surged nearly 10% compared to a year ago. The 10% increase was the largest yearly since April of 2006 and was the 11th monthly increase in a row.

fea_chart_030713