Florida Mortgage : Learning Center

Legislation has finally been introduced calling for an 18 month moratorium on the Home Value Code of Conduct, HVCC.  Many homeowners or would-be home buyers, seeking a Florida mortgage, have incurred much higher appraisal costs from appraisers with very little experience or knowledge of the local area.

Since the HVCC began on May 1st we have seen Florida home buyers order an appraisal from a newly licensed appraiser who depends on a trainee, to research comparables in counties so far away that competency becomes a question.  Then when the appraisal comes in so far under value (on purchase contracts) buyers order independent appraisals form local experienced appraisers.  And finally

The HR 3044 doesn’t stop the HVCC issue from forcing lenders to use inexperienced and distant appraisers but should give consumers and mortgage professionals enough time to contact members of Congress to remove the  HVCC completely.

I am all for sound unbiased residential appraisals.  But when the HVCC allows appraisal management companies to bid out the jobs something is wrong.  If a consumer pay $400- $500 for an appraisal that used to cost $300; and the appraisal management company then hands the job to the lowest bidder - you get a cheap, worthless appraisal.  All at the consumers expense.  Not fair Cuomo! 

We need to allow our local professional career minded appraisers to have their jobs back and do their jobs.  

When news spread about revising the residential appraisal process over a year ago, I was not too concerned.  The word on the street was mortgage originators everywhere would not be able to directly order appraisals or even speak to an appraiser.  I thought, who cares, that’s one less thing I have to worry about.  Right?  Wrong!

The once hyped sub-prime mortgage market has been replaced by a sub prime appraisal system.  Florida home buyers are having to cancel contracts, or order 2 or 3 appraisals for Fannie Mae conventional Florida mortgages.   Under the HVCC, appraisers are not experienced and not competent to perform appraisals which are usually 3 or 4 counties away.

The appraisal process under the new HVCC, home valuation code of conduct, has negative consumer affects.  Appraisals are now order through a 3rd party appraisal management company, or AMC.   AMC’s simply take consumer money for appraisals and then choose an appraiser based on the lowest bid!  Many experienced local appraisers are now being replaced by inexperienced, distant appraisers who are crippling our already  damaged housing market.

And since Mortgage Orignators and Realtors, working with our new home buyers cannot communicate directly with the appriaser, we are left to email AMC’s  who by the way are overloaded with thousands of email disputes and phone message complaints.  What to do? 

Please take 4 minutes and view this video provided by the people of TBWS: 

https://www.thinkbigworksmall.com:443/public/showArchiveVideo/1/4909

And afterwards sign the petition at www.HVCCPetition.com and help us get the mortgage markets back on track.   Thank you, Stephen 

When Florida first time home buyers call our office they usually have no idea where to begin.  They finally got the nerve to make the call and  soon realize they are not too sure of the steps in securing some sort of Florida mortgage.  What types are best for them?  How much money should we have already saved?  Do we qualify; are we  worthy?  What to do…

First time home buyers are dependent on the Florida Mortgage Professional for answers.  This includes detail explanation of available mortgage programs and their advantages or disadvantages.  I call this communication “verbal disclosure”.  Simply put, our first time buyers and all other mortgage seekers know mortgage program details before they receive written disclosures. 

It is our job to ensure every home buyer, first time or not, knows what they are getting into.  By the way, a special thanks to all of the mortgage knuckle-heads who never put client needs first.  Thanks to you slackers, Obama will announce details of the newly created Consumer Financial Protection Agency which is aimed at providing clear consumer disclosure.  I just hope this doesn’t amount to additional written disclosures - there are too many already.

If you are in the market of purchasing your first Florida home, call our office, 888.399.0520, for upfront explantion, disclosure and written good faith estimates.  Happy house hunting…

Everywhere we turn it seems everything is going up, up and away.  Unemployment is up to it’s 26 year high of 9.4%.  Gasoline prices have and continue to rise.  Even fixed interest rates for Florida mortgages have steadily increased over the past 2 weeks, with no slow down expected.  Bad news?  Consider this…

The good news is people will still continue to purchase new homes especially since the price for that new home is at all time lows, practically.  There are great savings to be found when searching for your Florida dream home.  Whether you’re seeking an FHA first time home buyer loan, a VA Home Loan, or a conventional mortgage, there are always mortgage options out there to discover.

If you, your Florida Realtor, or someone you know needs an experienced Florida mortgage professional; call our office at 888.399.0520 or contact us via email.  Interest rates aren’t going to stay low forever.

Remember when shopping online for your next Florida mortgage; there are basic necessities each Florida home owner or first time buyer require to make sound mortgage loan decisions.  One of these is reviewing your upfront Good Faith Estimate.

Everyone in the banking and mortgage industry knows consumer focus is always on one thing, the interest rate.  Interest rate is very important, however, so are the costs associated with obtaining that interest rate.  Costs are what separates the upfront Florida mortgage professional from the small print con artists.  Well, that may be a little rough, but my point is simple. 

Florida mortgage prfoessionals will provide upfront Good Faith Estimates for you to compare with others while shopping online for your new Florida mortgage.  Interest rates must be compared only when you have written upfront Good Faith Estimates to review.  If  4.75% sounds like a great 30 year fixed rate; wouldn’t you like to know how much you are being charged for that rate?  Get it in writing! 

And remember when you are reviewing a Good Faith Estimate with discount points; always ask what the interest rate would be without paying discount points.  If you need someone to review your Good Faith Estimate; feel free to contact your local Florida Mortgage  Professional.  If you have a great rate at low costs, he or she will let you know.  Get it in writing - always.

What does air in your tires have to do with the Florida mortgage arena?  Last week we finally decided to pull into a local automotive shop and have a professional look into why the steering is tight making left and right turns.  I was already expecting the usual news of having to spend several hundreds of dollars to repair and correct the problem.  I was surprised…

Our specialist, Bob, of Triangle Auto in Merritt Island, explained that all the car needed was to put more air in the front tires.  That’s it.  He did that and didn’t charge us a dime!  Honesty and integrity - what a concept!.  They have earned my trust, my future business and any referrals I can send them.  The same holds true in our Florida mortgage industry.

There are many occasions where it does not make sense for a homeowner to refinance their current Florida mortgage loan.  Even though fixed mortgage rates are at all time lows; please talk to a trusted Florida mortgage professional before jumping into refinancing just to lower the interest rate.  It has to make sense.

Thinking about refinancing your Florida mortgage?  Call your trusted Florida mortgage professional and who knows…  He or she may tell you to just put air in your tires. 

As a Florida first time home buyer down little or no down payment options are frequently requested.  Florida mortgage programs available to any qualified first time home buyer are prevalent.  Consider the following mortgage loan avenues:

Inquire about an FHA home loan.  The down payments are as little as 3.5% of the purchase amount.  Part or all of the down payment can be a gift form a relative.  And an FHA mortgage allows more flexibility with less than perfect credit scores.

Veterans should ask for VA home loan details.  Veterans looking to purchase their first home in Florida can purchase without no down payment at all!.  There is no monthly private mortgage insurance requirement and no prepayment penalty.  Also, sellers can contribute up to 4% of the purchase price towards the Veterans closing costs.  Veterans seeking to purchase a larger and more expensive home should inquire about a Florida VA Jumbo home loan.

Another option is the USDA home loan.  This program is available with no down payment, however, is geographically limited in availability.  Ask your Florida mortgage professional to review areas you are looking to purchase and you too may take advantage of this great program.  If sellers wont contribute towards buyers costs, this program allows you to roll them into the loan amount. 

All of the Florida first time program listed above do require income, asset and credit approval.  Make sure you gather this information together and call your Florida mortgage professional today to see how you can purchase your first home here in Florida.

Most first time home buyers desire lower down payment, if any, Florida mortgage programs.  So the first thing we ask here at BeechTree Mortgage, is if the home buyer is a US Veteran.  If so, they win with the best first time home buyer program around.

Veterans seeking to purchase their first Florida home should take advantage of their VA Entitlement as it allows them borrow up to $417,000 without having to use savings towards any down payment.  There is no prepayment penalty of course; and “sellers” can contribute up  to 4% towards the Veterans closing costs and prepaid interest or escrows.  This can save Florida home buying Veterans even more when obtaining their Florida VA mortgage.

The bonus feature with a Florida VA home loan is that there is no monthly private mortgage insurance; keeping the monthly payment lower than other programs.  To see if you qualify for a VA home loan, call our office at 888.399.0520 and ask for one of our experienced VA Florida Mortgage Professionals.  Get your upfront VA Good Faith Estimate and see just how low our fixed interest rates are for qualified Veteran first time home buyers.

Want to know how large banks get punished for their wrong-doing in the mortgage loan arena?  They don’t.  What happens is new mortgage related laws are created to punish mortgage brokers; not the banks!  Take for example the investigation results from November of 2007.

After learning several emails evidenced appraisers were being pressured by a bank to inflate their appraised values on homes; New York Attorney General Andrew Cuomo arranged an agreement between Fannie Mae, Freddie Mac and OFHEO (Office of Federal Housing Enterprise Oversight); called the Home Valuation Code of Conduct or the HVCC.  In fact, these specific appraisal firms were not only pressured but knew what they were doing and merely wanted to secure future business with the largest savings and loan bank (at the time) in history. The HVCC’s  purpose was to reduce apparent bank-appraisal fraud and reduce undue pressures that this particular bank put on it’s appraisers. 

But this new HVCC agreement affects only mortgage brokers, not banks!  No longer is a mortgage broker allowed to speak with appraisers let alone order them when working with conventional Fannie Mae and Freddie mac type mortgage loans.  Thanks; makes perfect sense…

A bank committed the crime and laws were created to tie the hands of professional mortgage brokers? 

Going forward, we Florida mortgage professionals will have begin to process our client files and allow the Lender to order the appraisal.  Banks will still get to order their client appraisals.  My thoughts are clear on what our future holds for us Florida mortgage professionals…  Bring it on…

By the way, that bank eventually went out of business and was purchased by yet another big bank.

I believe help has finally arrived thanks to our federal government’s Home Affordable Refinance program.  The goal is to assist Florida home owner’s who have demonstrated an acceptable payment history on their mortgage loan; but due to declining home values, have been unable to refinance and lower their monthly payments or move to a more stable fixed mortgage home loan. 

It is the Fannie Mae Refi Plus program…  Simply put, it allows homeowners to borrow up to 105% of their current home value; which may help thousands who have experienced equity loss due to neighboring foreclosures.  This refinance opportunity is available only to homeowners who currently have an existing Fannie Mae, conventional, mortgage loan.  

• Step one:  Find out if your current Florida mortgage is a Fannie Mae loan, visit Fannie Mae’s Loan Look-Up.
• Step two:  Call or email your favorite Florida Mortgage Professional or one of ours at 888.399.0520
• Step three:  Ask for an upfront Good Faith Estimate to reflect new interest rate and closing costs.