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The once hyped sub-prime mortgage market has been replaced by a sub prime appraisal system.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.