FHA ANNOUNCED CHANGES TODAY

New rules for FHA borrowers

Policy changes include:

• Raising the up-front mortgage insurance premium: The premium will rise to 2.25 percent from its current 1.75 percent.  HUD is expected to release a Mortgagee Letter on Jan. 21 making the premium increase effective in the spring.
  
  
• Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program.  New borrowers with less than a 580 FICO score will be required to put down at least 10 percent.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.
  
  
• Reduce allowable seller concessions:  The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.

Accusations of Short Sale Fraud - CNBC

Below is a link to an article about alleged short sale fraud being committed by some banks. As you can see, the allegation is that when holding a second deed of trust against a property, the banks are asking for extra money "on the side," meaning off the HUD-1 and without the knowledge of the first lien holder. Of course, this is exactly what I have been talking about and warning warning my clients against.


I enjoy keeping you informed and on the cutting edge when discussing your real estate needs with others. Please call or email me if you have any questions or wish to discuss this topic further, 949.922.8148.

Big Banks Accused of Short Sale Fraud - CNBC

Prudential News

Prudential Newport Beach has maintained the market share from Oct 1, 2008 - Sept 30, 2009 in Newport Beach for sold homes price at $1 million-plus!

C.A.R. Headlines

Beyond the Headlines _01.14.10

2010 is here!

Dear Friends, Family & Clients,

We have begun a new year, and with it, new opportunities.  Like you, I’m looking forward to meeting the challenges encountered and exceeding any expectations!

I would like to thank all who sought real estate advice and assistance from me during 2009.  It was a year full of positive changes in my career, and I have been happy to have your support throughout that time.

It’s heartening to see encouraging signs in both the general economy and the real estate market in California. California most often is ahead of the nation in market recovery. Our California median home price increased in November for the first time since August 2007. Throughout 2010, we expect the statewide median home price to rise about 3.3 percent with a slight decrease in sales. It looks like the worst is behind us, and we can move forward with confidence that the market is slowly coming back.

  

I hope to see or speak with as many of you as possible this year. Whatever the challenges are for meeting in person, we can talk on the phone, or chat online. You have my best wishes as we begin our 2010 year.

Sincerely,

Nicole McFadden

949.922.8148

nicole@nicolemcfadden.com