Andy Burton

It appears President Barack Obama will be signing the new tax credit extension into law on Friday November 6th, 2009. Below is information on the new law:

• The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers.
• The new tax credits will be available from December 1, 2009 to April 30, 2010.
• The tax credit will sunset on April 30, 2010, but as long as you have a binding contract by that date, you will still qualify to complete the transaction within 60 days.
• Move-up buyers are eligible, as long as the home they're leaving has been used as their principal residence for 5 years or more.
• Income limits for both first-time home buyers and move-up buyers would be $125,000 for individuals and $225,000 for married couples.
• The home being purchased may not cost $800,000. (The tax credit is structured that you will get 10 percent of the purchase price up to $8,000 for first-time buyers and $6,500 for trade-up buyers, but if you're buying a $1 million house, you're ineligible to get a tax credit.)
• For purchases made in 2010, taxpayers can claim the tax credit on their 2009 income tax return.
• Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
• The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011 to claim the home buyer tax credit.

Contact me with any of your home financing questions in Minnesota or Wisconsin!

Andy Burton- Mortgage Advisor

Back by Popular Demand!!

"Working Together to Create a Successful Real Estate Transaction"

Having difficulty navigating clients through today's changing lending environment? Come learn how to protect your business through legislative changes:

•· HVCC- Home Value Code of Conduct- Appraisal issues

•· MDIA- Mortgage Disclosure Improvement Act- timelines?

•· Regulation Z - Truth in Lending-

•· RESPA reform- what changes January 1^st??

•· Products and Programs- What's New? What's Changed?

•· Communication throughout the process

•· Creating a Successful Closing

•· Q & A Session

Date: October 14^th 2009

5:30-7:00 P.M.

Location: Hudson Golf Club

201 Carmicheal Rd

Hudson, WI 54016

Seating is limited please rsvp by October 12^th to:

andy@andyburtongroup.com or (651) 501-0960 Ext 4

The New Mortgage Disclosure Improvement Act (MDIA) starts tomorrow, what does this mean for your business and your clients? This Act will drastically change the landscape of timely closing so PLEASE read on!

Continue to read below or watch this video for a no nonsense explanation of this new disclosure law: http://www.thinkbigworksmall.com/mypage/player/tbws/12733/1110605 This is a great site to be a memebr of if you already aren't!

As part of the 2008 Housing and Economic Recovery Act (HERA), The federal reserve has published final amendments to regulation Z (Truth in Lending Disclosure-TIL) and A.P.R (Annual Percentage rate) to implement the requirements of the Mortgage Disclosure Improvement Act. While these changes were meant to protect the consumer with good intentions it will definitely cause last minute delays in closings as the final numbers can change from the original good faith estimate triggering the lender to re-disclose the A.P.R. and wait the required period to close.

The MDIA covers primary residences and second home application taken on or after July 30^th, 2009. How will this affect your future clients closings?

•· There is now a minimum 7 day waiting period after the application and the early T.I.L. disclosure is provided before the loan can close. No more closings in less than 7 business days from application! Sundays and specified federal holidays do not count as a business day.

•· If there are any changes to loan terms or costs, and the A.P.R. changes more than the .125% tolerance a new T.I.L .must be re-disclosed and there is a mandatory 3 day (6 days if mailed, 3 days if signed by borrower) waiting period to close the loan. I predict this is where we will see most of the problems and cause closings to be delayed.

•· No fees can be charged to the borrower, with the exception of the credit report any sooner than 3 business days after the T.I.L. is disclosed.

Advisors Mortgage has already begun implementing the new MDIA rules and have been compliant with all Regulation Z rules previously, upfront disclosing and redisclosing the T.I.L., so this should be a fairly seamless transition for us. I wanted to inform you upfront, that if terms change in a loan transaction the closing could be delayed for up to three days depending on the allowed time from closing. So be aware as other lenders are transitioning to these new laws there will be increased amounts of delayed closings and make sure you give adequate time in your purchase agreements.

Now more than ever it is important to be working with competent mortgage lender that understands the rules and are compliant with today's new federal laws. When working with Advisors Mortgage and The Andy Burton Group you can be confident we will get the job done, disclose in advance, and tackle all of your clients challenges up front!

Many have asked questions on the old tax credit vs the new one recently approved last week (2/19/009). Below is a simple chart that breaks out the differences for you!

Contact Andy Burton Mortgage Advisor with questions:

Direct (715) 760-0259

Office: (651) 501-0960

Email: Andy@andyburtongroup.com

Web: www.AndyBurtonGroup.com