FHA's proposed rule changes were published in today's Federal Register regarding lender eligibility and net worth requirements.

In addition FHA published a new mortgagee letter, ML 2009-50 and announced the 2010 FHA loan limits.

There are 5 things everyone needs to know about the proposed changes to lender FHA elegibility:

1. If accepted, changes will take effect January 1, 2010
   
   
2. FHA proposes to no longer approve mortgage brokers/correspondent lenders for participation in FHA programs.
   
   
3. Sponsoring Lenders must assume responsibility for any mortgage broker/correspondent lender they do business with.
   
   
4. Sponsoring lenders assume full liability for the loans they accept from mortgage brokers/correspondent lenders.
   
5. Net worth requirements for FHA lenders will be increased from $250,000 to 2.5 million dollars.
   

You can read the entire Mortgagee Letter ML 2009-50 here: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Most Utah loan limits remained the same, in particular Utah County loan limits remained at 323,750.

If I can help you with your financial needs feel free to call me, or visit my website at www.wfhm.com/david-doerr2 and fill out an application for a home mortgage.

So, you are paying your mortgage... what can this "bailout" do for you?

Last week, Secretary Henry Paulson announced that the Federal Reserve Bank was going to purchase a large amount of Mortgage Backed Securities(MBS) to inject some much needed liquidity and capital to the banks holding these bundles of notes. The impact was felt immediately on the mortgage market, rates for fixed rate mortgages plummeted on the injection of dollars into the system, dropping the 30 fixed rate by as much as 1%. Just today Chairman Bernanke re-iterated this today in his speech before a group of business leaders in Austin, Texas which caused an initial knee jerk reaction and sent the pricing of MBS skyrocketing and causing the effective yields (interest rates) to fall.

It is time to do a mortgage check up, see where you stand and see if these lower rates can help you refinance, purchase a new home, or even an investment property.

According to the Milken Institute Provo-Orem has been rated the #1 Metro area for job growth in the entire USA.  That is great, the economy here is slowing just like it is all around the US, but it is nice to see that Provo/Orem is still creating jobs and having people move into the area.  Provo-Orem is followed by Raleigh-Cary, NC (follow the link to read about it from my friend Tracy), Salt Lake City, UT, Austin-Roundrock, TX, with Huntsville, AL rounding out the top 5. 

Utah has 2 of the top 5 places people are moving to to look for jobs in the country, and I am excited by the possibilities. With the continued job growth, the real-estate market is beginning to pick up, and homes are being sold. Right now rates are tremendous, and are expected to get better in the next few months.  If you are thinking about moving to Utah, please give me a call before you talk to a Real Estate Agent, being pre-approved for a loan now is more important than ever, since credit standards are tight, it is better to know exactly what you need to do to buy the home of your dreams rather than waste a lot of your time looking at things you cannot qualify for. 

Contact me and let me submit your loan for a no cost pre-approval.