Come join Woodstock's Premier Networking Group for a Night of Pure Networking!!!
Our event in April was attended by over 100 professionals; this is a huge opportunity to let others know more about you and your business.
This is your night....capture the moment; grow your business!!
This event is open to all professions!
Attire is business casual, we will be outside so shorts are OK if you prefer.
See link for details and to RSVP
HVCC as most of us know has caused a lot of headaches ecspecially to well qualifed appraisers that were being undercut by inexpericned money hungry appraisers. Example.....an appraiser with 20 years experience would typically charge 350-395 for an FHA appraisal in Atlanta; then the AMC (Appraisal Management Company) would tack on 125.00 to this fee driving the consumers cost up.When these fees were challenged the AMC's decided to have inexperienced appraisers register with them and keep the costs at 400.00 and only pay the appraiser 250.00-275.00.....driving the well qualified appraisers either out of business or grossly under paid for thier work.
Well this is about to end....and it is long overdue in my opinion.
Financial Reform Bill Kills HVCC; Helps Appraisers
By Dennis Norman, on July 16th, 2010
Dennis Norman
Yesterday, President Obama signed into law H.R. 4173, the Wall Street Reform and Consumer Protection Act which is the most comprehensive reform to the banking industry since the Great Depression. This is a very comprehensive bill and I’m not sure even the Congressmen that passed it know everything that is in it, so I’m certainly not going to even pretend to know that much about the bill, but the one thing I do know is the Home Valuation Code of Conduct (HVCC) is dead.
It’s been a while since I have written about HVCC but to refresh everyone’s memory HVCC is something has wreaked havoc with home buyers, REALTORS and appraisers. HVCC, which went into effect on May 1, 2009, has caused issues and confusion in the real estate industry and among professionals in the industry. Killing HVCC will be, in my opinion, be a positive thing for the real estate market.
I see credit everyday and I hear stories daily how someone was given very bad advise by so called "experts" on how to build or rebuild their credit. I am one that does not pretend to be something I am not....and I am not a credit expert, I am an expert at determing if someone can actually qualify for a mortgage loan based on credit but it stops there for me.
I found the article below and thought it could be helpful to some.
Payment history and total debt are important parts of the mystery mix -- but not the only factors.
In the land of credit scores, the FICO
score is king.
The bulk of banks in the United States (FICO's website claims 90 of the 100 "largest financial institutions") use FICO scores to decide whether to offer credit to potential borrowers and at what interest rates. FICO has a major global presence as well: According to the company's testimony before a House Financial Services panel, FICO scores are used in about 10 billion decisions worldwide each year.
So how does FICO, or Fair Isaac, come up with its widely used score?
Although the inner workings of the FICO scoring system are a closely guarded secret, the company is open about the general components of a FICO credit score. Using the information in a borrower's credit report, FICO breaks that information into five categories. Each of those five components is weighted differently.
"FICO scores give the most attention to how you have paid back lenders in the past and how much you are using of the credit available to you, as shown on your credit report," FICO spokesman Craig Watts says. "Those two factors contribute roughly two-thirds of a typical person's FICO score
The 5 elements of a FICO score
1. Payment history: 35% of a FICO score is based on a borrower's payment history, making the repayment of past debt the most important factor in calculating a credit score. According to FICO, past long-term behavior is used to forecast future long-term behavior.
FICO keeps an eye on both revolving loans, like credit cards, and installment loans, such as mortgages or student loans. Although the weight of each loan varies among individuals, FICO indicates that defaulting on a larger installment loan, such as a mortgage, will damage a credit score more severely than defaulting on a credit card payment or another smaller revolving loan. One of the best ways for borrowers to improve their credit scores is by making consistent, timely payments.
2. Amount of debt: 30% of a FICO score is based on a borrower's total outstanding debt. Revolving lines of credit, which allow a consumer to borrow as much or as little as desired up to a limit, are more heavily weighted. This is opposed to installment loans in which a set amount -- say, a $20,000 loan for a car -- is determined at the outset.
Because FICO views borrowers who habitually max out credit cards, or even get very close to their credit limits, as people who cannot handle debt responsibly, a borrower should maintain low credit card balances. Experts recommend that the amount owed should not exceed 30% of the individual's credit limits. That 30% rule of thumb applies to each individual credit card as well as the overall level of debt.
The final components of a FICO credit score get less weight in the score's calculation. "The remaining one-third of your score is determined by how long you have managed credit, to what degree you have pursued new credit recently and the variety of credit types you have successfully handled," Watts says.
3. Length of credit history: 15% of a FICO score is based on the length of time each account has been open and the length of time since the account's most recent action. As a result, it is impossible for a person who is new to credit to have a perfect credit score. A longer credit history provides more information and offers a better picture of long-term financial behavior. Therefore, to improve their credit scores, individuals without histories should begin using credit, and those with credit should maintain long-standing accounts.
4 and 5. New lines of credit and a credit mix: Each makes up 10% of a FICO score. Borrowers, even those new to credit, should avoid opening too many credit lines at the same time, because such behavior could suggest that they are in financial trouble and need significant access to credit. FICO suggests that borrowers take on additional credit only when they must have it or when it makes sense financially. Credit mix, meanwhile, is a somewhat vague category. But experts say repaying a variety of debt -- such as credit cards, student loans and a mortgage -- indicates a borrower can handle all sorts of credit. According to FICO, historical data indicate that borrowers with a good mix of revolving credit and installment loans generally represent less risk for lenders.
Knowing the various weights given to components of a FICO credit score give borrowers a better idea where to focus their attention. "So, to get a good score, you mostly need a credit history with no reported late payments, as well as low reported balances currently on any credit cards," Watts says.
This article was reported by Jeremy M. Simon for CreditCards.com.
www.jaywhitelendingservices.com
I close loans in 7-10 business days
Downpayment assistance was very popular for years and then as we all know came to a skreetching halt. Since then bond programs have picked up the slack for first time home buyers. What about the home buyers who have owned a home before and could use DPA, is there anything for those clients? Now there is...clients who buy in Cherokee County can qualify for up to 7500 in DPA.
Contact me for more details.
www.jaywhitelendingservices.com
I close loans in 7-10 business days!
Hud has asked for public opinion on affiliated businesses that may violate RESPA. I for one and pleased that HUD is hearing what is really happening in the mortgage market:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-118
In Georgia we use Attorney's vs. Title companies and it is common for sellers, especially on foreclosures, to "require" buyers to use the attorney of their choice or, in some cases, the seller will not pay closing costs or the seller will flat out turn down the offer. Georgia is a attorney preference state, per Georgia Fair Lending Act, meaning the buyer has the right to choose their attorney. If you are in the market and looking at foreclosures you need to inquire about the closing attorneys fees, the sellers attorney fees are typically significantly higher than one you would choose.
I close mortgage loans in 7-10 business days
13,366,815.05 closed loan volume in 2010 97.6% Submit to Close ratio 92.3% Submit to Close in 14 business days Georgia Loan Officer of the Year 2010
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