Hammonton, NJ

In the past, a consumer with a FICO score of 620 was considered to be a low-risk borrower by Fannie Mae and Freddie Mac. Not anymore. After suffering major losses in the mortgage market last year, the nation's two largest mortgage finance lenders have redefined risk, announcing new Loan-Level Price Adjustments (LLPAs) for borrowers with FICO scores below 720.

LLPAs are automatic, cumulative fees based on credit scores and the loan-to-value, and they can significantly increase the cost of credit. These fees have nothing to do with your mortgage company or its various products and cannot be negotiated away.

Let's take a look at the impact that LLPA's have on conforming loans.

The state of New Jersey is revising its plan to build a new office in Hammonton, New Jersey. The state Economic Development Authority reworked the conceptual plans for the project and presented them to the state Treasury Department for its review.

A timetable for how long the Treasury Department review will take, as well as details about the extent of the changes to the project were not available. The first proposed building would be approximately 72,000 square feet located at 11TH St. and S. Egg Harbor Rd.

State officials estimated the building would have some 250 employees and would allow the state to close smaller offices that are located in Folson, Bellmawr, Egg Harbor Township, and Northfield. The town and state have yet to have further discussions on the acquisition and replacement costs for the town's highway garage, which is situated within the site plan for the state building.

Here in ATLANTIC COUNTY is a striking difference between North Jersey & SOUTH JERSEY in the amount of undeveloped land. This September Atlantic County acquired enough open space to reach an annual total of 1,000 acres for the third time in the last four years. In September 63 acres of HAMMONTON farmland was purchased through America's Farmland Preservation Program, New Jersey State Agricultural Committee and the Atlantic County Open Trust Fund.

Landowners who take part in the Farmland Preservation Program agree to sell the development rights to their land but maintain ownership and the ability to continue to farm the land.

Perhaps the most impressive item to the Preservation Program is that we will be able to enjoy the woods, the pinelands and wetlands and appreciate all that New Jersey Pinelands has to offer.

I received a call today from a customer I had not heard from in 8 months. He had contacted me originally about helping his dad buy a home. The last few times I had called him in February he did not return my calls, so I moved on.

Today he calls me out of the blue. He wants to know if his dad still qualifies for 100% financing and what the rate would be now that the Fed cut rates yesterday. First, I had to explain about the death of 100% financing. Second, I had to explain that even though the Fed cut rates, mortgage rates actually went up.

I'd already had the second part of this conversation several times this morning. Then my curiosity made me ask why he called now. Was it because of the announced Fed rate cut? His answer proved my point to what I have been saying about the media.

The customer said he called because he was driving down the road and saw a Realtor showing a house. Then the thought entered his mind that maybe they could buy a house now. You see, he has been watching the news and the debates. He did not think people could still get a mortgage to buy a home. His perception was that things are so much worse than they actually are.

So, for all those who watch the news and the presidential debates, yes banks are still lending money. In fact, October is shaping up to be my best month of the year. House prices are down. Home inventory is huge. Rates are still near historic lows. Give me a call and stop watching the news.