HR3915

From Mortgage News Daily:

Earlier this week, the House Financial Services Committee passed HR3915 out of committee to the full House of Representatives with a favorable vote of 45 to 19.

The vote, which came early Tuesday evening will need approval of the full House and then would need to be passed by the Senate and signed by the president before becoming law.

HR3915, which is strongly opposed by some segments of the lending community, sets minimum standards for loans including a reasonable assumption that the borrower will be able to repay the loan. It also mandates a mechanism for licensing mortgage brokers who are not appropriately regulated by the states or by agencies such as the Comptroller of the Currency. The bill also proposes liabilities for those who securitize potentially risky loans.

While the bill seeks to correct some of the longstanding practices that its sponsors feel have contributed to the current subprime situation, there is nothing in HR 3915 to address either fiscally or legislatively the current fallout from those practices.

The bill, if it does pass both houses of Congress, will undoubtedly see many changes before it is sent to the president for his signature.


Source: http://www.mortgagenewsdaily.com/1172007_HR3915.asp

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Win a FREE Mortgage Payment

I'm pleased to announce our next "Win a FREE Mortgage Payment" sweepstakes. The winner will have one free monthly mortgage payment (up to $2,000 value).
For details, visit www.charleyfarleyhomeloans.com.

Stay tuned for the winner of the sweepstakes ending today.

Sub-Prime Borrower? Have Some Plastic....

Yesterday's Boston Globe featured an article revealing that credit card companies have begun targeting subprime mortgage holders with new credit card offers! The "rationale" is that if homeowners can't refinance to get quick cash, then they'll use their credit cards instead.

As counter-intuitive as it sounds, credit card companies are quite fond of subprime mortgage holders who can't meet their monthly obligations, says the Globe. (This is because they're likely to make only the minimum payments on their bills, allowing the credit issuers to (hopefully)collect big interest fees.)

Read more here.

Landscaping: What to Look For

Buying a house? MSN shares some tips on what to look for when evaluating the landscaping:

• Plant health. Even if you're not a professional gardener, there are some tell-tale signs that a plant is sick. Wilting plants -- or brown and crispy leaves -- are warning signs. So are mushrooms and fungus at the bottom of a tree, as well as evidence of insect problems.
  
  
• Placement of tree limbs. Look to see if any limbs are touching a roof or could interfere with a power line -- both possible areas of concern. But be especially aware of a tree limb hanging over the chimney. Not only could animals climb down into the chimney, but a branch could block the draft and create higher carbon monoxide levels in the home.
  
  
• Problems underground. It's tougher to look for evidence of heavy root growth than it is to take a survey of the limbs above. But sometimes, roots will make their presence known by lifting or cracking a sidewalk or driveway, creating a trip hazard. Also, a depression in the yard could indicate a leaking sewer line caused by root interference.
  
  
• The lay of the land. Drive around the block and look at the ground on which the home is situated. Is it at the bottom of a hillside, at the top of one, or on flat land? It's important that rain isn't able to follow a downward slope toward the foundation (a condition that could lead to flooding).
  
  
• Foliage proximity. Watch out for foliage that is close to the house's exterior, because it can provide shelter for insects and rodents and gives them an excellent vantage point from which to enter the house. Also, if shrubs are too close to the building and the wind causes them to rub up against the house, the siding could wear out.
  
  
• Deck construction. Although a deck isn't a living part of the landscape, it's still an important one to inspect. The building of a deck is a common do-it-yourself project, and sometimes mistakes can be found in the final product. Make sure that the deck is fastened to the house correctly and is supported properly. It should have places for people to grab onto,and balusters should be close enough that a 4-inch ball couldn't fit through them (ensuring that a child's head couldn't get stuck).
  

Can You Get a Rebate on Your Next Home Purchase?

This past Sunday's Boston Globe included an article on how online agents are using rebates compete against traditional commission-based real estate brokers.

Savings to the consumer can be substantial, but there are tradeoffs. What's more, some states bar the practice of rebates, says the Globe, on the grounds they could be misused as kickbacks.

As you might expect, establishment brokers question whether a rebate really is in a customer's best interest. For instance, an agent may not be able to negotiate a lower commission or may reduce the level of service they provide because they owe the rebate company 35% of their commission. Then there are those who feel that the whole practice of hawking rebates is "undignified".

Online agents, on the other hand, counter that customers can have it both ways -- good purchase prices and money back in the form of a rebate.

Don't expect this debate to be resolved any time soon....

Sellers: Create a Child-Friendly Home

Quicken Loans shares these suggestions for making your home more attractive to buyers with small children:

• Cabinet locks. Install in areas where potentially dangerous items are stored (such as under the kitchen sink cabinet).



• Appliance locking straps. These easy-to-install items prevent kids from opening ovens, dishwashers and toilets.



• Fireplace gate. Fire = hot = ouch! Need we say more?



• Smoke detectors. Install one near every bedroom and in common areas throughout the house. (Consider adding a carbon monoxide detector, as well.)



• Electrical outlet covers. This inexpensive and easy fix can help potential buyers visualize their child playing or living in your home.



• Curtain/blinds cord cleats. Eliminate a potential choking hazard by installing next to windows and using them to wrap the cords.

10 Tips For Selling Your Home More Quickly

1. Get a local broker.

2. Read the sale agreement and make sure you understand what's in it.

3. Know the marketplace. Recorded sale prices frequently don't tell the whole story. Area real estate professionals know the innards of recent transactions and are in a good position to provide negotiating advice.

4. Know your terms. Rather than a given price, it's best to think of a home as a package of price and terms. For instance, in a slow market it may be better to pay a "seller contribution" to help buyers off-set closing costs than to lower the sale price.

5. Reduce deposit requirements.

6. Throw in additional items, such as washer/dryer, etc.

7. Update MLS photos to match the current season.

8. Review the marketing plan. Is it being followed? Does it need to change?

9. Visit open houses for other properties. What are other sellers offering?

10. Don't sweat the small stuff, if a buyer is interested. It costs a lot more to locate another buyer.

Source: Realty Times

Making the Most of Your Rewards Points

SmartMoney shares strategies for racking up (and spending) credit card points:

Pay off your balance. The more you spend on interest, the less your points or miles -- and eventual rewards -- are worth.

Be loyal. The more credit cards you're using, the fewer points you'll accumulate on each. (The exceptions: Citibank and American Express, which combine points from several credit cards into one account.)

Avoid annual fees. In rare cases, credit cards that carry an annual fee can boost the value of your rewards. But for most consumers, it's just an added cost that eats away at their value.

Save up. Resist the urge to spend your points as soon as you rack them up. Issuers tier their programs -- the more points you have, the sweeter the reward.

Seek out point promotions. If you're earning just one point or mile per $1 spent, you're really missing out. Look to your credit card statement and your issuer's Web site for bonus-points offers.

Mortgage Troubles Even for "Good" Risks

From the New York Times: Countrywide Financial said Monday that more borrowers with good credit were falling behind on their loans and that the housing market might not begin recovering until 2009 because of a decline in house prices that goes beyond anything experienced in decades.

__________________________________________________________

Having trouble making your adjustable-rate loan payments? You may be able to refinance to a fixed-rate loan at more favorable terms than you're paying right now. Contact Charley Farley at Compass Mortgage at (603) 472-2272 for details.

Your First Down Payment

USA Today reports on the unusual measures to which some home buyers are resorting, in order to purchase their first home.

Cautions the article:

The tighter mortgage market is not only shutting out borrowers with weak, or subprime, credit ratings. It's also putting pressure on first-time borrowers, who sometimes share financial characteristics with subprime borrowers: meager savings, a new job and a brief credit history (which, in effect, is equal to a poor credit history). They also may have relatively large debts, such as a car loan or student loans, which can reduce the amount that a mortgage lender will give them.

Unlike the people featured in the article, you don't have to go to work in Baghdad, cash out your 401K, or move back in with your parents to get the money to purchase a property. Compass Mortgage offers a number of no-money-down programs. Call us today at (603) 472-2272 or visit www.CharleyFarleyHomeLoans.com.

Source: USA Today

Declutter your life

The curiously-named productivity blog "Dumb Little Man" claims:

Devote a little of your time to tossing clutter from your life, and keeping things relatively clutter-free, and you'll be rewarded with much more pleasing living spaces, with a less stressful life, and with better organization and productivity.

Read more here.

Home Buying Incentives

Below are six common incentives that home sellers are using to attract buyers, according to MarketWatch:

1. Reducing the price

2. Paying points

3. Down-payment assistance

4. Help with closing costs

5. Adding a home warranty

6. Small, personalized incentives

Top Places to Live: Almost #1!

Hanover, NH was ranked second in Money Magazine's annual ranking of top areas to live.

According to the magazine:

The world-class teaching hospital Dartmouth-Hitchcock Medical Center (just a stone's throw away in Lebanon), a smattering of environmental engineering and mid-size technology firms and, of course, Dartmouth itself all attract the cosmopolitan crowd. Add a downtown dotted with locally owned shops and restaurants and a fully stocked grocery cooperative, throw in a myriad of year-round activities sponsored by the college or the town, and it's easy to see why people love it here.

Time to Move Up?

Move-up buyers are finding that the real estate market is very advantageous these days. (This is because smaller, existing homes are holding their resale value, while newer, larger homes are being heavily discounted.)

Get pre-qualified for your next home at www.charleyfarleyhomeloans.com

Identity Protection and Your Computer

For many people, a computer is not only a productivity tool, but also a point of vulnerability. Here's how to stay safe:

• Install anti-virus, anti-spyware and firewall protection, and keep them up to date.
  
  
• Don't open e-mails from strangers. (Malware can be hidden in embedded attachments and graphics files.)
  
  
• Don't open attachments unless you know who sent them and what they contain.
  
  
• Configure Windows so that the file extensions of known file types are not hidden. ***Never open executable attachments.***
  
  
• Don't click on pop-ups. Also, configure Windows (or your Web browser) to block them.
  
  
• Don't provide your credit card number online unless you are making a purchase from a Web site you trust.
  
  
• Keep an eye on the URL on the top of your browser every time you enter a new page. (Reputable sites will always direct you to a secure page with an URL starting with "https://" whenever you actually make purchases or are asked to provide confidential information.)
  
  
• Use strong passwords: at least six characters, including at least one symbol and number, and no reference to your name or other personal information. Use a different password for every site that requires one, and change passwords regularly.
  
  
• Never send a user name, password, or other confidential information via e-mail.
  
  
• Consider turning off your computer when you're not using it (or at least putting it in standby mode).
  
  
• Don't keep passwords, tax returns, and other financial information on your hard drive.
  

Source: MSN

Protecting Yourself from Identity Fraud, Part I

Protecting your identity is key to building and maintaining good credit.

MSN offers these tips on how to do just that:

• Keep your confidential information private. Your bank or credit card company won't call or e-mail to ask for your account information. They already have it.



• Keep an inventory of everything in your wallet and your PDA, including account numbers. Don't keep your Social Security card in your wallet.



• Stop getting banking and credit card information in the mail.



• Monitor your bank and credit card transactions for unauthorized use. Crooks with your account numbers usually start small to see if you'll notice.



• If you conduct business online, use your own computer. A public computer is less secure, as is wireless Internet.



• Look for suspicious devices and don't let anyone stand nearby when you use an ATM. Take your card and receipt with you. Keep your PIN in your head, not your wallet.



• Don't store credit card numbers and other financial information on your cell phone.

Next time, we'll look at more ways on protecting your computer from vulnerability...

2007 Housing Forecast: Harvard's Take

The Harvard Joint Center for Housing Studies recently released its annual State of the Nation's Housing report for 2007. Although it states that the longer-term outlook for housing is (more) upbeat, it adds that the length and depth of the current correction will depend on:

• employment growth
  
• interest rates
  
• credit availability, and
  
• the speed with which builders pare down excess supply.
  

The report also predicts that home prices will soften further as they follow the downturn in home sales and starts. This means that homes will stay on the market for longer periods, and that motivated sellers, builders, and investors will reduce prices.
One bright note, says the Harvard analysts: no matter how long it takes, the market will eventually recover.

Source: Mortgage News Daily

Timing: The Key to Finding Your Dream NH Home

Home buyers have many concerns and hesitations when deciding to purchase a property. (Not surprising when you consider that a home purchase is, for many people, the largest single investment they'll ever make.)

Among the apprehensions are:

• Have I looked long enough to understand the local market and the range of housing options available?
  
• Could there be another, even better listing on the market, perhaps at a better price?
  
• Will an upcoming listing be more appealing?
  
• Should I wait and see what else might come along, or should I go for it?
  

The Internet is a great tool to quickly get you up to speed about the local market. Also, ask your agent to provide you with a list of similar listings that sold within the last six months or one year. (This will help you determine how often listings like the one you're considering become available and whether you should move forward quickly with an offer.)

Be sure to get pre-approved, so you know exactly how much house you can afford.

Don't pass up a good listing because you don't think you know enough to make an informed decision. Do your homework and be ready to act when you see your dream home.

Source: Inman News

When's the Right Time to Buy?

According to Money Magazine, it's when the market is starting to improve.

Signs to look for, says the magazine, are:

• declining inventory (preferably under 6.5 months of inventory on hand)
  
• houses selling faster
  
• Realtors opinions of local market conditions growing more favorable, and
  
• signs that sellers are less desperate (fewer incentives, homes selling closer to asking price, etc.)
  

But regardless of the economy, says Realty Times, the best time to buy is when you are ready:

• You've found the home you really want
  
• It's affordable
  
• You can get a reasonable home loan
  
• The home will serve you and your family for years to come.
  
• You're not looking for perfection. (No home is perfect.)
  
• You've given up trying to "beat" the market.
  
• You're comfortable with your compromises (location, size, price, features, or condition)
  
• You're confident that the home you selected is desirable enough that you will be able to sell it in any market.