One Year Later

The Federal Reserve has continued to monitor for improvement in the market and the economy to warrant an easing of the restrictions on the amount banks can charge banks for money, ie how much they can charge for lending money to home owners and potential home owners as well as how much market funds and investments can make on their investments.  Recent improvements although slow and cautious are beginning to reach a point where rates are really expected to go up and when they do, buying power for home owners will decrease more than most young buyers realize.  But the word is out and there are currently more buyers and sellers working to move this Fall and get settled before the rates rise affecting how much buyers can buy.  Happy Moving and Happy Veterans Day 2015.

This is a great article from CNN Money!

_____________________________________________________________________________________________

NEW YORK (CNNMoney)

The Federal Reserve announced the end of its bond-buying program Wednesday, marking the close of a six-year effort to stimulate the economy.

The decision reflects how much the economy has improved since the recession. It's akin to taking the training wheels off of a child's bike. The Fed's announcement was overall positive, says Dan Greenhaus, chief strategist at market research firm BTIG in New York. "It's in response to the Fed acknowledging the improvement in the economy, the improvement in the labor market and the diminished risks on the inflation side of things," says Greenhaus.

The 12 members of the central bank's committee also voted to keep its key interest rate near zero. This means people with savings in the bank get little to no interest, but the low interest rates spur people and businesses to spend and invest.

When will interest rates rise? In its statement today, the Fed kept in the closely watched statement that it will maintain interest rates at the current low rates "for a considerable time." The Fed has given indications that it will likely raise the interest rate in 2015. Rates will likely rise by next March, says Paul Ashworth, chief economist at research firm Capital Economics.

"We still believe that the Fed will begin to raise rates sooner than generally expected," Ashworth wrote in a note. He added that the Fed's relatively optimistic language about inflation and the labor market was a "hawkish," or positive, move. Many economists and traders expect the Fed to begin raising rates in the summer of 2015.

The bank started its bond program, known as quantitative easing or "QE", in November 2008 to aid the economy and the crippled housing market. It became the flagship program of former Fed Chairman Ben Bernanke's term in office.

Improving economy: The economy has come a long way in six years. The unemployment rate is now 5.9%, its lowest mark since QE began. There are over 8.5 million more people employed now than in November 2008, according to the Bureau of Labor Statistics. In the announcement Wednesday, the Fed said the job market is improving. "On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing," the statement read. Current Fed Chairwoman Janet Yellen has often cited her concerns this year about the sluggish job market, but it appears the Fed's views have shifted somewhat. The Fed also wants inflation to stay consistently above 2%, which it has not since the Fed lowered interest rates.

The total number of housing starts, an important measure of the health of the real estate market, has almost doubled since its low point shortly after QE began, according to the Census Bureau. The Dow Jones Industrial Average was down around 20 points just before the Fed's announcement. The Dow dropped further after the statement came out to around 70 points down. With the economy still on the mend, there are many arguments for and against the Fed's historic policy decision to buy bonds.

"We're going to be debating the efficacy of the quantitative easing programs for the next 100 years," says Greenhaus. "Its legacy is undetermined because the war isn't over." ___________________________________________________________________________________________________________________________________________

Quick look at rates, compliments of Mark Peay, SunTrust Mortgage:

30 Year Fixed Conventional rate at 3.875-4.25% (30day lock and qualifying credit, LTV)

FHA & VA 30 Year Fixed rate 3.375-3.625% (30day lock and qualifying credit, LTV)

Jumbo 30 Year Fixed rate 3.75-4.125% (30day lock and qualifying credit, LTV, income & assets)

Doctor Loan 30 Year Fixed rates 4.375-4.625% (30day lock and qualifying credit, LTV)

MARKET Watch for our region.

Check out how the market measures up around here in recent months and years:

http://www.rbintel.com/marketwatch-videos  

Provided by RBI Intel.

Best wishes,

Linda

Tips for paying DOWN Your Mortgage!

The following RISMEDIA video explains something you should know to save money over the life of the loan on your home purchase:

http://rismedia.com/2014-10-08/video-how-to-pay-down-your-mortgage-faster/  

I did several of these things myself and shaved years off my mortgage and saved many thousands of dollars in interest. Easy and fairly painless.  Plan to save money, too!

Have a GREAT October!

Best wishes,
Linda

Pillar To Post Advice on Radon

September 15, 2014

DETECTING AND ADDRESSING RADON CONTAMINATION IN THE HOME

Many homeowners are concerned about the possible presence of radon gas in their homes – and with good reason. The US Environmental Protection Agency reports that radon is the second leading cause of lung cancer in the US after smoking. Due to these concerns, more and more home buyers are considering radon detection to be a “must” when they are considering a particular property.

WHAT IS THE SOURCE OF RADON?

Radon is a naturally-occurring odorless, colorless, radioactive element that is formed by the ongoing decay of uranium in soil, rocks, sediments, and even well or ground water. While radon that escapes into the atmosphere is not harmful, dangerously high concentrations can build up indoors, exposing occupants to possible health risks.

HOW RADON ENTERS THE HOME

Radon gas can migrate into the home in several ways. Openings or cracks in basement walls or floors are common avenues.  Sumps, basement drains, and spaces between gas or water fittings can also allow radon into the structure. Elevated levels of radon can even be found in new homes.

HOW CAN HOME BUYERS FIND OUT ABOUT RADON IN A HOME THEY ARE CONSIDERING?

Many home inspectors will conduct radon inspections, usually as an add-on service to a standard inspection. The inspector will set up the testing equipment and report on the results once the proper measurement procedure is complete. It is important to realize that radon levels in any particular home can vary widely, even over the course of a few days. If an elevated level of radon is detected, steps can be taken to lessen the concentration inside the home.

REDUCING THE LEVELS OF RADON IN THE HOME

The EPA names several different radon reduction methods, including ventilation and installing a radon ventilation system that vents the gas above the roof. Sealing cracks in the foundation can increase the effectiveness of ventilation systems, but has not been shown to adequately reduce radon levels on its own. Professional mitigation services can provide recommendations for a home’s specific conditions.

Simple tips for making your home more energy efficient

Most common

You might assume that making your home energy efficient requires a lot of time and money, but generally that's not the case. Often small fixes can have a big impact on your heating, cooling, and other utility bills. Here are some easy things you can do to make your home more efficient right now: Tip #1: Don't turn that dial Keep your thermostat set at one temperature and leave it! In the winter around 68 degrees should be right, and 75 degrees in summer (in homes with a cooling system, of course). Avoiding constant adjustments will keep your energy bills stable. Tip #2: Stop the drip-drips Leaky shower heads and faucets are hard-to-miss energy wasters. Toilets that run can also cost you on your water bill. The majority of required repairs are covered in the most basic do-it-yourself handbook. Tip #3: Go fluorescent While compact fluorescent light bulbs cost more than the standard incandescent bulbs that you're used to, they last up to five times longer and use only a quarter of the electricity. Many of these bulbs last over five years, and each energy-saving fluorescent bulb will save you $40 to $60 on your electric bill over the course of its lifetime. Tip #4: Watch that fireplace Energy can really leak out of that fireplace. Check the dampers and screens to make sure that energy isn't leaking when the fireplace is not in use. If the fireplace is just for decoration, cover the chimney. A well maintained fireplace should be an economical way to heat your house and add a warm atmosphere as well. Tip #5: Keep those appliances humming Clean air conditioning and furnace filters frequently, and have your appliances inspected once a year. Efficient appliances lower energy bills and future repair costs. Tip #6: Windows that waste Windows are the most common energy waster. Make sure that all the weather-stripping is in good condition, and consider double-paned windows and storm shutters to reduce the energy drain. Hopefully these ideas help you create a more energy efficient home. Energy efficiency is not only an important part of conservation; it's also a great way to save money. More homeowners tips are available on my website. If you have any questions about your home, I'm only a phone call away.

Increase in Homeowner Equity Slight Over last year, but moving in the right Direction->

By Michael Fenner, Wednesday, 1 October 2014 - 9:29am

New analysis from CoreLogic shows that nearly 950,000 homes returned to positive equity in the second quarter of this year. Nationwide, borrower equity increased by approximately $1 trillion in the second quarter compared to a year earlier.
However, 10.7 percent of all residential properties with a mortgage (5.3 million homes), were still in negative equity in Q2, but that total is down from 12.7 percent (6.3 million homes) in the first quarter and 14.9 percent (7.2 million homes) in in Q2 2013, the report says.
“The increase in borrower equity of $1 trillion from a year earlier is evidence that things are moving solidly in the right direction,” says Sam Khater, deputy chief economist for CoreLogic. “Borrower equity is important because home equity constitutes borrowers’ largest investment segment and, as a result, is driving forward the rise in wealth for the typical homeowner.”

January 2014 Maryland Suburbs MarketWatch

Current Rate Conditions - 10 February 2014

Forwarded exclusively by:	KATHY MALONE Corridor Mortgage Group Office: 410-499-2900 Email: kmalone@corridormtg.com website: www.kathymalone.com NMLS#: 287748
Monday, February 10, 2014
Why does the Non-Farm Payroll report affect mortgage rates? On Friday, the Non-Farm Payroll report came in much weaker than expected (134k new jobs vs the estimates of 185k), and helped stabilize mortgage rates once again.  Have you ever wondered why a single report could have such a huge effect? The non-farm payroll figure (a.k.a. NFP) represents the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry. The farming industry is not included because its seasonal hiring distorts employment numbers around harvest time. Non-farm payroll is an important day trading indicator because it affects all markets; the job market impacts the FX, bonds, stocks, and derivatives markets. From a basic economic sense, when the NFP shows an increase in jobs it means the economy is doing well. An increase in employment means that companies are growing, and a secondary benefit is that the newly hired workers will have more money to spend on goods and services. A decrease means that the opposite is true. NFP and the overall job market have become key indicators for traders and that is reflected in the market’s sensitivity to the non-farm payroll report. The report includes the unemployment rate, what sectors have increased or decreased their workforce, what the average hourly earnings are, and any revisions that need to be made to prior reports. So why does it help mortgage rates?  To put it very simply, a poor report highlights the lack of economic growth.  Lack of economic growth is good for bonds, including MBS (mortgage-backed securities), the key driver to mortgage rates.  So when a report comes in showing weakness, like Friday's did, traders are more likely to buy bonds including MBS which helps mortgage rates. The question now is how long will the effect last?  Likely not long, as this week has lots of economic data for traders to digest.  Be sure to stay in contact with your mortgage professional above to monitor mortgage rates through the week.   Last Week's Mortgage Rate Recap Mortgage Rates Currently Trending: Slightly Higher Last week saw rates slightly higher at the end of the week after starting the week off with a strong rally on Monday.  Rates deteriorated through the week, and finally stopped worsening on Friday with the release of the weaker than expected jobs report (Non-Farm Payroll Report).          This Week's Mortgage Rate Forecast Mortgage Rates Forecast: NEUTRAL This week we are starting off with no economic data on Monday, but interest events through the rest of the week.  The biggest event will be Janet Yellen's first testimony as the Fed Chair, followed by the 10 year Treasury auction.  The biggest report of the week will be Thursday's Retail Sales report.  BOTTOM LINE:  Work closely with your Mortgage Loan Professional to monitor the market in real time to stay ahead of a reversal and the worse rates that will come with it.    RateAlert’s Most Trusted Mortgage Lending Professionals:  Loan Professions that subscribe to RateAlert Executive services have the training and market knowledge at their fingertips, along with live trading data during market hours to expertly help navigate the difficult and often times confusing process of understanding rate movements and which factors may cause volatility when considering whether or not to lock.  If you’d like to learn more about what things to consider when timing the market in an effort to obtain the best interest rates, don’t hesitate to contact the person who sent you this commentary. This commentary has been sent to you by the Mortgage Loan Originator (MLO) above because they thought you may find it interesting or helpful. The views and opinions offered do not necessarily represent the views of your MLO. Please contact them with any questions or to find out more about the information listed herein and how to work with them
Maryland For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Pets in the Mix: From Petrifying to Purrfect - 1/2014

Real Estate Advisor: January 2014
	Pets in the Mix: From Petrifying to Purrfect A beautiful cat or friendly dog might be just the thing for you and your family. As members of the household, pets have a place in your home and your heart. But what about pets and all that go with them when you are buying or selling a home? In the case of a large investment such as buying or selling a property, addressing the topic of pets during this transaction is worthy of some sniffing out. True animal lovers often have homes that are especially welcoming to animals and people alike. Homes that are set back from roads or traffic, or are close to dog parks or walking trails might have special appeal. Horse-properties are often fenced, have pasture land or barns, and storage for feed. Whether or not you have pets, if you are selling a property with these facets, you might have a winning angle for the right buyer. While real estate agents can promote these features, they want to do so without having to overcome pet odor and damage issues. Unfortunately, there are also homes where pets “rule the roost” and the home is less appealing to people. When proper care is not taken, or the number of animals in the home outpaces the owner’s ability to adequately care for them, smells and other issues can become serious problems in the selling process. Evaluating a home with regard to pets unlocks features and flaws in a home. The ability to open windows or gain access through a back door to a fenced yard or to a pet enclosure is not only useful for pets and people, but can be important in examining temperature, traffic, and utility of a potential home. Odors may indicate issues with airflow, potentially giving clues about heating and/or cooling. When allergens are present in the air, air conditioning can help take them out of circulation, making a home with central air conditioning very desirable. In short, most homes will be primarily evaluated for people, so do the work beforehand to make your home people-friendly and as pet-neutral as possible. Most importantly, the homeowner should minimize the obvious signs of pets: food bowls and toys, scent, fur, feces, scratch-marks, carpet stains, and/or damage from digging or chewing. While it hardly seems fair, significant value may be lost if the home is perceived to be occupied or potentially damaged by animals – pets or wild ones. Not only is it important to rectify any issues that might be in the home presently, but during the duration of the showing and sale of a property; all pet matters must be kept in check. As a general rule, keep in mind that while people often love pets, they don’t always love yours. Barking dogs, cats that shed excessively, and animals that could cause harm are deterrents to the welcoming feel most people desire when they come to see a property. Additionally, “pet furniture” can detract from a home, or make it memorable in ways that are not conducive to a sale. Instead, remove that well-worn chair or cat tree that presents an “in-your-face” distraction from more positive aspects of the home itself. Consider “doggy daycare” or boarding your pet elsewhere if there is concern that the presence of a pet could detract from the viewing experience. Always alert the showing agent of the presence of a pet. Ensure that there are arrangements in place for animals that require special attention, and keep up on pet chores that enhance the home’s appeal. While it might be unrealistic to get every hair, work to minimize attention to it by vacuuming often and removing potentially offensive items like well-worn pet beds and blankets during showings. Have your pet bathed and groomed frequently during this time period to reduce pet odors and ensure that all shots, ID tags, and licenses are up-to-date in the event of an accidental release. Similarly, if you are seeking a property that is especially free of allergens, or inversely, especially good for a certain pet – real estate agents know what to look for. Be sure to check out laundry rooms, basements and garages as these are common places where pets may spend lots of time, and could provide useful clues regarding the successes and failures of a pet’s presence in a home. There are key chores that must be accomplished by the homeowner prior to selling it, if a pet has been present: Check for outside damage to landscape, porches, decks and lawn. Ensure that holes are filled, scratched or chewed wood are fixed, fences are in good repair and painted when appropriate, and that plants don’t show evidence of pets. If a pet scratches to come in, repair any marks on the front and back door or screens. Nothing can fix a bad first impression. Moving indoors, check for scratches, chewing, and paint damage that come from pets walking, rubbing, or otherwise using the home. Paint, clean or repairs items as needed. Removal of furniture that reveals the presence of animals should be considered. Stained carpets should be professionally cleaned or removed, as pet “accidents” can be absorbed into carpet pad and odors remain. Again, check doors, molding or areas where grime, hair, scratching or chewing appears. Consider this “detailing” your home as you would a car. Clean air ducts and filters in the home’s HVAC system to ensure that odors are not being circulated throughout the home and that it is working properly, free of pet hair. Pet odors are the biggest offense, and must be removed; this might require the replacing of flooring or sheet rock in some cases. Professionally cleaning concrete floors in garages or basements that have housed pets is a great idea to remove odors. In cases where rodents have damaged insulation in crawl spaces, replacement may be necessary. When pets are in the mix and a home is for sale, it is essential to consider a pet’s happiness, safety, and effect that they might have on people viewing the home. Creative solutions can be difficult to come by. Few people have the luxury of obtaining a new home prior to selling their residence and removing pets entirely from the home that is for sale. If a pet absolutely cannot be removed from the home, consider crate-training, which might also aid in the relocation process in the future, or limiting a pet to a confined space. No question about it – selling or buying a home with pets in mind adds a dimension to the process. Paying attention to these details can seem overwhelming, but the value of a home depends on it. Purrfectly so.

What is the Homestead Credit? I believe the deadline was extended again.....

What is the Homestead Credit?

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence. Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit. Make sure the county is giving you proper credit…it could save you hundreds of dollars!

DECEMBER 31, 2013 was the deadline for filing your Application for Homestead Tax Credit, again. It does not matter whether you have owned your house one year or twenty years or if you are already receiving the credit. An application must be filed. The deadline has been changing for years. If your application is already on file and approved, you DO NOT need to reapply. It hardly matters when home prices rise slowly or have been declining but as the home values are now rising, it would be wise to check and see if you have been approved.  This only applies to homeowner occupied properties and does not apply to all types of homes.  You won't know unless you apply.  What you get a tax savings when prices spike so your taxes rise more gradually on a yearly basis.

How do I know if I need to apply?

It only takes a minute to check to see if you have filed and if you are approved. Follow these steps:

1)      Click on this link: http://sdatcert3.resiusa.org/rp_rewrite/

2)      Select your County

3)      Enter your street number and street name - do not include Street, Court, Drive, etc.

4)      Look at the bottom of the page and see if your Homestead application was filed. If it was filed, the entry will show the date your application was approved.

5)      IF IT SAYS “NO APPLICATION” click on this link for the application: http://www.dat.state.md.us/sdatweb/homestead_application.pdf

Also, even after you have filed and been approved, you may not receive a credit on your tax bill. The credits only appear when the assessed value of the property has increased over the allowable limits each year. With declining assessment values, you may not actually receive a dollar credit each year.

Want to learn more?

To learn more about the Homestead tax credit, click this link http://www.dat.state.md.us/sdatweb/homestead.html or reply to this email with your questions!

Please be sure to share this information with your friends and family members that own a primary residence in Maryland!!

Free advanced search tools for home buyers

Search for Properties using my updated RE/MAX website:  http://www.lkangrga.remaxagent.com/ .

(If you are currently in the market for a home, you will find my website an excellent resource. The site is continually updated with new and valuable information to aid in your decision making process.)

The search feature allows you to filter thousands of listings based on attributes that you select. You can simply search for houses in a certain area and price range, or you can look for houses that fit your specific style. If you know you want a brick house with gas heat and a garage, you can get the results you're looking for. Most real estate websites don't offer that degree of choice.

By signing up with the Property Research Center, which is free, you have access to features that will help you find and organize the listings that best fit your needs:

• Saved Searches allow you to preserve your searches for reference at a later time. You can easily maintain lists of properties that match your criteria without having to re-enter any information, and there is no limit to the number of searches you can save.
• The Favorites Folder allows you to save the individual listings that you find appealing. You can save favorites from different searches into sub-folders, giving you the power to organize your favorite listings however you see fit. This is a great way to put in order those specific listings that interest you most. Again, you may save as many favorites as you wish.
• With the New Listing Notification service, you can be updated via e-mail as to new listings that match the criteria of any saved search. There is no need to check back for updates to your searches. All you have to do is decide whether you want daily, weekly, or bi-weekly notifications of the most recent listings.

I always strive to make the home-buying process as smooth as possible. With the Property Research Center you have the tools at your fingertips that can get you started in the right direction. Please do not hesitate to contact me with any questions, I would love to be of assistance. Again, thank you for your interest. I look forward to hearing from you.

Best wishes,
Linda

Happy New Year!

Dear All,

I hope all of your holidays have been uplifting and include some warm memories to reflect on over the cold months to come.  Winter has just started but the days are already beginning to get longer and the human mind can turn to thoughts of the Spring and Summer markets. I am busy working to make this year even better than last.  2013 was a wonderful year for me. There were many successes, but always a few losses. I have family and friends who have lost loved ones and some who have met with new health challenges, but I am thankful for the journey and those who share in it with me.  If you or anyone you know is thinking of moving this year, please contact me.  I would love to be part of the equation.

All the best in 2014!

        Linda Kangrga

Text or call: 410-262-2254
LindaKangrga@mdcrs.com

Market Update Video - Nice Stats!

http://www.youtube.com/watch?feature=player_embedded&v=_eYISnJ2   oxs Click on link to enjoy the show!

What is the Homestead Credit?

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence. Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit. Make sure the county is giving you proper credit…it could save you hundreds of dollars!

DECEMBER 31, 2013 is the deadline for filing your Application for Homestead Tax Credit. It does not matter whether you have owned your house one year or twenty years or if you are already receiving the credit. An application must be filed by the end of the calendar year. If your application is already on file and approved, you DO NOT need to reapply.

Every year since it's inception, the deadline has been extended. This is never guaranteed. When you sell a personal residence, the savings may come due. The point of the legislation was to limit the hardship of increased property taxes on homeowners when property values rise dramatically.  

How do I know if I need to apply?

It only takes a minute to check to see if you have filed and if you are approved. Follow these steps:

1)      Click on this link: http://sdatcert3.resiusa.org/rp_rewrite/

2)      Select your County

3)      Enter your street number and street name - do not include Street, Court, Drive, etc.

4)      Look at the bottom of the page and see if your Homestead application was filed. If it was filed, the entry will show the date your application was approved.

5)      IF IT SAYS “NO APPLICATION” click on this link for the application: http://www.dat.state.md.us/sdatweb/homestead_application.pdf

Also, even after you have filed and been approved, you may not receive a credit on your tax bill. The credits only appear when the assessed value of the property has increased over the allowable limits each year. With declining assessment values, you may not actually receive a dollar credit each year.

Want to learn more?

To learn more about the Homestead tax credit, click this link http://www.dat.state.md.us/sdatweb/homestead.html or reply to this email with your questions!

Please be sure to share this information with your friends and family members that own a primary residence in Maryland!!

(Most of this article provided by: 

Laura Fournier | Mortgage Specialist |Equity Resources, Inc. |NMLS #198293

15752-B Crabbs Branch Way| Rockville, MD  20855| (Phone 301-674-7716 |ÊFax 240-912-9060 | *Email LFournier@callequity.net )

CoreLogic National Foreclosure Report

CoreLogic® Reports 51,000 Completed Foreclosures in September

Fewer Than 2.1 Million Residential Mortgages, or 5.2 Percent, Are Seriously Delinquent The Serious Delinquency Rate Is at the Lowest Level Since December 2008 The Foreclosure Inventory Is Down 24 Percent Year to Date

FORECLOSURE INVENTORY SERIOUSLY DELINQUENT MORTGAGES 33% 26.2% YEAR ENDING SEPTEMBER 2013 YEAR ENDING SEPTEMBER 2013

October Update

Well, the market slowed during the shutdown. I have compared notes with other real estate agents and lenders.  Basically people stopped looking at homes for the duration of the government shutdown. Not one showing was scheduled on my current listing although people attended the open houses I held during that time. For those already under contract, nerves were frayed worrying about possible delays.  One settlement was affected in an unusual way.  The Buyers were cash buyers and they were buying a vacant condo.  They selected the Columbus Day federal holiday for the settlement date because having been furloughed this year, they wanted to avoid missing additional work. The title company was open, the seller and her agent were agreeable so we had settlement on the federal holiday.

Interest rates have dipped below 4% again this week after rising close to 5% or more depending on the type of loan and buyers' credit scores.  Lenders tell me that young buyers are conditioned to expect these rates now. While they are this low it is obviously cheaper to own than to rent.

Have a great Fall!

Best wishes,
Linda

FHA INFO #13-6 Government Shutdown Q & A's

FHA INFO #13-63

Distribution Date: October 4, 2013

As a result of the government shutdown, FHA Single Family has received several questions regarding our operating plans which we have clarified in the following Q&As.  These Q&As have been added to the Frequently Asked Questions database accessible through the FHA Resource Center.

We greatly regret the inconvenience that this shutdown has caused, but hope the following is helpful during this time.

Q:  Can I get an FHA case number?

A:  Yes. Lenders will be able to obtain an FHA case number from the FHA Connection.

Q:  Will FHA endorse single family loans during a shutdown?

A:  FHA will be able to endorse single family loans, with the exception of Home Equity Conversion Mortgages (HECM) and Title I loans, during the shutdown. A limited number of FHA staff will be available to endorse new loans. Due to limited staff, the time to endorse the cases may be extended.

Q:  Will FHA still be able to endorse my loan if I am not able to obtain tax returns verified by the IRS during the shutdown?

A:  FHA is aware that some lenders obtain tax transcripts directly from the IRS for use in underwriting their FHA-insured loans.  These lenders may be unable to actually obtain any returns directly from the IRS for the duration of the Government shutdown. 

Lenders may continue originating loans using FHA’s existing underwriting requirements, which have not changed as a result of the shutdown.  Lenders are required to obtain tax returns from certain borrowers in order to originate FHA-insured loans and lenders must also continue to obtain the borrower’s signed authorization (i.e., Forms IRS 4506, IRS 8821, or whatever form or electronic retrieval service is appropriate) for any loan for which the borrower's tax returns are required. 

Q:  Why didn’t the borrower’s name and Social Security Number pass validation with the Social Security Administration?

A:  When the lender requests the FHA case number, the borrower’s name, date of birth and Social Security Number (SSN) and property address are entered into FHA Connection (FHAC).  If the overnight matching process with Social Security Administrations (SSA) fails, a Case Warning for SSN Validation will be placed on the case number.  The failure could occur because the data doesn’t match or because the system went offline due to the government shutdown.  SSA has limited tolerance for minor mistakes in names, birth dates and social security numbers, so lenders are reminded of the importance for accuracy in these three data elements when requesting a case number. 

Q:  Can the Social Security Number validation be run again?

A:  Lenders do have the opportunity to make the necessary corrections and a second attempt to validate with SSA will occur.  Any changes made to the borrower's name, birth date and SSN at any time prior to insurance endorsement will trigger a validation request with SSA.  If the revised data passes validation, the Case Warning for SSN Validation will be removed. 

If the failure was caused by the government shutdown, the Case Warning for SSN Validation will not be able to be removed until the government reopens.  FHA will ensure that the validation process takes place and lenders will be advised of the results in FHAC as soon as possible upon the reopening of the government.

Q:  Can I continue to process the loan without the Social Security Number validation?

A:  Lenders may continue processing loans without receiving validation of the borrower’s name and SSN, but FHA will not endorse loans without this validation.  For the Lender Insurance program, lenders will not be able to insure the loans for which this validation has not been received.  

Q:  What happens if I cannot validate the borrower’s SSN?

A: The lender may submit a request for insurance endorsement if confident that the Case Warning was received in error as a result of a system shutdown.  The lender must provide conclusive documentation to verify the SSN such as a valid SSN card issued by the SSA, or an original document issued by a federal or state government agency, which contains the name of the individual and the SSN of the individual, along with other identifying information of the individual in the case binder to support the validity of the borrower’s name and SSN to the applicable Homeownership Center (HOC). 

Lenders may not endorse any loans with Case Warnings for SSN Validation and FHA will require the lender to submit the case binder for endorsement along with conclusive documentation to verify the SSN such as a valid SSN card issued by the SSA, or an original document issued by a federal or state government agency, which contains the name of the individual and the SSN of the individual, along with other identifying information of the individual in the case binder to support the validity of the borrower’s name and SSN to the applicable Homeownership Center (HOC). 

If upon review, FHA believes the documentation provided complies with HUD’s regulations and the loan meets all other FHA requirements, the HOC will endorse the mortgage for insurance.

FHA Homeownership List Serv Archive Page

FHA Recently began posting prior messages from this Homeownership List Serv on a Departmental web site. Currently the archives include messages from calendar year 2013 and a portion of calendar year 2012. To view messages sent by fhainfo@hud.gov and previously by jerrold.mayer@hud.gov, please visit the following site: http://bit.ly/FHAInfo

Transactions Year-Over-Year Change

According to the RE/MAX National Housing Report, "The July RE/MAX Housing Report showed a 1.5% increase in Closed Transactions over June, and a 17% increase over home sales in July 2012. July marks the 25th month in a row reporting higher sales than the same month in the previous year.  The 2013 selling season continues to experience a broad-based housing recovery in all regions of the country."

Market still active through September.

The market hit the normal dulldrums in August while many people, agents included, ran off to get the last few days of vacation with family and friends. It was slow to get started again in early September in part due to the annual Maryland Association of REALTORS(R) (MAR) conference in Ocean City.  Great education and networking, but long distance contract management is for the birds.  Thank goodness for assistants!

With my Day at the Park behind me I am fresh for the two settlements this week and another two properties to sell.  One is under contract.

It is still a great time to move with interest rates at historic lows, still, and home values and their relative closing costs also near the bottom of the recent market.

Have a great last few days of summer!

Best wishes,
Linda