My New Outside Blog

www.lasvegasmtg.com report: HARP 2.0 for Las Vegas, Nevada

By John Le Francois

www.lasvegasmtg.com report: HARP 2.0 for Las Vegas, Nevada as reported in an earlier article HARP 2.0 has created a  large interests from borrowers that were shut out of refinancing to lower rates due the home in Las Vegas, Nevada being underwater. While HARP 2.0 was originally approved last year it was not available until this April, 2012 due to Fannie Mae and Freddie MAC updating software to allow for the PIW which stands for Property Inspection Waiver. When HARP 2.0 or the Expanded Home Affordable Refinance Program became available there were few investors that were willing to take the added risk of taking on underwater mortgages. There was little competition and rates were a little higher then a normal conventional loan. Recently that has changed and we now have 3 new investors within the last two weeks Fannie Mae.

While this is a good news for borrowers if their loan is being serviced by Fannie Mae, it is just the opposite for Freddie MAC with only one investor doing unlimited Loan to Value. Freddie MAC has also limited the amount of the closing cost that can be include with the principal payoff to $5,000 which has to include origination, processing, underwriting, title fees and the last 30 days of interest that will be required to be paid to the old servicer.    

Examples of current borrowers savings:

1.  Condo balance owed is $140,000 at 6.75% for 30 years with a value at $85,000 and the borrower has paid on the property for 6 years. New loan at 4.00% for 15 year loan and is only paying $19 more per month the the previous 30 year mortgage. This allows the borrower to shave 9 years of the loan and to quickly to build equity that was not possible before.

2. Single Family Home balanced owed $449,000 with 6.75% for 30 years and have paid on the loan for 4 years with a value at $290,000. New loan for 30 years at 4.25% will save $704.00 a month.

3. Single Family home balanced owed is $268,500 at 6.25% for 30 years and paid for 4 years. New loan 4.5% for 30 years will save $293.00 a month.

If you think your loan is with Fannie Mae or Freddie Mac feel free to talk with my associate Kenny Salame or myself to see what your loan options are. We are a full service lender that provides the following loans: FHA Las Vegas Home Loans, VA Las Vegas Home Loans, HECM Las Vegas Home Loans, Portfolio Las Vegas Home Loans, Conventional Las Vegas Home Loans and HARP 2.0 Las Vegas Home Loans. To get a personal reply for HARP 2.0 scenario click here. For more information on purchases click here.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg,com Report: Can a Veteran stop paying property taxes in Clark County, Nevada? The answer is yes if they can qualify and meet the requirements. This is available for all active and retired Veterans and servicemen that own property in Nevada.

How is this possible?

NRS 361.090 Veteran's exemptions.

1. The property, to the extent of $2,000 assessed valuation, of any actual bona fide resident of the State of Nevada who:

(a) Has served a minimum of 90 continuous days on active duty, who was assigned to active duty at some time between April 21, 1898, and June 15, 1903, or between April 6, 1917, and November 11, 1918, or between December 7, 1941, and December 31, 1946, or between June 25, 1950, and May 7, 1975, or between September 26, 1982, and December 1, 1987, or between October 23, 1983, and November 21, 1983, or between December 20, 1989, and January 31, 1990, or between August 2, 1990, and April 11, 1991, or between December 5, 1992, and March 31, 1994, or between November 20, 1995, and December 20, 1996;

(b) Has served on active duty in connection with carrying out the authorization granted to the President of the United States in Public Law 102-1; or

(c) Has served on active duty in connection with a campaign or expedition for service in which a medal has been authorized by the Government of the United States, regardless of the number of days served on active duty,

Ê and who received, upon severance from service, an honorable discharge or certificate of satisfactory service from the Armed Forces of the United States, or who, having so served, is still serving in the Armed Forces of the United States, is exempt from taxation.

2. For the purpose of this section, the first $2,000 assessed valuation of property in which an applicant has any interest shall be deemed the property of the applicant.

3. The exemption may be allowed only to a claimant who files an affidavit with his or her claim for exemption on real property pursuant to NRS 361.155. The affidavit may be filed at any time by a person claiming exemption from taxation on personal property.

4. The affidavit must be made before the county assessor or a notary public and filed with the county assessor. It must state that the affiant is a bona fide resident of the State of Nevada who meets all the other requirements of subsection 1 and that the exemption is not claimed in any other county in this State. After the filing of the original affidavit, the county assessor shall, except as otherwise provided in this subsection, mail a form for:

(a) The renewal of the exemption; and

(b) The designation of any amount to be credited to the Gift Account for Veteran's Homes established pursuant to NRS 417.145,

Ê to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption. If so requested by the person claiming the exemption, the county assessor may provide the form to the person by electronic means in lieu of by mail. The county assessor may authorize the return of the form by electronic means in accordance with the provisions of chapter 719 of NRS.

5. Persons in actual military service are exempt during the period of such service from filing the annual forms for renewal of the exemption, and the county assessors shall continue to grant the exemption to such persons on the basis of the original affidavits filed. In the case of any person who has entered the military service without having previously made and filed an affidavit of exemption, the affidavit may be filed in his or her behalf during the period of such service by any person having knowledge of the facts.

6. Before allowing any veteran’s exemption pursuant to the provisions of this chapter, the county assessor shall require proof of status of the veteran, and for that purpose shall require production of an honorable discharge or certificate of satisfactory service or a certified copy thereof, or such other proof of status as may be necessary.

7. If any person files a false affidavit or produces false proof to the county assessor or a notary public and, as a result of the false affidavit or false proof, the person is allowed a tax exemption to which the person is not entitled, the person is guilty of a gross misdemeanor.

8. Beginning with the 2005-2006 Fiscal Year, the monetary amounts in subsections 1 and 2 must be adjusted for each fiscal year by adding to the amount the product of the amount multiplied by the percentage increase in the Consumer Price Index (All Items) from July 2003 to the July preceding the fiscal year for which the adjustment is calculated. The Department shall provide to each county assessor the adjusted amount, in writing, on or before September 30 of each year. Currently the adjusted amount is $2,340.00.

When must you file for VA tax Exemption? You must submit the application no later the June 15th of each year to qualify for the exemption for the new fiscal year.

How do I get the form? You can down load your copy VA Tax Exemtion Form from here. Provide the DD214 copy of Driver License have your parcel number on the affidavit or leave and Earnings statement showing Nevada as your home on record.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com report: FHA Loan Limits will be drastically cut back for Clark County, Nevada (Las Vegas, Henderson, North Las Vegas, Boulder City) starting October 1, 2011. Currently FHA loan limits for Clark County, Nevada is $400,000.00, but this will be reduced to $271,050.00, a reduction of $128,950.00!

In previous changes with FHA Mortgage Insurance or loan limits the rule has been if the property was assigned a FHA case number prior to the FHA rule change date then it would fall under the old guidelines.

What does this all mean? Qualified home buyers that are seeking a FHA loan to purchase a home over the $271,050.00 loan limit set for October 1, 2011 will need to enter under contract and have the FHA Case Number  assigned to the property prior to the change date.

Many currently qualified FHA home buyers that are wanting to purchase higher priced home after October 1, 2011 will be required to have 20% down or a 720 or higher credit score for PMI to be able to have less down payment because FHA will not be available for there home loan option.

Currently FHA 30 year rates are a .5% better pricing then a conventional 30 year loans due all of the pricing hits that Conventional loans have. Read my blog regarding "The untold Truth about Par Rate" to see all of the factors that drives conventional loan rates up.

If you are a potential buyer in this market price range time is running out for you to use the FHA loan option. What would you want to do? Only need 3.5% down or have to pay 20% down and have higher interest rates? Call Me Now at 702-271-2659 to see what your options are now and what they will be after October 1, 2011.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: Republicans target increasing FHA Down Payment Part 2

by John Le Francois

www.lasvegasmtg.com Report: Republicans target increasing FHA Down Payment was the main discussion held yesterday in the Republican led House Financial Services Committee. The Draft Legislation "FHA Rural Regulatory Improvement Act of 2011" Chairman Spencer Bachus (R) "This hearing is necessary to insure that government home loan programs do not expose taxpayers to significant losses."

In a previous article "Republican Politicians want FHA to Increase Down Payment" I wrote prior to the House Financial Service Committee hearing briefly outlined the increase from 3.5% to 5% for a FHA down Payment. It appears from testimony from the hearing there would a more restrictions being imposed with the new legislation if the proposal gets out of the Committee.

Micheal Berman Chairman of the Mortgage Banker Association and Ron Phillips President of National Realtors Association are strongly opposed to any increases in the required FHA down payment. Both Micheal Berman and Ron Phillips sited statistics that FHA default are considerably less then conventional loan defaults. What is more important then the amount of down payment is having strong underwriting requirements, which FHA does have.

The Cato Institute a Conservative Think Tank, disagrees and has provided a list of proposed changes that the House Financial Service Committee has eagerly endorsed.

• Immediately increase to 5% Cash Down Payments on the part of the borrower.
• Require FHA to only allow reasonable debt to income levels. (What that is has not been determined at time of this writing.)
• Restrict borrowers eligibility to a credit history above a 600 FICO score.
• Require pre purchase counseling for borrowers with FICO scores between 600 to 680.
• Require a 10% down for all borrowers with a credit scores lower then 680.
• Require income limits on borrowers eligibility to FHA loans to not exceed 115% of the Median Income for the Area. 

Are these proposal going to make FHA immune to defaults? No! Will requiring 10% down for borrowers with a a credit score less the 680 protect the FHA loan Program? No! Will not allowing a borrowers ability to use a FHA loan program based on Income exceeding the median income limit strengthen the FHA loan program? No! 

The good news is you would be more likely to put the fires of hell out with a squirt gun then this bill ever passing the Senate!

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: Republican Politician want FHA To Increase Down Payment

by John Le Francois

www.lasvegasmtg.com Report: Republican Politicians want FHA To Increase Down Payment from the current 3.5% to 5% and are proposing this through discussion on Wednesday Housing Financial Services Committee hearing led by Judy Biggert (R-Ill.) Last year Congress tried to increase the FHA Down Payment required, but it was removed from the bill when the President Obama threatened to veto the bill if left in.

The Republican led proposed increase to the down payment is based on the argument that FHA would not be in jeopardy of Government assistance if the borrower were required to have more skin in the game with a higher down payment. FHA has had two increases in the Upfront Mortgage Premium and the annual premium in the last year to increase the required reserves that Congress has mandated to cover mortgage defaults.

Last year Congress mandated these changes to UFMIP and MIP to secure solvency of FHA without government assistance. Borrowers with FICO score less the 580 would need to put 10% down before they could get a FHA approval.

Most of the FHA defaults were the result from the Down Payment Assistance program that was approved by Congress back in 2000 and was eliminated in 2008 when it became apparent that over 60% of these types of loans were in default in the first two years. Current FHA defaults are the results of high unemployment across the nation and would be the same regardless of the percentage of down payment required.

 What is a fact is that current statistics show that Fannie Mae and Freddie Mac have an average default rate of 17% while FHA defaults are at 6.2% and VA that does not require any down payment is less then 2% in defaults.

Given VA has the lowest default rates of any mortgage loan program and does not require a down payment then logic would show that down payment is not the only determining factor for defaults.

What we do know is that the increase in down payment from 3.5% to 5% for a FHA loan would eliminate first time home buyers of at least 300,000 in the first year alone.

We know that this proposal would never come to the floor as a bill without bipartisan approval, but with banks feeling the pressure with 40% of all loans being underwritten with FHA loans, do not be surprised the banking lobby can get that bipartisan support needed to get the bill to the floor of Congress.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: $400 Billion Adjustable Rate Mortgages to reset.

by John Le Francois

Linda Sterns a Journalist for Rueters this weekend reported that $400 Billion, that's Right $400 Billion in Adjustable rate Mortgages will be starting to reset. In 2006 at the height of home purchases the adjustable rate mortgage was the loan of choice and the most widely used ARMS were the two, three and five year ARM. In the last five years since the housing bubble started we have seen over 5 million homes foreclosed on across the United States. The next round may start when the five year ARMS start to adjust.

In the next 13 months we will see over $20 Billion in loans adjust every month. While some of these resets would be a positive for the borrower seeing an average of $300 to $500 per month decrease at current rates some will not due to the specific ARM they hold. Borrowers that had 5 Year ARMS that were Interest Only payments will se an increase in their mortgage payment.

With 1 in 25 homes are under water across the nation and in Las Vegas that number is down to 1 out of 2 homes are upside down there is little chance of converting to fixed rate at the current low interest rates. Could we see a next wave of foreclosures with the adjustment of the 5 year ARM? Could we see more strategic defaults coming due to the ARMS resets? Only time will tell.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: Scam to Defraud Las Vegas Home Buyers

By John Le Francois

www.lasvegasmtg.com Report: Scam to Defraud Las Vegas Home Buyers with an ominous letter they receive in the mail that looks and reads like a government letter from the recording office. It includes a payment coupon for $87.00 and states if you do not return within the required date (see the calender on the letter) there will be additional charge of $35.00 will be required before processing.

What do you get for the $87.00? You get a copy of the recorded Grant Deed that was recorded on your current property you purchased and a property profile. 

 At the end of the letter it discloses that Record Retrieval is not affiliated with the county, state or with any government agency and the offer is not being made for an agency of the government. In even smaller print it states you can obtain the Grant Deed from your county recorders where your property is located in for up to $87.00. What they don't state is you can go online and search by name, address or APN and print your own Grant Deed for FREE!

Please note that the bottom of the footer states that Record Retrieval operates in accordance to both Business and Profession Code 17533.6 & Civil Code 1716. In reality it does not comply to the letter of the law and I have provided the link to that specific California Business Law and Civil Code. The only reason they include this is to give validity to the solicitation of the letter. The Record Retrieval return mailing adress is located in Reno and is a UPS Store and the original letter shows a bulk presort stamp from Corona, Ca.  Please inform your buyers that there is no reason to pay the $87.00 for this service from Record Retrieval.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: Las Vegas Home Facts No One Is Talking About

By John Le Francois

www.lasvegasmtg.com Report: Las Vegas Home Facts No One Is Talking About. What are the facts that are being lost in the world of doom in gloom on the Las Vegas, Nevada housing landscape? It is the fact that 2010 "Existing Home Median Prices" are at the same level as the 1996 "Existing Median Home Price". 

In 1996 the gap between "New Home Median Prices" and "Existing Home Prices" was only $7,000.00. In 2003 the gap between "New Home Median Prices" and "Existing Home Prices" increased to $37,000.00 and in 2006 at the peak of home sales in Las Vegas, Nevada the gap was $43,000.00.

In 2010 the "New Home Median Prices" are at the same level they were in 2003, but the gap in 2010 between "New Home Median Prices" and "Existing Home Prices" increased to $88,000.00.

What does this all mean? Are New Home Median Prices to high, or is the Existing Home Median Prices to Low?

It is my opinion that Existing Median Home Prices are to low and the gap will return back closer to the 2006 level.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: Preserving Calico Basin, Nevada

by John Le Francois

www.lasvegasmtg.com Report: Preserving Calico Basin, Nevada a sanctuary for Las Vegans for hiking, rock climbers and nature enthusiast may be in jeopardy with Nevada budget crisis. Our current deficits will create a hardship for state legislature to fund state parks when they are seeking 1 billion dollar cut from the school district.

The Calico Basin area has been a sanctuary for mankind going back over 5,000 years with petroglyphs as the only testament that they were here. A natural springs makes it rich in diversity for flora and fuana. Only about 30 minute drive from the strip this should be a day trip for those tourist that do not think there is anything else but the strip.  Other recommended places to visit along the way are Red Rock Canyon, Mountain Spring State Park, Bonnie Springs Old West Amusement and Petting Zoo and the little town Blue Diamond.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!

www.lasvegasmtg.com Report: The New Standard for Mortgages QRM Part 2

By John Le Francois

Last week I wrote an article regarding the new proposal for QRM "The Qualified Residential Mortgage" proposal that is supposed to eliminate the risks of Toxic Mortgages held by banks by setting standards on what constitutes a risk free Mortgage. To read the previous article click here. 

Last week testimony at House Capital Markets Sub Committee that the proposed QRM guidelines are so  restricitve that the unintentional result would be to put millions of qualified homeowners out of the housing markets and it would stall any hopes of stabilizing the housing recovery.

Industry leaders from the National Association of Realtors, Mortgage Bankers, Consumer Advocacy Groups, Mortgage Insurance Companies, Center for Responsible Lending, and the Congressionall Black Caucus Group were outspoken in their opposition to the proposed changes.   

If the proposed changes were to take effect it is estimated that millions of homeowners would have to wait 15 years to save up the required 20% down payment on a medium priced home. The new rules for refinancing would eliminate 25 million people from refinancing their loans.

CoreLogic testified that data analysis from 2002 to 2008 of loans that defaulted would marginally changed the default rate by raising the down payment requirements in 5% increments. The increase in down payment only decreased the potential for default by .2% to .3%, but would eliminate 7% to 15% of  borrowers eligible for a home loan.

It is ironic that the very Dodd-Frank risk retention proposal was set out to protect the tax payer from bailing out the banks from selling Sub Prime Loans is now allowing the Banks to set the standard for the Qualified Residential Mortgage. Once again Congress has seen fit to allow the FOX to guard the Hen House.

If you are not fortunate enough to have 20% down and you still want to buy a home then the banks are very happy to sell you a Sub Prime Loan Product with a higher interest rate.  It is estimated that the Sub Prime loan interest rate would be .75% to 3% higher then the QRM rate. 

 Rep. Jeb Hensarling, R-Texas, said of the testimony, "Any time you get the mortgage bankers, the mortgage insurers, the Center for Responsible Lending and Congressional Black Caucus to agree on something, maybe this committee should pay a little bit of attention."

Lets hope the House Sub Committe Members will listen!

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
Visit MyBlogLog and get a signature like this!