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Federal Housing Administration Updates Reverse Mortgage, Title II Policies

November 16, 2015 admin Leave a comment

The FHA drafted and published a letter earlier this month outlining all changes and updates regarding reverse mortgages and Title II mortgages. The new policies will take effect on New Year’s Day of 2016, replacing all previous Attorney Fee schedules, Reasonable Diligence Timeframes (RDT), and Cash for Keys Allowances.

RDT Updates

The document lays out all updated Reasonable Diligence Timeframes, which now begin when the First Legal Action in a foreclosure occurs. In regards to the RDT, the document allows extensions of the deadline when all parties involved in bankruptcy take the appropriate steps promptly. Extensions are permitted in cases where a separate legal action is necessary to initiate the possession process in a foreclosure case.

Cash For Keys Updates

Cash for Keys allows landlords, banks, and any other mortgage entities to give cash incentives to tenants who willingly vacate a foreclosed property. The new maximum allowance for Cash For Keys outlined in the FHA letter is $3,000 per dwelling, and the allowance is awarded when the occupant vacates the property within 30 days.

Attorney Fee Schedules

The FHA has also provided a table with the maximum amount of reimbursable fees from legal procedures that accompany the foreclosure process. These fees include a foreclosure attorney fee, a bankruptcy clearing fee, a possessory action fee, and a completion of deed-in-lieu fee. The total amount is different in every state and is laid out on a table in the FHA letter. Moreover, the fees must pertain exactly to the outlined duties and cannot be allocated to any other category or facet of legal fees incurred.

Details and Tables

For exact tables and timelines outlining the changes feel free to click HERE and read the entire FHA letter for yourself. While at first the changes may seem a bit daunting to understand, the wording is very clear, and it only takes about 10 minutes to read

Further Advice

Acuity National Real Estate Solutions provides nationwide title insurance. Our reputation as one of the nation’s best title agencies is built on our high-efficiency process and quick turnaround times. We’ve helped lenders and realtors navigate complicated new mortgage regulations, including the recent switch to the TRID integrated disclosure. We provide residential and commercial title insurance and assist with transactions relating to foreclosures, REO properties, and relocations. For complete information on our services, please visit our homepage.

?Zombie? Foreclosures Down Nearly 50% in Q3

November 10, 2015 admin Leave a comment

Homes that are in foreclosure, but have not yet been taken back by a lender are called ?zombie? homes. According to the ?Zombie Foreclosures and Vacant Property Report? by RealtyTrac, Q3 has seen a reduction of these vacant homes by 43% compared to one year ago and 27% compared to the quarter before. The number currently stands at 20,050 ?zombie? properties across the U.S., which is just 1.3% of the total 1.5 million vacant properties.

Review of the Market

Foreclosures of all types, ?zombie? and otherwise, have fallen by 36 percent in the past year. Of all vacant properties in the United States, over 36% have at least one open loan. 6.2 percent of these homes are ?seriously underwater,? meaning the value of the loans secured are at least 25% greater than the market value of the home. One surprising development is that many of the owners of the foreclosed homes are not in financial distress. 63% or these homes are not under any lien at all. Despite the fact that the real estate industry has recovered from the recession substantially, some areas have been left behind. Many ?zombie? homes are likely in poor condition and/or located in areas that have yet to bounce back from the recession.

Markets with Most ?Zombie? Homes

Recovery from the recession has not been enjoyed equally across the country. As a result, some regions have larger numbers of ?zombie? homes than others. States with the highest total number of ?zombie? homes are:

? New Jersey ? 3,997 zombie homes
? Florida ? 3,512 zombie homes
? New York ? 3,365 zombie homes
? Illinois ? 1,187 zombie homes
? Ohio ? 1,028 zombie homes

In some states, the total number of zombie homes is lower than the states mentioned above, though a larger percentage of total vacant properties are zombie homes. Below are the percentages of all vacant properties that have yet to be taken back by a lender:

? New Jersey ? 9.4%
? New York ? 8.2%
? Nevada ? 2.7%
? Massachusetts ? 2.5%
? Illinois ? 2.1%

Only two states in the nation have seen the number of zombie homes increase since the recession. In Massachusetts, the total number of zombie homes is up 66% when compared to eight years ago. In New Jersey, zombie homes have increased over 29% over the same time period.

How Acuity National Real Estate Solutions and the Real Estate Industry

Acuity provides a full range of title services to lenders and loan officers. We help facilitate the mortgage closing process with thoroughness, expedience, and excellent communication. For more information, please visit our homepage.

Timely Referrals and Where to Find Them

October 6, 2015 admin Leave a comment

The most valuable thing about your business isn?t made of metal though having a golden one certainly doesn?t hurt. It?s your business reputation, and it?s crucial to word-of-mouth marketing and getting valuable referrals to bolster your business. A recent Nielsen study confirmed that 92 percent of consumers said they trust a friend or family member?s recommendation above all else when considering a product or service. But how do you get someone to give a good referral? Simple: you make sure they?re happy, and then you ask.

Following Through

Asking a customer for a referral is much easier said than done. Immediately after a customer leaves your business, so does their train of thought, even if they were happy with their service. Most referrals are empty promises or flat out denials, so how do you ensure that a customer will tell that friend they?re ?always meaning to bring in? or post that five-star LinkedIn review? After you ask, request that they send you a copy of the review as confirmation once they have written the review online or told a friend to use your business. If you don?t receive confirmation, follow-up with a ?thank you? message as a gentle reminder. Most importantly, make the process easy for the person who is referring. If your request isn?t quick and painless, the customer won?t bother, no matter how little work is required.

Be Punctual and make it a habit

The best time to ask for a referral is when the customer is at their happiest. If you ask too early, you may seem too eager and turn them off. Asking too late guarantees your request will be forgotten. Once you have fully delivered your great customer service, follow up with asking them to post an online review or testimonial. Make it a habit as well. It?s easy to get one good review, but having multiple positive testimonials on your site solidifies your reputation as a great business.

Take care of the customer

At the end of the day, the customer?s best interest should be in mind. Incentivize a customer?s referral with a discount on a future visit. Not only does this show your gratitude, but it also boosts the chance of repeat business and the chance that they?ll refer a friend. Remember, they are doing you a favor, not the other way around. Also, a hearty and sincere ?thanks!? goes a long way.

A great reputation

Acuity National Real Estate services has a reputation as one of the nation’s best real estate service providers. A real estate transaction has a large number of moving parts and Acuity helps coordinate all the parties for a seamless, punctual close. Check out our website for more information.

Growth in the Non-Bank Homeowner Lending Market

September 29, 2015 admin Leave a comment

Typically, banks are thought of as the most reliable source for a home loan, but as consumers are in a tight market, more options have come to light. Currently, banks seem less than eager to offer mortgages and home loans to consumers. More and more, non-bank lenders are filling the gap left by banks retreating from the mortgage and homeowner loan market. Despite filling an obvious need, non-bank lenders have come under fire for less regulation by Congress and in the media as well due to a lack of clarity on regulations.

While banks have been an old stand-by, their interest in the market is shrinking. As a loan officer, it?s important to know the ins and outs of both a bank and non-bank loans.

Subject to the Same Regulation

The term ?non-bank? may lead one to think that regulation is less strict than on non-bank lenders. However, they are subject to background checks, keeping their lending knowledge current and undergoing repeated SAFE Act examinations. Additionally, related to mortgages, non-bank entities must undergo CFPB testing. This process also rolls over into having to fulfil state and national requirements. Bank loans, on the other hand, are not subject to SAFE Act exams.

Current Market of Non-Bank Lenders

Despite the objections of government officials about the growing non-bank lending marking, most non-bank mortgage lending is funded by government loans. The regulations and requirements that rule government loans, like operational and net-worth requirements, are all the same across the board, regardless if the loan originated from a bank or non-bank lender. This is important to note depending on your clients, as it is important to direct them to the service that makes the most sense for them.

One Important Difference

Following the 2008 crisis, a lot of finger pointing and scapegoating occurred. To this day, many consumers have an incorrect perception of non-bank lenders. Help inform potential clients of the advantages of your service and put them at ease.

Come to Acuity National Real Estate Solutions

With a network covering 50 states, Acuity is uniquely positioned to help deliver the title services you need within the regulations and rules in which you have to operate – bank, or non-bank lender. We utilize cutting edge technology to streamline the mortgage closing process. Contact us Acuity National Real Estate Solutions, LLC today at (502) 238-7500 or visit our homepage to inquire about our services.

Giving Millennials Better Access to Mortgages

August 31, 2015 admin Leave a comment

Giving Millennials Better Access to Mortgages

What is a Mortgage?

A mortgage is a loan to finance the purchase of a home, and typically it?s the largest financial investment people make in their lives. A mortgage is made up of three things: collateral, the premium payment, and the interest. The more collateral you provide, the lower your interest rates will be. The sooner you pay off the mortgage, the less total interest you?ll pay.

Here at Acuity National Real Estate Solution, we?ve developed some strategies to engage Millennials, who are just beginning to enter the market for homes. But first, who are the Millennials?

The Impact of Millennials

Millennials were born sometime between 1980 and 2000. They make up the largest generation in U.S. history. Today they represent over 25% of the population. In the last 10 years, what has separated successful businesses from the not-so-successful ones has been their ability to connect with Millennials.

Growing up during the internet boom and coming of age in the age of smartphones, Millennials expect businesses to be accessible in more ways than one. It goes without saying that a business without a website in this day and age might as well not exist.

Below is what a business has to do to succeed in the information age.

Maintain Social Media Presence

The rise of social media has been meteoric. Not only does social media provide a platform for communication and news, but it?s also become a leading tool for businesses. Millennials consider businesses with Facebook and Twitter pages more reliable because customer feedback is right there at their fingertips.

Communication via Text Message

Text messaging is a paramount means of communication for Millennials, and businesses should take note. With borrower authorization, real estate servicers will be able to send payment reminders, receipt of payment notices, and other updates via text message. Nobody likes waiting on the phone or receiving phone calls when they?re busy, and text messaging will reduce the amount of time spent on the line. This is a feature we?re working on at Acuity National Real Estate Solutions.

Make Website Mobile-Friendly

Internet use is quickly moving into the mobile realm, and servicers must develop and test their sites to ensure they?re mobile-friendly.

Provide Options

Millennials require options with how they communicate. It?s not that they?re selfish. Rather, they?ve been provided with a wide range of options since adolescence and they?re unlikely to pursue business with anyone who doesn?t make connecting simple.

They?ll use typical IVR answering systems like other generations as long as they?re well-scripted and provide faster service. But if that system falters, they won?t hesitate to find a provider that offers a simpler alternative.

At Acuity National Real Estate Solution, we?re making it easier for Millennials and everyone else to find the home of their dreams. Check out our previous posts for more information on the real estate market, or visit our website to see what we can do for you.

Appraiser Shortage to Destabilize the Industry?

June 24, 2015 admin Leave a comment

According to some mortgage lenders, a shortage of qualified home appraisers may destabilize the industry. In fact, this problem has suddenly replaced regulations and economic instability as a top concern.

According to the Appraisal Institute, the total number of licensed or certified home appraisers has declined by at least 28 percent, or 23,000 people, since 2007. An entire generation of appraisers is poised to retire, and the number of college graduates qualified to work in this field are insufficient to fill the vacancies. The owner of the Chicago appraisal firm, Rick Hiton and Associates, noted that in approximately five years the banking sector will not have enough appraisers available to service home mortgages.

Working appraisers between the ages of 50 to 55 are scheduled to retire during the next 10 years. At the same time, young graduates face additional hurdles that did not affect previous generations. This includes a sharp increase in the barriers to entry. In January, a new rule imposed stricter certification requirements on new appraisers. The new workforce also faces an economic situation where low pay and increased workloads are considered acceptable.

Comergence of Mission Viejo in California is a company involved in vetting new appraisers and mortgage lenders. According to its president, Greg Schroeder, it can take up to seven years for a professional to conduct an independent appraisal. He added, “Regulation has created very onerous time and educational requirements for appraisers, and it’s killing an industry that is already dying because of age.”

Home appraisals are required for homes valued at more than $250,000, and these appraisals must be conducted by a credentialed professional. According to Schroeder, 20 to 30 percent of these professionals are “grumbling about retiring, so the actual number of working appraisers could be cut in half.” He adds that up to 30 percent of the 61,000 qualified residential appraisers continue to hold licenses even though they are not active in the industry.

Professional housing appraisers blame the 2009 Home Valuation Code of Conduct, or HVCC, for the decline. This rule was the outcome of a negotiation between the state?s Attorney General Andrew Cuomo and three federal housing agencies: The Federal Housing Finance Agency, Fannie Mae and Freddie Mac. The new rules ostensibly protect appraisers from being bullied by aggressive loan officers and mortgage brokers who may pressure appraisers to inflate home values because they rely on commissions from sales.

Inside the banks, an appraisal management company suddenly replaced entire in-house departments. Bill King holds a senior position at a California firm Platinum Data Solutions. King noted that “The banks saved millions of dollars a year, but appraisal fees never went up.” The fees incurred by these companies reduced the appraiser?s fees by as much as $350. The new arrangement saved money for the bank, but the appraiser?s fees never returned to the original amount, which was as high as $500 per appraisal.

The Dodd-Frank reform required lenders to pay their appraisers according to standards that are ?customary and reasonable.? However, these terms are not interpreted by most state officials identically or consistently.

Fannie May released their new Collateral Underwriter software in January. Advocates say that this tool accurately provides an automated risk assessment for mortgage appraisals. Fannie Mae does not currently allow appraisers to use the software. A Fannie spokesperson described the appraisers as “boots on the ground updating property.”

Tim McCarthy is the chief appraiser at TJ McCarthy and Associates, a Chicago-based appraisal firm. He expressed surprise that Fannie will permit lenders to benefit from the software while forbidding appraisers from using it. ?Can you think of any other industry that withholds the best tools available for the professional, and only uses the tool after the job was completed to see if they did it correctly?” he asked.

Returning Homebuyers Face Challenges

June 24, 2015 admin Leave a comment

When It Comes to Mortgages, Keep an Open Dialogue

The number of prospective homebuyers coming back onto the market is increasing. With high Loan-to-Value loans becoming popular again, people who will apply for low money down loans will also increase. That amount of risk, will trigger the Underwriter to look over that file with caution. Let?s be honest, many borrowers still have a bad taste in their mouth when it comes to lending. You may be likely to see borrowers who believe that sharing information with the bank is bad.

Lenders and Title companies alike would greatly benefit from encouraging borrowers with non-traditional credit issues, like foreclosure or short sales to write detailed letters of explanation to submit with the application. This extra information could greatly expedite and underwriters decision to extend credit and ultimately could be the difference between approval and denial.

The most common of those could be classified into 3 categories:

1. Previous homebuyers who have delinquencies on their credit reports
2. Consumers who lack credit depth
3. Prospective homebuyers who are paying student loans

Previous Homebuyers with Delinquencies

Seven years have passed, and many of those who lost their homes due to foreclosure, bankruptcy or in a short sale are ready buy again. These applicants will be seeking a high loan-to-value-ratio loan.

Consumers Who Lack Credit Depth

Increased communication will also benefit those who have excellent credit scores but do not have any transactions in their credit histories to support these numbers. In these instances, applicants have many opportunities to present other forms of evidence to their lenders that can demonstrate creditworthiness. Some of these documents include the following:

? Nontraditional-credit trade lines
? Bank account statements
? Letters of explanation
? Rent-payment histories
? Retirement accounts

Student Loans

Some people are currently repaying their student loans, but their monthly installment payments are not fully amortized. This means that their payments are much lower than would be expected on such high amounts of debt. Open communication allows lenders and borrowers to determine how repaying these loans affects a homebuyer?s ability to repay a mortgage.

Real estate experts don?t know exactly where the housing market will go this year, but they do know that it is going in a positive direction. This encourages a more open lending process that can qualify more people for a home loan. If lenders can focus on creating open dialogue with borrowers, it could go a long way towards ensuring that underwriters get the information they need to reduce risk and help them buy the homes of their dreams.

A Smoother Closing for Distressed Properties

April 22, 2015 admin Leave a comment

Purchasing a home can become complicated. This especially rings true of foreclosures and short sales. If you decide to invest in a distressed property, it’s essential to have a deep understanding of how title insurance works. It starts out simply enough, like any real estate transaction with a buyer and a seller. A price is negotiated for the property, and contract terms are set in place.

After the contract is negotiated in a short sale, a mortgage lender must approve it before it becomes a solidified deal. If the property in question is bank-owned, the homebuyer presents an ?as is? real estate purchase contract to the lender representative. The listing agent then submits it to the bank, who typically puts forth a counter-offer. In particular instances such as these, it’s important to have a title agent oversee all of the details during the closing.

The title agent communicates with the purchaser, real estate agent, the bank and the mortgage lender. The most significant function of the title agency is to research the property’s ownership history. This includes looking into the ?chain of title,? which includes previous owners, as well as any liens, encumbrances or claims. At close, buyers purchase owner?s title insurance to protect themselves and lender’s title insurance to protect the lender. The title policy is an indemnity against loss or damage up to the insured price (which is almost always the purchase price) according to the terms of the policy.

Title insurance is an investment in your future. It is a one-time purchase and lasts as long as the buyer owns the property according to the terms of the policy.?Contact Acuity National Real Estate Solutions, LLC, a Freibert & Mattingly Title Group LLC company, at (502) 238-7500.? We provide our clients with the best of both worlds?old-fashioned professional excellence supplemented by the cutting edge technology necessary for an optimized process and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that can still keep its feet on the ground.? To learn more about Acuity?s services, visit www.ftgclosings.com.

A Lesson on the GFE Tolerance Cure

March 25, 2015 admin Leave a comment

What is the GFE tolerance cure? It is a term that is often met with confusion from those who lack familiarity with the real estate industry as a whole. There are some novice entrepreneurs in real estate and the title industry who may not yet have come across this concept in their line of work, yet it is crucial that they are familiarized with it.

The GFE tolerance cure is an incredibly important federal policy that one needs to have a full understanding of when working from within this field. This is how the government looks to protect its consumer population. The fact of the matter is that the tolerance cure inherently circumvents the possibility of a borrower paying back more than what is owed on any closing costs on a deal.

In other words, the GFE tolerance cure actually improves the overall customer experience for borrowers by protecting them from the possibility of being dealt any surplus charges by their lenders. While this serves as a grossly simplified explanation for what the policy actually entails from a legal standpoint, having a full understanding of how the tolerance cure works makes it an asset for title industry professionals.

Contact Acuity National Real Estate Solutions, LLC, a Freibert & Mattingly Title Group LLC company, at (502) 238-7500.? We provide our clients with the best of both worlds?old-fashioned professional excellence supplemented by the cutting edge technology necessary for an optimized process and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that can still keep its feet on the ground.? To learn more about Acuity?s services, visit www.ftgclosings.com.

Tolerance Cures and the Good Faith Estimate: Part III

March 16, 2015 admin Leave a comment

When a lender is preparing a good faith estimate, the financial institution will create a list of additional costs, and each fee is associated with a level of tolerance. The costs can be related to numerous services, such as appraising the property, initiating a wire transfer, homeowner’s insurance, analyzing the borrower’s credit report, underwriting the loan and title insurance. Here, Acuity provides the third of four parts to clearly define Tolerance Cures and the Good Faith Estimate.

Choosing an Attorney

Some lenders will provide a list of lawyers who can create and modify the terms of the loan and the closing statement. If the buyer chooses an attorney that has been approved by the financial institution, the costs are subject to a tolerance of 10 percent. When the borrower selects a lawyer that was not on the lender’s list, the attorney’s fees are not associated with any tolerance.

Creating Records

Once a state government records information about the property transfer, the agency typically charges a fee that is less than $700. This cost is associated with a tolerance of 10 percent.

Evaluating the House

An experienced inspector will generally analyze the foundation of the home, the roof, the insulation, the siding, the windows and the house’s plumbing, and in some cases, the individual may create a list of the estimated prices of necessary repairs. The costs of the evaluation usually do not have tolerance, but if the inspector has been chosen by the lender, the total price of the services has a tolerance of 10 percent.

Homeowner’s Insurance

An extensive analysis showed that more than 20 percent of lenders help buyers to obtain discounts when the borrowers purchase an insurance policy for the property. The monthly price of insuring the home does not have tolerance.

Independent Appraisals

Generally, the costs of valuating the house are not associated with tolerance. In spite of this rule, some companies will provide written guarantees that indicate that their prices will not change after a GFE has been provided.

In today?s market, you need an agile title and closing partner that has its feet on the ground. Contact Acuity National Real Estate Solutions, a Freibert & Mattingly Title Group LLC company, today at 502.238.7500. To learn more about Acuity?s services, visit www.ftgclosings.com.