Federal regulators have taken steps to enhance mortgage financing for consumers. The Federal Deposit Insurance Corporation (FDIC) led the release of the Qualified Residential Mortgage (QRM) rule, the first of several financial regulators. The new rule results from the 2010 federal government banking reform bill ratified after the financial crisis.

The rule will take effect in 2015, which allows enough time for lenders to put into practice internal processing procedures that fit requirements. Some mortgage lenders such as Acuity National Real Estate Solutions, LLC have already aligned their internal systems with the Qualified Mortgage (QM) rule, which should make for a smooth transition.

The rule clarifies qualifications that make a mortgage loan safe and eligible for sale to investors affiliated with a mortgage-supported security. The loaner isn?t required to preserve the five percent risk-retention amount on the books. As a result, a QRM loan allows lenders to give more loans at a less-expensive rate since they don?t have to pass on the costs of risk-retention to borrowers.

For years, the National Association of Realtors (NAR) has been expressing that the QRM rule should fit well with the QM rule enacted since January 2014. The QRM is in line with their wishes and offers specifications for repayment that allow for safe loans at a fair rate. Steve Brown, president of the NAR, is glad that the FDIC has finalized the new QRM rule and that it lines up with the QM standard.

Both the QM and the QRM rules qualify borrowers with a debt-to-income ratio of 43 percent for loan approval. In addition, there is no difficult down payment stipulation, which regulators discussed including and which the NAR and federation partners were strongly against.

The new rule relies on solid and responsible underwriting instead of burdensome down payments for qualification. The old ruling would have prevented millions of Americans the right of entry to low, safe mortgages that are why the NAR opposed its inclusion in the QRM rule.

Now that both the QM rule and the QRM rule are in sync, there?s better access to mortgage loans, which should help boost homeownership sales. If you are ready to take advantage of the new QRM qualifications and enter homeownership, contact Acuity National Real Estate Solutions, LLC today at (502) 238-7500. We provide our clients 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.

On August 19, 2014, the Consumer Financial Protection Bureau (CFPB) replaced the 2013-01 compliance bulletin and policy guidance with new updates. The New Guidance, Bulletin 2014-01, reinforces the original document and reflects results of the new servicing rules additional components in terms of regulations. These are a consequence of the new servicing rules and supervisory activities from the CFPB over the past eighteen months.

There are two new sections in the New Guidance. The first section entitled “General Transfer Related Policies and Procedures” details examples of the policies and procedures that CFPB examiners use to evaluate whether servicers have been successful in transferring related requirements. There are also fine points on post-transfer policies and procedures that servicers may spotlight in upcoming examinations. These include regularly scheduled calls between transferor and transferee servicers help identify research and promptly resolve any possible loan complications.

The second latest part entitled “Applicability of the New Servicing Rules to Transfers” responds to FAQs about how the altered Regulation X is applicable to servicing transfers. The section specifies certain areas of interest, including the number of transfers that might implicate requirements under the following:

• Error Resolution Procedures
• Early Intervention
• Loss Mitigation
• Continuity of Contact
• Force-placed Insurance.

The CFPB is utilizing the New Guidance in order to reinforce three important messages to the mortgage servicing industry. The first message entails the expectation of the CFPB that all mortgage servicers keep an active compliance management system (CMS). CMS would prevent violations of consumer protection laws and necessitate solutions to any violations. The second message instills close monitoring of the mortgage servicing market and may appoint further regulations. Third, the CFPB remains concerned about the current state of mortgage servicing transfers due to ongoing intense volume of servicing transfers.

Acuity National Real Estate Solutions, LLC provides its clients 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, call us today at (502) 238-7500.

There is heaps of misinformation regarding U.S. citizen?s qualifications for homeownership but nothing holds truer than with undocumented immigrants. Acuity is here to disclose the facts and dismiss the myths.

Without documentation, immigrants don?t have acceptable forms of ID such as a SSN card, unexpired US passport, or US birth certificate required for a mortgage loan. Because of this, most mortgage lenders will claim there is no chance an undocumented immigrant can obtain a mortgage.

However, those lenders are wrong. It is possible for undocumented immigrants to qualify for a mortgage. Not all lending companies grant loans to undocumented immigrants, but it is possible and legal. It depends on the mortgage agency.

The identity of the immigrant is determined by using their taxpayer identification number, which is given out by the Internal Revenue Service to allow immigrants to pay US taxes without a Social Security Number or US citizenship. The next step is a credit check. The standard way of doing this would make things very difficult for someone without citizenship, which is why mortgage firms that lend to undocumented immigrants will often evaluate different areas. Banks inspect insurance, phone bills, and rent payments.

This method appears troublesome, so one might be asking why bother. The answer to that question is simply the amount of undocumented immigrants currently living in the United States. There are over 11,000,000, and many are dreaming of home ownership just like many Americans. Undocumented immigrants are a large untapped market with lots of potential earnings for bank lenders while allowing the opportunity to fulfill the American dream.

The interest rates on loans for undocumented immigrants are often higher than conventional loans due to the lax competition between choices. It?s often 7% rather than the current 3-4%, but many lenders offer a stable 30 year fixed rate.

While it?s true that there aren?t many mortgage lenders offering service to undocumented immigrants, the fact is changing swiftly as more and more lenders are starting to see the vast potential in this often overlooked population.

Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity?s services, contact us at (502) 238-7500.

At the recent American Mortgage Conference held this past September, a new, yet classic, type of mortgage was introduced. Referred to as the wealth building home loan (WBHL), many elements of the structure of this loan hearken back to an older time when lenders and borrowers were open and transparent and only agreed to loan terms they could understand and actually manage.

One of the key features of a WBHL is that, as opposed to a traditional home mortgage, a WBHL is repaid in 15 years, rather than 30 years. Thus, home equity is built faster, and actual home ownership is achieved in half the time.

WBHL allows many people, including first-time homebuyers and minorities, the ability to obtain an affordable loan that allows them to gain home equity faster, and unlike so many people, to truly own their home.

WBHL enables a higher percentage of monthly payments towards paying down the principal costs of the home. In the beginning, some 68% of a monthly mortgage payment goes towards paying interest on a traditional, 30-year home loan. Consequently, it takes much longer to pay down the debt, and even longer to see the proverbial fruits of one’s labors.

One drawback is that WBHL have stricter terms; however, they are still available to those with a wide range of credit scores. These loans also do not require incredibly large down payments, which can make home ownership prohibitive to some. However, nobody will be extended unreasonable sums of money with terms they cannot afford and barely understand.

One of the biggest reasons this is referred to as a “wealth building” loan is that when people actually own their home outright, they have more expendable income, assets, and overall wealth. With WBHL, homeownership is possible in just 15 years. For many, a 30-year loan means continuing to pay on the home even beyond retirement, taxing what can be very tight budgets in what are supposed to be the golden years. A paid-off mortgage allows for retirement to be golden indeed.

Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting-edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and a closing partner who delivers with honesty and integrity. To learn more about Acuity?s services, contact us at www.ftgclosings.com/support.

Maintaining best practices for title insurance and settlement services ensures business manners remain in good standing with the state. The American Land Title Association (ALTA) regulations improve quality and professionalism but also have hefty implications. Acuity breaks down some of the new rules.

Obtain Appropriate License(s)

Maintain good standing with the state and comply with the regulatory department’s latest registrations and licenses required for your title insurance business. Establish applicable business licenses and maintain appropriate compliance with the requirements of ALTA?s Policy Forms Licensing.

Maintain Required Procedures and Controls in Writing

Escrow and trust accounts require written controls and procedures for electronic reconciliation and verification purposes. Appropriate escrow controls will help improve accuracy and meet the legal and consumer regulations required, eliminating the risk of losing client funds. Title and settlement companies may request the services of contractors to segregate trust accounting responsibilities.

The following procedures will help you fulfill this best practice:

• • Separating the maintenance of companies’, managers’, or employees’ operating accounts and escrow funds maintained as part of your fiduciary responsibility.

• • Documenting all outstanding file balances.

• • Ensuring that only authorized employees conduct relevant transactions. The company should set different authorization levels and annually update them. Employees who leave the company for any reason must be immediately removed as bank account signatories.
    Using federally insured financial institutions to maintain all escrow trust accounts, unless the beneficial owner directs otherwise.

• • Conducting background checks not only on potential employees but also on existing ones who have access to customer funds, every three years.

• • Conducting ongoing training for the employees who manage escrow accounting and funds.

ALTA’s best practices hoist the quality and professionalism of the title industry, protects consumers, and provides ongoing employee education. The benefits outweigh the consequences, but as to what extent, only time will tell. Acuity National Real Estate Solutions, LLC, provides old-fashioned professional excellence with the cutting-edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity?s services, contact us at https://ftgclosings1.wpengine.com/support.

Back in June 2013, the American Land Title Association (ALTA) came out with best practices that appeared to be a win-win for lenders and the real estate industry. As the guidelines are currently written, many small title agencies could lose their businesses due to the costs. Consequently, lenders and consumers take the brunt of fewer choices and higher costs.

The ALTA guidelines were designed as a result of the Consumer Financial Protection Bureau 2012 bulletin that declared lending institutions would be held accountable for their own actions and for the actions of third-party vendors. The purpose of the best practices is to assist lenders in making it easy to manage third-party vendors. There are seven pillars that make up the ALTA guidelines.

• Escrow
• Settlement Processes
• Insurance Coverage
• Mandates Related to Licensing
• Privacy and Security
• Policy Production
• Customer Care

These seven pillars elevate the professionalism of the title industry and encourage lending institutions to comply. As of August 1st, the best practices were implemented and met the soft deadline; however, there are four unintended consequences.

1. Confusion

ALTA procedures were meant to be mere suggestions. There are no specific guidelines to examine title companies. Consequently, much confusion has set-in with title companies because of concerns of not being able to compete in the industry without a set checklist to comply.

2. Effects on small title companies

Small companies simply can?t compete with the resources of large title companies. To meet the demands of the best practices, it will be hard, if not impossible, for them to afford the workforce to meet these compliances. Even the larger companies will have to hire people that are dedicated to assuring compliance, but once again, the smaller companies will most likely have to close their doors or merge with larger title companies due to lack of funds.

3. Less competition leads to less choice

A surge of mergers and acquisitions will most likely occur in the title industry due to the reasons explained above. Small title companies will have to merge in order to obtain compliance resulting in fewer choices of title companies for consumers and lending institutions.

4. Higher costs

Sustaining compliance requires significant funds and as business costs increase so too are consumer expenditures.

Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity?s services, contact us at https://ftgclosings1.wpengine.com/support.

Anyone that’s ever gone through the process of selling their home knows it requires quite a bit of work. You prep your home to impress potential buyers spending lots of time and money for necessary changes, such as renovations, upgrades, and improving curb appeal, but one significant mistake can dramatically distract buyers from your home. Make sure your home sales price is at its best and buyers are lining up to purchase your house with these home selling tips.

Dirt and Clutter

It might be incredibly obvious, but your home should be as spotless as possible for showings. Nothing turns a buyer off more than seeing unnecessary clutter or dirt; especially when it comes to the furniture or walls throughout the showing of a home. Try to clean and organize anything and everything in the home to the best of your ability, and get rid of any distracting or unpleasant smells. You want buyers focused on your home and property, not your untidiness.

Overbearing Sellers

Quite simply, it’s best to stay away and not be present for any showings or open house events for your home. Attending private showings and open houses can create multiple problems. Prospective buyers, for example, may feel timid or shy exploring your home or feel hesitant to ask questions to your agent. Trust that your agent knows your home well enough to sell it and communicate what makes your residence exceptional.

Wallpaper

It’s no secret that buyers despise wallpaper. Your home is no exception and that outdated, highly themed, or brightly colored wallpaper is only a distraction to the many other fabulous features of your home. Renovate your wall space by removing the wallpaper and adding a fresh coat of paint. Choose a neutral palette to create a showpiece for buyers to envision the home being their own.

Overpricing

The main idea when selling your home is to give home shoppers an inviting, attractive value that is consistent with the current market. The last thing you want is for a buyer to put your home on the back burner in hopes of the price will go down in the future. Overpricing often communicates that you just aren’t serious about selling. You want serious buyers and a good agent who uses comps to price your abode competitively will ensure that only eager buyers enter your home and present reasonable offers.

Misleading Photos

Lastly, make certain any listing photos accurately depict the various features of your home. Avoid using a wide-angle camera lens that distorts rooms and give the illusion of king-size kitchens and closets fit for a castle. This sets the buyer up for disappointment when they arrive only to find that the rooms in your house are the size of a postage stamp. Use photos that entice your buyers, not deceive them.

Acuity National Real Estate Solutions, LLC provides title and settlement services to clients all over the nation. Based out of Louisville, Kentucky, Acuity?s team of title veterans work with partners across the country to provide fast, efficient title and settlement services of all types. Contact us today at 502.238.7500 to learn more about our service. www.ftgclosings.com

There are times when problems occur with a property title that are unclear or inadvertently overlooked in public records and the title search process. An Owner’s Policy of Title Insurance protects the buyer in these unfortunate proceedings.

Owner’s Title Insurance or more commonly known as an Owner’s Policy is normally supplied in the value of the property purchase. A onetime fee is charged at closing and extends throughout ownership of the property. The buyer is fully protected with an Owner’s Policy should an issue surmount with the title.

There are several possible hidden title problems that may occur such as undisclosed heirs. Acuity explains such an example in the following story and will continue to share potential tales over the course of August.

Conflicting Wills

An Owner’s Policy of Title Insurance can be the saving grace especially during times of family conflict. An example of such a case resides in the following case.

After purchasing a residence, the excited new homeowner was startled when the brother of the seller claimed ownership. He demanded a substantial amount of money due to his argued ownership interest. The case was brought to probate court where disclosure revealed that the late mother of the brother wrote in a deed that the house was his. The written deed was placed in the brother’s drawer and never recorded at the courthouse. The deed was discovered twenty years later by the brother who now filed the deed and claimed his homeownership.

The probate court decision granted permission to remove the property from the late mother’s estate and the brother and homeowner who resided in the home after the mother’s death. The brother with the deed from his drawer appealed probate judgment and claimed the mother intended the house for him and not his sibling.

The court appeal was upheld and the once excited new owner lost the house and significant financial loss. The saving grace was the Owner’s Policy of Title Insurance purchased during sale of the home from the original brother. The title insurance company paid the claim, legal fees, and additional defense charges.

Stay tune for next week’s blog that shares another account of a common title insurance problem.
Acuity National Real Estate Solutions, LLC provides its clients 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, contact us at https://ftgclosings1.wpengine.com/support.

The real estate market has gained some air after the housing bubble burst, but the effects leave many states oxygen deprived.

The past two years have seen the most recovery with United States housing prices back to pre-burst times and foreclosures have descended.

Core Logic, a global property data firm, released figures about national real estate in the foreclosure process stating less than 650,000 are in some stage of the procedures versus one million homes just one year ago. That is a 35% decrease in foreclosure inventory.

Positive news is encouraging yet the foreclosure rate remains high in several states. According to CoreLogic, the U.S. states that account for approximately half of all foreclosures for the past year are Florida, Michigan, Texas, California, and Georgia. To slow the process down further many hard hit foreclosure states like Florida, New York, and New Jersey have laws requiring court approval before mortgage lenders can proceed with foreclosure procedures.

Jurisdiction laws are in place to protect homeowners who may have had their home taken away unjustifiably but are also slowing down the process to get those homes back on the market. There is concern over whether or not the current recovery pace can be maintained with the complexities surrounding the foreclosure market in judicial foreclosure states.

Banks are also feeling the pressure of the large foreclosure caseload. Many have neglected to keep proper real estate closing documentation. Thus, numerous homes in the proceedings remain stagnant because Banks often decide against repossession without informing homeowners of their decision. Homeowners, frequently desert their homes under the assumption they are no longer have the right to ownership and possession of their home. The home becomes what is called a zombie foreclosure, where the mortgage lender or Bank initiates foreclosure proceedings and then dismisses the foreclosure without notice.

It is estimated by the real estate data firm, Realtytrac that 21% of all homes in the foreclosure process are now zombie foreclosures. The timeline to complete court proceedings or process these properties back to the homeowners is unforeseeable.

There is more complication with the value of many homes being much lower than homeowner mortgage debt. Core Logic estimates 6.3 million or 12.7% of U.S. homes are valued at a price much lower than the credit advanced to homeowners. The new laws and regulations established by the banking system due to the bubble burst amongst many other factors have indicated it is highly unlikely for homes to reach the price gains as experienced prior to the climax of the real estate market. Consequently, a slow recovery is in the future of zombie foreclosures, values lower than mortgage debt, and the broader U.S. economy.

The real estate market has seen progress in the recent two years yet the housing bubble leftovers may linger for a while to come.

Trulia announced a new real estate app for Android wear due out in a couple of weeks. The mobile app was highlighted at the annual Google I/O 2014 developer conference where Google?s elite showcase their technology advances.

Mobile devices are speedily becoming the main resources for home seekers. Trulia is moving with the times and combining fashion and technology for a new house hunting tool painting futuristic artistic pieces of location and context. Here are the brush strokes of the Android Wear Application.

• Coming soon to Google Play as a free app
• Thumb through pictures and unlock home details from your wrist
• First access to new homes on the market
• One touch saves properties of interest to electronic devices or contacts the listing agent for scheduling a home tour.

The Android Wear app is just another one of Trulias? innovative wearable technology devices. Last June Trulia built an app for Google Glass. The application notifies users of nearby homes that meet their criteria, informs consumers of property details, and showcases images potential buyers can scan all with the slide of a finger along the Glass headset. The Trulia Glass app enables users to listen to home descriptions or call or email an agent immediately. Home shopping has never been more convenient and up-to-date.

If you are in the market to purchase a residence or sell your home, talk to your local real estate agent at Acuity (ftgclosings.com). We can help you conveniently find your dream home within your budget.