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.

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.

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.

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

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.