Has your mortgage professional talked to you about the HVCC?

This is not about your HVAC (Heating Ventilation and Air Conditioning). This is about the HVCC which stands for the Home Valuation Code of Conduct. You can do your own search for its hsitory and draw your own conclusions about its need. But the reality is that the HVCC takes effect on Friday, May 1st, 2009 and it will have an effect on your next mortgage. This Code is currently only directly related to loans originated by mortgage brokers and to conventional loans - those delivered to Fannie Mae & Freddie Mac - originated mortgage bankers. FHA, VA, USDA and some other programs are not required to comply, but many lenders will choose to do so for sake of consistency.

The Home Valuation Code of Conduct essentially puts a wall between mortgage lenders and appraisers so that there can be no influencing of appraisers to manufacture false values. This is well intended and may seem like a small, behind the scenes change. But, in practice the HVCC will make your loan take longer to obtain.

Do not make the mistake of not asking your mortgage lender about the HVCC and how it will effect you.

Mortgage brokers are the ones most impacted since they are seen as having no "skin in the game". Mortgage bankers fund the loans in their own name and have some risk. Mortgage brokers will no longer be able to engage appraisers directly at all. If the broker needs to take your loan to another funder, he will have to order a new appraisal from a different appraisal management company. This will cost you more money. (Note: This post is not intended to enflame or start a debate on the merits of working with a mortgage banker vs. a mortgage broker. This is only intended to inform of the facts of how the HVCC impacts borrowers.)

What is the direct impact to Oklahoma consumers and Realtors who are not getting an FHA/VA,USDA loan OR who are working with mortgage brokers?

• It means that you can’t expect an appraisal to be done in 3 days any more if you are if you are working with a mortgage broker.
• It means that you can’t get an appraisal done with one lender and take it to another lender if you are working with a mortgage broker.
• It means that your mortgage broker no longer has “control” over which appraiser and/or the quality of the appraisers. That control has probably all been relegated by an appraisal management company.
• It means that your either your appraisal will cost more or the appraiser will make less if it is ordered through an appraisal management company.
  
• It means that it’s important to work with a mortgage banker who is on top of things and plans ahead - such as ...

Tim Epps

Fairway Independent Mortgage

918-528-4010

Tim@MyFairway.net

First-Time Homebuyer Seminar - How to get $8000 to buy the home you want!

You will hear about options like: 

•       $8,000.00 tax credits & more
  
•       Lowest interest rates in 40 years
  
•       Bank owned homes
  
•       How to find and get the best deal
  
•       Available homes in your price range
  
•       Meet with industry professionals (Mortgage Lender, Realtor, Insurance Agent) that can show you how to get started
  
•       Q & A session to answer all your questions
  
•       No obligation necessary
  
•       Convenient to all at TCC Southeast campus
  

Event will be held Saturday, April 25, 2009 from 10AM to Noon.

You will be out in time to attend open houses and find your new home!

Call or e-mail TODAY to register – Seating IS limited!

918-528-4010 or Tim@MyFairway.net

Brought to you by:

Tim Epps - Fairway Independent Mortgage - 918-528-4010

Dean Dretske - Keller Williams Realty - 918-340-8303

John Buchanan - Country Financial - 918-481-6900

Mortgage Help Available For Tulsa Homeowners

Mortgage Help Available For Tulsa Homeowners

Posted: March 5, 2009 04:13 PM

Updated: March 6, 2009 07:39 AM

FEATURED VIDEO Mortgage Help Available For Tulsa Homeowners

By Scott Thompson and Dan Bewley, The News On 6

TULSA, OK -- President Obama's $75 billion mortgage relief plan is aimed to help close to 9 million homeowners refinance their mortgages.

Real estate Web site Zillow.com says 38 percent of homeowners in Tulsa and Creek counties are eligible for part of the plan.

But a local mortgage banker says it may not be the best option for area homeowners.

The plan includes two programs and is intended to help one in every nine U.S. homeowners.

One program is aimed to help homeowners with a loan through Fannie Mae or Freddie Mac refinance their loans to lower or fixed interest rates.

The other program allows for the loan to be modified and has strict qualifications: you must have signed your mortgage before Jan. 1; you must be the owner and live in the home; you can't owe more than $729,750 on the loan; you must be able to prove that you can't pay the mortgage because of a financial hardship, like a reduced income or medical problems; and your monthly payment must be more than 31 percent of your monthly income.

Tell us your story. Click here if you plan to use the President's plan to refinance your home.

Not everyone thinks the plan will make a difference.

"I am dubious as to how much it will be able to help even on a national basis," said Tim Epps, a mortgage banker with Fairway Mortgage.

Epps says Tulsa remains insulated from the national housing crisis.

"We've actually still had year over year growth over the last eight years ... moderate, small, but it's been responsible growth," he said.

The numbers back him up. Zillow.com says 5 percent of Tulsa mortgage holders are underwater, meaning they owe more than their home is worth.

The national average is 20 percent.

Epps says there are other options in the area. With interest rates dipping about 5 percent, he recommends homeowners contact their mortgage broker professional and ask for a simple refinance.

He says it may be easier than the government's new plan.

President Obama's mortgage relief plan is intended to help one in every nine U.S. homeowners.

Zillow.com says 5 percent of Tulsa mortgage holders are underwater.

Tim Epps says the mortgage relief plan may not be the best option for area homeowners.

MORE LINKS Financial Stability Web Site Zillow.com Tim Epps 918-528-4010 Tim@MyFairway.net

Black Swans, Pink Dolphins, & the Making Home Affordable Program for Oklahomans

Okay.  It is out. The Obama administration's plan to help homeowners that are underwater (owe more on their home than what it is worth). Will this plan help Tulsa homeowners?

The Tulsa market (as well as the whole state of Oklahoma) has enjoyed fairly stable appreciation of their home values over time. Most of what we get exposed to in the national press refers to the Case-Shiller Index which studies value change in the largest 10 and largest 20 markets in the entire USA. Unfortuneately, our local media often runs the national report each month without reporting the local data that is so important to our local market. While all mortgages are national (subject for a future post), all real estate is local. Even the data that is presented here from Zillow is for the Tulsa MSA (Metropolitan Statistical Area) as a whole. Individual communities (Jenks, Broken Arrow, Owasso, etc.) and even subdivisions will see some differences from the MSA data, but it provides a good basis for our market in comparison to the national values.

The chart below shows that home values have made responsible, steady growth in the Tulsa MSA over this decade. And, while median owner equity has fallen (partly because new buyers are putting smaller amounts down), the Tulsa, OK MSA is not experiencing the extent of negative owner equity being reported elsewhere in our country.

This graphic shows that there is one area of our market that reports over 10% of homeowners having negative equity, or underwater with their mortgage. As with the data above, we are well below the Case-Shiller numbers as well as the national averages.

So, how will Making Home Affordable plan help Tulsans and other Oklahomans with their mortgages? Fewer than most will be able to take advantage of this program. Given our market conditions we are the black swan or pink dolphin of the nation's real estate condition - a beautiful rarity.

Mortgage rates are still very low and most homeowners in our area can qualify for a great refinance without one of these new programs. If you have any questions about whether or not you could benefit from refinancing, call me for a no-obligation consultation.

Check back later for more details (they still are sketchy) on the program, including the Home Affordable Refinance Program, and what it may be able to do for you and your mortgage here in Tulsa, OK. If you can't wait, you can read the fact sheet.

Tim Epps

918-528-4010

Tim@MyFairway.Net

The $8000 First Time Home Buyer Tax Credit Explained

NOW we can finally talk about it since President Obama has signed the ARRA (American Recovery and Reinvestment Act of 2009). After some fits and starts, higher credits approved and removed, etc., the final details were worked out to the betterment of First Time Home Buyers. The act is for buyers who purchase after January 1, 2009 and before December 1, 2009.

What are the major differences affecting Oklahomans?

1. First Time Home Buyers (and those not owning a home in the past 3 years) will now get a tax credit of 10% of the purchase price of their home up to a maximum of $8000.
2. NO REPAYMENT or recapture if home is maintained as your primary residence for 3 years.

This is great news for those in our market looking for their first home.

Now, go FIND YOUR HOME while rates are still great as well.

Call to discuss how this can help you with your purchase (or with the sale of your home to a first time home buyer). As always, also consult a tax advisor for your specific situation.

Tim Epps

918-528-4010

Tim@MyFairway.Net