Kim Darwaza's Northern Virginia Real Estate Blog

Breaking News: Largest-Ever Housing Deal Will Help More Than 1 Million Homeowners

2012-02-10T18:47:00Z

RISMedia reported today that after more than a year of negotiations, the nation’s biggest banks, states attorneys general and federal officials have announced the largest housing settlement ever—more than $26 billion—over foreclosure practices. The deal is expected to offer relief to more than one million U.S. homeowners who are having trouble paying their mortgages or have lost their homes to foreclosure.

The states and federal authorities have been in discussions for more than a year with banks over the “robo-signing” crisis—the practice of assigning bank employees to rapidly approve numerous foreclosures with only cursory glances at the glut of paperwork to determine if all the documents are in order.

The settlement is with five big banks: Bank of America Corp., J.P. Morgan Chase & Co., Citigroup Inc., Wells Fargo & Co., and Ally Financial Inc., the company formerly known as GMAC.

Of the $26 billion, $17 billion must be spent toward direct relief to borrowers, with a big chunk of that—60 percent—going toward principal reductions, or the write-downs of mortgage debt, as well as other kinds of loan modifications or assistance. According to reports, the amount must be spent within three years, or banks will need to make cash payments to regulators.

Housing industry officials were quick to praise the settlement as a positive step, but cautioned that it will not resolve all the industry’s problems.

Under the terms of the settlement, $5 billion will go toward a reserve account for state and federal programs and to individual homeowners harmed by bank practices. Negotiators have said that about 750,000 people could receive checks for about $1,500 to $2,000.

About $3 billion will go toward helping borrowers who are current on their mortgages but have no equity in their homes to refinance into new, lower-cost loans. The program will be similar to an existing Obama administration program that seeks to help underwater homeowners.

Two key states crucial to the settlement—California and New York—had been holdouts to the deal amid round-the-clock negotiations as late as Wednesday.

According to reports, there are nine other financial institutions with mortgage servicers that are in discussions with states and federal regulators, and if they are included, the final settlement could increase by billions of dollars. If these other servicers participate, the total settlement could rise to between $30 billion and $45 billion in housing relief, reports said.

The next step is for the settlement to be filed as a judgment in federal court within a couple weeks. The court will need to approve the judgment. After that, servicers will be obligated to write a check and deposit some funds into an escrow trust that will distribute cash to federal governments and states.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com

Open House in Fox Mill Estates on Sunday

2012-02-06T16:39:00Z

Fox Mill Estates, Herndon - We invite everyone to visit our open house at 12903 Fraternal Court on February 12 from 1:00 PM to 4:00 PM.

Property information

Homebuyers Move off the Fence as Mortgage Rates Drop Yet Again

2012-02-03T04:30:00Z

If you’ve been considering buying your first home or moving up to a larger home, conditions have once again turned in your favor. According to Bankrate.com's weekly national survey, mortgage rates hit yet another record low, with the average 30-year fixed mortgage rate falling to 4.12 percent. The average 30-year fixed mortgage has an average of 0.29 discount and origination points.

Meanwhile, the average 15-year fixed mortgage retreated to 3.34 percent, while the jumbo 30-year fixed mortgage slid to 4.55 percent. The average 5-year and 7-year adjustable mortgage rates dropped to 3.02 percent and 3.24 percent, respectively. All of these are record lows.

This most recent drop in rates was just announced by Ben Bernanke and the Federal Reserve, along with a pledge to keep short-term interest rates on hold until late 2014. However, given the continued volatility in the market, along with the unpredictable nature of a presidential election year, if you’re considering a home purchase or a refinance, act quickly to take full advantage of low rates.

Bankrate points out just how significant these historic rates really are. Think about this: The last time mortgage rates were above 6 percent was November 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now at 4.12 percent, the monthly payment for the same size loan would be $968.72, a difference of $273 per month for anyone refinancing now.

Here are other important specifics from Bankrate's national weekly mortgage survey:

30-year fixed: 4.12 percent - down from 4.25 percent last week (avg. points: 0.29)
15-year fixed: 3.34 percent - down from 3.45 percent last week (avg. points: 0.30)
5/1 ARM: 3.02 percent - down from 3.09 percent last week (avg. points: 0.31)

If you’d like to take advantage of these incredible market conditions, remember to do the following before embarking on your home search:

Make sure your finances are in order and your credit is in good shape.
Research homes in neighborhoods you’re interested in online first to help narrow your selection. This will save time when viewing homes in person, allowing you to place a bid faster.
If you need to sell your current home first, contact a real estate professional right away to find out what repairs/improvements you might need to make before putting your home on the market.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com

Friday Mortgage Brief - Friday, January 27, 2012

2012-01-29T18:14:00Z

The Friday Brief

Outlook for Interest Rates-Clipped from the Wall Street Journal

__________________________________

News Alert

from The Wall Street Journal

Federal Reserve officials Wednesday said they expect short-term interest rates to stay close to zero "at least through late 2014," longer than previously indicated, a move that could aid the U.S. economy's path to recovery.

Ahead of the rollout of their new communication strategy, officials projected that rates could stay at a record low for three more years as unemployment comes down slowly and inflation moderates.

http://online.wsj.com/article/SB1000142405297020380650457718294162192678

0.html?mod=djemalertNEWS

From Bruce

Nothing contributes so much to tranquilize the mind as a steady purpose-a point on which the soul may fix its intellectual eye. -Mary Shelley

Have a great weekend,

Bruce

Bruce Rosenberger

Chairman's Team

SunTrust Top Producer Network-Top 30 Loan Officer's Nationwide SunTrust Mortgage, Inc Cell 703.850.1349

Buying or Selling a Home in Northern Virginia? Contact Kim Darwaza of RE/MAX Allegiance for all of your Real Estate needs at 703-856-2254 or kim@kimdarwaza.com. To search the MLS please visit http://www.kimdarwaza.com.

What You Need to Know Before Refinancing

2012-01-27T16:39:00Z

During his State of the Union address on Tuesday, President Barack Obama called on Congress to approve new legislation that would give all homeowners who are current on their mortgages the opportunity to refinance at record-low mortgage rates.

While details of the program have yet to emerge, the new legislation - in theory - is designed to give responsible homeowners a reasonable chance to refinance without running into roadblocks from lenders. This would also give homeowners an opportunity to take advantage of today’s continued, record-low interest rates.

According to CoreLogic, a company that tracks national mortgage activity, an estimated 28 million homeowners could cut the interest rates on their loans by more than one percentage point if they could refinance. If you’re one of the many homeowners considering a refinance, here are some important facts you need to know first. Be sure to consult with your real estate agent and/or financial advisor, as well.

Make sure you are in good standing on your mortgage. As the President emphasized, refinances will be considered for those homeowners who have a good payment history and are current on their mortgages. If you’re currently underwater, a refinance is probably not an option for you. Consult your real estate professional about other options, including loan modifications and short sales.
Check your current credit score. Refinance candidates need to demonstrate steady income and good credit. Make sure your credit rating is up to snuff and see what immediate measures can be taken to improve it if it’s not.
Examine how much longer you plan to live in your home. If you are planning to put your home on the market in the near future, refinancing probably doesn’t make sense. You need to make sure you’ll be living in your home long enough to recoup the closing costs of the refinance.
Consider the length of the loan. Where you’re at with your current mortgage can play a significant role in your decision to refinance. If you’re close to retirement, for example, and your loan is almost paid off, refinancing could result in extending the life of your loan, ultimately costing you more. Also, if you're several years into a 30-year mortgage, your goal should be to refinance into a 15- or 20-year mortgage instead. Otherwise, you’re extending the number of years in which you’ll pay interest. Your refinancing goals should be short-term and long-term savings.
Find out the costs involved. Before you plunge into a refinance, find out the costs involved. Weigh these fees against the money you will save (contingent upon how long you plan to stay in your home) to make sure refinancing is the right step.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com

3 Story For Sale in Penderbrook

2012-01-26T16:08:00Z

The "Gem" of Penderbrook

• 1,757 sq. ft., 3 bath, 3 bdrm 3 story - MLS® $420,000 - Reduced!

Penderbrook, Fairfax County - Beautifully Maintained, 3-Level Townhouse featuring 3 Bedrooms, 2 1/2 Baths and Garage in Sought-after Penderbrook Golf Course Community.

OPEN SUNDAY JANUARY 29TH 1-4 PM!

Fantastic Community amenities including Clubhouse for Private Parties, Outdoor Pool w/Party Room, Sauna, Fitness Center, Tennis and Basketball Courts. Close to Shops and Restaurants.

Directions from 66 West: Route 50 West, West Ox Road North, Right Penderbrook Drive, Right South Penderbrook Drive, Left Clares Court, Right Matthews to home on Left.

Property information

Price Reduced on 11918 Matthews Court in Penderbrook

2012-01-26T16:08:00Z

Penderbrook, Fairfax County - Announcing a price reduction on 11918 Matthews Court, a 1,757 sq. ft., 3 bath, 3 bdrm 3 story. Now MLS® $420,000 - Reduced!.

Property information

Rental Market

2012-01-24T19:13:00Z

I just read this in my Jean Chatzky weekly email and thought that it was worth sharing. The rental market has been tight in Northern Virginia for over a year and I am finding that the good properties go very quickly and have multiple applications. This is good if you own an investment property! I am finding with the number of short sales that these sellers will then have to rent for about three years which is creating more renters and fewer rentals. If you are in this category of renters I would definitely ask your landlord to report your ontime payment to help boost your credit score.

Surviving a tough rental market

In and around where I work in New York, I frequently hear renters complaining about how hard it is to find a good, affordable apartment in the city. But while the vacancy rate in Manhattan hovers around a mere 1%, the rental landscape on the national level isn’t much better. According to this Wall Street Journal article, the nationwide vacancy rate is 5.2%, the lowest it’s been in over a decade. This is in large part due to the housing crisis that has left many Americans unable (or just unwilling) to buy their own home.

The good news is that it is possible to find a decent rental property for your budget -- it just takes a little creativity. Consider the amenities you’re willing to forgo (apartments on lower floors, for example, are a bit more expensive), and don’t be afraid to ask your real-estate agent if he or she is really showing you the least expensive properties in the area.

Finally, keep in mind that regular rent payments can now boost your credit score. As of December, the credit-reporting agency Experian is taking into account your rent payment history. If your landlord reports that you have met your lease obligations within the past 24 months, this information will help you rebuild your credit. If your landlord hasn’t been reporting to Experian, you can ask him or her to start doing so -- and then proceed to watch your credit reap the benefits!

3 Story For Sale in Fox Mill Estates

2012-01-22T15:23:00Z

Totally Remodeled!

• 2,332 sq. ft., 3 bath, 4 bdrm 3 story "Colonial" - MLS® $495,000

Fox Mill Estates, Herndon - Beautifully remodeled 4 Bedroom 2.5 Bunker Hill Model Single Family Home on large cul-de-sac lot in highly sought after Fox Mill Estates Community.

OPEN SUNDAY, JANUARY 22ND 1-4 PM!

Directions: From Fairfax County Parkway North, Left West Ox Road, Right New Parkland Drive, Right Lyme Bay Drive, Right New Banner Lane, Right Fraternal Court to home on Right in Cul-de-Sac

Property information

10 Money-Saving Tips for 2012

2012-01-20T01:45:00Z

When it comes to improving your financial picture, small steps can yield big gains. Whether you’re saving for a down payment or dealing with increased expenses having just moved into a new home, the following tips from SWparents.com are great ways to save money in a variety of areas. Start today and you’ll quickly notice the positive impact on your bottom line:

You’ve probably heard this since you were a kid, but really…turn off all lights when you leave a room. Train your kids—usually the worst offenders—to do the same.
Have an honest conversation with yourself: If you haven’t used your gym membership in more than six months, cancel it. You can always rejoin and probably take advantage of a better deal when you do. Some gyms will even offer to “freeze” your membership, allowing you to pick back up after a certain period of time.
Save Starbucks and the like for a special treat. If you buy a $4 coffee five days per week, that’s $80 per month. Record your coffee-buying expenses for a month and see what your own personal damage is…then adjust accordingly!
Ditto for lunch. Even grabbing a burger at a fast-food chain adds up. Start packing your lunch instead. An easy way to accomplish this is by cooking extra at dinner or on the weekends, then packing lunch-sized portions in advance. If you’re banking on making lunch during the morning rush, odds are you’ll run out of time and end up buying lunch instead.
Do everything you can to increase your credit score. You will save tens of thousands of dollars in interest from any loans you have simply by having a better credit score.
Call every company you have monthly bills with and ask exactly what you are paying for each month. You will be surprised how many hidden fees are mysteriously added to your bills. You will never know this unless you ask.
Consider paying interest-bearing loans twice a month instead of once a month. You might be able to knock thousands of dollars off your total bill. Arrange automatic payments with your bank on the first and the 15th of each month.
Don’t leave the water running while brushing your teeth or shaving in the shower.
Odds are you can reduce your cable bill. With the plethora of options for on-demand and online viewing, chances are you no longer need 200 channels and three DVR boxes.
Buy anything and everything you can from second-hand stores. Second-hand doesn’t have to mean poor quality. In fact, most people donate items to these outlets because they are unused or hardly used, making it wasteful for them to be disposed of. Utilize this strategy with kids, who grow out of clothing and shoes at a rapid rate. Many teens also love shopping at second-hand stores where they can get the most bang for their buck, along with vintage or retro items.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com

Friday Mortgage Brief - Friday, January 13, 2012

2012-01-16T18:33:00Z

SunTrust Portfolio Products-True Jumbo Money

SunTrust has recently made a push to leverage Mortgage to bring in new banking clients. This has made a big impact to our SunTrust Portfolio Rates. For our true JUMBO loan programs, our SunTrust Portfolio Products, loan amounts from $625,500-$3,000,000. there is an incentive for our mortgage clients to also bank with SunTrust and they don't have to cut ties with their existing bank. They simply have to open a free checking account and pay their mortgage using SurePay where the mortgage comes out automatically from their SunTrust checking account.

What's the payoff? A .25% reduction to the RATE. On loans up to $3,000,000. that is a significant amount off your buyers monthly payment.

I've gone head to head against Wells, BOA, and others and have found our JUMBO RATES when they take advantage of the .25% Rate Reduction....I won't say unbeatable but I will say EXTREMELY ATTRACTIVE.

From Bruce

Decide upon your major definite purpose in life and then organize all your activities around it. Brian Tracy

**SunTrust is closed on Monday for Martin Luther King's Birthday. Have a great Holiday Weekend!**

Have a great weekend,

Bruce

Bruce Rosenberger

Chairman's Team

SunTrust Mortgage, Inc

Cell 703.850.1349

Renovating? Why Building Codes are Critical

2012-01-13T02:13:00Z

I think this article is so important because I have had many sellers who have done work to their homes without pulling permits. One client finished their basement and the purchaser asked for the permits so they had to go back and do work to the property to bring it up to code which cost them $10k!

We’ve all heard horror stories about the remodeling project that needs to be torn down or redone because it didn’t live up to code. While many believe that investigating building codes is too confusing, time consuming and costly, the consequences of not getting the necessary permits before starting a construction project are both upsetting and expensive.

Securing a building permit before you start planning a renovation can also prove critical should you sell your home in the near or distant future. Potential buyers could request proof of permit for that room above the garage you added. Not having one is a risk most buyers wouldn’t want to absorb.

Building codes were designed to set public-safety standards for things like construction, maintenance, use and occupancy. Codes address all aspects of construction, including structural integrity, fire resistance, safe exits, lighting, electrical, energy conservation, plumbing, ventilation, and correct use of construction materials.

In order to make a change to your property, you need a permit that states your renovations coincide with all applicable building codes. Permits may be needed to cover projects such as the installation of foundations and sprinkler systems, the addition of a porch or deck, changes to driveways and room additions. These codes are modified often, and established and enforced by government officials or politicians. Enforcement tactics can include denying permits, occupancy certificates, or imposing fines.

Codes vary with location—each state, county, city and town can have their own specialized codes for things like electricity, plumbing, construction and fire. Typically, each code or permit requires separate inspections and inspectors. Inquire with your city hall to find out the correct department and process for securing permits.

Some homeowners avoid securing a building permit to avoid a potential increase in property taxes should the renovation result in an increase in the assessed value of the property. However, the extra precautionary step is vital and ensures you won’t suffer from repercussions such as hefty fines, or having to tear down your new deck due to improper construction or zoning. Taking the time to check on your local building codes and obtaining a permit will help ensure your renovation project goes smoothly.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com

Tips for Buying a HUD Home

2012-01-10T20:36:00Z

I thought I would pass along some great tips on how to help buyers purchase a HUD home. The tips are a little lengthy but they will definitely help guide your buyers down the right road if they want to purchase a REO (real estate owned) property from HUD.

* A list of homes can be found on www.hudhomestore.com

* An independent FHA-approved appraisal along with an inspection are generally completed within two weeks of acquisition of the property and the reports are sent to the Regional Office. A Property Condition Report (PCR) is then listed and available in the bidding system for buyers and brokers to download. Important: The PCR should not be used in place of an inspection performed by a licensed inspector; however, I highly recommend the review of the PCR prior to putting a bid on the home. Once the FHA appraisal and PCR are completed, a Disposition Plan is determined and the house is initially listed at the appraised value, according to the FHA financing category that is appropriate, given the current condition of the property. It is important to understand the listing codes and how financing is affected (see below "Three Types of HUD Homes").

* When coming to a value for HUD Homes, appraisers are required to use other foreclosed properties in their calculation.

* There are three types of HUD Homes:

Insurable (IN)- Properties listed in this category appear to meet FHA 203(b) financing requirements. No obvious repairs are necessary for HUD to insure an FHA loan to a qualified Purchaser.

Insurable with Repair Escrow (IE)- If 203(b) FHA is the financing, the repair escrow must be used for the needed work specified in the listing. In completing the Sales Contract (HUD-9548), the escrow amount is NOT deducted from the net to HUD to derive the amount that will be entered on line #7, NOR is it added to line #3, the purchase price. There is a separate line in Item #4 for the repair escrow amount to be noted.

It is important to note that if a 203(b) FHA is the financing, the lender will add in the repair escrow into the base loan amount of the mortgage (as required by HUD). The lender originating the FHA 203 (b) loan establishes an escrow account for the amount of the repairs. The amount given with the listing includes a 10% contingency. After close of escrow, the lender will inspect work as it is completed on the house and distribute the repair monies as appropriate within ninety (90) days. The cost of the repairs are included in the loan amount and repaid by the borrower as part of the house payment. Any funds in the escrow account not used for the repairs will reduce the unpaid principal balance of the loan.

Note also that properties listed in this category are eligible for a 203(b) FHA loan with required "minimum property standard" (MPS) repairs totaling less than $5000 to be made by the Purchaser, financed by the FHA lender.

Note that the repair escrow only applies to FHA 203(b) financing. If non-FHA financing is used, or if a cash purchase is made for an IE property, the repair escrow does not apply.

Uninsurable (UI)- Properties listed UI, uninsurable, need more extensive repairs after close of escrow and are deemed not eligible for FHA mortgage insurance in their "as-is" condition. Cash, or other financing not involving FHA, is often used to purchase UI properties. However, a special acquisition and rehabilitation FHA loan program called 203(k) is frequently an excellent source of financing for homes in the owner-occupied category.

Note on FHA 203(k) Financing: UI properties are generally eligible for the FHA 203(k) loan program (most condos are excluded, unless specifically noted otherwise). Also, any IN or IE property may be purchased subject to 203(k) financing, instead of 203(b), if the house and the owner-occupant Purchaser's credit justify making improvements in excess of $5,000. Through this program, the lender can provide funds for rehabilitation along with the purchase mortgage.

* FHA loans- Can ONLY use the HUD appraisal. Another appraisal CANNOT be ordered if the buyer is utilizing an FHA mortgage. If the buyer is purchasing a HUD Home and not utilizing an FHA mortgage, then an appropriate appraisal will need to be done (i.e., if buyer is going VA, then a VA appraisal will need to be done; if buyer is going Conventional, then a Conventional appraisal will need to be completed).

* If 203(b) FHA is the financing - and the buyer bids above the listed price- the difference must be paid in cash and cannot be financed (i.e., If HUD has the house listed for $100,000 and the buyer bids $103,000- the $3000 will be paid out of pocket (as well as any other required down payment, closing cost and prepaids). If FHA financing is being used to purchase a HUD Home, the sales Price cannot be increased past the list price to cover closing cost or to make certain that the buyer gets the bid unless the buyer wants to pay the increased amount in cash.

* If 203(b) FHA is the financing, HUD does not require the buyer to obtain another appraisal, have a survey or purchase a owner's title policy (although one is highly recommended).

* HUD will only pay a maximum of 3% towards buyers closing cost and prepaids (if it is put in the contract and accepted by HUD). Note that if the buyer chooses to obtain an owner's title policy, HUD will only pay it if it is part of the up to 3% allowed (and only if it is put in the contract and accepted by HUD).

* The buyer is given 45 days from the date of the executed contract (the date that a representative from HUD actually signs the contract). However, it is important to note that closing docs must be to the title company a minimum of seven business days prior to closing. HUD chooses the title company. Extensions after 45 days can possible be obtained from HUD, however, penalties apply.

As always, please fee free to call me with any questions or to prequalify any of your buyers.

Have a great weekend!

Tammi Lewis

Senior Loan Consultant

1st Mariner Mortgage

Cell#: (410)725-9451

Fax #: (443)296-9132

The Friday Mortgage Brief - Friday, January 6, 2012

2012-01-09T14:51:00Z

I always get a lot of questions about rates so I thought I would share this information with you...

The Friday Brief

by Matthew Graham

http://www.mortgagenewsdaily.com/members/mgraham/default.aspx>

Tax Cut Extension Now Officially Raising Mortgage Rates Jan 4 2012, 10:27AM As part of the temporary resolution to the recent battle over the Tax Cut Extension that took place in the last weeks of December, Congress decided that mortgage borrowers should foot part of the bill.

Technically, Congress increased the "Guaranty Fees" that Fannie Mae and Freddie Mac charge to lenders that securitize MBS

(Mortgage-Backed-Securities) <

http://www.mortgagenewsdaily.com/mbs/>

with the Agencies, but ultimately, this cost must either be absorbed by lenders, passed on to consumers, or some combination of the two.

From the official release on 12/29/11:

"On Dec. 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this new law directs the Federal Housing Finance Agency (FHFA) to increase guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises) by no less than 10 basis points from the average guarantee fees charged by these companies in 2011 on single-family mortgage-backed securities. This requirement is effective immediately, meaning that the average guarantee fees charged in2012 need be at least 10 basis points greater than the average guarantee fees charged in 2011."

The first official effects of these measures were seen today when BB&T distributed information to it's brokers and correspondents regarding the impacts of the fee increase. In the announcement, BB&T explains that the 10 basis point increase in the Guaranty Fee or "G-Fee" as it's called, equates to a pricing difference of 30-40 basis points in terms of cost/rebate or roughly 0.125% in rate.

Definition of 'Guarantee Fees'

Fees charged by mortgage-backed securities (MBS) providers, such as Freddie Mac and Fannie Mae, to lenders for bundling, servicing, selling and reporting MBS to investors <

http://www.investopedia.com/terms/g/guarantee_fees.asp> . The main component of the guarantee fee is charged to protect against credit-related losses in the mortgage portfolio (think of it like MBS insurance), but small sub-fees are also deducted to cover internal expenses for such services as:

-Managing and administering the securitized mortgage pools -Selling the MBS to investors -Reporting to investors and the SEC -Maintaining the MBS on the open market, and selling, general and administrative expense

**I have had a number of realtors and clients ask me about this during the week. This adjustment was priced into our SunTrust rates on Tuesday. This has had very little impact. Rates are still near historic lows and it is a fantastic rate environment for buyers!!

From Bruce

The secret of success in life is for a man to be ready for his opportunity when it comes. -Benjamin Disraeli

Have a great weekend,

Bruce

Bruce Rosenberger

Chairman's Team

SunTrust Mortgage, Inc

Cell 703.850.1349

4 Ways Your Credit Card Agreements Could Change - for the Better

2012-01-05T20:19:00Z

Credit is so important when buying a home so I thought this was worth sharing...

Do you remember the last credit card you signed up for? More importantly, do you remember the actual contract? While credit card agreements outline such essential information as costs, features, and terms of the product, they are often long, complicated, and written in legalese. Unfortunately, key information about interest rates, fees, billing, and payments is often surrounded by legal fine print.

That’s why the Consumer Financial Protection Bureau (CFPB) launched the Know Before You Owe project, a program designed to provide better consumer transparency in several areas, such as credit card agreements, so that consumers could have a better understanding of the prices, risks, and terms involved before signing on the dotted line.

According to the CFPB, there are an estimated 514 million credit cards in circulation in the United States. Americans used their credit cards to spend an estimated $1.9 trillion in 2010, and credit card debt is estimated at $700 billion dollars. The CARD Act, which was signed into law more than two years ago, was passed to make credit card costs more reliable—with less risk of unexpected rate increases or other charges.

But despite this progress, a recent study by J.D. Power found that roughly two-thirds of cardholders say they don’t completely understand how their cards work. And, as indicated in a recent CFPB report on credit card complaints received by the Bureau from July 21 to October 21, 2011, difficulty understanding the terms of their cards is a contributing factor in many consumer complaints.

With this in mind, the CFPB has created a prototype credit card agreement that is shorter, written in plain language, and explains key features upfront. This prototype is scheduled to be tested with the Pentagon Federal Credit Union to get on-the-ground consumer feedback before it becomes official.

Here are the four key improvements the CFPB prototype offers:

Shorter: The CFPB’s prototype is shorter – its word count is about 1,100 words, while the industry average for a credit card agreement is around 5,000 words.
Clearer: The draft credit card agreement has an easy-to-read layout and is written in plain language. It is organized into three simple sections: costs, changes, and additional information.
More consumer-friendly: The simplified agreement explains the prices, risks, and features of the credit card upfront, as opposed to burying it in fine print.
Consistency: The prototype establishes standard definitions for legal terms like “card” and “balance transfer” that are contractually necessary but largely uninformative to consumers. These definitions are based on standard industry usage and practices and will be housed online where consumers can readily access them. For consumers who do not have Internet access, the definitions will be available from their issuer in printed form. According to the CFPB, doing this allows for a plain language document that clearly explains to consumers how the credit card works.

For more information about Know Before You Owe, and to view a copy of the prototype credit card agreement and the database, visit www.consumerfinance.gov.

Sincerely,

Kim Darwaza
Kim@KimDarwaza.com
RE/MAX Allegiance
Office: 703-856-2254
Mobile: 703-856-2254
http://www.KimDarwaza.com