HUD has released Mortgagee Letter 2008-09 which announced new limits on cash-out refi’s. The new loan-to-value (LTV) ratio may not exceed 85% of the estimate of value if the loan balance is to exceed $417,000.
The letter also states that any loan where the amount of the loan exceeds the conforming loan limit of $417,000 (January 1st, 2008 limits) and the LTV exceeds 95% of the estimate of value and the property is determined to be in a declining market by the appraiser or the lender, then a second appraisal will be required.
These new rules are designed to protect the Federal Housing Administration which will now be in a position to guarantee larger loans than it has previously. The letter also describes how a declining market is determined.
>>>>> Click Here to read Mortgagee Letter 2008-09
April 8th marks the final day for public comment on the Proposed Rule Amending Regulation Z. The Federal Reserve recently put forth the proposed amendment which is the Regulation that implements the Truth in Lending Act as well as the Home ownership and Equity Protection Act.
As written, the new rule would require disclosure from Mortgage Brokers as to the specific dollar amount that the broker would earn from a transaction. This disclosure would be required to occur prior to any fee being paid by the consumer and before loan application.
Click here to read the proposed rule. All interested parties are welcome to make comment on the proposed rule to the Federal Reserve. To make a comment, email The Board of Governors of the Federal Reserve System and identify “Docket No R-1305″ in the subject line of the email.
Email address: regs.comment@federalreserve.gov
The new RCA Report from REALTORS® Commercial Alliance (Winter 200 
has been made available online at the Realtor.org web site. This report discusses the first decline in NAR’s Commercial Leading Indicator (CLI) (0.1% in the third quarter of 2007) after nine consecutive quarterly increases. This, according the report, indicates moderate contraction in the commercial markets over the next six to nine months.
The report also discusses the Energy Independence and Security Act of 2007 which includes the development of a “Zero-Net-Energy” initiative that would eventually apply to all U.S. Commercial buildings by the year 2050. Read the RCA Report from REALTORS® Commercial Alliance to learn more about these and other Commercial issues in real estate.
>>>>> RCA Report from REALTORS® Commercial Alliance
The IRS announced today that they will begin sending out the more than 130 million economic stimulus payments as early as May 2nd. The payments will be sent weekly through early July. The IRS expects to make up to 34 million payments within the first few weeks of May. The majority of those receiving payments early will be those whose returns are received and processed by April 15th, and who have elected Direct Deposit on their Federal income tax returns.
It was also announced that the IRS created a new online calculator designed to estimate the amount of a taxpayers stimulus payment based on the payment schedules. Click here to use the on-line calculator.
There is also a podcast from the IRS that discusses the economic stimulus payments. To listen to the podcast, Click here.
When the list first arrived indicating that the Los Angeles market was in fact the least affordable housing market in the country, not many were shocked. Upon reading that average median home price would cost the average median wage earner more than 75% of their income, shock started to set in.
LA isn’t alone, however, and California is leading the charge when it comes to NOT being affordable. 6 of the least affordable housing markets in the country are in California, led by Los Angeles. In a recent bizjournals article, To find affordable homes, head away from California, G. Scott Thomas wrote that when looking for affordable housing you should “start your search with this three-letter rule of thumb. ABC. Anywhere But California.”
Think it’s better on the other corners of the country? How about no. New York City, Miami-Fort Lauderdale and Boston are also on the top 10 list of most expensive home markets. Looking for something a little less expensive? Try Oklahoma City, where your percentage of housing payment as a share of income is only 19% according to the Bizjournals list of 10 least affordable housing markets
You can view the list of the 10 most expensive housing markets online as well. Bizjournals has also listed the rankings for the Top 50 markets and made those available online as well.
