Return to Home Ownership, a work shop for people that have lost their home

For those that have lost their home because of bankruptcy, foreclosure, short sale or other financial event, a Return to Home Ownership is easier than many of them may think.

The “Return to Home Ownership” no obligation, no pressure, educational workshop will help people that have lost their home to bankruptcy, foreclosure, short sale and other derogatory credit events to create a path to buying a home.  The date and time for this no cost event is May 19, 2015 at 7:00 to 8:00 pm.  It is being held at the offices of Real Estate One, 26236 Woodward Avenue, Royal Oak, Michigan.

Home ownership is one of life’s biggest dreams.  It can be a deeply satisfying experience.  It provides a sense of security and control over the lives of the owners and their families.  It also provides both a tax deduction for the mortgage interest and property taxes as well as a return on investment over the long term that out performs most other safe investments.

Many people in the last housing downturn and slow economy lost their homes.  Foreclosure, short sale, bankruptcy and many other events forced them to leave their cherished home.  Job loss and other credit issues also placed pressure on the family resources forcing them to sell their home.  Now, they are renting and not taking advantage of all the benefits of home ownership.

For someone that lost a home, they may think that it is impossible to overcome the loss and Return to Home Ownership.  But, not only isn’t it true, recovery is much easier than most people think.

The “Return to Home Ownership” no obligation, no pressure, educational workshop will provide the information and tools needed to create a path to home ownership.  It will address:

How long to wait before applying for a new mortgage;

The steps to applying for a mortgage;

Documents needed for a mortgage application;

The home buying process;

Insurance issues; and,

Closing process.

This no pressure, no obligation, free educational workshop is coordinated by Morris Hagerman, Realtor for Real Estate One and other home buying services offered by the Real Estate One Family of Companies.

For more information contact:

Morris Hagerman, Realtor

Real Estate One, 26236 Woodward, Royal Oak, Michigan  48067

248-854-8440

morrishagermanproperties@gmail.com

www.morrishagermanproperties.com

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities in southeast Oakland County. The Woodward 5 communities are Berkley, Ferndale, Huntington Woods, Pleasant Ridge and Royal Oak.  He is a resident of Berkley and member of the Berkley Chamber of Commerce.

Full List of presenters:

Real Estate One:      Morris Hagerman      248-854-8440

John Adams Mortgage: Mark Sera               248-760-0288

Insurance One:        Leah Wood              248-864-3292

Capital Title:            Debra Paone            248-414-1255

HUD releases "Qualified Mortgage" definition

HUD releases "Qualified Mortgage" definition

WASHINGTON – Today the U.S. Department of Housing and Urban Development (HUD) released its final rule which defines a ‘Qualified Mortgage (QM)’ that is insured, guaranteed or administered by HUD. The final rule will be effective on January 10, 2014 and will apply to mortgages with a case number assignment on or after that date. Read HUD’s final rule.

The Dodd–Frank Wall Street Reform and Consumer Protection Act requires HUD to propose a QM definition that is aligned with the Ability-to-Repay criteria set out in the Truth-in-Lending Act (TILA) as well as the Department’s historic mission to promote affordable mortgage financing options for underserved borrowers. HUD’s rule builds off of the existing QM rule finalized by the Consumer Financial Protection Bureau (CFPB) earlier this year.

In order to meet HUD’s QM definition, mortgage loans must:

• Require periodic payments without risky features;

• Have terms not to exceed 30 years;

• Limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans (except for Title I, Title II Manufactured Housing, Section 184,Section 184A loans and others as detailed below); and

• Be insured or guaranteed by FHA or HUD.

Currently, HUD does not insure, guarantee or administer mortgages with risky features such as loans with excessively long terms (greater than 30 years), interest-only payments, or negative-amortization payments where the principal amount increases. Moreover, HUD’s existing underwriting standards require lenders to assess a borrower’s ability to repay their mortgage debt. The new limit on upfront points and fees for all Title II non-manufactured housing FHA-insured single family mortgages is consistent with the private sector and conventional mortgages guaranteed by Fannie Mae and Freddie Mac to attain qualified mortgage status under CFPB’s final rule.

The rule establishes two types of Qualified Mortgages that have different protective features for consumers and different legal consequences for lenders. HUD’s Qualified Mortgage classifies a loan as either Rebuttable Presumption Qualified Mortgages or Safe Harbor Qualified Mortgages depending on the relation of the loan’s Annual Percentage Rate (APR) to the Average Prime Offer Rate (APOR), the rate for the average borrower receiving a conventional mortgage. The two categories of Qualified Mortgages are:

A Rebuttable Presumption Qualified Mortgage will have an APR greater than APOR + 115 basis points (bps) + on-going Mortgage Insurance Premium (MIP) rate. Legally, lenders that offer these loans are presumed to have determined that the borrower met the Ability-to-Repay standard. Consumers can challenge that presumption, however, by proving that they did not, in fact, have sufficient income to pay the mortgage and their other living expenses.

Safe Harbor Qualified Mortgages will be loans with APRs equal to or less than APOR + 115 bps + on-going MIP. These mortgages offer lenders the greatest legal certainty that they are complying with the Ability-to-Repay standard. Consumers can still legally challenge their lender if they believe the loan does not meet the definitions of a Safe Harbor Qualified Mortgage.

Furthermore, HUD’s rule covers Title II manufactured housing, Title I manufactured housing and property improvement loans, Section 184 Indian Home Loan Guarantee Program mortgages and Section 184A Native Hawaiian Housing Loan Guarantee Program mortgages.. The rule designates loans insured under these programs as Safe Harbor Qualified Mortgages regardless of upfront points/fees and APR to APOR ratio so as not to interfere with current lending practices until appropriate parameters can be determined.

HUD also adopts CFPB’s list of transactions that are exempt from the ability-to-repay requirements, which includes Reverse Mortgages; Bridge loans with a term of 12 months or less; Construction-to-permanent loans for 12 months or less for the construction phase; Extension of credit by a Housing Finance Agency; Extension of credit by Community Development Financial Institutions; Extension of credit made pursuant to a program authorized by sections 101 and 109 of the Emergency Economic Stabilization Act of 2008; Downpayment Assistance through Secondary Financing Provider made pursuant HUD’s regulations; Community Housing Development Organization (CHDO) provided that the creditor has entered into a commitment with a participating jurisdiction and is undertaking a project under the HOME program; A 501(c)(3) organization that secured no more than 200 dwellings in the prior calendar year to consumers with income that did not exceed the low- and moderate-income household limit as established pursuant to section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(20)) and the creditor determines, in accordance with written procedures, that the consumer has a reasonable ability to repay the extension of credit.

HUD’s mortgage insurance and loan guarantee programs play a central role in the housing market and act as a stabilizing force during times of economic distress, facilitating mortgage financing during periods of severe constriction in conventional markets. The final rule aims to ensure the continuity of access to mortgage financing to creditworthy, yet underserved borrowers while further strengthening protections for FHA borrowers and taxpayers, alike.

Qualified residential mortgage rule

Media Contact: Jenny Werwa / 202-383-1193 

WASHINGTON'S (August 28, 2013) — The following is a statement by National Association of Realtors® President Gary Thomas:

"The re-proposed Qualified Residential Mortgage rule announced this morning is a victory for homebuyers and the future of homeownership in this country. This version of the QRM rule will give creditworthy buyers access to safe and affordable loan products without overly burdensome downpayment requirements.

"The new standards, which align with those applied to Qualified Mortgages, are stringent enough to protect consumers from unscrupulous lending practices while also creating new opportunities for private capital to reestablish itself as part of a robust and competitive mortgage market.

"Realtors® were among the most vocal opponents of the first QRM rule proposed in April 2011 because it would have denied millions of creditworthy Americans access to the lowest cost and safest mortgages. We applaud the regulators for removing the 20 percent downpayment requirement and for adopting reasonable credit and debt-to-income standards.

"In addition to the main proposal that we support today, regulators introduced an unfavorable alternative that would require buyers to put 30 percent down to qualify for a QRM loan, a restrictive measure that dramatically favors the wealthy. Research shows that it would take the average American more than 25 years to save enough money to buy a modest home with a 30 percent downpayment.

"Realtors® will continue to oppose any regulation that requires unreasonably high downpayments from consumers. We are committed to working on behalf of America’s hardworking families to ensure that anyone who is able and willing to assume the responsibilities of owning a home has the opportunity to pursue that dream, now and into the future."

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.