FHA to tighten up lending

In an announcement today, FHA is going to update regulations to strengthen the financial outlook of the agency:
"These new regulations strengthen the process by which FHA requires certain lenders to indemnify the U.S. Department of Housing and Urban Development (HUD) for insurance claims paid on mortgages that are found not to meet the agency's guidelines. In addition, the final rule requires all lenders with the authority to insure mortgages on HUD’s behalf ("Lender Insurance" mortgagee) to meet stricter performance standards to gain and maintain their approval status..."
Further in the announcement the regulations discussed fraud, fraud detection, and having lenders be responsible for such fraud. I completely support that idea, but in the past 12 months FHA, Fannie Mae, and Freddie Mac have been able to find what they call fraud on a majority of the files that they own or insure.
I wonder if this is just a way to push unwanted debt onto the banks. If that is the case, the lending world just got a lot smaller.

Detour-Tax Time Tips

In the past few weeks we have seen more and more tax returns that either have errors on them or that what was filed was not the copy given to the client. When having your taxes done, make sure that what is filed with the IRS is the copy you get from your tax preparer. Also, as you sign your taxes, go through them. Make sure your address is correct, that deductions taken are accurate. Once you sign them, you are telling the IRS that they are right.
Also, some times family, friends, or preparers will give us ideas for write-offs that will help us this year, but could effect us in future years. A great example is when you live with a family member and help pay the mortgage. If you take any part of the interest write off on your taxes, then you will not qualify for any first time home-buyer assistance that may be available for the next three years.
Another example is when you take large 2106 expense deductions. 2106 deductions automatically reduce your income when trying to qualify for a mortgage. If you write-off $6000 per year that is $500 per month we have to reduce your income by. That could make or break a purchase transaction.
I hope these tips are helpful, please feel free to email or call me if you have any comments or questions.

Time for New Resolutions!

I believe I am going to take a new turn with my blog. Instead of just posting opinions and ideas about the mortgage industry, I am going to make it an online educational course. For those of you who are looking to purchase your first home, move into a bigger home, downsize into something smaller, invest in real estate, or buy that second home you have always wanted, I am going to put the how to on this website. If you want to know about a particular topic, comment or email me. I will address it in my next blog.
This will be the blog for the do it yourself, Internet savvy, real estate driven person. I hope that my knowledge will help you grow and achieve your dreams.

Tomorrow's Blog: Where Do I Begin?