On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. This new law required the Consumer Financial Protection Bureau (CFPB) to combine the Truth in Lending (TIL) and the Real Estate Settlement Procedures Act disclosures into one concise form for consumers.

 On August 1, 2015, the existing Good Faith Estimate and TIL disclosures will be replaced with and combined into the new Loan Estimate disclosure. This is great news for both consumers and real estate professionals. The CFPB issued the final rule on this on November 20, 2013; and it is going to affect all mortgage loans with application dates beginning August 1, 2015.

This new Loan Estimate disclosure will combine the existing Good Faith Estimate and TIL disclosures into one easy-to-understand form. Current forms can be very confusing to borrowers; and they are lacking important information like cash needed to close and total principal, interest, taxes, and insurance (PITI) payment. There is not even a place for a signature on the existing form.

We can put this rule in the category of one action that the CFPB got right. With this new form borrowers will be better informed and better prepared to make wise decisions when purchasing a home.

The second part of the “Know Before You Owe” rule pertains to [click to continue…]

{ 1 comment }

HUD Announces Major Reduction in Monthly Mortgage Insurance

by John McClellan on January 10, 2015

On Friday HUD released its first Mortgagee Letter for 2015, and it was a substantial change for the better.  HUD has announced a 50 bps reduction in the amount of mortgage insurance that is paid on a monthly basis when securing a home with an FHA loan.  This 50 bps equates to a 38% decrease in the amount borrowers have to pay every month in MIP.  HUD had raised this MIP to 135 bps in April of 2013; and, in some people’s opinion, made the product very expensive.  Therefore, FHA has been losing market share to Fannie Mae ever since.

This ML is effective for case numbers assigned on or after January 26, 2015.

The following table shows the existing as well as [click to continue…]



December 20, 2014

The Federal Housing Administration’s (FHA) Office of Single Family Housing has announced that the temporary waiver of the FHA 90-day Property Flipping regulation will expire on December 31, 2014.  This waiver had exempted all sellers from the 90-day property flipping rule between February 1, 2010, and December 31, 2014; however, effective January 1, 2015, the […]

Read the full article →

Fannie and Freddie officially approve 3% down payment mortgages

December 8, 2014

Fannie Mae and Freddie Mac have officially approved the return of 3% down conventional loans.  Great news for consumers! Click here for announcement.  

Read the full article →

FHA loan limits for Austin-Round Rock set to go up!

December 5, 2014

FHA loan limits for Austin-Round Rock are set to go up starting January 2015!  This is great news for homebuyers in Central Texas.  FHA requires only a 3.5% down payment and is traditionally easier to qualify for compared to other loan programs.  This will push the maximum purchase price to $344,000 (with 3.5% down).  Right now FHA loan limits […]

Read the full article →

NFP (nonfarm payroll) numbers MUCH higher than expected

December 5, 2014

The US added 321k jobs last month (forecast was 240k), the largest gain since November 2011.  Mortgage-backed securities and Treasuries slammed:  Expect mortgage rates to jump today from recent lows.  Unemployment rate remained the same at 5.8%.  September was revised up from 256k to 271k. NFP 321k vs 230k forecast Biggest increase since January 2012 October […]

Read the full article →

The Real Estate Zone Radio Show – 10/25/14 Broadcast

October 29, 2014

Listen to the Real Estate Zone radio show from October 25, 2014:   Mortgage Rates, How Credit Scores Work, Millenials and their effect on real estate, questions from callers, and more!

Read the full article →


October 28, 2014

MISSION OF SUPREME LENDING AUSTIN McClellan Branch Our mission is to be the leading and most highly respected mortgage banking company in the Austin area by providing the highest level of service, ethics, products, and professionalism to our clients and partners.  Our goal is to make a positive, enthusiastic, and meaningful impact on our industry, […]

Read the full article →

The Austin Real Estate Market still has legs!

September 23, 2014

Big question!  How much longer will this incredible real estate market hold on in Central Texas?  Real estate happens in cycles, and sometimes we can look to the past to divine the future.  The chart you see is a snapshot of the Austin real estate market, month over month, from 1994 to August 2014.  I have said […]

Read the full article →

Comparison of future and current USDA eligibility areas

September 20, 2014

October 1 signals the new map changes for USDA.  Here is a link:  USDA.  Map at the top is future, and map at the bottom is

Read the full article →