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Listen to the Real Estate Zone radio show from February 28th, 2015 with host John McClellan.

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Listen to the Real Estate Zone radio show from February 21, 2015 with host John McClellan.

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Listen to the Real Estate Zone radio show from February 14, 2015 with guest host Jonathan “Big Country” Richards of REP’in Austin.

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Listen to the Real Estate Zone radio show from February 07, 2015

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Listen to the Real Estate Zone radio show from January 31, 2015

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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…]

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Listen to the Real Estate Zone radio show from January 24, 2015

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Listen to the Real Estate Zone radio show from January 17, 2015

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Listen to the Real Estate Zone radio show from January 10, 2015

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HUD Announces Major Reduction in Monthly Mortgage Insurance

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…]

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