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Not Your Average Joe's Free Appetizers
Written by John Simek, Cook and Zook Team   
Wednesday, 03 February 2010
Not Your Average Joes We recently sent out our end of year newsletter which included a free appetizer coupon with the purchase of an entree to Not Your Average Joe's.  Located in the Lansdowne town Center, Not Your Average Joe's is one of Ryan Zook's favorite local resturants.  We are happy to be partnered with them, and we hope you plan your next dinner there very soon.   

We have a handful of coupons left that we would be happy to send to anyone who would like one.  If you or someone you know are interested in a coupon please, email the Cook and Zook Team with your mailing address. Enjoy!
 
Announced FHA Policy Changes
Written by Carter Scott, Prosperity Mortgage   
Wednesday, 27 January 2010
Federal Housing Administration (FHA) Commissioner, and former Long and Foster CEO, David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities.  The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

The new policy changes go into effect on April 5th.  Outlined below are a few of the changes.  If you have additional questions or want a free loan pre-approval, please contact Carter Scott, Prosperity Mortgage, 703-725-9041 mobile or via email at carter.scott@prosperitymortgage.com.

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
  • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge. (Increased closing costs to the buyer).
  • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP which will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing.
  • The initial up-front increase is included in a Mortgagee Letter.
2. Updated FICO scores and down payments requirements for new borrowers
  • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.  This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
3. Reduce allowable seller concessions from 6% to 3%
  • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
4. Increase enforcement on FHA lenders
  • Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.  This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
  • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.  Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
  • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process.
  • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
    • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite.
    • Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches.
 
NOVA's '09-'10 Winter Vacation Escape
Written by Patrick Powers, Cook and Zook Team   
Wednesday, 06 January 2010
SkiWith cold weather upon us, many families are planning their family winter vacation.  Luckily for those of us in Northern Virginia, we don’t have to look to far from home to find great destination spots to hit the slopes and enjoy the snow. 

To help you decide which resort to visit, the Washington Post comes out with a yearly Ski Guide for the D.C. Metropolitan area.  Click here to visit the Washington Post’s web page dedicated to the 2009-2010 ski season.  You will find an interactive map that will tell you everything from the resorts traveling distance from Washington, link to resorts web site, average snow, prices, contact information, and more.

The Washington Post highlighted one ski resort in particular for the 2009-2010 ski season.  Wintergreen Resort was named the Snowskiing Spot in the “Express Best of 2009” survey.  The survey was taken by 20,000 people about the D.C. Metropolitan area’s best of the best and the people voted Wintergreen Ski Resort the best skiing destination in the area.  Roughly 154 miles or 3 hours from D.C., Wintergreen can be a great winter weekend getaway.  On weekends I'm not working with the Cook and Zook Team, I visit Wintergreen to enjoy the snow!

Wintergreen posted to its slope reports a weather outlook for the 2009-2010 ski season.  Predictions by Commodity Weather Group, LLC show that the eastern part of the U.S. is going to have its coldest winter in the past decade.  If these predictions are true, it should mean a great ski season for us in the Northern Virginia area.  Happy skiing!
 
Winter Maintenance Checklist
Written by Patrick Powers, Cook and Zook Team   
Tuesday, 05 January 2010

With the cold temperatures and snowfalls we've had this winter, homeowners need to make sure they are taking care of their homes to reduce maintenance and utility costs.  Here is a mini checklist provided by HB Services, one of the Cook and Zook Team's preferred handyman services. 

Central Heating
Change or clean furnace filters.
Open floor vents and close ceiling vents.  The warm air will escape through the ceiling vents if they are not closed.
If your heating system is outdated, consider replacing it with a more efficient system.

Insulation
Make sure you have proper insulation throughout your home. 
Check your attic, craw spaces and basement for areas that could be insulated better.

Attic
Make sure your attic vents are open year round.  Shutting off vents can cause winter ice dams.

Exterior
Make sure all exterior to interior wires and pipes are sealed properly.  If necessary, caulk around airway openings.
Remove, drain, and coil garden hoses.
Shut of the interior cut off valve for each exterior faucet valve and open the exterior faucet so water does not freeze in the pipes.  
Make sure you have a snow shovel ready and sidewalk salt on hand.
 
Get off the Home Buying Fence
Written by Patrick Powers   
Wednesday, 23 December 2009
Sitting on the FenceIf you are in contemplating purchasing a house in 2010, you need to talk to a real estate professional today.  The market conditions are currently a buyer best friend.  The Federal Reserve is remaining stead fast in keeping rates low to stir up economic activity.  You can currently buy a home with a 30 year fixed rate at just under 5 percent.  These rates are historically unbelievable, and if you are hoping that rates will go lower, you are taking a huge gamble.  Market conditions are showing a rebound in the overall economy which will inevitably increase interest rates.  The only reason rates are still as low as they are is because the Federal Reserve is keeping them there.  Market research done by the Mortgage Bankers Association is forecasting 2010 rates to be at 5.5% and 2011 rates to be at 6.0% (click here to see the forecasts).  Some forecasters are predicting the mortgage rates to increase as much as a quarter percent in the first quarter of 2010.

Housing prices across the country are teetering between positive price increases and negative price decreases with a slight lean towards positive.  Prices in the D.C. Metropolitan area have seen a few months of slow growth which means the bottom has ultimately been hit in our area.  As a buyer, you probably won’t ever see prices at these levels ever again in your life.  Buying a home is a long term investment and there is no better time than now to invest in a home for the future.

Lastly, if you are sitting on the fence about purchasing a home, the government’s $8,000 tax credit should have you leaping of that fence.  You only have about 4 more months to take advantage of the government’s generous gift before it is gone forever.  Take a look at one of our previously posted blogs to learn about the latest changes to the tax credit.

The combination of historically low interest rates, rock bottom housing prices and free money from the government is a something you will never see in your lifetime again.  If you have even the slightest inkling of thought that you might buy a home in 2010, contact the Cook and Zook Team today.  Our job is to inform our client base about the real estate market and we would be happy to talk to you.
 
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