“Pricing in the D.C. metro area continued recent positive trends with a year-over-year median sale price gain of 11.2 percent, the highest annual gain in more than six years,” the firm reported. RBI suggests this might mean all the talk of a shadow inventory of to-be-foreclosed homes didn’t impact home prices much."

Here's what huffingtonpost.com said recently "Rising Home Prices: Coming to a Market Near You." "Not only are rising prices starting to look like a real trend, they're also coming to a market near you -- if they haven't already. Asking prices increased year-over-year in 44 out of the 100 largest metropolitan areas, with Miami and Phoenix leading the charge." Bethesda-Rockville-Frederick, MD was listed as number 9 in Top 10 Metros With Largest Price Increases.

Again, back to The Washington Post in an article titled "House hunters find it’s a jungle" stated that "For in-demand properties, bidding wars are common. For Redfin’s listings, 53 percent of homes for sale had multiple offers in D.C. last quarter, while in an area such as Atlanta, that only happened 31 percent of the time."

So what does this mean to home buyers looking for their first home or for people looking to move-up? Now may be the time to get off the fence and into the market.

Home prices are stabilizing and starting to move up and mortgage interest rates are at historic lows. You can't expect interest rates to stay this low for long. With rising rental rates it appears to be a god time to buy a home.

What do you thing? Leave your comments below.



Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

• Housing affordability is at a multi-decade high.
• Reflecting normal U.S. demographic trends (household formations of 1 million-plus per year) and a low level of 2008-2012 new-home production, there is plenty of pent-up demand ready to be unleashed.
• As rental prices have risen and as home prices have fallen, the economics of home ownership has improved.
• We have seen a decisive improvement in the jobs market.
• Mortgage rates are at historic lows.
• Housing surveys have turned positive.
• Confidence is improving.

The Washington DC area was ranked in the Top Ten U.S. Cities Where Homes Sell the Fastest.
The "Perfect Storm" in real estate with a combination of low home prices and low interest rates in slowly coming to and end. The cost to purchase and home is going to rise.

If you've been sitting on the fence, isn't it time to jump off and get into the game?



Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Named after the line that marks the start of the defensive zone in hockey, "Defending The Blue Line" was created in 2009 by a group of active duty soldiers.

The program helps military families offset the expensive costs of having their children in a hockey program while their mom or dad is overseas.



Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

“HARP has been around for a couple of years but hasn’t been that helpful to that many people,” says Bob Walters, chief economist at Quicken Loans. Many people that needed the help couldn’t qualify, he adds.

To qualify under the original HARP program, your loan-to-value ratio had to be less than 125%-- but for many struggling homeowners, their home value fell significantly below that, freezing them out of HARP. To be eligible for HARP 2.0, people need to have a home valued at less than their mortgage, and the loan has to be with Fannie Mae or Freddie Mac. The mortgage has to be in good standing, and homeowners need to have a good payment history for the last 12 months. The new HARP program will expire at the end of 2013.

To be eligible for the HARP program, your mortgage must be held by either Fannie Mae or Freddie Mac. To "look up" your mortgage, check the Fannie Mae or the Freddie Mac eligibility sites.

You can find out if you are eligible for HARP by using the HARP Eligibility Calculator.

The original HARP program was geared toward the five biggest loan servicers Citigroup, Wells Fargo, Bank of America, Ally Financial and JPMorgan Chase, which limited the amount of loans that could get refinanced, according to Walters. This new plan includes mortgage companies across the country; these new servicers can now qualify a borrower for a HARP loan even if the borrower’s previous loan had mortgage insurance attached to it. According to Walters, this process was extremely difficult for non-servicers in the past. Mortgage insurers, which have to sign off on a refinancing for customers that have mortgage insurance, are currently working with lenders to develop a process that lets the mortgage provider and the insurer share information to streamline the process. When that happens, Walters says more people will see HARP loans get approved.

In December as part of HARP 2.0, pricing changes went into effect that lowered the costs to HARP borrowers. Coming in March, borrowers with loan values exceeding 125% will also be eligible for HARP. While in theory the loan to value could be unlimited, Walters says companies are still going to be cautious about lending to people with high loan to value ratios even though Fannie Mae and Freddie Mac are taking on the risk. “There’s been so many defaults and nobody wants to foreclose,” says Walters.

The government is also hoping to make the approval processes quicker by eliminating, in many cases, the need for an appraisal.

For homeowners with a service provider that doesn’t offer the HARP program don’t give up.

“If you get an unsatisfactory answer don’t stop, call someone else,” says Walters. “People shouldn’t assume the first no means they can’t get help.

Read more: Fox Business - The Power to Prosper.

Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

Editor’s Note: The November 15 announcement included comprehensive rules for the new HARP, which people in the industry are calling “HARP 2.0.” How lenders will implement these changes in their underwriting process has yet to be established. Bookmark this page and check back regularly, as Bills.com will keep you informed of updates to HARP.

Update: HARP 2.0 debt-to-income requirements have changed. According to a Fannie Mae announcement on December 20th, lenders will not longer have to demonstrate that the borrowers have a “reasonable ability to pay, unless the loan payment increases by 20% or more.” This applies only to loans borrowers do with their current lenders through the manually underwritten Refi Plus system. Loan applications that go through the automated DU system (expected to be updated for HARP 2.0 by mid-March) will have to meet the basic DU 45% maximum debt-to-income requirement.



New guidelines for the Home Affordable Refinance Program (HARP) were released by Fannie Mae and Freddie Mac on November 15th, 2011. The updated guidelines come on the heels of the October 24th announcement by The Federal Housing Finance Agency (FHFA) about expanding HARP. The goal of expanding HARP is to allow borrowers who are upside-down on their homes or who have little equity to refinance at today’s low interest rates. The hope is that this will both stabilize the housing market and boost the overall economy, by putting extra dollars in the pockets of consumers who are likely to spend them.

Mortgage experts are optimistic about the new HARP. “Although there is still a good deal of uncertainty surrounding the specifics of how the expanded HARP program will be implemented at the individual lender level, the November 15 announcements from Fannie and Freddie do provide a source of encouragement for the equity challenged segment of the market,” said Peter Citera, vice president at Chicago Bancorp and mortgage education director at the Real Estate Institute.

Approximately 4 million Fannie and Freddie borrowers owe more on their mortgage than their homes are worth. Across the US, nearly 11 million are underwater, or about 22.5% of all outstanding loans, according to CoreLogic, a data provider to mortgage underwriters. About 2.4 million hold less than 5% equity in their homes.

HARP At a Glance

HARP allows homeowners facing difficulties refinancing their mortgage through conventional methods to apply for a refinance of their mortgage. A homeowner that is current with their monthly payments but unable to refinance due to a drop in the value is the typical prime candidate for the HARP program. The ultimate goal is to allow a homeowner to do a mortgage refinance for a lower interest rate and overall monthly payment. Here are the general eligibility guidelines for HARP:

• There is no loan-to-value cap in the new HARP, for fixed-rate loans. This is the most significant change of HARP 2.0. Under previous versions of HARP, the LTV could not exceed 125%.
• The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac. Determine if you have a Fannie Mae or Freddie Mac loan by going online (check Fannie; and check Freddie) or by calling 800-7FANNIE or 800-FREDDIE (8 am to 8 pm ET).
• At the time you apply, you are current on your mortgage payments. You can have one 30-day late payment in the past 12 months, but none within the past 6 months.
• You have a reasonable ability to pay the new mortgage payments. Editor’s note: Fannie Mae removed the "reasonable ability to pay" clause. Please read the update at the top of the page for more information.
• The refinance improves the long-term affordability or stability of your loan.

HARP Changes for Lenders and Effects on Borrowers

The following is a summary of key changes found in HARP 2.0. Some key underwriting details are not yet announced, and are expected to be released before March 2012.

Limited Liability

What’s new: A key provision of the new HARP is that it limits lenders' liability in cases of loan default. Essentially, Fannie and Freddie will not force the lender to buy back a non-performing loan.

Effect on you: This change should greatly expand HARP's reach. Lenders will be much more eager to offer HARP loans, where they were previously reluctant. With more lenders participating, you will have an easier time getting a HARP mortgage.

Lender Fees Dropped

What’s new: Fees that Fannie and Freddie charge lenders for high LTV loans are being cut.

Effect on you: The reduced fees are passed on to you, making your loan cheaper. If you are financing to a 15-year or 20-year loan, the fees are cut even further.

Credit Score and Income Requirements Relaxed

What’s new: As long as your new HARP monthly payment is not more than 20% greater than your current payment, specific credit and income guidelines do not apply. The lender will have to determine that the borrower is an “acceptable credit risk” (and what that means is yet to be determined).

Effect on you: A low credit score or high DTI is not enough to automatically disqualify a borrower. Also, if your family is now a one-income family when it was a two-income family on the original loan, you only have to show proof of one income, as opposed to conventional loans where all borrowers listed on the application must document income.

Underwriting Requirements Relaxed

What’s new No. 1: Mortgage Payment History: A HARP lender can approve a loan that has one late mortgage payment in past 12 months, as long as it did not take place in the last six months.

Effect on you: You won't be counted out for a mortgage late, when that could normally eliminate your ability to get refinanced at the lowest rates available. If you have a recent mortgage late, you can still apply for HARP, once you meet the relaxed mortgage late requirements.

What’s new No. 2: Relaxed Foreclosure & Bankruptcy rules: Your HARP loan could be approved, regardless of how recently a borrower filed bankruptcy or experienced a foreclosure.

Effect on you: Normally, if you filed for bankruptcy or experienced a foreclosure you would have to wait years before you could successfully refinance.

Occupancy Requirements Relaxed

What’s new: Owner Occupancy: HARP loans are no longer restricted only to owner-occupants.

Effect on you: You can now use HARP to refinance your second home or investment property.

Lenders Must Show that a Borrower Benefits

What’s new: Lenders must show that the HARP mortgage borrower derives one or more of the following four benefits in the new loan:

1. Reduce the size of the monthly payment
2. Change to a more stable loan product, such as moving from an adjustable-rate mortgage to a fixed-rate mortgage
3. Reduce the interest rate
4. Reduce the loan amortization term (moving to a shorter-term loan)

Relaxed Condominium Requirements

What’s new: HARP eligibility used to require that no more than 10% of units in the complex be owned by one person and that no more than 20% of owners in the complex be behind on their HOA dues. These requirements are now removed.

Effect on you: More condo owners will now qualify for HARP. If you own a condo, your qualifying for the HARP program is no longer dependent on your neighbors' finances.

“Condominium owners have perhaps the best reason to be optimistic; lenders are being relieved of the responsibility (for HARP refinance loans only) to ensure that condo projects meet the often strict project approval requirements of Fannie Mae and Freddie Mac,” Citera said. “Borrowers living in condominium projects that have seen a sharp increase in the number of renters, or those that have experienced some level of budgetary stress, will be much more likely to find relief under HARP 2.0 than they have under existing programs (as long as their loans are owned by Fannie or Freddie).”

Hold Your Horses

Although applications may be submitted for new HARP 2.0 mortgages in December, 2011, Bills.com believes the bulk of HARP mortgages will not be approved until March, 2012. Both Fannie and Freddie must update their automated loan underwriting/approval software by March, 2012. Until then, while lenders may approve HARP mortgages by manually underwriting the loans, loans that are manually underwritten expose the lender to greater risk. If a manually underwritten loan defaults, the lender will be required to buy back the loan.

Given the protections that the lender will have once the automated underwriting programs are updated and ready in March, 2012, it seems very likely that most loan originators will wait until March, 2012. Be ready to move forward with an application, once lenders start taking them, but be prepared for a very long process before your loan closes.

Before refinancing, borrowers should know whether their current loan is a recourse or non-recourse loan and also be familiar with their state’s anti-deficiency laws. Refinancing a non-recourse loan could expose the borrower to responsibility for a potentially huge financial obligation where no such obligation currently exists.

Recourse, Non-recourse, and Anti-deficiency

In some states, refinancing can remove the consumer protections, called anti-deficiency laws, which protect underwater homeowners who default on their mortgages. Bills.com recommends homeowners learn the anti-deficiency laws in their states, and determine if a mortgage refinance changes their rights. Anyone with a non-recourse loan should carefully weigh the decision to turn a non-recourse loan into a recourse loan.

Basic HARP Requirements

Not every upside-down home qualifies for HARP 2.0. Here is a summary of the basic requirements:

1. The loan must be owned or guaranteed by Fannie Mae or Freddie Mac
2. The loan was sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
3. The loan was not refinanced under HARP previously, unless it is a Fannie Mae loan that was refinanced under HARP from March through May, 2009.
4. The loan’s current loan-to-value (LTV) is greater than 80%.

More About HARP 2.0

Many readers have asked Bills.com about mortgage insurance and how it may impact qualifying for HARP 2.0. Mortgage insurance on a loan should not block a refinance under HARP 2.0. See the Bills.com resource Mortgage Insurance and HARP Refinance to learn more.

Readers who do not have Fannie, Freddie, or other GSE loans are not eligible for HARP 2.0. In late January 2012, President Obama proposed a similar plan for non-GSE home loans. See Obama Refinance Plan for more information on this proposal.

Shared from bills.com

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

I make my living in the housing industry. The whole country has suffered the past few years because of the problems created by the mortgage mess. The housing industry is still struggling to get back on it's feet.

In his State of the Union address and in subsequent speeches President Obama has been talking about his "Blueprint for an America Built to Last."

I got a copy of the plan to see what it is all about. To see a copy click on:

President Obama's Plan to Help Responsible Homeowners and Heal the Housing Market

While I want as much as anyone for the housing market to come back reading the plan I have to wonder if it's a plan for recovery or a political document to help with getting elected.

A big talking point has been the Homeowner Bill of Rights.

The first two points are:

Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.

In 2009 the government designed and mandated that the lending industry use the current Good Faith Estimate now given to borrowers. I took hours of classes learning to complete it correctly and real estate agents took hours of classes learning the new HUD1 form. I'd welcome a simple form but blaming the industry for the current confusion is just wrong.

Full disclosure of fees and penalties.

It seems they don't know they also passed legislation holding lenders responsible for the fees that are disclosed to a borrower at application. A lender is financially responsible for under disclosingfees (even fees they don't control) including those charged by title companies and state and count recording fees. Anyone who has been to a settlement is familiar with "Charges That Cannot Increase, Charges That in Total Cannot Increase More Than 10% and Charges That Can Change."

The plan also calls for Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work.

Now don't get me wrong. This crisis has created a lot of pain for a lot of people and they need help. But is letting them not pay their mortgage for a year a solution to the problem or are we "kicking the can down the road" for someone else to worry about.

Who hasn't heard Congress and the President rail against the abusive loans that caused the crisis. (A side note: all the loan types weren't bad. They just got to liberal in underwriting and approving them)

The plan calls for Providing Non-GSE Borrowers Access to Simple, Low-Cost Refinancing. It has been proposed that "The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA."

Simple and straightforward eligibility criteria. Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

* They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more that one payment in the 6 months prior. (Sounds reasonable to me.)

* They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers will have a credit score adequate to meet that requirement. (If you want to get a new loan most loan programs want a minimum 640 FICO score. By meeting certain criteria you can lower the FICO score to 620.)

Streamlined application process: "To determine a borrower's eligibility a lender need only confirm that the borrower is employed." (Sound's like the no-doc or no-income loan they have said were bad and don't allow any more.) "Those who are not employed may be eligible if they meet other requirements and present limited credit risk." (I'd love to know what those requirements will be.)

The program will be funded by "Creating a separate fund for new streamlined refinancing program. This will help FHA better track and manage the risk involved and ensure that it has no effect on the operation of the existing Mutual Mortgage Insurance (MMI) fund." (So were taking loans that were made in the private sector and giving them a government guarantee and if they lose money well take it out of the left pocket instead of the right pocket? To me a loss is a loss)

Now to pay for the program the Refinancing Plan Will Be Fully Paid For By a Portion of Fee on Largest Financial Institutions: The Administration estimates the cost of its refinancing plan will be in the range of $5 to $10 billion, depending on exact parameters and take-up. The cost will be fully offset by using a portion of the President's proposed Financial Crisis Responsibility Fee, which imposes a fee on the largest financial institutions based on their size and the riskiness of their activities - ensuring that the program does not add a dome to the deficit. (And do you thing "the largest financial institutions" are going to absorb that fee or is it more likely to be passed on to all consumers through higher fees and other cost. Are you aware the "Two month tax holiday passed in December is being paid with higher fees being charged by Fannie Mae, Freddie Mac and FHA. The new fees will be in effect for 10 years to pay for a 2 month thx holiday.)

I've been getting a lot of questions about HARP2 refinancing program which was announced in November. It's my understanding that the automated engines used to underwrite these loans will be ready in mid-March. I still an waiting to get details of what the requirements will be.

I'd love to hear your feedback on the proposed Plan To Help Responsible Homeowners and Heal The Housing Market.

Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878

Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388