Melamine in American baby formula – not just Asia anymore

Yes, I know I have been complaing about this FOR EVER.  But, this morning my worst fear became a realtity when the FDA confirmed that Melamine has been found in infant formula in this country.

This scandal has been rumbling through Asia and Europe for months and, inevitably in my opinion, it’s global reach has hit us at home.

Click here for a direct link to the FDA announcement

Lowest Mortgage Rates of 2008

Estimated rates for the week of November 24, 2009

30 yr conforming               5.25 – 5.50
30 yr jumbo                       6.00 to $600k     
7/1 ARM                            5.625 – 5.75        
OR VA                                5.75 w/1.5; 5.875 w/1.0
OR State Bond                   6.25 FHA or VA

Rates saw a significant drop today even with the slight pull back at the end of the day. The reduction in rates was brought on by the Fed’s announcement that they were ready to buy up to $500 billion in mortgage-backed securities and were willing to lend up to another $200 billion to help facilitate the purchase of other consumer and small business oriented asset-backed instruments. This news was well-received as the market is hoping this will be key in keeping credit flowing and interest rates down. We never know how long these rates will last. In the past, when rates went to these levels, they only lasted a few hours. Let’s hope we’ll see the market stay here for awhile.

In previous Updates, I have discussed changes that are to occur in the appraisal world. It looks like those changes are starting. Two of the largest mortgage companies announced their new guidelines for the ordering of appraisals starting in January. All of these changes are to stem fraud in the appraisal world. Some of these changes will make the buying and refinancing of a home a little more difficult. It looks like loan originators won’t be able to order the appraisal or direct who prepares the report. This will impact our ability to get a rush appraisal done and it will impact us in those other areas where having a relationship with the appraiser has helped. I foresee more issues when it comes to property repair items as well as values -  especially when the sale has large seller concessions. Fannie has also announced the addition of another form that the appraiser will need to complete. This form is to help underwriters analyze the market trends for a given neighborhood. The appraiser needs to complete an inventory analysis including a review of the absorption rate. The appraiser also has to review the sales information – days on the market, median price, list-to-sale price, etc. He or she also has to comment on foreclosures that have occurred in the immediate market area. We can assume that this will take the appraiser additional time to complete and it will probably increase the cost of an appraisal.

Happy Thanksgiving. I wish you all have a great holiday. I’ll be available on Friday if you need anything.

Bob Chiodo, CFP
Equity Home Mortgage, LLC
12550 SW 68th Parkway
Portland, OR 97223
(503)670-7393
fax: (503)670-7062
bobchiodo@equityhome.com
www.ResCommLending.com

Money, Money, Money – Is Still Available, Especially for First-Time Buyers

Friday, Maria and I attended a class at the Portland Development Commission(PDC) – topic: First-Time Homebuyer Programs in Portland.  Not only was the class informative – the programs available to first-time buyers are exciting!

The speaker focused on three specific programs: PDC Oregon Bond Loan, Down Payment Assistance Loan and the Mortgage Credit Certificate(MCC) which are just a few of the programs available through the PDC.  With the vast number of programs available there’s something for most first-time buyers.  The PDC has put great thought into creating programs for low to moderate income buyers.  Here’s a quick overview of the programs we discussed Friday:

PDC Oregon Bond Loan: Different from the Oregon Bond Loan, the PDC Oregon Bond is available to first-time buyers purchasing within the city limits of Portland and allows borrowers to finance renovation work – like updates to kitchens, bathrooms and roof repairs – all within the same loan.

Property eligibility – must be within Portland city limits, be owner-occupied for the life of the loan, single family unit only which includes condos and townhomes with a maximum purchase price of $361,125 city-wide and $441,375 in target areas.

For more information about the PDC Oregon Bond Loan, download the brochure.

Down Payment Assistance Loan (DPAL): This program is specifically available to first-time buyers who elect to purchase their home in one of Portland’s Urban Renewal Areas and who meet specific income limitations.  Benefits to the Down Payment Assistance Loan:

Avoid the cost of mortgage insurance.
Increase purchasing power.
Lower monthly house payments.
Creates reserves for funding immediate or future repairs and improvements.

For specific details of the DPAL program download the brochure.

Mortgage Credit Certificate (MCC): Another great program for first-time buyers in Portland.  The MCC provides homebuyers with an annual tax credit, which reduces their federal income taxes owed.  The credit helps home owners more comfortably afford the monthly payment of their first home.

The MCC is a great option for first-time home buyers (if purchasing in Targeted Areas - the first-time home buyer requirement is waived) with higher income.  Annual household income limit is based on family size – 1 to 2 people = $67,500 and 3 or more people = $77,625.

For more information about the MCC, download the brochure.

Moral of the story, there are some great programs out there to help first-time buyers, money available and rates are great!

~Kori 

The Restoration of The Confederated Tribes of Grand Ronde

In 1954 Congress passed the Western Oregon Indian Termination Act which terminated recognition of the Grand Ronde Tribe by the federal government and by the other Tribes.

After many years of struggle, the Tribe was restored in 1983.  This weekend is the Silver Anniversary of the restoration of the Federated Tribes of the Grand Ronde.

So here’s to the descendants of the Chasta, Rogue River, Umpqua, Molalla and Kalapuya peoples and to the continued success of The Confederated Tribes of Grand Ronde for many years to come.

Click here for one man’s perspective on the history of treaties made with Native Americans - from GeoCities.com

Click here for short history of the breaking and making of the Grande Ronde - from IndianZ.com

Children’s Birthday Party

OK folks, hang on to your hats!!!!!!!!!!!!!!

This has NOTHING to do with real estate or the current financial situation but I don’t care. 

Life goes on no matter how many houses I sold this month.

This past Saturday I was honored to be invited to the birthday party of a young friend of mine and I discovered the coolest new business, the Young Chef’s Academy in Tualatin.

Maybe all of you already knew about it but I sure didn’t.  What a blast.  I watched sixteen 9 year olds having a great time and learning a little bit about cooking too.  The instructor had these kids laughing up a storm AND managed to teach them how to cook a pizza at the same time.

The energy level was unbelievable and the girls were totally involved but the instructor had control over the group at all times. I don’t think I could have kept up with her for more than about 5 minutes.

Anyway, well worth checking out, and the best part is YOU don’t have to clean the flour off the floor.

Click here to check it out

Weekly Rates & other loan issues

Here is the latest weekly update from Bob Chiodo, Equity Home Mortgage. 

Estimated rates for the week of November 11, 2008

30 yr conforming 5.875 – 6.00

30 yr jumbo 6.25 – to $600k

7/1 ARM 5.50 – 5.75 conforming and jumbo

State Bond 6.25 FHA and conforming OR VA 5.875 w/1.00 5.75% w/1.50

Rates moved up a little last week but we are still below 6.00. Let’s hope it holds there for awhile.

It appears that the rate market is becoming more stable. The rates aren’t changing as frequently and the changes don’t seem to be as large.

I read a report yesterday that showed that pre-foreclosure filings were down for the second month. They were 10% lower than the August high. Repossessed homes were also significantly lower. This is great news as long as the trend continues.

Fewer foreclosures equals less inventory equals a much more stable market.

If you have clients who are behind in their payments or are upside down in their equity, strongly encourage them to contact their loan servicer. Countrywide/Bank of America is doing a lot of good work in trying to keep people in their homes. Citicorp just announced plans to preemptively contact 500,000 of their borrowers to try to ensure that they can pay their loans. These concerted efforts will help stabilize our market.

If your client’s servicer isn’t one of these, have them review their lender’s website. They will easily find information to assist them.

Another resource that is available is  www.HopeNow.com

This site has links to many servicers and counselors as well as FHA’s Hope for Homeowners. It definitely appears that there is enough momentum to keep the lower foreclosure trend in the right direction.

Here are a few items/updates that I have come across recently:

1. The mortgage insurance companies have announced another round of tightening in their underwriting guidelines. Nothing earth-shattering though. It’s now very important for loan originators to know, not just Fannie and lender guidelines, but the MI guides too.

2. We just ran into an issue with a large bank about wiring funds. This particular bank wouldn’t allow their customer to wire more than $25000 per day. The client needed to wire $100,000 to escrow to close his transaction. Of course, we didn’t know it would take four wires over four days. We all need to be aware of this and have our clients check with their banks if they intend to wire funds.

3. Conventional loan limits won’t change in our area next year. They will remain at $417,000. Some of the higher cost areas will see some changes though. In those areas, it looks like they will see the “jumbo” conforming loan limit drop.

4. Some good news on FHA reverse mortgages. We have been advised that the loan limit/maximum claim amount is $417,000. This will help many senior citizens to have access to more funds from their home. The caps in loan origination fees were also lowered.

For more information please feel free to email Bob at BobChiodo@EquityHome.com

FHA Loan Limits Decrease in 2009

On Monday, the U.S. Department of Housing and Urban Development (HUD) announced the new Federal Housing Administration (FHA) mortgage loan limits for 2009. 

For Oregonians and especially those of us in the Portland Metro Area, as of January 1, 2009, FHA loan limits will be significantly decreased.  So what does that mean?  In Multnomah County, the current FHA loan limit is $418,750; as of January 1, 2009 that limit will decrease to $362,250.  Buyers seeking FHA financing for a homes over $362,250 will need to either close prior to December 31, 2008 or convert to a conventional loan after January 1, 2009.

Also, remember that the FHA minimum down payment is increasing at the beginning of the year.  Currently, buyers can put as little as 3% down with FHA financing, in 2009 that minimum will increase to 3.5%.  At this time, conventional loans require a minimum down payment of 5%.

If you’re looking to buy – now’s the time!  We have great inventory, there are good values to be found and rates are great (hovering around 6%).

Information provided by Chris Jordan, Loan Officer at Cosmopolitan Funding, The Nassar Group.

ChrisJ@pacnwm.com
Direct: 503-970-1286

~ Kori

Verboort Sausage and Sauerkraut Dinner

Yes, that’s what I said.  The 74th Annual Verboot Sausage and Sauerkraut Dinner was this past Saturday and I went to it.

I had absolutely no expectations whatsoever and went into it with a certain amount of trepidation, but I am here to tell you that IT WAS FABULOUS!!!!!!!!!!!!!!!!

What an amazingly well run and fun event.  I don’t have the numbers for this year yet, but, in prior years, over 13 tons of bulk sausage was sold and over 4,000 dinners were served.

A really nice crowd of people who were very happy to welcome strangers.

Check out the details and make a date for 2009, first Saturday in November.

Eco-Friendly Cleaners to Protect the Environment & Your Budget

Many products we use to care for our homes include ingredients that can be harmful to people and the environment.  Not only are some of these products toxic, they can be expensive.  Here are a few make-it-yourself cleaners and tips for keeping your home clean and less-toxic.

All-purpose cleaners 
Mix ingredients for each recipe in a spray bottle.  Use for cleaning counter tops, floors, walls, carpet and upholstery.

1. Combine 1/4 cup white distilled vinegar, 1/2 teaspoon liquid soup and 3/4 cup warm water, shake to blend.  For really big jobs, combine 1/4 cup liquid soap, 1/2 cup white distilled vinegar and 2 gallons of warm water in a pail and stir to blend.
2. Dissolve 4 tablespoons baking soda in one quart of warm water.
3. Use a mixture of 1 & 1/2 cups vinegar to 1 quart of warm water.

For an abrasive cleaner use baking soda or a non-chlorinated scouring powder such an Bon Ami.

Wood furniture polish
Mix 3/4 cup olive oil or other vegetable oil, 1/4 teaspoon vinegar and 1/2 teaspoon lemon oil (optional) in a squirt bottle.  Squirt on furniture or rag and into wood.  Shake well before each application.

Fabric softener, deodorizer & whitener
Add 1 to 2 cups of vinegar to rinse cycle to deodorize and soften fabrics.  To whiten, add 1/2 cup of baking soda to deodorize and brighten clothes.

For more great home tips check out Metro!

~Kori