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8 Basic Requirements of the Ability to Repay Mortgage Rule

Regardless of whether you believe that the so-called Great Recession was caused by reckless and irresponsible mortgage lending or government perversion of free markets by encouraging banks to make risky mortgage loans to people with questionable credit and practically no down payment or a combination of the two, one thing is irrefutable;

The government has created a whole new bureaucracy called the Consumer Protection Financial Bureau (CFPB) whose authority is far reaching and made possible by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).

FAQ – Can I Close My Mortgage Loan Using a Power of Attorney (POA)?

faqUnder normal circumstances, lenders require that all parties to a mortgage agreement be present in person at settlement to sign their loan documents. However, there can be very legitimate circumstances under which it isn’t possible for the borrower to be present

Although every lender has a different policy, at AES Lending, our policy is as follows: Continue reading FAQ – Can I Close My Mortgage Loan Using a Power of Attorney (POA)?

Congress Approves Funding for USDA Rural Development Loans in Raleigh for FY2014!

With all the hoopla and political grand standing coming out of Washington DC, it is nice to see that on … More Congress Approves Funding for USDA Rural Development Loans in Raleigh for FY2014!

FAQ – How Long after a Short Sale or Pre-Foreclosure before I can Qualify for a Conventional Mortgage Loan?

Deed-in-Lieu of Foreclosure and Preforeclosure Sale

faq

Even though your mortgage payment may have never been late, these transaction types are completed as alternatives to foreclosure therefore, as you might imagine,  they are treated seriously. So serious that they often are viewed by underwriters just as serious as an actual foreclosure or bankruptcy. Continue reading FAQ – How Long after a Short Sale or Pre-Foreclosure before I can Qualify for a Conventional Mortgage Loan?

FAQ – What is a IRS Request for Transcript of Tax Return (4506t)

One of the most common cause of foreclosure is misstated or overstated income. Since the mortgage meltdown of 2008, Imageand because of increased accountability to Washington, lenders are now required to take extra steps to verify that borrowers have the ability to pay. Continue reading FAQ – What is a IRS Request for Transcript of Tax Return (4506t)

FAQ – How Will a Government Shut-down Delay My Mortgage Loan Application?

faqThere’s been a lot of rhetoric coming from both sides of the congressional aisles these days; from Democratic and Republican parties and even a few in between. But  recently the media has begun reporting government shutdown fallacies as facts. I’ve stayed out of this very heated political discussion for obvious reasons, but when a client recently sent me this article Shutdown impact: Tourists, homebuyers hit quickly from of all places the Associated Press, I just had to respond.

Answer(s)

Continue reading FAQ – How Will a Government Shut-down Delay My Mortgage Loan Application?

FAQ – FHA ‘Back to Work; Extenuating Circumstances’ Explained

Normally HUD Mortgage Letters are pretty boring stuff but the FHA recently made headlines when they issued the HUD Mortgagee letter 13-26 dated 08/15/2013 with the subject ‘Back to Work – Extenuating Circumstances’.

This 15 page letter outlines how the FHA plans to make exceptions that will allow borrowers with troubled past related to the economic malaise commonly called the Great Recession, to reenter the market in a shorter time-frame. Continue reading FAQ – FHA ‘Back to Work; Extenuating Circumstances’ Explained

5 tips to pay for college tuition

Five Tips to Pay for College
without leveraging the family home

5 tips to pay for collegeOver the course of the recent borrow and spend decade people from all walks of life and education levels  convinced themselves of the craziest ways to spend borrowed equity from their homes! In spite of wall to wall coverage in the media, it hasn’t changed that much in this decade either.

Recently, a man entered my office and asked me to expedite the closing date of his cash-out mortgage refinance transaction in order to free up the available funds on his Home Equity Line of Credit that he had already maxed out once before with varied consumer purchases so that he could take a $4,000 draw in to pay for a week-long vacation rental at the North Carolina beaches with his ADULT children and grandchildren! To be clear, I am all for vacationing with family and enjoying the fruits of your labor but when it’s borrowed money that is secured by your family’s home, well that’s downright foolish and I don’t recommend it one bit. Continue reading 5 tips to pay for college tuition

Why is it so hard to get a loan for a manufactured home?

Colfax, IL; House

This is a question that I receive often so today when a client emailed me asking me this very same question it was no surprise to me. This post is based largely in part to that persons email and my response. The email began; 

I am pleased to inform you that due to your lack investors due to my single family home which just happens to be manufactured and my low [balance]  mortgage, I cannot be considered for the “new low rates”.  Seems as though all you are interested in is condos/townhouses/stick-built homes in a more affluent community. – Unhappy Consumer

Continue reading Why is it so hard to get a loan for a manufactured home?