Archive for October, 2015

Happy Halloween – Fun things to do for Halloween this weekend!

October 30th, 2015

10-30-2015 11-20-36 AMHaunted Basement
The Soap Factory, 514 St. SE,       Minneapolis

The Haunted Basement is a Halloween tradition now in its 7th year. Over 75 artists,  directors and  performers have come together  to bring your  worst fears and unimaginable horrors to life.  It  can be messy – so bring a change of clothes for afterward. The Haunted Basement runs through November 3rd. Tickets are $25 – $27 –

BareBones Puppet Halloween Extravaganza
Hidden Falls Regional Park, Mississippi River Blvd. at Magoffin, St. Paul

It’s the 20th anniversary of this community-created pageant of larger-than-life puppetry, drama, stilting, dance, fire, song, and music. BareBones Halloween Extravaganza is appropriate for all ages. Performances run October 31, November 1 & 2 at 7:00 pm. A $5 – $20 donation is requested upon entry to the show –

First Avenue’s Annual Halloween Party & Costume Contest
First Avenue, 701 First Ave. N., Minneapolis

This party takes place on Halloween, October 31. Tickets are $10 in advance, $15 day of show and $20 at the door. It is an 18+ party and starts at 8:00 pm –
The Great Pumpkin Fest at ValleySCARE
Valleyfair, One Valleyfair Drive, Shakopee

While the older kids and adults get their scare at night at Valleyfair, the younger kids can have a blast at the Great Pumpkin Fest during the day. There is trick-or-treat, a corn maze, story-telling by a zany witch who reads It’s the Great Pumpkin Charlie Brown, a petting zoo, and much more. The fun runs Saturdays & Sundays through November 1st – Read the rest of this entry »

Fannie Mae is introducing their new HomeReady product – by Randy Cullen

October 23rd, 2015

homeready-logo-stacked1Fannie Mae is retiring MyCommunityMortgage (MCM) and providing an enhanced product called HomeReady. The HomeReady Mortgage is an enhanced affordable lending product that will be offered in place of the MyCommunityMortgage Lending Program. Fannie Mae has developed new or revised loan and borrower eligibility requirements and underwriting flexibilities that are targeted to low- to moderate-income borrowers and buyers in designated low-income, minority, and disaster-impacted communities. As a result of these changes, the MCM product has been redesigned with features intended to help lenders, non-profit organizations, housing finance agencies, and other affordable housing advocates serve today’s market and support sustainable homeownership.

The new HomeReady product can be used for purchasing a home or refinancing a current mortgage.  The program allows for a 3% down payment when purchasing a one-unit primary residence. It also allows for 1-4 unit purchases when one unit is owner occupied; however, the required investment increases as the unit count increases. The product is a 30 year fixed rate, but also allows for 5/1, 7/1, and 10/1 ARM loans which can add greater flexibility in rising interest rate environments.

The HomeReady product does not require the borrower to be a first-time home buyer, but it will have homebuyer training as a requirement. The homebuyer training will be through Framework, the online format provided through the Home Ownership Center of Minnesota. Read the rest of this entry »

Navigating the TRID waters – one week in! – by Randy Cullen

October 9th, 2015

new-york-nyc-vacation-rental-law-confusion-compliance-rules-regulationsTRID has now been in place for nearly one week. As far as I know, there have not been mass protests or riots in the streets, and no one has died from its implementation. It has, however, been causing a bit of stress for those of us in mortgage and title service areas, as we are now seeing and dealing with all that TRID is – and isn’t.

TRID stands for TILA-RESPA Integrated Disclosure Rule. This rule adds two new forms to our vocabulary and removes four old forms from it. While the new forms are intended to simplify the process and eliminate confusion, they are not totally hitting either mark. As a lender, we now have more change to deal with – all while navigating the learning curve as we educate Realtors, Builders, and consumers on how this will impact each of them. A Senior LO here at the branch sent out information to Realtor Partners this week that hit most of the hot buttons we have been experiencing. Following are some of the main points:

Written consent from the borrower will now be required prior to sharing the two new disclosures, the LE (loan estimate) and the CD (closing disclosure), with an agent. Yes, we now have a form for that. For Realtors who need to turn in an estimate of loan costs with their purchase agreements, an LE will be provided upon receipt of the signed Authorization to share information from the borrower.

Borrowers may voluntarily provide documentation of income and assets, allowing us to complete a full pre-approval; however, we can no longer make those documents a requirement prior to providing the LE (loan estimate). Without actual documentation to verify income, assets and credit of a borrower, it could create difficulty for a Realtor or Builder who needs a pre-approval for an offer or a contract to build. Going forward, pre-approval letters will be difficult to generate without the cooperation of the consumer. Please be patient as we work through this new process.

There’s been a lot of conversation about giving everyone more time to close due to the added complexities of the new law. We are moving to a minimum 45 days (adding an extra 15 days to the mix), and I just had a conversation with a builder who said their normal 120 day build cycle is now 135 days because of these changes. Every lender must watch very closely all dates in the life of a loan process. When multiple transactions are to close on the same day, it only takes one of the lenders to miss on delivery of the CD to cause the chain of closings to fail. This is a domino effect you do not want to experience.

All seasoned loan originators (us) who work for companies that excel in systems, training, and compliance (Fairway) will deliver what is promised on the day it was promised. Our corporate attorneys have actually read all 1800 plus pages of the new rule – without crying!  We trust them to help guide us through the TRID waters, just like you trust us to know the rules and deliver.

Stay tuned … As we learn more, we will share.  Sell well.   – Randy Cullen NMLS 326128

Top Things Real Estate Agents Need to Know About TRID … by Barb Crea

October 2nd, 2015

10-2-2015 8-45-28 AMTRID IS HERE – a change of forms and a change of processes.  TRID is about educating and communicating. The RESPA-TILA Integrated Mortgage Disclosures Rule, also known as TRID, goes into effect Saturday, October 3, 2015. While we know you really don’t care about all the details surrounding TRID, there are some major changes that may impact the way you do business going forward.

Change CAN be good! The Consumer Financial Protection Bureau (CFPB) wants to make sure 2007 never happens again. TRID is beneficial to your borrowers – forms are easier to read and understand. There will be less confusion and scrambling at the closing and the compliance timelines will make ALL of us perform better.

One of the biggest changes you will notice is the Good Faith Estimate (GFE) and the initial Truth-in-Lending Disclosure (TIL) will be replaced with the Loan Estimate (LE), and the HUD-1 Settlement Statement and final Truth-in-Lending Disclosure (TIL) will be replaced with the Closing Disclosure (CD). Another big change, one that seems to be creating a lot of concern out on the street, is the borrowers must receive the Closing Disclosure (CD) at least 3 business days before the scheduled closing. A 30-day closing date may no longer be ideal since the new disclosure rules may affect the contract terms for either the buyer or the seller.

Top Things Real Estate Agents Need to Know to Avoid Closing Delays

  1. With the new TRID rules, the clock is ticking – Submit all contract addendums and required documents to the Loan Officer immediately upon execution.
  2. Use Title Companies and Closers who are responsive and timely. Be wary of scheduling back-to-back closings.
  3. Be familiar with the Lender’s process for issuing the Closing Disclosure (CD). Ask the Lender what they’ve done to prepare for TRID.
  4. Give your clients realistic expectations, especially when repairs may be required to the property prior to closing. Let the Lender know if the property has any unique features, zoning, easement issues, commercial influences, or proximity issues.
  5. Know that ALL required services, such as appraisal and title, will be ordered by the Lender right away. Keep in mind, on existing properties with FHA financing the appraisal may require additional services to be ordered such as a termite inspection.
  6. Pay special attention to Homeowners Associations (HOAs) to avoid last minute surprises – this includes knowing if there is an HOA and who the Lender needs to contact for required documentation.
  7. Condominiums will require a Condo Questionnaire to be completed by the property management company. Be sure the Lender has the HOA contact information on “Day 1” so this is ordered right away.
  8. New Construction – Change Orders should be provided to the Lender a minimum of 30 days prior to closing, if not sooner. Final numbers are needed a minimum of 2 weeks prior to closing so underwriting conditions can be cleared and the Closing Disclosure (CD) can go out at least 3 business days prior to the scheduled closing.
  9. When dealing with a Bank Owned Property or Short Sale, be sure to take into consideration the timelines required by the Bank so you can avoid setting unrealistic closing expectations.

More precision upfront and extra communication during the process will be key to avoiding closing delays! Fairway Independent Mortgage Corporation has been busy training our Loan Officers, Processors, and Closers for the last several months, along with tweaking processes and creating compliance tracking tools to be sure we’re prepared for TRID… and WE ARE READY! The Kate Wilson Team at Fairway is here to answer any questions and concerns you may have about TRID – just call us at (952) 853-0222 or email – we are a resource for YOU!  -Barb Crea, NMLS #310389