New FHA Changes for 2010

Lenders continue to restrict guidelines for loans, and FHA has published some new changes that should take effect this Spring and Summer. The specific changes are noted here:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
If you plan on buying or refinancing this year, it is a good idea to go ahead and talk to a lender so you know what to expect, because it will be different form the last time you bought a property. Also, it is a good idea to keep an open dialouge with that lender - say, if you want to buy in 6 months, my recommendation would be to make it a point to speak monthly because guidelines are changing frequently these days and you don't want to be surprised, you want be prepared, once you find the perfect property.

Mitchell Wharf Homesites

The Spring 2010 Daniel Island Homesite Offering will be Mitchell Wharf in Smythe Park. This offering will consist of both marsh and premier deepwater homesites along the banks of the Wando River. Pricing and other details to follow.

Charleston Market Recovery in 2010?

Here is an article on what an independent research firm concludes the housing market here in Charleston will do in 2010:
http://www.scbizmag.com/content/view/136347/1/
Certainly we all hope values will rebound this year and time will tell. It will be interesting to look back an evaluate this information in 6 months to see how far we have come.

New RESPA Regulations

Today our office had an attorney come and speak to us highlighting some of the changes in new RESPA regulations which apply to contract written on or after January 1, 2010. The purpose of these new policies is to amend "HUD's regulations to further RESPA's purposes by requiring more timely and effective disclosures related to mortgage settlement costs for federally related mortgage loans to consumers." This will hopefully educate the public better so people know what they are signing up for at closing.
In short, the Good Faith Estimate (GFE) will be compared to the HUD at closing. Certain cost estimates the Buyer received when presented the GFE cannot change at all between the time the GFE was presented and closing or the attorney will not allow closing to take place, other costs cannot fluctuate more than 10%, and some (such as homeowners insurance) are allowed to remain variable.
One closing cost that will not appear on the GFE which a Buyer should always ask their agent about are HOA dues. Other than that, there should be few surprises for Buyers at closing today.
Two items on the GFE are lumped together are Item 1, the "Origination Charge" and Item 4 "Title Services and lender's title insurance." A Buyer should ask their Lender for a breakdown of the costs associated with Item 1 and should ask their attorney for a breakdown of the costs associated with Item 4.
These new regulations are designed to better protect consumers through more disclosures. In my opinion is it clearly a positive reform that will help Buyers shop loans better and make more informed decisions. For more information, please visit:
www.hud.gov/repsa