Huge FHA Announcement

Starting June 11, 2012 FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) for certain FHA borrowers with a drop to just .01%. The past rate of PMI on FHA loans made the streamline almost impossible due to the lack of benefit to the homeowner. Borrowers will now be able to get into a streamline FHA loan that they were previously unable to get. To qualify borrower must: *be current on your existing FHA mortgage. *your current FHA mortgage must have been endorsed by 5-31-09 Also employment and income verification is not needed and no credit report or appraisal is required. These changes took effect on 6-11-12. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

New RESPA rules may simplify mortgage documents

The Consumer Finance Protection Bureau has proposed revisions to the financial disclosure forms that are included in loan packages in order to simplify the process. The redesigned Good Faith Estimate and Closing Disclosure forms attempt to make it easier for the borrowers to understand there loan terms. The two forms required currently in all loan packages are the Truth and Lending Disclosure Statement (TIL) and the Real Estate Settlement Procedures Act (RESPA), currently contain simmular information but often times are confusing for the borrowers. By using plain language and reducing redundancy, these forms should make the loan process and signing much easier to understand. The CFPB is seeking public comments regarding these proposed revisions until November 6, 2012. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com