My friend, Russell Rhodes from SWBC Mortgage shared this news regarding FHA loans in his latest newsletter. If you need assistance with home financing, you can reach Russell at 832-382-2224 or visit his website at http://goo.gl/0QM1tl.
Important FHA Changes
FHA has made changes to how Collections, Charge Offs, Judgments and Disputed Accounts are handled. These changes are effective as of October 15th, 2013. Please see below a summary of the FHA Mortgagee letters 2013-24 and 2013-25 and if you have any questions please contact us. Thank you.
COLLECTIONS AND/OR CHARGE OFF ACCOUNTS
· Medical collections and/or charge offs are excluded from this guidance.
· A letter of explanation from the borrower(s) is:
o Not required for loans receiving an approved/eligible from FHA Total Scorecard (DU).
o Is required for all manually underwritten loans. In addition to the letter of explanation, the borrower(s) must provide supporting documentation that provides the DE underwriter with evidence that the collection account was not the result of the borrower’s disregard for financial obligation and/or inability to manage debt.
· Payment plan
o Must be considered if the aggregate balance of all outstanding collections is equal to or greater than $2000.
o Considered for both manual underwrites and loans receiving a FHA Total Scorecard (DU) A/E decision.
o Medical collections are EXCLUDED from this aggregate.
§ Unless excluded by State law, the collection accounts of a non-purchasing spouse in a community property State are INCLUDED in this aggregate.
o One of the following actions MUST be taken if the aggregate from all borrowers is $2000 or higher. (Note: If borrower A total is $1500 and borrower B total is $600 the sum is over $2000 and therefore the guidance applies.
§ Payment in full at or prior to closing (with the source of funds properly verified)
§ If a payment plan has been made with creditor, include the agreed upon amount in the DTI.
§ If a payment plan has not been made, 5% of the balance must be included in DTI.
· Applies to all loans, whether approved by Total Scorecard (DU) or manually underwritten.
· All judgments (including medical) must be paid in full at or prior to closing.
o An exception may be given if the borrower has entered into an agreement with the creditor. Full documentation of the payment agreement required AND a minimum of 3 months of scheduled payments have been made. Borrowers may NOT prepay the scheduled payments in order to satisfy the 3 month requirement.
· Payments must be included in the DTI.
o Unless exempt by State law, the judgments of a non-purchasing spouse, in a community property State, included in this guidance.
DISPUTED ACCOUNTS - DEROGATORY INFORMATION ON THE REPORT
· This category is used to determine if a manual downgrade to a loan is required, if the loan is approved by Total Scorecard (DU) and there are derogatory disputed items on the borrower’s credit report.
· Derogatory disputed information is defined as:
o Disputed collection accounts – OR
o Disputed charge off accounts – OR
o Disputed accounts with late payments in the last 24 months
· Excluded from the calculation are:
o Disputed medical accounts.
o Accounts that are the result of identity theft; credit card theft and/or unauthorized use. However, there must be appropriate documentation, such as a police report, to substantiate the theft and/or unauthorized use claim. If proper documentation cannot be obtained, then the accounts are included in the calculation.
· Cumulative outstanding balances from all borrowers are $1,000 or higher the file must be downgraded to a “Refer”. (Note: If borrower A total is $500 and borrower B total is $600 the sum is over $1000 and therefore the guidance applies.)
DE underwriter will then consider this derogatory disputed information in the
credit analysis as a manual underwrite.
· Cumulative outstanding balances from all borrowers are $999 or less, a downgrade is NOT required.
DISPUTED ACCOUNTS - NON DEROGATORY INFORMATION ON THE REPORT
· Non-Derogatory disputed information is defined as:
o Disputed accounts with zero balance
o Disputed accounts that are current and paid as agreed
o Disputed accounts with late payments aged 24 months or longer
· Non-derogatory disputed accounts do NOT require a manual downgrade.
· The DE underwriter IS required to consider the disputed accounts and the potential impact to the borrower’s ability to repay the loan, including the impact to the DTI.
In Houston and the surrounding communities, many of us are fortunate to have a backyard pool or spa. For others the neighborhood pools offer a haven from the heat, a place to cool off and to enjoy a refreshing dip.
Unfortunately, every summer we hear news reports about drowning victims of all ages from toddlers to seniors. Many of these incidents could have been prevented if we all follow good water safety practices.
What are those practices... from the Red Cross website; I am sharing the best of best. Visit http://www.redcross.org/prepare/disaster/water-safety for these and other helpful information -
Follow these safety tips
whenever you are in, on or around water:
Make Water Safety Your Priority
Prevent Unsupervised Access to the Water
Maintain Constant Supervision
Know What to Do in an Emergency
· Get a professional AC check-up – clean and replace filters
· Adjust thermostat settings
· Increase your pool maintenance
· Re-seal your deck
· Check your hoses for leaks & set soakers
· Adjust your sprinkler schedule - check sprinkler heads and coverage
· Clean your ceiling fans
· Check outside outlets
· Exterminate inside and outside
· Use appliances wisely – wash clothes and dishes late evening or night / cut down on baking and indoor broiling
· Create with energy friendly window shades & coverings
Purchase hurricane supplies early – before the storm! With the hurricane officially starting June 1st, here is a list** of supplies that you should have on hand:
Once you get these all checked off, it’s time to have a fun with your family and friends this summer. After you, take a nap, of course!
Bible Schools & Religious
Zapped Camp – Cypress Bible Church
Summer Blast – Cypress United Methodist Church
Sports & Arts Camp and Tropical Zone 2013 – Fairfield Baptist Church
KWOW Kidz Kamp – The Church Without Words
Fest - April 27th 10:00am until 5:00pm
Nature Fest will be a hoot as event-goers attempt to break the Guinness World Records® title for the most people giving a simultaneous bird call, finely feathered aerialists perform seemingly impossible stunts and a world-renowned zoologist entertains with his even more famous contingent of animals. Plus, camel and pony rides, bubble runners, bumper boats and gourmet food trucks. Free!
Information and Event Details - http://www.bridgeland.com/nature-fest-rules
Bridgeland - Nature Trails
The trails in Bridgeland are designed to appeal to a wide variety of homeowners seeking a broad range of activities.
The hierarchy of trails are being developed in phases. Ultimately they will run border to border, to provide physical links for pedestrian/bicycle traffic to various villages, village centers and activity centers. Exercise trails with fitness stations, as well as nature trails along waterways and creeks, meander through the development to provide views of water fowl, aquatic plants/grasses and open up educational opportunities.
Preserving the Cypress Creek Corridor and making it accessible to residents is part of Bridgeland’s overall environmental plan, which strives to bridge the area’s rich natural landscape and residential development.
In the early stages of development, planners devised a multi-faceted and meaningful land use plan that supports the legacy of the Katy Prairie, widespread environmental initiatives, passive and active recreation for residents and community infrastructure,
Bridgeland is a wonderful community. I should know - I live here, work here, and play here. If you would like to join my family and I - just give me a call. I am sure together we can find that "just right" home!
The Bridgeland Farmers Market is located in the parking lot adjacent to the Activity Center in the beautiful community of Bridgeland. 16902 Bridgeland Landing, Cypress, TX 77433
April Market Events:
Celebrate Earth Day: We will be sharing tips and resources on how to recycle in Bridgeland.
Plant a Seed! All kids will be able to plant a seed and take it home - a great science project to watch a plant grow!
T-Shirt Bag: Bring your old T-shirt and learn how to make your very own T-shirt Bag.
The market is held every 2nd Sunday of the month.
More information at www.farmersmarketatbridgeland.org
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