Helping Washington State homeowners learn more about their mortgage options.
My father, Ron Christopherson, passed away Friday afternoon, just as the beautiful sun was setting. He was only 64 years old and had been suffering from several heath issues, including cancer. I am thankful that he is no longer in pain and my little sisters and I miss him terribly.
I will be taking a few days off as we plan for his services.
It's come to my attention that the last day to sign refinances and have them fund by 2010 is on December 24th, Christmas Eve. Let's show our appreciation for their hard work and do whatever we can to avoid them having to work late getting our refi signings done on this holiday.
Santa's keeping a list of the LO's who are naughty or nice…so if you want to avoid a lump of coal with your next commission check, please think of your dedicated escrow officers and plan accordingly.
Happy Holidays!
PS: Here's a link to days King, Pierce, Snohomish, Kitsap and Thurston counties will be closed this month due to furloughs and holidays.
Back on "Section X" of a residential mortgage loan application, borrowers are asked to check boxes to indicate what their ethnicity and race are.
It's not unusual when I take a loan application and the borrower wants to mark the box that it's none of the the government's business. I don't blame them…but I wonder if they're aware that when they check "I DO NOT WISH TO FURNISH THIS INFORMATION" that mortgage originators may be required to guess depending on how the application is taken.
Check out the fine print on the loan application:
"If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person."
I can tell you from days in the escrow biz, this can be kind of awkward when you're signing someone and the person across from you says "why is this box marked stating that I'm ….?!!" Your loan originator probably had to make their best guess.
The Home Mortgage Disclosure Act (also referred to as HMDA, pronounced hum-da) along with Regulation C requires lenders to collect this information to make sure that lenders are not discriminating.
From Fannie Mae:
X. Information for Government Monitoring Purposes
This section is included to aid the federal government in monitoring compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. Supplying this information is strictly voluntary on the part of the applicant, but lenders should ask all applicants to provide it, including those who apply by telephone and through the Internet, and should describe the reason for collecting this data. Race and ethnicity are separate categories, and although the lender should ask applicants to furnish information for both, applicants may furnish one but not the other. Note that there is no longer a place for applicants to indicate race as "Other" but applicants may check as many races as apply.
The Home Mortgage Disclosure Act and its implementing Regulation C generally require Lenders to collect sex, race and ethnicity data on all applications.
When an application is taken in person and an applicant elects not to provide some or all of this information, federal law requires the lender to note the applicant's sex, ethnicity, and race on the form, based on the lender's visual observation or the applicant's surname. To aid in identifying applicants who may be of Hispanic ethnicity and who elect not to self-identify, the lender may wish to consult the list of Spanish surnames developed by the U.S. Bureau of the Census. Furthermore, the lender may wish to advise the applicant that he may complete or change the information in this section after the application is approved, at any time up until closing.
And from HMDA:
If an application is taken entirely by mail, Internet, or telephone, and the applicant declines to provide information on ethnicity, race, or sex, the lender must use the code for "information not provided by applicant in mail, Internet, or telephone application."
The only way to not participate in disclosing your ethnicity or race on a loan application is to completely apply on line or mail. I'm wondering, if a person understands why this information is being collected, why would they not want to participate?
I'm not sure if it's an anniversary or birthday, but I do know that this blog was created four years ago today. Here's the post that launched The Mortgage Porter.
I cannot imagine not having my blog. It has become a significant part of my career. It helps me communicate with my clients, has become a resource to help educate my readers, some days it serves as a form of therapy when I can "vent" frustration and it's also brought me amazing opportunities. There are so many wonderful people whom I have had the opportunity to know because of Mortgage Porter and social media.
Thank you so much for reading Mortgage Porter.
Preapproval letters typically begin stating that a home buyer has been qualified or preapproved to buy a home priced at specific amount. What it really boils down to is how much mortgage payment the home buyer qualifies for based on the borrowers monthly income and the debt to income ratio that is being allowed by the program guidelines. Your proposed mortgage payment determines the loan amount that you’re qualified for. Add the funds to cover your down payment less the closing cost and you’ll have the sales price.
Happy Thanksgiving to you and your family from ours.
Mortgage Master Service Corporation is closed today and tomorrow. We will reopen for business as usual on Monday, November 29, 2010.
Just a few photos I caught with my Droid-X while we were cruising through Seattle today. With the "s" word in the forecast, we stopped by REI for some mittens and other warm winter wear.
The first two photos are of Seattle's historic Steam Plant.
You can just see part of Qwest Field, where the Seahawks and Sounders play, to the right of King Street Station from Pioneer Square.
Fannie Mae issued their confimation that the current loan limits of 2010 will continue through 2011 with certain "high cost areas", like Seattle, Bellevue, Everett or Tacoma, retaining the temporary high balance loan limits for loans originated through September 30, 2011.
High Balance loans are set to roll back to lower limits previously set with loans originated October 1, 2010. For the great Seattle area, that means that loan amounts over $506,000 will be considered non-conforming (jumbo rates and underwriting guidelines) for a single family dwelling. I'll be sure to write more about this as that time approaches. Click here for loan limits effective October 1, 2011 through December 31, 2011 in Washington.
High Balance Loan Limits for Washington State until September 30, 2011:
King, Pierce and Snohomish Counties
1 Unit – $567,500
2 Unit – $726,500
3 Unit – $878,150
4 Unit – $1,091,350
Clark and Skamania Counties
1 Unit – $418,750
2 Unit – $536,050
3 Unit – $648,000
4 Unit – $805,300
Jefferson County
1 Unit – $437,500
2 Unit – $560,050
3 Unit – $677,000
4 Unit – $841,350
Kitsap County
1 Unit – $475,000
2 Unit – $608,100
3 Unit – $735,050
4 Unit – $913,450
San Juan County
1 Unit – $593,750
2 Unit – $760,100
3 Unit – $918,800
4 Unit – $1,141,850
NOTE: The following Washington counties do not have "high-cost area loan limits": Adams, Asotin, Benton, Chelan, Clallam, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Grays Harbor, Island, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend Oreille, Spokane, Stevens, Thurston, Wahkiakum, Walla Walla, Whatcom, Whitman and Yakima.
Conforming Loan Limits for 2011
1 Unit – $417,000
2 Unit – $533,850
3 Unit – $645,300
4 Unit – $801,950
Rhonda Porter is a Licensed Mortgage Originator MLO121324 living in the greater Seattle area. Rhonda began her career in 1986 in the title and escrow industry and began her mortgage career in 2000. She enjoys helping people understand the mortgage process and started writing The Mortgage Porter in late 2006. Read More…
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