Max Kemsley, Terra Mortgage Banking

Thank goodness! INDUSTRY NEWS New & Simpler Mortgage Disclosure Forms Will Soon Debut... Mortgage terms will be simpler for home buyers to read and understand come Aug. 1. Borrowers will receive one disclosure, the Loan Estimate, detailing the terms and projected closing costs shortly after application, and another, the Closing Disclosure, just before signing off. The new forms, mandated by the Consumer Financial Protection Bureau, will likely seem to consumers a relatively minor, if welcome, change. But for the lending industry, and all the other parties involved with mortgage transactions, preparing for the switch is a massive undertaking. The new forms are part of a nearly 1,900-page rule created by the bureau to fulfill its obligation under the Dodd-Frank Act to integrate and simplify the four different mortgage disclosures currently required under the Truth in Lending and Real Estate Settlement Procedures acts. Commonly referred to as the TILA-RESPA rule, it became final back in November 2013. With the Aug. 1 effective date looming, the lending industry is scrambling to comply. The rule doesn’t just streamline the disclosure forms, making the features and costs of the mortgage easier to understand. It rewrites long-established rules about the timing and method of disclosing, what triggers a disclosure requirement, and under what conditions you might need to re-disclose. One significant new requirement is that consumers have the Closing Disclosure in their hands three days before they sign their loan papers. Getting those disclosures to consumers on time, and documenting that delivery as proof of compliance, means more lenders will have to adopt technology that enables them to deliver the material electronically. It also means that the lender, title company, real estate broker, insurance agent and anyone else involved in the transaction will have to come together a lot sooner to prepare that closing statement so the customer receives it in time. Likewise, at the front end of the transaction, lenders will be required to provide consumers with the Loan Estimate no more than three business days after they submit a loan application. That presents a new challenge for title and settlement service professionals.

INDUSTRY NEWS Is Paying Off Your Mortgage Early a Good Idea? Being debt-free is a good goal to have, but you may want to think twice before prematurely paying off your mortgage. With interest rates near record lows, homeowners might be better off putting that money to work for them elsewhere....Continue reading

TERRA MORTGAGE BANKING OFFERS Mortgage solutions for our Realtors and borrowers Solutions for Buying before Selling: We can use a buyer’s potential future rental income (as documented by an appraiser’s rental survey) to offset a departing home’s housing expense, when qualifying to buy a home before selling.... There is no LTV (equity) requirement for the existing home. There is no need or requirement to lease the home or provide a lease agreement.

Alpine Dam in Fairfax

INDUSTRY NEWS Majority of Economists Believe The Fed Will Raise Rates Midyear Even If Inflation Remains Low. If you are in the market to purchase a home or refinance your present mortgage, it would appear the time to act is now.... In a recent survey of 53 leading economists, More than half believe Federal Reserve officials will look past low inflation and stay focused on raising interest rates around mid-year. Some 45 percent of 53 economists in the survey said the central bank will raise the benchmark lending rate in June. Six percent said July, while 30 percent said the Fed will wait until September for the first increase since 2006. Fed officials last month said they expect to raise the rate this year. The policy-setting Federal Open Market Committee, meeting for the first time in 2015 on Tuesday and Wednesday in Washington, will be challenged by reports contrasting the encouraging performance of the U.S. economy with a global outlook that has darkened since they met in December.