Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders so far this Spring.
Accomplishment number 3: FHA Withdrawal of the “Credit Disputes” Rule
NAHB and other housing and banking industry groups helped convince the Federal Housing Administration (FHA) to withdraw a controversial rule slated to go into effect on July 1 that would have prohibited borrowers with any credit disputes of more than $1,000 from obtaining FHA financing.
Earlier this year, FHA issued a mortgagee letter stating that buyers either had to pay off ongoing credit disputes of more than $1,000 that appeared on their credit reports or show proof that they have entered into a repayment plan with their creditors before they could qualify for an FHA loan. NAHB and others in the housing finance community opposed this action citing concerns that it would further restrain the flow of mortgage credit and prevent creditworthy borrowers from qualifying for an FHA-insured loan. Responding to these concerns, on June 15, the FHA issued an updated mortgagee letter formally rescinding its earlier ruling on this matter. However, the agency is expected to issue new guidance on this topic in the near future, so we'll be keeping a close eye on how this develops going forward.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Tuesday, August 28, 2012
FHFA: Mortgage interest rates continue to fall
The Federal Housing Finance Agency (FHFA) today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage (ARM) contracts, was 3.66 percent based on loans closed in July. Beginning in March, FHFA is calculating interest rates using un-weighted survey data. There was a decrease of 0.01 percent from the previous month. View the complete contract rate series at FHFA.gov by clicking here.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 4 basis points to 3.84 in July. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the July 25 - 31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-June.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 3.65 percent in July, down 2 basis points from 3.67 percent in June. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.78 percent in July, down 3 basis points from 3.81 percent in June. This report contains no data on adjustable-rate mortgages due to insufficient sample size.
Initial fees and charges were 0.95 percent of the loan balance in July, down 12 basis points from June. Twenty percent of the purchase-money mortgage loans originated in July were "no-point" mortgages, up three percent from the share in June. The average term was 27.5 years in July, unchanged from June. The average loan-to-price ratio in July was 76.1 percent, up 0.5 percent from 75.6 percent in June. The average loan amount was $258,900 in July, down $4,300 from $263,200 in June.
View the FHFA press release at FHFA.gov by clicking here.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 4 basis points to 3.84 in July. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the July 25 - 31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-June.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 3.65 percent in July, down 2 basis points from 3.67 percent in June. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.78 percent in July, down 3 basis points from 3.81 percent in June. This report contains no data on adjustable-rate mortgages due to insufficient sample size.
Initial fees and charges were 0.95 percent of the loan balance in July, down 12 basis points from June. Twenty percent of the purchase-money mortgage loans originated in July were "no-point" mortgages, up three percent from the share in June. The average term was 27.5 years in July, unchanged from June. The average loan-to-price ratio in July was 76.1 percent, up 0.5 percent from 75.6 percent in June. The average loan amount was $258,900 in July, down $4,300 from $263,200 in June.
View the FHFA press release at FHFA.gov by clicking here.
Monday, August 27, 2012
NAHB: Top 12 Accomplishments Summer 2012, Number 2; Flood Insurance
Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders so far this Spring.
Accomplishment number 2: Long-Term Reauthorization of the National Flood Insurance Program
In an important victory for NAHB members who rely on the National Flood Insurance Program, at the end of this June Congress reached an agreement to reauthorize the program through Sept. 30, 2017. This should put to an end the many short-term lapses the program has endured in recent years -- along with the costly delays those lapses have caused home builders and buyers.
Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage. More than 20,000 communities nationwide participate in the insurance program, which currently covers about 5.6 million policyholders. The five-year extension of the NFIP ensures that the program will remain available, affordable and financially healthy. In addition to achieving the long-term reauthorization, NAHB worked with a bipartisan group of senators to remove “residual risk” language from the bill, which would have required the mandatory purchase of flood insurance for areas located behind dams or levees.
Accomplishment number 2: Long-Term Reauthorization of the National Flood Insurance Program
In an important victory for NAHB members who rely on the National Flood Insurance Program, at the end of this June Congress reached an agreement to reauthorize the program through Sept. 30, 2017. This should put to an end the many short-term lapses the program has endured in recent years -- along with the costly delays those lapses have caused home builders and buyers.
Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage. More than 20,000 communities nationwide participate in the insurance program, which currently covers about 5.6 million policyholders. The five-year extension of the NFIP ensures that the program will remain available, affordable and financially healthy. In addition to achieving the long-term reauthorization, NAHB worked with a bipartisan group of senators to remove “residual risk” language from the bill, which would have required the mandatory purchase of flood insurance for areas located behind dams or levees.
Better Homes and Gardens Real Estate ranks Greenville fifth for fun and affordability
Better Homes and Gardens Real Estate ranked the top 25 cities in the country for affordability and fun. The website looked at every zip code in the country for the following factors:
Read the entire report at BloombergBusinessweek by clicking here.
- Median home price is within 20 percent of state median income; and
- The greatest number of bars and restaurants within the zip code
- Ocean City, MD
- Ala Moana-Kakaako are of Honolulu, HI
- Tempe, AZ
- Scottsdale, AZ
- Greenville, SC
Read the entire report at BloombergBusinessweek by clicking here.
Friday, August 24, 2012
New Energy Code (IECC) Course Planned for Greenville and Clemson
The implementation date of the 2009 IECC or International Energy Conservation Codes is January 1, 2013.
To help you prepare for the new code, the Home Builders Association of Greenville will host two seminars that will on the new energy code:
John England, of England Enterprises, Inc., has been chosen to be the exclusive provider for the courses. John, and his company, are well regarded in the construction industry for education and code enforcement.
Watch this site for more information. To register at HBAofGreenville.com, click here.
To help you prepare for the new code, the Home Builders Association of Greenville will host two seminars that will on the new energy code:
- December 5, 2012, at Greer City Hall
- December 11, 2012, location to be announced.
- 8 a.m. until 11:30 a.m. section will focus on residential implementation
- 1 p.m. until 4 p.m. section will focus on commercial implementation
John England, of England Enterprises, Inc., has been chosen to be the exclusive provider for the courses. John, and his company, are well regarded in the construction industry for education and code enforcement.
Watch this site for more information. To register at HBAofGreenville.com, click here.
DIY's Raising House program is looking for a builder
DIY's Raising House program is looking for builders and home buyers to be featured in the program next season. Construction must begin between October and November. Interested members should contact the producer directly: Gia Kornet, Producer, Atlas Media Corp., 917-351-8438.
NAHB: Top 12 Accomplishments Summer 2012, Number 1; Lead Paint
As a member of the HBA of Greenville, you also are a member of the National Association of Home Builders. NAHB's 3,000 directors and 250 staff have been working hard on your behalf this Spring. In the series we will publish over the next 12 days we will highlight the Top 12 accomplishments during the Spring of 2012.
Accomplishment 1: Introduction of Lead Paint Legislation in the House
Responding to concerns expressed by NAHB Remodelers members and others during our Capitol Hill visits at the Spring Legislative Conference and on many other occasions, Reps. John Sullivan (R-Okla.), Tim Murphy (R-Pa.) and a bipartisan group of original cosponsors introduced legislation to make much-needed improvements to the EPA’s Lead: Repair, Renovation and Painting (LRRP) rule.
H.R. 5911, the Lead Exposure Reduction Amendments Act of 2012, is similar to NAHB-backed legislation (S. 2148) that was unveiled earlier this year in the Senate to help home owners and remodelers better comply with the costly work practices and recordkeeping requirements of the lead paint rule without compromising safety standards. This bill would provide families with greater flexibility to decide on their own remodeling activities while assuring them that sound safeguards remain in place to protect against lead hazards. Among other improvements, the bill seeks to restore the opt-out provision for homes that are not occupied by young children or a pregnant woman – a change that NAHB estimates would save approximately $336 million per year in compliance costs. Having led the effort to get this critical legislation introduced in the House, NAHB subsequently carried out intense lobbying and a federation-wide letter-writing campaign to secure additional cosponsors. We continue to build bipartisan support to bring it to fruition in the House and Senate.
Accomplishment 1: Introduction of Lead Paint Legislation in the House
Responding to concerns expressed by NAHB Remodelers members and others during our Capitol Hill visits at the Spring Legislative Conference and on many other occasions, Reps. John Sullivan (R-Okla.), Tim Murphy (R-Pa.) and a bipartisan group of original cosponsors introduced legislation to make much-needed improvements to the EPA’s Lead: Repair, Renovation and Painting (LRRP) rule.
H.R. 5911, the Lead Exposure Reduction Amendments Act of 2012, is similar to NAHB-backed legislation (S. 2148) that was unveiled earlier this year in the Senate to help home owners and remodelers better comply with the costly work practices and recordkeeping requirements of the lead paint rule without compromising safety standards. This bill would provide families with greater flexibility to decide on their own remodeling activities while assuring them that sound safeguards remain in place to protect against lead hazards. Among other improvements, the bill seeks to restore the opt-out provision for homes that are not occupied by young children or a pregnant woman – a change that NAHB estimates would save approximately $336 million per year in compliance costs. Having led the effort to get this critical legislation introduced in the House, NAHB subsequently carried out intense lobbying and a federation-wide letter-writing campaign to secure additional cosponsors. We continue to build bipartisan support to bring it to fruition in the House and Senate.
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