WASHINGTON – Dec. 3, 2013 – Those who lost their home due to financial
hardships may get another shot at being homeowners again soon. The
Federal Housing Administration (FHA) recently announced that it would
shorten the waiting period for qualified borrowers who’ve had a
bankruptcy, foreclosure, deed in lieu of foreclosure or short sale if
they wish to buy a home again.
Under FHA’s Back-to-Work program, homeowners must show that they have
their finances in order, and they must receive counseling from a
HUD-approved agency.
Those who meet the requirements can apply to buy a property in as little as a year.
“The Back to Work program is a great opportunity for us to help those
impacted by the recent housing crisis,” Heather Shanahan, a
representative with a HUD-approved housing counseling agency called
Springboard, told HousingWire. “Our goal in our counseling sessions is
to enable the borrower to better understand their loan options and the
obligations.”
Counselors provide borrowers with a customized action plan that reflects
household budgets and shows borrowers how they can meet their financial
obligations to prevent default again in the future.
Source: “Springboard helps formerly distressed borrowers get back on track,” HousingWire (Nov. 19, 2013)
© Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688
Thursday, January 30, 2014
Time for statewide water planning?
TALLAHASSEE, Fla. – Dec. 3, 2013 – As the Florida Senate pursues an
ambitious $220 million plan to redirect water and reduce pollutants in
South Florida, the next House speaker wants lawmakers to consider a
broader approach to the vast water problems confronting the entire
state.
Rep. Steve Crisafulli, R-Merritt Island, wants lawmakers to factor in water issues faced by the agriculture industry and drinking-water sources, as well as problems facing Florida’s freshwater springs, the Apalachicola River region in Florida’s Panhandle and the northern Indian River Lagoon, as they prepare to allocate money for water-resource projects in next year’s budget.
“The water issues need to be approached in a comprehensive fashion,” Crisafulli said Monday. “It’s important we don’t get too laser-focused on one region of the state, but look at it from the standpoint of the overall needs of the state.”
The directive from Crisafulli, who is in line to become House speaker in November 2014, sets up expected political horse-trading over funding for water issues between the House and Senate at a time when the Legislature has the prospects of a budget surplus entering the session.
Sen. Joe Negron, R-Stuart, who chairs the budget-writing Appropriations Committee, crafted the Senate plan.
Negron’s plan was initially conceived with a focus on improving water quality in the St. Lucie estuary, which during the summer was inundated with nutrient-heavy waters released from nearby Lake Okeechobee under the direction of the U.S. Army Corps of Engineers.
As the plan advanced out of Negron’s Select Committee on Indian River Lagoon and Lake Okeechobee Basin, it included proposals by Gov. Rick Scott to increase the flow of water to the south, and by Senate Majority Leader Lizbeth Benacquisto, R-Ft. Myers, to assist the Caloosahatchee Estuary on the west side of the state.
“It’s exciting to see state leaders competing over who will do the most for the environment,” said Eric Draper, executive director of Audubon of Florida. “This is something we haven’t seen in a long time.”
Draper, who has complimented Negron for being able to quickly put together a plan, agreed Monday with most of the general approach pitched by Crisafulli.
Negron said he doesn’t believe a proposed statewide approach will impact the Lake Okeechobee and Everglades improvement plan.
“The more focus we have on water policies the better,” Negron said. “We can do more than one thing at one time.”
Negron noted that more than $10 million was budgeted for freshwater springs in the 2013 session and he expects more will be done next year. Also, the South Florida plan includes proposals to clean water that enters the lake from the Orlando region and $20 million to remove muck from the northern Indian River Lagoon that stretches into Crisafulli’s area of the Space Coast.
Crisafulli’s general proposal is intended to “reject a limited parochial view” and provide flexible policies that water managers can adapt to rapidly changing circumstances that range from the pending impact of hurricanes to decisions of neighboring states on Florida’s water supply.
Crisafulli said putting a premium on water issues that benefit the state would be a priority of his term as House speaker.
In an opinion piece for the Orlando Sentinel on Sunday, Crisafulli wrote that “focusing on one community at a time in a piecemeal approach can lead to new problems down the road.”
His focus will be primarily getting “tangible” projects in place rather than instituting new policies.
Crisafulli’s comments echo sentiments from Agriculture Commissioner Adam Putnam that lawmakers need to remember that South Florida isn’t the only part of the state where water quality and quantity have become dire issues.
“There is an extraordinary bias to the south at the expense of the springs and Apalachicola Bay,” Putnam told reporters on Nov. 18.
Florida has filed a federal lawsuit against Georgia about a shortage of freshwater flowing into Apalachicola Bay. Florida argues that heavy water consumption in the metro Atlanta area has reduced downstream flows into the bay, endangering Apalachicola’s oyster industry.
The budget proposal from Putnam’s department for the 2014 session includes $10 million to address nutrient reduction practices and water retention efforts in the Lake Okeechobee watershed, $8.2 million for best management practices in the northern Everglades, and $5.2 million to reduce agricultural nutrients from reaching the state’s northern freshwater springs.
The Department of Environmental Protection has included in its budget proposals $75 million that Gov. Rick Scott proposed for Everglades restoration efforts, $40 million for environmental land acquisition, and $15 million for springs restoration, up from the $10 million designated during the 2013 session.
Scott, who will offer a budget plan before the 2014 legislative session, is considering the proposals.
The governor has a couple of items among Negron’s list, including $90 million that would be spread over three years to bridge a 2.6-mile section of the Tamiami Trail west of Miami.
Other provisions in the Senate plan include $40 million to speed construction of the state’s portion of a C-44 reservoir and stormwater treatment area for the Indian River Lagoon-South Restoration Project; $32 million for projects tied to ensuring that all surface-water discharges into the Everglades Protection Area meet water quality standards; and a request for the Army Corps to give DEP authority to regulate releases when the risk of dike failure around Lake Okeechobee is less than 10 percent.
Source: News Service of Florida, Jim Turner
Rep. Steve Crisafulli, R-Merritt Island, wants lawmakers to factor in water issues faced by the agriculture industry and drinking-water sources, as well as problems facing Florida’s freshwater springs, the Apalachicola River region in Florida’s Panhandle and the northern Indian River Lagoon, as they prepare to allocate money for water-resource projects in next year’s budget.
“The water issues need to be approached in a comprehensive fashion,” Crisafulli said Monday. “It’s important we don’t get too laser-focused on one region of the state, but look at it from the standpoint of the overall needs of the state.”
The directive from Crisafulli, who is in line to become House speaker in November 2014, sets up expected political horse-trading over funding for water issues between the House and Senate at a time when the Legislature has the prospects of a budget surplus entering the session.
Sen. Joe Negron, R-Stuart, who chairs the budget-writing Appropriations Committee, crafted the Senate plan.
Negron’s plan was initially conceived with a focus on improving water quality in the St. Lucie estuary, which during the summer was inundated with nutrient-heavy waters released from nearby Lake Okeechobee under the direction of the U.S. Army Corps of Engineers.
As the plan advanced out of Negron’s Select Committee on Indian River Lagoon and Lake Okeechobee Basin, it included proposals by Gov. Rick Scott to increase the flow of water to the south, and by Senate Majority Leader Lizbeth Benacquisto, R-Ft. Myers, to assist the Caloosahatchee Estuary on the west side of the state.
“It’s exciting to see state leaders competing over who will do the most for the environment,” said Eric Draper, executive director of Audubon of Florida. “This is something we haven’t seen in a long time.”
Draper, who has complimented Negron for being able to quickly put together a plan, agreed Monday with most of the general approach pitched by Crisafulli.
Negron said he doesn’t believe a proposed statewide approach will impact the Lake Okeechobee and Everglades improvement plan.
“The more focus we have on water policies the better,” Negron said. “We can do more than one thing at one time.”
Negron noted that more than $10 million was budgeted for freshwater springs in the 2013 session and he expects more will be done next year. Also, the South Florida plan includes proposals to clean water that enters the lake from the Orlando region and $20 million to remove muck from the northern Indian River Lagoon that stretches into Crisafulli’s area of the Space Coast.
Crisafulli’s general proposal is intended to “reject a limited parochial view” and provide flexible policies that water managers can adapt to rapidly changing circumstances that range from the pending impact of hurricanes to decisions of neighboring states on Florida’s water supply.
Crisafulli said putting a premium on water issues that benefit the state would be a priority of his term as House speaker.
In an opinion piece for the Orlando Sentinel on Sunday, Crisafulli wrote that “focusing on one community at a time in a piecemeal approach can lead to new problems down the road.”
His focus will be primarily getting “tangible” projects in place rather than instituting new policies.
Crisafulli’s comments echo sentiments from Agriculture Commissioner Adam Putnam that lawmakers need to remember that South Florida isn’t the only part of the state where water quality and quantity have become dire issues.
“There is an extraordinary bias to the south at the expense of the springs and Apalachicola Bay,” Putnam told reporters on Nov. 18.
Florida has filed a federal lawsuit against Georgia about a shortage of freshwater flowing into Apalachicola Bay. Florida argues that heavy water consumption in the metro Atlanta area has reduced downstream flows into the bay, endangering Apalachicola’s oyster industry.
The budget proposal from Putnam’s department for the 2014 session includes $10 million to address nutrient reduction practices and water retention efforts in the Lake Okeechobee watershed, $8.2 million for best management practices in the northern Everglades, and $5.2 million to reduce agricultural nutrients from reaching the state’s northern freshwater springs.
The Department of Environmental Protection has included in its budget proposals $75 million that Gov. Rick Scott proposed for Everglades restoration efforts, $40 million for environmental land acquisition, and $15 million for springs restoration, up from the $10 million designated during the 2013 session.
Scott, who will offer a budget plan before the 2014 legislative session, is considering the proposals.
The governor has a couple of items among Negron’s list, including $90 million that would be spread over three years to bridge a 2.6-mile section of the Tamiami Trail west of Miami.
Other provisions in the Senate plan include $40 million to speed construction of the state’s portion of a C-44 reservoir and stormwater treatment area for the Indian River Lagoon-South Restoration Project; $32 million for projects tied to ensuring that all surface-water discharges into the Everglades Protection Area meet water quality standards; and a request for the Army Corps to give DEP authority to regulate releases when the risk of dike failure around Lake Okeechobee is less than 10 percent.
Source: News Service of Florida, Jim Turner
What the New Mortgage Rules Mean for Borrowers
Whether
you’re refinancing your home loan or planning to buy a home in 2014,
you’ll be among the first consumers to apply for a mortgage under new
rules established by the Consumer Financial Protection Bureau.
Known as “Qualified Mortgages” or QM regulations, these new rules are meant to protect consumers from unsustainable loans and to prohibit lenders from approving loans for unqualified borrowers. The rules, part of the aftermath of the housing and financial crisis, change the availability of some loan programs and limit the fees that lenders can charge to consumers.
QM Changes to Mortgage Lending
Several loan programs that the CFPB believes are dangerous to consumers are not eligible for QM status, including no-documentation loans, 40-year loans, interest-only loans, loans with a balloon payment, option loans in which borrowers could pay less than the full amount due, and loans with negative amortization in which the principal balance grows because the monthly payments are artificially low.
Borrowers won’t necessarily feel the absence of those loan programs since lenders stopped offering most of them years ago after the housing crisis. Also, over the past several years lenders have increased the level of documentation required of all borrowers to comply with other regulations and underwriting standards.
Borrowers will be impacted more by two other aspects of QM loans: Lender fees are limited to 3 percent and have a hard line for your debt-to-income ratio. The limit on lender fees applies to loans above $100,000 and will reduce the up-front costs of a mortgage.
Under QM rules, your debt-to-income ratio, which compares your gross monthly income to the minimum payments on all your debts, must be 43 percent or lower. Some borrowers may no longer qualify for the loan amount they applied for under these rules and will have to reduce the amount of the loan or pay off other debt.
Lenders can offer both QM and non-QM loans as long as they verify that borrowers can repay the mortgage, but the advantage of a QM loan is that it can be purchased or guaranteed by Fannie Mae and Freddie Mac. The lender then receives legal protection for QM loans against future lawsuits from disgruntled borrowers or investors.
Impact of QM
The impact of these rules remains to be seen. Some mortgage experts are concerned that the stricter rules will keep borrowers who are on the margins from qualifying because they limit lender flexibility.
In the past, for example, if you had extensive cash reserves in the bank but were semi-retired with a low or moderate income stream, a lender might have been willing to approve a loan based on your cash and a good credit profile. Under QM rules, the debt-to-income ratio limit must be observed without exception.
Similarly, if you’re stretching your budget to buy a home now but know you’re in line for a promotion and raise, or about to finish law school or to pay off a debt with a bonus, lenders in the past might have approved your loan based on that information and your good credit. QM rules limit lenders’ ability to approve loans under those circumstances. In particular, self-employed borrowers are likely to face deeper scrutiny of their income and their ability to repay a loan.
If you find yourself impacted by the ability-to-repay rule because of your debt-to-income ratio, you can look for lenders who offer portfolio loans that they don’t intend to sell to Fannie Mae or Freddie Mac, because in some cases they’re willing to make an exception and approve a non-QM loan. On the other hand, if your debts are too high and your credit isn’t strong enough, it’s better for you and the lender to wait until you’re better prepared financially to pay for a home.
Known as “Qualified Mortgages” or QM regulations, these new rules are meant to protect consumers from unsustainable loans and to prohibit lenders from approving loans for unqualified borrowers. The rules, part of the aftermath of the housing and financial crisis, change the availability of some loan programs and limit the fees that lenders can charge to consumers.
QM Changes to Mortgage Lending
Several loan programs that the CFPB believes are dangerous to consumers are not eligible for QM status, including no-documentation loans, 40-year loans, interest-only loans, loans with a balloon payment, option loans in which borrowers could pay less than the full amount due, and loans with negative amortization in which the principal balance grows because the monthly payments are artificially low.
Borrowers won’t necessarily feel the absence of those loan programs since lenders stopped offering most of them years ago after the housing crisis. Also, over the past several years lenders have increased the level of documentation required of all borrowers to comply with other regulations and underwriting standards.
Borrowers will be impacted more by two other aspects of QM loans: Lender fees are limited to 3 percent and have a hard line for your debt-to-income ratio. The limit on lender fees applies to loans above $100,000 and will reduce the up-front costs of a mortgage.
Under QM rules, your debt-to-income ratio, which compares your gross monthly income to the minimum payments on all your debts, must be 43 percent or lower. Some borrowers may no longer qualify for the loan amount they applied for under these rules and will have to reduce the amount of the loan or pay off other debt.
Lenders can offer both QM and non-QM loans as long as they verify that borrowers can repay the mortgage, but the advantage of a QM loan is that it can be purchased or guaranteed by Fannie Mae and Freddie Mac. The lender then receives legal protection for QM loans against future lawsuits from disgruntled borrowers or investors.
Impact of QM
The impact of these rules remains to be seen. Some mortgage experts are concerned that the stricter rules will keep borrowers who are on the margins from qualifying because they limit lender flexibility.
In the past, for example, if you had extensive cash reserves in the bank but were semi-retired with a low or moderate income stream, a lender might have been willing to approve a loan based on your cash and a good credit profile. Under QM rules, the debt-to-income ratio limit must be observed without exception.
Similarly, if you’re stretching your budget to buy a home now but know you’re in line for a promotion and raise, or about to finish law school or to pay off a debt with a bonus, lenders in the past might have approved your loan based on that information and your good credit. QM rules limit lenders’ ability to approve loans under those circumstances. In particular, self-employed borrowers are likely to face deeper scrutiny of their income and their ability to repay a loan.
If you find yourself impacted by the ability-to-repay rule because of your debt-to-income ratio, you can look for lenders who offer portfolio loans that they don’t intend to sell to Fannie Mae or Freddie Mac, because in some cases they’re willing to make an exception and approve a non-QM loan. On the other hand, if your debts are too high and your credit isn’t strong enough, it’s better for you and the lender to wait until you’re better prepared financially to pay for a home.
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