FAQs about HUD’s Management and Marketing (M&M) Program: (Source:HUD.gov)

>> Question 1 – How do I get registered as a HUD-qualified real estate broker?

>> Answer – You need to register through your local M&M contractor. See more registration instructions.

Question 2 – I am already a HUD-qualified broker and would like to continue selling HUD Homes. Do real estate brokers have to reregister with HUD?

Answer – Yes. Effective the spring of 2003, HUD requires annual recertification. All brokers were recertified at that time. To be recertified the broker must have a valid broker’s license.

>> Question 2a – I was just recertified by HUD but my broker’s license expires before the end of this year. Do I need to be recertified?

>> Answer – Yes. If the license expires before the recertification date the broker will have to again recertify. Whenever a broker’s license expires, the recertification must occur.

Question 3 – I’ve heard that with the M&M program we have to do electronic bidding. I’ve never done that before with HUD, so how will I know how to do this type of bidding?

Answer – Contact your local M&M for instructions.

>> Question 4 – If I don’t have access to a computer, how do I submit an electronic bid?

>> Answer – By touch-tone telephone. Contact your local M&M for a special dial-in number.

Question 5 – Is it true that I can no longer earn 6% in sales commissions?

Answer – HUD will pay up to 5% if you are the successful selling broker and not the listing broker. Up to 1% is paid to the listing broker.

>> Question 6 – Who do I contact if I want to hold an open house?

>> Answer – Your local M&M contractor.

Question 7 – Can I still advertise HUD Homes?

Answer – Yes, at your expense and in accordance with HUD advertising guidelines. Contact your local M&M for more information.

>> Question 8 – Who do I contact if I have complaints about the maintenance of a HUD Home?

>> Answer – Your local M&M contractor or Homeownership Center that has jurisdiction over the property.

HUD ISSUES NEW MORTGAGE RULES TO HELP CONSUMERS SHOP FOR LOWER COST HOME LOANS
New ‘Good Faith Estimate’ will help borrowers save nearly $700 (Source:HUD.gov)

WASHINGTON – For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

In announcing HUD’s final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. (Read Preston’s Remarks)

“It has been a long road but today we can finally announce a better way to buy homes in America,” said Preston. “Consumers need and deserve to know what they’re getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs.”

Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. Last May, HUD extended the rule’s comment period to June 12th to allow for more opportunity for comment on the Department’s proposed GFE form.

Brian Montgomery, HUD’s Assistant Secretary of Housing, Federal Housing Commissioner, said, “We have carefully considered the concerns expressed from every corner of the mortgage market in developing this rule. I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don’t understand all the fine print of their mortgages and this, in many respects, is at the heart of today’s mortgage crisis.”

Since 1974, little has changed about the process Americans endure when they buy and refinance their homes. Now, HUD’s final reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.

HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, the Department made considerable modifications to its proposal. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate.

Most industry commenters said HUD’s proposed four-page GFE was too long. HUD shortened the GFE form to three pages including an instructional page to help borrowers understand their loan offer. HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.

HUD agreed with many commenters who suggested the new GFE allow consumers to compare their estimated closing costs with the actual costs included on their HUD-1 Settlement Statement. To facilitate comparison between the HUD-1 and the GFE, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in very much the same manner as many of the commenters suggested.

HUD will require the new standardized GFE and HUD-1 beginning January 1, 2010. To view these documents, click on the following links:

HUD’s standard Good Faith Estimate
HUD-1 Settlement Statement

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

Fact Sheet on HUD’s final RESPA Rule

For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:

• What’s the term of the loan?
• Is the interest rate fixed or can it change?
• Is there a pre-payment penalty should the borrower choose to refinance at a later date?
• Is there a balloon payment?
• What are total closing costs?

HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.

Based on substantial public comment, HUD withdrew a proposed requirement that closing agents read and provide a ‘closing script’ to borrowers in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.

HUD’s new Good Faith Estimate has been reduced from four to three pages, including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.

To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in the same manner many commenters suggested.

HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD’s new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.

Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator’s receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.

HUD will allow lenders and settlement service providers to correct potential violations of RESPA’s new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.

The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.

Several federal agencies have properties to sell. In fact, HUD sells both single family homes and multifamily properties. Check them out – one might be just what you’re looking for! (Source HUD.gov)

Single Family Homes for Sale

From HUD
From the Department of Veterans Affairs
From Federal Deposit Insurance Corporation
From Internal Revenue Service
From Small Business Administration
From US Army Corps of Engineers
From Customs
From the U.S. Marshals Service
From the Department of Agriculture Rural Development

Related Links

From Fannie Mae
From Freddie Mac
From Realtor.com

Multifamily Properties

From HUD
From Fannie Mae
General Services Administration
Federal Deposit Insurance Corporation

Whether you want to fix a faucet or add a new addition to your home, you need to know the facts and the pitfalls of home improvements. Here are some sources that can help. (Source HUD.gov)

Federal Loan Programs

• About HUD’s rehabilitation and repair home loan
  • Program description
• Q&As about HUD’s rehabilitation and repair loan
• HUD’s property improvement loan
• Fixing up your home and how to finance it
• HUD-approved lenders
• Home Improvement Loans for Native Americans
• Rural home improvement and repair loans/grants

Community-based Programs

• HOME program
  • Contact a HOME representative in your community
• Community Development Block Grant Program
  • Contact a CDBG representative in your area

Consumer Information

• Household Energy Efficiency – Home Energy Briefs
• Protect yourself: deceptive home improvement contractors
• Home energy saver
• Home Repairs by Readers Digest

Discrimination in mortgage lending is prohibited by the federal Fair Housing Act and HUD’s Office of Fair Housing and Equal Opportunity actively enforces those provisions of the law. The Fair Housing Act makes it unlawful to engage in the following practices based on race, color, national origin, religion, sex, familial status or handicap (disability): (Source: HUD.gov)

• Refuse to make a mortgage loan
• Refuse to provide information regarding loans
• Impose different terms or conditions on a loan, such as different interest rates, points, or fees
• Discriminate in appraising property
• Refuse to purchase a loan or set different terms or conditions for purchasing a loan

Filing a Complaint

If you have experienced any one of the above actions, you may be the victim of discrimination. Recognizing the signs of lending discrimination is the first step in filing a complaint. HUD investigates your complaints at no cost to you. If you believe you have experienced lending discrimination, visit our housing discrimination complaint website to learn more about the complaint process.

HUD Fair Lending Studies

Pre-application inquiries about mortgage lending financing options represent a critical phase in the homebuying process. If potential homebuyers cannot obtain full and fair access to information about mortgage financing, they may give up on their pursuit of homeownership, their housing search may be restricted, or they may be unable to negotiate the most favorable loan terms. HUD has conducted a number of studies to determine whether minority homebuyers receive the same treatment and information as whites during the mortgage lending process. Read more on mortgage lending discrimination studies .

Subprime Lending

Subprime loans play a significant role in today’s mortgage lending market, making homeownership possible for many families who have blemished credit histories or who otherwise fail to qualify for prime, conventional loans. A recent HUD analysis, based on HMDA and related data, shows that the number of home purchase subprime applications increased from 327,644 in 1997 to 783,921 in 2000.

While the subprime mortgage market serves a legitimate role, these loans tend to cost more and sometimes have less advantageous terms than prime market loans. Additionally, subprime lenders are largely unregulated by the federal government. Data shows blacks are much more likely than whites to get a subprime loan, and many of the borrowers who take out these loans could qualify for loans with better rates and terms. As such, many have expressed fair lending concerns about the subprime market. Read more on Subprime Lending .

Predatory Lending

Some lenders, often referred to as predatory lenders, saddle borrowers with loans that come with outrageous terms and conditions, often through deception. Elderly women and minorities frequently report that they have been targeted, or preyed upon, by these lenders. The typical predatory loan is: (1) in excess of those available to similarly situated borrowers from other lenders elsewhere in the lending market, (2) not justified by the creditworthiness of the borrower or the risk of loss, and (3) secured by the borrower’s home. HUD is working hard to fight against predatory lending .

Minority Homeownership

HUD is committed to increasing homeownership opportunities for all Americans. HUD is engaged in a special effort to boost the minority homeownership rate since the rate for black and Hispanic Americans lags behind that of others. Read more about HUD’s efforts to Increase Minority Homeownership

Whether you’re in foreclosure now or worried (Source:HUD.gov)
about it in the future, we have information that can help.

Get Help Now!

• Talk to a foreclosure avoidance counselor
• Talk to your lender
• Find state and local foreclosure resources
• Contact HOPE NOW

Keep Your Home

• Are you at risk of foreclosure?
• Tips for avoiding foreclosure
• Foreclosure scams

Refinance Options

• Making Home Affordable Program
• Learn about HOPE for Homeowners
• Who to call when a lender won’t work with you

If You Can’t Keep Your Home

• Redemption period – your last chance to save your home
• Local renting resources
• Rental assistance
• Relocation resources
• U.S. Postal Service Movers Guide

Selecting a credit repair company is a tremendous task. Your endeavor to repair your credit needs dependable information and news on credit repair. With scores of credit repair frauds at the present time, you don’t understand who to depend on or utilize as an important resource. Obviously, credit reporting agencies and creditors have put up “Alert Scam” symbols to warn you about the drawbacks of utilizing this kind of service. The fact is you can certainly be conned if you’re not well informed on how credit repair functions. Knowledge is power and more than anything in this contemporary world, you require knowledge. For dealing with any type of problem related to debt and credit management, you have to be knowledgeable. Following are some useful details that can help you select the right credit repair company.

• Request the credit repair company you want to employ for a copy of their bond certificate and state registration.
• Once you get a copy of their bond certificate and state registration, authenticate these documents with necessary public details from the Secretary of State.
• If the credit repair company is not ready to provide you these details or is not aware of the necessary documentation, you should go for another credit repair company that does. It is a prerequisite by every state to run a Credit Services Organization (CSO), which stipulates that every credit repair company has to be certified and bonded prior to receiving any payment for consultation or credit repair services if it is not distinctly mentioned in a disclosure agreement.

For more details, you can talk to the Attorney General’s Office or Secretary of State. You should not surrender and instead explore and locate the right credit repair company for your requirements.

If we have learned anything – here on Main Street, it is not to follow headlines! Isn’t that what got us all to where we are at? Just cause the markets had a week or so of gains doesn’t mean we should all head for the malls and do it all over again. From now on listen to yourself and your own good sense! As they say trust your gut. All these so called market folks and experts are nothing more than a person who has been doing a job or has been in that position for a while and that doesn’t make them experts at anything. Anybody remember the last president? Could he find his way out of a wet paper bag? Exactly.

While in the business there would be plenty of people from the bank reps (lenders that would send their reps to let us know what great products they had to sell), to the underwriters (once a full file got into the banks hand and someone had to look it over and approve it), to mortgage processors, appraisers, title companies that just didn’t belong doing what they were doing. By some incantation these people assumed a role they knew nothing about. And worse who ever supervised these people saw it fit to keep them there! The industry became saturated with incompetence to say the least.

I say all this to say that for the most part the average person is capable of making their own decisions about their finances. What you need are the facts and details, then weigh your options according to what makes sense for you. These hacks out here like Suze Orman (what a joke in my eyes!), can’t tell you what is the best solution for you, for the simple fact that they are not YOU! When making major decisions like your finances details matter the most! So next time you turn on the TV or listen to the radio say this to yourself, “should I be making a choice and decision based on what someone else thinks, especially someone that doesn’t know what my situation is?”. Get information, write it down, do this for atleast 3-5 sources (professionals) see what they say and why, then apply your situation and see if that still makes sense. And remember you can always shoot us a line here and we would be happy to stear you in the right direction.

When it comes to financing it will affect each and every one of our lives, regardless of our backgrounds. This is the one universal component that links us all (besides the man upstairs offcourse).

With that said if you don’t get a handle on the definitions and breakdowns of the most important transaction in your life, it is not a question of will you get something wrong but what will you get wrong.

We are are putting together a comprehensive site that should just about cover all aspects of your homeownership.

If you are a Professional give good competent advice and if you are a Consumer (Homeowner) ask questions.

Professional help one Homeowner at a time …