Fair Oaks and Carmichael, housing and the economy

The National Association of Realtors reports that pending sales of existing homes increased for the fifth consecutive month in June, driven by reduced prices, favorable borrowing costs and a federal tax credit for first-time buyers. The June increase of 3.6 percent, coming off a 0.8-percent gain in May, marks the longest streak of month-to-month gains in six years. In similar news, the “Housing Price Index” rose for the first time in three years nationwide.

The Associated Press is also reporting that foreclosures are stabilizing across the county, and that President Obama’s Modification Program has modified loans for approx. 9% of those in foreclosure.

The FHA's third-biggest lender, Taylor, Bean and Whitaker Mortgage Corp., has been dropped from the agency's loan program. Experts say TBW could fold as a result; and with less competition in the industry, mortgage rates could rise. "It's just a question of demand and supply," stated Equity Now Inc. President Michael Moskowitz. "If Taylor Bean goes down, it's a pretty big deal." Another excuse for Wells Fargo and B of A to raise pricing on FHA loans…..

Credit scores are back in the news. Sierra Pacific (who is one of the larger lenders out there) recently announced that they were raising their minimum credit score requirements to 640 on FHA loans. That is quite a problem for brokers who do FHA business. With the horrendous costs that FNMA and FHLMC now charge for any credit score below 740, every Realtor in town should know a good quality “credit assist” company. Your buyers with credit challenges can spend a few hundred dollars now and save thousands of dollars at the closing table. The math is pretty easy!