“STREAMLINE REFINANCING” rules for FHA borrowers are changing as of 11/18/09. FHA is also proposing to drastically increase banks and other lenders capital reserve requirements. (Rational is, “the agency’s cash reserves will drop below the minimum level set by Congress”.) These actions are likely to put more banks and lenders out of business.
“Conventional Loan” requirements relating to Fannie Mae and Freddie Mac mandated this year have caused similar complications for home sales. For example, the new (HVCC) Home Value Code of Conduct, has dictated appraisal changes and new recession requirements. This has caused additional cost, inaccurate appraisals and typically 60 day time frames for transactions to close, instead of about 30 days.
Anyone thinking about buying or selling better start the process ASAP! Remember, the $8,000.00 tax credit ends 11/30/09. Anticipated higher loan interested rates would reduce qualifying opportunities. Plus, who knows of what government regulations or mandates will pop up next?
