March 1, 2009

It's Ridiculous and Getting Worse

In order to provide relevant and trustworthy advice to those who ask for it, I set aside time each day to study the latest bulletin from financial institutions outlining a new credit requirement, notice of another loan program ending or the slow drip of details coming from the government’s latest rescue plan. I’ve come to learn it doesn’t matter how long someone has been in my profession because the experience from years past no longer apply to today’s rules. Even with time devoted to staying current, the endless stream of changes involved in financing real estate has reach the point of ridiculous!

The biggest offender is the government whose hands are in everything we touch (because it’s for our own good). Here’s an example. Effective January 1, 2009 we began the implementation of lower conforming loan limits in high cost areas throughout the country. Then a month later with the signing of the American Recovery and Reinvestment Act, we heard those limits will revert back to 2008’s higher levels. Mortgage banks can’t move that quickly so we are still waiting for official word when these changes will show up on our rate sheets. We had another example of back and forth last summer when FHA announced risk based pricing rules for about six weeks and then did away with them when another stimulus plan became law.
The bottom line … no one knows it all but some of us are trying our best to keep you informed.