FHA Drops the Ceiling on Home Mortgages

The U.S. Federal Housing Administration will scale back the size of loans it backs to a maximum $625,500 at the beginning of 2014 to reduce its share of the U.S. mortgage market, the agency said on Friday. Currently, the FHA's limits that vary by region, from $271,050 up to $729,750 in the country's most expensive housing markets. The FHA's move brings it partly in line with taxpayer-owned mortgage financiers Fannie Mae and Freddie Mac, which use a $417,000 cap in most areas and have an upper limit of $625,500.

"As the housing market^[4] continues its recovery, it is important for FHA to evaluate the role we need to play," Carol Galante, FHA Commissioner, said in a statement. "Implementing lower loan limits is an important and appropriate step as private capital^[5] returns to portions of the market." Those in favor of lower limits say the government should not be helping borrowers at the high end of the real-estate market. The FHA became a major backer of new mortgage financing during the housing crisis when banks^[6] became reluctant to lend.

The reductions will impact buyers in about 650 counties across the country with relatively high home prices. Loan limits are based on median home prices in each county, and they do not go any lower than $271,050. That floor will remain unchanged, the FHA said.

The FHA, which is mainly funded through insurance pr emiums it brings in, backed about a third of loans used to purchase homes last year. In September, the FHA said it needed to draw $1.7 billion in cash from the U.S. Treasury to help cover losses from troubled loans, marking the first time in its 79-year history that it has needed aid. With an FHA loan, buyers can put down as little as 3.5 percent. The FHA, which does not make loans, provides mortgage insurance to borrowers without enough of a down payment to qualify for prime loans.

Source : http://realestate.aol.com/blog/2013/12/09/fha-limits-size-home-mortgages/

Pearland City Council approves 48-hour shifts for firefighters, EMS workers

New shift structures were recently approved for firefighters, EMS workers and other department staff as part of the merger of the Pearland Fire and EMS Departments. The current shift schedule is 24 hours-on-duty with 48 hours off. When the consolidation of the departments are complete nest year, the structure will change to 48 hours-on-duty and 96 hours (four days) off.

The new policy also specifies every fire truck sent to a fire will be required to have a minimum of four people. However, the question of whether the fourth person should be a volunteer, part-time or full-time paid firefighter proved to be the more-difficult decision for city officials.

Members of the Pearland City Council discussed the various options with City Manager Bill Eisen and Fire Chief Vance Riley at a council meeting held Monday (Nov. 11).

"I think the fourth position should be a combination of full-time, part-time and volunteer firefighters." Councilmember Scott Sherman said. "You can always go back and adjust the program and the plan so I'm not sure why you'd start out with four full-time employees."

Other council members questioned if volunteers were trained and certified and wanted to know if they were dependable. Fire Chief Vance Riley said there had been few problems with volunteers not being reliable.

"They have to complete a certain number of shifts each month to be a member of the department," Riley said.

If volunteers don't pull the minimum number of shifts, they are put on probation and eventually let go if it continues to be an issue.

As for training, a new in-house fire academy would be put in place next year as part of the department consolidation, which could potentially offer volunteers the additional benefit of becoming certified by the Pearland Fire and EMS Department.

"Our volunteers are trained and certified. So far, we haven't had any volunteers ask about attending the fire academy next year," Chief Riley said. "But I guess we could arrange that if there were volunteers interested in additional training."

The department currently has 16 volunteers with another 13 members going through the new member training program, Riley said. However, an increase is expected as a part-time staff position to recruit additional volunteers had recently been created using grant funding.

"Are we having any issues with getting that fourth man?" Councilmember Tony Carbone asked. "My understanding is we are staffing them with volunteers and/or part-time firefighters."

"The fourth position is currently staffed with half part-time and half volunteer. It varies month-to-month as to whether there are enough volunteers to pull the shifts," Riley said. "But, even with part-timers we have a hard time making sure that spot is always filled. "

Carbone said he wasn't comfortable sending the trucks out with only three firefighters.

"That's why I am in favor of four full-time employees so we know that spot is filled. I am not looking to squeeze out the volunteers but when they roll up on scene I'd to have all four guys there," he said.

City Manager Bill Eisen said there would still be a place for volunteers even if four full-time firefighters were required on each truck.

"What would happen is the volunteer firefighters would be riding as a fifth person," Eisen said. "But, in my view, it would diminish the role of the volunteers if you go with the approach there has to be four full-time firefighters per apparatus."

Chief Riley was asked about the option of having volunteers riding as the fifth person in the truck.

"It makes it a little bit tight in the truck. However, they would still have an air pack and the radios just like normal," he said. "But, in the short term we would be limiting volunteers to some extent."

There were pros and cons on both sides of the issue, Riley said.

"One of the cons is right now two of the stations don't have enough sleeping quarters," he said. "When we get more stations there would be other options."

Pearland has six fire stations, three of which have sleeping quarters and are staffed 24 hours-a-day.

City officials have discussed future plans to renovate station three to include sleeping quarters. Located at 1801 E. Broadway on the city's east side, the station is currently used mainly as a storage facility.

"I don't want to squeeze out the volunteers but I do want to make sure we not having to hold people over which I think has happened in the past," Councilmember Keith Ordeneaux said. "I want to make sure we have four people on the truck for the safety of our fire fighters and our residents and still leave a place for the volunteers. But as we grow I think it is important to have those positions fully staffed."

During a council workshop last October, city officials also considered a four-shift schedule with 24 hours on-duty and 72 hours (three days) off. According to agenda documents, an employee survey showed EMS workers favored the four-shift structure.

Councilmember Susan Sherrouse said she thought asking EMS workers to answer emergency calls for 48 hours at a stretch was too stressful and advocated for the four-shift structure, using volunteers and part-time staff to take the fourth position in the truck.

"My perspective is with three shifts, you do have burnout. When you're running that ambulance it's non-stop at times; you don't have time to rest," she said. "I think it is important for retention and the safety of our citizens and our first responders that we need to have four shifts, especially since we have the opportunity to have volunteers to help us augment. We don't have that in other cities. We have a very strong volunteer tradition here. I think by augmenting that and by going to four shifts is the logical thing to do."

Councilmember Sherman countered by saying fire department officials at the workshop had said 48-hour shifts did not pose any safety risk.

"I asked this question early on in the process, that is if there are any safety concerns or statistical evidence related to whether we went with one option over the other. I specifically asked if we were putting our homeowners or fire fighters at risk and the answer I got was no; there was not a safety concern," Sherman said. "So, any implication that we are going with a lesser option that may relate to safety issues with firefighters or homeowners is not related to any information we have received here. I want to make sure that is still correct."

"Yes," Chief Riley answered.

To deal with the issue of stress and burnout among EMS workers, additional personnel would be hired next year to allow workers to rotate throughout the shifts, officials said.

Councilmember Carbone asked how often trucks were sent to fires with only three people.

"I couldn't say off the top of my head, but I would throw out an estimate of 40 percent of the time," Chief Riley said.

Carbone then made a motion to amend the ordinance to go to a three-shift schedule with four full-time firefighters.

The motion failed by a vote of three-to-two. Voting in favor: Carbone and Sherrouse. Voting against were Sherman, Ordeneaux and Councilmember Greg Hill.

"At this point, it sounds like we are shifting to the minimum and I don't agree with that; I don't think that is the right move when you're dealing with fire and EMS," Carbone said.

According to agenda documents, hiring additional firefighters to fill the fourth spot would add $1 million or more to next year's budget.

"I don't have the feeling that the budget can stand the four-shift option without a tax increase looking at future needs," Councilmember Ordeneaux said. "Unfortunately, it comes down to a matter of budget and trying to do the best job with the least amount of money."

The city manager said a compromise arrangement was also an option.

"It doesn't have to be an either-or position. For example one station could have four full-time firefighters and one station could have a combination of three full-time firefighters with the fourth spot to be filled by part-time and volunteers depending on the number of volunteers we have," Eisen said. "It doesn't have to be all-or-nothing in terms of having four full-time fire fighters at every station. It can be some mixture of the two."

After the end of the discussion, Councilmember Sherman made a motion to go with the three-shift structure with the option of a volunteer, part-time or full-time firefighter as the fourth person on calls. The motion passed three-to-two. Voting in favor: Sherman, Hill and Ordeneaux. Voting against: Carbone and Sherrouse.

Source : http://www.yourhoustonnews.com/pearland/news/pearland-city-council-approves--hour-shifts-for-firefighters-ems/article_ab40c600-fec6-556a-b1a1-1770f17f4936.html

Job growth drives mortgage rate jump

NEW YORK (CNNMoney)

Mortgage rates jumped this week on stronger-than-expected economic reports, according to Freddie Mac's weekly survey.

The 30-year, fixed-rate loan, the most popular product for homebuyers, rose to 4.46% from 4.29% last week. The average rate on a 15-year, fixed-rate mortgage, typically used for refinancing higher interest mortgages, also jumped 0.17 percentage point to 3.47%.
This week's rate approached a high for the year. Rates on the 30-year have ranged from a low of 3.34% in the first week of January to a high
Source : http://rss.cnn.com/~r/rss/money_realestate/~3/enqLEtDl-_c/index.html

Soaring new home sales: Not what they seem

It was the sharpest jump in more than three decades, but housing watchers are already poking holes in the new home sales numbers. After delays due to the government shutdown, data for both September and October were released together, in addition to a large downward revision for August. Follow the numbers, and the gains are not quite what the headline seems.

Contracts signed to buy newly built homes jumped 25.4 percent in October month to month, after falling 6.6 percent in September from August. The seasonally adjusted annual rate went from an originally reported 421,000 units in August, which was revised down to 379,000 units, and to 354,000 units in September. The number for September was a 10 percent drop from September of 2012. It then rose to 444,000 units in October. There is a nearly 20 percent margin of error on all these numbers.

"The October 'preliminary' report released this morning, along with the terrible August and September data, is the outlier and will be revised lower next month in line with the new trend lower that began in July," noted housing analyst Mark Hanson.

August sales estimates were revised down by 15 percent on an unadjusted basis and September sales dropped from there.

"Both the September and October new home sales data were released together and averaged 399,000 annualized versus the estimate of 424,000 and compares with the average year-to-date of 422,000," said Peter Boockvar, chief market analyst of economic advisory firm  The Lindsey Group. "The weakness seen in July through September was clearly in response to the rise in rates and the almost 25-basis-point decrease in mortgage rates in October seemed to have brought out buyers that were previously on the fence."
^[3]

Builders say it wasn't just the falling rates, but the end of the government shutdown.

Source : http://www.cnbc.com/id/101246658

New Home Sales Surge in October as Supply Dwindles

 Lucia Mutikani

WASHINGTON -- Sales of new U.S. single-family homes recorded their biggest increase in nearly 33½ years in October, suggesting the housing market recovery remains intact despite higher mortgage rates.
The Commerce Department said Wednesday^[1] sales jumped 25.4 percent to a seasonally adjusted annual rate of 444,000 units. It also said new home sales fell 6.6 percent in September.

The release of both the September and October reports was delayed because of a 16-day partial shutdown of the government^[2] last month.
Economists polled by Reuters had expected new home sales to set a 428,000-unit pace last month.

Compared with October last year, new home sales were up 21.6 percent.

The strong rise in new home sales, which are measured when contracts are signed, suggested higher mortgage rate had not derailed the housing market recovery.
Higher mortgage rates^[3] have slowed the pace of home sales, but demand for accommodation as household formation continues to recover from multidecade lows is keeping demand supported.
Home resales fell in October for a second straight month and confidence among single-family home builders has ebbed somewhat since nearing an eight-year high in August.
Strong new home sales in October saw the stock of houses on the market falling 3.7 percent after touching their highest level in nearly three years in September. Despite the tight supply of properties, the median price of a new home slipped 0.6 percent from a year-ago.
At October's sales pace it would take 4.9 months to clear the houses on the market, down from 6.4 months in September. A supply of 6.0 months is normally considered as a healthy balance between supply and demand.

Source : http://realestate.aol.com/blog/2013/12/04/new-home-sales-surge-october-higher-mortgage-rates/

New mortgage rules may mean less choice

(CNNMoney)

New rules launching early next year designed to make mortgages safer may result in less choice for borrowers.

The problem: small banks may drop out of the business because of the cost of tougher regulations.

Beginning Jan. 10, banks have to ensure that monthly mortgage payments are affordable, a result of the Dodd Frank law passed in 2010. The failure to do so carries strict penalties.

"My concern is that we're going to be in an environment where some lenders are too small to comply," said David Stevens, CEO of the Mortgage Bankers Association.

During the housing bubble, some banks issued loans without even checking applicants' income or assets.

Under the new rules, lenders must carefully determine that borrowers have the ability to repay their loans. That means, for example, that the banks can't lend to anyone whose total debt payments would exceed 43% of their income. Lenders must carefully examine and double check pay statements, bank records, tax returns and other paperwork provided by borrowers.

Banks will have to make three main changes, according to Anthony Hsieh, CEO of loanDepot, an online mortgage bank.

They will have to update their underwriting policies and procedures, change their technology and retrain staff.

Is there a housing bubble in California?

Already, lending had become more complicated.

Five years ago, Total Mortgage, a mid-sized lender in Connecticut, had a single attorney on retainer to handle compliance issues, according to its president John Walsh.

Today, Total Mortgage has three full-time workers who work exclusively on compliance in addition to the outside counsel, even though his business has not grown.

"I expended a lot of effort to stay ahead of the new regulations," Walsh said. "You just can't make mistakes these days."

Related: 10 Best Places to Retire^[4]

Banks large and small are hiring outside companies to handle a share of their mortgage underwriting to ensure the quality, according to Jeff Taylor, co-founder of Digital Risk, a provider of risk, compliance and transaction management services.

Big banks can handle the cost, but small lenders may not be able to afford all the extra manpower.

The changes are coming at an already challenging time. Fewer homeowners have been refinancing their old, high interest mortgages. "Now that the refi boom is over, we'll see a lot of small banks fading away," said Taylor.

It's possible that bankers, never receptive to regulation, may be overstating the impact of the new rules, according to Ellen Schloemer, spokeswoman for the Center for Responsible Lending, a consumer advocacy group.

She points to an October report from CoreLogic that asserted that lenders should be able to meet the requirements. The report was written by Margarita Brose, a consultant on lender risks, and Faith Schwartz, who ran Hope Now, a coalition of lenders, consumer groups and government organizations that fights foreclosure.

Lenders will "figure out a way to deliver . . . mortgages in a way that meets all the regulatory requirements, incorporates sound lending and consumer protections -- and makes a profit," according to the report's authors.

Source : http://rss.cnn.com/~r/rss/money_realestate/~3/Zg2Uv1bAM6U/index.html

Mortgage Applications Slide for Fifth Straight Week

Luciana Lopez

NEW YORK -- Applications for U.S. home loans tumbled in the latest week, led by a sharp slide in refinancing applications, data from an industry group showed Wednesday.

The Mortgage Bankers Association said^[1] its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, sank 12.8 percent in the week ended Nov. 29.

The week's results included an adjustment for the Thanksgiving holiday last Thursday, the group said.

The data marked the fifth straight weekly drop for the index, taking it to its lowest level since early September.

The fall in mortgage applications comes as investors try to gauge when the U.S. Federal Reserve^[2] might exit its bond-buying program.

The Fed has said it would begin to scale back its $85 billion a month in purchases of Treasuries and mortgage-backed securities when policy makers are convinced of a steady, self-sustaining recovery.

But data on the world's biggest economy^[3] have been mixed, leaving investors uncertain about the future path of U.S. monetary policy.

MBA data showed 30-year mortgage rates rose 3 basis points in the latest week to 4.51 percent.

The refinancing index sank 17.5 percent while the purchase index, a leading indicator of home sales, fell 4.1 percent.

The mortgage survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

Source : http://realestate.aol.com/blog/2013/12/04/mortgage-applications-slide-fifth-straight-week-mba/

Pearland ISD scores A-plus on independent financial audit

Pearland Independent School District received a perfect audit for the fiscal year ending June 30 according to reports reviewed by trustees at a board meeting held Tuesday (Nov. 12).

Auditors examined the district's fund balances and accounting activities and confirmed all financial information had been prepared and presented fairly and accurately over the year. The report also showed auditors awarded the district and its Chief Financial Officer Don Marshall an unqualified opinion which is the highest opinion given to audited financial statements.

Jason Tracy from the firm of Kennemer, Masters and Lunsford, LLC, went over details of the audit report for the tenmonth period ending June 30. (Trustees voted to change the end of the fiscal year from August 31 to June 31 last year, which resulted in a ten-month report.)

According to audit documents posted on the district website, overall expenditures including debt service, general fund and other governmental funds totaled $164,950,908. General fund expenditures totaled $117,999,536.

Of the total, $67,168,041 was used to cover teacher salaries and instruction costs. Campus leadership expenditures such as salaries for principals totaled $7,763,855 and administrative salaries and costs totaled $2,781,871 for the ten-month period. Campus security and monitoring services expenditures equaled $1,418,875 and student transportation costs came to $5,434,623.

After the original budget was finalized, trustees later voted to approve additional expenditures of $11,886,284.

Of that amount, roughly $3 million was spent for renovations and equipment for Turner High School, the district's flagship program focused on career and technical training courses offered in partnership with Alvin Community College and San Jacinto College. Enrollment counts show 700 students were enrolled when the school opened last fall.

Trustees also signed off on roughly $3.6 million for computer system upgrades including district-wide Wi-Fi, $3.7 million for a new school bus satellite station, $1.3 million to install new artificial turf at Pearland and Dawson High School athletic fields and $275,000 for security system upgrades at all campuses.

Audit documents show general fund revenues totaled $126,066,257. Of that amount, state funding contributed $65,886,326, property taxes and local funding equaled $59,655,076 and federal programs and grants added $524,855 to the general fund balance.

Of the District's overall governmental funds, the combined ending fund balances equaled $59,792,764. The total general fund balance at the end of the reporting period was $44,316,819 and the unassigned portion totaled $22,099,193.

"That's your reserve; that's what the district can spend," Tracy told trustees. "That's really good to have, especially down here on the coast where we always talk about hurricanes. That's a real strong number for the district."

The general fund balance increased this year by $ 4,349,121.

Audit reports state the district gained roughly $185 per student in state funding and is expected to gain another $90 per student next year due to changes and adjustments made by state lawmakers last session.

The property tax rate assessed to cover general fund operations was $1.04 and $0.3794 was assessed to pay general obligation long-term debt for a total of $1.4194 per $100 valuation.

According to audit documents, the tax levy for the 2012-13 fiscal year was calculated based on the August 1, 2012 assessed value of the property tax roll of $5,300,745,597.

For detailed audit report information, visit www.pearlandisd.org/files/filesystem/Audit_97000-2013.pdf.pdf^[1]

Source : http://www.yourhoustonnews.com/pearland/news/pearland-isd-scores-a-plus-on-independent-financial-audit/article_fabe444e-c8f3-561d-b6d2-e9387dca5820.html

TxDOT Commissioner: Highway 288 a top priority

Texas Transportation Commissioner Jeff Moseley met with Pearland and Brazoria County officials at the Pearland Chamber of Commerce monthly mobility committee meeting Thursday (Nov. 14). Appointed by Governor Rick Perry in June 2012, Moseley is one of five commissioners who govern the Texas Department of Transportation (TxDot).

Matt Buchanan, President at Pearland Economic Development Corporation, opened the meeting; outlining commercial and residential growth statistics and the launch of the 288 Municipal Management District.

"We hope to work with the state to improve the appearance of the State Highway 288 (SH 288) area through the new 288 Municipal Management District," he said. "Our goal is to clean up that area to make a better first impression to those coming into our city to help attract people and businesses to our community."

Trent Epperson, Pearland's Director of Project Management, outlined a number of projects, including ongoing construction on State Highway 35 (SH35) and needed improvements to Farm to Market Road 518 (FM 518) which he said are the city's top transportation priorities.

"The SH35 widening project was originally scheduled to be complete in late 2012 and is now significantly behind schedule. The main reason we wanted to bring this forward is these delays are really affecting the businesses along that corridor," Epperson said. "We now see a light at the end of the tunnel. The most recent traffic switch really helped the businesses there. But, we still expect that area to be under construction through April of next year.

"I think the main thing we want to do is to make sure as we move forward is that April time frame is not moved any further out and we can get everything back up and running," he said.

Alleviating traffic problems on the west end of the city along FM518 was another top priority, Epperson said.

"FM 518 is a very important transportation artery. It is the nexus of Pearland's retail and commercial area with Pearland Town Center on the southwest corner just west of SH288." he said. "In fact, all four corners there have a significant retail component. We've got the Memorial Hermann site and also the future site of the Alvin ISD high school.

"The last major reconstruction was roughly 20 years ago on the segment from SH35 to Friendswood and (west side improvements) need to be looked at in the very near future."

But, it was the proposed SH288 toll road that took center stage. Matt Sebesta, Brazoria County Commissioner, Precinct 2, made a presentation outlining the project's progress and correct status.

"We expect construction to begin in the first quarter of 2015 and hopefully we will open the facility in 2017 from County Road 59 all the way up to the MacGregor area," he said.

Commissioner Moseley said the proposed SH288 toll road project had become a top priority for TxDot officials.

"We've identified the top 100 congestion points in the state. It helps us prioritize how we can leverage these precious gasoline tax dollars that aren't nearly enough; that's why SH 288 is a strategic corridor," Moseley said.

Two portions of SH288 are listed among the state's most congested roadways, including an 11-mile section stretching from the Beltway to Loop 610, a section now included in the proposed toll road.

"SH288 has become a dynamic corridor where we see a large percentage of the area's workforce moving in and out," Moseley said. "The Texas Medical Center has 100,000 workers who report to work every day with about 10 percent commuting from this region. That's a wonderful reason why this project is a priority for the state to look at to enhance mobility along SH 288. "

Moseley served as chief executive officer of the Greater Houston Partnership prior to his appointment where he worked on numerous regional transportation policy efforts. In addition to serving as Transportation Commissioner, Moseley is a partner in Griffith Moseley Johnson and Associates which provides economic development and site selection consulting.

"I have worked with Commissioner Moseley for many years in various capacities," Carol Artz-Bucek, Chamber President and CEO said in a press release announcing the event. "I am thrilled he again represents the entire State of Texas; although, this time for better mobility and, he lives and breathes the Houston region transportation issues we all experience daily."

The Pearland Chamber of Commerce Transportation Committee meets monthly at the Commerce Center located at 6117 Broadway. For more information, call 281-485–3634 or visit www.pearlandchamber.com^[1]

Source : http://www.yourhoustonnews.com/pearland/news/txdot-commissioner-highway-a-top-priority/article_f3fd751c-6f2d-56ab-92a2-f922fc69fcb0.html

Planning to Buy a Home in 2014? Get Ready Now

By Christine DiGangi^[1]
With big changes coming to the mortgage industry at the beginning of next year, many consumers will want to evaluate their homebuying plans. Regulations drafted by the Consumer Financial Protection Bureau will change the definition of a qualified mortgage for any loan applications received on and after Jan. 10, and many consumers may find themselves unable to meet the new requirements.
Qualified mortgages^[2] are loans that meet certain standards designed to ensure that borrowers are highly likely to be able to pay back the amount in question. Facing this challenge, it's up to the hopeful homeowner to improve their chances of mortgage approval^[3] by doing the necessary research, improving their credit profiles and meeting the qualified mortgage standards well in advance of filling out loan applications.
It's important to meet qualified mortgage standards because government-sponsored enterprises, known as GSEs, like Fannie Mae and Freddie Mac have said they won't buy non-qualified mortgages starting next year, said Joshua Weinberg, senior vice president of compliance with First Choice Lending/Bank. Fannie and Freddie don't lend to homeowners directly, rather they purchase mortgages from banks and then bundle them into securities and sell those securities to investors.
For lenders that originate mortgages with the intention of selling them to the GSEs, as many do, originating non-qualified mortgages won't be feasible. Other lenders own the mortgages they originate, meaning they don't have to worry about selling them to GSEs, and such larger portfolios could probably take on non-qualified mortgages.
What's Changing? Mortgages must pass tests of sorts to meet the standards of a qualified mortgage: The APR must be within 150 basis points (1.5 percentage points) of the annual prime offer rate, the loan term cannot exceed 30 years, points and fees cannot exceed 3 percent of the loan balance and there can be no negative amortization or interest-only payments^[4]. Under these conditions, the mortgage qualifies for safe harbor, meaning the lender is not at risk of being sued by a borrower who is unable to repay the loan.
There's a class of loans called higher-priced qualified mortgages, in which the APR exceeds the 150 basis-point limit, and in those cases, the loan falls under rebuttable presumption, meaning the lender is assumed to have complied with ability-to-pay requirements, unless a borrower or attorney argues otherwise. Loans with rebuttable presumption will likely come at an additional premium, said Cameron Findlay, chief economist at Discover Home Loans, though the price of that premium is unclear at this point.
The ability to repay comprises a series of requirements that must be met by the borrower and verified by the lender, including income and debt levels. All of these CFPB regulations are aimed at protecting consumers from mortgages they can't reasonably expect to repay, because such faulty loans triggered the recent financial crisis. Given these limitations, and some new restrictions on lenders that also go into effect in January, some have suggested that consumers may find themselves struggling to acquire a mortgage.
Weinberg described it this way: Originating a mortgage has been a process that blends science and art. The science includes the regulations that give clear guidelines for what does and does not meet qualified mortgage standards. The art comes in when an originator decides to approve or deny a mortgage application, even if a borrower doesn't meet every requirement in the book, because his or her experiences can give important context to a case that numbers and rules cannot.
"With this QM rule we're seeing an elimination of the art and a focus on the science," Weinberg said. "The way the points and fees will be calculated is now a pretty defined standard. My gut says because of the shrinking art component and the emphasis on the science, fewer people are going to qualify for loans."
While the new regulations are beyond consumer control, there are several things potential homeowners can do to prepare for buying residential property in 2014.
1. Ask Questions: If this all sounds a bit confusing, don't worry. You're not alone. Both Findlay and Weinberg acknowledged the complexity of the new rules and said there's confusion among lenders. For potential homeowners who don't understand what these changes mean for them, there's no shame in asking someone to explain them.
There are a lot of components to mortgages that first-time homebuyers^[5] may not be familiar with. Say a lender instructs you to reduce your debt-to-income ratio^[6] -- that means how much of your income is tied up in student loan payments, collections accounts, judgments and other existing loan obligations. You've just learned that points and fees can't exceed 3 percent of the loan balance, but what's a point?
A point, for the record, is prepaid interest on the loan, with one point equal to 1 percent of the loan. If a borrower would rather have a lower interest rate than the one they're offered then they can pay points to lower that rate.
There's bound to be something that confuses the borrower, and no one should enter into such a large financial decision with uncertainty. Ask a lender to explain it to you, but understand that the lenders are nailing down the new processes, as well. "It doesn't bode well for the consumer when there's this confusion," Findlay said.
It's important to shop around for mortgages, and consumers should know that they can concentrate their mortgage search into a few weeks in order to minimize the impact on their credit scores. Inquiries are a major factor in your credit scores, and too many inquiries can hurt your credit. Mortgage inquiries made within that short period (which varies by credit scoring model) will count as a single inquiry on their credit reports, and because multiple inquiries would normally ding credit scores, this allows consumers to find the best offer without harming their credit profiles. If you want to see how inquiries are affecting your credit, you can look at your free Credit Report Card^[7], which grades you on important credit score factors and gives you free credit scores.
2. Tackle Debt: If you have debt, you should try to reduce it, and this is true for all consumers, not just those looking to buy a house. Potential homeowners, however, should be extra motivated to conquer their debt: Under new ability-to-repay requirements necessary to attain a qualified mortgage, a borrower's debt-to-income ratio must be 43 percent or less, including the potential mortgage payment.
"Not only do we consider the debts that show up on your credit report, but we have to look at debts you may expect to pay in the future," Weinberg said, giving the examples of child support and student loans in deferment. "They are also going to need to be comfortable and aware of managing that debt. They are going to be asked questions about that."
Whether you're looking to buy a home next year or in two years, make a plan to manage debts now. It can only help.
3. Start the Paperwork: Though these new requirements impact consumers, they also affect lenders, and no one wants to be the first to screw up. The ability-to-repay measures require a lot of documentation, which will need to come from you, the applicant.
"We're really needing to get a very holistic perspective on the borrower in order to complete the analysis necessary to meet compliance," Weinberg said. Borrowers should ask a lender exactly what they'll need to provide, and in order to answer lenders' questions, they should also take stock of their credit profile.
Consumers are entitled to a free annual copy of their credit report from each of the three major credit bureaus -- Experian, Equifax and TransUnion. That's three credit reports, so it's smart to review at least one before starting the homebuying process.
No one is sugar-coating these changes -- they're a lot to handle. Changes are common in this post-crisis climate, so the best consumers can do is ask questions and do their part to prepare and educate themselves. "If we're making better loans, and the consumers are protected better, that's better at the end of the day," Weinberg said.
Source : http://realestate.aol.com/blog/2013/12/02/planning-buy-home-2014/

Texas condominium sales see double-digit growth in major metro areas

AUSTIN – Texas single family home sales have been on fire this year, but condominium sales are just as strong according to the 2013 Texas Condominium Sales Report. Released today by the Texas Association of Realtors, the report shows double-digit growth in condominium (condo) and townhome sales among Texas' four major markets.

According to the report, Austin, Dallas, Houston and San Antonio experienced an average 26 percent jump in condo sales between January and September 2013. Individually, Dallas condo sales jumped 38 percent, followed by Houston at 25 percent, Austin at 24 percent and San Antonio at 18 percent.

Shad Bogany, chairman of the Texas Association of Realtors, commented: "Data from the Texas Condominium Sales Report shows that all types of housing are in demand in Texas. Given the rapid job and population growth across Texas' major metro areas as well as our state's shrinking housing inventory, it's no surprise condo sales are playing an increasingly important role in the Texas housing market."

Based on data from The Real Estate Center at Texas A&M University, the Texas Condominium Sales report analyzes 2013 year-to-date condo sales in Austin, Dallas, Houston and San Antonio through September 2013. Trends during this time mirrored those of single family home sales across Texas, with double-digit decreases in active listings and days on the market and moderate increases in median and average price.

Jim Gaines, PhD., economist with the Real Estate Center at Texas A&M University, commented, "Inventory is at an all-time low for both condominiums and single-family homes, but the development of new condos and townhomes has lagged behind that of single-family homes through the housing recovery. As a result, we're at least a year or two away from delivering the condos that are currently needed in Texas's metro areas."

In Dallas, 4,468 condos were sold between January and September 2013. Compared to the same period in 2012, the median price increased 10 percent to $153,000. The number of new listings also increased 10 percent to 6,311, whereas active listings dropped 26 percent to 1,607 listings and pending sales jumped 33 percent to 4,077 year-over-year. Finally, days on the market dropped to 67 days, a 28 percent decrease from the year prior.

In Houston, 5,067 condos were sold between January and September 2013. Compared to the same period in 2012, the median price increased seven percent to $140,000. The number of new listings increased three percent to 7,552, whereas active listings dropped 31 percent to 1,737 listings and pending sales increased 17 percent to 2,827 year-over-year. Finally, days on the market dropped to 61 days, a 27 percent decrease from the year prior.

In Austin, 2,450 condos were sold between January and September 2013. Compared to the same period in 2012, the median price increased seven percent to $192,420. The number of new listings increased eight percent to 3,306, whereas active listings dropped 28 percent to 635 listings and pending sales jumped 22 percent to 2,706 year-over-year. Finally, days on the market dropped to 52 days, a 30 percent decrease from the year prior.

In San Antonio, 469 condos were sold between January and September 2013. Compared to the same period in 2012, the median price increased six percent to $98,900. The number of new listings decreased three percent to 776, whereas active listings dropped 22 percent to 379 listings and pending sales increased 11 percent to 415 year-over-year. Finally, days on the market dropped to 113 days, a 23 percent decrease from the year prior.

About the Report

The Texas Condominium Sales Report is based on data from The Real Estate Center at Texas A&M University and analyzes condominium and townhome sales data from January through September 2013 for Austin, Dallas, Houston and San Antonio. The Texas Association of Realtors distributes insights about the Texas housing market each month, including quarterly market statistics, trends among home buyers and sellers, luxury home sales, international trends, and more. To view these reports, visit TexasRealEstate.com^[1].

About the Texas Association of Realtors

With more than 80,000 members, the Texas Association of Realtors is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas Realtors and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com^[2] to learn more.

Source : http://www.yourhoustonnews.com/pearland/news/texas-condominium-sales-see-double-digit-growth-in-major-metro/article_4981ef58-a992-5b84-bc20-67fa179d1bbe.html

Short Sales Hard to Find, Except in Hard-Hit Housing Markets

Home sales and prices continue to rise on an annual basis, and as those numbers have climbed, the number of short sales going through the market has dropped. Short sales, which are home sales in which the sale price is less than the total of the outstanding mortgages secured by the property, made up 5.3 percent of all sales in October, according to RealtyTrac's^[3] monthly foreclosure report. That's down from 6.3 percent in September and 11.2 percent in October 2012.

In the report, RealtyTrac Vice President Daren Blomquist explained the shift: "After a surge in short sales in late 2011 and early 2012, the favored disposition method for distressed properties is shifting back toward the more traditional foreclosure - auctions sales and  bank owned sales Blomquist said. "The combination of rapidly rising home prices -- along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO [real estate owned] home -- means short sales are becoming less favorable for lenders."
The national median sales prices stayed consistent from September to October at $170,000, which is a 6 percent year-over-year increase. The annualized sales rate hit 5.6 million, a 2 percent increase from September and a 13 percent surge from October 2012. Despite the drop in short sales, they remain a large part of real estate in states riddled with distressed properties. In October, 14.2 percent of Nevada's home sales were short sales, the highest share among all states. Florida was runner-up at 13.6 percent, followed by Maryland (8.2 percent), Michigan (6.7 percent) and Illinois (6.2 percent).
While Blomquist cited  cash sales as a contributing factor to the decline in short sales, some of those same states reported a high percentage of cash sales. Nationwide, such transactions -- those that have no loan recorded at the time of sale -- accounted for 44.2 percent of all sales, a 33.9 percent increase from the same time last year. The percentage of cash sales in September was revised to 45 percent.
Florida led all states with 65.6 percent of its sales completed in cash, followed by Nevada (55.5 percent), Georgia (55.4 percent), South Carolina (53.9 percent), Michigan (49.5 percent) and Ohio (49.2 percent).
Source : http://realestate.aol.com/blog/2013/12/02/housing-short-sales-decline-2013/

Southeast Texas students earn service academy nominations

WASHINGTON, D.C. – Congressman Steve Stockman announced this week his service academy nominations.

"I am so proud of the students from the Thirty-Sixth District, and I am especially pleased with the level of their qualifications to compete for an appointment from any of the U.S. Service Academies. I know they will represent their families, schools, communities and Texas with distinction and honor," said Stockman.

Mackenzie Scott Jones to the United States Naval Academy at Annapolis, Maryland, and to the United States Merchant Marine Academy at Kings Point, New York. Jones is the son of Kenneth Jones and Stephanie Bassett. He resides in Seabrook, Texas and attends Clear Falls High School, where he maintains a GPA of 4.73.

Jones is a member of the marching band where he is a drum major and section leader. He is also in the jazz band, concert band, UIL and solo-ensemble competitor, FFA program, National Technical Honor Society member, and Aeronautical Team. Jones also performs regular community service every month.

Joshua Caleb Sims to the United States Naval Academy in Annapolis, Maryland. Sims is the son of Allen & Wanda Sims and resides in Winnie, Texas where he attends East Chambers High School. He maintains a GPA of 3.9.

Sims is a member of the National Honor Society, Fellowship of Christian Athletes, Academic Challenge Team, Student Council, Yearbook Editor, Honor Roll (four years), UIL competitor advancing to regional qualifier in mathematics and accounting, and has been in the top 10% of his class his entire high school career.

Sims has played football for four years, serving as captain of the team his senior year, track & field four years where he was area qualifier in shot put his junior year, is on the Power Lifting Team, and played tennis.

Jacob P. Richard to the United States Air Force Academy. Richard is the son of Joey Richard, Sr. and Angela Richard and resides in Orange, Texas where he attends Little Cypress –Mauriceville School. He maintains a GPA of 4.95.

Richard is a member of the Key Club, National Honor Society, is a Thespian Society representative, Theatre Productions Actor, and varsity cross county athlete. In addition, Richard was nominated an All American Scholar from the United States Achievement Academy, was Homecoming Court representative his freshman, sophomore, and junior year, was State Competitor in Academic UIL, placing 7th out of 762 competitors, and was Junior Star Student in 2012-13.

Richard is active in his community where he visits the elderly in nursing homes, participated in community Trash-Offs, raised money for the Water Project for the LCMHS Key Club to send funds to Africa to dig wells in areas were the water source is polluted, and worked the HEB Feast of Sharing.

Henry R. Garcia 3rd to the United States Air Force Academy at Colorado Springs, Colorado, and the United States Merchant Marine Academy at Kings Point, New York. Garcia is the son of Corina R. Garcia and Henry Garcia, and resides in La Porte, Texas where he attends La Porte High School (LPHS) where he maintains a GPA of 4.8.

Garcia is a member of the Student Council, Hispanics Advocating Better Lives and Attitudes (HABLA), National Honor Society, LPHS Musical Production, Class Council, LPHS Teens Reaching Upwards Toward Health (TRUTH), track and field athlete, and Football, where he played Running Back and Linebacker his junior and senior year, earning his varsity letter.

Garcia has volunteered for Bayer Exxon Mobile Fundraiser and the local food pantries. He is active in the St. Mary's Church Life Teen Youth Group as well.

Forest Walker Bell to the United States Air Force Academy in Colorado Springs, Colorado. Bell is the son of Shawn D. & Kathryn E. Bell and resides in Houston, Texas. Bell is a 2012 graduate of Clear Lake High School in Houston, Texas, and currently attends Stephen F. Austin State University where he has twice been on the Dean's List with honors, and is a Sigma Iota Rho International Honor Society member. Bell was also a cross county triathlete, playing rugby and participating in Track and Field. He was also the Political Club treasure and Rugby Club Secretary. In addition to these accomplishments, Bell had the prestigious nomination of Students for Liberty.

In Bell's free time he serves as a tutor in political science and has also been a student instructor.

Daniel J. Kasprzak to the United States Naval Academy at Annapolis, Maryland. Kasprzak is the son of Daniel & Patricia Kasprzak, and resides in Crosby, Texas while attending Crosby High School, where he maintains a GPA of 4.0.

Kasprzak has been a member of the junior varsity and varsity football team and the junior varsity and varsity soccer team. He has also been a member of the swim and track team..

Kasprzak is a member of the National Honor Society, the National Science Honor Society and the National English Honor Society and is a Crosby High PAC member. He was a delegate to the FFA State Convention in 2012. Throughout his high school career, he also held several part time jobs.

Cole V. Stoveken to the US Naval Academy in Annapolis, Maryland, and to the US Merchant Marine Academy in Kings Point, New York. Stoveken is the son of Robert Stoveken, and Terry Stoveken. He resides in Seabrook, Texas while attending Clear Lake High School, where he maintains a GPA of 4.53.

Stoveken was elected to the Clear Lake High School Varsity Football Leadership Counsel by his fellow teammates after earning his varsity letter for football his junior and senior year. He also participated in track, shot put and discus, and helped with theatrical sets for the theater department. In addition, he has held part time jobs, and assisted the mentally challenged and physically disabled children in little league baseball.

Campbell J. ("CJ") Burke to the United States Naval Academy at Annapolis, Maryland. Burke is the son of Chad and Shannon Burke and resides in Deer Park, Texas. He is a senior attending Deer Park High School where he maintains a GPA of 5.107.

Burke has been involved in many school and community activities, including membership in the Leadership Training for Christ group and the choir. He is also a member of the Math Honor Society (Mu Alpha Theta), National Honor Society (rank 31 of 1040), selected for Peer Assisted Leadership, and Interact Club. In athletics, Burke is on the weightlifting team, Varsity Football Leadership Council captain, and played Defensive End and starting offensive tackle. In track and field, he participates in the discuss and shot put. Burke was nominated to Boys State-Texas American Legion (3 selected from 940).

Neil Hernandez to the United States Air Force Academy in Colorado Springs, Colorado. Hernandez is the son of Jose and Teresa Hernandez of Baytown, Texas.

Hernandez is a senior at Lee High School (LHS) in Baytown, Texas. He is currently ranked in the top ten percent of his graduating class and a member of Mu Alpha Theta. At LHS he is Senior Vice President of Student Council, President of the Spanish Club, and Vice President of the Interact Club, while serving as captain of the Robert E. Lee Varsity Men's Soccer Team. He is an excellent academic student but also excels athletically.

Hernandez participates in many extracurricular activities. He is a member of the National Honor Society, College Forward, and the AB Honor Roll. For several years he has participated in the year-round school campus clean ups. Hernandez is very active in his community as well. He participated in the Trick or Treat for Hunger Drive in 2011-2012, Friends Serving Friends Thanksgiving Dinner in 2012, Love your Pet Food Drive 2011-2013, Christmas Toy Drive 2010-2012, Relay for Life, The Purple Pinky Project, Don't Mess with Texas Trash-Off 2011-2013, and the Baytown Special Olympics in April, 2013. In addition to his school and community activities, he has frequently held part-time jobs.

Megan Theresa Rose, to the US Naval Academy at Annapolis, Maryland, and to the US Merchant Marine Academy at Kings Point, New York. Rose is the daughter of Francis and Michelle S. Rose of Houston Texas.

Rose is in her senior year at Clear Lake High School in Houston, Texas where she has achieved recognition for her many qualities. She was inducted into the National Honor Society in 2011, was nominated in 2013 to represent CLHS for the National Security Youth Forum in Washington, D.C. Along with her academic achievements, she has been involved in Clear Lake High School's extracurricular activities, such as the Girls Cross Country & Track Team, CLHS LOVERS (Clear Lake's Senior Class Spirit Club), CLHS Japanese Culture Club, and in the Theatre Accidental Improve Troupe where she serves as Troupe Captain. Rose also participated in the Clear Lake City Stars Summer Swim team from 2002 to 2011, and the CLHS Basketball Team from 2010-2012.

Outside of the classroom, Rose was named Bluebonnet Girl's State Outstanding Citizen and elected Mayor of City "J" for 2013. Rose was a Girl Scout from kindergarten through twelfth grade (thirteen years) and received the Bronze Award, served as Summer Camp Counselor and Ambassador. She is President of the Fellowship of Christian Athletes, and active in her church as a Life Teen member of St. Clare of Assisi Catholic Church.

During the summer, Rose was selected to attend and was present at The Naval Academy Summer Seminar in 2013.

Jacob D. Connor, to the United States Air Force Academy in Colorado Springs, Colorado. Connor is the son of Daniel Connor and Amy Miller Hill, and resides in Silsbee, Texas.

Connor is a senior at Evadale High School (EHS) in Evadale, Texas, and also attends classes at Lamar State College in Orange, Texas. He is ranked as number one in his class.

Connor's excellence in academics is only rivaled by his athletic performance which started in the 9th grade. In the10th grade, he was Regional Finalist in the Long Jump, the Triple Jump and the 4x100m relay, and Regional Qualifier in the 4x200m relay as well. In football he was 2nd Team All-District for both Running Back and Linebacker. During his junior year, he received Honorable Mention for All District Defense Back, as well as Academic All-State Track for both the 10th and 11th grade.

Connor is just as active in his community. In Troop 88 of the Boy Scouts of America, he attained the rank of Life Scout, and is a member of the Order of the Arrow brotherhood. In addition, Connor attended both the Hugh O'Brien Youth Leadership Conference and the East Texas Rural Electric Youth Seminar tour to Washington, D.C. He also volunteers to work with pre-school children. Connor is a member of First United Methodist Church in Silsbee, Texas.

Source : http://www.yourhoustonnews.com/bay_area/news/southeast-texas-students-earn-service-academy-nominations/article_12fc83bb-f262-5fd4-b3f3-583d17b91ee6.html

Construction Spending Up but Homebuilders Lag

WASHINGTON -- U.S. developers boosted construction spending in October at the fastest pace in more than four years, propelled by a surge in government projects. But spending on home construction and commercial projects both fell. Overall construction spending increased 0.8 percent in October to a seasonally adjusted annual rate of $908.4 billion, the Labor Department said Monday. That's up from September, when spending fell 0.3 percent.
The October pace was the best since May 2009 and was driven by a 3.9 percent surge in public spending. Federal spending increased 10.9 percent, suggesting the 16-day partial government shutdown had little impact on public projects. Spending on state and local government construction also rose. One troubling sign: Home construction fell 0.6 percent in October from September, dragged lower by a drop in single-family homes.
But spending on home construction has surged 17.8 percent in the past 12 months, the fastest year-over-year pace since the peak of the 2008 financial crisis. And a recent jump in permits to build apartments indicates that will continue.
Deutsche Bank chief U.S. economist Joseph Lavorgna said that spending on single-family houses should rebound given plans by homebuilders to ramp up construction. "The recent dip should reverse course given the ongoing improvement in permits for new construction," Lavorgna said in a client note.
Nonresidential spending fell 0.5 percent in October from September, lowered by declines in the building of private power plants, communication facilities and amusement parks and recreation centers. Construction of office buildings, hotels and private schools all increased.
The decline in home construction in October may prove temporary. Permits issued to build apartments increased in October at their fastest pace in more than five years. But permits for single-family home construction rose only slightly and were at the same pace as in May. Single-family houses make up roughly two-thirds of the residential construction market.
The pace of homebuilding has rebounded from the depths of the recession. But sales of new single-family homes have grown more slowly, and higher mortgage rates could slow them further. Both the October and September figures were released Monday, after reporting was delayed due to shutdown in October.
The government also said spending in August and July were less than initially reported. Mortgage rates are nearly a full percentage point higher than the spring. Rates rose in May when the Federal Reserve first signaled that it might slow its $85 billion in monthly bond purchases. But rates have moderated from recent highs after the Fed decided to keep its bond buying intact.
The average rate on a 30-year fixed mortgage was 4.29 percent, which is still close to historic lows.
Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to National Association of Home Builders.
Source : http://realestate.aol.com/blog/2013/12/02/construction-spending-up-homebuilders-lag/

Brazoria County Humane Society closes its doors

MANVEL – After 10 years of service, the Brazoria County Humane Society (BCHS) is closing its doors due to the retirement of its owner/operator, Shirley Tinnin. Tinnin has been facing health issues that have prevented her from being at the shelter and she has made the tough decision to shut it down.

While no new animals are being accepted for intake, the dogs that are currently adoptable will have a home until they can find their "forever" homes. Adoptions will continue to be held at the shelter, located at 6215 FM 1128 in Manvel, during regular business hours. Adoptions will also continue to be held at the Silverlake PetSmart, located at 3119 Silverlake Village Dr. on weekends from 12 p.m. – 5 p.m. until all of the dogs have found permanent homes.

Tinnin and remaining volunteers are also trying to place some of the animals with other no-kill 501(c)(3) shelters. Because of the need to continue providing a home for current shelter residents, BCHS is in desperate need of financial help to pay for rent, electricity and other basics that will keep a roof over the dogs' heads. BCHS receives no funding from county or any other government agencies. They also need puppy food, hay and blankets to keep the dogs warm now that the weather has turned colder.

Monetary donations may be dropped off at the shelter or made online at http://www.brazoriacountyhumane.org/donate.htm^[1]. All monetary donations are 100% tax deductible.

Donated items may be dropped off at the shelter during regular business hours.

Shirley Tinnin's love of dogs started this venture back in December of 2003. While she still feels the same about the animals, her health has taken priority. It is with a heavy heart that she shuts down the shelter and she is very grateful to the staff, volunteers and community members who made BCHS a haven for homeless animals for the past 10 years. For more information about BCHS, visit their website at http://www.brazoriacountyhumane.org/index.htm^[2].

Source : http://www.yourhoustonnews.com/pearland/news/brazoria-county-humane-society-closes-its-doors/article_4327a75b-ddea-534f-9627-676be88b060c.html