My New Blog

2010 is upon us. Are you ready?

The new year brings a few changes in the mortgage market.

The biggest change is the updated disclosure on the Good Faith Estimate.

It is a new multi page form that is designed to allow mortgage clients to easily see the costs and fees associated with the loan.

Certain bank fees and title escrow costs are not allowed to change by more than 10% +/-....

This is an effort to keep transparency of costs to the clients.

It also is supposed to keep shady mortgage brokers honest.

A more important rule to keep mortgage brokers honest is the new rule that they must be licensed, and register with the Nationwide Mortgage Licensing System Registry (NMLS+R).

This is a new agency that can monitor mortgage originators to be sure they are not performing any illegal activity, and to discipline them if needed.

FINALLY. This has been needed for the last 10 years and is part of the reason the industry has been so damaged.

Too many mortgage originators had too much freedom and greed.

I think this is all a step in the right direction.

In my 15 years of business, it is great to see some regulation in the mortgage industry.

Hopefully this, along with the tough market will continue to "weed" out the bad guys....

For 2009 the real estate market in California was up overall compared to 2008.

The market is very busy in the under 400,000 price range with many 1st time buyers and investors entering the market. The tax credit really helped too.

The over 400k range has been a bit slower but the drops in value in our area of Tustin Ranch, CA 92782 have not been to bad.

Most of the homes, townhomes, and condos appear to be selling quickly.

The prices are down, but not as bad as some other areas in Orange County.

Also the Government decided to extend the 1st time buyer credit until April, so move fast if you are buying.

They also added a "move up" credit for buyers wanting to upgrade to another home.

All good news.

2010 predictions I have seen:

-Continued improvement in the number of sales and possible gains in value.

-Rates to increase due to inflation pressures.

-Possible 2nd wave of foreclosures coming in the high end market to to Neg Am loan resets.

Who knows what the results will be.

All I know is there is a lot of activity out there.

Let me know what your thoughts are?

Also one of my resolutions for 2010 is to get my blog going.

Let me know what I can do to improve?

Thanks,

Chuck Davis

Mortgage pro in Tustin Ranch, all Orange County, and all Southern California.