Appraisal-Free Purchase Mortgages Available from Fannie and Freddie, September 1, 2017

Appraisal-Free Purchase Mortgages

Available from Fannie and Freddie, 

September 1, 2017 

Fannie Mae and Freddie Mac have recently come out with new directives and notifications relating to requirements on appraisals ...  

What are those changes?

As of September 1, 2017: On transactions fulfilling "certain specific limited requirements" set forth by Fannie and Freddie, appraisals will no longer be required.

First and foremost: This does NOT mean that the mortgage industry has forgotten the lessons learned during the meltdown of the late 2000's.  Only mortgage applicants with very low credit risk will be capable of taking advantage of these new directives.

This new directive signals:  Fannie and Freddie feel they are now capable of streamlining the current mortgage process via these actions.  Each GSE has massive amounts of appraisal data at their disposal within their data bases.  That data now frees them to extend this benefit. 

It must also be pointed out:  In order for a Borrower -transaction to take advantage of this new directive, the info that Fannie Mae and Freddie Mac have at their disposal must support the stated Purchase Price of the transaction.

Remember hoping for "Common Sense Lending"? Hopefully, these changes represent a step in that direction.  

Common sense would lead you to ask ... 

"Why require an Appraisal, if a transaction's mortgage application features the following attributes"?

• More than Sufficient Down Payment
• More than Sufficient Credit Scores
• Above the Norm for Employment Stability/Income
• Sufficient retained Assets (Reserves)

Accumulatively, they point to a low-risk loan for any Lender.  

But the positives listed above must also be supported by the: 

• Purchase Contract  
• An Automated Valuation report that is "within a very low variance"

How can this change offered by Fannie Mae and Freddie Mac benefit the Borrower/Buyer?

This new "no Appraisal" approach can eliminate 7 to 10 days in mortgage processing time on a loan.  It can also result in a monetary savings of around $500 in appraisal charges for a Buyer/Borrower. 

Buyers obtaining a Fannie Mae loan can retain their option to have an appraisal conducted during their transaction if they so choose.  However, the Borrower must pay for any appraisal performed.  (Fannie Mae also distinguishes itself by allowing property waiver inspections on select purchase loans.)  

On the majority of transactions:  Appraisals will still be required ... at least for now.  But as automation becomes more reliable, more "appraisal-free" options may be added to Conventional Financing. (Experts guesstimate that 5% of deals will qualify ... so 95% will still require an Appraisal).

I don't expect to see the same option become available in FHA, VA, or USDA Rural Development lending.  

Why?  

Each of them offers high Loan-to-Value Loan Programs where appraised value is critical.  The condition of a property is also critical within these lending programs so appraisals will continue to serve as their "second set of eyes".

Still, the elimination of even a small number of appraisals should help increase the fluidity and flow of residential real estate transactions.  That's something industry professionals and consumers alike will enjoy ... 

* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

  

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.

Referrals are Greatly Appreciated & Welcomed!

The Sandwich Generation Dilemma: "What Do You Do With All the Stuff?"

The Sandwich Generation Dilemma:

"What Do You Do With All the Stuff?"

Recently, there's been a flood of articles highlighting a dilemma many Americans currently find themselves in ...

What do they do with their stuff if they downsize? 

For members of the "Sandwich Generation", this problem is magnified, as many are decluttering their parents' homes as they're also looking to downsize and declutter their own.  

The number of those that will face this dilemma is increasing rapidly.  A 2016 Population Reference Bureau report indicates that 98 million Americans will be of Sandwich Generation age by the year 2060.

I've seen this dilemma up close, as I've watched my wife and her siblings struggling with this issue.  Family history is important to them all, as they have wonderful memories of their father regaling them with stories about family members and events during evening meals and holidays.

Their mother suffered the loss of both parents within months of one another when she was only 9 years old.  Family ... family gatherings ... family memorabilia and heirlooms were sacred to her and she passed this belief on to each of her children.  

When their mother passed, my wife and each of her siblings received cherished family belongings.  And each of them is now wrestling with these questions ... 

• What do you do with family heirlooms when you want to downsize?  
• What do you do with your own cherished collected items? 
• Who wants or will take them?
• If no one in the family wants them, then what?  

My wife's family is not alone ...  

Many representing the "Sandwich Generation" are experiencing similar situations.  And the flood of recent articles reveal the harsh truth .... younger generations do not want the antiques, the memorabilia, the "stuff".  

Most of the articles I've read have approached this issue with an eye for downsizing needs only.  They've offered recommendations about which items to keep ... tips on how to clean out a home.  They've provided daily organization advice.  Decluttering calendars and checklists to follow.  

But helpful concrete recommendations and links for where to give away, sell, donate, or rid yourself of items (both un-needed and cherished) were missing.  

WHERE can all the stuff go??  

I went digging.  Below you'll find what I found during my search ...  

There are ideas and actions to consider should you find yourself facing any of these momentous decisions.  While businesses and organizations on my list can be found in the Chicagoland area, a great many of them are also nationwide.  

I'm sure that individuals and outlets for places of worship, charities, libraries, organizations, etc. ... and the needs they address ... also exist in your local area.  I highly recommend that you assist locally where and when you can. 

Please Note:  Not all organizations and charities accept all items, so make sure to visit websites/contact these outlets directly should you have questions and in order to donate properly.  

Consider:

Amvets 

Donation Town
Goodwill Industries

Morning Star Mission Treasure Chest
Epilepsy Foundation of Greater Chicago
Habitat for Humanity
Salvation Army
Open Books 

Easterseals

Lions Club

Purple Heart

Vietnam Veterans

The Ark

The Cancer Federation

Zealous Good
Together We Cope/Nu2U Resale (Chicago Southland)
FISH (Lincoln-Way Area Communities)
St. Vincent DePaul

Other Options: 

Illinois Furniture Consignment

Antique Buyers in Chicago Area

Professional Organizers - Chicago (Other Areas Available)

Chicago Area Estate Sale Appraisers

Estate Liquidation

Illinois Jewelry, Gem & Diamond Appraiser Directory 

The emotions (let alone physical challenges) associated with the disposal of family possessions and treasures can prove challenging.  Hopefully, the info provided here helps you face, tackle, and successfully accomplish the tasks at hand.

Best of luck to you.  Please reach out to me if I can be of assistance in any way ...  

* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

         

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.

Referrals are Greatly Appreciated & Welcomed!

Don't Be a Victim! Know How to Spot, Avoid, Report a Credit Repair Scam

Don't Be a Victim!   

Know How to Spot, Avoid, 

Report a Credit Repair Scam

The airwaves are full of advertisements and infomercials aimed at consumers with credit issues ...  

Some of these companies are legitimate.  But a fair number of them are fraudulent ... or just offering poor advice at a very costly price.  

For those struggling with credit problems:  A "quick and easy" fix to a very painful problem can sound pretty enticing.  

Unfortunately, there's really no such thing as quick or easy when it comes to credit repair.  It takes time.  It takes consistent effort.  

Should you need to improve or repair your credit:  Prior to starting your journey to better credit, it's smart to take some time to educate yourself regarding credit repair and credit repair companies/organizations.  

For disciplined individuals that are willing to take the time and make the effort:  It's important to know that credit repair can be successfully performed by consumers on their own behalf.  

Valuable information that will help achieve credit repair and credit improvement goals can be obtained at the myFICO ... and FTC (Federal Trade Commission) websites.  Each site provides tips, that with time and consistent effort (mentioned above) will reap positive results.

For those that wish to repair their credit on their own, I also recommend the following:  

     1.  Before you start, talk to a Mortgage Originator.  This can be extremely helpful for any consumer, even for those that don't own a home/have a mortgage ... but also for those that hope to buy a home in the future.  
          An Originator can help chart a path back to good credit and supply beneficial credit guidance.  Best of all?  The guidance is often provided at no charge.  
     2.  Know your Rights as a Consumer:  The Credit Repair Organizations Act by Federal Law governs all credit repair companies/organizations.  It lays out the credit repair services credit repair companies must fulfill.  

Again, education is key.  Educate yourself proactively about your rights so you are protected moving forward in your pursuit of improved credit.

For those that wish to secure the services of a credit repair company/organization:  It's important to be capable of recognizing repair scams and schemes.  You don't want to fall prey or become a victim. 

The first thing you should do, when considering the use of a credit repair company/organization:  Conduct a basic search of the company.  

If you can contact them only by email, via their website, or by phone alone ... heads up!  Move on to another company.

After conducting this important search, be aware of any of the following scam warning signs: 

• A suggestion is made by the credit repair company for you to invent or create a "new" credit identity.  Typically this scam calls for the consumer to apply for an Employer Identification Number (EIN).  
• You are told NOT to contact any of the 3 major Credit Bureaus (Experian, TransUnion, Equifax)
• The repair company does not provide you a copy of the "Consumer Credit File Rights Under State and Federal Law".  This disclosure alerts you to your rights to obtain your Credit Report and dispute errors within that Report.
• You're not provided a copy of the Contract to work with the credit repair organization prior to your being asked to sign it.

       Note: Every Contract should contain the following:

     (a)  All services being performed on your behalf and the detailed charges for each
     (b)  The complete Name and Address for the company - organization performing the credit repair 
     (c)  The date(s) by which the services must be rendered and completed
     (d)  A Statement showing that you can cancel the Contract and services within 3 days of signing it 

• The credit repair company/organization advises you to dispute all info on your Credit Report, even that info that is correct.
• The company says they can remove all negative information appearing on your Credit Report.
• The credit repair company/organization asks you to pay for services prior to them being provided.  NO upfront fees are allowed.
• Low Monthly Fees are required.
• The company asks you to waive all/or any of the above-stated Rights.
• The company is not licensed or bonded with your Secretary of State.

Should you become aware:  If you suspect any credit repair company or organization of perpetrating a scam or conducting unfair business practices, please file a complaint with The Federal Trade Commission. Info to help you do so can be obtained HERE. 

Remember:  Credit Repair and higher Credit Scores are attainable if you're willing to put time and consistent effort into achieving them.  With Credit Scores so vitally important within our lives, it's an effort well worth making.  

If you're in need of further info or assistance regarding credit or mortgage financing/services ... and in New Lenox - Will County - Illinois - Wisconsin, please contact me.  

Get started today ...

* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

  

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

Referrals are Greatly Appreciated and Welcomed!

  

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2017 - Lincoln-Way Community High Schools Varsity Football Schedules

  2017 - Lincoln-Way Community High School

Varsity Football Schedules

(Central, East, & West)

Nothing says Fall has arrived like football ...

And Lincoln-Way Community High School, District #210, serving the New Lenox, Frankfort, Mokena, and Manhattan communities, provides plenty of great opportunities to watch top-notch gridiron action.

Consisting of 3 schools and campuses, Lincoln-Way Community High School, District #210 will offer a full 2017 schedule of exciting football games and superb half-time entertainment for area residents' and visitors' enjoyment.

Below you'll find the 2017 Varsity Football Schedules for each of the 3 Lincoln-Way High Schools ...

           2017 Central Knights Football Schedule

2017 West Warriors Football Schedule

2017 East Griffins Football Schedule

   
Remember:  Lincoln-Way Community High School, District #210 football games can be heard on WJOL 1340 AM throughout the entire 2017 football season.

Both my wife and I are proud LWHS alumni ... and we hope that you take the opportunity to attend LWHS events and support Lincoln-Way High School District #210 students, athletes ... and musicians ... this Fall and throughout the entire year.

Best of luck to all the Lincoln-Way Community High School, District #210 athletes, students, musicians, coaches, directors, teachers, and parents ...

     
     
    * If you're hoping to buy or refinance a home in one of the Lincoln-Way Community High School, District 210 communities ... in Will County, or elsewhere in the greater Chicagoland area, please contact me. I'll put my 40+ years of experience hard to work on your behalf.
I'm easily found at:

     

Gene Mundt

Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed

American Portfolio Mortgage Corp.

nmls #175656

Direct: 815.524.2280

Cell or Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com

gmundt@goapmc.com

 

              

             

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage, 

will offer you exemplary mortgage service and advice when seeking: Conventional, 

FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago 

and the greater Chicagoland region, including: 

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, 

Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, 

Naperville, etc.), DuPage County, the City of Chicago, 

Cook County, and elsewhere within IL & WI.

Referrals are Appreciated and Welcomed!