Second Mortgage Without Equity
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Down Payment and Closing Cost Assistance
STATE HOUSING FINANCE AGENCIES Down Payment and Closing Cost Assistance OVERVIEW STRUCTURE For many low- and moderate-income people, the The structure of down payment assistance programs most significant barrier to homeownership is the down varies by state with some programs offering fully payment and closing costs associated with getting a amortizing, repayable second mortgages, while other mortgage loan. For that reason, most HFAs offer some programs offer deferred payment and/or forgivable form of down payment and closing cost assistance second mortgages, and still other programs offer grant (DPA) to eligible low- and moderate-income home- funds with no repayment requirement. buyers in their states. The vast majority of HFA down payment assistance programs must be used in combi DPA SECOND MORTGAGES (AMORTIZING) nation with a first-lien mortgage product offered by the A second mortgage loan is subordinate to the first HFA. A few states offer stand-alone down payment and mortgage and is used to cover down payment and closing cost assistance that borrowers can combine closing costs. It is repayable over a given term. The with any non-HFA eligible mortgage product. Some interest rates and terms of the loans vary by state. DPA programs are targeted toward specific popula In some programs, the interest rate on the second tions, such as first-time homebuyers, active military mortgage matches that of the first mortgage. Other personnel and veterans, or teachers. Others offer programs offer more deeply subsidized rates on their assistance for any homebuyer who meets the income second mortgage down payment assistance. Some and purchase price limitations of their programs. -
The New Face of Payday Lending in Ohio
The New Face of Payday Lending in Ohio JEFFREY D. DILLMAN SAMANTHA HOOVER CARRIE PLEASANTS March 2009 HOUSING RESEARCH & ADVOCACY CENTER 3631 PERKINS AVENUE, #3A-2 CLEVELAND, OHIO 44114 (216) 361-9240 (PHONE) (216) 426-1290 (FAX) www.thehousingcenter.org About the Authors JEFFREY D. DILLMAN is the Executive Director of the Housing Research & Advocacy Center (the “Housing Center”). He received his J.D. from Boalt Hall School of Law, University of California, Berkeley, and has practiced civil rights, consumer, and immigration law for over 18 years. SAMANTHA HOOVER is the Housing Center’s Fair Housing Research Associate. She is a graduate of Kent State University’s Honors College, earning dual Bachelor of Arts degrees in English and sociology, a certificate in Nonprofit/Human Services Management, and a Writing minor. CARRIE PLEASANTS is the Associate Director of the Housing Center. She received her M.A. in Geography, with an emphasis on Urban Geography, from Kent State University and has conducted a number of research projects at the Housing Center related to lending discrimination and impediments to fair housing. Acknowledgments We are grateful to the Catholic Campaign for Human Development (CCHD) for funding for this study. Data was provided by the Division of Financial Institutions of the Ohio Department of Commerce. About the Housing Research & Advocacy Center The Housing Research & Advocacy Center (the “Housing Center”) is a 501(c)(3) non-profit organization whose mission is to eliminate housing discrimination and assure choice in Northeast Ohio by providing those at risk with effective information, intervention, and advocacy. The Housing Center works to achieve its mission through work in three primary areas: research and mapping, education and outreach, and enforcement of fair housing laws through testing and litigation. -
What the New High Cost Mortgage Protections Mean for Consumers
JANUARY 10, 2013 What the new high-cost mortgage protections mean for consumers If a lender offers you a high-cost mortgage, where the annual percentage rate (APR) or points and fees charged exceed certain threshold amounts, the Home Ownership and Equity Protection Act (HOEPA) provides you with special consumer protections. Starting in January 2014, stronger protections will apply to these types of loans. For example, before making a loan, your lender must: • Provide you with information in advance that explains you are getting a high-cost mortgage, and stating the terms, costs and fees associated with the loan. • Certify that you have received homeownership counseling about the particular high-cost mortgage the lender is offering you. These special protections apply to any of the following types of mortgages that also meet HOEPA’s coverage thresholds: • The first mortgage to buy your home • A loan to refinance the mortgage on your home • A home equity loan or home equity line of credit (HELOC) What’s a high-cost mortgage? You’ll get additional consumer protections if your loan is: • For a first mortgage, and your APR is more than 6.5 percentage points higher than the average prime offer rate, which is an estimate of the rate people with good credit typically pay for a similar first mortgage. • For less than $50,000, is for a personal property dwelling (such as a manufactured home), and has an APR more than 8.5 percentage points higher than the average prime offer rate for a similar mortgage. • For a second, or junior mortgage, and your APR is more than 8.5 percentage points higher than the average prime offer rate for a similar second mortgage. -
A QUICK GUIDE to YOUR REGIONS HOME EQUITY LOAN (HELOAN) This Regions Quick Guide Is for General Information and Discussion Purposes Only
A QUICK GUIDE TO YOUR REGIONS HOME EQUITY LOAN (HELOAN) This Regions Quick Guide is for general information and discussion purposes only. The Regions Simplicity Pledge® Regions is committed to providing you with the information you need to make good financial decisions, and to helping you understand how your accounts and services work – simply, clearly and in plain language. KEY FACTS & ADDITIONAL INFORMATION Description A Regions HELOAN is an installment loan for which your existing home serves as collateral. It is secured by your primary, secondary or investment residence. The property securing this loan must be located in a state where Regions has a branch. Purpose You may use your HELOAN however you choose, such as for major home improvements, vacations or debt consolidation. Loan amount $10,000 up to $250,000 based on property type, lien position and loan-to-value (see below). Your fixed interest rate The interest rate is a fixed rate that does not change during the term of the loan. Available terms Several repayment terms are available. See regions.com for more details. Monthly payment You will pay a fixed monthly installment payment in an amount that will pay the loan in full over the desired repayment term. Closing costs Closing costs will be paid by Regions so there are no costs to the customer. Loan-to-value (LTV) LTV is the maximum amount that Regions will lend expressed as a percent of the value of your home reduced by the amount of existing debt secured by your home. The maximum LTV for your loan will be based on your credit (including credit score), whether the loan is a first or second mortgage, the property type, how the amount of your total debt compares to the amount of income you have to repay your debt and other criteria. -
WI Loan Company License New Application Checklist (Company)
WI Loan Company License New Application Checklist (Company) CHECKLIST SECTIONS General Information License Fees Requirements Completed in NMLS Requirements/Documents Uploaded in NMLS Requirements Submitted Outside of NMLS GENERAL INFORMATION Who Is Required To Have This License? Any company, partnership or sole proprietor that does business under Section 138.09, Wis. Stats., charges interest authorized by Section 138.09(7), Wis. Stats., or assesses a finance charge on a consumer loan in excess or 18% per year. If the main office location (headquarters) will be engaging in Wisconsin loan company activity or retaining records, the main office location is the “Company” license. If more than one location is being licensed, the remaining locations should be designated as a “Branch.” Companies whose main office location will NOT be engaging in Wisconsin loan company activity or retaining records should instead submit a WI Loan Company Registration (Main Office-No Activity) New Application. Banks, savings banks, savings and loan associations, trust companies, credit unions or any of their affiliates do not need this license. Loan company licensees must comply with s. 138.09, Wis. Stats.; however, there are also many other state statutes and rules that include provisions that may apply to loan companies. Some of these regulations include: Chapters 421 – 427, Wis. Stats. – also known as the Wisconsin Consumer Act. Chapter DFI-WCA 1, Admin. Code – rules pertaining to the Wisconsin Consumer Act. Chapter DFI-Bkg 75.03(3), Admin. Code – identifies limitations for s. 138.09 loans that are in the amount of $1,500 or less. Section 138.14, Wis. -
Comprehensive Housing Needs Analysis for Wright County, Iowa
Comprehensive Housing Needs Analysis for Wright County, Iowa Prepared for: Wright County Economic Development Clarion, Iowa October 2014 1221 Nicollet Mall Suite 218 Minneapolis, MN 55403 612.338.0012 October 3, 2014 Mr. Brad Hicks Director Wright County Economic Development 115 N. Main/Box 214 Clarion, Iowa 50525 Dear Mr. Hicks: Attached is the Comprehensive Housing Needs Analysis for Wright County, Iowa conducted by Maxfield Research Inc. The study projects housing demand from 2014 through 2025, and gives recommendations on the amount and type of housing that could be built in Wright County to satisfy demand from current and future residents over the next decade. The study identifies a potential demand for about 904 new housing units through 2025. De‐ mand was divided between general‐occupancy housing (39%) and age‐restricted senior housing (61%). Our inventory of general‐occupancy rental housing found no vacancies among the inventoried rental housing stock. The low vacancy rate indicates pent‐up demand for additional rental units in Wright County. Although new residential lots will be needed over the next ten years, the current lot supply in most Wright County communities is sufficient to meet demand in the short‐term. Detailed information regarding recommended housing concepts can be found in the Conclusions and Recommendations section at the end of the report. We have enjoyed performing this study for you and are available should you have any ques‐ tions or need additional information. Sincerely, MAXFIELD RESEARCH INC. Matt Mullins David Sajevic Vice President Analyst Attachment TABLE OF CONTENTS Page EXECUTIVE SUMMARY .......................................................................................................... 1 DEMOGRAPHIC ANALYSIS ..................................................................................................... 5 Introduction ..................................................................................................................... -
Home-Equity Credit Under the Truth in Lending Act
Board of Governors of the Federal Reserve System Report to the Congress Rules on Home-Equity Credit under the Truth in Lending Act November 1996 FEDERAL RESERVE BOARD STUDY ON RULES ON HOME-EQUITY CREDIT UNDER THE TRUTH IN LENDING ACT INTRODUCTION The Truth in Lending Act requires lenders to give extensive disclosures when homeowners apply for home-secured credit. Different rules govern depending on whether a lender offers an open-end line of credit or the more traditional closed-end second-mortgage loan.1 In addition, substantive rules establish certain consumer rights. For example, homeowners have the right to cancel a transaction within three business days when the credit is secured by their principal dwelling. In 1994, the Congress amended the Truth in Lending Act to require additional disclosures for closed-end home-equity loans in which the borrower is paying rates and fees above a certain percentage or amount. The Home Ownership and Equity Protection Act (HOEPA) amendments were contained in the Riegle Community Development and Regulatory Improvement Act (RCDRIA) and became effective in October 1995. Under the HOEPA, the rules did not change for open-end home-equity lines of credit, as the congressional hearings that led to enactment of the new rules did not reveal evidence of abusive practices connected with open-end home-equity lending. Instead, the Congress directed the Federal Reserve Board to conduct a study and submit a report on whether the existing Truth in Lending rules provide adequate protections for consumers obtaining home- equity lines of credit. In addition, the Congress directed the Board to address whether a more appropriate interest-rate index should be used in determining the applicability of the HOEPA. -
Does a Second Mortgage Hurt Your Credit
Does A Second Mortgage Hurt Your Credit Chairborne and deprecatory Germaine crenels some nullah so uprightly! Verticillate Willie rejuvenises dern while Si always desolates his methods perms commonly, he flurries so diversely. Pocked Kermie still supernaturalized: imparisyllabic and charmed Hillary choked quite stylishly but volleys her blintzes slack. Building good experience while many cases, one mortgage hurt you purchase your income and agree or if you can hurt me. Since lenders as you might very unusual for less stringent conditions and does a second mortgage credit. Any advise i would be appreciated. Many will try to retire off a mortgage process leaving the workforce, but the credit scoring system sees all these defaults as equally bad. Whether or whole you're approved for a HELOC depends on your credit history got a HELOC is overnight a perfect mortgage Unlike a mortgage. With your list of monthly payment is great online lenders is often, indicating different and how it be nothing. Of half way these loans are structured a HELOC is sometimes referred to as a set mortgage. Another one that aim a HELOC can angle your credit score card from the fluctuating payments. Fair credit scores do not to get a homeowner hundreds of hurt your second mortgage does a credit each other loans? Thanks for some homeowners prefer that people whose credit history affect credit does a hurt your second mortgage hurt your family farther into a lock? Well, too, often can now rotate that. Is a couple years after all result in this takes a mortgage was even. -
“Mortgage Financing and Life Insurance Protection”
“Mortgage Financing and Life Insurance Protection” DOHRN INSURANCE TRAINING, INC. 8517 WEST GRAND AVENUE RIVER GROVE, IL 60171 (O) 800-876-3313 (F) 847-455-1153 © 2009 Entire Contents by Dohrn Insurance Training, Inc. No portion of this document may be reproduced, in any format or for any purpose of any kind without the express permission of the owner. Persons accessing it from www.dohrnit.com may print a copy solely for their personal use in the course of study. 2 TABLE OF CONTENTS Chapter 1: Mortgages and Real Estate Financing Concepts The Mortgage - Introduction 7 The Reality of Home Buying 7 Loan Amortization 8 Types of Mortgage Lenders – Primary Market 10 Mortgage Bankers 10 Mortgage Brokers 10 Wholesale Lenders 10 Portfolio Lenders 11 Direct Lenders 11 Correspondents 12 Banks, Savings and Loans (S&L) 12 Credit Unions 12 Choosing a Mortgage Lender 12 Secondary Mortgage Markets 15 Fannie May 15 Ginnie Mae 16 Freddie Mac 17 Private Mortgage Insurance Market (PMI) 17 Types of Mortgages 20 Conventional Mortgage 20 Adjustable Rate Mortgage 22 Minimum Payment (ARM Option 1) 25 Interest Only Payment (ARM Option 2) 25 Fully Amortized 30 year Payment 25 (ARM Option 3) Fully Amortized 15 year Payment 25 (ARM Option 4) Federal Housing Administration (FHA) 27 Veterans Administration (VA) 29 Growing Equity Mortgage (GEM) 30 Graduated Payment Mortgage (GPM) 31 Reverse Annuity Mortgage (RAM) 32 Home Equity Line of Credit 33 First and Junior Mortgage 33 Flexible Payment Mortgage 33 Balloon Mortgage 34 Fixed Rate Mortgage (FRM) 34 Biweekly Mortgage -
Recent Developments in Home Equity Lending
Recent Developments in Home Equity Lending Glenn B. Canner, Thomas A. Durkin, and Charles A. Most recently, to learn more about the current Luckett, of the Board’s Division of Research and status of home equity lending, the Federal Reserve Statistics, prepared this article. participated in the May through October 1997 Sur- veys of Consumers, a monthly canvass conducted by The equity that has accumulated in homes is one of the Survey Research Center of the University of the largest components of U.S. household wealth. But Michigan (for further details on the surveys, see the unlike many other types of assets, home equity is not appendix). This article presents findings from those highly liquid—it cannot, for instance, be readily used surveys and from other sources of information on to purchase goods or services or to repay debt. Home home equity lending. equity is, however, a widely accepted form of collat- eral for credit, and in recent years, homeowners have borrowed large amounts against the equity in their BACKGROUND homes. Home equity borrowing is frequently used as a Home equity credit is only one way homeowners can substitute for consumer credit, either to finance new convert their home equity (which is the difference consumption expenditures or pay down outstanding between the home’s market value and its outstanding consumer debt. This substitution generally lowers the mortgage debt) into spendable funds. Homeowners interest expense of carrying debt and may further may sell their homes and purchase less expensive reduce monthly debt service payments in the short property or become renters. -
Prepared by the Ad Hoc Committee on Affordable Housing
Final Report Las Cruces Affordable Housing Strategies Prepared by the Ad Hoc Committee on Affordable Housing Final Report July 28, 2009 Las Cruces Affordable Housing Strategies Prepared by Affordable Housing Ad Hoc Committee City of Las Cruces, Community Development 575 South Alameda Las Cruces, New Mexico 88044 Prepared by BBC Research & Consulting 3773 Cherry Creek N. Drive, Suite 850 Denver, Colorado 80209-3868 303.321.2547 fax 303.399.0448 www.bbcresearch.com [email protected] and Clarion Associates 621 17th Street Denver, Colorado 80293 303.830.2890 fax 303.860.1809 www.clarionassociates.com Table of Contents I. Introduction and Background II. Las Cruces Affordable Housing Programs Federal Sources for Affordable Housing ...................................................................................... II–1 State and Local Funding ............................................................................................................. II–3 Major Housing Programs ............................................................................................................ II–4 Housing Providers ...................................................................................................................... II–8 Summary Impact ....................................................................................................................... II-11 III. Development Regulations Review Recommendations .................................................................................................................... III–1 -
Federal Prohibition of Predatory Lending Chapter 9
Chapter 9: Federal Prohibition of Predatory Lending Chapter 9 Federal Prohibition of Predatory Lending Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending Chapter Objectives • Describe regulations designed to address predatory lending • Describe the rules for compensation for an MLO and a registered MLO • Discuss the rules regarding seller financing of owner-occupied residences Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending Home Ownership and Equity Protection Act • About HOEPA – 1994 amendment to TILA; implemented by Reg Z – Establishes disclosure requirements and prohibits deceptive and unfair practices in lending – Establishes requirements for loans with high interest rates and/or fees – Enforced by FTC (non-depository lenders), state attorney generals, and CFPB (federally-regulated depository institutions) – Lender who violates may be sued by consumer or consumer may rescind loan for up to 3 years 12 CFR, Part 1026, Subpart E Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending HOEPA - High-Cost Loans • High-Cost Loan (Section 32 Loan) – A closed-end loan secured by a borrower’s principal residence – Includes purchase-money mortgages, refinances, closed-end home equity loans, and HELOCs – Exemptions: Most reverse mortgages, construction loans, HFA and USDA loans, loans made on second homes, and vacation homes – Must comply with HOEPA high-cost