H.E.R.A ( Housing and Economic Recovery Act) is unfortunately another obstacle that any buyer, real estate agent and most importantly, lender has to deal with. Basically, on any loan done in California, expect more costs, paperwork and delays with H.E.R.A. coming this July 30th.
In summary there are numerous fees in California that affect the APR or
Annual Percentage Rate, many of which are NOT lender related fees. Here are
some of the APR affecting fees: Points, Processing, Underwriting, Wire
Transfer, Tax and Insurance Reserves, Per Diem Interest, Escrow Fee, Escrow
Courier Fees, Escrow Loan-Tie-In Fees, any other Escrow related fees.
A few months ago we were hit with HVCC. For those that dont know what this is, basically it requires on all conventional loans, to have the appraisal ordered through a central headquarters. Lenders no longer have contact with the appraisers. This new guideline nearly cost me a deal this week, due to the fact that the appraiser decided to state on his appraisal report that the home NEEDED new paint and the woodflooring needed to be replaced. Last I checked, most REO/Foreclosure properties require one of the two.
If anyone one has their own stories on either HVCC or H.E.R.A , Id love to hear it.
Thursday, July 23, 2009
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