Hurry! Tickets are now HALF OFF!

Great cause, extraordinary talent! Tickets are still available and are now HALF OFF for Noah's concert for kids. Don't miss Sanibel's own musical prodigy, 12 year old Noah Waddell.

CLICK HERE for more information.

More home loans require smaller downpayments

WASHINGTON – Oct. 24, 2013 – More people are getting home loans with lower credit scores and smaller downpayments.

Last month, the average FICO score for a closed home loan was 732, down from 750 a year ago, shows data from mortgage tracker Ellie Mae.

The average downpayment was 19 percent, vs. 22 percent a year ago. What’s more, almost one-third of closed loans had FICO scores under 700, vs. 17 percent a year ago. The top FICO score is 850.

“We continue to see things open up ever so slightly month by month,” says Jonathan Corr, Ellie Mae president.

The standards to get a home loan remain tight, mortgage experts say. But lenders are reducing some restrictions as housing prices recover and as higher interest rates curtail their refinance business.

“We’re starting to see some of the banks … get more creative … to drive more volume to the door,” says Jeff Taylor, managing partner at mortgage analytics firm Digital Risk.

Earlier this month, Bank of America dropped its minimum downpayment requirement for non-conforming loans under $1 million to 15 percent from 20 percent. Non-conforming loans, which can’t be sold to Fannie Mae or Freddie Mac, are over $417,000 in most parts of the country.

Wells Fargo also reduced non-conforming loan minimum downpayments to 15 percent from 20 percent in July.

JPMorgan Chase, meanwhile, reduced downpayment requirements in Arizona, Florida, Nevada and Michigan – states that were especially hard hit by foreclosures. The bank’s minimum downpayment is now 5 percent, down from 10 percent, for primary homes and 10 percent, instead of 20 percent for second homes in those states. The change brings downpayment requirements in those states in line with others, says JPMorgan spokeswoman Amy Bonitatibus.

“These markets have shown strong signs of improvement,” Bonitatibus says. Improving home values lessen risk for lenders.

JPMorgan and Wells made their changes in July after a sharp interest rate spike in May cut into the refinance business.

While banks are easing some loan requirements, home lending standards remain tight and will likely stay there, says Cameron Findlay, economist at Discover Home Loans.

New lending rules expected to take hold in January require lenders to make home loans that meet federal standards or face greater liability from borrower lawsuits should the loans go sour. Findlay doesn’t expect lenders to do many loans that fall outside of those standards.

“We’re seeing tweaking of the underwriting standards, but it’s not a wholesale loosening,” says Guy Cecala, publisher of Inside Mortgage Finance. “The pendulum is still too far toward restrictive.”

Housing’s biggest thorn: Student loan debt?

WASHINGTON – Oct. 9, 2013 – Student loan debt is the main culprit hampering the housing recovery, says Rohit Chopra, the student loan ombudsman for the Consumer Financial Protection Bureau.

“We are already seeing signs of economic drag from student loan debt,” Chopra says. “The impact on the housing market is the most troubling part.”

Student loan interest rates typically are at 8 percent or above, Chopra says. An estimated 7 million borrowers with student loans are in default, he adds.

“The fact is student indebtedness impacts the credit profile of first-time home buyers,” Chopra says. “Three-fourths of the fall in household formation can be directly correlated to student debt.”

The CFPB will be serving as the new regulator that will oversee student loan servicing and lending. Chopra says the agency plans to address the issue of high student loan debt.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=298035

5 ways borrowers can land the best mortgage

RIVERDALE, N.J. – Oct. 10, 2013 – After riding a swift updraft earlier this year, mortgage rates have steadied at around 4.5 percent for a 30-year fixed loan.

But there’s a good chance they’ll resume their upward path. That’s one of a number of things borrowers need to know now to get the best loan.

“For planning purposes, if I were thinking of getting into the market next spring, I’d be working with numbers in the 5 percent range,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J.-based publisher of mortgage information. That would be up from around 3.5 percent earlier this year.

The market got some rate relief recently, when the Federal Reserve decided to continue its policy of buying bonds to keep mortgage rates low, in an effort to stimulate the housing market and the economy.

But the Fed has also made it clear that it will taper off such buying at some point, as the economy improves.

So does that mean buyers should speed up their timetables and jump into the market before rates start to rise again?

Not necessarily. For one thing, analysts aren’t predicting a huge increase.

And the mortgage rate is “only one part of the (home-buying) transaction,” Gumbinger said.

For most people, the decision to buy or sell is less influenced by the financial markets, and much more influenced by what’s happening in their lives: a new job, marriage, divorce, or the birth – or departure – of children, said Greg McBride, an analyst with Bankrate.com.

And even if rates start to rise, they are likely to remain affordable, by historic standards.

“Mortgage rates are not, and won’t be for some time, an impediment to well-qualified borrowers,” McBride said.

“If the difference between a 4.5 percent and 5 percent rate on your mortgage is the difference between being able to afford a home or not, you’re stretching yourself too far.”

Given the changing mortgage landscape, here are five things borrowers can do to get the best deal:

Do your homework: The first step is to check your credit report with the three credit reporting agencies.

You can do it for free at AnnualCreditReport.com. If there are any errors, correct them. Then do what you can to improve your credit rating by paying down your debt.

Avoid borrowing to buy a car or other big-ticket item in the months before you apply for a mortgage – and, for that matter, up to the date you finally close on your new home.

You can check your credit score at MyFico.com for $19.95. Anyone with scores below 620 will find it very difficult to qualify for a mortgage; borrowers with scores over 740 qualify for the best rates. It’s a good idea to try to improve your score in the months before you apply for a mortgage, because even a 20-point improvement can make a difference in the rate you can get, according to David Stein, chief operating officer of Residential Home Funding in Parsippany, N.J.

Be ready to offer up a lot of paperwork to document your income, debts and assets. Regulators have cracked down since the housing boom free-for-all, when unqualified buyers and borrowers got or refinanced mortgages they couldn’t actually afford.

Now, borrowers need to show one month’s worth of pay stubs, two months of bank statements and two years of tax returns, according to Stein. During the housing boom, Stein said, lenders “weren’t looking at anything – now they’re looking at everything.”

Then shop around among several lenders for the best rate.

Get preapproved: Even before you start looking for a house, you should get preapproved for a mortgage. This will make you a stronger buyer, because sellers will know you have the financing in place to move forward.

In addition, getting preapproved for a mortgage amount “sets boundaries around what you can afford. Those boundaries dictate what your price range is,” said McBride.

Choose between rates: The standard loan offers a fixed interest rate for 30 years. Adjustable-rate mortgages (ARMs) offer a fixed rate for, typically, the first five or seven years; after that, the rates can rise every year. In exchange for accepting the risk that interest rates will rise, borrowers get a lower initial rate on ARMs. According to the Mortgage Bankers Association, ARMs make up about 7 percent of the current market.
But ARMs make sense only for people who know for sure that they’re going to be in the house for a limited time.

“Forget about adjustable rates altogether unless you have sufficient financial stability that you could absorb a higher monthly payment if your timetable doesn’t pan out,” McBride said.

Decide length of loan: Fifteen-year loans are more popular with refinancing homeowners than they are with first-time homebuyers because many buyers can’t afford the higher monthly payments. The reward for those higher payments is that over time, you’ll pay much less in interest by shortening the life of the loan. And 15-year mortgages come with lower rates.

Sammy Thomas, a consultant living in Ridgewood, N.J., wasn’t looking for a 15-year mortgage when he decided to refinance as rates dipped last year. But with rates on 15-year mortgages then hovering around 3 percent, he decided that was the best deal. The shorter loan also meant that he and his wife, Demi, a teacher, could live mortgage-free sooner. That was especially appealing as they plan for their retirement, said Thomas, 58. In fact, they hope to put extra money on the loan each month and have it paid off in 11 or 12 years.

Lock in your rate: Once you’ve found a good rate, consider locking it in, which you can usually do for no cost, or for a fee that is refunded at closing. It’s not worth betting that rates will fall before you close on the house.

“I rarely tell folks to try to time the bottom of the market,” Gumbinger said. “Mortgage rates almost always rise much more quickly than they fall.”

“Don’t try to guess the way rates are moving,” McBride agreed. “I’m not a fan of people rolling the dice for something as significant as what their mortgage payment is.”

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=298039

Real estate Q&A: Explore options for mortgage relief

FORT LAUDERDALE, Fla. – Oct. 10, 2013 – 

Question: I want to avoid foreclosure. I have applied for a loan modification with my bank and also applied for the Florida’s Hardest-Hit Fund Principal Reduction Program for relief. Now I am worried that I’ve hurt my chances for the loan modification. Did I mess up? – Jim

Answer: Probably not. When trying to save your home, it’s important to explore every avenue of relief available to you. While some programs are to the exclusion of others, I see no issue with applying to your lender and to the various agencies that are there to help.

But this advice comes with some warnings. Check that the program allows you to apply for other assistance. Don’t apply for the same assistance again until you get an official denial on your first application. Don’t be afraid to apply again after you have been denied, as criteria change from time to time. Be wary of anyone trying to get money from you upfront, because there are plenty of predators looking to take advantage in your time of need. When dealing with a third-party agency, make sure that it’s sanctioned by your lender or the government program to which you are applying. Make sure to fill out your application completely and to respond to the numerous requests made quickly and completely.

Have realistic expectations and expect realistic results. Most lenders do not offer principal reduction, but they will help you get to a payment you can afford. Most importantly, don’t give up. Keep trying even when the process becomes difficult and frustrating. It is no fun dealing with corporate policies and a bureaucratic maze, but for most people there is relief available.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=298047

Mayor thinks DC trip will get results

October 9, 2013

By JIM LINETTE

Sanibel Mayor Kevin Ruane is pleased and encouraged about the Caloosahatchee and St. Lucie waterways freshwater releases after visiting with U.S. Congressional leaders in Washington, D.C., on Oct. 3.

"It went really well," said Ruane. "I think they understand the situation better now. There probably will be another meeting with more of the Appropriations Committee members at some point. We only got to meet five or six out of 40 of them this time."

Ruane, Vice Mayor Doug Congress, Natural Resources director James Evans and Rep. Patrick Murphy of Jupiter were invited to the Capitol by Representative Trey Raydel, who met with the Sanibel delegation and Congressman Tom Rooney, who represents Florida's 17th Congressional District and is a member of the U.S. House Committee on Appropriations. Lee County Commissioner Larry Kiker, Fort Myers Beach Mayor Alan Mandel and FMB Chamber president Bud Nocera also participated in the "South Florida Fly-In and Briefing."

Their goal is to convince federal lawmakers to authorize funding through the Water Resources Reform and Development Act (WRRDA) for short and long term solutions to correct environmental and economic harm being done by freshwater releases from Lake Okeechobee to the east and west coasts.

"Over the past five weeks we have forged unique partnerships: bipartisan partnerships with both parties in Congress; bicoastal partnerships among our Florida delegation and partnerships between local governments and our Governor's office," Ruane added. "I do believe all of us working together toward the implementation, funding and construction of our short and long-term priorities are how we best serve the citizens of Sanibel, Florida and everyone who works in and visits southwest Florida."

The WRRDA bill already was passed by the U.S. Senate and is awaiting a vote by the U.S. House soon, perhaps even this week. The Committee of Appropriations sets the specific expenditures by the U.S. government for projects in the WRRDA bill.

"I think the bill will pass," said Ruane. "They are going in several directions right now, and they might even tie the bill to the debt ceiling debate."

The U.S. Army Corps of Engineers (COE) last month agreed to reduce the freshwater releases down the Caloosahatchee that has resulted in dark, tea-colored water along Fort Myers and Sanibel beaches and extending several miles out into the Gulf of Mexico. Just this week, on Tuesday, the COE announced a further reduction in the daily releases and normal green water appears to be returning to Sanibel beaches.

Water management capital projects recommended for funding in WRRDA include the $580 million C-43 West Basin Reservoir in Hendry County. The federal government is being asked to pay $297 million of that cost. The reservoir is designed to hold 55 billion gallons of water from the Caloosahatchee River during the rainy season in order to prevent nutrient-rich fresh water from causing harmful algae blooms, killing seagrasses and oyster beds downstream in the estuary.

Raydel promised the delegation that his will not be the only voice heard if the bill passes and the COE causes any more delays.

"I was skeptical about the meeting at first," said Congress. "I didn't know if we could accomplish something or not. At one time there were 20 or so Congress members present during the meetings. We got to meet individually with six or seven in their offices, mostly Florida delegates. It was good for us to get this national exposure."

At Tuesday's Sanibel Planning Commission meeting, chair Michael Valiquette commended the Mayor and Vice Mayor.

"I think it was amazingly successful," Valiquette said. "I've been up there before and you guys are to be congratulated for a job well done and I think the educated approach by Kevin is the way to go."

Kiker spoke at the briefing and called the water quality situation an "ongoing environmental calamity."

"The Caloosahatchee River and the estuary in Lee County is essential to the overall health of our beaches and to a great extent our economic viability," he said. "A clean and healthy environment is one of the most critical cogs of the economic engine that drives Lee County in its No. 1 industry, which is tourism."

Kiker then related visitors in direct relation to employment in Lee County. County officials were reported to having spent more than $350 million to obtain 28,000 acres in putting land into conservation.

"Statistics have shown that over 90 percent of the people that visit come for beaches and clean water," he said. "We live in an instant information age, and the image of black water along the beaches in Lee County has spread around the world in seconds. Unfortunately, that image stays with us for a long, long time. We're a very resilient community, but we need action now."

Nocera said the event received a "lot of traction" with 24 members of Congress, Sen. Bill Nelson, U.S. House of Representatives Minority Leader Nancy Pelosi and several members of the Florida legislature in attendance.

"The room was packed," he said. "I think the fact that it happened while the government was shut down gave it the ability to garner more attention and that is why more members of Congress attended."

Fort Myers Beach Bulletin/Observer editor Bob Petcher contributed to this report.

http://www.captivasanibel.com/page/content.detail/id/522512/Mayor-thinks-DC-trip-will-get-results.html?nav=5051

Sanibel officials to get Lake 'O' briefing in Washington DC

September 27, 2013

Congressman Trey Radel, R-Southwest Florida, has invited leaders from Sanibel to a congressional fly-in and briefing on Oct. 3 in Washington, D.C., to provide testimony regarding the economic and environmental impacts of the Lake Okeechobee freshwater releases.

The Sanibel delegation participating in the briefing includes Mayor Kevin Ruane, Vice Mayor Doug Congress and Natural Resources Director James Evans. The discussion will take place from 9 a.m. to 12:30 p.m. in the Rayburn House Office Building and is being hosted by Radel and Congressman Patrick Murphy, D-Port St. Lucie, who represents the east coast areas impacted by the releases.

The meeting includes three panels to address federal, state and local issues, priorities and initiatives to address short and long-term relief efforts.

Mayor Ruane will testify regarding impacts to the local business community and tourism industry; the importance of passing the Water Resources Reform and Development Act (WRRDA) to provide federal funding for the C-43 West Basin Reservoir Project and other long-term solutions; and the need for the U.S. Army Corps and South Florida Water Management District to consider all short- and long-term storage options, including revisiting the LORS 2008 regulation schedule.

"We commend Congressmen Radel and Murphy for providing this forum," said Ruane. "Our focus of this trip is to convince our federal government to appropriate the necessary funding to implement the long-planned but too often delayed implementation of the capital projects that will truly solve the issues related to Lake Okeechobee freshwater releases."

The fly-in and briefing will be broadcast live on YouTube.

For more information, contact Sanibel City Hall at 472-3700.

http://www.captivasanibel.com/page/content.detail/id/522472/Sanibel-officials-to-get-Lake--O--briefing-in-Washington-DC.html?nav=5051