Today’s homebuyer is limited to borrowing 9.7% less mortgage money than a year earlier due to higher interest rates alone.
Despite Q4 2023 FRM rate slippage, Buyer Purchasing Power remains negative
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Real Estate Finance
Develop your understanding of the relationship between mortgage holders and owners through a review of notes, trust deeds, and their provisions and foreclosure procedures.
Stay current on the latest news, videos, forms, and updates for Real Estate Finance
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Appraisal rules for high-priced mortgages
A Section 35 higher-priced mortgage loan classification triggers certain appraisal report requirements.
Form-of-the-Week: Personal Property Inventory, and Security Agreement For Note Secured by Personal Property — Forms 256 and 436
These forms are used by a seller’s agent or escrow officer when preparing a purchase agreement or counteroffer for a real estate transaction when the transfer of personal property is included and when on a carryback sale the price includes the transfer of personal property which together with the property sold will be security for the carryback note, to grant the seller a security interest in the personal property.
Agents pivot as the economy teeters on the edge of recession; Monthly Statistical Update (January 2024)
California job additions continue; Job growth contracts; The yield spread forecasts the next recession.
Section 32 disbursements, servicing and modification restrictions
Learn the ten prohibited lender actions which protect the borrower after origination of a high-cost (Section 32) consumer-purpose mortgage.
The points and fees test for Section 32
Learn when a consumer-purpose mortgage falls under Section 32 limitations and disclosure rules.
Form-of-the-Week: Further Encumbrance Consent, and Note Enforcement Provisions — Forms 410 and 418-5
These forms are used by a prospective junior lender or carryback seller when the real estate is encumbered by an existing first mortgage containing a due-on clause, to obtain consent from the lender holding the mortgage to further encumber the property with a second mortgage, and by a loan broker or escrow officer when originating a mortgage with the lender or carryback seller, to include a guarantee, exculpatory or governing law provision in the promissory note.
Paying appraisers
Fee appraisers are to be compensated by mortgage lenders and their agents at a reasonable rate – but there are exceptions that effectively gut this rule.
Mortgage delinquencies inch higher, equity shields homeowners — for now
Even as mortgage delinquencies rise, high levels of equity continue to shield homeowners from foreclosure.
Errata & Updates
06/25: The 2025 rules for buyer representation and fee-splitting avoidance are currently being edited into this e-book.