Texas leads nation in FHA-backed home loans

10:49 PM CDT on Thursday, June 19, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Texas continues to lead the country in the volume of home loans insured by the Federal Housing Administration.
And Fort Worth and Dallas still have some of the highest volumes in the country, FHA Commissioner Brian Montgomery said Thursday while visiting Dallas.
"Dallas is the No. 3 county for FHA volume in the entire country," he said.
"Tarrant County is the No. 1 county for the whole country for FHA."
With the shakeout in the mortgage industry, federally backed FHA loans have dramatically increased in volume.
These mortgages provide consumers with long-term, fixed-rate financing insured by the government.
FHA market share has jumped from about 3 percent in 2005 to about 12 percent.
"Our volume in Texas for the first quarter of calendar year 2008 was up almost 90 percent from the previous one," Mr. Montgomery said.
"This is the state with the largest FHA volume, which we thought was a pretty amazing statistic."
He was in Dallas to tour Bank of America's regional government lending center.
Since 2005, Bank of America has increased its FHA and Department of Veterans Affairs loan business from around $800 million annually to an anticipated $5 billion this year.
Fundings from the Dallas office – which employs about 150 – were up 35 percent in May compared with the same month last year, according to Bank of America.
Bank of America is the fourth-largest producer of FHA-backed loans in the country, according to bank officials.

"I certainly see that the FHA market is going to be strong for 18 to 24 months," said Allen Jones, who heads the bank's government lending program.
"We will look to continue to grow our FHA capacity."
Bank of America early this year converted a wholesale loan operation it had in downtown Dallas into the FHA-VA loan-processing center.
Dallas was chosen because the bank identified Texas as a key market for FHA-VA lending, Mr. Jones said
He said the FHA will continue to be a major player in the U.S. loan market until credit conditions stabilize.
"At a point in time those who are sitting on the sidelines today will gain comfort and come back into the market," Mr. Jones said.
The overall U.S. housing market still has a long recovery period ahead, Mr. Montgomery said.
"I don't see it getting dramatically worse, but I still think it's 2009 or maybe 2010 before you see it mostly stable," he said. "In Texas and parts of the South, you are seeing things start to get a little better."
As much as 45 percent of the loans the FHA insures are people refinancing from mortgages – including subprime loans with rising interest rates, causing the payments to increase.

"FHA has been there for them and softening the crash," Mr. Montgomery said. "Unfortunately, we are not going to be able to save everyone.
"A lot of these loans should have never been made in the first place."
The FHA currently insures almost 5 million U.S. home loans.
Since September 2007, the FHA has provided more than $76.1 billion in mortgages.
The number of FHA-based refinancing loans is up threefold from the same time last year, he said.
"We've had 230,000 new FHA refi customers since last October," Mr. Montgomery said.
"The vast majority of those were subprime."

How to Keep Your Focus Despite Summer Attractions/Disctractions...

One of the greatest things about being in Sales, and especially Real Estate Sales, is the flexibility of your schedule. For many, this is one of the most appealing factors in their decision to go into this industry. With that comes a certain responsibility to both your company and yourself. And as we arrive at the start of summer already (where did the time go!), a definite amount of self-discipline needs to be put forth in order to keep focused on being the best performer you know you can be. Summer can be riddled with distractions and temptations. With a few short tips, you can keep your eye on the ball and have fun, too!
Everyone knows that they need to stay focuses and remain hungry for success, even in the summer. But knowing and doing tend to be two different things for many people. In fact they can be polar opposites. So even though you may know this, just think of it as a little refresher to keep you on track and strengthen your resolve.
For most of us, summer presents limitless opportunities for outdoor activities. Everything from picnics, running, golf, swimming, walking, relaxing or just worshipping the sun…and so many more. These are wonderful ways to spend our time and enjoy ourselves, but it has to be kept in mind that there is a time and place for all of this fun, and we need to be very smart about it.
Self-Discipline. Self-Control. Focus. These are the things that will separate you from your competition this summer. Those who don’t have the same commitment as you will wind up late in August complaining about how slow the summer was. If you do what you’re supposed to, you won’t be partaking in that conversation.
When it’s time to play, play and have a great time. Do what you love to do. Have fun. Have adventures. Relax. Whatever it is, do it and enjoy it fully. When it’s time to work, get to it and get results. Don’t just go through the motion, like showing up where you’re supposed to be, but wishing you were somewhere else. That type of approach is not only transparent to other people but it’s cheating yourself and your clients. Winners are those who do what they’re supposed to do, and more, with an attitude of expectation and purpose. They engage those around them and success is never far away.
This awareness of your mental focus and mindset is very powerful and the timing couldn’t be better right now. This realization is key to being at the top of your game this summer. In addition, here are 5 things you can do to give yourself and edge this summer (as the competition starts “happy hour” earlier and earlier each week):
Revisit and Keep Fresh in your mind the Goals you set for yourself at the start of the year.
-Many people start off the New Year like gang busters, being attentive to their goals, but after a few months that excitement and attention can fade. Get back to them and re-commit.
Keep visual “Focus” reminders nearby and in plain view.
-Whether it’s post-it notes on the side of your computer monitor with motivational reminder or it’s pictures of that Porsche SUV as the background of your cell phone, find visual reminders that say to you, “This is what we’re fighting for.

Daily Practice
-Start off your day with a plan before you even set foot out the door. This will develop consistency and train your mind to set goals each day that build on one another.
Exercise
-Yes we had to sneak this one in there! You already know it increases your energy and makes you feel better…along with a multitude of other benefits. It also builds a habit of doing and that translates into other areas of your life. It lets you mind know that laziness of any kind will not be accepted.
Commit
-Set out to have a terrific summer with lots of fun and realize how much more enjoyable it will be with tremendous Sales numbers to back it up.
Remember, the summer should be fun and one of the most exciting times of the year. But if it’s all fun and no productivity, there will come a time when you regret the summer and you’ll be playing catch-up in the Fall. It doesn’t have to be that way. Having a plan to succeed in the summer is a powerful idea for successful people, and one that will surely benefit you and your company. Stay Confident, stay Motivated, stay Focused and have a memorable summer full of Great Times and Abundant Sales!!!

*Source: Mind Body & Sales for the Real Estate Professional 6.08

FHA Updates...

“Did you know that FHA financing is quickly becoming one of the most utilized mortgage product in the marketplace today? In fact, the FHA Commissioner’s office recently announced that they project FHA loan originations to increase by 168% in 2008. This is due to a number of factors:
1) FHA loan limits have been raised to $271k in our area
2) FHA still allows a low 3% total investment by the buyer
3) FHA still allows for approved down payment assistance programs such as Genesis and Nehemiah Gifts
4) FHA’s credit requirements are much softer than fanniemae conventional at this point and
5) FHA offers some of the best rates/terms in the marketplace today.

To learn more about how FHA can bolster your business, come by my office to discuss!”
tricia

How Can a Real Estate Agent Help Me?

Whether you’re in the market for a primary residence, an investment property or a second home, purchasing real estate involves many important considerations and decisions. A real estate agent can provide the focus, due diligence and expertise needed to help you find the home of your dreams.



A real estate professional will:


Assist in determining how much house you can afford and help you get prequalified or preapproved for a loan.
Simplify your search by helping you define home and neighborhood criteria.
Screen new listings daily and alert you of homes that match your criteria.
Keep you abreast of local market conditions, so you can make informed decisions.
Gather in-depth detail on each home, schedule tours and point out the advantages and possible drawbacks of each property.
Work with you in drafting an appropriate offer and serve as your representative when presenting it to the seller.
Negotiate a contract that considers your goals and leads to a successful closing.
Personally refer you to proven service providers, such as inspectors, appraisers, title companies, warranty providers, insurance agencies, attorneys, carpenters, movers and more.



IMPORTANT TO NOTE: Real estate professionals can represent the buyer, the seller or both. When agents represent both parties, it is called dual agency. In some states, dual agency affects the real estate professional’s fiduciary responsibilities to the seller. Keep in mind that real estate laws differ from state to state and even from locale to locale. For more in-depth answers, talk with a knowledgeable real estate professional and ask about local practices.