Hi Everyone,
Here's some recent news on FICO scoring changes:
FICO ’08: What You Need to Know
Set to debut this year, FICO ’08 is the latest model for scoring lending risk from Fair Isaac, the industry‘s leading credit-rating firm. Experts are predicting that FICO ’08 could reduce default rates between 5 percent and 15 percent.
Here’s what to expect:
The new scoring system will go easier on consumers with one credit misstep and harder on those with multiple credit dings.
Authorized Users (AUs) are people with credit cards who are approved to make purchases but are not responsible for paying the balances. (A student authorized to use a parent’s credit card is an example of an AU.) Under current FICO scoring, the history of the credit card performance is reported on the AU’s credit record, thus influencing the score. But with FICO ’08, credit cards for which people have AU status will no longer influence their credit score. Therefore, AUs might consider changing their status on existing credit accounts from AU to Joint, or opening an account of their own to build their credit score.
High credit balances will deduct more points under the new system. More than ever, it’s important to lower balances on revolving credit accounts.
The new system will look favorably on consumers with various types of debt. For example, people with revolving and installment credit will fare better than those with nothing but revolving credit card debt.
FICO scoring will still range from 300 to 850. Customers can get a free credit report at annualcreditreport.com.
For more information, visit fairisaac.com.
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Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Friday, May 30, 2008
Wednesday, May 28, 2008
Lake Forest, Irvine, Laguna Woods residents
Hi everyone,
I am back in town (actually returned very late Saturday night). Apparently mortgage rates have been continuing to be unpredicable....rising and lowering on a daily basis. Home sales have dropped everywhere in the country except the West where is appears sales have increased 6.4% (CNN news). I still see multiple offers on well priced condos and homes.
More later
----------------------
Kristin Devlin
949.350.3771
Orange County Real Estate
I am back in town (actually returned very late Saturday night). Apparently mortgage rates have been continuing to be unpredicable....rising and lowering on a daily basis. Home sales have dropped everywhere in the country except the West where is appears sales have increased 6.4% (CNN news). I still see multiple offers on well priced condos and homes.
More later
----------------------
Kristin Devlin
949.350.3771
Orange County Real Estate
Friday, May 23, 2008
lake forest, mission viejo, laguna woods, Irvine residents
Is the Housing Market at the bottom? that seems to be the word in the inner circle. With many homes now experiencing multiple offers (largely bank owned) and often selling over the asking price this seems to be a real possibility!
__________________
Kristin Devlin
949.350.3771
Sunday, May 18, 2008
Lake Forest,Laguna woods, Irvine, Mission Viejo residents
Hi again,
It was off to the Cannes Film Festival and Monte Carlo this weekend for a bit of rest and relaxation. Cannes was packed with filmgoers and partyers with loads of both. it was interesting and fun but was glad to be back in my hotel in Menton.
Kristin
________________
kristin devlin
949.350.3771
orange county homes and real estate
It was off to the Cannes Film Festival and Monte Carlo this weekend for a bit of rest and relaxation. Cannes was packed with filmgoers and partyers with loads of both. it was interesting and fun but was glad to be back in my hotel in Menton.
Kristin
________________
kristin devlin
949.350.3771
orange county homes and real estate
Thursday, May 15, 2008
Lake Forest,Laguna woods, Irvine, Mission Viejo residents
Hi Everyone,
I've been working doing presentations overseas. When I have a few extra hours, I've been viewing homes here in France. With the declining value of the dollar, homes are very expensive (tres cher) even though the real estate market has declined 10% already. The weather has been cool and raining..not exactly what you expect this time of the year in southern france.
The Cannes film festival is next week so there has been a large infux of Americans this week.
More later.
Kristin
____________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
I've been working doing presentations overseas. When I have a few extra hours, I've been viewing homes here in France. With the declining value of the dollar, homes are very expensive (tres cher) even though the real estate market has declined 10% already. The weather has been cool and raining..not exactly what you expect this time of the year in southern france.
The Cannes film festival is next week so there has been a large infux of Americans this week.
More later.
Kristin
____________________
Kristin Devlin
949.350.3771
Orange County Homes and Real Estate
Friday, May 9, 2008
Laguna Woods, Lake Forest, Mission Viejo, IRvine, Orange County Residents HELP?
The House on Thursday passed a contentious foreclosure-prevention package, which still faces a veto threat from the White House and an uncertain fate in the Senate.
In a 266-154 vote - with 39 Republicans voting in favor - lawmakers approved a proposal, sponsored by House Financial Services Chairman Barney Frank, D-Mass., to let the Federal Housing Administration (FHA) insure up to $300 billion in new loans over four years if lenders agree to reduce the mortgage principal.
To qualify, the lender would have to cut the debt to no more than 85% of a home's current appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.
While 1.4 million loans are likely to be eligible for such a program, the Congressional Budget Office estimates such a measure would end up insuring 500,000 borrowers. The CBO estimates the FHA expansion program would cost taxpayers $1.7 billion.
"This bill is very time limited and limited in specifics to a subset of mortgages and meant to mitigate a market failure," Frank said during the floor debate on Thursday.
Opponents of the FHA expansion contend it's a bailout for lenders, investors and "speculators" who took on imprudent risk. And because participation in the program would be voluntary on the part of lenders, critics contend lenders would only unload their riskiest loans into the federally backed program.
Supporters note that the program is limited to loans for owner-occupied residents, not speculators. They also make the case that lenders and investors would be taking a loss on every loan, and that the borrower would be paying higher-than-usual premiums to the FHA to insure the loan and would share equity in their home with the government.
"No borrower who goes through this process will say at the end of it, 'Boy, that was fun. Where do I buy a ticket to get back on Space Mountain?" Frank said.
Supporters also say if the borrower still can't afford the loan when it's written down to 85% of appraised value, their loan won't qualify for the program. If the bill is a bailout for anyone, they say, it's a bailout for communities across the country, which suffer when home values and property taxes go down because of foreclosures.
Earlier on Thursday, the House passed a bill that would send states $15 billion to buy and fix up foreclosed properties - a measure the White House also opposes.
Frank's bill also includes elements intended to attract the support of Senate Republicans and the White House. Two key ones: modernization of FHA guidelines - for which both the House and Senate have already passed their own bills - and more stringent oversight of Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that guarantee the purchase and sale of home mortgages in the secondary market.
Nevertheless, late Tuesday, the White House issued a statement threatening to veto the bill in its current form. Analysts see the move as a tactical one intended to give Republicans more leverage in the negotiations.
That leverage is seen in the Senate, where Banking Committee Chairman Christopher Dodd, D-Conn., and ranking minority member Richard Shelby, R-Ala. are negotiating a housing package that could include GSE reform, FHA reform, and a Dodd FHA rescue proposal similar to Frank's.
When asked if Frank's proposal is something he could support, Shelby told CNN's Jeanne Meserve, "I'd have to evaluate it - how we're going to pay for it., what it's really going to do, do we really know if housing prices have bottomed out."
When asked if it was possible Congress would end up doing nothing, Shelby said, "The best of me says we ought to try to work this project out, see if we can have GSE reform, see if we can have FHA reform, and see if we can reach some kind of accommodation on housing
----------------------
Kristin Devlin
Orange County Homes and Real Estate
949.350.3771
In a 266-154 vote - with 39 Republicans voting in favor - lawmakers approved a proposal, sponsored by House Financial Services Chairman Barney Frank, D-Mass., to let the Federal Housing Administration (FHA) insure up to $300 billion in new loans over four years if lenders agree to reduce the mortgage principal.
To qualify, the lender would have to cut the debt to no more than 85% of a home's current appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.
While 1.4 million loans are likely to be eligible for such a program, the Congressional Budget Office estimates such a measure would end up insuring 500,000 borrowers. The CBO estimates the FHA expansion program would cost taxpayers $1.7 billion.
"This bill is very time limited and limited in specifics to a subset of mortgages and meant to mitigate a market failure," Frank said during the floor debate on Thursday.
Opponents of the FHA expansion contend it's a bailout for lenders, investors and "speculators" who took on imprudent risk. And because participation in the program would be voluntary on the part of lenders, critics contend lenders would only unload their riskiest loans into the federally backed program.
Supporters note that the program is limited to loans for owner-occupied residents, not speculators. They also make the case that lenders and investors would be taking a loss on every loan, and that the borrower would be paying higher-than-usual premiums to the FHA to insure the loan and would share equity in their home with the government.
"No borrower who goes through this process will say at the end of it, 'Boy, that was fun. Where do I buy a ticket to get back on Space Mountain?" Frank said.
Supporters also say if the borrower still can't afford the loan when it's written down to 85% of appraised value, their loan won't qualify for the program. If the bill is a bailout for anyone, they say, it's a bailout for communities across the country, which suffer when home values and property taxes go down because of foreclosures.
Earlier on Thursday, the House passed a bill that would send states $15 billion to buy and fix up foreclosed properties - a measure the White House also opposes.
Frank's bill also includes elements intended to attract the support of Senate Republicans and the White House. Two key ones: modernization of FHA guidelines - for which both the House and Senate have already passed their own bills - and more stringent oversight of Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that guarantee the purchase and sale of home mortgages in the secondary market.
Nevertheless, late Tuesday, the White House issued a statement threatening to veto the bill in its current form. Analysts see the move as a tactical one intended to give Republicans more leverage in the negotiations.
That leverage is seen in the Senate, where Banking Committee Chairman Christopher Dodd, D-Conn., and ranking minority member Richard Shelby, R-Ala. are negotiating a housing package that could include GSE reform, FHA reform, and a Dodd FHA rescue proposal similar to Frank's.
When asked if Frank's proposal is something he could support, Shelby told CNN's Jeanne Meserve, "I'd have to evaluate it - how we're going to pay for it., what it's really going to do, do we really know if housing prices have bottomed out."
When asked if it was possible Congress would end up doing nothing, Shelby said, "The best of me says we ought to try to work this project out, see if we can have GSE reform, see if we can have FHA reform, and see if we can reach some kind of accommodation on housing
----------------------
Kristin Devlin
Orange County Homes and Real Estate
949.350.3771
Thursday, May 8, 2008
Laguna Woods, Lake Forest, Mission Viejo, IRvine Residents
Hi Everyone,
Well the market has been really active this past month. Many homes have had multiple offers (I've lost a few to a higher bidder) and seemingly buyers are out there in droves! This isn't just in Orange County as I have clients who are resident in other California counties and they say they notice the same quick sales. Homes that are well priced sell and those that are not, sit many times for months! Buyers are intelligent and many follow the market so that they are aware of a good buy when they see one.
The key to a quick sale...price it right and it will be in escrow.
-----------------
Kristin Devlin
949.350.3771
ORange County Homes and Real Estate
Well the market has been really active this past month. Many homes have had multiple offers (I've lost a few to a higher bidder) and seemingly buyers are out there in droves! This isn't just in Orange County as I have clients who are resident in other California counties and they say they notice the same quick sales. Homes that are well priced sell and those that are not, sit many times for months! Buyers are intelligent and many follow the market so that they are aware of a good buy when they see one.
The key to a quick sale...price it right and it will be in escrow.
-----------------
Kristin Devlin
949.350.3771
ORange County Homes and Real Estate
Monday, May 5, 2008
Laguna Woods, Mission Viejo, Lake Forest, Irvine Mortgage Update
Good morning everybody,
Though the bond market took a beating on Friday, Conforming, FHA & even Jumbo rates dipped slightly this week. For yet another week... be sure to check out 80% LTV, 5/1 Interest Only Jumbo ARM loan at 5.725% to $1.5 Million!! Hey... prices continue to drop, and buyers are starting to take advantage of the bargains and are out there making offers!!
Each week new reports abound of how the Big Lenders are continuing to have problems! So far there doesn't seem to be any resolution.
-------------------------------
Kristin Devlin
Orange County News
Though the bond market took a beating on Friday, Conforming, FHA & even Jumbo rates dipped slightly this week. For yet another week... be sure to check out 80% LTV, 5/1 Interest Only Jumbo ARM loan at 5.725% to $1.5 Million!! Hey... prices continue to drop, and buyers are starting to take advantage of the bargains and are out there making offers!!
Each week new reports abound of how the Big Lenders are continuing to have problems! So far there doesn't seem to be any resolution.
-------------------------------
Kristin Devlin
Orange County News
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