By Dennis Norman, on October 8th, 2015 Since the real estate market bubble burst in 2008, the number of foreclosed homes that the U.S. Department of Housing and Urban Development (HUD) has had to manage and sell to investors and new home owners has increased significantly, averaging around 100,000 homes sold per year and hitting a peak of 111,416 HUD homes sold during fiscal year 2013. As a result, HUD has proposed several changes with regard to the disposition of REO properties, or, in plain terms, how they sell HUD homes. According to HUD, these changes “seek to provide greater efficiency in the administration of HUD’s property disposition program for REO properties….and provide flexibility in anticipation of future changes to the property disposition program for REO properties.”
Highlights of Proposed Rule Changes By HUD With Respect To The Disposition, or Sale of HUD Homes:
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Continue reading “Rule Changes For HUD Home Sales Proposed By HUD“
By Dennis Norman, on August 8th, 2013 
That’s right, along with very affordable home prices, Missouri also has almost the lowest closing costs in the nation at an average of $2,188 for lenders’ origination fees and third party fees, second only to the state of Wisconsin with average closing costs of $2,119, according to the 2013 closing cost survey by Bankrate.
See table below for survey results for all states:
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One-third of Homebuyers Surveyed Are Ill-prepared to Get a Mortgage
 Tyler Frank,
Paramount Mortgage
NMLS ID 942420 According to a survey recently conducted by Zillow, many homebuyers are really not armed with the information they should have before attempting to obtain a mortgage. For example, over one-third (34 percent) of the prospective homebuyers surveyed did not know that a qualified borrower can obtain a home loan today with less than a five percent downpayment.
In addition, many homebuyers have misinformation that can prevent them from obtaining the best possible mortgage interest rate. For example, 26 percent of the homebuyers said they thought they were obligated to obtain their home loan with the lender that pre-approved them, and 24 percent believed that all lenders are required to charge the same amount for credit reports and appraisals.
Continue reading “Survey Shows One-Third Of Homebuyers Lack Info Needed To Get Mortgage“
By Dennis Norman, on October 10th, 2012  REALTORS® surveyed by the National Association of REALTORS® (NAR), say that low valuations on appraisals are causing their seller’s problems ranging from delaying the sale to renegotiating the price to even killing the deal. Of the REALTORS® that responded, 11 percent say a low valuation on an appraisal cost their seller a sale in the past 3 months, 9 percent said it caused a delay to a sale and 15 percent said a low appraisal resulted in the seller having to renegotiate and agree to a lower price. Continue reading “Low appraisals killing home sales or causing sellers to agree to lower price“
By Robert Fishel, on September 5th, 2012 
During periods of economic growth, when home values are typically going up, most homeowners do not question appraisals much. In times of turmoil when property values are declining, home owners/sellers and even listing agents quite often question appraisals.
An appraiser is looking at several things when determining the value of a property: improvements, size and square footage of the living area, neighborhood amenities, location and the market trends around the area. It all boils down to comparable sales to the subject property.
Since the appraised value of home is a key element when considering a purchase or refinance, the following are the top four most common questions about appraisals asked by sellers: Continue reading “The Top Four Appraisal Questions Sellers Ask; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on June 28th, 2012 The sale price for a house is $200,000, but the appraisal comes back at $190,000. Should the borrower still try to purchase this property or just leave it be? This is not unusual circumstance common in today’s real estate market; appraisals are coming in conservatively.
What action should the borrower take when there is a mismatch between the seller’s asking price and the home’s appraised value? Remember, the maximum loan amount is based upon the lower of the sale price or the appraised value, whichever is less. Continue reading “What to do about a low appraisal?; St. Louis Mortgage rate update“
By Dennis Norman, on October 31st, 2011  You would think after what we have seen happen in the housing market during the past 5 years, especially in the area of falling home prices, that home buyers today would not have lofty expectations about a home they buy appreciating, but apparently many do. According to a recent survey Zillow, 42 percent of prospective home buyers believe home prices typically appreciate by 7 percent a year. Continue reading “Almost half of prospective home buyers unrealistic about home value appreciation“
By Dennis Norman, on July 20th, 2011  Today’s existing home sales report from the National Association of REALTORS® shows existing home sales in June were at at a seasonally adjusted-annual rate of 4.77 million units which is a decrease of 0.8 percent from the month before, a decrease of 8.8 percent from a year ago and is the lowest rate of home sales since November 2010 when it was 4.64 million. Continue reading “Existing home sales drop in June; ‘Actual’ home sales highest in 12 months“
By Dennis Norman, on May 19th, 2011
St. Louis existing-home sales in April were down 30.1 percent from a year ago, after the prior month’s sales were down 20.3 percent from the year prior. This disturbing trend points to a decrease in the number of home sales in St. Louis in 2011 from 2010, even though industry experts are predicting an increase in U.S. existing home sales this year over last. Continue reading “St. Louis Home Sales Down Over 30 percent in April; Worst decline of 20 major metros“
By Dennis Norman, on March 21st, 2011 Today’s existing home sales report from the National Association of REALTORS® shows mixed signals for the St. Louis Real Estate market as our rate of existing home sales is down 8.6 percent from a year ago, significantly higher than the 2.8 decline for home sales nationwide, however, on a positive note, St. Louis home prices were up 8.2 percent in February from a year ago, the highest increase of the 20 major metro markets covered by the report and much better than the 5.2 percent DECREASE in home prices for the U.S. as a whole!
Continue reading “St. Louis Existing Home Sales Rate down 8.6 percent in February; prices up 8.2 percent“
By Dennis Norman, on January 14th, 2011  You finally reach a deal with a buyer to sell your house, or strike a deal with the seller of your dream home, only to see the deal fall apart later when the house doesn’t appraise for the price that has been agreed upon…what are you to do? This is a plight that has become all too common today for many buyers and sellers. Why? Several reasons….appraisers have, after being blamed by many for causing or contributing to the downfall of the housing market, understandably so become cautious and somewhat conservative when putting a value on a home today. Not to mention, since about a third of the home sales are distressed sales and prices are still falling somewhat in many markets, the “value” of a home is a moving target.
What can home sellers and buyers do to avoid appraisal problems? Continue reading “Tips to Avoid Appraisal Problems“
By Dennis Norman, on December 28th, 2010 It seems we always need to find someone to blame for our problems…
When it comes to the meltdown in the housing market that has taken place over the past three years there has been no lack of finger pointing by many inside and outside the industry as to factors that either caused or contributed to the collapse of the housing market. Sub-prime lending, Wall Street, mortgage fraud, the mortgage industry, banks, community reinvestment act, real estate brokers and agents, fannie mae, freddie mac, federal government over-regulation, federal government under-regulation, appraisers, unemployment, the economy in general, “flipping”, sellers, buyers and more have been blamed in one way or another for the collapse. In my humble opinion and, based upon my 30+ years of experience in the industry, I would say all the aforementioned played a part in the collapse and certainly no one thing could have caused this mess on its own, it was a combination of several things that led up to the “perfect storm”. Continue reading “Making Appraisers the Scapegoat“
By Robert Fishel, on November 17th, 2010 
Obtaining a mortgage to buy a home, or to refinance an existing mortgage, can sometimes be a little intimidating to borrowers, but it needn’t be. Granted, this is something the typical person only does every few years at most and regulations continually change the process, but that’s where lenders such as myself come in to the picture, to provide you the info you need and to guide you through the process. Continue reading “Mortgage Loans 101 and St. Louis Mortgage Rate Update“
By Dennis Norman, on November 5th, 2010
- Dennis Norman
The National Association of REALTORS Pending Home Sales Index for September shows a decrease of 1.8 percent in the index from the month before (seasonally adjusted), and a 24.9 percent decrease from a year ago. Continue reading “Pending home sales drop slightly in September“
By Dennis Norman, on October 29th, 2010  Dennis Norman Now that the controversial (to put it mildly) Home Valuation Code of Conduct (HVCC) has been put to rest as part of The Dodd-Frank Wall Street Reform, Fannie Mae has released their “Appraiser Independence Requirements“. Fannie Mae says the purpose of these requirements is to:
By Frank Gregoire, on September 13th, 2010  Frank Gregoire My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was completed through examination of paper and microfiche records. We went through Polaroid SX-70 film packs by the case and always kept a spare camera or two in the back seat or trunk of the car. Life was good. The appraisal profession, at least here in the Sunshine State, was one coveted by many. Continue reading “H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers“
By Paul Collins, on August 18th, 2010 Editor’s note – Last month we published an article about HVCC which drew quite a few comments and responses….one such response was from veteran appraiser Paul Collins in which he shares his frustration with the state of the industry and the impact of lenders and legislation on his industry. Our thanks to Paul for allowing us to publish his thoughts..
The good ole days of direct communication and the new day we are “living” both have the same problem. Appraisers are not a valued part of the process because there are no consequences for bad lending decisions. The last time a bank valued a competent appraiser was when the local bank kept the paper and was responsible for collecting and foreclosing if that loan went bad. A real and legitimate understanding of the actual value of a property played a part in a thoughtful consideration of the overall loan application. (It even included the capacity and willingness of the borrower to repay the loan! What a concept!) Continue reading “HVCC, AMC’s and the Appraisal Industry; a view from the inside“
By Robert Fishel, on July 14th, 2010
The mortgage industry has underwent some dramatic changes in the past year as has the regulations and rules the industry must comply with. Lender’s are barely able to keep up with everything new so it’s not surprising home-buyers have many questions when it comes to obtaining a mortgage to buy a home. Therefore, I thought I would take this opportunity to provide a list of questions that a home-buyer should ask their lender that I think will be helpful. Oh, and since I am a loan officer in St. Louis, I did take the liberty of giving my answer to these questions :)
Q: Are you a Banker or a Broker?
A: Mortgage Bankers are companies that fund their own loans with their own money. Mortgage Brokers rely on a third party to make the transaction happen. Paramount is a Mortgage Banker – no delays for closing – we’ll be there with the check!
Q: How can I help the transaction along?
A: Your responsiveness can make a difference in meeting the closing date. Please return any requested paperwork to Paramount as soon as you can. Schedule inspections as quickly as possible to allow for any maintenance that may be required.
Q: Who makes the decision on my loan?
A: We have staff underwriters for FHA, VA and Conventional loans, so we are able to make credit decisions quickly and in-house. Paramount is a locally owned and operated independent mortgage company. Most of our employees are native to St. Louis so we understand the nuances of our town.
Q: Will I need Mortgage Insurance?
A: Mortgage Insurance is required on all loans with less than 20% down to cover the lender in case of default. Private Mortgage Insurance (PMI) for conventional loans can be paid monthly or financed through the term of the loan, while FHA loans have an up front fee as well as a monthly premium. Another option is a Combo Loan – a first and second mortgage – to avoid a PMI premium.
Q: How is my home value determined?
A: Paramount uses certified appraisers with decades of experience and a thorough knowledge of the industry and metropolitan area. To ensure the integrity of valuation we do not accept appraisals from non-certified or non-approved appraisers.
Q: When do I lock in an Interest Rate?
A: First you need a signed real estate contract and a firm closing date. You will lock in your rate once the loan program is determined and you are satisfied with the rate available. We recommend locking in quickly to avoid any potential upswing in the market.
Q: Will I get the best rate possible?
A: You will get the best loan program – including rate, APR and terms – for your needs. We evaluate your current financial situation and where you anticipate you will be down the road to determine what the best program will be for you and your unique needs; down payment assistance, limited documentation, lowest monthly payment, minimize PMI exposure, etc. More than rate determines the best loan for the buyer.
Q: Who will be at the closing?
A: Paramount will be there! Typically the borrower and anyone on the loan papers and your realtor attend closing. Paramount is at every closing delivering the closing documents and check which could save you on title company charges.
If you have more questions or would like additional information feel free to contact me using the contact information at the bottom of this post.
St. Louis Mortgage Interest Rates – July 14, 2010 *
- 30-year fixed-rate mortgage 4.50% no points
- 15-year fixed-rate mortgage 4.125% no points
- 5/1 adjustable rate mortgage 3.50% no points
- FHA/VA 30-year fixed rate mortgage 4.75%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on November 2nd, 2009  Lawrence Yun, Chief Economist, NAR Today the National Association of REALTORS(R) issued their Pending Home Sales Index Report for September showing pending sales in the U.S. rose again for the eighth consecutive month – marking the longest streak since since NAR began the pending home sale index in 2001. The pending home sales index for the US rose 6.1 percent from August. Here in the Midwest the pending home sales index rose 8.1 percent from August marking the third month in a row the index in the Midwest increased.
As I have expressed previously, I’m somewhat cautious about getting too excited about these recent encouraging reports on the housing market as I feel we still have many challenges out there.
- Dennis Norman
For starters, the home-buyer tax credit, which was stimulated home sales in the past couple of months, is set to expire the end of this month. Congress may extend it and if so that will be another shot in the arm for the housing market however we are still seeing nearly record numbers of foreclosures and mortgage delinquencies which are going to continue to put downward pressure on the market. The nearly 10 percent unemployment rate isn’t helping either. Continue reading “Pending home sales in midwest rise 8.1 percent in September“
By Dennis Norman, on August 31st, 2009
- Dennis Norman
A surge in litigation tied to real estate appraisals, loan modifications and foreclosures contributed to a 54 percent increase in mortgage-related lawsuits, according to the second quarter Mortgage Litigation Report from MortgageDaily.com.
During the second quarter, 125 cases were tracked, jumping from an already active 81 first quarter cases. The second quarter of 2008 had just 42 cases. Continue reading “Appraisal, Loan Modification and Foreclosure Lawsuits Soar“
By Dennis Norman, on August 7th, 2009 Dennis Norman By: Dennis Norman
Earlier this week I did part one , and yesterday part two of my E-View with Carole Baras, CRS, GRI, ePRO, the 2009 President of the St. Louis Association of REALTORS(R) to get her take on the St. Louis real estate market.
Today I’ll pick up where I left off and complete my E-View with Carole:
 Carole Baras, 2009 President, St. Louis Association of REALTORS(R) Dennis – Carole, What do you feel are the best opportunities today for buyers in St. Louis?
Carole – Buyers that are looking to purchase a home and are first time buyers have NEVER had the opportunity they have today. A GIFT of $8,000 (the first-time buyer tax credit) is unheard of in the past and first time buyers really need to take advantage of this offer. Continue reading “St. Louis Association of REALTORS(R) Presidents’ view of the market – Final Post of the series“
By Dennis Norman, on July 17th, 2009  Dennis Norman By: Dennis Norman
Since going into effect May1st the new Home Valuation Code of Conduct (HVCC) has caused controversy, been blamed for killing sales and seems it has everyone up in arms.
In late June I did a post on another blog about a bill, H.R. 3044, that was introduced in the U.S. House of Representatives that, if passed, would put an 18 month moratorium on HVCC.
The bill was introduced by Representatives Travis Childers and Gary Miller. Since being introduced the bill is gaining some support and momentum. As of today there are 22 cosponsors that have signed on to the bill. So far none of the representatives from St. Louis (or Missouri for that matter) have signed on yet but hopefully their support is forthcoming.
To see the representatives that have signed on as co-sponsors please click here.
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