Archive for August, 2010
Southern Region Newsletter, August 2010!
August 30th, 2010 | 
Author: 08August 2010 - Check out the link to The Southern Regions Newsletter for August! Enjoy!
Fed Finalizes Rules on Loan Fees
Newly released rules apply to mortgage brokers and the companies that employ them, as well as mortgage loan officers employed by depository institutions and other lenders.
It’s common in the industry for Lenders and loan originators to receive more compensation if the borrower accepts an interest rate higher than the rate mandated by the lender (referred to as a “yield spread premium”). With the new rule, the loan originator is not able to receive any payment that is based on the interest rate or other loan terms. This will avert loan originators from increasing their own compensation by raising the consumers’ loan costs, such as by increasing the interest rate or points. Nevertheless, loan originators can carry on receiving compensation based on a percentage of the loan amount – which is a widespread practice.
The Federal Reserve Board announced rules earlier this month to protect homebuyers needing mortgages. These rules will allow them to be able to avoid unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices. The new rule also prohibits a loan originator that receives compensation directly from the consumer from also receiving compensation from the lender or another party.
The Board found that consumers commonly are not aware of payments lenders make to loan originators and how those payments affect the total loan cost. New rules ensure that consumers who agree to pay the originator directly will not also pay the originator indirectly through a higher interest rate, causing them to indirectly pay more in total compensation than they realize.
Additionally, law prohibits originators from directing a consumer to accept a mortgage loan against there own interest to better compensate the loan officer. The rule is an effort to preserve consumer choice by mandating that consumers get a choice, and that they can choose from loan options that include the loan with the lowest rate and the loan with the least amount of points and origination fees, instead of those that maximize compensation.
The final rules are effective April 1, 2011. The entire Final Rules Document can be found at the Fed Rule Summary Site.
Golden Oak Luxury Residential Community by Disney
Artist Rendering of Golden Oak
Disney revealed a new luxury community with around 30 single-family residential homes for sale at the Disney World Resort in Orlando, Florida. The community, to be known as Golden Oak, will encompass an area spanning 980 acres and featuring custom homes between $1.5 and $8 million.
The luxury homes are being built in phases, and the first phase will have three options. Village Homes “will capture the romantic look of a Mediterranean village” on a quarter an acre lot of land according to Disney. Estate Homes will be on half an acre with “a variety of construction styles”; and Grand Estate homes, designed for big families, include sizes ranging up to three-quarters of an acre. The facilities will eventually include a private clubhouse, a planned Four Seasons resort, concierge services, full spa, and a golf course.
Disney is now taking refundable deposits, but have your check books ready – because they start at $25,000. The first homes are slated to be available in 2011, and the build out will is planned to include 450 homes.
More details can be found at:
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