@HousingWire | Economic Growth needs Securitization? Did this not cause the last Bubble?!

Securitization Machine!

Securitization Machine!

‪#‎MondayMorningCupofCoffee‬ by HousingWire | Did you know, For‪#‎Economic‬ ‪#‎Growth‬ we need more securitization?! Are you asking yourself, what is Securitization? Definition: “Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. A typical example of securitization is a mortgage-backed security (MBS), which is a type of asset-backed security that is secured by a collection of mortgages.” The Article by

@HousingWire can be read in it’s entirety here…

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House Flipper’s Beware…….

Buyer Beware!

Buyer Beware! (Photo credit: Wikipedia)

With the sudden spike in home prices reported not only in Nevada, around the country, the opportunities for “House Flipping” increase exponentially, especially for those that bought during the lowest point of the market, regardless if you were an investor or home buyer.  Remember, there are restrictions to flipping, not only for a FHA loan, Underwriter‘s for all Lenders for every type of loan instrument have their own internal guidelines that parallel the FHA limitations.

“Read Marcie Geffner’s entire article published by Barkrate.com”

FHA waives rule against house flipping

By Marcie Geffner • Bankrate.com

Anti-flipping waiver has some restrictions

“Buyers should be aware of the FHA’s limits on the anti-flipping rule waiver, which are as follows:

  • The home sale must be at arm’s length, which means there can be no close business or personal relationship between the seller and buyer.
  • If the price that the buyer agrees to pay for the home is more than 20 percent higher than the price the investor paid to purchase it, the sale will be subject to extra scrutiny to ensure that the value hasn’t been inflated.
  • The Home Equity Conversion Mortgage for Purchase program is excluded from the waiver. This program allows older homeowners to combine a reverse mortgage and a home purchase.
  • The 90-day time period might be shorter or longer than 90 calendar days due to the way the start and end dates are determined. The start date occurs when the sale is recorded. The end date occurs when the purchase contract is signed.
  • The waiver began Feb. 1, 2010, and will last one year, unless the FHA extends or withdraws it. The waiver can be withdrawn if there is a significant increase in defaults or mortgage insurance claims on FHA loans that were used to buy flipped homes.

Home buyers typically don’t encounter the anti-flipping rule until they’ve found a house they want to purchase and been told they can’t use a FHA loan unless the investor has owned the home for at least 90 days. Buyers who are concerned about this pitfall should ask when the investor purchased the home, what the sale price was and whether FHA financing will be allowed.”

One point we here at Platinum Elite Group want to point out regarding the “90-Day” Restriction is that, per a Lender, that it is not to close escrow, it is a restriction pertaining to the date of the Offer and Acceptance Agreement or as our source stated, “Date written not closed!”

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