Posted on: 16th Jan, 2007 03:58 am
2006 has been a challenging, yet successful year for the mortgage industry. The industry has witnessed ups and downs in all spheres; at the same time, it had come up with the launching of new and creative mortgage loan products. Besides, new laws have been introduced to improve the lending system and ensure higher protection for all consumers. Some of the top events in the mortgage industry for the year 2006 are:
Let's hope that 2007 turns out to be a better year with growing opportunities for borrowers such that they benefit from the industry and the laws being enforced for their protection.
- 50 year Mortgage introduced in California:
California mortgage industry introduced the 50 year mortgage which turned out to be a good alternative to Option ARMs and interest-only loans. The industry started off with a 5/1 year hybrid ARM which is later on converted into a 50 year loan. Know more...
- Mortgage Accelerator program launched in USA:
A special type of loan program based upon a product launched in UK and Australia. It involves borrowing against home equity and using the borrower's paycheck to pay off the mortgage within a short time. Know more…
- Mortgage insurance premiums tax-deductible for 2007:
The government introduced a new law allowing for tax deduction on mortgage insurance premiums. But the law is effective from this year itself and is applied on mortgages and refinance loans (up to the value of the original loan) taken out this year itself. Know more…
- New law for Maryland loan originators:
Maryland mortgage industry came up with a new law for loan originators. The law made effective from January 1, requires that mortgage originators should have proper license before they are employed by mortgage brokers. However, loan originators working under banks and licensed brokers do not come under this law. In details…
- No rise in Conforming loan limit:
The maximum 2007 conforming loan limit for single-family home loans purchased by Freddie Mac and Fannie Mae was declared to remain the same (that is, 417,000) as in 2006. If average home price in October 2006 is less than that of October 2005, the maximum conforming loan limit for 2007 will remain unchanged as stated by the Office of Federal Housing Enterprise Oversight. Know more from the National Association of Home Builders
- Higher FHA loan limit for 2006:
The HUD announced that FHA will insure single family residential mortgage for a loan limit 15% higher than the previous year. The new loan limit was set up in accordance with the rising home prices. Know in details from Originator Times.
- National Licensing system for mortgage professionals:
The Conference of State Bank Supervisors (CSBS), the American Association of Residential Mortgage Regulators (AARMR) and the industry joined hands to develop a uniform licensing system for each state mortgage regulator. The system ensured greater protection for consumers. Know more from Originator Times.
- Expanding American Homeownership Act:
This Act was passed with the aim to increase homeownership opportunities for low and moderate income families. The Act was intended by the FHA to offer a variety of down payment options, develop a new insurance premium structure and increase and the FHA loan limit. Know in details from Originator Times
Let's hope that 2007 turns out to be a better year with growing opportunities for borrowers such that they benefit from the industry and the laws being enforced for their protection.
The move to introduce 50 year mortgage is very credible. It has become an alternative to options adjustable rate mortgages and interest only loans. Introduction of such a loan was long anticipated in the market.