PPRODUCT ALERT!
We know Fannie Mae now requires a 4 year seasoning after a short-sale, however they have also made positive changes to their “prior derogatory credit event” policy. Improvements to the policy are as follows:
·
If a borrower
filed a bankruptcy and included a foreclosure in the bankruptcy, they can
qualify 4 yrs after bankruptcy discharge. (Prior
policy required 7 yrs after foreclosure and foreclosure date was based on Clark
County records).
·
If a borrower was
dismissed from a chapter 13 bankruptcy, they are eligible 2 yrs after dismissal
date. (Prior policy required 4 yrs after
dismissal)
· ***There is much discussion with regards to
“extenuating circumstances”. Once Fannie
provides more guidance, this could certainly allow for more borrowers to become
eligible for financing. Under the
“extenuating circumstance” policy, many economic events can be as recent as 2
years ago and the borrower can qualify for conventional financing.
Financial Markets
The Dow Jones ended the week at 17,279, and is up nearly 1,000 pts since August 7th. The US Dollar has also continued its run of gaining against other major currencies, as the US economy continues to outperform other nations' economies and the Fed attempts to wind down its quantitative-easing. The US Dollar ended Friday at a price of 1.28 against the Eruo.
Southern Nevada Real Estate Related Data
The unemployment rate dropped to 7.7% for the month of August, down from 8.2% in the month of July, and down from 10% in August of 2013. The construction sector led the way for job growth, followed by Professional and Business services. The rate is still considerably elevated with respect to the national average (6.1%), however, the rate is nearly half of what it was at the peak of the recesion, where the jobless rate reached over 14%., just less than 4 years ago. http://www.reviewjournal.com/business/economy/job-growth-helps-drive-unemployment-six-year-low
Home sales for Southern Nevada in the month of August continues
along a similar trajectory, with median prices up year over year (up 9.7%), and
activity slowing. 2,401 single family
home sales are down from July and from August of 2013. Inventory continues to climb, with 10,892
active listings being reported, which is up by over 700 from July and up nearly
2,000 listings from the same month last year.
Below is a great fact sheet from Chicago Title with regards to August
home sales in Southern Nevada. http://jamielewis.rereport.com/market_reports?formSubmit=1&searchtype=search&emailtype=search&period=1&area=113&cities=0&locations=0&yearmonth=2014-8&proptype=1&mailer=1&redirected=1
For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html
