The Federal Trade Commission (FTC) estimates that as many as 9-10 million Americans have their identities stolen each year. This means that you or someone you know may have been victimized by some form of identity theft in the past or will likely experience some form of this crime in the future.

Identity theft occurs when personal information, such as your Social Security number or credit card numbers, are used without your permission to make purchases, obtain a credit card or other account in your name.

Identity theft costs the average victim nearly $4,000 and, more importantly, 175 hours of personal time to straighten out their problems and their credit. This does not include any potential increases in interest rates from creditors and insurance companies, where the financial impact can be even more dramatic, especially if the theft is left undetected. According to the FTC, it takes an average of 12-24 months for most consumers to even notice that a problem exists. And by then, it’s too late. How can you protect yourself from the dangers of identity theft? Stay tuned and I will post some ideas of what you can do to protect yourself.

On March 6, 2012, FHA announced a decrease to the Upfront and Annual Mortgage Insurance Premiums on certain streamline refinance transactions. This will make the prospect of an FHA refinance much more attractive, as homeowners will no longer be subject to the higher premiums in place today. FHA estimates that, as a result of this decrease, some borrowers may be able to save as much as $3,000 a year!

There are two important dates to keep in mind:

1. This initiative applies to FHA borrowers who secured a loan on or before May 31, 2009
2. This initiative is effective for loans that will be originated on or after June 11, 2012

This is an incredible opportunity that can provide significant savings.

FHA recently announced several changes that will impact underwriting in several areas. These changes are effective April 1, 2012.

Here’s a quick summary of these changes:

For self-employed borrowers: P&L statements are now required if the last business tax return is more than 3 months old; in addition, statements must be audited if P&L income is greater than the two year average, and the higher income is needed for qualification purposes. If the two year average income is sufficient for qualification purposes, the P&L is still required, but does not need to be an audited one.

For loans with disputed accounts that receive an “Accept” by TOTAL: These are not required to be referred to a DE underwriter for review as long as the total amount of combined balances (1) does not exceed $1,000 and (2) the dates of last activity are older than 2 years. If singular or combined balances total more than $1,000 they must be paid in full at or prior to closing, or provide proof of payment arrangements with 3 months of payments verified.

For collection accounts: If the total balances of all collection accounts are less than $1,000, the borrower is not required to pay them off as a condition of approval. If singular or combined balances total more than $1,000 they must be paid in full at or prior to closing, or provide proof of payment arrangements with 3 months of payments verified. Judgments must be paid unless payment arrangements have been made and 3 months of payments are verified.

For definitions: The following are now included in the definition of family member for the purposes of Identity of Interest transactions: Brother, Stepbrother, Sister, Stepsister, Uncle, and Aunt.

You may have heard talk in the news lately regarding some increases FHA is making to both its upfront and annual mortgage insurance premiums. I wanted to reach out to you and let you know why FHA is doing this… and what this could mean to you.

It’s important to understand that mortgage insurance premiums for new purchases and regular refinances are increasing to help keep FHA financially strong. FHA’s cash reserves hit a record low of $2.6 billion last year – and since approximately one-third of all residential home loans in the U.S. are FHA loans, it is important for FHA to be in a strong position.

So what does this mean to you? FHA case numbers assigned after April 9, 2012 will be subject to the higher mortgage insurance premiums.

See If You Can Benefit

On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.

Some of the major changes under HARP 2.0 include:

No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.

Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.

Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.

These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.

It’s also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

http://www.freddiemac.com/mymortgage
http://www.fanniemae.com/loanlookup/