Category: Financing

PreScreen Opt-Out

Posted on by Emily Gregory

Under the Fair Credit Reporting Act, Consumer Credit Reporting Agencies can share lists that contain the information of people who had recent credit inquiries, such as with mortgage applications. Companies, and sometimes individuals, purchase those lists with the intention of soliciting and selling additional credit and loan services, known as “Firm Offers”, to the unsuspecting borrower.

These solicitations start quickly and continue even after the loan has closed. Many borrowers would prefer not to receive the extra “junk” mail or sales calls, and fortunately, there is an easy fix!

  • Visit www.OptOutPrescreen.com to opt out. This prevents the Consumer Credit Reporting Companies from providing your credit file information for Firm Offers.
  • You can choose to opt out for five years, or permanently.
  • If you ever change your mind, you can also visit this site to opt in and receive eligible offers again.

You should be able to choose whether you want your information shared with potential solicitors as a result of your mortgage application. That’s why at First Home Mortgage, we know the importance of sharing this information with all our clients, to ensure you know your rights under the Fair Credit Reporting Act.

Please reach out to one of our loan officers if you have any questions!

FHA Revises Condominium Requirements

Posted on by Emily Gregory

After a long-awaited update, the FHA is finally issuing a change to condominium guidelines. It was announced Wednesday that spot approvals are back, and steps are being taken in order to loosen eligibility requirements. With these revised guidelines, FHA is expecting the update to qualify an additional 20,000-60,000 condo units per year.

Changes that will come with the new guidelines include extending the re-certification deadline for approved condo projects from two years to three and loosening restrictions on owner-occupancy rules allowing projects to just be 50% owner-occupied. Department of Housing and Urban Development Secretary, Ben Carson, is hopeful the updated guidelines will open doors and allow more opportunities for homeownership. “FHA is publishing a new rule in the Federal Register that we believe will offer significantly more options for individuals and families to buy a home, specifically the kind of home more and more people are looking for in order to achieve homeownership, and of course that is a condominium,” Carson stated. Out of the 150,000 condo projects across the country, just 6.5% have approved financing through FHA.

The National Associations of Realtors has been advocating for change in FHA requirements for over a decade and stated they are thrilled with the change and the opportunities that will now be available to prospective homebuyers. NAR President John Smaby stated, “This ruling, which culminates years of collaboration between HUD and NAR, will help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people.”

The updated guidelines will take effect on October 15, 2019.

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