Saw these couple things in the news this week…
First, the Obama administration’s announcement that its Home Affordable Refinance program maximim loan will increase to 125% of a property’s loan-to-value ratio up from 105%. Here’s some coverage of the announcement and the release from HUD Secretary Donovan. Ho-hum is mostly my reaction…why do we want people owing 125% of an asset? Practically the rising interest rates over the last couple months have slowed refinance activity. This is unscientific but from one closing in early May to a closing I had on 6/30 the borrowers interest rate difference was 4.375% to 5.65%…and both were good credit borrowers.
Second, a nugget from the Trib’s Consumer Watch column regarding a resident’s inability to get a refund for a mistaken property tax payment. Of course the headline’s misleading…the parking spot owner didn’t pay his property’s taxes twice, he paid on another property first, realized his error, then paid the correct PIN, and now wants a refund for his WRONG payment. I’d side with the law and the explanation provided by the Treasurer, we do need trust-worthy property records. I’m relying on a title commitment at closing to tell me the property’s tax status and that can’t change after the fact which is what this guy wants.
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