Real Estate

FHA Reform May Change Your True Purpose

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The House of Representatives passed the Expansion of the American Home Ownership Act of 2007 and most likely the Senate will pass it and the President will sign it after some minor adjustments. This is the largest change to the FHA that has occurred since its inception. If the House has its way, this would actually change the initial purpose of the FHA from an agency formed to help low-income households to an agency that helps nearly all Americans own and keep their homes.

Increased FHA loan limits

Why do I say this? The FHA has always been focused on helping poor, low-income areas afford homes. The new bill now before the Senate proposes increasing loan limits from $ 200,000 to $ 350,000 up to a maximum of $ 700,000 in areas with high median home prices. Personally, I do not know low-income people who own $ 700k homes, except for those people who lied on their loan applications and “declared” that they made $ 10,000 per month as a janitor at Wal Mart and actually got the loan. Fortunately, Bush has stated that he will not allow this to happen. It is intended to keep the purpose of the FHA intact. I think the Senate will do the same. Bush plans to keep the FHA loan limit at $ 417,000 or less. We should see each other very soon.

Removal of audited finance requirement for brokers

This is the second largest change to FHA. If the House passes this, it would open the door to approximately 90% of the nation’s mortgage brokers who were previously restricted from becoming FHA (loan correspondent) approved brokers due to the cost barrier. . Most people don’t realize it, but audited finances can cost anywhere from $ 2,000 to $ 20,000 for an average little broker to obtain. Audited finances required by the FHA must be completed by a CPA who has undergone a peer review and the minimum net worth must be $ 50,000 in accordance with the strict FHA net worth calculation guidelines. Now 90% of brokers who did not have the time, money, and resources to prepare audited finances can post a bond in lieu of audited finances. A surety bond is obtained through insurance companies and covers the consumer or third party in a transaction and is payable by the mortgage company if the state uses it to pay a consumer or third party. The new bill proposes a bond of between $ 50,000 and $ 100,000. Most analysts would agree that something similar to this will be in the amended bill when it passes the Senate.

What will be the effect of this bill?

Whether the FHA loan limit is raised to $ 700,000 in some areas or $ 417,000, the bill will drastically change the purpose of the FHA. Many people will look to the FHA as a place to obtain a loan that conventional lenders cannot provide. This is possible through FHA advance mortgage insurance that can reduce the risk of higher debt-to-income and loan-to-value ratios. We will also see a huge increase in FHA publicity when most mortgage brokers have access to be FHA approved brokers. Unfortunately, the House tends to think that this will be the solution to current market problems. This is a great start, but I think it will take a lot more than this to make an adjustment to all the lies and deception that have occurred in the last 5 years in the mortgage industry.

Sports

My 3 best coaches

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Coaching for me is more of a passion than a job. There are countless experienced trainers in the world who I admire and then model my training methods. Some of these coaches are Gregg Popovich, Steve Kerr, and John Calipari. Like I said, there are several coaches in the game of basketball that I admire, but these three coaching methods and styles stand out the most for me. These coaches, like me, treat basketball coaching as a passion rather than a job.

Gregg Popovich, the current head coach of the San Antonio Spurs, has been training for more than 20 years and is one of the most experienced coaches in the NBA to this day. Popovich is known for recruiting young players for his team in hopes that his players will play with poise and precision on the court. Popovich, now 68, has always been a basketball addict since childhood. Popovich’s 5 distinct pillars of coaching are something that I model my coaching strategies on. Those five pillars are faith in your team, conflict management, participation, focus, and team building.

Steve Kerr, current head coach of the Golden State Warriors, knows a thing or two about winning and leadership. Kerr won a total of 5 championship rings, including three with the Chicago Bulls (1996, 97, 98) and two with the San Antonio Spurs (1999 and 2003). Kerr has also led the Golden State Warriors to 2 championships in the 2014-15 season and the 2016-17 season. Kerr’s coaching style is based on letting his player take control of leading the team. He believes that his duty as a coach is to prepare and guide them in practice and when the time comes for the game, they should be prepared and ready and able to help each other while the team overcomes the conflicts they may face, with the least help possible. from Kerr himself.

John Calipari, current head coach of the Kentucky Wildcats college basketball team, has been training since 1988 and currently trains to this day. Calipari is most famous for his years in Kentucky, leading the Wildcats to multiple championship titles and NCAA tournament appearances. There are many factors that lead to Calipari’s success as a coach, but the factor that stands out the most is his philosophy of teamwork. This philosophy is about recruiting the majority of the best prospects in the country to come and play in Kentucky. Additionally, their ability to trust their first-year players by giving them leadership roles on the team allows them to be better leaders on and off the court. Calipari lets the natural talent of its players decide the role they will play on the team.