Celtic Bank Blog

JAN
28

President Nominates New SBA Administrator

President Nominates New SBA Administrator
On January 15th President Obama officially nominated Maria Contreras-Sweet as the new SBA Administrator. Contreras-Sweet is well known in the financial community as the California Founder of ProAmerica Bank, she has been heavily involved in small business lending, as well as with the government as she worked with the California Department of Business. Obama said in his nomination speech, " I searched for an exceptional person to serve as the next leader of the SBA...who can work with me to increase growth and opportunity, who understands entrepreneurs." Overall reaction to Contreras-Sweet's nomination has been positive, as she has been extensively involved in the small business community since the late 1990s. To view the Presidents entire speech click HERE
JAN
24

USDA Rural Development Single Family Housing Guaranteed Loan Program

USDA Rural Development Single Family Housing Guaranteed Loan Program
Guaranteed USDA Loans Offer Affordable Financing To Rural Homebuyers The mission of USDA Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low-to-moderate income rural homebuyers to achieve their dream of homeownership. Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms. Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located. Additional Guaranteed Loan Features include but are not limited to the following: 100% financing, no down payment required. Loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Guarantee fee may be rolled into the loan amount. Flexible credit guidelines. Non-traditional credit histories may be accepted. Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate. Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified. No maximum purchase...
JAN
21

SBA Abolishes Fees on Loans for Military Veterans

SBA Abolishes Fees on Loans for Military Veterans
JAN
17

Agency Changes to the Home Affordable Refinance Program

Agency Changes to the Home Affordable Refinance Program
On October 23, 2013 Fannie Mae and Freddie Mac announced changes to HARP (Home Affordable Refinance Program) http://www.mortgagenewsdaily.com/10222013_fannie_and_freddie_announce_expanded_harp_eligibility_dates.asp . Previously loans had to be delivered to Fannie Mae or Freddie Mac prior to May 31, 2009.  Some of the loans that closed preceding the May 31 st deadline were not delivered to the agencies prior to the cutoff date therefor making them not eligible for the HARP program. With the new changes, the eligibility date will now be based on the Note date.   Home Owners who closed their loans prior to May 31 st  but were told previously that they were not HARP eligible should contact Celtic Bank to discuss their HARP eligibility with the new change. To see if your loan is owned by Fannie Mae or Freddie Mac you can use the following look up links: Fannie Mae:   https://knowyouroptions.com/loanlookup Freddie Mac:   https://ww3.freddiemac.com/corporate/?intcmp=LLT-HPimage
JAN
13

Implementation of the Ability-To-Repay Rule

Implementation of the Ability-To-Repay Rule
The Dodd-Frank Wall Street Reform and Consumer Protection Act were created to reduce risk for financial institutions and consumers. The Act created the consumer Financial Protection Bureau, which is charged with educating consumers and financial service providers and enforcing federal consumer financial protection laws. The Bureau implemented the Ability-to-Repay Rule for mortgage loan lenders, which went into effect on January 10, 2014. This Rule requires mortgage lenders to consider the consumer's income, assets and debt when making decisions on any proposed mortgage loan to ensure consumers are only offered loans they can afford. Although most mortgage lenders have already implemented this type of analysis into their underwriting standards, the Rule makes it easier for lenders to identify loan products that may create issues for their customers in the future. For more information on the Ability-To-Repay Rule please visit:   http://files.consumerfinance.gov/f/201312_cfpb_mortgage-rules_fact-vs-fiction.pdf