Mortgage lending will change in Vail Valley | VailDaily.com
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Mortgage lending will change in Vail Valley

William A. DesPortes

Needless to say, 2008 will go down in history as a year of monumental changes, events, corrections and unprecedented actions. Every sector of the economy and region of the globe have been significantly impacted, perhaps none more so than the mortgage industry. Significant changes and corrections within the industry will undoubtedly make mortgage lending better but still sometimes challenging as we move forward into 2009. Perhaps one of the best adjustments within the industry came as legislation granting first-time homebuyers $7,500 of tax credits for purchases taking place before July 1, 2009. While there are some stipulations with the credit, this is quite a gift for first-time buyers. Tax credits are literally deducted from what is owed to the IRS or reimbursed in the event that the final dollar figure to the IRS does not equal $7,500.Qualifying for a mortgage has gone back to being based largely upon income, which is not necessarily a bad thing. However, many of us have a number of ways in which we earn a living. Verification of income can be difficult and will be highly scrutinized in 2009 and beyond. Therefore, those borrowers who may have transactions in 2009 should consult with both their mortgage professional and tax preparer to determine how much income is needed to qualify for financing, and that the income is indeed able to be used for the transaction. Conforming loans limits will remain unchanged in 2009 at $417,000. Agency conforming loans, set by Fannie Mae and Freddie Mac, or those between conforming and jumbo, have been reduced to $625,500 for Eagle County. Due to the fact that these two limits are determined by median home prices for the county, it is clear that 2008 and into 2009 housing prices are indeed dropping.Strict licensing and insurance requirements have been imposed on all Colorado mortgage brokers at long last, beginning in 2009. Laws and requirements such as these are evidence that the industry is reining in some of the devious and deceptive practices and persons that assisted in bringing about the current state of affairs.Mortgage lending is in the midst of significant corrections. 2009 will prove to be a pivotal year as these changes, adjustments and corrections continue to take place and sort themselves out, but that which doesnt destroy us makes us stronger. Mortgage lending will be stronger because of the occurrences in 2008 and the changes coming in 2009. William A. DesPortes is a managing member of DesPortes, Selig & Associates, Professional Mortgage Services. He can be reached at 970-926-9393 or william@dsmortgage.org.


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