Hold On, Here We Go Again!

FHA is Raising MMI

 HOLD ON, here we go again! FHA is raising the annual Mortgage Insurance Premiums which is known as the FHA Monthly Mortgage Insurance (MMI). These changes are covered in Mortgagee Letter 11-10 and become effective April 18th, 2011. The new change is 25 bps or .25%.

Now remember that we just had an increase by FHA that went into effect in October of 2010.  FHA Commissioner David Stevens commented:



"After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA's capital reserves and help private capital return to the housing market.  This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments."

 Here is how it will effect monthly payments:

 

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office

     

Important New Changes – FHA to Increase the FHA Monthly Mortgage Insurance (MMI)

Sit down and take a breath, here we go again, FHA has raised the annual mortgage insurance premiums which is known as the FHA monthly mortgage insurance. These changes are mentioned in Mortgagee Letter 11-10 and become effective on or after April 18th, 2011. The new change is 25 bps or .25%.

Now remember that we just had an increase by FHA that went into effect in October of 2010. ALSO, keep in mind that Fannie Mae (Conventional Loans) has a pricing change that goes into effect on April 1st, 2011 as well.  And there is talk about conventional loans requiring 10 percent down, not 5 percent down. But there seems to be no foreseable changes for FHA loans and the minimum down payment of 3.5 percent for now.

 Why the changes? HUD wants to strengthen the FHA's Mutual Mortgage Insurance Fund, known as the MMIF. They want to see the fund financially sound. Also, there is no change to the Upfront Mortgage Insurance Premium of 1 percent.

FHA Commissioner David Stevens commented:

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market.  This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

HUD claims that this change to upfront MIP charges will increase the capital reserves the FHA holds in the Mutual Mortgage Insurance Fund by $3 billion, greatly increasing the stability of the FHA, which had $3.6 billion in the account at the end of 2010.  According to the press release, new FHA borrowers will pay about $30 extra per month on average.

Old verse New Monthly Mortgage Insurance Changes

 

This chart is from Mortgagee Letter 11-10 - Annual Mortgage Insurance Premium Changes -

 As you can see by the red arrow, indicating that this goes into effect on April 18th, not April 4th. HUD must have revised the date after they did the charts. So what does this all mean to those refinancing or buying new homes with a FHA mortgage?

 

This is based on a $250,000 sales price and the end result is that it would cost the buyer $50.26 more in their total mortgage payment. You can also look at it from the flip side when qualifying buyers. This could lower the new buyers purchasing power by about $9,000. Meaning, instead of the $250,000 purchase price in the example, they can now afford a $241,000 home.

 This new change is for your primary 1 to 4 unit properties. This change does not affect Title 1 loans, the HECM loan (reverse mortgages - which I am writing about tomorrow), the HOPE loan, and a few other types of FHA loans. This can also be found in the new FHA mortgagee letter 11-10.

There are also new changes to how one would have to request a FHA case number, cancellations of FHA case numbers, and a few other issues. These changes can also be found in the new FHA mortgagee letter 11-10.

 Here is a quick breakdown of different purchase prices just to give you an idea on how it will change the monthly payment.

 

 

Steps For Successful Social Media Marketing

#6: Analyze, Adapt, and Improve

Your social media strategy doesn't end with measurement; it goes beyond that.  You need to analyze your social media campaigns, adapt any new findings into your current processes, and improve your efforts.

Testing and experimentation will perfect your social media efforts.

As you dive deeper into the ever expanding world of social media, you'll quickly understand what works and what doesn't. But remember to work with a new program for 3 to 6 months or even longer before you change any thing. It is the only way to see if something really works.

More specifically, you'll develop favorite tools to use, realize that there are certain days and times where it doesn't pay to be active in social media, and come to the conclusion that you still have lots to learn.  It's a wonderful new world and I hope many of you are as excited about it as I am.

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office

     

Steps For Successful Social Media Marketing

#6: Analyze, Adapt, and Improve

Your social media strategy doesn't end with measurement; it goes beyond that.  You need to analyze your social media campaigns, adapt any new findings into your current processes, and improve your efforts.

Testing and experimentation will perfect your social media efforts.

As you dive deeper into the ever expanding world of social media, you'll quickly understand what works and what doesn't. But remember to work with a new program for 3 to 6 months or even longer before you change any thing. It is the only way to see if something really works.

More specifically, you'll develop favorite tools to use, realize that there are certain days and times where it doesn't pay to be active in social media, and come to the conclusion that you still have lots to learn.  It's a wonderful new world and I hope many of you are as excited about it as I am.

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office

     

Steps For Successful Social Media Marketing

 #5: Measure Results

You have written goals and objectives, right? [if you don't you need to fix that RIGHT NOW!]  That means you should be able to MEASURE your success.

Remember, what you measure will tie into the goals and objectives of your Social Media Strategy.

Let's take the four commonly used objectives:

Improve brand presence across social channels-The measurement goal here is an increase in the number of number of fans "Likes" on Facebook, followers on Twitter, followers on LinkedIn, number of comments and responses, and so on.

Develop relationships for future partnership opportunities-This goal is to keep track of those with whom you've connected.  For example, if you met a potential networking partner, include that person into your digital Rolodex.  If a vendor contacts you through your blog, capture that lead and take note.

Increase traffic to your website-Keep track of visitors to your website who come from each of your social media sites.  If you're promoting an event using social media, consider using a unique code to track the campaign.

Increase your conversion rate-The goal here is to convert the number of followers you associate with into clients and business. Capturing leads from your Social Media Marketing is a must. You need to develop a system to capture your web visitors and social media contacts. BUT you need to do this in an un- aggressive "non-pushy" manner. It is a grey line and balancing act. Doing this will possibly get you positive mentions while taking some negative mentions.  Has the ratio of positive to negative comments improved?  With the good comes the bad in social media. Get used to it!

Measuring social media is a never-ending debate. What objectives are you measuring for? How are you measuring? When it comes to measuring social media, it takes a multitude of metrics as well as trending reports to get a sense of what is working and what to improve. But the bottom line is that most people prefer to do business with FRIENDS instead of strangers and are you easy to find when their time to buy comes!

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office

     

Steps For Successful Social Media Marketing

#4: Strengthen Relationships

It's easy to hide behind your avatar or profile picture, but face-to-face is incredibly powerful.  I think more people are now realizing how underrated the in-person interaction really is because of how far social media has come, allowing so many people to "hide."

Attend offline events related to your industry-not only to strengthen your knowledge base but also to network and strengthen relationships with those you might have conversed with via social media, but never met in person.  Join groups and attend their meets. Get out there and meet people!!!

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office

     

Steps For Successful Social Media Marketing

 #3: Join the Conversation to Develop Relationships.

Now it's time to start making use of all the work you've done.  You need to start joining the conversations by posting comments on blogs, facebook and forums, answering questions on Yahoo, LinkedIn, and Twitter. Joining groups related to your industry and being active.

Begin developing relationships by following and friending influencers and those in your industry. 

Begin making connections by following the conversations.  You can do this by subscribing to blogs in your industry and by making a list of influencers who are relevant to your business and becoming friends with them.

Don't just look for people with thousands of followers; you'll be surprised by the value that someone with only a couple of hundred followers provides. Practice and study your craft. BECOME an authority in your own right. Post, post, post!

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office