The Vero Beach mortgage industry now has new regulations in effect designed for lenders to be more transparent in their dealings with borrowers. The areas of reform are aimed at simplifying and streamlining some of the consumer disclosure documents in order to make it easier for borrowers to understand various lending programs.
Vero Beach Mortgage Rules Change: Know Before You Owe
As a result of the last housing and mortgage crisis and the passage of the Dodd-Frank legislation, the Consumer Financial Protection Bureau (CFPB) was established to design simplified forms to address two key areas: post application disclosures and pre-closing information. The CFPB reportedly spent nearly four years researching and testing the new disclosures and are now ready to require Vero Beach mortgage lenders to implement them.
For their part, mortgage lenders nationwide say the reform has created a huge technological challenge involving additional software programs and thousands on man hours in training and ramping up for the new disclosure procedures.
The disclosure form that is given to the consumer after the loan application begins — known as the Loan Estimate — covers the rules regarding what can and cannot be done by the lender, including cost estimates that must be approved by the borrower in writing before the loan application process can continue. The Closing Disclosure must be given to the borrower within three business days of closing. It captures all the costs paid by the consumer. If the borrower wants to make any changes during the three-day window, the three-day period resets. This, inevitably, will cause delays and potential "domino effects" that could create additional delays in closing.
Vero Beach mortgage lenders are keeping their collective fingers crossed that the new disclosure requirements will be seamless. However, there are numerous “moving parts,” as the disclosures now impact the real estate industry. While real estate professionals have no direct responsibilities under the new regulations they still have a role in the process. They need to educate their clients about the changes and help them understand that the loan closing transaction may take longer. Additionally, real estate clients will need to understand that there is an increased risk of delays in the loan closing — especially if borrowers try to make “eleventh hour” negotiations or changes within the three-day waiting period.
Find more articles about the Vero Beach mortgage market by checking out our Vero Beach Mortgage Info to your right just below our Vero Beach Real Estate Categories.
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Vero Beach flood insurance is something some people might say is a waste of money, but floods are obviously quite common in low lying areas that are surrounded by water. In these areas, not having Vero Beach flood insurance is like playing financial Russian Roulette in the event of a serious storm. Just look at what happened statewide in South Carolina.
Vero Beach Flood Insurance Even If You're Not Near Water
What about homes that are not near a water source? Do they still need to be insured against the potential for flooding? Just ask any one of the thousands of homeowners in South Carolina who recently lost everything.
As it turns out, there are many claims for flooding that come from some of the most unlikely areas. It's not just a function of simple flooding that puts your home at risk.
First, think about what would happen to your home if just and inch or two of water covered your floors. How many of your personal items are touching the floor and how many electrical cords and extension cords do you have throughout your home just an inch or two off the floor, or worse, directly on the floor? How many of these things will put your entire home at risk if even a small amount of water enters in your home?
Ground water can start to meet the rain water when the ground is saturated. It doesn't take much to start noticing a significant rise in bodies of waters such as small ponds, lakes and streams. It doesn't take much for the overly saturated ground to start siphoning off rain water, which in turn creates flooding.
Floods can happen thanks to saturation of the ground just as easily as it can happen when ground water and rain water meet to cause excessive rain runoff which can lead to flooding. No matter where you live, you may very well find that you are suddenly noticing there is an increase in water saturation after heavy rain. Just ask anyone who was in a non-flood plain area in the path of the recent storm that hit South Carolina (and it wasn't even a named storm, just a lot of rain), or Hurricane Floyd in 1999, or anyone in non-flood prone areas where Hurricane Katrina wrecked havoc.
Every area is at risk of flood these days, even in the Vero Beach area. Flood insurance is not expensive and it is a simple way to protect your home in the event of a serious disaster like the one in the South Carolina. It takes very little water to do a tremendous amount of damage that can cost you thousands of dollars right out of your pocket if you don't have flood insurance. Some people who thought flood insurance was only for those who are near water lost their entire home and everything in it, including their cars. Flood waters can creep up on you quickly and be right at your front door before you know it. One simple flood insurance policy can mean the difference between being financially wiped out and being able to rebuild.
If you have questions about Vero Beach flood insurance, check out the information at the FEMA website about The National Flood Insurance Program. You can find more about not only Vero Beach flood insurance, but other types of insurance as well under the Vero Beach Insurance section of articles just below Vero Beach Real Estate Categories to your right.
Vero Beach housing is obviously affected by interest rates, and recently, the much anticipated rate hike by the Federal Reserve was once again put on hold because Fed Chairwoman Janet Yellen said she thinks the housing market is still not where it needs to be.
Jeff Taylor of Digital Risk appeared on Fox Business News after Yellen's comments about the housing market being depressed or distressed, countering her assertion that the housing sector is depressed, citing that housing indicators are at all-time highs.
Many in the Vero Beach housing sector have actually been hoping the Fed WOULD raise interest rates. Taylor points out some of the reasons why this thinking actually makes some sense…
Stay abreast on what the Fed does in the future with interest rates by continuing to follow us on Twitter and Facebook. We post daily there. Also stay abreast of the Vero Beach housing market by checking here frequently for more up to date news as it affects Vero Beach housing.
Your Vero Beach homeowners insurance policy provides coverage against most perils and damages. There are some, however, that are not covered. Unfortunately, those are usually the ones that catch you off guard — and they can be expensive. While every policy is different, you should peruse your Vero Beach homeowners insurance coverage to see if you're protected against termite infestation and mold damage.
Vero Beach Homeowners Insurance: Two Conditions That May Exist in Your Home
Contrary to popular belief, mold can rear its ugly head in almost any household. It's not uncommon for even the best maintained home to have a little mold somewhere. The most dangerous thing about mold is that it doesn't go away on its own, and unchecked it can spread undetected. Because hazardous mold problems can affect the health of the home's occupants, mold infestation should be treated immediately.
Combatting mold damage can be an expensive undertaking. As such, homeowners often turn to their Vero Beach homeowners insurance policy for coverage — only to find out they may or may not be covered. Here's why:
Mold is caused by excess moisture. Mold spores can thrive by coming into your home through windows and doors. A common cause of mold is a leak somewhere in your home. If the mold is a result of a leak that occurred due to a covered peril like a damaged roof or a water pipe that burst, it could be covered by your Vero Beach homeowners insurance policy. However, most homeowner's insurance policies contain specific mold exclusions. If the mold is a result of poor room ventilation, excessive crawlspace moisture, unrepaired water leaks or lack of home maintenance your policy probably doesn't cover it.
One of the biggest causes of mold damage is flooding. Since most standard Vero Beach homeowners insurance policies don't offer flood insurance, you'll find that unless you have a specific flood policy you won't be covered for mold damage caused as a result of flooding. To be absolutely sure about mold coverage, talk to your insurance company.
Another common problem that can plague a homeowner is termite infestation. Untreated or ignored, termites can cause serious structural damage to your home. In addition, as a general rule termite damage isn't covered by most Vero Beach homeowners insurance policies.
It's estimated that termites are responsible for over $5 billion in home damages each year. There are several steps you can take to prevent termite infestation and damage. Soil treatment, termite barriers and other preventative measures can give you peace of mind and guard against damage. Because termite damage isn't covered by insurance, it may be a good idea to consider hiring a pest control company to make sure your home is termite-free and that it stays that way.
Again, consult your Vero Beach homeowners insurance professional to find out what your coverage includes. And, since mold and termites typically aren't covered, they are probably good reminders that good home maintenance can prevent potential damage from those sources.
The old adage, "An ounce of prevention is worth a pound of cure" certainly applies when it comes to the value and condition of your home.
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