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One mansion in Los Angeles has made the news lately and is being touted as the safest home in the world. Of course now that they have shared its secrets, how safe is it? With the unstable economy and job loss, lots of wealthy individuals have created their own private fortresses at home complete with panic rooms, safe cores, ultra high-security systems, secret escape routes and more.  The L.A. mansion features not one, but two safe core rooms that are undetectable from architectural renderings. The homeowner would be able to retreat in absolute safety (as well as absolute luxury) from outside threats such as intruders, natural disasters or a terrorist attack including nuclear, biological of chemicals.

Chances are that your home doesn’t have all the features of the LA mansion, but there are a lot of simple steps you can take to make that your home is secure. Here is a quick check list to use for a safety evaluation of your home.

1. Security system – make sure that you have properly installed your security system and that family members know how to turn it off and on, as well as how to alert the security monitoring company of danger.
2. Proper Lighting – make sure to check and replace exterior light bulbs and try to eliminate dark places around the home.
3. Shrubs – trim the shrubs, bushes and other vegetation around your home to reduce the appeal of these areas as hiding places.

 FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate “areas” for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

With the winter season quickly approaching, Raymond Previto, environmental services director at Park Springs, the Southeast’s leading continuing care retirement community and Brian Thomas, director of operations management, sat down to answer questions about how to properly prepare your home for the Atlanta’s cold Winter months ahead.

Q: What are some basic tips homeowners should know during cold winter months?

A: Set your thermostat to 65 degrees to prevent walls and pipes from freezing. It is also important when extremely cold to let a faucet drip to ensure pipes don’t freeze. Also be sure to disconnect any outside hoses on your property. If you haven’t had your furnace inspecting, now is a good time to do so.

Q: How do I ensure my gutters and roof are safe for the winter months?

A: Keep an eye on any obstructions in your gutters and downspouts. By removing leaves, branches and debris, ice dams and standing water are less likely to form, reducing the chance of water build-up and seepage into the house. Make sure the valleys of your roof lines are also clear. Valleys are the most common place where roofs leaks. It is also important to cap or screen your chimney to keep out birds and rodents.

Q: What should I have in an emergency kit in case of a winter storm and power outage?

A: It is important that you have canned goods, bottles of water and blankets handy. Be sure to keep batteries and LED flashlights in a familiar place. Many fires start during power outages because people forget that they lit candles. There is no excuse not to have a flashlight handy. You might also want to think about purchasing a walkie talkie in order to be able to communicate in times of power outages. Be sure to prepare an evacuation plan in event of an emergency.

Q: When inspecting the outside of my home, what should I look for?

A: Check your siding for damages including cracks and or separation. Be sure to seal any damages or contact a repairman to do so. Be sure to check your windows and doors to make sure they are sealed with weather-stripping to prevent heat loss.

Q: What are some key mistakes homeowners make in the winter?

A: Homeowners that use fireplaces, heating blankets, woodstoves etc… often forget to shut them off or fall asleep before doing so. It is important prior to using these items in the winter that you make sure they are in proper condition. While in use they need to be closely monitored.

It’s no secret that the tax credit for homebuyers was extended on November 6 as President Obama signed it into law. To most of us this is old news, but the National Association of Home Builders is spreading the word about the extension, as well as the details, since it has been expanded to include more than just first-time homebuyers.

The new law, which still includes the $8,000 credit if you’re a first time homebuyer will now be extended through April. This means that you must have you’re home under contract by April 30 with a closing date on or before June 30. The newer part of the law will now include repeat homebuyers who can take advantage of a $6,500 credit if they have been living in their current home for 5 consecutive years out of the past 8 years.

Income limits have also increased so you have a chance of qualifying more now than ever. Single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 are eligible, and those who earn more up to $20,000 over the limits can qualify for partial tax credit.

It’s quite obvious that the tax credit has had an overwhelming success in the past, and there’s no reason to believe that it won’t continue. According NAHB Chairman Joe Robson, due to the expansion, close to 70% of potential homebuyers will qualify for a tax credit. This is sure to boost the housing market in Atlanta as well as the economy of the nation overall.

Overall, a lot of attention has been focused on the new law and its positive benefits. The NAHB estimates that over 200,ooo jobs will come out of the extension and an estimated $9.6 billion worth of wage income too. It seems as if the tax credit is just what we have been needing, and now there are a few more months to take advantage of it now. Visit NAHB’s website to find out all the details on the tax credit.

Great news for those who already own a home and are thinking about down-sizing or moving-up to a new home! Thanks to the recent extension and expansion of the Federal housing tax credit,  qualified move-up and repeat home buyers now qualify for a tax credit of up to $6,5oo.  Homes must be a principal residence and need to be purchased after November 6, 2009 and before April 30, 2010.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.  Homes priced above $800,000 are not eligible for the tax credit.  For answers to basic questions, we suggest visiting the frequently asked questions about the $6,500 Home Buyer Tax Credit at the Federal Housing Tax Credit site.

“Move-up” buyers who buy a new home don’t have to purchase a more expensive home than their previous home to qualify for the $6,500 tax credit., but they need to have lived in their previous home for at least five consecutive years of the eight years prior to the purchase of the new home. Both married taxpayers, must qualify.

Remember, there are income limits you must meet to qualify.  A single taxpayers less than $125,000; and the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. Ask your accountant if you have specific questions!