Bay Area Finance: Week 3, August 2009
This week we had an FHA loan file declined for a property in Monterey County because the underwriter at this lender (which is a MAJOR lender, I might add) incorrectly applied the “High Cost Area” loan limit, insisting the limit was $483,000— which was way below the loan amount we were applying for. The underwriter cited the limits that DID change to this amount in January of 2009, but these same limits were amended to higher amounts with great publicity in May of 2009. Monterey County’s limit was raised to $729,750 in May of 2009. I mention this because it took two business days for the lender to acknowledge their mistake and reinstate the application. And when everybody in a purchase transaction is working with a ticking clock to close escrow on a prescribed date, two business days is a long time to wait for a response. We knew we were right, so we weren’t terribly concerned; and since it was bogus, we weren’t required to notify the borrowers of the decline. But the reason I mention this is that THIS IS WHAT WE DO. During the processing period of a loan file we are diligently policing the departments of Underwriting, Docs, and Funding at the lenders chosen for our loan files to make sure they’re processing our files RIGHT. Since lending guidelines have been totally changed— and then amended after that, persistently— in the last couple of years, it is really not that unusual for an underwriter to make a mistake that could at worst— as in this case mentioned— decline the loan application. We work to make sure the most current underwriting amendments are always utilized so these unfortunate mistakes don’t happen to you.
If you’d like to learn more about county loan limits that apply to both FHA and Fannie/Freddie loans, click here.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
San Francisco Opera Free at Stern Grove: I’ve recommended the free simulcast of the opera at AT&T park where you can see the opera on the big screen and hear it streaming live from the War Memorial Opera House. Well, this Sunday is your chance to SEE and HEAR the opera in person outdoors in the beautiful Stern Grove theatre surrounded by eucalyptus and redwood trees. Tenor Marco Berti and others: Free, Free, Free! Check it out here.
Free Admission Day at The Lindsay Wildlife Museum in Walnut Creek: This museum is a place I used to go as a kid when it was in a different building in Larkey Park. Now, while still in the park, it’s a premier wildlife museum specializing in animals native to California and it’s also an animal rescue hospital as well. This Saturday is a free admission day. So bring a picnic to enjoy in the park and check out this wild and wonderful part of our community. See here for more info.
Help Your Fellow Living Beings:
Satellite Housing for Seniors in Oakland: From their website: “Maintaining mobility, flexibility, and muscle strength is a huge health issue for seniors, and the risk of falls becomes greater with age. Exercise lowers the chance of falling by improving strength, coordination, and balance.” They’re looking for volunteers to help with exercise instruction. If you’re able to volunteer in the Dimond District this one could be for you. Check it out here for more info.
Two Weekends from Now:
Outside Lands Music and Arts Festival in San Francisco: Pearl Jam, Dave Matthews Band, Thievery Corporation, M.I.A., Black-eyed Peas, and more headline this show in Golden Gate Park. SFSurfrider and SaveTheWaves collaborate for a beach cleanup at Ocean Beach (at the west end of Golden Gate Park) as part of the festival. Three days of rockin’ and groovin’ coming your way two weekends from now. Check it out here.
Pic of the Week… from my own camera. 
The Sentinel of Bolinas Beach sings Happy Birthday to Heidi!