According to our friend Jeannie Bolger, Sr. Loan Officer for Nova Home Loans:

Back in April the Federal Housing Administration announced they were going to change the requirements for all FHA buyers with $1000 or more in collections–anyone with unsettled, unpaid, or unresolved disputes–must be paid in full.  The requirement was scheduled to start this Sunday, July 1st. But as of HUD’s June 15 Mortgagee Letter, they have rescinded the requirement.

What was the new July 1 requirement going to mean to home buyers who plan to use low-down-payment FHA financing, other than making it more difficult for everyone to get FHA loans? For one, it was going to complicate the process of qualifying for an FHA loan. (As if borrowers did already have enough problems with approval delays!). It would have likely reduced the qualifying amounts.

Unfortunately, many lenders wrongly pre-approve borrowers because the loan officer wasn’t paying close enough attention to things like these new, often overlooked collections requirements. This leads to borrowers getting denied on purchasing a home while they are still in escrow. Which means their earnest money is in danger of being lost.

All because of something most people are unaware  of that’s tucked away in their national credit bureau files: Medical bills, old student loans, retail purchases, any debts reported as unpaid. It wouldn’t have mattered if these debts were incorrectly reported to collection agencies, or if the borrower had currently high credit scores and income.

“Fortunately, these new collections requirements have been rescinded. The current guidelines are as follows”,  said Jennie Bolger.

Collections:

Manually Underwritten Loans

Collections indicate a borrower’s regard for credit obligations, and must be considered in the creditworthiness analysis. The lender must document reasons for approving a mortgage when the borrower has collection accounts. The borrower must explain, in writing, all collections. FHA does not require that collection accounts be paid off as a condition of mortgage approval.

TOTAL Scorecard Accept/Approve Recommendation

Collection accounts trigger neither an explanation requirement nor a hypothetical monthly payment to be used in qualifying borrowers. The presence of collection accounts in the borrower’s credit history already result in lowering the credit bureau scores used in TOTAL and, thus, no further information need be provided by the borrower.

Disputed Accounts:

TOTAL Scorecard Accept/Approve Recommendation

If the credit report reveals that the borrower is disputing any credit accounts or public records, the loan must be downgraded to a manual underwriting review by a DE underwriter–

–unless any of the following circumstances apply to the disputed account:

o It has a zero balance

o It’s marked as “paid in full” or “resolved”

o It’s less than $500 and more than 24-months old

Nova Home Loans has a Credit Services Department that can—for free–assist you with any Collection, Charge-off, Disputed Account and Judgment questions; and help you get your FHA/HUD loan approved.

Please call Jeannie Bolger, Sr. Loan Officer for assistance. 

Jeannie Bolger, Sr. Loan Officer

Licensed Mortgage Consultant #194387
Nova Home Loans
2850 E. Camelback Road, #270
Phoenix, AZ 85016
602-550-8674  Mobile
602-385-4812  Office
602-464-7322  Direct Fax
jeannie.bolger@novahomeloans.com

I was recently introduced to the 2012 Centennial Edition of the Bicycle Map and Phoenix Historic Neighborhoods  (PDF).

It was created under the guidance of Joseph Perez, the city of Phoenix Traffic Safety & Bicycle Coordinator (May 31, 2012 video), so I had high hopes for what Joe might bring to the mix.

I’m hoping people using the map will see the close proximity of the historic districts, bike trails, canal paths, and light rail stops, and think, ‘I should move here. It’s so close to everything,’  Perez told me when I asked him about it.

As it turns out, I live in the Campus Vista historic district and own a bike, so I felt endowed with certain unalienable rights to… put this map to the test.  Campus Vista is one of the 35 historic districts profiled, colored, numbered for easy recognition in this unique little fold up map. My neighborhood (light blue, #4):

Campus Vista. The opening of a new campus for Phoenix College in 1939, just outside city limits, created a demand for nearby housing. Bordering on the eastern and northern campus, the homes in this district represent a heterogeneous collection of mid-20th century domestic architectural styles.

Eager to start my journey, I head east on Thomas until I reached the yellow dots at 5^th ave and head south. This dedicated bike lane takes me through a dark orange neighborhood, one of my favorite places to buy and sell homes, and one of the most popular historic areas to walk, drive, or bike through: the Willo District.

Showcasing a wide variety of home styles including Tudor, Spanish Revival, Bungalow and Ranch, Willo is one of the largest historic neighborhoods, with majority of construction having taken place during the 1920’s-1930’s. Significant architectural changes in Willo can be marked  in the neighborhood starting with the earliest development near McDowell, and progressing north toward Thomas.

As I leave Willo, I cross south at McDowell and enter the Roosevelt District,

The first Phoenix neighborhood to be designated a historic district… A typical “Streetcar” neighborhood, its narrow and deep lots often showcase both California and Craftsman Bunaglow.

It’s a wonderful ride and I slow my pace even though it’s over 105 degrees out. (One has to have priorities, you know.)  A bit later, I follow the dedicated bike path over the I-10 freeway, then stop as I’m struck by the proximity of the majestic Kenilworth Public School building (and not just because I see my name is in it).

View Phoenix Historic Districts in a larger map

I’ve reached Fillmore. The map shows my path as orange dots, a “Bike Boulevard” that leads east through central Phoenix to 7^th street and the Garfield Historic District–- “modest bungalows, Period Revival homes, turn-of-the-century structures and a concentration of Pyramid cottages.”

A bike boulevard is designated visually on the road by ‘sharrows’, two white parallel arrows over a large white bicycle that make it obvious the road is to be shared with bicyclists. This summer, the Bike Boulevard (begun in a public meeting in 2010) will be completed when it reaches the Grand Canal Trail at 33^rd street, leading bicyclists from there into Tempe. (Read the full story here.)

SRP has plans to install a pedestrian bridge this year,” said Perez.  “To help connect the boulevard to the Grand Canal Path immediately east of Indian Trail but seperate because of an irrigation ditch.” [update: the bridge is now complete at Garfield & indian Trail!]

If you’re a bit skittish about sharing the road with cars, like I am, you might reconsider when you read Taz Looman’s Blooming Rock post, “Why I Converted from a Sidewalk Cyclist to a Street Cyclist”.

Well…Bike Boulevard and the land of Garfield awaits…I’m off!

 (Photo: Jaydec)

You’ve probably already heard about this Frank Lloyd Wright home, designed for his son, David, in 1950, that was scheduled for demolition. You likely know the current owner had plans to split the lot in half, effectively demolishing the house in the process. Odds are, you read about this at AZcentral.com last Thursday, June 14 or on the front page of the Arizona Republic on Friday, June 15th (Is Phoenix home designed by Frank Lloyd Wright in peril?“).

It was the Frank Lloyd Wright Building Conservancy that came across an application to split the property and who immediately,

…sought landmark designation and historical-preservation status for the home with the Phoenix Planning Commission in an attempt to fend off any threat to the Gladys and David Wright House, which was originally sold in 2009 by Wright’s great-granddaughters,” reported the Republic’s Philip Haldiman.

 The day the story was published, hundreds of people left comments below the article, protesting the demo plans. On Friday, June 15th, azcentral.com ran a brief story, “Outcry saves Frank Lloyd Wright house“:

[Frank Lloyd] Wright fans feared new owners planned to demolish the home. They packed a Phoenix Planning Commission meeting to protest. Hundreds more mailed or e-mailed their objections.

The new owners heard. Developers Steve Sells and John Hoffman had indeed planned to demolish the home, not realizing its significance. They told Arizona Republic reporter Philip Haldiman that they’ve since learned more about the house, including that its spiral design would later be used in one of Wright’s most famous works, the Solomon R. Guggenheim Museum.

After the loud community protest, the demolition plans were dropped.

And on Friday, June 15, the Republic declared, “Frank Lloyd Wright home buyers will work to preserve it“.

This is good news.
Great news.
Of course, it is.

But there’s a Frank Lloyd Wright-like attention to detail at work here. Something I don’t want you to miss. Before the press revealed it. Before Wright fans promoted it. Before emails and voices protested it. It’s the reason this home was even capable of being saved.

Recall that the new owners of the two-acre lot had filed an application to split the property in two. And it was the Frank Lloyd Wright Building Conservancy that came across that application. Before they sprung into action and made a move to stop it, they had to discover it.

Unless I’ve got my facts wrong, looking through applications isn’t very sexy. Who knows how many applications this person looks through on any given day? Day after day after week after week, nothing to report. And then, one day, someone noticed. And it’s because of that one person that what followed, followed.

This Thursday, June 14th, is Yoga in the Park.

We got some great goings on here in the land of the PHX. Check these out….

Every Thursday night in June, July & August, from 6:30 – 7:30pm, you should bring your Yoga mats for the FREE All Ages Yoga Classes at Civic Space Park‘s A.E. England Gallery. (It’s inside, behind the walls where they hang the art. There’s a a huge room for things like this. Cool, huh?)

(photo: Michael | Ruiz)

Oh! And bring a blanket, too. Cause afterwards, from 7:30 – 9pm, Walt Richardson will be playing a FREE concert. I’m assuming you know who Walt is–if you’ve lived in Phoenix metro for any significant length of time, you know, but just in case you don’t, check out his website at his link and this the 2000 feature article, “Harmony Grit“, from the Phoenix New Times.

For more info, check out the Yoga in the Park flyer.

This Sunday, June 17th, 2012, is Father’s Day.

Are you taking your father/grandfather on the FREE LIGHT RAIL this Saturday, the 16th, to the Van Halen Concert at US Airways Center? (No, no, not everyone goes free on the light rail. Just those going to the concert.)

If that’s not your speed, why not take dad/grandad to the Arizona Science Center (ASC) for FREE GENERAL ADMISSION, 10am – 5pm? Yep. Completely free. In honor of Father’s Day, the ASC is also handing out 200 family 4-packs of tickets to their upcoming feature exhibition of Raytheon-sponsored, MathAlive!

(photo: public domain)

This unique exhibit debuted in March of this year at the Smithsonian and is “designed to excite students by making real-world connections between math and the activities students already love to do,” said Raytheon Chairman and CEO William H. Swanson. “Our goal is to engage and inspire today’s students to remain interested in math and science so that they have the opportunity to become the engineers and technology leaders of tomorrow.”

The Arizona Science Center is also participating in WIRED Magazine’s National GeekDad Day this coming Sunday. I get Wired. This Geek Dad issue was a great idea!

Dads and kids will be able to take part in these special hands-on activities :

– baseball dissection
– light stick dissection
– saltwater batter exploration
– build an art bot
– make electric play-doh

On March 6th, 2012 the Facebook page of the Evans Churchhill Neighborhood featured a photograph of Mayor Stanton cutting the tape for groundbreaking of the new Concord Eastridge in-fill project (located on the two immediate blocks south of Roosevelt, between  3^rd and 4^th street) and wrote, “It promises to be a rewarding addition to our neighborhood and the Roosevelt Row CDC area.”

What you’d expect here is a photo of the glorious $52 million dollar housing project. And though you can follow the link anytime you want, I hope you’ll take a minute or two to be reminded of the history of this plot of land. A big part of the reason Phoenix is accused (by residents and non, alike) of not having any history is because when something new starts to rise, there is scarcely a memorial of what’s gone before.

According to historical imagery from Google Earth (left), the real estate of this block has been empty and barren since at least 1992.  (Note monOrchid, top left of the photo, the location of our next Get Your PHX event).

As long as I, or anyone I’ve asked, can remember, this was what it always looked like. The foundations of buildings are all that remain.

In May 2010, playwright and screenwriter, Dan Frey, captured the essence of this very block when he described it in his contribution to the Phoenix art exhibit, ‘26 Blocks’:

“Mostly just space now. Space for Terry to fill shopping carts with recyclables until there’s enough to sell. Space for those kids to smoke and see anyone coming before they get in trouble. Space for an Asian-fusion-smelling breeze to cool you off. A space everyone looks through and walks around. Which makes it the perfect place to stop and look up.”

It also made it the perfect place to stop and look down, as ’26 Blocks’ photographer Chris Loomis showed us in this helicopter shot of the same location.

For two years, the crop circle has been there. Like a target, waiting for something new to set its sights on the future of that block.

March 16th, 2012, two years later,  the Phoenix New Times publishes an article and updates our collective memories with photographs of the work-in-progress: “Construction on Concord Eastridge’s Roosevelt Row Apartment Complex in Full Swing”.

 “$52 million dollar housing project…[to be] completed June 2013… two buildings, one seven stories, one eight stories…325 apartments will be located in each building, as well as 7,500 square-feet of retail and restaurant space on the ground level…500 square-foot studios to four-bedroom apartments…high-speed Internet, private gyms, and swimming pools”.

The New Times article also mentioned that Greg Esser (long time partner of Cindy Dach, who we wrote about in a post last week about Changing Hands) was in attendance at the groundbreaking. If it feels like this blog post is cross-referencing itself more than usual, do read the excellent Downtown Phoenix Journal post from this Feb., “Creating Downtown“, where you’ll see just how interconnected Greg Esser, Cindy Dach, Wayne Rainey (owner of monOrchid), are…and why.

Writer Susan Copeland has a paragraph in the article which she uses to make a great point. One worth clipping here:

Wayne Rainey, Kimber Lanning and Dach/Esser all bought buildings and created art spaces within six months of each other. The prices were low enough at the time to make the spaces affordable. Dach says that artists are natural problem solvers. “We looked at the closed up buildings and dark spaces and said, ‘Yeah, this sucks. How can we fix it?’”

Phoenix New Times says “[The Concord Eastridge Roosevelt Row Apartment Complex will] change the face of the Roosevelt Row arts district.”

It certainly will.

My hope is that it will also remind us of the crop circle target on the long empty lot, and that we should continue to work on Phoenix by setting our sights on the empty lots that remain.

The Arizona Corporation Commission last week voted on proposals to reduce the solar rebates that utilities offer you when you install solar panels on your home. There is some debate within the solar industry about whether this is good or bad for the market, as a whole. But we  can say that your personal incentives will go down while incentives for central station power plant will remain the same. Three of these are the same Corporation Commissioners who voted to call a trash burning power plan “clean”.

There is a lot packed in to what I just wrote. So, let me explain. Stay with me because this is a crucial change in direction from the days when the Corporation Commission first started pushing the use of renewable energy.

First, some definitions:

Distributed Power Generation means people generating power from their homes. Good ol’ solar panels which increase your freedom, generate power where it is used and save you money.

Central Station Power Generation means big, remote power plants that actually waste energy as they send energy hundreds of miles to where you use it.

Corporation Commission is the constitutionally-empowered, elected body in Arizona which sets rates for power as well as how much renewable energy we use.

Rebates: we all pay a small amount of money on our bills, which goes in to a pot of funds. Some of that money can be used by people when they install solar on their homes, to bring down the cost. It is available to anybody who wants to use it …..until the money runs out. The current Corporation Commission is shrinking these rebates for regular folks and businesses in favor of big utility companies.

Second, some history:

When the Arizona Corporation Commission created the “Renewable Energy Standard and Tariff”, they divided money between central station (70%) and distributed power (30%). So, the money goes to paying down the higher cost of installing these technologies (which end up being cheaper in the long run). They gave more money to central station than to distributed because those projects are just bigger.

There is a traditional battle in the world of energy between distributed power and central station power. Utility companies like central station power because they have more control and, more importantly, they don’t lose customers (and money) when you decide you want to generate your own electricity. Freedom-loving, true patriots who want to throw off the shackles of Big Brother support distributed generation. (Am I showing bias here?)

OK, that was a little tongue-in-cheek. In reality, we need both distributed and central station. However, the current Corporation Commission is showing favoritism toward the wishes of the big power companies and they are ignoring the needs of regular home owners who want to save money and install solar.

Three of the five current Corporation Commissioners have shown that they don’t care about the overwhelming wishes of home owners to install solar energy and build our new energy economy.

Please take the time to learn about the three candidates for this year’s election who have a proven track record of supporting renewable energy. These three are all Clean Elections candidates.

– Paul Newman  www.paulnewmanaz.com

– Sandra Kennedy  www.kennedyacc2012.com

You heard the scoop here first: on June 14, 2012, nine days from today, Changing Hands Bookstore may officially be confirmed as a tenant of the former Beef Eaters Restaurant on 3rd Ave. and Camelback!

My fingers have been crossed since 2000 that this would happen (which explains this cramp I get sometimes, when the original Changing Hands on Mill Ave. in Tempe closed (the picture above is from their Mill Ave. bookmark). Ever since that first location closed, the only real estate for the bookstore has been the one on McClintock and Guadalupe, where the original bookstore expanded to back in 1998.

Maybe this time…?

I’m very hopeful. What a great thing Changing Hands would do for Phoenix with a location here! Co-owner/general manager, Cindy Dach, has done a wonderful, extraordinary job with her independent bookstore and was recognized early this year in an article by The Huffington Post  for being one of the main reasons there is such optimism in the Independent Bookstore Industry.

The Beef Eaters building is unique. As the website photos and home page describes it, it’s “Beef Eaters Restaurant in Phoenix Arizona is a rambling Arizona style adobe and heavy timber building with oak paneled walls, pitched beam ceilings, black leather booths, high wing-back chairs and linen table service. Trips to London added rare English art to its decor.

Beef Eaters Restaurant features two connected grand dining rooms and a cocktail-dining lounge. It has 4 private party and banquet rooms serving from 10 to 300, plus a quaint wine cellar table for 10. It has two bars, 4 fireplaces, 3 shaded patios and a large porte cochere drive entrance.

It opened in 1961 at 300 W. Camelback and was closed shortly before the passing of its 88-year-old owner & founder, Jay Newton, in 2006. Although the restaurant closed six years ago, its full website remains, floating like a ghost on the Internet.

In January of this year, Niki D’Andrea wrote about the history of Beef Eaters in an excellent Phoenix Magazine 2-page article called, “Steak. Out.”  Apparently, Jay Newton was a former sheep rancher in Utah who named his restaurant after a common nickname for Yeoman Warders (guards) at the Tower of London.

According to an April 14, 2012 Phoenix New Times article, the current real estate owner of the building had an offer from  Jon Kitchell and Lorenzo Perez of Venue Projects (they also helped develop Windsor and Churn in Phoenix) and both sides have 60 days to make a decision before it’s a done deal.

Is it June 14th, yet?

First, a quote from our resident expert, Sr. Loan Officer of Nova Home Loans, Jeannie Bolger:

Effective June 11, 2012–for  any FHA note that was endorsed by HUD on or before May 31^st, 2009–qualifies for reduced MIP on a Streamline Refinance (No Appraisal).  Upfront MIP goes to .01% and Annual MIP will be .55%. Current upfront MIP is 1.75% and the Annual is 1.25%. HUGE SAVINGS.

What? You don’t speak Klingon or Mortgagease?

This may help.

The Federal Housing Administration (FHA) is a branch of the Department of Housing and Urban Development (HUD). The FHA was developed during the Great Depression as as an effort to stimulate the real estate housing market. The main purpose of the FHA is to encourage home ownership in the United States. To accomplish this, the FHA insures mortgages against the default of borrowers. 

Do you have a current FHA loan (note) that was endorsed (or closed) by HUD prior to May 31, 2009? If so, your FHA loan qualifies for a significant reduction in your upfront Mortgage Insurance Premium (MIP; an insurance policy that compensates lenders/investors for losses in the event of a defaulted mortgage loan) on a Streamline Refinance (No Appraisal).

The current upfront MIP is 1.75%. Let’s say your FHA Streamline Refinance of your home is for a new $100,000 mortgage. The FHA will charge you $1,750 upfront on the mortgage insurance premium (MIP). You pay this at closing and the $1,750 payment  automatically rolls  into your new loan balance.

On June 11, the new upfront MIP will be  .01%  This is a HUGE SAVINGS. Using the $100,000 new mortgage example above, you would only pay $1 !

Also beginning June 11, 2012, the FHA will reduce it’s 1.25% annual MIP ($1,250) to just .55 % for certain FHA borrowers (or $550)–more than a 50% savings!

This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates. By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process,” said Federal Housing (FHA) Commissioner, Carol Galante. Read the full HUD Press Release here.

Read Jeannie Bolger’s quote at the top of this post, again, and you’ll be amazed at how much Klingon Mortgagease you speak!

REMEMBER: For home loans endorsed by HUD before May 31, 2009

PLEASE NOTE: Loan application may be started prior to June 11^th, but FHA case # must be ordered after June 11^th, 2012 to qualify for program and reduced MIP.

Call Jeannie Bolger, Sr. Loan Officer Nova Home Loans, for more information:  (602) 550-8674

[Photo: Images_of_Money]

You may have seen my previous stories about the effort to put historic trollies on Grand Avenue as an economic development project. This low-cost project would help encourage new businesses along Grand Ave between Van Buren and Roosevelt –a trend that is already under way, but which could quicken and bring new income to Phoenix.

Since writing these stories, I joined the Grand Avenue Rail Project (GARP) board and we are working to get recognition of the great return on investment this represents.

It came to my attention this last week that the folks at the Trolley Museum, where they house the historic trollies which we hope to use on Grand Ave., have received a proposal from a neighboring city to take our trollies and add them to their local museum.

From what I am hearing, the Phoenix Trolley Museum folks, not getting a particularly warm feeling from City of Phoenix, are seriously considering taking this other museum up on their offer. From what I hear, some in the City really want to take back the trolley museum building at Margaret T. Hance Park so they can use it for other things. They have gone so far as to encourage the Trolly Museum to move, but they have not provided a viable place for them to go.

The sad part is that there is a very viable option, which the Museum folks and GARP founder Robert Graham have been advocating for: put the trolly museum on Grand Ave., along with an accompanying trolly line that will encourage new business on Grand.

Thus their frustration.

Here is my concern: if the Trolley Museum moves to some other city, it will be even more difficult to see the GARP idea through and it will represent yet another Phoenix stab at historic preservation. Even sadder is the fact that the city does not need to lay out much money to make this happen. They just need to partner on proposals to the federal government for transportation dollars, which can be used for this purpose.

The estimated cost to build the infrastructure, outfit a new museum on grand and operate the system: $10 million. I believe that the resulting new home sales, infill development and business starts along grand will be worth ten times that.

Please contact your city councilmen and let them know that you support the Grand Avenue Rail Project.