Mortgage Center
Mortgage Matters with Scott Lyle of Fifth Third Bank
NEWS YOU CAN USE!
HUD Releases New FHA, Conforming Loan Limits
WASHINGTON, March 06, 2008 - The U.S. Department of Housing and Urban Development today published new FHA and conforming loan limits, based on median home prices as mandated by the Economic Stimulus Act signed by President Bush in February. New loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125 percent of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750. NAR expects the impact on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages.
Fifth Third Bank News
This morning J.D. Power and Associates released the 2008 Retail Banking Satisfaction StudySM, which profiles 82 of the largest financial institutions across the United States. As subscribers to this study we have access to detailed results, and I'd like to share some highlights with you:
Overall satisfaction with the banking industry declined significantly in 2008. The study shows that 18 of the 20 largest banks saw their national ratings go down this year. The good news is that Fifth Third Bank was one of only two banks that improved.Fifth Third Bank's overall satisfaction score increased by 2 points. This is significant considering that the 18 peer banks showing declines had an average drop of nearly 20 points. Our increased score shows that our efforts are being recognized and producing results. In the Southeast region, Fifth Third Bank ranked fourth, eclipsing the majority of our competitor banks in that region (including SunTrust, Wachovia, Bank of America and Regions).
We continue to see loyalty/commitment scores increase – in fact, they are up 7% from the 2006 study. Commitment has a direct impact on customers' future spending behavior – the stronger their level of commitment, the greater their customer value. According to the J.D. Power study, companies with higher levels of commitment are realizing returns nearly double those with lower levels of commitment.
Multiple studies highlight Fifth Third Bank's improved customer experience. Although every vendor has a different methodology for evaluating the customer experience, the theme is consistent. Recent J.D. Power, Gallup and Forrester research validates what our customers have been telling us – they've noticed that we are "improving our game" and the scores show that they value our efforts.
We have been saying all along that customers value a positive experience and that positive experience has a direct impact on the Bank’s bottom line. This information confirms everything we’ve been doing over the past two years to drive customer satisfaction and loyalty.
In these difficult economic times, customer experience becomes a primary differentiator in the highly competitive Retail banking marketplace. We should be proud of these results and continue to drive growth and build even stronger relationships with our customers every day.
More Great News!
Conventional FHA loans for the non-conventional customer
Even during non-traditional times, there are traditional, affordable mortgage products well suited for many homebuyers. Fifth Third Bank's FHA loans are the perfect choice for customers who do not qualify for typical conforming mortgages. These government insured loans are ideal for:
- First time homebuyers
- Those with little money for a down payment
- Customers who desire low monthly payments
- People worried about rising monthly payments
- Clients concerned about qualifying for a loan
- Those with less than perfect credit
FHA loans feature many attractive advantages for homebuyers such as:
- Smaller, required down payment (3% of purchase price, funds can come from a family member, employer, or charitable organization as a gift)
- An easier qualification process, thanks to government insurance
- Qualification for less-than-perfect credit, even past bankruptcies
- No median income requirement or geographic restrictions
- 95% cash-out refinance available (traditional agency maximum is 90%)
- Upfront mortgage insurance may be financed or paid by seller
- Purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (must be on a permanent foundation)
Senior Market Place
Mortgage Loan Officer
5/3 Bank
