Securing a home in the Magnolia State - Mississippi can be your next major investment venture. Thus, you will need to become acquainted with the mortgage laws and other characteristic features of mortgage prevalent in the state in order to make your enterprise worthwhile. The crucial aspects of mortgage in the state, the relevant laws and the like are discussed here to help you get an overview of mortgage in the state.
- Presently, interest only mortgages make up 17 percent while adjustable rate mortgages i.e. ARMs make up 46 percent of the loans in the state.
- Since 2002 the housing prices have been increasing at the rate of five percent per year.
- There has currently been a trend towards choosing unconventional loan options due to comparative hikes in housing costs in comparison to incomes. Moreover, the home ownership aspirants and purchasers of new homes have been availed of greater financing options than ever before.
- The rules and regulations regarding mortgage in the state are to be found in the Mississippi Mortgage Consumer Protection Act (MMCPA), Chapter 19.
- No mortgage tax is there in Mississippi. Real estate taxes are payable on an annual basis. Taxes need to be paid by 1st February. Otherwise, the taxes will be considered as delinquent for the preceding year. There is, however, an option of payment of taxes in installments i.e. the first half is due on February 1st, one fourth is due on May 1st and another one fourth is due on July 1st.
- All aspects of Mortgage Brokerage are looked after and regulated by the Mississippi Department of Banking and Consumer Finance ( DBCF).
A non-refundable license fee of $750 needs to be paid by the applicants wishing to secure Mortgage Broker license in the state. Alongside a $25,000 Surety Bond is also needed to be provided in favor of the state. The applicants should also provide either:
In case of renewal of a license there is the need for the license holder to attend twelve hours of approval continuing education classes.
- proof of having two years experience in the mortgage lending business, or
- take an examination.
The applicants for mortgage broker's license also have to provide a set of their fingerprints from some local law enforcement agency. This will be used along with a full criminal history investigation by FBI.
- The National Association of Mortgage brokers (NAMB) has set up a communications network for helping out those who want to obtain a Mortgage Broker License and also for the existing Mortgage brokers in the state. The Mississippi Association of Mortgage Brokers ( MAMB) is an affiliate of the NAMB.
- In Mississippi, foreclosures can be handled both in-court and out-of-court and the process typically lasts around 3 - 4 months.
The out-of-court foreclosure is, however, more popular.
Both judicial and non-judicial foreclosures are permissible in the state, the non-judicial process being the most common.
- Usually the borrower has no right of redemption after a valid foreclosure sale has taken place. Deficiency judgments are also not allowed in the state.