2019 FFIEC Median Family Income Update & Priority Members

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  • #47388
    ReadyNow
    Member

    I don’t know when the FFIEC Median Family Income is usually updated for the new year but since the government has had such a long, extended shut-down and it may take some time for the FFIEC to be updated, how does NACA deal with the 2019 FFIEC Median Family Income and Priority Status?

    1. Is 2018 still used or does NACA add a percentage to the 2018 to estimate for 2019? For example: Social Security received a 2.8% increase; does NACA use the same increase in a situation like this?
    2. Once Qualified and a Priority Member, do you always stay at that status even if a potential raise for 2019 could perhaps bring you slightly above later on?
    3. If there is this change in increased income due to a raise, do you have to go through Qualification again?

    #47397
    TTrumble
    Member

    Hello ReadyNow,

    The 2018 figures are the most recent data and will be used through all of 2019. (You can’t compute annual data for a year that just started.)

    If you income should change at any point prior to the submission of your bank application and that change takes you into non-priority status, your status will change. If you wish to have that additional income factored in so you can get a higher qualificatiuon amount, you will indeed have to be submitted to underwriting again for the higher qualification amount.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #47405
    ReadyNow
    Member

    Hello again @TTrumble Always a pleasure when you are able to provide answers.

    What you mention makes sense but the 2018 figures have been on the FFIEC website during 2018 so that’s why I thought perhaps they are updated yearly and maybe early during the year.

    Well, it’s a blessing in disguise that our department is changing the leveling up which may affect what level we are each at so they have held off on raises since they want to do both the raises and leveling up at the same time. This has been in the planning stages for the past year and a half and they want to try to get this done prior to the end of the first quarter. So running the numbers still keeps us below the Median Income.

    We were just called for an appointment for this Thursday since we uploaded the executed contract. So does this mean when we meet with our MC, we will receive a Loan Estimate form and complete the “Intent to Proceed” and submit Credit Access application all during this meeting? And if so, how long is it then submitted to the bank?

    #49836
    msrb8408
    Member

    Does anyone know when they normally update the FFEIC median income level. I am trying to see that if they increase it then I may be a priority member then. Right now, I am a non-priority member. I have passed the intake preparation phase now I am in the qualification process stage.

    What if the FFEIC updates the 2019 values and the MSA is now higher which puts me in priority status? What happens then? Will then then change me to priority status or would I stay at non priority.

    #49839
    Nelsont
    Member

    The levels are compiled after the year has completed. You will get 2019 data in 2020. The 2018 data that is available and is the most recent data and will be used for the entirety of 2019.

    The MSA values will only increase, if they increase at all (some decrease) by a value close to that of the standard inflation/cost of living which is a couple percent a best maybe. Unless you live in an area like the San Francisco Bay where everything is sky rocketing but, in most of California I think the housing costs are increasing faster than the MSA values.

    With that said, would a 2-3% increase really increase your options or buying power that much?

    #49840
    Al92
    Member

    For some members who are very close to become priority member if MSA numbers increase or lose their priority status due to income increase 2019 MSA plays a big role.
    I am also waiting for 2019 numbers. I believe the report will be available by the end of this month.

    #49841
    Peapod0609
    Member

    Nelsont, that does not make sense though, because we had the 2018 numbers IN 2018. I looked at them in early December of last year before my intake appointment in January. So it would stand to reason that it gets updated at some point during the year, not after the year is over.

    I have looked into this a bit, and I looked at the website where you get the FFIEC Median Income information, and it appears it was last updated in August of 2018. So I would assume it is possibly around August when the numbers update.

    As Al92 said, it can play a big role if you’re one of the members (like myself) that is very close to certain MSA thresholds. Such as that new NACA grant that knocks off an entire 1% off of your interest rate automatically if you’re at 80% or less of the median income in the MSA you are purchasing in. And I live in an expensive area, so this will be huge for me as it is not easy to find good homes in my price range. Every little bit helps.

    Right now, my wife and I are maybe a $2,000-3,000 a year over that 80% amount, we are right on the borderline. So, I am very, VERY interested in when the numbers update and it could make a huge difference for someone like me!

    #49843
    jogearce
    Member

    @Peapod0609 I did see the number for 2018 in 2018 as well. I tried reaching out to the FFIEC directly and they sent me to another department. Long story short, I couldn’t get an answer as to when those numbers update.

    #49845
    Peapod0609
    Member

    @jogearce wow, you really went all out there! From what I have gathered, it seems to update around August or September so hopefully it will be updated soon.

    #49846
    jogearce
    Member

    @Peapod0609 If an update happens on August/September, I wonder what year Naca will use…..

    #49847
    Nelsont
    Member

    OK that makes sense. I was thinking about fiscal numbers. Maybe the 2019 FY ends in July? The grant is not available in my area and I’m single with no supplemental income so being at 70% of the MSA median income limit it just did not occur to me even check. I can definitely see how being in your situation would be frustrating.

    #49849
    Al92
    Member

    New numbers will be used as soon as they become available. At least this is what my counselor told me.

    #49850

    I was also told that the new numbers would be used as soon as they are available. I was told they typically update mid-July.

    #49853
    Peapod0609
    Member

    Yes, I have heard that as soon as the new numbers become available, they will use the 2019 ones. I am hoping that they go up a lot, lol. I am purchasing in Lake County, IL which is fairly expensive. But the median income for that MSA has gone up steadily the last few years:

    2016 – $ 85,000
    2017 – $ 91,600
    2018 – $ 96,500
    2019 – TBD

    I hope the trend continues! Because 80% of $96,500 is $77,200. And my wife and I are in the $79,000 range this year according to my calculations. So we are close and really curious to see how our income will be calculated as well as when the new numbers come out lol.

    #49875
    countrycharm
    Member

    My husband and I are also waiting for the new numbers. We started looking last October and the 2018 MSA numbers were on the FFIEC geomap then. We were qualified as non-priority this year, but are probably priority members for 2019, hopefully. I think HUD may have the new 2019 numbers or just estimates? Not entirely sure here, but you may want to check them out! Here’s the link: https://www.huduser.gov/portal/datasets/il.html#2019

    Of course, we have to wait for the ffiec to update for Naca, hopefully soon!

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