Mortgage Talking Points

Easy Way to Keep Updated with UR Lenders

karen — Tue, 31 Aug 2010 16:15:07 +0000

Let’s say you do business with 5 or 6 lenders. You (or your compliance department) get email updates. Maybe you get them one at a time. Maybe you get 10 changes at one time. An easy way to keep track of all lenders, all at one time is by subscribing to www.LendingArt.com. It’s free and when you register, you can pick and choose which lenders you want updates from. It’s just that easy.

Fannie Re-Underwriting Requirement SEL 2010-11

karen — Tue, 17 Aug 2010 22:31:48 +0000

Borrowers are in “financal purgatory” util one minute AFTER closing because Fannie just announced that mortgage loans may have to re-underwritten if the back end ratio exceeds 45% OR (yes, it’s an OR) the back end ratio increases by 3% (or more) from the original ratio.

Yeah, what that means is that even if they had a 38% total debt-to-income ratio, they added new debt (or income was reduced for some reason), and the new ratio is 41%, the new loan/loss of income must be documented and the loan must be re-underwritten prior to closing.

While this “officially” does not go into effect until 12-1-10, Fannie wants lenders to start implementing now. Consider being pro-active and warn your clients not to spend one single dime–or at least let you know if any, and I mean any, changes to their income or debt.

HUD Seeks Your Comments on 3 Biggies!

karen — Wed, 04 Aug 2010 16:14:29 +0000

There’s been a lot of conversation about changing the

structure of FHA loans–and we wanted to let you know

it hasn’t happened…yet!

Here’s a quick synopsis on HUD Press Release 10-150:

HUD Seeks Public Comment on Three Initiatives to Boost FHA Capital Reserves

HUD is accepting comment on the following policy changes:

1. 10% down payment requirement for new FHA borrowers with credit score below 580.

2. Seller concessions to be reduced from 6% to 3%.

3. Tighter UW standards for manual underwrites.

#2 is giving many of us heartburn as it will be the very audience HUD swears to serve, the affordable housing market, that will suffer the most with this change. We would love to see tiered system come out of this instead of a flat across-the-board 3%.

Here is the link to the actual notice in the Federal Register:

http://edocket.access.gpo.gov/2010/pdf/2010-17326.pdf

Speak now - or forever wish you had!

To make comments electronically go to: http://www.regulations.gov

Make some noise!

FHA Loans Are Assumable-Heres How!

karen — Thu, 29 Jul 2010 19:06:26 +0000

(All info provided assumes existing FHA loan was originated

on or after December 15, 1989)

An FHA assumable loan can be an attractive feature on a listed home

for both buyer and seller; especially in today’s declining value market.

Here are some quick facts on FHA assumptions:

· Buyers must credit-qualify to assume existing loan for remaining term.

· Buyer will obtain assumption package from current loan servicer.

· Loan fees are lower than a new-loan origination.

· Sellers will be released of liability.

· No appraisal required.

· Investors do not qualify for assumptions.

· Cash contributions from the seller to facilitate the assumption are not allowed.

· Seller may pay buyer’s closing costs and processing fees.

· The borrower may use secondary financing and borrowed funds.

· Assumptions for use as second home is prohibited UNLESS there is a hardship due to no affordable rental housing available within a reasonable commute distance to employment.

Be sure to do the research on a listing to determine:

· Is this home currently financed with an FHA loan?

· What is the current balance on the loan?

· What is the remaining term of the loan?

· What is the monthly payment?

What is the interest rate on the loan?

Fannie Asks Appraisers For Interior Photos

karen — Mon, 12 Jul 2010 17:39:49 +0000

On 9-1-10, it becomes official–Fannie (freddie will probably follow) will require appraisers to include interior photos of the Kitchen, all bathrooms, main living area, physical deterioration areas, remodeling projects or incomplete restorations!

Nope, they will not make an adjustment for “clutter” (or they are not supposed to anyway) but expect adjustments for renovation projects, worn carpet/floors, holes in walls, water damage in bathrooms, etc.

This change is big and interior issues can no longer be “ignored”. More info www.MortgageCurrentcy.com

New Face Book App - Mtg Talking Points

karen — Thu, 01 Jul 2010 20:41:42 +0000

You know the Mortgage Talking Points(tm) Flyers that you know and love? We’ve created a Face Book version (which is shorter) that you can click a button a auto-post to your wall. Because of the limited number of characters that FB allows, it’s the condensed version BUT they always end with “Call me for more details.”

Great info for your real estate agents and affinity partners.

VA Will Lend On FHA Approved Condos-Check which Ones & Let Agents Know

Tracey Rumsey — Wed, 09 Jun 2010 21:45:30 +0000

We just got done telling you for the last 5 months that the only way we could do a VA loan on a condo was if the project was on the VA approved list. This change is a big deal for the next 6 months and will open up the number of properties available to veteran buyers.

It’s good news, although it will only help us with VA condo loans on most FHA approved projects until December 7 of this year. That’s because the majority of FHA approved projects (those approved prior to October 1, 2008) have to be recertified under the new guidelines (the ones that VA doesn’t like) by December 7.

So for now, it is possible to do a VA loan on a condo under one of the following circumstances:

1. The project is on the VA approved list. http://condopudbuilder.vba.va.gov/2.2/frames.html]

2. The project is on the FHA approved list and was approved before December 7, 2009. : https://entp.hud.gov/idapp/html/condlook.cfm]

At least it may save a few deals between now and then.

Checking Credit/Debts Prior to Closing Eff. 6-10-10

karen — Tue, 01 Jun 2010 21:34:30 +0000

June 1 is when Fannie/Freddie will require that you check to make sure that your clients have not incurred any new debts…or if they have a lower credit score, what is the reason is for the lower score. I found that Informative Research just launced a service called “PreCloseCredit” which offers a comparison and a summary of any changes from the initial credit report. Might want to check it out (no, i don’t have any affiliation with them) just thought it might help you out. http://www.informativeresearch.com/

Clients Who Sold Home w/ Short Sales-Good News

karen — Tue, 11 May 2010 18:13:51 +0000

Fannie never had an official policy about how they would treat people who had a short sale or a deed-in-lieu of foreclosure in their past. Well, SEL 2010-05 spells it out for you. Basically, they have 3 waiting options and 3 down payment options. 1. 2 year waiting time and 20% down; 2. 4 year wait and 10% down; 3. 7 year waiting time and 5% down. Effective 7-1-10.

Extenuting Circumstance Rule (for those who has a pre-foreclosure): Job loss, divorce, decrease in income, increase in debts - 2-years and 10%,

Let’s talk about re-establishing credit after a short sale or deed-in-lieu. In addition to these below, the minimum credit scores must be met (varies between lenders)

1. Waiting period is defined as from the date of the short-sale/deed, to the date of application

2. Must receive automated underwriting approval

3. Establish “traditional” credit thru banks, finance and credit cards

Real Estate Agents should let their clients (who have or are selling home with short-sale) of the waiting time periods too.

USDA Funding Still Waiting for Senate/President

karen — Wed, 28 Apr 2010 20:14:21 +0000

We’re thru the first hurdle–congress authorzied funding! But it remains to be seen, how much!