Archive for March, 2009

Monthly Archive

Tue 24 Mar 2009

Don’t Let Rule & Reg Dates Sneak Up On You!

Posted by karen under Uncategorized
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Fannie, Freddie, FHA and VA usually gives you some notice when program or underwriting rules go  into effect.  Here are some dates that are just around the corner! 
April 1, 2009 - FHA eliminates 95% Cash Out refinances.  Order your case numbers by March 31–If you order on April 1, it’s too late!  More details will be in the April 10, 2009 Rules and Regs Issue.
 
April 1, 2009 - Start closing loans using Fannie DU Refi Plus
 
April 1, 2009 - Freddie’s Relief Refi Mortgage goes into effect!  Stay tuned–we are hearing that some servicers will be allowing the broker/banker, who originated the loan, to get involved!  Start with Flagstar and call your other investors to find out! 
 
May 1, 2009 - Start Using New VA Loan Summary Sheet  
 
May 1, 2009 - Home Valuation Code of Conduct – Check with your lenders-each one has their own rules, including some who will be requiring you to use an appraisal management company for FHA and VA (which is stupid because the “code” specifically exempts these two appraisal types)! 
Complete articles with explanations can be found at www.MortgageCurrentcy.com

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Mon 16 Mar 2009

FHA Limits Cash-Out Refis’ to 85% - 4-01-09

Posted by Tracey Rumsey under FHA
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FHA just released ML 2009-08 - Limits on Cash Out Refinances - going to 85% with case numbers after April 1, 2009. The news is that the 95%’s cash out refi’s are going away - for now!

Plus the 85% will be figured on the Combined LTV!

The big deal here is to order your case numbers before April 1 for anything in your pipeline!!!

If you have any clients “on the fence”, waiting for the rates to decrease, or have a subordinated financing that exceeds 85%, at least get the case number ordered BEFORE April 1 and they can make up their mind and lock later.

Cash-Out CLTV Clarifications

  • New Subordinate Financing: New subordinate financing + new FHA first mortgage + any new junior liens cannot exceed 85% CLTV.
  • Existing Subordinate Financing: May remain in place, subordinate to new FHA first mortgage, with no regard for CLTV.
  • Modified Subordinate Financing: Newly modified existing subordinate financing that has to be re-executed at closing with new FHA loan is not considered a new subordinate lien. It is treated as existing subordinate financing.

Other Reminders

  • Delinquent borrowers are not eligible
  • Must have owned the property at least 12 months
  • If owned less than 12 months, value based on the sale price or appraisal–the lower of the two
  • Two appraisals required when loan amount exceeds $417,000 (before UFMIP) and is in declining area
  • No co-signers or non-owner occupants can be added to meet credit underwriting guidelines

Check your pipeline! Check your pre-quals! You need to get in touch with them NOW since you only have 15 days left until April 1.

Mortgage Currentcy Staff
Mortgage Currentcy dot com

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