Mortgage Talking Points

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

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/

This change is HUGE and expect more closing delays!  Okay, so what it really means is that after the loan is underwritten, but before funding, the file will need to be audited.  The underwriter has given you one set of conditions and you may get a 2nd set of conditions from QC.   So, who’s going to underwrite the loan a second time?  The other bigger here is that a “defects” report (for each individual loan file) must be submitted to management on a monthly basis. 

Effective July 1, lenders are required to:

1. Have a written procedure for approval or 3rd party originators (Brokers/Correspondents, etc)

2. New Requirements for QC on the PRE-Funding

3. New Requriements for QC Audit Review Process

Loans that will be considered HIGH RISK and subject to a higher percentage of pre-audit are:  90%LVT and higher; High-risk credit scores; investment properties; cash-out refis; 3rd party originations; loans originated by new employees! 

Mortgage Talking Points(r) for real estate agents:  “Don’t Close Late–Don’t Close Ugly”  about the rules that affect closing dates on purchase contracts! 

http://www.mortgagecurrentcy.com/members/mortgage-talking-points.php

Are You Prepared to Pass your Licensing Test?  A friend of mine, who has been in the mortgage business 17 years, failed it twice before getting a passing score!  

 http://shop.loanofficerschool.com/products/20-hour-safe-comprehensive-mortgage-loan-originator-course?ref=100315

To find a SAFE Act Prep Test near you! BTW - keep checking because there are 50 of these classes being offered throughout the country.

Unless you’ve been selling real estate on Mars for the past few years, you’ve heard about the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (called the SAFE Mortgage Licensing Act of 2008).

The SAFE Act mandates increased federal regulation of the mortgage lending industry, enhanced licensing requirements, and professional liability for mortgage loan originators (MLOs) who fail to comply. So if digging your way out of the recession were not challenging enough, now you have additional federal and state hurdles to clear.

Dave Reinholtz, LoanOfficer School and Prep Test trainer says: “Too many loan officers are unprepared for this new and added challenge to their professional lives. I’ve put our twenty years’ of experience to work and created a program that can give the MLO confidence and knowledge. I can’t guarantee that everyone will pass the test, but we don’t think that a better program exists.”

Fannie, Freddie, FHA and VA have made significant changes to the condo approval process–both for existing and new construction. 

www.MortgageCurrentcy.com (see Charts/Checklist Toolbar) has created a handy comparison chart to share with your real estate agents!  It will help determine what type of financing is eligible for which type of project. 

Are you lending in a UDSA area?  USDA says that they will accept ANY condo project that is approved by ANY agency–but the location of the condo has to qualify too.

A provision in the National Licensing Law and Registry required a “consumer” link so they can check to make sure a mortgage company, loan officer, etc are licensed (or had their license revoked).  The website has just been launched and here’s the link:

http://www.nmlsconsumeraccess.org/Home.aspx/MainSearch

Check it out and see if you have been listed yet .

Freddie’s HomeSteps special financing for their foreclosed properties has been extended to Jan 31, 2010.  Why don’t they just extend it for 6 months at a time–instead of month to month?  Updated MortgageTalkingPoints(r) posted on the site. 

http://www.mortgagecurrentcy.com/downloads/TalkingPoints_HomeSteps_111009.doc

Did you know that as of October 1, 2009, the FHA spot loan approval process for condo loans has been eliminated?  And that MOST condo project approvals will be invalid after that date too?

It’s gonna’ be UGLY–and the only projects that will remain on the list are those that have been approved after October 1, 2008.

If you have any FHA buyers on the fence, looking for just the right condo to purchase, they need to do something or they won’t be able to buy a condo - period - at least for a while.  Real estate agents need to advise condo sellers that FHA financing is going to be limited.

A new online seminar can now be viewed at www.LoanOfficerSeminars.com called “FHA Condo Approval Process: What You Need to Know” with audio, slides and all FHA supporting resources.

Mortgage Talking Points(tm) Flyer and email notice also included. 

Just when you thought things were getting better–the government takes it away!