Happy New Year

What is happening today in mortgage lending:
I t has been quit a year. I think when we look back on 2008 and recall all the news breaking stories in the mortgage industry it would be hard to come up with a year that was so full of events. It has been a hard year for most of us, but hopefully we are all a little wiser from the experience.
2009 what will it bring? It is looking like lower interest rates. The Fed will start buying mortgage backed securities in the early part of January. This could have even more impact on pushing rates lower. Once we all get used to the new mortgage guidelines (ever changing) I think we can make it a good year. I like to look to 2009 with hope and optimism.
Thank you for all your business in 2008 and here is to a much better year. Happy New Year!
2008: Now that was a year for the books

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

The Refinancing Dilemma for Homeowners

What is happening today in mortgage lending:

I found this article in the NY Times that give Homeowners some good ideas about refinancing. The advice may surprise you.
Mortgages - The Refinancing Dilemma for Homeowners - NYTimes.com

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

FHA issues two new mortgagee letters

What is happening today in mortgage lending:
FHA issues two important ant mortgagee letters
Mortgagee Letter 08-40 This changes or in effect for case numbers order on or after Jan 1, 2009. This mortgagee letter discusses Refinance Calculation for calculating loan amount and other Refinance issues.

Mortgagee Letter 08-41 Termination of FHASecure Program.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie requires new DTI and FICO score for government loans; HUD updates Appraiser requirements

What is happening today in mortgage lending:
Announcement 08-35 December 18, 2008
Amends these Guides: Selling
Credit Score Requirements for Government Loans, Debt-to-
Income Ratio Changes, Community Seconds® Rider, and
Seller/Builder Affiliation Policy
Credit Score for all desk top underwriters will require a 580 FICO score and DTI cannot be more than 45% on government loans. Check out additional information review announcement by clicking on attached link

Revised Eligibility Requirements for FHA Roster Appraisers mortgagee letter 08-39


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Freddie Issues New Bulleting 08-06

What is happening today in mortgage lending:
Freddie Mac Issues Bulletin 80-06
Both selling and Servicing requirements are amended in this Single-Family Seller/Servicer Guide (Guide) Bulletin.
With this Bulletin, we are making the following changes to our selling requirements:
■ Updating the Guide to reflect the 2009 maximum original loan amounts for Mortgages eligible for sale to Freddie Mac:
􀂉 Maintaining base conforming loan limits for 2009 at the current levels
􀂉 Increasing conforming loan limits for Mortgages secured by properties in certain high-cost areas (super conforming Mortgages) and revising loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit TLTV (HTLTV) ratio requirements for super conforming Mortgages secured by 1-unit properties located in designated high-cost areas where the maximum loan limit exceeds $625,500
■ Making changes regarding the Uniform Instruments, including updating revision dates for the Arizona Deed of Trust and the District of Columbia Deed of Trust, and updating authorized changes for the Maine Note
■ Making minor changes to our State anti-predatory lending requirements
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Articles for Mortgage Borrowers to Check Out

What is happening today in mortgage lending:
Here is an article that you may want to show those borrowers that are fence setting waiting for rates to go down.
Will 4.5 Percent Interest Rates Soon Become a Reality?

Have you had a self employed borrower who does not understand why they are having to provide so much more documentation compared to when they got there loan in 2005-2007? You may want to show them this article Mortgages Less Easy to Come By for the Self Employed Borrower
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

The Future of Mortgages; The Fed's Two Day meeting

What is happening today in mortgage lending:
The Future of Residential Mortgages (Maybe)

At Fed's 2-Day Meeting, Target Rate Could Be Sliced to Near Zero



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Mortgage Rates continue to go lower?

What is happening today in mortgage lending:

We may get to enjoy lower interest rates for more than a couple of hours. Check out these articles.

BlackRock’s Fink Proposes Mortgage Purchases to Obama (Update1)

Fed Intervening To Cut Mortgage Rates


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

What Doc's are needed to Do a IRRRL?

What is happening today in mortgage lending:
With rates being so good don't miss the opportunity to do some FHA streamline loans and VA IRRRL loans. I have already given you a list of what is required for an FHA streamline loan you can also find that list on my blog (under FHA menu). Here is a list of what is required for a VA IRRRL:

Lender Submission Form

Copy of Lock

IRRRL

Final 1003 and addendums ( Matching IRRRL )

Initial 1003 and addendums

Mortgage rating ( 12 months )

CAIVRS ( both borrowers )

Copy of original note

Payment Coupon

Verification of SS number

Certificate of eligibility

Loan number

Payoff ( current )

Title Report

Federal Collection Policy Notice

VA Related Indebtedness ( completed, doesn’t need signature )

Hazard insurance

Mortgage Loan origination agreement

Good Faith

TIL

borrowers Authorization


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com<

HUD changed FAQ site; More on RESPA Requirements

What is happening today in mortgage lending: Did you see this from HUD yesterday? (I have updated the QandA on my site)

FHA will begin using a new Frequently Asked Questions (FAQ) service as of December 8, 2008. This change required some modifications to the look and feel of the FAQ site ( http://faq.fha.gov ) as well as the need to use a new primary email address for email inquiries to FHA.

The new primary email address for FHA is now: info@fhaoutreach.com

In addition, clients may also utilize the "Contact FHA" tab on the FAQ site to submit questions directly to FHA.

FHA believes these changes will improve our ability to communicate with our clients and look forward to responding to your needs.

AND

Agencies Participating in HUD’s Housing Counseling Program:

New RESPA Requirements

HUD recently announced new regulatory requirements regarding the Real Estate Settlement Procedures Act (RESPA). For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read, standard Good Faith Estimate (GFE) that will clearly answer key consumer questions, including loan terms and closing costs. A revised HUD-1 Settlement Statement will allow borrowers to easily compare their final closing costs and loan terms with those listed on the GFE. The changes are estimated to save consumers an average of $700.00 in closing costs and encourage consumers to choose lowest-cost loans.

The new GFE will be three pages long, including an instructional page for consumers, and will correspond with specific sections of the new HUD-1 form for easy comparison. The first page of the GFE will prominently display total estimated settlement charges so the consumer can easily compare loan offers. Among other benefits of these changes, Yield Spread Premiums will be disclosed more effectively and junk costs will be more difficult to hide.

Loan originators will be required to provide borrowers their GFE three days after the loan originator's receipt of all necessary information. HUD will specify the costs that can change from this original GFE, and by how much.

HUD will require the new standardized GFE and HUD-1 beginning January 1, 2010; however, lenders can implement the new forms sooner if they choose. View these forms and the press release, followed by a fact sheet about the new rule, at the link below:

http://www.hud.gov/news/release.cfm?content=pr08-175.cfm

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

More on Fannie and Freddie; FHA streamline tip

What is happening today in mortgage lending:
Modifying the Mortgage Giants

Tips on FHA Streamline Loans
What is the LTV/CLTV limit on a Streamline Loan? A Streamline loan without an appraisal has no LTV limit. Your max calculation is based on the previous loan amount + new upfront mip (see my link in the FHA menu for Streamline loan without an appraisal worksheet link). A streamline loan with an appraisal at the begging of the year can not exceed the LTV of 100% with MIP. There is not CLTV limit in regards to either a streamline loan with an appraisal and without.
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

MIP and FHA Streamline Loans

What is happening today in mortgage lending:
Effective with case numbers issued on or after October 1, 2008, through September 30, 2009:
Upfront MIP Streamline Refinance (all types) 1.50%
(UFMIP) Annual (Monthly) - Based on LTV*
(excluding UPMIP) and loan term
> 15 Year Term
Streamline Refinance (all types) > 95.00 = .55
< 95.00 = .50 > < 15 Year Term 90.00 = .25
< 90.00 = None
* LTV must be computed to two decimals (e.g., 95.65)
• Enter "9999" for credit score in Pronto


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Refinance Tools

What is happening today in mortgage lending:
The current rates will bring a lot of Refinance business: Here are some tools that should help you
FHA
FHA has four worksheets you need when you refinance a loan. Choose between them for your scenario. These links are also on my blog in the FHA Menu on the left hand side of the screen under forms.
No Cash-Out/Non Streamline – Refinance Maximum Mortgage Worksheet #1
Cash-Out/Non Streamline - Refinance Maximum Mortgage Worksheet # 2
Streamline Refinance Without Appraisal - Maximum Mortgage Worksheet # 3
Streamline Refinance With Appraisal - Maximum Mtg. Worksheet #4


VA
VA has a chart that can help you decide which Refinance option is best for your loan.
VA REFINANCE MATRIX

Once you decide if IRRRL is your option are Jumbo you need one of these work sheets

INTEREST RATE REDUCTION REFINANCING LOAN WORKSHEET
I can send you a copy of the Jumbo worksheet


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com/em>>

Time for the Fed to start manipulating mortgage rates? Don't forget Income waiver weeks from elimination

What is happening today in mortgage lending:


Time for the Fed to start manipulating mortgage rates? | Money & Company | Los Angeles Times

Don’t forget we only have a few weeks left before DU 7.1 and LP’s update will eliminate the ability for no income verification. If you have a loan in process that will be impacted by these changes get your loan in as soon as possible.



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie issues Bulletin; HUD Final Rule RESPA

> What is happening today in mortgage lending:
Freddie Mac issues Bulletin announces manual underwriters can not go over 45% DTI and more credit guidelines as well as introducing a new Appraisal form and more.

New HUD Final Rule:



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 203 and 3500 [Docket No. FR–5180–F–03] RIN 2502–AI61

Real Estate Settlement Procedures Act (RESPA): Rule To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs
AGENCY: Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.
ACTION: Final rule.
SUMMARY: This final rule amends HUD’s regulations to further RESPA’s purposes by requiring more timely and effective disclosures related to mortgage settlement costs for federally related mortgage loans to consumers…
To read this final rule in its entirety please visit: http://edocket.access.gpo.gov/2008/pdf/E8-27070.pdf

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com/em>

More on Foreclosures and Modifications; What we need

What is happening today in mortgage lending:
At least during the Holiday season we can take a rest from the number of foreclosures 2008 Lender Announcements and Letters Lender Letter 04-08 Insurance for a temporary left on foreclosures and Evictions

HUD expands mortgage modification program - MarketWatch

News from our office
Please remember when sending you conditions in that we will not send a file back to underwriting unless all conditions are sent in at the same time. If you feel you need an exception to this please contact Jan or myself. By doing this it will cut back on the number of times a file has to go back to an underwriter and speed the process up.

Also remember that we need the following documents in order to submit your file the first time.
1-1003
2-Addendum to 1003 page 1 and 2 for government loans
3 -1008/MCAW or VA Analysis Workseet
4-GFE
5-Income verification
6-Asset Verification
7-Credit Report
8-LDP/GSA Exclusionary List
9-Social Security Number
10-AUS Findings from DU or LP
11- Purchase/Sales Contract and addendums if applicable


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.co

More on DU Version 7.1 and LP; Hope for Homeowners program improved

What is happening today in mortgage lending:
Fannie will be up dating to DU Version 7.1 click and review the summary. Notice they say “The income and employment documentation requirements will be updated with DU Version 7.1. The following will be the minimum income/employment documentation levels issued by DU Version 7.1:"
Your income waiver will be going away. Remember Freddie Mac has also announced effective Dec 7 Accept Plus loans will be going away.

The Hope for Homeowners program has not taken off with Lenders. That may change HUD expands mortgage modification program New rules will lower payments, encourage more lenders to participate

Don’t forget the 2008 Temporary loan limits are going away. All loans must be locked and delivered to us by Nov 28th and closed and funded by Dec 15th.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie Mae has Preview version of Seller Guide; New idea on sharing equity for homebuyers and sellers

What is happening today in mortgage lending:
Do you find at times your really would like to know what Fannie Mae Guidelines are vs. the Lenders? Fannie Mae just issued LL 03-08 Bulletin that allows you to view a preview version of “Fannie Mae’s Seller Guide”. Click on this link and it will take you to Allregs introductory page that allows you to view the current Seller Guide. If you don’t have time today I have added this link to my blog just click Conventional Menu and it is under favorite web sites on left hand side

Another thought on working around the tight market "REAP" the Benefits of Equity Sharing -- Buy, Sell and Profit from Previously Unsalable Homes
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.comem>

Gift to Oil Industry; How to Help People whose Home values are down

What is happening today in mortgage lending:
Gift to Oil Industry Rushed Into Federal Register Before Bush Leaves Office


How to Help People Whose Home Values Are Underwater

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

New Appraisal Form; Rates Sideways to lower

What is happening today in mortgage lending:
Fannie Mae introduces a new form to go with the appraisal
Appraisal-Related Policy Changes and Clarifications Fannie Mae Announcement 08-20

Rate Probability: Sideway to Lower






Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Disclosure Rule; FDIC Details Plan to Alter Mortgages

What is happening today in mortgage lending:
Mortgage disclosure rule beefed up
FDIC Details Plan To Alter Mortgages


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

HUD Homes

What is happening today in mortgage lending:
With the market getting tighter the need to find a 100% loan is becoming increasingly harder to find. Don't forget HUD homes. The borrower finds a realtor that deals with HUD homes and makes a bid on a property that is owned by HUD. If the bid is accepted the down will be specified in the sales contract usually the down is $100, $500. If you want to know more go to

About Buying HUD Homes


Find a HUD Property
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com/

Freddie Mac announces new Loan Limits for 2009; More help for struggleing homeowners

What is happening today in mortgage lending:
Citigroup offers up to $20B in mortgage relief

UPDATE 3-U.S. housing agencies to widen homeowner help

Ahead of the Bell: Mortgage hearing
From Freddie Mac

We are announcing that for 2009, we are maintaining the base conforming loan limits at the 2008 levels and increasing the conforming loan limits for certain high-cost areas based on the Federal Housing Finance Agency’s (FHFA) announcement on
November 7, 2008.

Base Conforming Loan Limits
The base conforming loan limits for 2009 will remain at the following current levels:
No. of Units Maximum Base Conforming Loan Limits for properties NOT located in Alaska, Hawaii, Guam & U.S. Virgin Islands Maximum Base Conforming Loan Limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
1 $417,000 $ 625,500
2 $533,850 $ 800,775
3 $645,300 $ 967,950
4 $801,950 $1,202,925
High-Cost Area Loan Limits
Last month we announced our requirements for the new higher loan limits in certain high-cost areas as set forth in the Housing and Economic Recovery Act of 2008 (HERA).
HERA raises the conforming loan limits in certain high-cost areas (where 115 percent of the area median house price exceeds the applicable base loan limit) to the lesser of 115 percent of the area median home price or 150 percent of the base conforming loan limits. We have termed mortgages that will be purchased under these higher limits as “super conforming” mortgages. Since the base conforming loan limit for one-unit properties remains at $417,000, the maximum conforming loan limit in designated high-cost areas is $625,500 for one-unit properties.
The maximum loan limits in designated high-cost areas for properties located in Alaska, Guam, Hawaii, and the U.S. Virgin Islands are higher than the base of $625,500 for one-unit properties.
In all instances, the loan limits for 2- to 4-unit properties are also higher.
For purposes of determining these high-cost areas, FHFA used a nationwide set of county median home prices estimated by the Federal Housing Administration. Visit the FHFA site for details on the 2009 High-Cost Area Loan Limits and 2009 Loan Limits for All Counties.
Super Conforming Mortgages
All Seller/Servicers are eligible to deliver super conforming mortgages provided they comply with Chapter L33 of the Single-Family Seller/Servicer Guide. Super conforming mortgages with note dates on and after October 1, 2008, are eligible for Freddie Mac settlements on and after January 2, 2009.
Effective January 2, 2009, we will purchase super conforming mortgages up to the following loan limits.
No. of Units 2009 Maximum Original Loan Amount for Super Conforming Mortgages*
1 $ 625,500
2 $ 800,775
3 $ 967,950
4 $1,202,925
*These are the maximum potential loan limits for designated high-cost areas. Actual loan limits for specific high-cost areas may be lower. In addition, the super conforming limits will be higher in certain high-cost areas in Alaska, Guam, Hawaii and the U.S. Virgin Islands.
Specific maximum LTV/TLTV/HTLTV limits are based on loan purpose, number of units, and occupancy. For designated high-cost areas where the maximum loan limit exceeds $625,500 for a one-unit property mortgage, the maximum LTV/TLTV/HTLTV ratio is 80 percent. Additional details will be communicated in an upcoming Single-Family Seller/Servicer Guide Bulletin. For more information visit our Super Conforming Mortgages Web page.
Operational Impacts
Because the 2009 base conforming loan limits are unchanged from 2008, you can deliver mortgages that are within the base conforming loan limits, with no changes to your operational procedures or processes, including Loan Prospector® assessment and commitment and delivery.
We are in the process of updating Loan Prospector and the selling system to accommodate super conforming mortgages and will provide you additional details about those changes soon.


FHLMC and FNMA loan limits for next year
1 unit 2 unit 3 unit 4 unit
Beaver County 99999 UT $417,000 $533,850 $645,300 $801,950
Box Elder County 14940 UT $417,000 $533,850 $645,300 $801,950
Cache County 30860 UT $417,000 $533,850 $645,300 $801,950
Carbon County 39220 UT $417,000 $533,850 $645,300 $801,950
Daggett County 99999 UT $417,000 $533,850 $645,300 $801,950
Davis County 36260 UT $417,000 $533,850 $645,300 $801,950
Duchesne County 99999 UT $417,000 $533,850 $645,300 $801,950
Emery County 99999 UT $417,000 $533,850 $645,300 $801,950
Garfield County 99999 UT $417,000 $533,850 $645,300 $801,950
Grand County 99999 UT $417,000 $533,850 $645,300 $801,950
Iron County 16260 UT $417,000 $533,850 $645,300 $801,950
Juab County 39340 UT $417,000 $533,850 $645,300 $801,950
Kane County 99999 UT $417,000 $533,850 $645,300 $801,950
Millard County 99999 UT $417,000 $533,850 $645,300 $801,950
Morgan County 36260 UT $417,000 $533,850 $645,300 $801,950
Piute County 99999 UT $417,000 $533,850 $645,300 $801,950
Rich County 99999 UT $417,000 $533,850 $645,300 $801,950
Salt Lake County 41620 UT $600,300 $768,500 $928,950 $1,154,450
San Juan County 99999 UT $417,000 $533,850 $645,300 $801,950
Sanpete County 99999 UT $417,000 $533,850 $645,300 $801,950
Sevier County 99999 UT $417,000 $533,850 $645,300 $801,950
Summit County 41620 UT $600,300 $768,500 $928,950 $1,154,450
Tooele County 41620 UT $600,300 $768,500 $928,950 $1,154,450
Uintah County 46860 UT $417,000 $533,850 $645,300 $801,950
Utah County 39340 UT $417,000 $533,850 $645,300 $801,950
Wasatch County 25720 UT $417,000 $533,850 $645,300 $801,950
Washington County 41100 UT $417,000 $533,850 $645,300 $801,950
Wayne County 99999 UT $417,000 $533,850 $645,300 $801,950
Weber County 36260 UT $417,000 $533,850 $645,300 $801,950

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

FHA announces 2009 Loan Limits

What is happening today in mortgage lending:

FHA issues Mortgagee Letter 08-36 announces 2009 Loan Limits

Attachment I -- FHA Loan Limits for Areas AT CEILING AND ABOVE

Attachment II -- FHA Loan Limits for Areas BETWEEN CEILING AND FLOOR

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Goverment's mortgage relief program gets few takers; In Modeling Risk, the Human Factor

What is happening today in mortgage lending:
We now have the elections behind us. Let’s hope that we can get a greater focus on fixing the country’s economic problems.
Have you been wondering about FHA’s Hope for Homeowners this article will give you some insight Government's mortgage relief program gets few takers - Los Angeles Times
I found this article interesting In Modeling Risk, the Human Factor Was Left Out - NYTimes.com


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fed says credit conditons continue to tighten; Lenders Shift strategy as they ease mortgage-

What is happening today in mortgage lending:
UPDATE 1-Fed says credit conditions continue to tighten
Lenders shift strategy as they ease mortgages - Sacramento Business, Housing Market News | Sacramento Bee



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

What is happening today in mortgage lending:
The Press Association: More mortgage rate cuts forecast

How the Fed's lower rate affects consumers - Business - Belleville News Democrat

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

White House to Banks; Bond Spreads; Calculating Income

What is happening today in mortgage lending:
White House to Banks: Start Lending Now

Fannie, Freddie Mortgage-Bond Spreads Hit Widest Since March
Processing Tip
The credit freeze has made underwriting more particular than ever. Here are a few pointers to help you get your loan approved the first time. Loans that loose their Accept status when they are underwritten usually loose this because the underwriter calculates the income differently than you did. Many times if the underwriter knew how you calculated the borrowers income they would accept it. If I was processing a loan I would always include the calculation of income in my loan file. Make sure you know the guide lines regarding the income calculation. If you want an exception from the guidelines be sure and state the reason you feel the borrower deserves this exception. Example: overtime usually always requires a two year history. Your borrower has only been on the current job 12 months. However they had overtime in the previous job. In this scenario include a VOE of both jobs documenting a two year history. Don’t assume because an employer requires over time that they underwriter will accept that as a reason to have less than two years.

I also find this IRS web site in determining what income is tax deductable or how it should be reported to be helpful - IRS Frequently Asked Questions . Attached is an income worksheet that you could use to calculate income and include in your loan file

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Mortgagage Shock, Adjustable rates? What is a blog?

What is happening today in mortgage lending:
Mortgage Shock?Ajustable rates tied to LIBOR, COFI and other idex


What is a blog?
It is now been just a little over 6 months since I started my blog. When I first started I hardly knew how to spell blog and wasn’t really sure how it worked or why I would want one. The deciding point was when I would get calls from brokers who would ask me for information that I had sent out in a daily email maybe days or weeks ago. At that time I wasn’t keeping my information and would have to start the research process all over again in order to help them. That is what made me decide to start a blog. I thought it was a way to house all my information.

A blog is intended to be interactive. I seldom have comments posted on mine although that is the intent of a blog. I definitely would love to see you post your opinions. I was surprised when the Sr. Vice President of AllRegs posted a comment. I wouldn’t have expected him to see my blog. I have found a blog can be far reaching and can definitely give your customer a feeling of familiarity towards you. When I see people that are reading my blog it is like we are instant friends and we kind of cut through the; who am I, what can I do for you stuff and get right to the point.

It has helped me be more available to my brokers. If I get a call with some complicated questions and I am in my car with no access to the internet it could be tough. My blog lets me direct my broker to the requested information so they can see what I am talking about when answering their questions. If someone needs a form I can say go to my blog and click. If someone wants very specific information about FHA Limits, appraisers, condos, termite certifications etc, I can say go here and click

Would a blog help your business? I think that depends on: you, the information you would put on your blog and how often you plan to update information on it. The more informative it is to your potential customer the more likely it would be an asset to you in your business dealings. A blog is very simple to set up and maintain. They are also much less complicated then a website. I could probably show someone how to set one up and get going on it in about 20-30 min.

I am working on a new feature to my blog called “Power Tips” these are ”audio power point shows”. They take about 10 minutes to go over a training topic. Hopefully these will be available in the next few weeks. This brings me to another great point about blogs, you can improve on it as you learn more.

I would love to see your comments on my blog https://mtgview.blogspot.com Please give me a the opportunity to be your lender of choice.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com/em>>

Sales price up; inventory down; Feds to lend to businesses

What is happening today in mortgage lending:
More signs things could be turning around.
US Home Sales up; inventory down, prices fall

Fed sent to lend to business

Short-term Borrowing cost edge lower

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

More on the LIBOR; AmeriDream

What is happening today in mortgage lending:

According to these articles we need to go through our records and help those borrowers who were tied to the LIBOR ARM by refinancing them.

If your adjustable-rate mortgage is linked to LIBOR, brace yourself, analysts say | mycentraljersey.com | MyCentralJersey.com

'Libor' closest thing to global yardstick

AmeriDream Responds to Greenspan Testimony - MarketWatch

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

What is happening today in mortgage lending:
Good-Faith Changes From HUD - washingtonpost.com

Daily Herald | HUD looks to protect borrowers from overcharges

Daily Herald | Reform may mean end of mortgage broker deception is near



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Good Faith Changes From HUD

What is happening today in mortgage lending:
Good-Faith Changes From HUD - washingtonpost.com

Daily Herald | HUD looks to protect borrowers from overcharges

Daily Herald | Reform may mean end of mortgage broker deception is near

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie and Freddie ask for higher loan limits; Mortgage Matters and how does RNY relates to Mortgage Rates

What is happening today in mortgage lending:
FNMA and FHLMC ask US for higher loan limits

I am also adding a new link to my blog called Mortgage Matters it’s supplied by Bank Rate. It will be posted on the right hand side of my blog under “What’s the Market Doing..”? It gives you insight on what’s going on with rates. Today’s article talks about the Freddie Mac’s Required Net Yield RNY. This is also a link I have on my blog (again on the right hand side) and I think it has been a better indicator than 10 year treasury. I have been following the RNY and it has gone down over a 100 bps in the last week. Rates should be good today! My blog is http://www.mtgview.blogspot.com/ The first page of my blog is a chronicle of mortgage lending and links that you will find helpful, Including links to my FHA and Conventional blog.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Rule on Mortgage Rate Disclosre; August Home Sale Surge paart to DPA; Did you know

What is happening today in mortgage lending:
Articles you may want to read today
US Fed finalizes rule on mortgage rate disclosure Markets Markets News Reuters
August Home Sales Surge Thanks in Part to Downpayment Assistance - MarketWatch

Each morning I send out mortgage news with Rates. I am motivated to do this for my brokers to help you stay on top of what is going on in the market. I post my results on my blog also, so you can go back and look at older information if needed. It is interesting to see the chronicle of mortgage lending over the last six months. But do you have other questions such as;
How is Utah’s Economy doing?
Where are rates going?
How can I get more Mortgage Training?
What does the FHLMC Required Net Yield to do with Mortgage Rates?
Is a pension taxable?
Did you know that FHA has many websites?
How can I learn about self employed borrowers?
What are forms 92900 and other forms?
Can a family member lend a borrower the down payment on FHA?
What changes did DU make in version 7?
Are there any DPAs acceptable in UT for FHA?
Are there grants available for down payments?
Where can the borrower get the down payment from?
Do you have a question about Rural Housing?

You can find the answer to these questions and much more on my blog just go to http://www.mtgview.blogspot.com/. I am always updating it and it is a free a service I provide my brokers. Please feel like posting your comments there also. I am interested to know your thoughts.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Freddie annouces no more Accept-Plus; VA Cashout to 100%

What is happening today in mortgage lending:
Freddie Mac Announced …Today's News ... This Single-Family Advisory e-mail provides you with important information on a series of upcoming changes to our pricing and credit requirements.

First, we are providing a preview of new changes that we will finalize in an early November Single-Family Seller/Servicer Guide (Guide) Bulletin and will make effective for Freddie Mac settlements on and after February 2, 2009. These changes strengthen underwriting standards for borrower eligibility and provide additional safeguards against layered risk to support sustainable homeownership opportunities, including:
Eliminating the purchase of mortgages originated with stated income and/or stated assets
Establishing minimum Indicator Scores and maximum debt-to-income ratio requirements for most mortgages we purchase—whether manually underwritten or assessed through an automated underwriting system

Second, we are publishing a Guide Bulletin today that provides detailed requirements for the changes we previewed in our October 3 Single-Family Advisory e-mail. These changes are effective for Freddie Mac settlements on and after January 2, 2009, and reflect our focus on providing pricing and credit terms that are prudent and largely applicable in all market conditions.
Finally, today's Guide Bulletin also includes additional and not previously announced updates to our credit requirements for borrowers with significant derogatory credit information, and other credit changes for certain mortgages with higher risk characteristics. These changes are also effective for Freddie Mac settlements on and after January 2, 2009.
In aggregate, the changes we are previewing in this e-mail and those we have published in today's Guide Bulletin address underwriting standards that promote long-term homeownership for borrowers and liquidity for Sellers, while maintaining a sustainable secondary market business model.
Preview of Upcoming Changes to Credit RequirementsToday, we are previewing the following changes to our credit requirements that will be effective for Freddie Mac settlements on and after February 2, 2009. We will finalize these credit changes in an early November Guide Bulletin where we will:

Eliminate purchases of all mortgages originated with stated income and/or stated assets, including borrower selected programs, lender-branded and marketed programs, and system-selected programs such as Loan Prospector® Accept Plus.
Establish a maximum debt-to-income ratio of 45 percent for all mortgages we purchase, except for Streamlined Refinance Mortgages.
Revise requirements for minimum Indicator Scores by:
Establishing minimum Indicator Score requirements for manually underwritten mortgages secured by 1-unit primary residences as follows (Home Possible® Mortgages excluded):
620 for LTV/TLTV/HTLTV ratios less than or equal to 75 percent.
660 for LTV/TLTV/HTLTV ratios greater than 75 percent.
Establishing a minimum Indicator Score of 620 for all mortgages unless otherwise specified for a particular mortgage product in our Guide. Loan Prospector A-minus mortgages are also excluded from this requirement.
Revising minimum Indicator Scores for Home Possible Mortgages and lender-branded affordable mortgages. Details for this change will be provided in the early November Guide Bulletin.
If the borrower does not have a usable credit score, Sellers must underwrite the mortgage according to the requirements in Guide Chapter 37.

Eliminate purchases of 40-year fixed-rate mortgages except for Home Possible Mortgages and other lender-branded affordable products secured by 1-unit properties.
Reduce the maximum LTV ratio requirements for Home Possible Mortgages and other lender-branded affordable mortgage products secured by 1-unit primary residences to:
97 percent for mortgages assessed by Loan Prospector and other approved automated underwriting systems.
95 percent for manually underwritten mortgages.
We will continue to allow TLTV ratios greater than 97 percent and up to 105 percent for eligible Home Possible Mortgages and lender-branded affordable mortgages if the subordinate financing is an Affordable Second® and the borrower has a minimum Indicator Score of 700.
Delivery Fee Rate and Credit Requirements in Today's Bulletin
With today's Guide Bulletin, we are providing final requirements for the delivery fee rate increases and credit changes we previewed in early October and are announcing several additional changes to our credit requirements. It is important that you review today's Guide Bulletin in detail to prepare for these changes, effective for mortgages with Freddie Mac settlements on and after January 2, 2009.
Credit and Pricing Requirements Previewed on October 3:

Eliminate the previously announced 25 basis point increase to the Market Condition delivery fee, scheduled to go into effect on November 7, 2008.
Provide detailed pricing and credit requirements for mortgages with higher conforming loan limits in certain high-cost areas, which we've termed “super conforming” mortgages.
Update delivery fee structures and fee rates for Initial Interest® Mortgages and mortgages with secondary financing, and revise the Number of Units delivery fees to better align our pricing with the risks inherent in these products.
Change requirements for certain mortgages, including, among others, manually underwritten mortgages, Streamlined Refinance Mortgages, mortgages sold to us more than 120 days after the note date, and mortgages secured by investment properties, 2-unit properties, and second homes.
Additional Modifications to Super Conforming Mortgage Requirements in Today's Guide Bulletin:

Reduce maximum LTV/TLTV/HTLTV ratio requirements for certain super conforming mortgages. View these updates, as well as other modifications to super conforming mortgage requirements on our Web site.
Updates to Borrower Credit Reputation Requirements in Today's Guide Bulletin:

Allow authorized user tradelines to be included in determining a borrower's credit reputation only under certain circumstances as detailed in today's Guide Bulletin.
Require that a borrower's derogatory credit information be considered significant if there is a short payoff related to a delinquent mortgage obligation within the last seven years.
Extend the required recovery period needed to re-establish an acceptable credit reputation for prior foreclosures and multiple bankruptcies, whether for extenuating circumstances or financial mismanagement.
Eliminate the requirement to calculate or evaluate the debt-to-housing gap ratio when determining a borrower's capacity to meet monthly obligations.
Additional Revisions to Credit Requirements in Today's Guide Bulletin:

Add new requirements for the purchase of a new primary residence when the sale of the existing primary residence has not yet closed or the existing primary residence is being converted to a second home or investment property.
Eliminate purchases of seasoned mortgages through our flow sales paths.
Eliminate purchases of Seasoned Mortgages for Newly Constructed Homes products through our flow sales paths. For these mortgages to be eligible for delivery through our flow sales paths, the settlement date or delivery date, as applicable, must be on or before the last day of the 18-month credit/construction/settlement period.
Reaffirm that refinance mortgages must be documented with a new note and new security instrument or with a new note and a modification of the existing security instrument. If there is no new security instrument, the refinance mortgage must be delivered to Freddie Mac as a Seller-owned Modified Mortgage.
Eliminate purchases of Alternative Stated Income Mortgages, and remove references to these mortgages from the Guide as a precursor to changes across all stated income and/or stated asset products, which we previewed above and will finalize in an early November Guide Bulletin.
Updates to Delivery Requirements in Today's Guide Bulletin:
Introduce a new Special Characteristic Code D99 that exempts Freddie Mac-owned no cash-out refinance mortgages secured by second homes and 2-unit primary residences when the new mortgage is not paying off subordinate financing from the LTV/TLTV/HTLTV ratio reductions included in today's Guide Bulletin.
Pre-Funding Best Practices in Today's Guide Bulletin:
Recommend the use of Home Value Calibrator®, a tool that Freddie Mac uses in its quality control process, or a similar tool, to help assess the likelihood that an appraised value is inflated.
Get More InformationFor additional details on these changes:
Read our October 17 Guide Bulletin.
See a summary of all of our recent pricing and credit changes.
Review our pricing and credit requirements for super conforming mortgages, including recent modifications to these requirements

VA Circulars/News - FY2008
Important Announcements:
On October 10, 2008, the President signed S. 3023, the Veterans' Benefits Improvement Act of 2008. Following are the three major impacts to the VA Home Loan Guaranty Program:

1. Authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs) has been extended through September 30, 2012.

2. The maximum guaranty for cash-out refinance loans has been made the same as purchase loans - they are no longer limited to $36,000. In addition, cash-out refinance loans may now be made up to 100% of the appraised value of the home.

3. The temporary increase to the maximum guaranty has been extended through December 31, 2011. When combined with new locality-based Freddie Mac conforming loan limit in January 2009, VA's maximum county “loan limit” will be $1,094,625 ($1,641,937.50 in Alaska, Guam, Hawaii, and the Virgin Islands). This results in unique county "loan limits" for VA. This notice is meant to provide general information regarding the major impacts of the recently passed legislation. Click on this link for more detailed information and guidance.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

What is going on with Mortgage Rates...

What is happening today in mortgage lending:
Mortgage News
What is going on with Mortgage rates...
Libor Loosens Up: Why You Should Care - New Money (usnews.com)
Credit freeze: Signs of a thaw
Consumer confidence, perception can move economic mountains

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

An end of an Era; Bailout takes new direction; Rural Housing news

What is happening today in mortgage lending:
It is end of an era and the beginning of something we have never done before…
newsobserver.com Bank rescue closes door on a free-wheeling era

New direction for rescue plan Real Estate and Technology News for Agents, Brokers and Investors Inman News

Rural Housing News
September 24, 2008

Funds Usage Accelerates for Single Family Housing Guaranteed Loan Program

To date, the USDA Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP) has obligated over $6.7 billion in loan guarantees. This all-time record is thanks to our partners in the lending community who are to be congratulated for participating so strongly in the SFHGLP. The obligation rate for the SFHGLP has accelerated significantly over the past few days, and if the increased rate of obligation continues, we project that funds may be depleted by this weekend. There may be no available funds for the last two days of Fiscal Year 2008, September 29 and 30.

Nevertheless, as mentioned in our communication dated September 19, 2008, USDA Rural Development will continue to accept and process applications, and will issue Conditional Commitments “subject to receipt of Congressionally appropriated funds.” Lenders will continue closing loans under the SFHGLP; business as usual. There will be no interruption of service by USDA Rural Development during any period in which funding is not available.

The United States Congress is working on a Continuing Resolution (CR) which in its current draft appears to provide significant funding for the SFHGP during the CR period in Fiscal Year 2009. Fiscal Year 2009 begins on October 1, 2008. Once funding is appropriated by Congress and has become available to the SFHGLP, USDA Rural Development will be able to issue Loan Note Guarantees for Conditional Commitments that were issued “subject to receipt of Congressionally appropriated funds.”

Questions about this communication may be addressed by dialing the Single Family Housing Guaranteed Loan Division at (202) 720-1452.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Why the Fed's Cut rates; Where is the bottom

What is happening today in mortgage lending:
What is the purpose for the central bank to coordinate the rate cut made earlier this week?
Q&A: The Fed’s Rate Cut
http://economix.blogs.nytimes.com/2008/10/08/qa-the-feds-rate-cut/?ref=business

Here is a helpful web site for consumers looking to selling, buying and financing their homes HGTV FrontDoor Real Estate - Powered by HGTV with homes for sale, buying and selling tips and more

Investor's Business Daily: A Wild Time To Buy A Home, But Some Are Answering The Call

Looking for a bottom? Historically October has sometimes been tough on stock. Let’s hope today we hit the bottom.Where Are We in the Stock Market Cycle? - Seeking Alpha
Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Statues of limitations for old debt; Pending home sales rise..

What is happening today in mortgage lending:When looking at a credit report some times it helps to know what the statues of limitations are.

Here is a helpful link that lets you know the legal time frame.
State statutes of limitations for old debts

Pending home sales rise in August - The Boston Globe

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Today vs The Great Depression; Best Places to live

What is happening today in mortgage lending:
Run-up to Great Depression and today's recession have some eerie similarities, but many important differences

Congratulations Sandy and Orem! Check out Money’s top 100 City’s to live in list.
Best Places to Live Money's list of America's best small cities
# 63 Orem, UT population 90,857
#83 Sandy, UT 94,203

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

How the Bailout works; What caused the Mortgage Meltdown

What is happening today in mortgage lending:

The bailout plan passed now what happens? Here are three articles to give you more insight. Notice there is no plan B so we have to make this work.
The Bailout: An Owner's Manual - Forbes.com
How The Federal Mortgage Bailout Should Work
Historic Bailout Passes As Economy Slips Further - WSJ.com

Did you know that Monday October 31, 1938:
Great Depression: In an effort to try restore investor confidence, the New York Stock Exchange unveils a fifteen-point program aimed to upgrade protection for the investing public. As we know the great depression didn’t end until 1941.

The Best explanaation of the Mortgage Melt Down this is going to require some time to read


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Bailout Bill Sent Back to House; HOPE; More on DPA's

What is happening today in mortgage lending:

Bailout Bill Sent Back to House After Senate Passage (Update1)

Study these mortgagee letters and the press announcement for HOPE you may have some opportunity to get some more business.

FHA issues new mortgagee letters giving more help for borrowers who are behind on their mortgage payments.

Mortgagee letter 2008-29 HOPE for Homeowners Origination Guidance
Mortgagee Letter 2008-30: HOPE for Homeowners Servicing Guidance

BUSH ADMINISTRATION LAUNCHES "HOPE FOR HOMEOWNERS" PROGRAM TO HELP MORE STRUGGLING FAMILIES KEEP THEIR HOMESDetailed Program Eligibility Requirements Announced

CONFIRMED: Seller-Funded Downpayment Assistance Generates Homeownership at No Cost to U.S. Government or Taxpayers

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

A Deal for the Mortgage Crisis; Libor 1-Month Rates Rise

What is happening today in mortgage lending:
A Square Deal for the Mortgage Crisis
Click Here for the full story



Libor 1-Month Rates Rise on Credit Crisis; Overnight Costs Drop

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.dutips.blogspot.com

More on the bailout; Libor and DPA's

What is happening today in mortgage lending:

You’ve read the headlines and know that the bailout plan was rejected. There are many that think that congress will not be able to get anything passed until after the elections. Even once the bill is passed the speculation is it will take months to get things in place. Read more…
World Markets Calm Down after Congress Rejection - Financials * US * News * Story - CNBC.com
UPDATE 1-Mortgage markets hit; US bailout plan voted down - Forbes.com

After Wall Street, anger spreads to Congress - Economy in Turmoil- msnbc.com

Here is suggested alternative to the bailout?
Commentary: Bankruptcy, not bailout, is the right answer - CNN.com

Borrowers with a LIBOR index really need help refinancing
Bloomberg.com: Worldwide

What about the DPAs? It seems the DPA issue is getting little attention as the focus continues on the bailout.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Bailout Bill; Summary and what is Libor?

What is happening today in mortgage lending:

It was a crazy weekend. They finally came up with a proposed Bailout Plan. If you are interested I have attached a link for the complete copy or a link for the summary. Good article about the Libor check it out. Don’t forget that coming Oct 1, 2008 FHA risk base pricing goes away, you will need the new MCAW and 92900A. Check out my Sept 4, 2008 post on my blog for all changes.
Text of Draft Proposal for Bailout Plan

Summary of U.S. financial bailout bill draft

What is Libor? Answers to interest-rate questions

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Bailout Plan Stalls and WaMu is seized by FDIC

What is happening today in mortgage lending:
Bailout negotiations break down into bipartisan finger-pointing

WaMu is seized by FDIC

Libor Increase Causes Mortgage Rate Hikes

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Guide to Bailout Debate; More about DPA's

What is happening today in mortgage lending:


Your Guide to Bailout Debate

Mansfield realtors to sponsor rally to lobby Congress on down payment bill (DPA)

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

RMIC makes significant Changes

What is happening today in mortgage lending:

FBI Investigates Four Firms at Heart of the Mess

Paulson’s Bazooka: A Weapon to Be Remembered?

RMIC makes significant changes to guidelines please read
What's New in This Release?
During these unsettled times in the financial and housing markets, it is critical that RMIC continue to maintain our financial strength and dedicate our support and substantial capital resources to insuring risks that positively contribute to the fundamentals of the housing market. RMIC is announcing changes to our eligibility and guidelines that reflect this position while maintaining eligibility for the most important segments of the market.

The credit policy changes announced in this release are effective for all mortgage insurance applications submitted on or after November 1, 2008.

The policies outlined in this release supersede all existing waivers and negotiated guidelines previously granted by RMIC, and apply regardless of the findings of any automated underwriting system (AUS) except where specifically noted.

Guideline/Eligibility Changes - Effective November 1, 2008
> Loans with LTV/CLTVs of 95.01% to 97% may only be originated through a lender's retail channels (i.e., broker originated and wholesale loans are ineligible). In order to be considered a retail loan, the loan must be closed and the MI ordered in the name of the originating lender, by that lender's personnel. The minimum representative FICO required for insurance on loans over 95% LTV/CLTV will remain 720 as stated in the August 27, 2008 release notes.

> Loans on Investment Properties will no longer be eligible for coverage.

> Cash-Out Refinances will no longer be eligible for coverage.

> Eligible loans with representative FICO scores below 660 will be classified as A-Minus loans and may be eligible for RMIC's A-Minus program (i.e., loans with representative FICO scores between 620 and 659 will no longer be eligible for RMIC's Monthlies/ZIP Monthlies, Singlemax Plus or LPMIpreferred programs). Eligible loans with Desktop Underwriter (DU) 7.0 Expanded Approval recommendations will continue to be classified as A-Minus loans regardless of FICO score.

> All loans with A-Minus pricing (including all loans with FICOs below 660 and loans with DU 7.0 Expanded Approval recommendations) will be limited to a maximum allowable debt-to-income (DTI) ratio of 45%.

> Loans on Second Homes will:
o Require a minimum loan representative FICO score of 720, and
o Be limited to a maximum LTV/CLTV of 90%.

> If the subject property is a Second Home, the borrower may own no more than a total of four (4) financed properties including their primary residence.

> Interest Only loans will:
o Require a minimum loan representative FICO score of 720, and
o Be limited to a maximum LTV/CLTV of 90%; and
o No longer be eligible for coverage with DU 7.0 Expanded Approval recommendations.

> For Non-Fixed Payment loans (i.e. loans with minimum payments that can change in the first five years):
o The maximum initial interest rate discount from the fully indexed accrual rate (FIAR) will be 200 basis points, and
o The interest rate used to qualify the borrower for the loan must be at least the greater of the initial interest rate or the FIAR.

> Loans on one-unit properties with loan balances over $417,000 that otherwise meet RMIC's non-conforming balance guidelines (including Conforming Jumbo) will require a minimum representative FICO score of 720.

> Rate/Term Refinances are defined as refinances of first lien mortgages only. The following are defined as Cash-Out Refinances and will be ineligible for coverage:
o Refinances involving the consolidation of existing subordinate lien(s) or line(s) of credit. (Note that such existing liens may be resubordinated in the context of a Rate/Term Refinance);
o Refinances within 6 months of the first lien origination date to consolidate a second lien or other line(s) of credit; and
o Loans to finance lien-free properties that already have one or more of the borrowers on the property title.

> Rate/Term Refinances which cannot be shown to improve the borrowers' ability to repay their mortgage debt are ineligible.

> Rate/Term Refinances on properties listed for sale in the last 6 months are eligible only if the property has been taken off the market. If the subject property is a primary residence, the borrower must confirm their intent to occupy it.

> RMIC no longer provides coverage during the construction phase of Construction-Permanent loans. We will still issue commitments with a 12-month term during the construction period to facilitate one-close and two-close processes. However, coverage may not be activated until the permanent financing has been closed or perfected.

> RMIC will no longer contract underwrite subordinate liens. This includes all subordinate installment liens and revolving lines of credit. This change supersedes and replaces any provisions in the Agreement for Loan Underwriting Review that permits the underwriting of these loans.

> All loans with an appraisal more than 60 days old at the date of closing will require a new appraisal or a recertification of the existing appraisal and the value.

Declining Markets Policy Guideline/Eligibility Changes - Effective November 1, 2008
RMIC's Declining Markets Policy will be amended as follows:
> Loans on Second Homes will no longer be eligible for coverage.
> The maximum allowable DTI will be 45%.
> Maximum allowable seller or other interested party contributions will be 3%, regardless of LTV/CLTV.
> Interest Only loans will no longer be eligible for RMIC's Enhanced Declining Markets policy and will follow general Declining Markets eligibility.


Updated Underwriting Guidelines and Rate Materials
The following materials will be posted to http://www.rmic.com/ to assist customers with underwriting and implementation of the credit policy:
o This announcement (Release Notes 09.23.08)
o Quick Reference Underwriting Guidelines - November 1, 2008
o Declining Markets Policy - Effective November 1, 2008
DU/Desktop Underwriter is a registered trademark of Fannie Mae.LP/Loan Prospector is a registered trademark of Freddie Mac.
RMIC's Mortgage Insurance Guidelines are available in electronic format. If you have any questions regarding RMIC's new guidelines, please contact your RMIC Account Manager at 800-999-7642.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

U.S. Bailout

What is happening today in mortgage lending:

Bernanke Testimony on Financial Markets and Government Bailout


A Hedge Fund Like No Other


HUD issues Mortgagee Letter 08-25 tightening up the consideration of Rental income from previous primary residence.
Converting Existing Homes to Rentals—Underwriting Instructions

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Financial Crisis

What is happening today in mortgage lending:
There are rumors floating around that the Bail out package will also include HR 6694. We will just have to watch and see.

Financial Crisis: Washington Pulls Out the Stops

Currently there is thousand of article out there about the bail out; it is really hard to decide which article is the best.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

The Goverments next attempt to help the current crisis

What is happening today in mortgage lending:

Paulson and Bernanke Swoop to Rescue Financial Markets

SEC issues temporary ban on short sales

Have We Reached a Near-Term Bottom?

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

The LIBOR is in the news

What is happening today in mortgage lending:

Overnight dollar Libor falls after central-bank action

Banks Loosen Up After Treatment

You can always access the mortgage index by going to my blog on the right hand side in the green box below the title “Bonds and Rates” click on “key rates”. This will take you to Bloombergs live rates.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

What is happening today in mortgage lending:

DPA News
H.R. 6694 is approved by Key Congressional Committee

Utah News
There seems to be a lot of bad news out there, but how does Utah stack up?
http://governor.utah.gov/dea/econsummaries/EconomicSummary.pdf Governor John Huntsmen Jr Notes on Utah Economy

Trendlines Perspectives of Utah Economy

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie Mae Changes Refinance guidelines

What is happening today in mortgage lending:
Fannie Mae
FANNIE MAE is reducing the max cash out to 85% for a 1-2 unit for owner occupied and investment properties 75%. They also are now requiring seasoning on some refinances(i.e. if they have owned the property for less than 6 months they are not eligible for cash out and more). You can find much more in the news bulletin 08-22. Remember lenders usually change the guidelines prior to the required date by Fannie Mae. This is a must read!!

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Check out our Interest Abatement Program

What is happening today in mortgage lending:
Did you know we have a program called the “Interest Abatement Program”? It can be used on Conv, FHA and VA lending. It does differ a little from each program. The basic idea is the same, the interest portion of the payment is paid by the seller and is placed in a separate non-interest bearing "Replacement Reserve Account" and is used by MLHL to subsidize the monthly payment.
Conventional Guidelines-This product can be used on a construction to perm loan treated as a purchase and must meet the following: The builder (only any other seller not eligible) can contribute up to 6% depending on LTV (that would include money toward closing cost) towards an account that would pay the borrowers interest for 3 to 6 months. This would make it so the borrower would only have a minimal principal payment during this time. The interest or closing cost may not be paid out of premium pricing the prepaids may be paid out of premium pricing. The premium pricing used for prepaids does not count towards the Seller concessions. The seller has to be the builder.

FHA and VA
The interest abatement funds may be paid by the builder and/or seller on behalf of the borrower. The abatement funds may "NOT" be covered by premium pricing or paid by borrower.
· Terms of the Interest Abatement must stipulate in the sales contract or Escrow Instructions or on an addendum to either.
· Interest Abatement Period 3 to 6 months. - no exceptions.
Premium Pricing
Not allowed for interest abatement.
Prepaids and closing costs may be paid out of premium pricing and not counted into the maximum Seller/Interested Party Contributions.
· Seller/Interested Party Contributions
o FHA = Maximum 6% (including abatement)
o VA = Maximum 4% (including abatement
Interest Abatement funds are not refundable and borrowers only interest in the funds is to have them applied as monthly interest due.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

HUD issues Mtg Letter 08-23 Revised Down Payment

What is happening today in mortgage lending:
HUD issues Mortgagee Letter 08-23 Revised Down Payment okay here it is. It is a bit confusing but it is certain that the down payment requirement for FHA purchase of 3.5 is not effective until January 1, 2009. There was a surprise in here about refinance rate and term loans. Check it out

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

HUD issues Mtg Letter 08-23 Revised Down Payment

What is happening today in mortgage lending:

HUD issues Mortgagee Letter 08-23 Revised Down Payment okay here it is. It is a bit confusing but it is certain that the down payment requirement for FHA purchase of 3.5 is not effective until January 1, 2009. There was a surprise in here about refinance rate and term loans. Check it out

08-23
Revised Downpayment and Maximum Mortgage Requirements

Tax Credit Information and Seller Paid DPA's may be back

What is happening today in mortgage lending:
We know that HR 3221 made it so first time Home Buyers (i.e. anyone not owning a home in the last three years) can be eligible for a $7500 tax credit. Here is more information how this tax credit works.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008 First time Homebuyer Tax Credit

First Time Home Buyer Tax credit frequently asked questions

Wait just when we were ready to say Seller paid DPAs and Risk based MI was gone along comes bill HR 6694. They are going to have to act fast if they are going to make Oct 1, 2008 deadline. Read more….
Congress weighs reprieve for seller-funded gifts

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

FHA issues revised Downpayment requirements and more information on DPA

What is happening today in mortgage lending:

Down Payment Assistant Programs
HUD has eliminated Seller paid Down Payment Assistant Programs as of Oct.1 2008. Down payment assistant programs are acceptable to HUD as long as they do not come from the seller or anyone involved in the sales transaction. I recently have been reading about the American Dream Down payment initiative which is available in all states. However in my research it appears some states do get more money than others. Here is a link to this program and a link to all Homeownership Assistance programs approved by HUD in Utah.
American Dream Down payment Initiative

Homeownership Assistance: Utah

FHA issues Mortgagee letter 08-23
Revised Downpayment and Maximum Mortgage Requirements

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

More on DPAs; FHA Revised Downpayment Requirements

What is happening today in mortgage lending:
Down Payment Assistant Programs
HUD has eliminated Seller paid down payment Assistant Programs as of Oct.1 2008. Down payment assistant programs are acceptable to HUD as long as they do not come from the seller or anyone involved in the sales transaction. I recently have been reading about the American Dream Down payment initiative which is available in all states. However in my research in appears some states do get more money than others. Here is a link to this program and a link to all Homeownership Assistance programs approved by HUD in Utah.
American Dream Down payment Initiative

Homeownership Assistance: Utah

FHA issues Mortgagee letter 08-23
Revised Downpayment and Maximum Mortgage Requirements

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

FHA Risked Priced MI eleminated

What is happening today in mortgage lending:

Don’t forget that risk base MI will be eliminated Oct 1, 2008 see mortgagee letter 08-22 attached link is http://www.hudclips.org/letters/mortgagee/files/08-22ml.doc

What will be the impact from the bail out of Fannie Mae and Freddie Mac

What is happening today in mortgage lending:

You have probably already heard that the federal government took control over Fannie Mae and Freddie Mac yesterday morning. The market is acting positively this morning but what will it mean for the long term? Here is an article that may give you some insight.
What rescue means for mortgage rates

US mortgage rescue: Is this the turning point?

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Fannie and Freddie to be taken over by Federal Goverment

What is happening today in mortgage lending:
It looks like we are entering a new chapter still yet in the step to recovery in the mortgage industry. Lets hope this is going to be a good thing?
Treasury near unprecedented takeover of Fannie, Freddie


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

HR 3221 elimination of FHA Risk Based MI

What is happening today in mortgage lending: We haven’t talked much about some of the changes that the HR 3221 bill impacted such as elimination of FHA risked based mi and increased conforming loan limits to $625,550 here are two articles talking about these topics in more detail.

FHA to discontinue risk-based pricing Oct. 1

SIFMA Relaxes Jumbo Loan Restrictions

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

FHA Changes October 1, 2008

What is happening today in mortgage lending:
The Federal Housing Administration (FHA) has developed form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary (LT) to replace both mortgage credit analysis worksheets, HUD-92900-PUR and HUD-92900-WS (MCAWs ) remember that this new forms will be required October 1, 2008. The form HUD-92900-A, Addendum to Uniform Residential Loan Application, has also been updated with minor revisions also required October 1, 2008. This information can be found in MTG letter 2008-15

Seller paid DPAs will be gone by October 1, 2008 however most lenders have already announced they are no longer accepting new applications with a DPA. If you have some time to spend you can go to this grant website http://www.grants.gov/ and find a grant. FHA does still accept grants. You can also access this web site by going to my blog clicking on “FHA Tips” on the right hand side, from the FHA Tip page you can find on the left hand side “Helpful FHA Websites” and click on "FHA Allowable Grants". I do want to caution you it would be labor intensive task.

The down payment for FHA is scheduled to change January 1, 2009 from 3% to 3.5%

The new FHA loan limit will be the greater of $271,050 or 115 percent of an area's median home price, up to $625,500, the temporary limits are still good until Dec. 31, 2008.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Help DPA

What is happening today in mortgage lending:
DPA NEWS
The old ways of down payment assistance are gone for good... the question now is whether or not we'll have revised DPA or none at all. The Genesis Foundation / Preferred Program would like to host a conference call for your team to discuss the future of Downpayment Assistance and the prospects for H.R. 6694 (The Bill to revise and save DPA).

Calls are scheduled on a first come first serve basis, please contact me ASAP to set this up. Start now to position your team to meet the new market challenges come Oct 1 (with revised DPA or no DPA). This call should take no more than 15 minutes and will equip your team as we move forward together. Comment against HUD's proposed rule to eliminate Down Payment Assistance programs:rallyforhomeownership.org

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Mortgage News "Appraisers new ruling"

What is happening today in mortgage lending:

Rate Probability: Sideways to Higher

http://originatortimes.com/content/templates/brm.aspx?articleid=3418&zoneid=2

AP IMPACT: Weak rules cripple appraiser oversight

http://ap.google.com/article/ALeqM5ikxaGMw1qvoJi6B_xg3im9lW1xmwD92KFBS00

How to Survive Working in Mortgage Lending in 2008

What is happening today in mortgage lending:
TIP How to Surviving Working in Mortgage Lending in 2008 by Shirley Nault

Make sure when taking your application you are clear on the financial picture of your customer. You need to be asking a multitude of questions with each loan application. The more Thor you can be the better chance you have of making a deal work. I find too often as an account rep that I wished I could talk to the customer because the loan package appears to be unclear and possibly with just a few more questions maybe the deal could work. Consider the following questions

Do you understand how your borrower is paid? How long have they received this type of income? Does the type of income meet underwriting guidelines? Do they have a 24 month work history? Do they have other income that can be used? Does the income documentation your customers have support the income reported at application? If not why? Will they receive a raise soon? Can it be documented? Do you know the type of documentation that is required for the type of income your customer is receiving?

Does the customer have other property? How long have the had other property? What is their equity position in their other properties? What is the rent? How long have they rented? Can they document this? Do they own more than 4 properties?

Is the subject property going to be an owner occupied property? Does the type of property make sense to the transaction?

Where will the money come from for down payment and closing cost? Have you documented it? Is it from an acceptable source? Will it need to be seasoned? Will they need reserves after closing to make the transaction work? Has the reserves been documented?

Is the subject property in a declining market (may need two appraisals)? Does the value seem in line? Does your review of the appraisal indicate the property is in a declining market? Does the property need repairs will it meet the lenders requirements?

How does the credit look? Don't just look at the FICO score and say that will work, review the last 12-24 months of credit. Do they have any lates during the last 12-24 months? Are the lates isolated? Do they have any recent judgments, collections, BK or foreclosures? Will the lender require perfect credit? Why did they have credit problems?

What is the best program for your customer?

These are just a few questions and I know you have your list of questions as you go through an application, but I suggest to build on that list. The more complete you can be from the beginning the sooner you will know if you have a viable deal to work on.

Once you determine you have a viable deal put the loan package together as a professional or hire someone to do this for you. An inexperienced Loan originator or processor can kill a good deal by just not understanding what needs to be in the loan package to support the credit worthiness in today's market.

Mortgage News Lenders tighten credit

What is happening today in mortgage lending:
Fed says banks got tough on lending
http://seattletimes.nwsource.com/html/businesstechnology/2008106865_fedbanks12.html

Mortgage, Freddie Mac and VA News

What is happening today in mortgage lending:
In Their Various Ways, Economists Try to Find Right Price for a Home
http://www.nytimes.com/2008/08/09/business/economy/09bargain.html?pagewanted=2&_r=1&th&emc=th&adxnnlx=1218283523-kO8PE%20JviDXyBthi5FCs%20w

Freddie Mac News
" With this Single-Family Seller/Servicer Guide (Guide) Bulletin, we are announcing that Freddie Mac will not purchase New York Mortgages that fall within that State’s definition of "subprime home loans
http://freddiemac.com/sell/guide/bulletins/pdf/bll081208.pdf

VA News
VA issues circular 26-08-13 ACCESS TO VACANT PROPERTIES FOR LIQUIDATION APPRAISALS http://www.homeloans.va.gov/circulars/26_08_13.pdf