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
Friday, August 22, 2008
Monday, August 18, 2008
Mortgage News "Appraisers new ruling"
What is happening today in mortgage lending:
Rate Probability: Sideways to Higher
AP IMPACT: Weak rules cripple appraiser oversight
Wednesday, August 13, 2008
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.
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
Fed says banks got tough on lending
http://seattletimes.nwsource.com/html/businesstechnology/2008106865_fedbanks12.html
Tuesday, August 12, 2008
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
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
Saturday, August 9, 2008
Mortgage News and DPA
What is happening today in mortgage lending:
Mortgage firms pay false advertising fineshttp://blog.seattlepi.nwsource.com/consumersmarts/archives/145539.asp
Guest column: Down-payment assistance important in housing market
http://www.greenbaypressgazette.com/apps/pbcs.dll/article?AID=/20080808/GPG0703/808080674/1247/GPG03
Freddie Mac issues Bulletin August 8, 2008
With this Single-Family Seller/Servicer Guide (Guide) Bulletin, Freddie Mac is amending Guide Section 17.2, Provisions for the payment of fees and proceeds and application of delivery fee credits.
We are also making the following changes to our postsettlement delivery fees (delivery fees), effective for all Mortgages sold to Freddie Mac under flow Purchase Contracts with Freddie Mac Settlement Dates on or after November 7, 2008:
■ Increasing the Market Condition delivery fee rate
■ Adding a new Indicator Score range, revising the Indicator Score/Loan-to-Value ratio delivery fee rates and adding new delivery fee credits for Mortgages with certain Indicator Score/Loan-to-Value combinations
■ Increasing cash-out refinance Mortgages Indicator Score/Loan-to-Value delivery fee rates for cash-out refinance Mortgages with certain Indicator Score/Loan-to-Value combinations
■ Increasing Credit Score/Loan-to-Value (CS/LTV) delivery fee rates for certain A-minus Mortgages, other Caution Mortgages and Non-Loan Prospector® Mortgages
■ Increasing the Investment Property Mortgage delivery fee rates
Read the entire bulletin
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll080808.pdf
Mortgage firms pay false advertising fineshttp://blog.seattlepi.nwsource.com/consumersmarts/archives/145539.asp
Guest column: Down-payment assistance important in housing market
http://www.greenbaypressgazette.com/apps/pbcs.dll/article?AID=/20080808/GPG0703/808080674/1247/GPG03
Freddie Mac issues Bulletin August 8, 2008
With this Single-Family Seller/Servicer Guide (Guide) Bulletin, Freddie Mac is amending Guide Section 17.2, Provisions for the payment of fees and proceeds and application of delivery fee credits.
We are also making the following changes to our postsettlement delivery fees (delivery fees), effective for all Mortgages sold to Freddie Mac under flow Purchase Contracts with Freddie Mac Settlement Dates on or after November 7, 2008:
■ Increasing the Market Condition delivery fee rate
■ Adding a new Indicator Score range, revising the Indicator Score/Loan-to-Value ratio delivery fee rates and adding new delivery fee credits for Mortgages with certain Indicator Score/Loan-to-Value combinations
■ Increasing cash-out refinance Mortgages Indicator Score/Loan-to-Value delivery fee rates for cash-out refinance Mortgages with certain Indicator Score/Loan-to-Value combinations
■ Increasing Credit Score/Loan-to-Value (CS/LTV) delivery fee rates for certain A-minus Mortgages, other Caution Mortgages and Non-Loan Prospector® Mortgages
■ Increasing the Investment Property Mortgage delivery fee rates
Read the entire bulletin
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll080808.pdf
Thursday, August 7, 2008
Mortgage Education News
What is happening today in mortgage lending:
I strongly believe in our continuing education in the mortgage business. This mornings email is dedicated to give you ideas how you can continue your education in mortgage lending. Remember I am also a CE instructor and can give you training in your offices.
I strongly believe in our continuing education in the mortgage business. This mornings email is dedicated to give you ideas how you can continue your education in mortgage lending. Remember I am also a CE instructor and can give you training in your offices.
- AllRegs Delivers FHA Hotline Support Service for Mortgage Lenders "AllRegs FHA Hotline" Service Helps Mortgage Companies Clarify FHA Loan Program Details and the New Housing Law
http://www.marketwatch.com/news/story/allregs-delivers-fha-hotline-support/story.aspx?guid=%7B224A3183-2E3B-4DB4-B789-D1B2B26F6E71%7D&dist=hppr - My blog (link below) has a list of on line sites that give you on line sessions and most are free.
- Radian is offering free training classes
-AUG 21-22 Southtowne Expo
Cordially invites you to
Attend our free training class at
The South Towne Expo Center
Thursday August 21, 1:00- 4:30 PM
&
Friday August 22, 9:00-12:00 PM
Refreshments will be served throughout each class.
A continental breakfast will be served on Friday.
Please fax or email the RSVP to reserve your seats.
Invite all co-workers to attend
We look forward to seeing you there!
Thank you,
Steve Thornley <mailto:stephen.thornley@radian.biz>
Wednesday, August 6, 2008
MIP News
What is happening today in mortgage lending:
The following MGIC rate and underwriting changes take effect today, August 4, 2008:
Rate Changes
MGIC's basic monthly premium rates have increased.
A few LPMI rates have changed.
The premium adjustment factor for loan amounts greater than $417,000 has increased.
Standard Monthly, ZOMP! and Expanded Criteria rate charts now include a premium adjustment factor for loans with a maximum 25-year amortization.
Note: Rate changes are not yet effective in all states.For the most current rates, go to our newly updated Rate Finder or download the appropriate rate card.
Underwriting Changes
Cash-out refinances are once again eligible to a maximum LTV of 90% in non-restricted markets or states.
The following states are limited to a maximum LTV of 90%: AZ, CA, FL and NV.
For more information, please see our Underwriting Guidelines Summary and our Restricted Market Look-Up Tool.
The following MGIC rate and underwriting changes take effect today, August 4, 2008:
Rate Changes
MGIC's basic monthly premium rates have increased.
A few LPMI rates have changed.
The premium adjustment factor for loan amounts greater than $417,000 has increased.
Standard Monthly, ZOMP! and Expanded Criteria rate charts now include a premium adjustment factor for loans with a maximum 25-year amortization.
Note: Rate changes are not yet effective in all states.For the most current rates, go to our newly updated Rate Finder or download the appropriate rate card.
Underwriting Changes
Cash-out refinances are once again eligible to a maximum LTV of 90% in non-restricted markets or states.
The following states are limited to a maximum LTV of 90%: AZ, CA, FL and NV.
For more information, please see our Underwriting Guidelines Summary and our Restricted Market Look-Up Tool.
Tuesday, August 5, 2008
Mortgage News
What is happening in mortgage lending today:
You will see lenders soon change their pricDelivery Charge and Flow Business Pricing Requirements https://www.efanniemae.com/sf/guidesing again. Fannie Mae just issued bulletin 08-18 Updated Adverse Market /ssg/annltrs/pdf/2008/0818.pdf
Time to lock in your mortgage rate Home buyers may find big savings in locking in mortgage interest rates.
http://money.cnn.com/2008/08/04/real_estate/mortgage_rate_lock/?postversion=2008080408
We can hope that the credit crisis has been over blown. Check out this article it was in Business Week and CNN Money
So far, insurers don't show big 2Q mortgage losses
http://www.businessweek.com/ap/financialnews/D92B06E80.htm
You will see lenders soon change their pricDelivery Charge and Flow Business Pricing Requirements https://www.efanniemae.com/sf/guidesing again. Fannie Mae just issued bulletin 08-18 Updated Adverse Market /ssg/annltrs/pdf/2008/0818.pdf
Time to lock in your mortgage rate Home buyers may find big savings in locking in mortgage interest rates.
http://money.cnn.com/2008/08/04/real_estate/mortgage_rate_lock/?postversion=2008080408
We can hope that the credit crisis has been over blown. Check out this article it was in Business Week and CNN Money
So far, insurers don't show big 2Q mortgage losses
http://www.businessweek.com/ap/financialnews/D92B06E80.htm
Monday, August 4, 2008
Mortgage News
What is happening today in mortgage lending:
Just when we thought the DPA's would soon become a thing of the past, new hope comes. Check out this article from Fox Business. Also in case your are wondering what bipartisan means...Representing or supporting by two parties. The way they throw the word bipartisan around the more I have to remind myself what it really means.
AmeriDream Applauds Bipartisan Legislation to Preserve Charitable Downpayment Assistance
http://www.foxbusiness.com/story/ameridream-applauds-bipartisan-legislation-preserve-charitable-downpayment/
I was reading this article and I had to ask myself what in the world were Lenders thinking when they came out with some of these programs? Do you remember a year ago when we woke up one morning and it felt like the whole bottom came out from what we had been doing in mortgage lending? If we had only know then what we know now or maybe it was best we didn't know. Check out this article.
In mortgage crisis, look for the signs of recovery
http://www.signonsandiego.com/news/business/calbreath/20080803-9999-1b3dean.html
Just when we thought the DPA's would soon become a thing of the past, new hope comes. Check out this article from Fox Business. Also in case your are wondering what bipartisan means...Representing or supporting by two parties. The way they throw the word bipartisan around the more I have to remind myself what it really means.
AmeriDream Applauds Bipartisan Legislation to Preserve Charitable Downpayment Assistance
http://www.foxbusiness.com/story/ameridream-applauds-bipartisan-legislation-preserve-charitable-downpayment/
I was reading this article and I had to ask myself what in the world were Lenders thinking when they came out with some of these programs? Do you remember a year ago when we woke up one morning and it felt like the whole bottom came out from what we had been doing in mortgage lending? If we had only know then what we know now or maybe it was best we didn't know. Check out this article.
In mortgage crisis, look for the signs of recovery
http://www.signonsandiego.com/news/business/calbreath/20080803-9999-1b3dean.html
Saturday, August 2, 2008
Mortgage News
What is happening today in mortgage lending:
August 1, 2008
Last night, Congress introduced bipartisan legislation, H.R. 6694 <https://www.ameridream.org/Documents/Congress/HR6694.pdf> that would reauthorize and reform charitable downpayment assistance. This bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008.
The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.
It is important that you contact your elected officials in Congress and tell them that you support downpayment assistance and urge them to support H. R. 6694. To reach your elected officials, please call the US Capitol Switchboard at 202.224.3121.
To learn how you can support it, visit http://www.supporthomeownership.com/ <http://takeaction.supporthomeownership.com/ahaa/issues/alert/?alertid=11521436> .
AmeriDream continues to be your trusted advisor, bringing timely and accurate information when you need it most.
Thank you for your continued support and confidence.
Join The Growing List of DPA Supporters:
* Congressional Leaders
* US Conference of Mayors
* The National Association of Counties
* The National Home Builders Association
* Labor Council for Latin American Advancement
* The National Urban League
* Association for Homeowners Across America
* The 32,000 housing industry professionals, gift recipients and homebuyers who have either written or called Congress to support DPA
August 1, 2008
Last night, Congress introduced bipartisan legislation, H.R. 6694 <https://www.ameridream.org/Documents/Congress/HR6694.pdf> that would reauthorize and reform charitable downpayment assistance. This bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008.
The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.
It is important that you contact your elected officials in Congress and tell them that you support downpayment assistance and urge them to support H. R. 6694. To reach your elected officials, please call the US Capitol Switchboard at 202.224.3121.
To learn how you can support it, visit http://www.supporthomeownership.com/ <http://takeaction.supporthomeownership.com/ahaa/issues/alert/?alertid=11521436> .
AmeriDream continues to be your trusted advisor, bringing timely and accurate information when you need it most.
Thank you for your continued support and confidence.
Join The Growing List of DPA Supporters:
* Congressional Leaders
* US Conference of Mayors
* The National Association of Counties
* The National Home Builders Association
* Labor Council for Latin American Advancement
* The National Urban League
* Association for Homeowners Across America
* The 32,000 housing industry professionals, gift recipients and homebuyers who have either written or called Congress to support DPA
Friday, August 1, 2008
Mortgage News
What is happening today in mortgage lending:
This seems to be a change of attitude Freddie Mac wants to give Servicers more time to work with borrowers who are delinquent on their mortgage and they are also willing to pay...
Freddie Mac boosts mortgage servicer incentives
http://www.newsdaily.com/stories/n31314606-freddiemac-servicing/
Big Housing Bill: No Rescues Soon http://www.csmonitor.com/2008/0801/p01s04-usec.html
Do you want to know how your senator voted on Bill 186?
http://www.govtrack.us/congress/vote.xpd?vote=s2008-186
This seems to be a change of attitude Freddie Mac wants to give Servicers more time to work with borrowers who are delinquent on their mortgage and they are also willing to pay...
Freddie Mac boosts mortgage servicer incentives
http://www.newsdaily.com/stories/n31314606-freddiemac-servicing/
Big Housing Bill: No Rescues Soon http://www.csmonitor.com/2008/0801/p01s04-usec.html
Do you want to know how your senator voted on Bill 186?
http://www.govtrack.us/congress/vote.xpd?vote=s2008-186
What is happening today in mortgage lending:
Freddie Mac doubles incentives for mortgage servicers
http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/31/afx5275966.html
Big Housing Bill: o rescues soon http://www.csmonitor.com/2008/0801/p01s04-usec.html
Freddie Mac doubles incentives for mortgage servicers
http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/31/afx5275966.html
Big Housing Bill: o rescues soon http://www.csmonitor.com/2008/0801/p01s04-usec.html
VA News
What is happening today in mortgage lending:
VA ISSUES Bulletin: TEMPORARY INCREASE IN MAXIMUM GUARANTY AMOUNT UNDER H.R. 3221
http://www.homeloans.va.gov/circulars/26_08_11.pdf
VA ISSUES Bulletin: TEMPORARY INCREASE IN MAXIMUM GUARANTY AMOUNT UNDER H.R. 3221
http://www.homeloans.va.gov/circulars/26_08_11.pdf
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