GE Policy on Loans for Properties in Delcining/Distressed Markets

Genworth Mortgage Insurance: Policy on Loans for Properties
in Declining/Distressed Markets – Update for March 31, 2008
Due to depreciation of real estate values nationally and at localized levels, and
in accordance with prudent underwriting standards, Genworth Mortgage
Insurance has established limitations for loans in Declining/Distressed markets.
Effective with MI applications received on or after March 31, 2008, Genworth
will limit loans on properties in Declining/Distressed markets as follows:
• Maximum LTV/CLTV = 95%
• A Minus loans are ineligible
• 95% LTV with credit score <> 90% are ineligible
• Construction Permanent financing loans are ineligible
• Florida Only – Second Homes are ineligible
The above Declining/Distressed Market restrictions apply when:
• The property is located in a market identified as Declining/Distressed
on Genworth’s Declining/Distressed Market List
• The appraisal report indicates other than stable or increasing values
• The lender has a policy or other knowledge which considers the
property to be in a declining/distressed market
Enforcement of Policy
Loans subject to Genworth’s Declining/Distressed Market Policy are ineligible
for insurance by Genworth. Genworth has provided online tools at
mortgageinsurance.genworth.com to determine whether a property is
located on Genworth’s Declining/Distressed Market list and whether it may be
subject to restrictions.
Updates To Policy
Genworth will review and update its Declining/Distressed Market Policy and List
as information becomes available and as developments in local markets merit.
All updates will be posted on our website, mortgageinsurance.genworth.com
and distributed via Genworth Mortgage Insurance Sales

Mortgage News

Federal banks can buy more mortgage-backed debt http://www.latimes.com/business/la-fi-wrap25mar25,1,2451249.story

Agency News

Updates and Clarifications to Maximum Financing in Declining Markets Policy
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0806.pdf

Fed's Next Move May Be to Buy Mortgages, Treasury Investors Bet RMIC and PMI annouce new Conforming Jumbo MI

Fed's Next Move May Be to Buy Mortgages, Treasury Investors Bet
http://www.bloomberg.com/apps/news?pid=20601087&sid=ad0zneiPUVjA&refer=home

RMIC New conforming Jumbo MI
http://www.rmic.com/ratesguides/releasenotes/Documents/ReleaseNotes-3.20.08.pdf

PMI New Conforming Jumbo MI
http://www.pmi-us.com/guidelinechanges/media/pmi_migdlechngltreff_041508.pdf

Fannie Mae, Freddie Mac May Have Capital Rule Relaxed; Agency jumbo" -- It's a mortgage that sounds like a failed TV show;

Fannie Mae, Freddie Mac May Have Capital Rule Relaxed (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=abbuJTFS5TLI&refer=home

Agency jumbo" -- It's a mortgage that sounds like a failed TV show
http://www.mercextra.com/blogs/realestate/2008/03/18/agency_jumbo_its_a_mortgage_th_1/

How bad is the mortgage crisis going to get?

How bad is the mortgage crisis going to get?
ttp://money.cnn.com/2008/03/14/news/economy/krugman_subprime.fortune/?postversion=2008031705

Fed Acts to Rescue Financial Markets

Fed Acts to Rescue Financial Markets
http://www.nytimes.com/2008/03/17/business/17fed.html?th&emc=th

HUD PROPOSES MORTGAGE REFORM TO HELP CONSUMERS BETTER UNDERSTAND THEIR LOAN, SHOP FOR LOWER COSTS

HUD PROPOSES MORTGAGE REFORM TO HELP CONSUMERS BETTER UNDERSTAND THEIR LOAN, SHOP FOR LOWER COSTS Jackson: Need for reform is now; proposal to save consumers almost $700
http://www.hud.gov/news/release.cfm?content=pr08-033.cfm

Bush Acknowledges Economic Troubles ;FNMA offers additional loan for borrowers in trouble; Home Appraisers Under Pressure

Bush Acknowledges Economic Troubles
http://www.nytimes.com/2008/03/14/washington/14cnd-webbush.html?_r=1&hp&oref=slogin

Fannie Mae offers additional loan for borrowers in trouble It helps those with illness or job loss, not people who simply fall behind
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/03/15/REALVGMHC.DTL

Home Appraisers Under Pressure
http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3940904n

Freddie Ask for Your Feedback on Pending Appraisal Reform

Your chance to give Freddie feedback regarding the pending appraisal changes.
If these proposed guideline go into effect brokers will not be able to order their own appraisals . I highly recommend you give Freddie your feedback. You can only do this until April 30, 2008. Please take time today to respond at
http://www.freddiemac.com/singlefamily/home_valuation.html

You are reading key updates from Freddie Mac Today's News...
On March 3, Freddie Mac announced that we entered into an agreement with the New York State Attorney General and our regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), to implement and require Freddie Mac Seller/Servicers to adopt the Home Valuation Code of Conduct (Code) by January 1, 2009 for mortgages sold to us. Today we are announcing the commencement of the open comment period for all mortgage industry participants, as specified in the March 3 agreement. The comment period will begin today, March 14, and end on April 30, 2008.
To implement the Code as efficiently and with as little disruption as possible, we are specifically requesting comments as we begin the process of assessing changes to our Single-Family Seller/Servicer Guide requirements, systems and operational processes. To submit comments, we recommend that you provide a consolidated management response from your organization by:
Reviewing the Code information on our website at http://www.freddiemac.com/singlefamily/home_valuation.html, including our March 3 Single-Family Advisory customer message, the Home Valuation Code of Conduct and the agreement document signed by Freddie Mac, OFHEO and the New York Attorney General.
Providing comments on specific operational and implementation challenges that your organization will need to address to comply with the Code, and any unintended consequences or risks you have identified as a result of implementing the Code.
Identifying key definitions or terms contained in the Code where you may need additional guidance or clarifications. For example, we’ve already identified the terms “Origination Date”, “small lender”, “correspondent lender” and “broker” as terms that will require further clarification as we develop implementation plans.
Comments must be received in writing through the online form we have established on our website at Home Valuation Code of Conduct Response

Attn: Senior Vice President, Credit Risk Oversight
Freddie Mac1551 Park Run Drive,
Mail Stop D2ZMcLean, VA 22102-311

As required in the Code, we will be reporting to OFHEO the results of the comments we receive. Please note that we are unable to process comments received through communications methods other than the above, including telephone responses received through our customer service call centers, and comments that are submitted or postmarked after April 30. We recognize that implementing the Code may require significant changes in appraisal practices and operational requirements for Freddie Mac Seller/Servicers, and encourage you to submit comments that will best assist in the implementation of the Code for all industry participants.

Freddie Amended Risk Base Pricing

Bulletin
TO: All Freddie Mac Sellers and Servicers March 13, 2008
SUBJECTS
Selling requirements are amended with this Single-Family Seller/Servicer Guide (Guide) Bulletin.
We are announcing the following changes to our postsettlement delivery fees (delivery fees).
Effective immediately
Until further notice, we are suspending implementation of the 30 basis point delivery fee for Mortgages with loan-to-value (LTV)/total LTV (TLTV) ratios greater than or equal to 80% and minimum Indicator Scores less than 740, announced in the February 21, 2008 Bulletin.
Effective June 1, 2008
Cash-out refinance Mortgages
We are further expanding our use of risk-based pricing by revising our delivery fee rate structure for cash-out refinance Mortgages as follows (these delivery fee rates apply to cash-out refinance Mortgages in addition to the applicable Indicator Score/Loan-to-Value delivery fee):
CASH-OUT REFINANCE MORTGAGES INDICATOR SCORE/LOAN-TO-VALUE Effective for Settlements on or after June 1, 2008
Product
Credit Score
LTV Ratios
<> 60% & <> 70% & ≤ 75% > 75% & ≤ 80% > 80% & ≤ 85% > 85% & 90>
>740 0.000% 0.000% 0.000% 0.250% 0.375% 0.375%
> 720 & <> 700 & <>2- to 4-Unit Properties
We are revising the Number of Units delivery fee rates as follows:
􀂄 The existing 50 basis point delivery fee rate will apply to all eligible Mortgages (other than Home Possible Mortgages) secured by 2-unit properties
􀂄 The existing 100 basis point delivery fee rate will apply to all eligible Mortgages (other than Home Possible Mortgages) secured by 3- to 4-unit properties
REVISIONS TO THE GUIDE
Exhibit 19, Postsettlement Delivery Fees, has been updated to reflect the changes described in this Bulletin.
CONCLUSION
If you have questions regarding changes announced in this Bulletin, please contact your Freddie Mac representative or call (800) FREDDIE.

Freddie's Earning Improve

Freddie Mac Earnings to Improve by 'Good Margin' (notice that Freddie says they think we are 1/3 of the way to the bottom)
http://www.reuters.com/article/bankingFinancial/idUSN1216706320080313?pageNumber=1&virtualBrandChannel=0

Fed Accepts $200 Billion Mortgage Debt Fed Hopoes to Ease Strain on Economic Activity

http://www.huliq.com/53305/fed-accepts-200-billion-mortgage-debt Fed Accepts $200 Billion In Mortgage Debt

http://www.nytimes.com/2008/03/12/business/12fed.htmlem&ex=1205467200&en=3c5173a2e1ea5189&ei=5087 Fed Hopes to Ease Strain on Economic Activity

Fannie Mae's Sovency Be Tested

Fannie Mae's Solvency Be Tested
http://www.mortgagenewsdaily.com/video/embed.asp?id=1308

HomeSaver Advance is the Latest Program To Assist Delinquent Homeowners .... Changes to Fannie Mae Products, Underwriting Standards

HomeSaver Advance is the Latest Program to Assist Delinquent Homeowners

Do you know people that are struggling to make their house payments? Please beware there is some help out there and pass this information along.

http://www.mortgagenewsdaily.com/372008_HomeSaver_Advance.asp

What’s New? Changes to Fannie Mae Products, Underwriting Standards, and Desktop Underwriter (DU) March 2008

https://www.efanniemae.com/sf/mortgageproducts/pdf/whatsnewproduw.pdf