Today's Mortgage View in Utah

Interest Rates through 2042

2012-01-04T06:10:00.000-07:00

What is in the future for mortgage rates? This could give us a clue. What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatelyhome.blogspot.com or www.getutahhomeloans.com

FHA Flipping Rule Extended

2011-12-28T07:57:00.002-07:00

Good news for FHA lending the flipping rule waiver has been extended and more What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatetlyhome.blogspot.com or www.getutahhomeloans.com

2012 what lays ahead?

2011-12-27T09:13:00.001-07:00

What is in store foe 2012 check this article out What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatetlyhome.com or www.getutahhomeloans.com

Home ownership in Utah

2011-12-13T07:07:00.001-07:00

Utah home ownership among highest in the country What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatelyhome.blogspot.com or www.getutahhomeloans.com

2011-11-16T14:59:00.001-07:00

Fannie Mae (FNMA) just announced the guidelines for the New HARP Program. Freddie Mac (FHLMC) also announced their guidelines for this program. The Harp Program is designed to help property owners who are underwater. Have questions give me a call or email me?

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatelyhome.blogspot.com
or www.getutahhomeloans.com

Go figure...Law Makers increases loan limits for FHA but not FNMA or FHLMC

2011-11-15T04:19:00.001-07:00

In mortgage business nothing is simple any more. Law Makers give approval for increase in loan limits for FHA but not FNMA or FHLMC. What do you think the reasoning behind this decision was?

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.ultimatelyhome.blogspot.com or www.getutahhomeloans.com

Utility Cost Could Become a factor in Qualifying for a Mortgage

2011-11-09T07:48:00.000-07:00

Could the cost of utilities become a factor in qualifing for your mortgage? How do you think this will inpact qualifying borrowers?

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: http://www.ultimatelyhome.blogspot.com/ or http://www.getutahhomeloans.com/

GSE Loan Limits Restored?

2011-11-08T05:50:00.000-07:00

Could the GSE Loan Limits be restored?

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: http://www.ultimatelyhome.blogspot.com/ or http://www.getutahhomes.com/

New VA Bulletin 26-11-17 Announcing Future VA Funding Fees

2011-11-06T17:55:00.001-07:00

VA Bulletin in regards to Future VA Funding Fees looks like the lower VA Funding Fee will not happen.

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: https://www.getutahhomeloans.com/ or https://ultimatelyhome.blogspot.com/

VA Loans, VA Funding Fee, VA IRRRL

I Am Back, Harp Program Changes

2011-10-26T07:04:00.001-07:00

I have been asked over the last year to come back and keep blogging. It is a lot of work and I wasn't sure I was really helping anyone. A recent conversation with a realtor made me believe this information is helpful. So for my realtor friends the biggest news this week is the new HARP changes, here is everything you need to know

http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf

You may have to copy and paste the link to your browser.

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 25 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com, www.dutips.blogspot.com, www.ultimatelyhome.blogspot.com and www.getutahhomeloans.com

Things Change

2011-09-07T03:36:00.004-07:00

Life moves on. I found for me at this time working in the mortgage retail business fits better. I still maintain a blog, it's different type than this one. My current blog fits my retail clients better. You can check out my blog and you can also check out my website by going to:

http://www.getutahhomeloans.com/
http://ultimatelyhome.blogspot.com/

What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 25 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Final Post

2010-05-25T14:20:00.001-07:00

Dear Lending Partners,

I want to let you know that I am making a career change! I am excited and really pleased to be staying with the Bank of Utah. They are a great company who is strongly weathering this recent financial storm. I have resigned as your account rep and will be taking a position at the bank as a retail loan originator.

Candice will be notifying you regarding who your new account rep will be. You can email her at cjorgensen@bankofutah.com

I want to thank you for your business and friendship over the past several years. I have made many friends!

The Bank of Utah does some originating on programs that are not offered on the wholesale side. For example, if you need a source for FHA 203K loans or construction loans and find that you have no outlets, I would love to help. Unfortunately, because of RESPA, I can neither pay nor can you receive a fee for the referral of a loan. However, I can promise you superior service for your clients. If you find you need my services, my email address is snault@bankofutah.com and phone number 801-635-8797 will remain the same.

I wish you the best and hope our paths cross in the near future.

Sincerely,

Shirley Nault

What is happening today in mortgage lending: 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 Mortgagee Letter 10-13 and 10-15

2010-04-23T11:02:00.002-07:00

FHA just issued mortgagee letter 10-15 and 10-13 both are to do with the appraisal and appraisers. Besure you review these two mortgagee leteers

What is happening today in mortgage lending: 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

FNMA releases 8.0 over the weekend

2010-04-19T07:39:00.002-07:00

As a reminder, Fannie Mae will implement the Desktop Underwriter® (DU® ) Version 8.0 April Update the weekend of April 17, 2010. This release will include enhancements to DU Refi Plus™, support of new verifications requirements that are part of the Loan Quality Initiative, and implementation of the HFA Affordable Advantage™ community lending product in DU.

Highlights
• DU Refi Plus™ Enhancements: Updates that relate to borrower eligibility and verification requirements, and that provide added information.
• Updates to Social Security Number and Occupancy Verification Requirements: Some DU Potential Red Flag Messages will change to Verification messages that must be fulfilled before delivering the loan.
• Implementation of HFA Affordable Advantage: DU will now be able to underwrite this community lending product, and will issue a message on all HFA Affordable Advantage loan casefiles reminding lenders that they must have approval to deliver the loans to Fannie Mae. Note: Lenders should contact their state Housing Finance Agency to determine if they are offering HFA Affordable Advantage and to learn more about the product; mortgage brokers should contact their DO sponsoring wholesale lender.
• Miscellaneous Updates and Modified Messages
The Desktop Originator® (DO®)/DU Version 8.0 April Update Release Notes were issued in February 2010. For details, please refer to the DU Release Notes page or DO Release Notes page on eFannieMae.com.

What is happening today in mortgage lending: 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

FNMA Conducts National Housing Survey

2010-04-06T09:35:00.003-07:00

FNMA conducts a national housing survey to gage the attitude of borrowers. You may find this interesting

Rural Housing Funds

2010-03-26T11:42:00.001-07:00

What is National Mortgage News Online saying about Rural Housing funds

Utah Housing Rate annoucement

2010-03-26T11:31:00.002-07:00

The following Utah Housing interest rate for 1st Mortgage is effective immediately through the next rate annoucment on Friday april 2, 2010 for all Mortgage Purcahse Agreement requsts recieved:

First Home and Equity Now not to exceed 5.09

Tip of the week: In spite of rumors to the contrary, Utah Housing is not running out of money and will have ample funds to assit Utahns with the purcahse of their homes through out not only this year , but in the coming years as well

FHA Says Higher Down Payments Risks Double-Dip Price Decline

2010-03-19T11:44:00.000-07:00

To read this aricle in full go here

Q&A for FHA Condo Guidelines

2010-03-12T10:18:00.002-07:00

Just posted an entry on the FHA blog. Click FHA Menu for details

FHA Changes UFMIP

2010-03-04T14:11:00.002-07:00

Don’t forget April 5th all case numbers order on or after this date the new upfront mip will be 2.25 for purchases and refinances this is for stream line loans also. The monthly mi will be .55 for loans with a LTV greater than 95%. You can view the mortgage letter.

What is happening today in mortgage lending: 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

Two new Mortgage Letters issued from HUD

2010-01-21T12:13:00.003-07:00

Two new mortgagee letters came out today Mortgagee Letter 2010-02 (Increased FHA insurance) and Mortgagee Letter 2010-03 (Mortgage Approval for Single Family Programs - Extended Procedures for Terminating Underwriting Authority)

2010-01-21T12:13:00.000-07:00

FHA Changes

2010-01-20T12:30:00.003-07:00

1) Upfront MIP will go from 1.75 to 2.25

2) If FICO is below 580, max LTV is 90% (oh really, is anyone doing FHA with FICO below 620?)

3) Max Seller contribution is droppimg from 6% to 3% (this will be an issue from our builders- please make sure we dont't have any in process construction loans that need 6% concession)

To read this inforamtion in it's entirety go to

FHA Announces Policy Changes to Address Risk and Strengthen Finances

Need to know for your GFE

2010-01-15T10:19:00.001-07:00

If the borrower is taking out two loans to finance the purchase, each loan must have a separate GFE and a separate HUD-1. However, the principal amount of the second loan must be listed outside the borrower’s column with a brief explanation on Line 204-209 of the HUD-1 for the primary loan. If the net proceeds of the second loan are less than the principal amount, the net proceeds may be listed on the same line in the borrower’s column of the first loan. This would apply to Utah Housing First Home Plus; i.e., two GFEs and two HUDs. (Stay tune for more detail as to what costs should be listed on the Utah Housing second GFE.) 

Also, hopefully you all remembered that Monday, January 18 (Martin Luther King Jr.) is a legal public holiday and does NOT count as one of the 10 business days. If you counted it, you have only given the borrower 9 business days and your GFE would not be RESPA compliant!

Some title companies need to know how many pages before they will quote you a price. I thought this would help you
TYPE Pages
Conventional 13
FHA 8
Utah Housing 10
(includes Tax Exempt Rider)
Utah Housing Sub. 3
VA 13
Construction 8
Construction A of C 5

Riders 2

What is happening today in mortgage lending: 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

Consumer and New RESPA

2010-01-13T12:19:00.001-07:00

How to you explain the new RESPA changes to the consumer? Here is an article that was in the Wall street Journal that could help
Rules to Clarify Cost of Mortgages

What is happening today in mortgage lending: 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 the New Subprime?

2009-12-10T08:12:00.001-07:00

I could not believe after everything we have been through that the feeling is still that our industry has huge problems.

The Subprime Wolves Are Back

FHA-Backed Loans: The New Subprime

The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more

Your 2010 Business Plan livng in Utah

2009-12-03T15:23:00.000-07:00

It is that time of year again when many of you are working on you business plan for 2010. You may find it helpful to reviewing the states Economic Summary (this was just updated at the end of October) and the reports for the Short-run Economic Forecast

You can always find these links on my blog on the right hand side of the screen under helpful websites.

It looks like going forward that FHA, UT Housing and Rural Housing are going to continue to play a very important roll in mortgage lending."

Inside the FHA Audit: the Disaster of Seller Financing

2009-12-02T15:22:00.001-07:00

Inside the FHA Audit: the Disaster of Seller Financing

By Brian Collins

It was well known inside HUD that a special program where non-profit housing groups arranged downpayments for low-income homebuyers was bad news for the Federal Housing Administration mortgage insurance fund. Department of Housing and Urban Development officials tried to stop the seller-funded downpayment program (SFDP) several times over the past decade — only to be blocked by the courts or supporters in Congress.

The homebuyer assistance program allowed sellers to fund the downpayment and then turn around and inflate the home price to recoup the expense. The seller also paid a fee to the non-profit for qualifying buyers and arranging the transactions. HUD saw it as a scam, though the downpayment assistance providers denied it.

It was well documented that buyers generally paid too much for the properties and ended up in high loan-to-value loans that were generally three times more likely to default than other FHA single-family loans.

And default they did. The latest FHA actuarial report calculates the damage SFDP inflicted on the FHA Mutual Mortgage Insurance Fund in startling detail. If the government had never endorsed SFDP loans, the economic value of the MMIF would be $13.2 billion as of September 30 — instead of $3.6 billion — a difference of almost $10 billion. In other words, FHA would be in stronger financial shape today.

The government began insuring SFDP loans in 1998. Over the years the program grew steadily, accounting for nearly 20% of coverage from fiscal 2004 through fiscal 2008.

Congress finally banned seller-funded downpayments and FHA stopped insuring the loans on October 1, 2008.

"On the positive side, following the elimination of this type of high-risk loan…the performance of the FY 2009 and future FHA books of business will be much improved over what would have been case if these loans were still being endorsed in significant amounts," the actuarial report says.

The actuarial report also points out that credit scores on FHA single-family loans have improved recently. The average FICO score in September hit 689, up 10% from September 2007.

Lenders originated a record $328.1 billion in Federal Housing Administration loans in FY 2009 and 44% of the loans have FICO scores above 680 and only 13% have FICO scores below 620, which is generally considered subprime.

In FY 2007, when FHA endorsements totaled $55.5 billion, only 19% of the loans had FICO scores above 680 and 47% of the loans had FICO scores below 620.

"The improved credit quality of FHA's recent originations debunks the myth that FHA is being overrun by subprime loans," said Brian Chappelle, a mortgage banking consultant in Washington. The founding partner of Potomac Partners noted that loans with FICO scores above 680 perform four times better than loans with FICO scores below 620.

FHA still has $30.7 billion in reserves (and set asides of $27.1 billion) — but that's after auditors made a $4.9 billion positive adjustment in recognition of the improved credit quality for FHA's current originations.

"No one can dispute that FHA defaults are increasing. However, the cause is the worst housing market since the Great Depression and not that FHA is insuring poor quality loans," said Mr. Chappelle.

News from Freddie Mac Regarding Loan Prospector

2009-11-25T12:40:00.002-07:00

I wanted to make you aware that there are some changes coming to LP (Loan Prospector). Please read the following:

On December 13, we’re updating Loan Prospector to align with previously announced underwriting and credit requirement changes. To help you identify these changes at origination, Loan Prospector will be updated with new and revised feedback messages to reflect:

• Revised underwriting requirements announced in our July 10 Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-18.

• Revised credit and property eligibility requirement changes announced in August 20 Guide Bulletin 2009-22 and October 9 Guide Bulletin 2009-24.

We are also updating Loan Prospector to reflect the reduced maximum loan-to-value (LTV) ratios for all cash-out refinance mortgages secured by 1-unit primary residences announced in the October 9 Guide Bulletin 2009-24.

New and Updated Feedback Messages to Support Revised Underwriting Requirements

On December 13, we are adding new and updated Loan Prospector feedback messages to provide you with additional guidance on our revised underwriting requirements announced in our July 10 Guide Bulletin 2009-18 for employment, income and assets. As announced in our October 9 Guide Bulletin 2009-24, these changes are effective for all mortgages with application dates on or after December 14, 2009, and Freddie Mac settlement dates on or after April 1, 2010.

Review the attached at-a-glance chart for the new and updated feedback messages, effective on December 14 for all Loan Prospector submissions, including new submissions and pipeline loans.

We encourage you to begin underwriting mortgages with the underwriting requirements announced in the HYPERLINK "http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0918.pdf"July 10 Guide Bulletin 2009-18 prior to the December 13 Loan Prospector release to strengthen your origination process and enhance the quality of mortgages you deliver to Freddie Mac. For assistance, please use the Loan Prospector Processing Reminders for Mortgages With Submission Dates Prior to December 14, 2009 tool. This tool provides the necessary information to apply the manual overlays and manage the existing Loan Prospector feedback messages.

New and Updated Feedback Messages to Reflect Recent Single-Family Seller/Servicer Guide Changes

On December 13, we are also updating Loan Prospector with the following new and updated feedback messages to support credit and property eligibility requirement changes announced in the August 20 Guide Bulletin 2009-22 and October 9 Guide Bulletin 2009-24.

The new and revised feedback messages are effective for all new submissions and resubmissions on or after December 14, 2009.

Updating Loan Prospector to Align With Revised Loan-to-Value Ratios for Cash-Out Refinance Mortgages

In our October 9 Guide Bulletin 2009-24, we lowered the maximum loan-to-value (LTV) without and with secondary financing/total LTV (TLTV)/home equity line of credit TLTV (HTLTV) ratios for cash-out refinance mortgages secured by one-unit primary residences from 85%/80%/85%/85% to 80%/75%/80%/80%. This change is effective for mortgages with settlement dates on or after February 1, 2010.

On December 13, we will update Loan Prospector to align with the new ratios. On or after December 13, if you resubmit a cash-out refinance mortgage using the higher LTV ratio, you will receive the following purchase restriction message:

Message Code Feedback Message Purpose

PUR 25 LTV/TLTV exceeds product limits. Indicates the LTV/TLTV/HTLTV ratios exceed Freddie Mac’s limit on a 1-unit cash-out refinance.

You may disregard this message if the mortgage:

• Has a settlement date before February 1, 2010.

• Meets the LTV/TLTV/HTLTV ratios in effect prior to this date.

Please review the Guide section 23.4 for the maximum LTV/TLTV/HTLTV ratios for cash-out refinance mortgages with Freddie Mac settlement dates on or after February 1, 2010.

Have a Happy Thanksgiving

Why use Utah Housing Loans for your borrower

2009-11-19T11:20:00.002-07:00

Do you want to know more about Utah Housing? Utah Housing can be a different animal here are a few tips that might help you:

1-Utah housing does 30 year fixed loans 1st mortgage they also have a 2nd mortgage allowing a CLTV of 102.5% (The second can be for 6% of the senior loan amount)

2-Utah Housing is for first time homebuyers, unless property is in a targeted area, a veteran or borrower is a single parent (Go to my blog to see target areas www.mtgview.blogspot.com right hand side of screen)

3-Single Parent Set Aside Loans require recent signed tax return showing filing head of household with at least one dependent child

4-The borrower’s current Household income can not exceed posted income limits (You can go to my blog for this information www.mtgview.blogspot.com)

5-Current Acquisition cost cannot exceed FHA loan amount limits (go to my blog)

6-Property does not exceed ½ acre

7-Co-signors debt ratio (including Proposed housing expense)can not exceed 41%

8-Middle of 3 FICO 660 or above (middle of 3, lowest of 2). If borrower does not have any FICO Scores UHC will accept these loans as long as HUD guidelines are followed. Borrower is not renting any portion of the home and property does not have the ability to be rented (i.e. no second kitchen)

9-Subject property will not be used more than 15% of the residence for a business

10-PUD & Condo’s that are FHA/VA compliant are acceptable

11- Large deposits on bank statements must be address and documented from an acceptable source

12-All income must be counted in calculating max income even if the income does not qualify to be used as qualifying income to calculate debt ratio

13-Income must be projected out for the next 12 months.

14. All income for household members over 18 must be addressed an projected forward 12 months

and income documented

15. You must have a CURRENT paystub. Review the project paystub out for 12 months. If current income is more than previous income it must be within the income limits. The income should be calculated at time of application.

16-Bonus income/overtime, etc. has to be averaged over the past few months and projected forward 12 months (this is for the calculation to see if the exceed max income limits not for qualifying purposes). For qualifying pupose they must meet FHA and/or VA guidelines for overtime/bonus income.

17-The VOE must support paystubs

18-Application must show a least 2 year residency history and the credit report should not show any history of a mortgage loans

19-All employment on the application must be documented even if it is not being used to qualify (it will be used to see if the exceed the income limits for Utah Housing)

20-All self employed income requires a current Profit and Loss Statement dated at time of application, no matter when tax returns were or were not filed.

21-Paystubs must be dated within a couple of weeks of the initial application date

22- Refinances are not eligible, except for construction loans or similar temporary initial financing have a term of twenty four months or less.

23-You can use FHA or VA loans for Utah Housing

24-No cash back to borrower at closing (borrower can receive any funds paid upfront)

25-BOU requires and AUS approval. If DTI is over 45% even with the AUS approval you must document compensating factors for the borrower

Remember Bank of Utah will do Utah Housing Loans on our Wholesale side.

FHA changes streamline guidelines

2009-11-18T12:44:00.000-07:00

FHA recently changed the guidelines to do a Streamline Loan. You can see more details on this by clicking on the FHA Menu.

Obama sigend the extension and expansion of the tax credit

2009-11-16T13:13:00.000-07:00

Looks like President Obama signed the extension and expansion of the tax credit about an hour ago. Please find the below article from CNN Money below.

$8,000 homebuyers tax credit extended

President Obama reups popular tax credit through June 2010 and expands it to include people with higher incomes and some who want to trade up into new homes.

NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.

The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

"The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

Who qualifies?

Nicholas provided four scenarios illustrating how the tax credit rules for existing homebuyers will apply:

• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.

• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.

• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.

• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.

How it helps the economy

Legislators and industry experts expect that the credit will encourage buyers such as Jane and Sue to move up their purchase plans.

"This bill will shift demand from the second half of 2010 into the first half," said Pat Newport, a real estate analyst with IHS Global Research. "As a result, home sales and prices will get a boost in the first half of 2010, with payback in the second."

That's not a bad thing, according to Bill Kilmer, vice president of advocacy for the National Association of Home Builders. It's important to stabilize real estate markets quickly to help bring the economy out of its tailspin.

The original $8,000 tax credit appears to have helped accomplish that goal: Home prices have inched up the past few months, according to the S&P/Case-Shiller Home Price Index.

Would it have happened anyway?

But critics still see the program as being ineffectual because it rewards buyers who would have purchased a home anyway. Newport estimates that fewer than 400,000 of the 2 million who have claimed the original credit made their purchases solely because of the tax advantages.

Furthermore, buyers do not, in reality, receive the entire benefit. "The credit helped prices stabilize," said Newport. "So the credit has been split between seller and buyer. The sellers are getting higher prices and buyers paying more than they would have without it."

The housing industry, however, is pleased with the extension, although the credit has not been quite as effective as they hoped.

The industry thought the credit would provide a ripple effect, with sales to first timers triggering as many three additional "move-up" sales.

That did not happen, according to Lawrence Yun, NAR's chief economist.

"It did not have the chain reaction impact it was supposed to," he said. "Instead, many first-timers turned to vacant, foreclosed or other distressed properties the sellers of which were unlikely to be move-up buyers."

So, the tax credit helped prop up the low end of the market without having much impact on the rest of the spectrum. Expanding the benefit to existing homeowners should boost those segments. That should produce additional benefits, according to Yun.

"Preventing further price decline or even nudging prices up a bit stabilizes housing wealth, which makes homeowners more comfortable in their spending," said Yun. "They're more likely to go out to the stores or buy a new car. That provides a boost to the overall economy."

Extension of the Tax Credit

2009-11-06T07:39:00.001-07:00

The Senate has approved extending the Tax Credit and has added a new provision that would allow non-first time homebuyers to get a claim for $6,500. The extension would run through June as long as there is a signed REPC by April.

At this point, the Senate is also trying to add some other provisions to the bill related to unemployment insurance and business loss tax credit. With that, it has to get approved by congress and then signed into law. The important thing here is that both the House and the Senate are in agreement on extending the Housing Tax Credit. So there is little doubt that it will get signed into law. However, IT IS NOT officially law just yet.

I will soon start posting again

2009-10-25T09:35:00.002-07:00

My last day with my current employer will be this Wednesday. I will soon start posting again. Do you have any questions you would like me to address?

What is happening today in mortgage lending: 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 revises the 4155 and 4000

2009-04-28T07:16:00.003-07:00

What is happening today in mortgage lending:
FHA announced last week the new online HUD Handbooks 4155.1, Mortgage Credit Analysis for Mortgage Insurance; and 4155.2, Lender’s Guide to Single Family Mortgage Insurance Processing. The online Handbook 4155.1 replaces Handbook 4155.1 REV-5, Mortgage Credit Analysis for Mortgage Insurance, One to Four Family Properties. The online Handbook 4155.2 replaces three handbooks 4000.2 REV-3, Mortgagees' Handbook, Application through Insurance; 4000.4 REV-1, Single Family Direct Endorsement Program; and 4165.1 REV-2, Endorsement for Insurance for Home Mortgage Programs (Single Family).

If they are true to their past history I am sure once we have read this there are numerous changes.

You can access it by Clicking here It is also a link on my FHA blog on the left hand side of the page

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

DU Refi Plus without Mortgage Insurance

2009-04-10T06:41:00.003-07:00

What is happening today in mortgage lending:
Fannie announces DU Refi Plus without Mortgage Insurance

Desktop Underwriter was updated last weekend to begin issuing DU Refi Plus findings for eligible Rate/Term Refinance transactions. The Loan Product Description, pricing and systems updates will be available Monday, April 6, 2009. We are not required to be the originator or servicer of the loan being refinanced.

Due to MI Company restrictions as well as operational concerns, the initial release of the DU Refi Plus product will allow only loans that do not require Mortgage Insurance. This includes loans with LTV >80% when there is not MI on the existing loan as well as loans with LTV <80%.>Following is a preview of the DU Refi Plus product:

LTV Matrix
1-4 unit Primary Residence, 2 unit Second Home, and 1-4 unit Investment Property transactions are allowed up to 105% LTV. See the Mortgage Insurance section below for more information.
Credit scores and ratios are determined by DU

Appraisal
Appraisal requirements will be determined by DU
Property Fieldwork Waivers may be allowed per DU findings

Condos
Condo project approvals are not required

Loan Amount
Conforming Generic and Conforming Plus loan amounts are allowed
The new Temporary 2009 loan limits will be available for this product. Details regarding new loan limits will be provided on Monday.
Loan amount may include:
Payoff of the unpaid principal balance of the existing first lien
Payment of closing costs, prepaids and discount points
Cash back to borrower not to exceed 2% of the new loan balance or $2,000

Mortgage Insurance
Refinance of existing loans with Mortgage Insurance is not allowed at this time

Ratios/Qualifying Rate
Ratios are determined by DU
Loans receiving Ineligible DU findings due to excessive expense (DTI) ratio are not allowed

Secondary Financing
New secondary financing is not allowed
Existing second liens must be re-subordinated
o CLTV/(H)CLTV restrictions do not apply

Underwriting/DU
Approve/Eligible or Approve/Ineligible required
Expanded Approvals are not allowed
The following Ineligible findings are allowed until a subsequent DU update scheduled for May 2, 2009:
LTV/CLTV or (H)CLTV exceeds 80%
Minimum representative credit score is not met
Ineligible findings for loan amount are allowed until DU is updated. Loan amount must meet current published limits.
Documentation requirements will be determined by DU with a minimum of:
Salaried: One (1) paystub and a Verbal VOE
Commissioned/Self-Employed: Most recent Federal Tax Return
Payment history for any mortgage debt must be 0 x 60 for 12 months regardless of DU approval

DU Refi Plus without Mortgage Insurance
Only loans currently owned by Fannie Mae are eligible for the DU Refi Plus program:
The Fannie Mae website has a Look Up Table available to aid in determining if a loan is owned by Fannie Mae. A link to the Look Up Table has been added to the Refinance (Rate/Term) section of the Loan Product Description.
Only loans that do not require Mortgage Insurance are eligible for the initial release of DU Refi Plus:
DU will indicate if the loan currently has Mortgage Insurance by issuing the following feedback message:
“The existing Fannie Mae loan being refinanced with this DU Refi Plus transaction contains the following mortgage insurance (MI) information (Provider/Coverage/Cert Number)”
Refer to Mortgage Insurance section of the Loan Product Description for documentation requirements when DU indicates that mortgage insurance does not exist.
Clarification has been added to the Mortgage Insurance section indicating the methods available for determining if the existing loan had Lender Paid Mortgage Insurance.

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 new Mortgagee letter

2009-03-26T03:04:00.000-07:00

What is happening today in mortgage lending:

Mortgagee letter 09-2009
TO: ALL APPROVED MORTGAGEES, ALL FHA ROSTER APPRAISERS
SUBJECT: Adoption of Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71) and Appraisal Reporting Requirements for Properties located in Declining Markets

Currently, all Federal Housing Administration (FHA) Roster Appraisers are required to report on housing trends in the Neighborhood section of the applicable property specific appraisal reporting form. The Uniform Standards of Professional Appraisal Practice (USPAP) mandate that an appraiser maintain documentation necessary to support all analyses, opinions and conclusions for each appraisal assignment in a work file. In order to ensure greater transparency and accuracy of appraisals performed for FHA-insured financing, FHA will adopt the Market Conditions Addendum (Fannie Mae Form 1004MC/ Freddie Mac Form 71, released November 2008). For all appraisals of properties that are to be security for FHA-insured mortgages and that are performed on or after April 1, 2009, the appraisal must include the Market Conditions Addendum…
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

Utah Stimulus Package helps builders and homeowners

2009-03-18T06:49:00.000-07:00

What is happening today in mortgage lending:
The Utah Stimulus bill will go into affect once the Governor signs it. I have a call into the Governors office to find out when that will take place. I know the last day for him to sign everything is April 1st. I hope this helps you.
Basic info: Income limits of 150,000 for a couple and 75,000 max for an individual. Must be a home that has never been lived in. Must be a 30 yr. fixed loan

Is this a sign things has bottomed out? Briefing.com: Housing Starts Jump 22.2%

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 new mortgagee letter limiting cash out to 85%

2009-03-17T06:52:00.005-07:00

What is happening today in mortgage lending:

FHA issues a new mortgagee letter annoucing the new maximum cashout for refiances FHA loans is 85%. Go to http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Utah Senate Okays bill to help home buyers

2009-03-16T04:46:00.002-07:00

What is happening today in mortgage lending:
Don’t forget March 18th we are offer a class for free CE credits.

This grant program is for any borrower who are within the income limits and is buying a home that has never been lived in before.

Utah Senate Okays bill to help home buyers

Don’t forget the green tomorrow!

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

Industry Letter from HUD; Finacial Stability

2009-03-06T03:32:00.000-07:00

What is happening today in mortgage lending:

Making Home Affordable Plan:
Two weeks after the President unveiled his plan to help promote homeowner affordability, we are moving forward today with these guidelines to implement that plan," HUD Secretary Shaun Donovan said. "This step forward represents a tremendous coordinated effort between major government and regulatory agencies to help bring relief to America's housing market and homeowners. This plan will help make home ownership more affordable for nine million American families and in doing so, help to stop the damaging impact that declining home prices have on all Americans. To Learn More About the Making Home Affordable Plan’s Refinance and Modification Options, Please visit: http://www.financialstability.gov

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

Economy shrinks; Home Sales

2009-02-27T09:16:00.001-07:00

What is happening today in mortgage lending:
Economy Shrinks at Faster-Than-Expected 6.2% Pace - washingtonpost.com

New-Home Sales in U.S. Plunge to Record-Low 309,000 (Update1)

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 Increases Loan limits

2009-02-25T08:23:00.001-07:00

What is happening today in mortgage lending:
FHA Loan limits increase http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-07ml.doc

All other counties would remain at the 271,050
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 sends out Industry letter

2009-02-23T09:19:00.000-07:00

What is happening today in mortgage lending:
.Freddie Mac sent this industry letter out last week. I found the link very interesting
Today's News ...
Today, President Obama announced his Homeowner Affordability and Stability Plan and referenced the role that Freddie Mac will fulfill in assisting borrowers through a new refinance initiative and a new loan modification program. We are pleased to support this initiative and look forward to working with the Administration.
We support this important effort and expanding our role in keeping families in their homes, strengthening communities, and bringing stability to the nation’s housing market. We are currently finalizing the program and operational details with the Federal Housing Finance Agency, the Department of the Treasury and other industry participants. We plan to announce additional details of the initiative, including how customers servicing Freddie Mac-owned mortgages will participate, in early March.
At this time, the only publicly available information on the Homeowner Affordability and Stability Plan is posted on the Treasury Department’s Web site, www.financialstability.gov. We encourage you to review this preliminary information now, and anticipate the release of additional details in early March. In addition, it is important that you direct all consumer inquiries to this Web site for more information. Freddie Mac’s (800) FREDDIE call center will also direct consumers to this Web site until more information is available.

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

Obama;s Mortgage Plan; Good Economic News

2009-02-18T09:33:00.001-07:00

What is happening today in mortgage lending:Investors Look to Obama Mortgage Plan - Forbes.com

ABC News: Some See Good Economic News on the Horizon

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 Silver Bullet; Are DPA coming back

2009-02-17T08:07:00.000-07:00

What is happening today in mortgage lending:
Headlines that caught my eye this morning and the stories behind them.
Financial Crisis: "Silver Bullets" for Toxic Mortgages? - BusinessWeek
Down-payment aid program resurfacing - Los Angeles Times
Is Seller Paid Down Payment Assistance Coming Back?

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

Lenders dropping mortgage brokers

2009-02-13T08:25:00.001-07:00

What is happening today in mortgage lending:
Lenders dropping mortgage brokers - Feb. 12, 2009
I have had a few broker shops call concerned over the future of brokers. I thought you might be interested in some good advice I heard from someone who knows what the secondary and capital markets are doing. His advice was as follows; In order for brokers to survive from unnecessary actions to be taken by lenders make sure you have a good quality control plan in place. Don’t deliver loans that are not going to close and make sure they are well processed. Lock loans and don’t let them expire. Don’t churn your pipeline. These are things that Lenders are rating brokers on. I expect in the future the incentives to brokers from lenders are not going to come necessarily from the amount of loans you deliver as much as it will come from the quality of the loans a broker delivers.

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

PMI no longer insureing TPO Loans

2009-02-12T21:10:00.001-07:00

What is happening today in mortgage lending:

PMI will no longer insure TPO loans
Many lenders are currently deactivated brokers. The deactivation is due to lack of activity or high SBroker Scores. I will be notifying those managers of companies that have been deactivated. Once I notify the managers I will have to take those who are not approved with us off of my morning rate email distribution list. If the situation changes I will let those who are deactivated know and hopefully in the future we can work something out.
Remember watch your pipelines and do not let locks expire. Send loans in within 15 days of locking them. Try your best to make each deal you send in work, don't pull them and move them to other lenders. Your pull through rate affects your Smart Score.

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

2009-02-11T08:07:00.002-07:00

What is happening today in mortgage lending:

Effective February 11, 2009:

Their will be new adjustments to conforming rate sheet please notice change on rate sheet

What is happening this week

2009-02-10T07:08:00.001-07:00

What is happening today in mortgage lending:

What is going on this week?

Remember last day for Refinances to be submitted is Feb 11, 2009 if you want to insure you close them this month. Great news our underwriting turn times are 4 days! Check out our rates I think you will see where in the game again.

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 reissues new policy on number of properties owned by one borrower

2009-02-09T07:29:00.002-07:00

What is happening today in mortgage lending:
Fannie issues a new bulletin
This Announcement contains updates and clarifications to several Fannie Mae policies as
Itemized below:
 Multiple mortgages to the same borrower. Currently Fannie allows 4 properties to be financed by the same borrower. Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement. Read bulletin for complete details
 Reserve requirements for investment properties and second homes
 Definition of liquid financial reserves
 Multistate 1-4 Family Rider - Assignment of Rents (Forms 3170 and 3170.53)

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

Reasons to buy a house; Mortgage rates rise defying Feds

2009-02-06T08:47:00.001-07:00

What is happening today in mortgage lending:

Check these articles out
Five reasons buying a house now is a wise move - MarketWatch

Mortgage rates rise, defying Fed's efforts to slash them Money & Company Los Angeles Times
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

Home Starts, Builder hammer Senate

2009-02-05T08:41:00.000-07:00

What is happening today in mortgage lending:
This is the headlines I found in this morning news that I thought you mind find of interest.
Home starts fall 39 percent in fourth quarter Chronicle Chron.com - Houston Chronicle

Home builders hammer Senate about stimulus plan - News- msnbc.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

Recap of changes in January

2009-02-04T08:10:00.002-07:00

What is happening today in mortgage lending:
Many lenders are no longer allowing a 15 or 30 day lock unless the file is in our office. A 15 day lock the loan must have an approval. Our rate sheet only shows 45 day locks. Call Jan for 15 and 30 day pricing.

Any loan locked must have been received in our office with 15 days of the lock or the lock will be cancelled.

Not delivering loans that are locked will affect your Brokers Score. Brokers with high Broker Scores will be cut off from doing business with your lender. Please keep your pipeline clean any loan up loaded into Pronto that is not delivered please remove them from your pipeline.

The broker can order the appraisal on FHA loans that require a 2nd appraisal for cash out above 85% currently a 2055 is acceptable but it must be done by an FHA approved appraiser.

Documents must be within 60 days of the final underwriter approval and with 120 days of closing. New construction must be within 180 days of closing.

FHA loans that the borrower or c borrower has a contingent c-signer debt will be counted against them even if the other party is making the payments if our borrower was the primary obligator on the contingent debt.

PIW are no longer acceptable however we will take the options provided by DU. If DU requires a 2075 (which shows no value) we will accept them.

All Refinance must be received by our office by Feb 11th in order to close by the end of the month.
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

TrendLines

2009-02-02T07:16:00.003-07:00

What is happening today in mortgage lending:
The Department of Work Force Service puts out a magazine 6 times a year. I always find it interesting. This issue I found the focus on What caused the finacial crises very interesting. They did a spotlight on Morgan county. I always like to look at the unemployment figures by county. I thought you might want to look this over

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

Policy of "Credit Easing" Works, Cramdowns and Appraisals

2009-01-30T06:29:00.005-07:00

What is happening today in mortgage lending:

Here are a few articles I found interesting in my morning reading. Please always feel free to post your comments.
How Bernanke's Policy of 'Credit Easing' Works

Cramdowns and Refinancings Won't Need Appraisals

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

FHA has revied their loan calculation worksheets

2009-01-29T06:26:00.002-07:00

What is happening today in mortgage lending:
FHA has revised their loan amount calculation worksheets. You can go to my blog and print off the Work Sheet 1 Rate and Term, Work Sheet 2 Cash out , Work Sheet 3 Streamline without an appraisal , Work sheet 4 Stream line with an appraisal as well as the Purchase work sheet

You can always find these work sheets in my FHA menu on my blog on the left hand side under forms.

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

Utah's Economic Forecast for 2009

2009-01-27T18:48:00.005-07:00

What is happening today in mortgage lending:

We are now looking at the end of the first month of the year. We all have a lot of questions regarding what the future has in store. I thought you might be interested in looking at the Economic Forecast for 2009 I think there is some valuable information here.

Please if you have not sent in your Credit Authorization make sure you get it in today. If you do not have this signed by Friday you will no longer be able to do business with Met Life. You may email or fax to me.
Remember to check out my blog. I house all the information I send out in emails on this blog. I noticed that my FHA blog is getting a lot of hits a day. Check it out and see if it will help you close more loans. Notice our Conventional pricing!

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

Brokers need to complete Credit Authorization to continue doing business with MET

2009-01-26T06:59:00.001-07:00

What is happening today in mortgage lending:

ALL BROKERS NEED TO COMPLETE THE CREDIT AUTHORIZATION FORM IN ORDER TO CONTINUE DOING BUSINESS WITH US. PLEASE GET THIS BACK TO ME COMPLETED ASAP.

IF WE DO NOT HAVE THESE TURNED INTO CORP BY THE END OF THE MONTH THEY WILL BE CUTTING BROKERS OFF.

ALSO, ANY LOAN LOCKED AND NOT DELIVERED WITHIN 15 DAYS OF LOCK WILL BE CANCELED. IF YOU HAVE A LOAN THAT YOU NEED TO KEEP IN THE SYSTEM BEYOND THE 15 DAY WE NEED TO BE NOTIFIED. THIS IS IMPORTANT THAT WE STAY ON TOP OF THIS.

THANK YOU FOR YOUR HELP IN THESE MATTERS.

IF YOU HAVE ANY QUESTIONS PLEASE FEEL FREE TO CALL

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. Yields Flattened: Fed Seeks Lower Mortgage Rate

2009-01-21T08:21:00.001-07:00

What is happening today in mortgage lending:
Headlines you maybe interested in
U.S. Yields Flattened; Fed Seeks Lower Mortgage Rates

Rate Probability: Sideways to Volatile

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 Message from HUD

2009-01-20T09:25:00.001-07:00

What is happening today in mortgage lending:
Four Messages for FHA Lenders:

1. FHA Industry Call: Maximum Mortgage Calculation:

Wednesday, January 28th at 2 pm, FHA will provide a comprehensive review of the maximum mortgage calculation for all mortgage products, including purchase loans, all types of refinances, and 203(k). Materials will be provided the week of the call. The call-in number is 202-866-207-0413 and the ID number is 81608101.

2. 203(k) and Streamlined (k) Maximum Mortgage Calculation Clarification:

The new cash investment requirements for all FHA case numbers assigned on or after January 1, 2009 also applies to the calculation of the loan amount for Section 203(k) and Streamlined (k) loans. Until the new 203(k) Maximum Mortgage Worksheet, form HUD-92700 is posted, please use the following guidance to modify the existing worksheet. As stated in Mortgagee Letter 2008-23, the Loan-to-Value (LTV) for 203(k) loans may exceed 100% of the appraised value. Modifications have been made to the existing worksheet and will be posted upon completion of the clearance process.

“Form HUD-92700 203(k) and Streamlined (k) Maximum Mortgage Worksheet:

Mortgage Calculations for Purchase Transactions (Section C)

Line C1 stays the same

Line C2 stays the same

Line C3 stays the same

Line C4:

Mortgage Amount = Sum of C3 +(-) Required Adjustments (Note 4) ($__________)

LTV Factor (96.5%) (Owner-Occupant) or Less Allowable Down Payment/HUD Owned Property ($__________) (Note 5)

Line C5:

Statutory Investment Required (C3 x 3.5%)

Line C6:

Actual Cash Investment Required (C3 + A5 minus C4 ($__________) (This figure must be equal to or greater than C5; if less, an adjustment must be made to C4 to ensure a 3.5% investment
Mortgage Calculations for Refinance Transactions (Section D)

Line D1 stays the same

Line D2 stays the same

Line D3: D2 ($__________) x LTV Factor (97.75%) (Owner-Occupant)

Line D4: Maximum Mortgage Amount is the Lesser of D1 or D3 (Note 5)

Line D5 stays the same”

3. Clarification to Requirements of Mortgagee Letter 2008-40: Cash-Out Refinance Transactions:

On page 5, all of the requirements listed under the heading “Additional underwriting and eligibility criteria” are applicable to all cash-out refinance transactions where the LTV exceeds 85%.

4. Streamlined Refinance Transactions at 2008 Economic Stimulus Loan Limits:

FHA will permit loans originated under the 2008 loan limits to be refi-ed at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as:

the new loan amount (without MIP) does not exceed the prior case loan amount and
the new appraised value supports the loan amount and the LTV is not greater than 97.75%.

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

Things you may want to know before submitting a package

2009-01-16T08:20:00.010-07:00

What is happening today in mortgage lending:
As of Jan 24th Du will be updated. The up date will now show the correct county limits. The update will also make it so a VA cash outloan with loan amounts over the $144,000 will not get an ineligible just because the loan amount is exceeded.

Non Traditional credit will now require that the credit bureau provide Names and address of the trade line being verified. As of Jan 1, 2009 credit reports are only good for 60 days up to final approval. If a loan was final approved with in the 60 days the loan must close and fund within 120 days of the credit report.

If the mortgage rate is lower on a transaction after the approval is issued and there is no other issues on the loan it does not have to go back through underwriting.

FHA loan with and without a DU or LP approval must have compensating factors if the DTI is over 43%

FHA transactions that require two appraisals one appraisal can be a 2055 exterior. We do allow a 5% variance between the two appraisals.

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

Appraisal changes May 1 2009

2009-01-15T08:45:00.001-07:00

What is happening today in mortgage lending:
We have been waiting for the appraisal changes here they are. Freddie Mac HVCC Bulletin and FAQ:

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

Bond Report; Chase Exits wholesale; and more

2009-01-14T08:08:00.002-07:00

What is happening today in mortgage lending:

Here are articles that I found interesting this morning during my morning reading and thought you might be interested

BOND REPORT: Treasurys Down After Bernanke Says Fed May Buy U.S. Debt

Chase Stops Funding Mortgages Through Brokers - Articles - On Wall Street

US FED: Rosengren Supports Expanded FHA Mortgage Lending - Forbes.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.

SAFE Mortgage Licensing Act

2009-01-08T06:32:00.002-07:00

What is happening today in mortgage lending: Three New Federal Register Notices:. I thought you would be particularly interested in this one.
DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
[Docket No. FR-5271-N-01] [Federal Register: January 5, 2009 (Volume 74, Number 2)][Notices] [Page 312-313]
TITLE: S.A.F.E. (SAFE) Mortgage Licensing Act; Notification of Availability of Model Legislation
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD.
ACTION: Notice.
SUMMARY: This notice announces that the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators have developed model legislation to assist states in meeting the minimum requirements of the SAFE Mortgage Licensing Act. HUD has reviewed this model legislation and finds that it meets the minimum requirements of the SAFE Mortgage Licensing Act. The model legislation is available on HUD's Web site at: http://www.hud.gov/offices/hsg/sfh/reguprog.cfm, along with HUD commentary on certain provisions of the statute, and the model legislation…
to read this notice in its entirety please visit: http://edocket.access.gpo.gov/2009/E8-31389.htm
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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\

Don't forget changes in place as of Jan 1 2009

2009-01-05T07:44:00.004-07:00

What is happening today in mortgage lending:

I was reviewing articles this morning and decided there are a few things that you should know that are not in any recent article.

1-All FHA loans that case number is ordered on or after Jan 1, 2009 the down payment requirement is now 3.5 for purchase transactions.

2-FHA Cash out refinances will now require two apprisals if ltv is over 85%

3-Rate and Term Refiances can now be 97.75% LTV plus the upfront MIP

4-Mtg Letter 08-40 now requires a borrower doing a cash out refinancing must have occupied the home for 12 months or more.

5-Mtg Leter 08-40 now requies a borrower doing a cash out refinancing must not have any lates in the last 12 months

4-Remember when doing a streamline refinance without an apprisal YOUR BASE LOAN AMOUNT CAN NOT EXCEED YOUR PREVIOUS LOAN AMOUNT (example if your old loan amount including MI was 101,500 your new base loan amount is 101,500 )

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

Happy New Year

2008-12-31T08:03:00.001-07:00

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

2008-12-30T09:34:00.003-07:00

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

2008-12-29T06:30:00.002-07:00

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

2008-12-22T08:24:00.005-07:00

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

2008-12-18T07:16:00.002-07:00

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

2008-12-17T07:06:00.002-07:00

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

2008-12-15T08:43:00.001-07:00

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?

2008-12-12T04:40:00.001-07:00

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?

2008-12-12T04:02:00.002-07:00

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

2008-12-09T06:39:00.002-07:00

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

2008-12-08T06:38:00.002-07:00

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

2008-12-03T07:50:00.001-07:00

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

2008-12-02T06:54:00.003-07:00

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

2008-11-25T06:09:00.003-07:00

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

2008-11-24T07:38:00.002-07:00

> 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

2008-11-21T05:15:00.004-07:00

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

2008-11-20T04:53:00.003-07:00

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

2008-11-19T06:48:00.004-07:00

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

2008-11-18T07:26:00.003-07:00

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

2008-11-17T08:25:00.001-07:00

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

2008-11-14T07:09:00.002-07:00

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

2008-11-12T06:52:00.000-07:00

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

2008-11-11T05:11:00.003-07:00

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

2008-11-10T04:57:00.001-07:00

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

2008-11-05T08:05:00.003-07:00

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-

2008-11-04T07:29:00.002-07:00

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

2008-11-03T05:13:00.000-07:00

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

2008-10-29T06:08:00.003-07:00

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?

2008-10-28T08:48:00.005-07:00

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

2008-10-27T07:12:00.002-07:00

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

2008-10-24T05:49:00.002-07:00

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

2008-10-23T16:07:00.001-07:00

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

2008-10-23T07:08:00.002-07:00

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

2008-10-22T06:01:00.003-07:00

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