Mortgage News

Use this article to help educate your customer on what they will need to do to Refinance.

"Prepare Now for the next mortgage refinance"
http://www.latimes.com/business/la-re-lew27apr27,1,5468163.story

Congressman Outlines Support for Plan to Help Ease Mortgage Crisis
http://originatortimes.com/content/templates/standard.aspx?articleid=3097&zoneid=5

ECONOMIC, HOUSING & MORTGAGE MARKET OUTLOOK from RMIC
http://www.rmic.com/productsandservices/marketanalysis/specialreports/Documents/ECOutlook2%204-22-08%20FINAL.pdf

Mortgage News

The Mortgage Market This Week http://originatortimes.com/content/templates/brm.aspx?articleid=3067&zoneid=2

The trillion-dollar mortgage time bomb Risks are rising that Fannie Mae and Freddie Mac may need a government bailout that could cost far more than previous rescues http://money.cnn.com/2008/04/21/news/economy/fannie_freddie/?postversion=2008042103

UPDATE 1-Fed's Kroszner urges clearer mortgage standards http://www.reuters.com/article/marketsNews/idUSN2145220320080421?pageNumber=1&virtualBrandChannel=0

Agency News (FHLMC)

You are reading key updates from Freddie Mac Today's News... In our April 22 Single-Family Seller/Servicer Guide (Guide) Bulletin, we are announcing changes to our credit requirements that reflect current market conditions. We are also updating our requirements to capture additional capabilities recently made available through the selling system, including the sale of mortgages under the fixed-rate Mini Guarantor execution, and the expansion of the life cap range for certain adjustable rate mortgages (ARMs). Please refer to the April 22 Guide Bulletin, now posted on FreddieMac.com, for complete details on these changes and more.
In the Bulletin, we are making the following changes to our selling requirements:
Revising our requirements for second home mortgages to limit the number of 1- to 4-unit financed properties in which a borrower may have an individual or joint ownership interest (including the subject property) to four
Revising our requirements for investment property mortgages to reduce the number of financed properties in which a borrower who owns more than one financed investment property may have an individual or joint ownership interest (including the subject property) from 10 to four
Revising our “no cash-out” and cash-out refinance mortgage requirements as follows:
Mortgages that are originated as cash-out refinance mortgages, held by the Seller for less than six months, and then refinanced as “no cash-out” refinance mortgages must be sold to Freddie Mac as cash-out refinance mortgages
The borrower on a cash-out refinance mortgage must have owned the subject property for at least six months prior to the note date of the new refinance mortgage
Announcing that we are enhancing the Freddie Mac selling system to:
Permit the sale of mortgages under the fixed-rate Mini Guarantor Program
Expand the life cap ranges for certain ARMs
Providing clarity on how Freddie Mac calculates and rounds loan-to-value (LTV) ratios
We are also updating the Guide to reflect the changes to credit requirements announced in our special February 21, 2008 Bulletin, and refining those requirements to provide that also effective for mortgages with Freddie Mac settlement dates on or after June 1, 2008:
Section 184 Native American Mortgages with LTV/total LTV (TLTV)/home equity line of credit TLTV (HTLTV) ratios greater than 97% remain eligible for purchase, in addition to Home Possible® Mortgages with a minimum Indicator Score of 700, FHA/VA Mortgages, and Section 502 GRH Mortgages
Sellers must also reduce the maximum HTLTV ratio when a property is located in a market with declining values
Finally, we are providing additional guidance to assist lenders in implementing First-Time Homebuyer education requirements for Home Possible purchase transaction mortgages, which we modified in our February 21, 2008 Bulletin.

http://freddiemac.com/sell/guide/bulletins/pdf/bll042208.pdf Review the full document

Mortgage News

When shopping for a Mortgage loan how can consumers compare apples to apples. This article may help

Mortgage Confidential: How to compare mortgage closing costs
http://www.walletpop.com/2008/04/14/mortgage-confidential-how-to-compare-mortgage-closing-costs/

This could be good news for brokers

"Regulator knocks Fannie, Freddie appraisal deal"
http://www.reuters.com/article/bondsNews/idUSN1636229120080416

PMI News

http://www.pmi-us.com/guidelinechanges/ Limited Documentation & PMI Distressed Markets List Changes Effective 6.1.08

Mortgage News

Bernanke says recession possible
http://news.yahoo.com/s/ap/20080402/ap_on_bi_ge/bernanke_congress

Fannie, Freddie regulator sees more risk ahead
http://www.reuters.com/article/telecomm/idUSN1545959520080416

Brokers feel a pulse in home market
http://www.reuters.com/article/newsOne/idUSN032843220080416

S & L Crisis vs. Mortgage Meltdown: What Happened?
http://www.americanchronicle.com/articles/58331

Mortgage News

Fannie warns homeowners who walk away
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/12/RE34101D2M.DTL

Mortgage News

Senate Approves Housing Relief Bill
http://www.nytimes.com/2008/04/11/business/11housing.html?_r=1&th&emc=th&oref=slogin

The Fed’s Money Well Spent
http://www.nytimes.com/2008/04/11/opinion/11rivlin.html?th&emc=th

Agency News

FHA Mortgagee 08-09
Letter Second Appraisal Requirements/Limits on Cash-Out Refinances
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-09ml.doc

Mortgage News

Mortgage Rate Forecast For April 2008
http://www.huliq.com/55713/mortgage-rate-forecast-april-2008

Mortgage Meltdown Cools
http://www.foxbusiness.com/markets/industries/finance/article/mortgage-meltdown-cools_544753_9.html

Agency News

Mortgage Eligibility and Pricing Updates for Desktop Underwriter® and Manually Underwritten Loans (Announcement 08-08)
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0808.pdf

Mortgage News

Federal Reserve to maintain mortgage problem hotspot map (Interesting interactive map check out the map www.newyorkfed.org/mortgagemaps
http://www.forbes.com/afxnewslimited/feeds/afx/2008/04/01/afx4840866.html

Market Spotlight: Mortgages (you may want to give this article to your consumer)
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24184880.htm

HUD chief resigns amid inquiries, mortgage crisis
http://www.dallasnews.com/sharedcontent/dws/news/nation/stories/DN-jackson_01nat.ART0.State.Edition2.46594c2.html

GE Policy on Loans for Properties in Delcining/Distressed Markets

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

Mortgage News

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

Agency News

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

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

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

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

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

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

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

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

How bad is the mortgage crisis going to get?

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

Fed Acts to Rescue Financial Markets

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

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

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

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

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

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

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

Freddie Ask for Your Feedback on Pending Appraisal Reform

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

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

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

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