Wednesday, September 7, 2011

Things Change

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

Tuesday, May 25, 2010

Final Post

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

Friday, April 23, 2010

FHA issues Mortgagee Letter 10-13 and 10-15

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

Monday, April 19, 2010

FNMA releases 8.0 over the weekend

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

Tuesday, April 6, 2010

FNMA Conducts National Housing Survey

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

Friday, March 26, 2010

Rural Housing Funds

What is National Mortgage News Online saying about Rural Housing funds

Utah Housing Rate annoucement

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

Friday, March 19, 2010

FHA Says Higher Down Payments Risks Double-Dip Price Decline

To read this aricle in full go here

Friday, March 12, 2010

Q&A for FHA Condo Guidelines

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

Thursday, March 4, 2010

FHA Changes UFMIP

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

Thursday, January 21, 2010

Two new Mortgage Letters issued from HUD

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)

Wednesday, January 20, 2010

FHA Changes

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

Friday, January 15, 2010

Need to know for your GFE

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

Wednesday, January 13, 2010

Consumer and New RESPA

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

Thursday, December 10, 2009

FHA the New Subprime?

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

Thursday, December 3, 2009

Your 2010 Business Plan livng in Utah

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."

Wednesday, December 2, 2009

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.

Wednesday, November 25, 2009

News from Freddie Mac Regarding Loan Prospector

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

Thursday, November 19, 2009

Why use Utah Housing Loans for your borrower

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.

Wednesday, November 18, 2009

FHA changes streamline guidelines

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

Monday, November 16, 2009

Obama sigend the extension and expansion of the tax credit

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."