To assist with the needs to communicate this we are going to now update all parties on appraisal/title order and received dates.

Lastly, just wanted to thank those we worked with last year and let you know what we are doing for you and our clients. Below is a sneak peak of a partial copy of the email that is going out to the clients closed in 2010 – reminding them to file for homestead exemption before April 1. If you were the referral source we now included you in the message – just look below. The message will be sent out on Monday!

This is a great time for you to reach out to others if you hadn’t already done so!

Please visit the easy notes for the program guidelines as a refresher.

Idea I heard as you are planning your business for the end of the year

            -  Keep it small and keep it all!

please click here for HUD letter

Congress has passed H.R. 5981 which gives FHA the authority to increase monthly premiums. It appears to become effective for case numbers issued after September 7, 2010. At the same time UFMIP will be reduced to 1.00%. The changes will be as follows:

UFMIP: 1.00%

Monthly Mortgage Insurance for LTV’s < 95% = .85

Monthly Mortgage Insurance for LTV’s > 95% = .90

The current Monthly Mortgage insurance rate is at .55

Example:

Some people are advertising this as a benefit to the buyer with the lower upfront MIP.  I am not seeing the overall benefit based on the economics.  The benefit long term is that this will help FHA shore up its reserve account in the market we are in to ensure financial stability – I get that.  At the end of the day - Yes it will cost the buyer more money – but this is not the worst thing and puts numbers more in line with conventional mortgage insurance.  Roughly for every $100,000 financed the cost will be about $25 per.   

Summary – If your working with a buyer now use this to create a sense of urgency and please remember it is only a 3.5% down payment.

1. USDA Loans

2. FHA Updates

Having success with our FHA 203ks loan program. The date on the 203ks class is May 7th @ 11am. Spots will be limited 3 spots left if you have not registered.

MORTGAGE RATES Loan Programs Interest Rates* 30 Year Conv. Low 5′s 30 Year FHA/VA Low 5′s Rural Development Mid 5′s 5/1 Arm Conv. Low 4′s 7/1 Arm Jumbo Low 4′s Please contact us for specific situations and specific rates. *Risk Based Pricing will affect rate offered. UNDERWRITING TIMES Loan Programs Underwting time Conv 1 Days FHA & VA 4 Days 203K 4 Days Rural Housing 7 Days DCA 4 Days MORTGAGE RATE TRENDS DAILY RATE LOCK ADVISORY For an in depth explanation The Daily Rate Lock Advisory.

FHA Recent Announcement on Policy Changes

The Federal Housing Administration announced today that FHA will be taking active measures to address risk and strengthen finances by announcing policy changes that will affect future FHA loan files. These changes include: Increasing Mortgage Insurance Premium to build up capital reserves. The first step will entail an increase to UFMIP by 50 basis point (2.25). with a follow up request to legislative authority to increase annual MIP. HUD is scheduled to release a Mortgagee letter tomorrow that will be in effect in early spring. (No attachments).

FHA will also implement a New Credit Score requirement for all borrowers. All borrowers must have a minimum score 580 in order to qualify for minimum down payment of 3.5%, any borrowers with scores less than 580 will be required to bring in a minimum of 10%. Please note most lenders require a 640 credit score. Premier Capital Mortgage will not be affected by some of these changes as our minimum credit score for FHA Purchase transactions is 620. These changes will be effective in early summer of 2010.

Lastly, HUD has announced they will reduce allowable sellers concessions from 6% to 3%. This change will be posted in the Federal Register in February and will be effective in early summer of 2010.

Click here for details: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

HUD Relaxes Anti-Flipping Guidelines – IMPORTANT!

Recently HUD released a memo on relaxing current Anti-Flipping guidelines which would permit a waiver to the existing 90 day seller seasoning guideline. This waiver will be effective 2/1/2010. We have received a number of questions regarding this waiver and the availability to use this waiver for new applications. Please note although HUD has relaxed their requirement for seller seasoning, we are still at the disposal of our investors requirements. Our investors are in the process of reviewing the waiver, and will release subsequent bulletins which will provide further guidance on any overlays if applicable. Please make sure that you advise all clients/referral partners, that although this waiver exists, investors on secondary market may have further overlays. More to follow!

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week’s statement is the Fed’s nice way of saying “no.” They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will most likely climb higher…most likely back above the 6% area. Next year this time we could be in the mid to low 6′s.  So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Now is the time to take action.

MORTGAGE RATES

Please contact us for specific situations and specific rates.

*Risk Based Pricing will affect rate offered.

MORTGAGE RATE TRENDS

DAILY RATE LOCK ADVISORY

For an in depth explanation and daily update click on The Daily Rate Lock Advisory.

FHA Appraisal Changes

1- Changes effective January 1st, 2010.

2- Mortgage brokers and commission based lender staff are now PROHIBITED from selecting the FHA appraiser.

3- Lenders are not required to use Appraisal Management Companies.

4- When a borrower switches lenders FHA prohibits the 2nd lender for ordering additional appraisals to obtain a higher value unless:
-The FHA DE underwriter determines the 1st appraisal is deficient
-The appriaser of the 1st appraisal is the other lenders exclusionary list
-The first lender delayed the trasfer of appraisal to cause harm

5- Appraisals are now valid for only 120 days for all existing and proposed or under construction properties.
Please remember that this has just been released and that most lenders have not created policy to handle this.  Just like most other regulatory changes this year I am sure most lenders will create their own policy on how to comply with these guidelines.  The good news is that everyone has some time to prepare.  I don’t believe this will be difficult to work with and will update you as things continue to develop.

Strategies and Tips for Realtors on working with Appraisers and the HVCC:

Remove the lockbox off of the home before the appraiser comes out to generate a phone call from the appraiser asking to gain entry (make sure you enter “call before showing” in listing info).  When the appraiser calls, politely ask them to get a sense of their competency. Here are some suggestions: Where are they based? Have they ever appraised in the area before? What data sources will they be utilizing? Do they have enough time to complete the appraisal?

1. If you feel that the appraiser is not knowledgeable about the area, politely ask them to hold off. Next contact the lender and see about having someone else assigned. Rely heavily on the USPAP(page2)rules regarding appraising only in geographical areas in which an appraiser is competent (familiar).
2. Provide comps of your own before the appraiser comes out. This is important as appraisers have to take pictures and will want to avoid making a second trip. It is also important that the comps you offer have closed in the last 3 months. Comps closing longer than 3 to 6 months will likely be adjusted downwards for date of closing. (Comps closing longer than 6 months ago are unacceptable).
3. Download this helpful document from the NAR regarding the HVCC and educate yourselves.
   
   

MORTGAGE RATES

Please contact us for specific situations and specific rates.

*Risk Based Pricing will affect rate offered.

MORTGAGE RATE TRENDS

DAILY RATE LOCK ADVISORY

For an in depth explanation and daily update click on The Daily Rate Lock Advisory.

This is not surprising to me as many times, we(Lenders) receive realestate contracts are lucky to have any disclosure notifying anyone that there is a Home Owners Association(HOA).  It is great for a lender to know up front so we can quote accurate closing costs and payments.  Home owner associations have initiation fees that can affect the buyers funds for closing or monthly fees that affect payments.  Upfront disclosure is always the remedy for all parties to facilitate a smooth closing.

To miss closing dates or have delays caused by no one obtaining the HOA info or being able to clear any conditions in a 30 day period is unacceptable.  This is not meant to point fingers but there has to be a better way.  I believe the first line of defense against this is a listing agent providing information on the HOA and to properly disclose in the initial contracts.  This will greatly assist all so that by the time it reaches the closing attorney they are alerted to contact the HOA and can now get any information pertaining to the home.  Lets not wait for the title report to come back.  Buyers agents also need to ask when making offers – may be helpful to provide in the listing information.  Once this  is identified up front this should allow for more time for the title agent to obtain the info.  Again lets not wait for the closing agent to find out there is a HOA and then start the process.  I find it hard to belive that a listing agent would not have this info and or a buyers agent would not do any due diligence when receiving or making offers just seems like common sense.  Yes common sense however, this does not have much to do with what we are dealing with today.  Dont kill the messenger I was told to say this.  By the way dealing with  foreclosure attorneys is never a winning experience when issues arise that are time sensitive.  This is not the hard stuff and should be a simple fix.  Us survivors need to stick together.

Any insight/feedback is greatly appreciated.

MORTGAGE RATES

Please contact us for specific situations and specific rates.

*Risk Based Pricing will affect rate offered.

MORTGAGE RATE TRENDS

DAILY RATE LOCK ADVISORY

For an in depth explanation and daily update click on The Daily Rate Lock Advisory.