alex621's Blog: All Categories

Like I have mentioned before on this site, the new laws have made a 45 day settlement a requirement. Before 30 days was very doable, but with the HVCC and HERA, 45 days is the norm. With the HVCC, you order the appraisal thru an AMC, Appraisal Management Company, and they are taking anywhere from 5 to 15 business days, from the time they receive the order. I will not even get into all of the problems the AMC and HVCC are causing, besides there turnaround times. With HERA, the new truth-in-lending disclosure, the banks are disclosing their own TIL to the borrowers after they receive the file. Most banks are sending out their new TIL in 24-48 hrs after submission. They are give 3 days for the borrowers to review the TIL. Once the time has expired, they will…

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I know the title may throw some people off, but it’s true, they are back in the game. First, the rates are very attractive, they are in the low to mid 4’s with Zero points. They also are starting to offer them with the interest only option. I believe a lot of lenders filled their portfolios with fixed rate mortgages over the last year and they are looking to diversified it by offering super low ARM rates. I do not like when people make bold statements, because I believe that each borrower is in a unique situation. I don’t agree when people say ARM stink or IO is horrible. There are a lot of people that used those products to help them get into their dream home. Do not misinterpret my comments, because I do not condone brokers who get borrowers into ARMs or…

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I have heard a lot of questions about the 8k tax credit from the Economic Stimulus Package. I wanted to give some information regarding the tax credit. As always, feel free to contact me with any questions or scenarios. The 8k is not a down payment grant, it is truly a tax credit that will apply next spring when you file your 2009 federal taxes. There a few guidelines that need to be met; the purchase has to close by 11/30/2009. It is for first time home buyers. FTHB is someone who has NOT owned a home the previous 3 years. There are also income limits, as a single, they cannot exceed 75k/yr and as a married couple, they cannot exceed 150k/yr. The 75k and 150k are to receive the full 8k credit. You can go to 95k for a single person, and 170k for a married…

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A hot topic for brokers is the HERA laws. They are the laws requiring a re-disclosure of Truth-In-Lending documents if your APR increases by an 1/8 of a percent, or .125%. After seeing it in effect for a few weeks, I can say that doing your due diligence is a must! Each bank has applied their own specific twists, which could easily delay settlements. The law only applies to a 1/8 increase, it does not apply if the APR decreases by an 1/8. Most brokers are estimating 30 days of pre-paid interest and higher escrows on their good faith estimates, so if something some changes in the loan, it will not increase the APR by more than 1/8. This will look high to some borrowers and it should be the brokers responsibility to explain the details of the GFE and why… Read Full Post

A little while back Fannie Mae and Freddie Mac passed a rule that they would not buy loans for borrowers who owned more than 4 properties. That is still the case, but you may be able to find a bank that provides their financing under their portfolio program, which means they keep those loans. Since they are not sold to Fannie or Freddie, they can apply their own guidelines to them. The reason I bring this up, is because we have a bank that offers financing for investment properties. They will let you own up to 8 homes, and that includes your primary residence. It will be a full doc process, and some of things a borrower will need to provide are; 2 years worth of taxes, and plenty of assets. The taxes will show the Schedule of Real Estate and you will be…

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The FHA Streamline program is still a great option for home owners already in an FHA loan. You don’t have to be in an FHA loan for 1 yr, the guideline states that as long as FHA has bought your loan you are eligible for the streamline program. One change that has occurred is that all banks are now requesting a minimum FICO to be eligible for a streamline. That minimum score is 620. Most banks still do have “hits/bumps” for scores under 660. They are usually tiered from 620-660. FHA Jumbos are also eligible for streamlines. The one thing you need to check for is your monthly savings. The streamline program is pretty simple. The banks do not verify income, assets, or an appraisal. They do check for on-time payments and the 620 minimum. On loans under 200k,…

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Right now the is an option for 100% financing, and that is the USDA loan. It is a government loan, and it has a lot of great advantages. It is a 1-piece loan with NO MI. The max loan amount is 417k. There is no minimum credit score required, and the eligible properties are based on the zip code it is in. This loan used to be for rural properties, but now, more properties are eligible because it is based on the population of the zip code. I think the best advantage is that it does not fall under the HVCC rule. Which means, your broker can order the appraisal and that alone will this process 100 times smoother!! Also, there is no limit on the seller concession and the guaranteed fee, which is 2%, can be financed into the loan. The biggest obstacle is that… Read Full Post

 

HVCC update…   I would like to run into Mr. Cuomo, while I am driving!!!!!!!!!!! This is without a doubt, the worst thing that has happen to the mortgage industry. A lot of good appraisers are out of business, because these AMC’s only care about getting rich. AMC’s are the Appraisal Management Companies. They receive orders, give them to the appraiser who will do it for the cheapest price and collect the difference they charge the borrower. Their service is as good as their ethics…SUCKS!!!!!!!!!! They will call your borrower 5-15 days after receiving payment. They will return the appraisal, when ever they feel like it, since they are not help accountable to anyone!!!!!! The only people, who support this law, are the ones working for the AMC’s or… Read Full Post