On Wednesday, February 10th, 2010:
Fed Chairman says interest rates must rise.
He said that "at some point" in the future the Fed will "need to tighten financial conditions" by raising short-term interest rates to ease inflationary pressures.
Bernanke said another economic support program aimed at driving down mortgage rates and bolstering the housing market is on track to end in March. By then, the Fed will have finished buying $1.25 trillion in mortgage securities from Fannie Mae and Freddie Mac. It will also have finished buying $175 billion in debt from the mortgage giants.
Some economists said Bernanke left out what investors are really watching for: when the Fed will move to tighten credit.
FNMA 4.5% 30 year coupon immediately moves higher 60bps.
Thursday, February 11, 2010
Monday, February 8, 2010
FHA Mortgage Insurance Premiums to increase April 2010
Up Front Mortgage Insurance Premium (UFMIP) will be increased form 1.75% to 2.25%. The change will occur April 5th, 2010. This applies to purchase money and refinance transactions.
The FHA will also request legislative authority to further increase the maximum annual MIP they can charge. If they are granted the authority, they will shift some of the raise from the up-front MIP to the annual MIP.
The FHA will also request legislative authority to further increase the maximum annual MIP they can charge. If they are granted the authority, they will shift some of the raise from the up-front MIP to the annual MIP.
Monday, January 18, 2010
Flipping Rule is Waived!
HUD announced that beginning February 1, 2010, they are waiving the 3 month flipping rule.
As of this writing, it will stay in effect for one year.
Below are the details of the lift on the FHA rule.
This waiver is limited to those sales meeting the following general conditions:
1. All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
2. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
3. The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Details can be found at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
As of this writing, it will stay in effect for one year.
Below are the details of the lift on the FHA rule.
This waiver is limited to those sales meeting the following general conditions:
1. All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
2. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
3. The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Details can be found at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Monday, January 11, 2010
How can the Making Home Affordable Refinance Program help me refinance my conventional loan?
The Making Home Affordable Program can help you refinance into a more affordable mortgage if you’re paying your mortgage on time but you’re unable to refinance to a lower rate because you owe more on your mortgage than your home is currently worth.
Early in 2009, program guidance was issued for loans owned or securitized by Fannie Mae or Freddie Mac.
To find out if your loan is owned or securitized by Fannie Mae or Freddie Mac, go to
http://loanlookup.fanniemae.com/loanlookup/ and https://ww3.freddiemac.com/corporate/
Beware of any organization that attempts to charge a fee for housing counseling or assisting you in finding a lender that will provide a refinance under the Making Home Affordable Plan, especially if they ask for money in advance.
Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house.
Never submit your mortgage payments to anyone other than your mortgage company without their approval.
Early in 2009, program guidance was issued for loans owned or securitized by Fannie Mae or Freddie Mac.
To find out if your loan is owned or securitized by Fannie Mae or Freddie Mac, go to
http://loanlookup.fanniemae.com/loanlookup/ and https://ww3.freddiemac.com/corporate/
Beware of any organization that attempts to charge a fee for housing counseling or assisting you in finding a lender that will provide a refinance under the Making Home Affordable Plan, especially if they ask for money in advance.
Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house.
Never submit your mortgage payments to anyone other than your mortgage company without their approval.
Tuesday, December 29, 2009
Borrower Documentation for non-U.S. citizens
Residential Lending in U.S. to citizens of other countries:
For conventional financing, there are documentation requirements for your legal status. If you have a Social Security Number and a Green Card, you have satisfied that requirement (Permanent Resident). For non-permanent residents, you still need an SSN, and either a VISA evidencing legal entry to United States for temporary residence, or a passport and an Employment Authorization Document.
You must have documentation of legal entry into the U.S.
Special rules apply if your income is passive only (not self-employment or salaried).
The documentation guidelines above are universal. Different lenders will add more restrictions than are shown here.
For conventional financing, there are documentation requirements for your legal status. If you have a Social Security Number and a Green Card, you have satisfied that requirement (Permanent Resident). For non-permanent residents, you still need an SSN, and either a VISA evidencing legal entry to United States for temporary residence, or a passport and an Employment Authorization Document.
You must have documentation of legal entry into the U.S.
Special rules apply if your income is passive only (not self-employment or salaried).
The documentation guidelines above are universal. Different lenders will add more restrictions than are shown here.
FHA Mortgage Insurance Premiums
Up Front Mortgage Insurance Premium (UFMIP):
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
Monday, December 28, 2009
High Cost Area Loan Limits 2010
Conventional
High cost area loan limits for individual counties can range anywhere between $417,000 and $729,750, and are based on the area median home price as established by HUD. There are no changes to the Conventional loan limits for 2010, including those for counties considered high-cost areas.
A complete schedule of Conventional loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
FHA
FHA minimum (floor) loan limits are set at 65% of the national conforming loan limit and will remain at $271,050 for 1-unit properties in 2010. The maximum (ceiling) loan limit for high-cost areas is equal to the conforming limit and remains at $729,750 for 1-unit properties in 2010.FHA loan limits for individual counties can range anywhere between $271,050 and $729,750 and are based on the area median home price as established by HUD. The limits for most counties are unchanged for 2010 however, as a result of an increase in median home prices in certain areas; approximately 24 counties will have higher FHA county loan limits for 2010 vs. 2009. A complete schedule of FHA loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
(See previous post for California limits by County.)
High cost area loan limits for individual counties can range anywhere between $417,000 and $729,750, and are based on the area median home price as established by HUD. There are no changes to the Conventional loan limits for 2010, including those for counties considered high-cost areas.
A complete schedule of Conventional loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
FHA
FHA minimum (floor) loan limits are set at 65% of the national conforming loan limit and will remain at $271,050 for 1-unit properties in 2010. The maximum (ceiling) loan limit for high-cost areas is equal to the conforming limit and remains at $729,750 for 1-unit properties in 2010.FHA loan limits for individual counties can range anywhere between $271,050 and $729,750 and are based on the area median home price as established by HUD. The limits for most counties are unchanged for 2010 however, as a result of an increase in median home prices in certain areas; approximately 24 counties will have higher FHA county loan limits for 2010 vs. 2009. A complete schedule of FHA loan limits by county may be found on the HUD website at
https://entp.hud.gov/idapp/html/hicostlook.cfm.
(See previous post for California limits by County.)
Subscribe to:
Posts (Atom)