MANY changes to Gov’t insured loans effective 10/1/2011

By Todd Abelson NMLS #180858 on .

The following bears repeating so you’re not caught off guard – changes to all Government Insured loan programs take effect October 1, 2011:

VA LOANS – Up Front VA Funding Fee is reduced on PURCHASE transactions. Click here to see complete chart for details

FHA LOANS – Temporary increased loan limits are eliminated; Pima County is back down to $271,050

USDA LOANS – Up Front Loan Guarantee Fee is being reduced from 3.5% to 2.0% BUT they are adding monthly mortgage insurance of 0.30% annually.

Be aware and don’t get “caught short”.

Call Todd Abelson, Licensed Mortgage Professional, at (520) 331-LEND (5363) for all your mortgage needs!

USDA changing Loan Guarantee costs!

By Todd Abelson NMLS #180858 on .

Effective October 1, 2011 USDA is making two changes to their Loan Guarantee costs.

First the good – the Up-Front Loan Guarantee fee is being reduced from 3.5% to 2.0%

Now the bad – like FHA, they will start charging monthly mortgage insurance at an annual rate of 0.30% (FHA currently charges 1.15%)

Loans that do not have a  “Conditional Commitment” by Sept. 30, 2011 will fall under the new fee guidelines – NO EXCEPTIONS!

INFORM YOUR CLIENTS ! If they are buying a newly built home, make sure they request their Lender to have their Guarantee Fees locked in.

Any questions? As always, I’m here to help!

Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363)

The “Uniform Mortgage Data Program” for Appraisals

By Todd Abelson NMLS #180858 on .

Under the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the GSEs) have developed the Uniform Mortgage Data Program (UMDP) to enhance the accuracy and quality of loan data delivered to each GSE…

FOR CONVENTIONAL LOANS DELIVERED TO THE GSEs ON/AFTER MARCH 19, 2012 (and with loan application dates on/after December 1, 2011), Fannie Mae and Freddie Mac WILL REQUIRE appraisals to be completed using the new field-specific standardization requirements…

Now my take – while this implementation SHOULD help “level the playing” field between geographies, Appraiser’s unique styles, housing markets, etc. and make it easier for INVESTORS (Wall Street or otherwise) to know what they’re getting it will definately have some down sides:

1. Appraisals are 80% science, 20% Art. The “art” is very often what make the report make sense

2. Fitting nicely into a Bell Curve makes statisticians happy, but what if you’re at either end of the curve (high or low)? You’re in trouble.

3. Trying to be all things to all people usually makes more problems than it solves.

So where does that leave us? First, the current style of appraisal report is being revamped so you won’t be able to tell the players without a scorecard. Get a copy of the “Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification (UAD)” document for study and reference. Next, inform your clients that it will be better if they can submit a loan application BEFORE December 1st if possible. Finally, prepare for some extra time to close since every lender will be gearing up for this (and they’ve already started).

More “fun and games” in the Mortgage Industry — but fear not because I’m on the case!

Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363).

Reduced FHA loan limits in Arizona as of October 1, 2011?

By Todd Abelson NMLS #180858 on .

Unless subsequent regulation is passed to further extend the temporary loan limits, the temporary high balance loan limits defined by the American Recovery and Reinvestment Act of 2009 (ARRA) will expire on September 30, 2011.  This is generally being viewed as going by the NOTE DATE – loans with a NOTE DATE on or after 10/1/11 must use the lower limits.

Each investor may make different rules that may require an earlier funding or lock date or a final delivery date.  Please be advised that any applications for a loan amount between $271,050 and $316,250 (in Pima County) will need to lock, close and fund BEFORE 9/30/11 to be safe.  This is not based on CASE NUMBER ASSIGNMENT DATE! 

ALL OF ARIZONA WILL BE AT THE FLOOR LIMIT OF $271,050 except Cococino County which is $333,500

To further complicate matters the current floor of $271,050 may go down at the end of the year.  BTW – The $271,050 is based on 65% of the Conforming loan limit from before 2009.  This year the conforming loan amount is subject to change and just like every year before 2008 will go up or down based the median home price in the US.  If I was to bet on this I would have to say they will likely go down.  The conforming limit of $417,000 may be extended further but no one knows.

Call Todd Abelson at Sunstreet Mortgage for all your financing needs! (520) 331-LEND