Mortgage Underwriting News for August 2010

FHA Plans To Revamp HECM For New Reverse Mortgage Product
Friday, August 27, 2010 - 5:35pm
The Federal Housing Administration (FHA) will modify its Home Equity Conversion Mortgage (HECM) product to provide a more affordable reverse mortgage for seniors looking to tap the equity of their homes, according to the National Reverse Mortgage Lenders Association (NRMLA). An HECM is a reverse mortgage loan insured by the federal government, used by seniors to cover gaps in living expenses. The...
FHA Weekly Update
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Handling HVCC Failures
Friday, August 27, 2010 - 4:29pm
Bonnie Wilt-Hild
I am sure that most of you realize that I am not a big fan of anything. I determine to be inefficient, cumbersome, pointless or just generally a waste of time and based on previous blogs I know that everyone understands that the entire concept of HVCC among various other things, is at the very least, all of these things. I have previously stated what I considered a few of the pitfalls of the...
Bonnie Wilt-Hild, Mortgage Underwriting
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The Little Things that Make a BIG Difference
Friday, August 27, 2010 - 2:22pm
Stacey Sprain
Rushing when assembling our loan files in addition to rushing as we submit them to underwriting is quite common these days with the major decline in interest rates but it’s important we don’t overlook the little details of importance that can lead to stupid mistakes, unnecessary conditions and cost us even more valuable time in the overall loan process. Following is a list of tips based on the...
Loan Processing, Stacey Sprain
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Is It Time?
Friday, August 27, 2010 - 2:05pm
Gail Foster
The Housing Sales numbers for July are out and the stock market lost 134 points today because they were miserable. The lowest monthly home sales since 1999. We aren’t moving forward, we are moving backwards. It is time for some creative thinking so that we can begin to put the housing market on firm footing. We need to preserve property values and entice strong borrowers to invest in their...
Gail Foster, Loan Processing
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Red-Ink Fears Prompt Mortgage Backer to Raise Fees
Friday, August 27, 2010 - 2:03pm
The country's most popular federal mortgage-insurance program is set to raise fees to borrowers in a bid to avoid burning through its dwindling reserves as home prices come under renewed pressure. The move reflects new threats facing the Federal Housing Administration, a New Deal-era agency that has taken a central role in the housing market since mortgage markets seized up three years ago. To...
FHA Weekly Update
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FHA Condominium Guidelines
Friday, August 27, 2010 - 2:02pm
On November 6, 2009, the Federal Housing Administration (FHA) issued two documents related to FHA mortgage insurance requirements for condominium associations. These two documents: HUD Mortgagee Letter 2009-46A and Mortgagee Letter 2009-46B provide an overview of the FHA proposed transitional criteria and successor criteria for condominium association requirements for FHA mortgage insurance...
FHA Weekly Update
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HUD Shares Plans for New Reverse Mortgage Option
Friday, August 27, 2010 - 2:00pm
The Federal Housing Administration (FHA) announced today that it intends to make modifications to its Home Equity Conversion Mortgage (HECM) product, a reverse mortgage loan insured by the federal government, to make it more attractive and cost effective for older home owners seeking to tap their home equity to cover living expenses and health care costs, according to the National Reverse...
FHA Weekly Update
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Originating the Perfect Loan
Friday, August 20, 2010 - 5:05pm
Bonnie Wilt-Hild
If there is one thing most production staff will unanimously agree on, it would be that loan originators never collect sufficient documentation when originating a loan. Forget the compliance errors, never signing and dating the initial 1003 or even having the borrower do it, it just seems that loan officers are so busy selling the deal that they sometimes neglect to collect or even request the...
Bonnie Wilt-Hild, FHA-VA Loans
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Let’s Do More
Friday, August 20, 2010 - 1:49pm
Gail Foster
I’ve told a horror story or two about some of my customer’s experiences with lenders. The reason we have horror stories is because most people have no idea how to choose a lender. Most use origination points and interest rate as criteria for making their choice but this doesn’t reflect a lender’s ability to close a loan smoothly, with finesse and good customer service. It’s just numbers on a...
Gail Foster, Loan Processing
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Tips to Originators and Processors for the Refinance Boom
Friday, August 20, 2010 - 1:48pm
Stacey Sprain
Right now we all have much to be grateful for. Record low interest rates have brought us record numbers of refinances which are boosting business for all of us in the industry. But while business is plentiful, so also can be the frustrations that come along with it. When times are as busy as they are right now, it’s important we all think ahead and do our part to make the processes as smooth as...
Loan Processing, Stacey Sprain
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Fed To Protect Consumers From Abusive Mortgages
Friday, August 20, 2010 - 1:37pm
FHA News Editor
The Federal Reserve Board issued new rules Monday to protect consumers from abusive mortgage lending practices. The new regulations, which take effect April 1, will ban lenders from paying mortgage originators more for putting borrowers in more expensive loans. Consumer advocates have long decried the incentive, known as "yield spread premium," saying it steers homebuyers into loans with higher...
FHA Weekly Update, FHA News Editor
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FHA Gets Tougher on Mortgages
Friday, August 20, 2010 - 1:35pm
FHA News Editor
Consumers looking for home loans backed by the Federal Housing Administration will face tougher hurdles and higher costs under new legislation and new rules that could take effect as soon as this month. Higher monthly fees, larger down payments and better credit scores are among the new initiatives intended to ensure that the FHA stays solvent. Its reserves, which are used to cover bad loans,...
FHA Weekly Update, FHA News Editor
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New York's No. 1 in home closing costs
Friday, August 20, 2010 - 1:33pm
FHA News Editor
If you're getting a mortgage in New York, bring a fat checkbook to the closing table: Closing costs there are the highest in the nation, according to a survey by mortgage website Bankrate.com. For a $200,000 mortgage, the fees average more than $5,600 now in New York, according to the survey. The state roared past Texas, last year's leader, where costs average about $4,700. In third place is Utah...
FHA Weekly Update, FHA News Editor
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The Pitfalls of HVCC
Friday, August 13, 2010 - 3:49pm
Bonnie Wilt-Hild
Over the past year or so we have all implemented policies concerning the Home Valuation Code of Conduct which the agencies implemented in April, 2009 with the Federal Housing Administration following suit shortly after. Per the rule, lenders are now required to utilize third party management companies for the purposes of ordering appraisals on all mortgage transactions in order to eliminate the...
Bonnie Wilt-Hild, Mortgage Underwriting
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More Education is Needed
Friday, August 13, 2010 - 1:46pm
Gail Foster
Economic times are difficult. Home sales are down. There are many sellers and few buyers. In fact, when you discuss the opportunities for home ownership, most just shake their heads and say they doubt they’ll qualify. We live in the land of opportunity and the American Dream is becoming a nightmare. There is not just one answer that will bring recovery, we must be diligent on many fronts if...
Gail Foster, Loan Processing
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