Mortgage Lenders Nationwide

Lender News, VA, FHA, Jumbo & Conforming Mortgage Rates, Lending Tips & Intelligent Financing Dialog between Home Loan Professionals & Consumers

December 29, 2009

Revised Good Faith Estimate for Mortgage Brokers, Lenders and Loan Officers

Category: FHA Mortgage,First Time Home Buyer Loans,Mortgage Lender Tips – admin – 6:17 am

Mortgage professionals will have to get used to a new “Good Faith Estimate” to be disclosed in 2010. The U.S. Department of Housing and Urban Development (HUD) has updated and re-released “Shopping for Your FHA loan: HUD’s Settlement Cost Booklet.”  A large share of content in the 49-page publication, which helps consumers comparison-shop mortgages, addresses the standardized Good Faith Estimate (GFE) and HUD-1 settlement statement forms that lenders must start using on Jan. 1, 2010.

HUD estimates that consumers could save almost $700 in costs and fees per mortgage loan on average as a result of the new requirement, which is one of several changes to the Real Estate Settlement Procedures Act (RESPA).  In addition to the updated literature, the agency has set up a RESPA “FAQ” section and other information on a dedicated RESPA page so that consumers, settlement service providers and lenders can gain a better understanding of the new rules.

Here is the location of the .pdf of the booklet that you can save or print out for your reference. http://portal.hud.gov/portal/page/portal/HUD/documents/Settlement Booklet December 15 REVISED.pdf

Mortgage lenders are now required to provide loan applicants with the following:

- Good Faith Estimate—provided at the time of application to borrowers to outline the home loan terms and Total settlement costs.

- HUD-1/HUD-1A Settlement Statements—to inform borrowers of final costs at settlement.

- Servicing Disclosure Statement—to inform the borrower whether another financial institution may be servicing their loan.

- Settlement Cost Booklet—provided within three days of application to inform the borrower of fees involved in home purchase settlement.

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December 14, 2009

FHA Guidelines Being Revised for Refinance and Purchase

Category: FHA Mortgage,Mortgage Lender Tips,Mortgage News – admin – 6:06 pm

HUD announced they were making changes to the guidelines for with FHA mortgage products.  The Federal Housing Administration still has money, but its loan reserves are depleting to dangerously low levels.  FHA’s capital reserves are supposed to be 2% of outstanding loans. According to the actuarial review for fiscal year 2009, the reserves are a mere 0.5%. By the time you read this, FHA loan reserves might have disappeared entirely, thanks to the increasing number of FHA home foreclosures.  All FHA borrowers pay a mortgage insurance premium. These premiums go into the FHA’s capital reserves fund and are used to pay for home loans that are foreclosed upon. As FHA refinance loans and purchase mortgages have become much more popular, and the unemployment numbers have risen, more of these loans have gone bad, requiring more payments from the capital reserves. 

Unlike the Federal Deposit Insurance Corporation , which recently proposed that banks pay three years of insurance premiums at once in order to replenish the FDIC’s reserves, FHA can’t require current borrowers to pay more. But it can change the rules going forward that will make it more difficult to qualify for an FHA loan.  According to a senior official at the Department of Housing and Urban Development , conversations are ongoing to determine what will make the most sense.  “Nothing will be taken off table,” the official said. “Everything needs to be assessed through the lens of the FHA core mission as well as the broad economic policies of the Administration with regard to stabilizing housing.”

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December 8, 2009

Feds Seize AmTrust Wholesale Lending

Category: Financial News,Mortgage News – admin – 1:50 pm

AmTrust Bank of Cleveland, which until recently was the nation’s third largest residential mortgage wholesaler, was seized by the government late Friday with a majority of its assets sold to New York Community Bank, Westbury, N.Y., a top ranked player in multifamily lending.  According to Home Loan Wholesale, the government actually took bids on AmTrust’s operations two weeks ago, saying interested investors included BB&T, EverBank, Fifth Third Bancorp, Key Bank and others. Its failure is expected to cost the government roughly $2 billion. The lender’s demise is yet another blow for loan brokers in search of wholesalers willing to table fund their customers. At press time, it was unclear whether NYCB would keep AmTrust’s wholesale division intact. A thrift, AmTrust had $12 billion in assets and until a few years ago was called Ohio Savings and Loan. The thrift was a national correspondent originator, selling its conventional mortgage loans to Fannie Mae and Freddie Mac. NYCB paid no premium to assume all of AmTrust’s $8 billion in deposits, and also agreed to take over $9 billion of the failed thrift’s assets. New York Community and the FDIC will share losses on $6 billion of those assets. The nation’s largest privately owned thrift, AmTrust had been stung by a string of losing quarters and mounting losses from construction and development home loans. Last Monday its holding company, AmTrust Financial Corp., filed for Chapter 11 bankruptcy protection.

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October 13, 2009

Mortgage Refinancing Applications Rise

Category: Mortgage News,Mortgage Rate Report – admin – 10:27 pm

The Mortgage Bankers Association said Wednesday Mortgage refinancing applications rose last week as home mortgage rates declined.  Refinance loan applications increased 18.2 % last week, the MBA said, following the third straight week where rates on 30-year home loans stayed below 5%. This brings mortgage refinance applications to their highest level since May.   “Such low refinance rates are spurring mortgage loan demand,” said Frank Northaft, Freddie Mac vice president and chief economist. On Thursday, Freddie Mac said the average rate on 30-year home loans stood at 4.87 %, down 4.94 % from last week. This is the lowest rate since the week of May 21, when they averaged 4.82 %. The record low on mortgage rates is 4.78 %, set last spring.   Average rates on 30-year fixed rate mortgages stood at 5.94 % this time last year.   Homeowners who are considering home refinancing their mortgage may want act soon.  Mortgage rates could inch back up as the home purchases diminish.

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October 1, 2009

Lower Mortgage Rates for VA and FHA Streamline

Category: FHA Mortgage,Mortgage News – admin – 3:41 pm

Applications for home mortgages dropped to a seasonally adjusted 2.8% for the week ending September 25, compared with the week before. The Mortgage Bankers Association announced yesterday that VA mortgage rates were better, as were FHA mortgage rates.  Many borrowers are excited for the low rate refinancing with FHA customers rushing to qualify for FHA streamline refinance loans that are seeing interest rates below 5% for the first time in a while. The average fifteen mortgage rates declined to 4.46% last week which is down significantly from last year when rates were at 5.78%.

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September 11, 2009

Mortgage Rate Update for Lenders

Category: Mortgage News,Mortgage Rate Report – admin – 3:01 pm

The average mortgage rate on a typical 30-year fixed-rate mortgage dropped to 5.07 % in the latest week, McLean, Virginia based Freddie Mac told mortgage lenders last week. That’s down from as high as 5.59% in June, and up from the record low of 4.78% in April. While mortgage refinance applications rose to the highest since late May in the latest week, they remained 64% below the high this year set in January, according to a Mortgage Bankers Association index. Read the complete article at Mortgage Related News > Bonds for Mortgage Loans Yields Decline.

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September 9, 2009

FHA Streamline

Category: FHA Mortgage,Published Articles – admin – 8:16 am

According to Bryan Dornan, “The best time for a streamline loan for refinancing your FHA mortgage is when you are saving a significant amount of money monthly without adding on additional years with the new mortgage terms.  Read the original article “When FHA Streamline Makes Sense for Mortgage Refinancing.”

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August 28, 2009

3 FHA Lenders Suspended

Category: FHA Mortgage,Financial News,Mortgage News – admin – 8:45 am

Three mortgage lenders approved to originate loans insured by the Federal Housing Administration were suspended by the U.S. Department of Housing and Urban Development over “serious” violations.  HUD recently announced their Mortgagee Review Board had suspended Golden First Mortgage Corp. The Great Neck, N.Y., company allegedly neglected to notify HUD of an Office of Thrift Supervision investigation into the activities of its president or his involvement in an OTS civil money penalty.  Suspended FHA lenders are not allowed to sell new FHA-insured loans while HUD investigates their FHA lending practices, the statement said.

FHA mortgage rates remain low and the Federal Reserve has ensured FHA lenders and banks offering HUD loans his commitment to making affordable home financing available to Americans.  When shopping for a FHA lender, Lenders Nationwide recommends that consumers consider FHA mortgage companies that have a clean HUD record.

 

 

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August 14, 2009

Mortgage Brokers Network for Net Branch Recruitment

Category: Mortgage Lender Discussion,Mortgage Lender Tips,Mortgage News,Net Branch News,Wholesale Broker Discussion – admin – 3:27 pm

Mortgage Brokers Network understands net branching, recruitment and lead generation.  As an industry leader in loan officer recruiting for the banks and net branches, Mortgage Brokers Network provides the largest network of loan officers and active net branches in the country.  MBN helps loan professionals find the lender or bank that best suits their needs and financial goals.

*    Mortgage Training and Loan Officer Education
*    Continuing Education for Loan Officers
*    Mortgage Lead Generation
*    Recruiting for Net Branches
*    Virtual Branch Locators
*    Loan Modification Companies
*    FHA, VA, Reverse, Conventional Lenders

Visit Mortgage Brokers Network online at http://mortgagebrokersnetwork.com  or call them at 815 -230-9867 to get more information.  Read the original MLV Article online > Mortgage Brokers Network for Leads and Recruiting.

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August 12, 2009

Home Loan Applications Decline

Category: Financial News,Mortgage News,Mortgage Rate Report – admin – 9:58 am

A recent article from the Mortgage Bankers Association reported that home loan applications declined this week in response to the increase of mortgage rates last week.  The volume of home loan applications declined 3.5% compared with the previous week.  Loan applications filed were still up an unadjusted 16.1% for the week ended Aug. 7 from the same week in 2008, according to the MBA’s weekly survey.  FHA mortgage applications filed last week to purchase homes rose 1.1% from the week before. Volumes for conforming, VA and FHA home loan applications were all lower than expected.

Mortgage refinancing applications to refinance existing mortgages decreased 7.2%, on a week-to-week basis, reversing the 7.2% increase during the week ended July 31, according to the Washington-based MBA. The four-week moving average for all mortgages was down 0.7%. Home refinancing applications made up 52.3% of all applications last week, down from 54.2% the previous week. ARM mortgage loans accounted for 5.8%, up from 5.4%.

According to the MBA survey, thirty-year fixed-rate mortgage loans carried an average interest rate last week of 5.38%, up from 5.17% the week before. As for 15-year fixed-rate mortgages, the average rose to 4.71% last week, up from 4.60% the week before. And 1-year ARMs averaged 6.71% last week, up from 6.67% the week before. Read the complete article online> Mortgage Loan Application Activity Slowing

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August 10, 2009

Taylor Bean and Whitaker Closing Hurts Mortgage Brokers

Category: FHA Mortgage,Financial News,Mortgage Lender Discussion,Mortgage Lending Stories,Mortgage News – admin – 8:27 am


The impact on Taylor Bean and Whitaker shutting down wholesale will be significant for mortgage brokers across the country.  Many mortgage companies used TBW for all their FHA home loans and this will hurt them.  The loss of Taylor, Bean and Whitaker as a wholesale lender is a major blow to U.S. mortgage brokers who say it means home loan applicants who were in process at the wholesaler will need to purchase new appraisals and potentially sit through new waiting periods.

Taylor Bean disclosed Tuesday that it lost its FHA approval and that its Ginnie Mae servicing portfolio was seized. Then it surprised its customers Wednesday with a notice indicating it stopped originating, closing or funding any home loans. In a news release today, the National Association of Mortgage Brokers called the Ocala, Fla.-based lender “a major channel for wholesale mortgage funding.” 

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July 28, 2009

Foreclosures May be Better than Loan Modifications for Mortgage Lenders

Category: Financial News,Mortgage Lender Tips,Mortgage News,Published Articles,Uncategorized – admin – 7:06 am

Recent government initiatives to stem the nation’s looming home foreclosures are hampered because banks and other mortgage lenders in many cases have more financial incentive to let homeowners lose their property in  aforeclosure than to work out a loan modification agreement, some economists have concluded.   Policymakers often say it’s a good deal for home loan lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.   The problem is that loan modifications is profitable to banks for only one set of distressed borrowers, while home loan lenders are actually dealing with three very different types. Loan modification plans make economic sense for a bank or other lender only if the borrower can’t sustain payments without it yet will be able to keep up with new, more modest terms. A second set are those who are likely to fall behind on their home loan payments again even after receiving a loan workout and are likely to lose their homes one way or another. Mortgage lenders don’t want to help these borrowers because waiting to foreclose can be costly. 

Finally, there are those delinquent borrowers who can somehow, even at great sacrifice, catch up without a modification. Lenders have little financial incentive to help them.   These financial calculations on the part of lenders pose a difficult challenge for President Obama’s ambitious efforts to address the mortgage crisis, which remains at the heart of the country’s economic troubles and continues to upend millions of lives. Senior officials at the Treasury Department and the Department of Housing and Urban Development have summoned industry executives to a meeting Tuesday to discuss how to step up the pace of loan relief. FHA has already added a new mortgage loan modification alternative to the traditional FHA refinance loans, for borrowers whose mortgages are greater than the value of their property.  The administration is seeking to influence lenders’ calculus in part by offering them billions of dollars in incentives to restructure mortgages and home loans. Still, foreclosed homes continue to flood the market, forcing down home prices. That contributed to the unexpectedly large jump in new-home sales in June, reported yesterday by the Commerce Department.   “There has been this policy push to use modifications as the tool of choice,” said Michael Fratantoni, vice president of single-family-home research at the Mortgage Bankers Association. But “there is going to be this narrow slice of borrowers for which modifications is the right answer.” The size of that slice is tough to discern, he said. “The industry and policymakers have been grappling with that.”   The effort to understand the dynamics of the mortgage business comes as the administration is begging lending companies to extend additional mortgage refinancing to help borrowers under its Making Home Affordable plan, which gives lenders subsidies to lower the payments for distressed borrowers. According to RealtyTrac about 200,000 homeowners have received modified loans since the program launched in March, while more than 1.5 million borrowers were subject during the first half of the year to some form of foreclosure filings, from default notices to completed foreclosure sales.

No doubt part of the explanation is that lenders are overwhelmed by the volume of borrowers seeking to modify their mortgages. Rising unemployment and falling home prices have added to the problem.   But a study released last month by the Federal Reserve Bank of Boston was downbeat on the prospects for widespread modifications. The analysis, which looked at the performance of loans in 2007 and 2008, found that lenders lowered the monthly payments of only 3 % of delinquent borrowers, those who had missed at least two payments. Lenders tried to avoid modifying the loans of borrowers who could “self-cure,” or catch up on their payments without help, and those who would fall behind again even after receiving help, the study found.   “If the presence of self-cure risk and re-default risk do make renegotiation less appealing to investors, the number of easily ‘preventable’ foreclosures may be far less than many commentators believe,” the report said.

Nearly a third of the borrowers who miss 2 payments are able to self-cure without help from their home loan lender, according to the Boston Fed study. Separately, Moody’s Economy.com, a research firm, estimated that about a fifth of those who miss three payments will self-cure.

When Adrian Jones fell behind on the mortgage payments for her Dallas home earlier this year, her lender asked her to cut other expenses. Jones said she eliminated movies and coffee breaks. She turned to family members for loans. When that failed to raise enough, she sold her second car.   “It hurt, but it also made sense. The debt was my responsibility,” Jones said.   But six months later, after catching up on the mortgage, Jones is again feeling pinched after her hours as an office assistant at an architecture firm were cut. This time, she’s not sure she can fix the problem herself.   “I am going to try, obviously,” she said. “But it is getting harder and harder.”   Like Jones, those who are most determined to meet their obligations are often unlikely candidates for loan modifications.   “These are the people who will get a second job, borrow from their family to keep up,”

Mortgage lenders also worry that borrowers may re-default even after receiving a home loan modification. This only delays foreclosure, which can be costly to the lender because housing prices are falling throughout the country and the home’s condition may deteriorate if the owner isn’t maintaining it. In some cases, lenders lose twice as much foreclosing on a home as they did two years ago, said Laurie Goodman, senior managing director at Amherst Securities.  

American Home Mortgage Services, based in Texas, was willing to modify Edward Partain’s mortgage on his Tennessee home last April after business at his beauty salon slowed and a divorce stretched his budget. But after months of negotiating with his lender, Partain said he was surprised to learn that it would only lower his payments by $90 a month, instead of the $250 decrease he expected.   “At $250, I would have had a chance, but after they added in late fees and payments, I couldn’t do it,” he said.   Partain soon fell behind on his payments again and went back to American Home Mortgage Services seeking a more affordable payment. Partain said he was told that he was ineligible for another modification because it had been less than a year since his last. A foreclosure sale was scheduled for late July. After American Home Mortgage Services was contacted by The Washington Post about the case, the company said Partain would be considered for the federal foreclosure-prevention program and it delayed the sale by three months. Partain is relieved but anxious about the details. “You want to wait and see what figures they come up with,” he said.   Administration officials have not said publicly how many borrowers they expect to re-default under Obama’s program.   But the experience of a separate program run by the Federal Deposit Insurance Corp. could be instructive. After taking over the failed bank IndyMac last year, the FDIC began modifying troubled mortgages held or serviced by the company. Richard Brown, the FDIC’s chief economist, said the agency expects up to 40 % of those borrowers to re-default.   Even at that rate, he said, the modification program is more profitable than doing nothing. “The idea that 30 to 40 % re-default is a failure to a program is false,” Brown said.

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