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December 9, 2011

HARP Loan Guidelines

Category: Government Loans,Home Loan News,Loan Relief Articles – admin – 3:41 pm

Home Affordable Refinance Guidelines:  This loan program is designed for underwater borrowers who have demonstrated an acceptable pay history, but due to overall real estate market decline cannot refinance their homes per current industry guidelines. The new Home Affordable Refinance Program can be used for the following:

• Pay off the current unpaid principal balance on existing first mortgage (current 2nd-mortgage must be re-subordinated).

• Refinance and pay off closing cost, prepaid items and points.

• Available products: DURP15 & DURP30.

Borrower Eligibility:

• A borrower on existing mortgage may be removed; however, documentation to reflect the remaining borrower has been making the payments from their own funds in the prior 12 months period will be required. Borrower to be removed must also relinquish ownership. If borrower is being removed due to death, 12 month pay history is not required.

• A borrower may be added to the new loan as long as the existing borrower is retained. The addition of a non-occupying borrower is not allowed.

Loan to Value/Combined Loan to Value

• NEW! Fannie Mae has recently removed all LTV/CLTV restrictions.

• Investment loans- maximum 80% LTV/CLTV.

Property/Occupancy Restrictions:

• Primary Residence , second homes or investment properties

• 1-4 unit dwellings, Condos and PUD’s.

• No Manufactured Homes.

Appraisal Requirements:

• DU to determine appraisal requirement. Property Inspection Waiver and 2075 available.

• Must comply with Appraisal Independence. (Discuss affordable home refinance guidelines with loan officer)

• If property is located in a natural disaster area, FCM will require a full 1004 appraisal.

Home Mortgage Insurance:

• ORIGINAL LTV’s <= 80%: mortgage insurance will be waived by DU

• NEW! FCM will now allow any existing Fannie Mae loan with an LTV>=80%: which includes mortgage insurance to have insurance transferred by FCM. Insurance must be written from one of the following companies to be eligible for transfer: o Radian


November 6, 2010

Fannie Mae Seeks More Mortgage Relief

Category: Loan Relief Articles – admin – 7:02 am

Fannie Mae continues to run into financial hardships as the home loan market remains unsteady. The Government-controlled mortgage finance giant Fannie Mae is asking for $2.5 billion in additional federal aid after posting a narrower third-quarter loss. It’s no secret that the U.S. taxpayers are concerned that the mortgage relief is getting out of control.  Whether its defaulting home mortgage refinancing or failed loan modifications, the taxpayers in this country are getting a bill significantly larger than they asked for.

Fannie Mae also said Friday it is likely that the recent foreclosure chaos will have a negative impact on the delinquency rates of its home loans, its expenses and foreclosure timelines. Fannie Mae said Friday it lost $3.46 billion, or 61 cents a share, in the July-September quarter. That takes into account $2.1 billion in dividend payments to the Treasury Department, and compares with a loss of $19.8 billion, or $3.47 a share, a year earlier.

Fox Business on Fannie Mae, Freddie Mac, and Countrywide

The government rescued District-based Fannie Mae and McLean-based sibling Freddie Mac about two years ago, estimating it will cost taxpayers up to $259 billion. That’s nearly twice the $133.4 billion Fannie and Freddie are in line to receive and would make it the most expensive bailout of the financial crisis.


October 5, 2010

Underwater Home Refinancing

Category: Home Refinance Articles,Loan Relief Articles – admin – 9:02 am

Millions of homeowners find themselves with underwater home loans that have prevented them from refinancing or even selling their property. Until recently, underwater home refinancing was impossible, but several new government mortgage relief initiatives enable distressed homeowners to redo their mortgage terms.  If you’re like nearly 20 million American homeowners, you owe more on your home loan than your house is worth.


  Why not simply walk away from this home that you are losing money on every month? That’s what many people are doing. It’s called a “strategic default” when a homeowner who could keep paying the mortgage simply decides it’s not worth it.

Underwater Mortgage Refinancing is Available!

A recent report revealed 31% of U.S. foreclosures in March were strategic, compared with 22% in March 2009. And that number is likely to grow as home prices remain stagnant, jobs remain scarce, and people become angrier at their financial situation.  However, HUD announced a new relief program to help homeowners struggling with underwater mortgages with the FHA short refinance option.  This government loan actually writes down the principal mortgage balance down to the fair market value.

It’s one thing to face foreclosure when you simply can’t make the monthly payments, no matter what the value of your home. When the court orders a foreclosure, you have little choice.  But a “strategic default” is something quite different. The idea of simply walking away from a property that is underwater and making a “fresh start” — even though you could continue to make the mortgage payments — is an idea that seems to be catching on.

Strategic Default Dangers

Here’s some advice. Think twice before you walk away from your mortgage. This decision may catch up to you in ways you never considered.  Of course, walking away from a home loan and letting your home go into foreclosure will significantly damage your credit. That doesn’t seem to be much of a deterrent even to those who could afford to keep paying. The prevailing sentiment is that “everyone’s credit is in the tank” so it’s not such a scary proposition.


July 21, 2010

Mortgage Broker Reform

The U.S. government has been working frantically to pass mortgage reform that would require loan modification licensing.  The U.S. Department of Housing and Urban Development, which oversees compliance with the SAFE Act, has proposed that employees handling loan modifications for struggling homeowners also meet the licensing requirements, a policy opposed by banks.  John Courson, CEO of the Mortgage Bankers Association said that mandating licenses for mortgage loan-modification specialists could slow hiring and hinder efforts to cut home foreclosures.” Courson continued, “We say this is not originating a new home loan, because the loan terms are being reduced on their home mortgage to increase the affordability and reduce the likelihood of a foreclosure.”

The housing department hasn’t set a deadline for a decision, said Lemar Wooley, a spokesman.  According to Anthony Hsieh, CEO of Loan Depot, a home loan lender based in Irvine, California, the process costs $3,000 to $6,000 to train and pay the fees for each new employee to comply with the mortgage licensing system. “The mortgage reform law is supposed to make sure we kick the bad ones out,” said Hsieh. “It could be the opposite, keeping the good loan officers out.”  Read the original article online > Loan Modification Licensing and Mortgage Reform