Mortgages & Lending

Underwriting Changes Could Squeeze Out Military Borrowers

by Chris Birk | May 14, 2010

Military families might have to pay a steep price for the mortgage lending sins of the recent past. The Senate this week tacked on a new amendment to the massive Financial Services bill it’s considering. Introduced by Sen. Jeff Merkley (D-Oregon), the amendment bans the flimsy “liar loans” that required no real documentation and eliminates [...]

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Mortgages & Lending

VA Loans: What Is “Reasonable and Customary”?

by Justin McHood | May 4, 2010

One of the great benefits for a Vet getting a VA loan is that the Vet is protected somewhat against being overcharged by a loan officer. The official language from the VA is that “The veteran can pay a maximum of reasonable and customary amounts for any or all of the ‘Itemized Fees and Charges’ [...]

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Mortgages & Lending

USDA Loans: More Funding On The Way?

by Justin McHood | April 27, 2010

Last week, the House Financial Services Committee voted unanimously to approve HR 5017 – the Rural Housing Preservation and Stabilization Act of 2010 which means that the next step is to get the full US House of Representatives to vote on it and insiders say that there is a strong likelihood of it passing there. [...]

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Mortgages & Lending

Mortgage Industry Reform: Cure Worse Than Disease

by Chris Birk | April 26, 2010

When it comes to potential new legislation governing the mortgage industry, the cure may prove worse than the disease. The Senate is preparing to consider the “Restoring American Financial Stability Act,” a wide-ranging bill that aims to resolve lingering problems involving “too big to fail” outfits and institutional risk. But, at least as currently written, [...]

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Mortgages & Lending

Some Light in the USDA Tunnel?

by Chris Birk | April 21, 2010

With its funding all but dried up, the USDA’s increasingly popular Rural Development loan program may be on the brink of resuscitation. Two House members recently introduced bills that would make the program self-funding. One of the proposed measures, from Pennsylvania Democrat Paul Kanjorski, would require lenders to pay an origination fee of up to [...]

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Mortgages & Lending

Fannie Mae Reduces Waiting Period for Pre Foreclosure Events

by Justin McHood | April 20, 2010

Recently Fannie Mae has come out with guidance that makes the waiting period for people who agree to a deed-in-lieu of foreclosure from four years to two years before they can get a mortgage from Fannie Mae. Fannie Mae is trying to encourage people to agree to deeds in lieu of foreclosure — not to [...]

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Mortgages & Lending

HEFI (Home Equity Fractional Interest): A Solution To The Housing Crisis?

by Justin McHood | March 30, 2010

The HEFI program is a newly launched program that is designed to solve the negative equity problem as well as act as a replacement for HELOC or 2nd mortgages.

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Mortgages & Lending

Option Arms – the Big Bang That Didn’t Come (Yet)

by Florence Foote | March 23, 2010

Josh Dorkin and I have both previously blogged about the looming threat posed by “option arm” loans, sometimes cutely called “pick-a-pay” loans. These are loans in which borrowers can decide how much to pay each month, with many predictably going for the minimum payment option. The Downside Possibilities What many borrowers may not have fully [...]

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Mortgages & Lending

FHA 90 Day Flip Rule: Flip Flop

by Justin McHood | March 23, 2010

The FHA 90 day flip rule is confusing. Be sure to ask multiple lenders about their 90 day flip rule policy rather than just listen to what one lender is doing.

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Mortgages & Lending

FHA Math: 5% = Disaster

by Chris Birk | March 19, 2010

FHA Chief David Stevens didn’t exactly inspire confidence last week when he rebuffed repeated calls to boost the housing program’s minimum down payment. In fact, he might have injected a new degree of concern into the already murky debate over how to reform the increasingly crucial home lending program. As has been covered extensively here [...]

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Mortgages & Lending

FHA Rules Changing Faster Then I Change My Underwear

by Peter Giardini | March 18, 2010

I hope I got your attention? If you have not been paying attention to the changes the leading mortgage lender in the country is up to, you may want to start paying attention now! A little background: For many years FHA has served a specific portion the home buying population that could not obtain mortgages [...]

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Mortgages & Lending

Federal Mortgage Intervention Ending By End Of Month!

by Charles Feldman | March 17, 2010

All good things must come to an end; especially when that good thing may or may not have been that good to begin with. I’m talking, of course, about the Federal Reserve’s affirmation this week that it plans to go ahead and stop buying mortgage-backed securities by the end of this month. These purchases are [...]

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Mortgages & Lending

USDA Loans: No More Money in 2010?

by Justin McHood | March 16, 2010

Whether you are looking to buy a home or refinance one using a USDA loan, my best advice is to hurry if you can. The USDA loan program may be running out of money soon and could leave many borrowers in the pasture instead of the farmhouse (sorry, couldn’t resist). The USDA loan program has [...]

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Mortgages & Lending

The Best Mortgage Program Ever?

by Justin McHood | March 9, 2010

Many people across the nation find themselves in a situation where they owe more than their home is worth and they are wondering what their best option is. Should they short sell their house? Should they try to get their loan modified? Should they let their home go into foreclosure? Should they just keep making [...]

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Mortgages & Lending