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Monday Morning Mortgages>
Monday Morning Mortgages
June 29, 2009
Monday Morning Mortgages is a brief week-opening report on mortgages in our area. This is a tool to assist my realty partners on loan trends, rates, program changes, and problem solutions.
First Time Home Buyers’ Tax Credit
There are only 5 months left to close a home purchase for a first time home buyer to be eligible for the $8,000 tax credit. This is a strong marketing position for real estate agents to reach out to FTHBs.
Though HUD and lenders are allowing this tax credit to be used as security for a down payment loan, no current lenders are stepping forward to provide the financing for this down payment loan vehicle.
Nehemiah Loan Modification Assistance
The non-profit who used to offer down payment loans funded by sellers have rolled out a home retention assistance service. Nfinit Solutions charges no upfront fees to work on the home owners behalf in negotiating with lenders for modification. Nehemiah has a good reputation as a non-profit support to home owners.
To learn more about Nfinit Solutions and the program, visit
www.homeretentionadvantage.com
Low FICO FHA
Most lenders need a 620 FICO to accept an FHA loan, but there are a couple of lenders out there that will go down to 520. The requirements are stiff and so is the rate, but it is possible.
Radian Exits Mortgage Insurance in California
The news yesterday out of Radian could start off another round of system changes in the MI business – and no MI company wants to be the last one insuring loans in certain states. Radian is cutting their business in the fabled “Sand States”: Arizona, California, Florida, and Nevada.
Their announcement read, “Prudent geographic diversity, and the avoidance of geographic concentration, is a cornerstone of sound risk management, as it provides protection against regional changes in home price appreciation trends and economic cycles. Currently, Radian is receiving a disproportionate share of volume from the states of Arizona, California, Florida and Nevada. Therefore, to maintain a balanced portfolio and keep our geographic concentration in line with reasonable industry standards, Radian is restricting the business it insures for loans secured by properties in these states. Effective June 29, 2009, Radian will suspend the eligibility of loans submitted by your organization, which are secured by properties in the states of Arizona, California, Florida and Nevada for mortgage insurance until further notice.”
Rates
Rates have improved very nicely over the past week and the trend is continuing today. But with the volatility in current rates, and the pressure for rates to rise, we are executing locks this week while rates are looking good.
What’s an APR?
The APR is the yearly cost of a loan, including interest, insurance, and origination points expressed as a percentage. Under the new HERA rules, an increase in the APR of more than 0.125% from the initial TIL disclosure requires the TIL to be revised and reissued to the borrower. If changes are submitted after we have re-disclosed the TIL, and the APR increases by more than the 0.125% tolerance, lenders will re-disclose the TIL again and the wait period begins again.
Loan Closing Turn times for Escrow Timing
Conventional Mortgage 35 days
FHA 35 days
Today's Rates
WITH ONE LOAN POINT
Conforming (<= $417,000)
30 Year 5.125%
5/1 ARM IO 4.375%
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 5.875 %
FHA Conforming (<= $417,000)
5.375%
FHA Jumbo (to $520,950)
5. 5%
Super Jumbo (<= $3 million)
30 year fixed 6.5%
3/1 ARM 4.375%
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