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Monday Morning Mortgages>
Monday Morning Mortgages
July 20, 2009
Monday Morning Mortgages ~ Monday 7/20/2009
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.
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Rates Up
Rates are up slightly as bond yields rise and we see continued mixed news on the economic front. The 10-year Treasury is up to 3.68%; 30 year fixed up to 5.25%.
Reg Z Changes (Loan Disclosures)
New rules beginning next Monday, “Borrowers may NOT pay any fees – other than a reasonable credit report fee – to any party until 3 business days after the lender/broker has mailed the initial disclosures. This rule applies once a property is identified with an accepted offer.
Lender’s Assessment of Past Bankruptcy or Foreclosure
The latest Fannie Mae guidelines clarify requirements for loan approval following bankruptcy or foreclosure.
• Bankruptcy - 4 years will be required after bankruptcy discharge date for Approve/Eligible DU finding.
• Foreclosures - 5 years will be required after foreclosure for Approve/Eligible DU finding.
Property Flipping RED FLAGS
Lenders are looking to protect themselves from financing property “flips”. A flip is a property that is purchased by a speculator, and sold within 3-6 months at a price at least 20% greater than the previous sale price, absent of improvements supported by appraisal note. The following items will red flag a lender of a potential property flip.
• Property seller is not owner on record.
• Seller has recently acquired title and the mortgage lien date is new.
• Cash was paid for the home in a recent transaction (no liens on property).
• The preliminary title report submitted to new lender has no title company name or logo.
• Any reference in contract to “double escrow”.
• For Sale by Owner.
• Affiliated parties to transaction.
• Appraisal date precedes contract date.
Follow up on Nehemiah Nfinit Solutions
I mentioned two weeks ago that the non-profit organization Nehemiah, know for its former down payment assistance program, had ventured into loan modifications. Daphne Peterson, a local short sale listing specialist added some detail for us. Nehemiah DOES charge for guiding the modification process ($1,900), and will pay a referral fee ($500) to a licensed agent for gathering initial financial info on a client. If Nehemiah winds up referring the client back to an agent for short sale, they demand a $1,000 referral fee.
Loan Closing Turn times for Escrow Timing
Conventional Mortgage 30 days
FHA 30 days
Today's Rates
WITH ONE LOAN POINT
Conforming (<= $417,000)
30 Year 5.25%
5/1 ARM IO 4.5%
7/1 ARM 4.75%
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 5.375 %
FHA Conforming (<= $417,000)
5.5%
FHA Jumbo (to $520,950)
5. 625%
Super Jumbo (<= $3 million)
30 year fixed 7.125%
3/1 ARM 4.375%
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