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Matt Steinmetz

As I find out more I will update this post, but what is important today is this, if you have a bond loan with conventional financing in processing, please verify it is still available.

I’d love to hear more about why this can’t be done from some industry experts.  Please comment below or feel free to contact me via social media or email. 

FHA Extends Waiver of Anti-Flipping Regulations Through 2012:
 
In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration (FHA) Commissioner Carol J. Galante will extend FHA’s temporary waiver of the anti-flipping regulations. 
 
With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days.  In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011.  The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
 
The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA.  All other terms of the existing Waiver will remain the same.  The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers.  The Waiver continues to be limited to sales meeting the following conditions:
·         All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
 
·         In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.
 
·         The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
 
Matt Steinmetz
Concord, Ca
Contra Costa County

4155.2 4.7.h Exceptions to the 90-day Restriction

The only exceptions to the 90-day resale restriction described in HUD 4155.2 4.7.e are for

If HUD decides to extend the waiver, we will notify you ASAP.

Happy Holidays!

Matt Steinmetz

First off this video is a little long.  I find myself pressed for time this holiday season so I shot this in one take just to be sure to get this out.  Watch it in parts if you must as it’s about 5-6 minutes long.

Click here to view the embedded video.

The updates I received are both encouraging and discouraging!   They’ll raise you up and bring you down!  Who knew loans could be so dramatic, like a Hollywood picture show!

If you prefer to read here it is:
No Loan To Value limit on “refi plus” loans- Refi Plus is a manual underwritten loan through your current servicer.
· DU refi plus loans will NOT be eligible until March 2012- DU Refi Plus loans can be originated by any licensed originator once the automatic underwriting systems are updated.  Until then you can only apply trough your current servicer.
· No Combined Loan To Value Limits- those with second loans can still qualify
· 105% LTV for fixed period (5 or greater) ARMS and 40 yr terms 2.

Refi plus u/w changes
· No late pays in past 6 months · No more than 1×30 in months 7-12 · No minimum credit score requirement when payment is not increasing more than 20%. · Re-qualify borrow if PITI is increasing by more than 20% and borrower must have/meet: 620 FICO, 45% max DTI, verify income/assets/assets to close per selling guide · If note provides for more than one payment, then use lowest payment to qualify · If payment is increasing 20% or less, than normal refi guidelines apply
Bankruptcy and Foreclosure policy-Waiting and re-establishment requirement removed on BOTH the new and existing loan 4. LLPA (Loan Level Price Adjustments)
Lender follows DU findings re: income, employment, asset, fieldwork c. Lender complies with all other requirements to the guide · When DU offers a fieldwork waiver, Fannie will accept property value estimate submitted to DU as the market value, and Lender is not required to make any rep or warrant as to value, marketability, and condition. · If Lender obtains appraisal on property, then standard reps and warrants apply · Lender not responsible for Condo project eligibility rep/war except for the requirement of the property is not in a condo/coop hotel or motel.

Other requirements with respect to the original loan:
a. the loan was eligible for sale to Fannie the first time
b. original loan was in compliance to current laws
c. No know scheme or patter of fraud involving 2 mortgages and 2 perpetrators, etc
d. Condo, coop, or PUD project must meet original requirements
e. If no new appraisal obtained, Lender must rep/war that the current value is not less than the original value from the original appraisal report.(Fannie Mae is confirming if this is accurate or not. · If a new appraisal received, then Lender must rep/war just like any other loan
· Lender not responsible for any QC findings from Fannie after the fact · Lender not responsible for any max DTI (except as stated earlier)
· Not responsible for acceptable credit history (except as stated earlier)
· Not responsible for undisclosed liabilities (except as stated earlier)

Contact me or COMMENT BELOW and share with your friends and social media 

Matt Steinmetz
www.mattsteinmetz.com
twitter:steinmetzmatt

http://ow.ly/7uYDe Here is the Fannie Mae Selling Guide

The HARP program has been extended through 12/31/2013.

“Fannie Mae is removing the maximum LTV ratio limit for Refi Plus mortgage loans secured by fixed-rate mortgages with terms up to 30 years. This includes loans with terms of 15 years, which were previously restricted to a maximum LTV ratio of 105%. There continue to be no limits on the CLTV or HCLTV ratios.

The maximum LTV ratio limits for all occupancy and property types are:

• no maximum for fixed-rate mortgages with terms up to 30 years,
• 105% for fixed-rate loans with terms greater than 30 years up to 40 years, and
• 105% for ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years (as permitted by the ARM plan).”

 WOW!! This sounds good so far! This is effective for loans with application dates after 12/1/2011. Though it sounds like it may take awhile for the systems to be updated to allow for these loans to be purchased by Fannie Mae.  This may mean that lenders would have to hold these loans, on their books, for a few months and many simply won’t want to do that. (possible strike 1 here) 

Underwriting Requirements (see video)

Click here to view the embedded video.

In addition they are eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model)

Here is the Federal Housing Finance Administartion release.  In here it reminds you the loan must be owned by Freddie Mac or Fannie Mae to qualify and how to determine if your home is.

Lastly this is not required for lenders to participate in and most lenders will need a few weeks to implement these changes.  Look for lenders to know more in December.  Hopefully many will participate and do so with overlaying their own, more stringent, guidelines. (fingers crossed)

Share this with the buttons below, people you know will want to know about this!

Thank you,
Matt Steinmetz  nmls# 221315
Envoy Mortgage
2151-A2 Salvio St.
Concord, CA 94520

Europe finds some help with the Greek debt issue which hurt U.S. mortgage rates and inflation, the enemy of mortgage rates begins to rear its ugly head!

Please leave your comments here and share this with your friends via the social media buttons below.

Thanks!
Matt Steinmetz
Envoy Mortgage

The CHF Program is basically a grant program that grants the buyer 3% for downpayment, leaving the buyer to only bring in .5% of their own funds for down payment.  It is important to remind you that the buyer still needs oney for closing costs, so it’s not just the 1/2% down needed.  A lot of people forget this. 

Closing costs can be handled in other ways of course.  The seller, Realtors and een the lender can help pay for some or aall of the costs.  The lender has the ability to raise the interest rate in order to increase the rebate he/she will get and in turn credit the buyer those funds to cover the costs.  Of course a higher rate means  higher payment and of course the buyer must qualify for that payment.

Let me know if you’d like more info on this.  Comment here or contact me.

Matt Steinmetz
Envoy Mortgage
Located in Concord, CA, Contra Costa County

Fannie Mae’s Homepath program allows for 10% down for investors when buying a Homepath home.

Non Fannie Mae Homepath homes can use normal conventional financing with 15% down for investment property loans.  This does require mortgage insurance but with prices so low you may still have positive cash flow while keeping 5% of the sales price in the investors pocket vs. putting 20% down.

Thankyou,
Matt Steinmetz  nmls# 221315
Branch Manager
Envoy Mortgage

2151-A2 Salvio St.
Concord, CA 94520

Office: 925-671-9501 x119
Visit Envoy925.com

FHA*VA*HomePath*FHA 203K*Less Than 90 Day Flips*USDA

Condo Approvals*Escrow Holdbacks*and now Up to 8 Financed Properties