Be on the look out for FHA, as they are trying to raise the monthly mortgage insurance premium (MIP) from .55% to .85%.
Reading in my posts below you will see that they are already raising the upfront MIP from 1.75% to 2.25%.
Check back here, as I will let you know if this gets passed.
I heard the Tavern on the Green in Central Park is or has just closed. Here is a picture I took while there last September. Many people remember this place by the manicured animal shapes like this one.
The Fed says that the Fed’s Mortgage Backed Securities purchase program (see previous post), will end March 31st. Overall this news was taken bad as rates got a little worse yesterday.
Also in a previous post, I commented on FHA changes. Well it looks like the date for the increase in up front mortgage insurance (UFMIP) is April 5th. The increase, just days after the Fed stops buying MBS’s, takes the UFMIP from 1.75% of the loan amount to 2.25%. If you look at a $300,000 purchase price, and use FHA with the minimum 3.5% down, after April 5th your UFMIP will be $1,582 higher! This is can be a problem for a lot of people. I know, because I see how people struggle to save just enough for a down payment and closing costs.
It is true that UFMIP can be, and usually is financed into the loan amount, how ever that means higher payments. While the impact to payments is low, those buyers who are already on the border for qualifying will be affected.
At some point the cap for seller credits will come into play as well. Currently a seller can credit 6%, but FHA will shrink that to 3% sometime soon.
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Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
| Big ‘09 Growth For a Startup Texas Lender |
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| By Paul Muolo National Mortgage News Page 1 Sep 28, 2009 Eighteen months ago when industry veteran Rick Thompson bought into a small mortgage banking firm in the Houston area – with an eye toward molding it into a national lender – people thought he was crazy. “I was told this wasn’t such a good idea,” he said. “The industry had blown up, especially the middle-tier firms.” A further challenge for Mr. Thompson – who’s been in the business for three decades – is the fact that Envoy Mortgage is a non depository and depends on warehouse lines of credit. “Three months ago our warehouse providers were Colonial, Guaranty and National City.” In case you’ve been living in a cave, here’s an update on those three firms: Colonial Bank (once the nation’s largest warehouse provider) has gone bust, as has Guaranty. As for National City, it’s now the property of PNC Financial Services, a bank well known for loathing the residential mortgage business. PNC, said Mr. Thompson, is continuing to extend credit to Envoy and BB&T “has picked up our Colonial line.” Even though three months ago Envoy had just there warehouse lenders, today it has six. And business is booming at the 50-branch retail-only lender. By the time 2009 ends, Envoy will fund $2 billion in loans, a handsome 189% gain from last year. All of its originations are either Fannie Mae, Freddie Mac or FHA-guaranteed product. Most of its loans are sold servicing-released, but Envoy one day hopes to service its own originations. The company is a Fannie Mae seller/servicer and is waiting on final approvals from Freddie and GNMA. Mr. Thompson, who made his name in the industry by managing Troy & Nichols of Monroe, La., and then later on Aegis Mortgage, Houston, wants to take the company to the next level. (Mr. Thompson left Aegis in 2006, a year before it filed for bankruptcy protection. He’s declined to talk in detail about Aegis’ majority owner, Cerberus Capital, but he’s made it clear in past interviews that he and the hedge fund’s upper management didn’t exactly see eye-to-eye. Aegis was a Fannie/Freddie/alt-A lender with occasional forays into subprime.) His ultimate goal is to make Envoy into what he calls a “middle tier” lender, one that ranks between 10th and 50th nationwide. In short, he believes much of the old existing middle tier has gone bust and that in time a new middle tier will rise from the ashes. “We believe the middle tier will be reconstituted,” he said. But to get there, Envoy, said Mr. Thompson, will need additional capital – and a banking charter. “We’re looking to buy a bank or affiliate with one,” he said. “I’ve been looking at a lot of banks these days but we’re not quite there yet.” Whether he and his partners will actually get a bank remains to be seen, but rest assured he isn’t the only nonbank executive toying with the idea of getting his hands on a depository. Rumors abound that all sorts of former nonbank executives are lining up to buy depositories for the simple reason they want a reliable source of funds (deposits) which they can use to fund and service residential originations. One West Coast-based nonbank servicer I know told me recently that he’s been looking at dozens of banks in California but so far hasn’t found a small to midsized depository that he can get comfortable with. “A lot of them have commercial (real estate) loans that are ready to explode,” he said. As for Mr. Thompson, he’s hopeful. He believes that thanks to the industry’s warehouse crisis being small these days puts nonbanks of all sizes at a major competitive disadvantage. “Smaller firms are definitely having a tougher time getting warehouse lines. There’s a fear about buyback requests,” he said. “And then there’s the cost of compliance – it keeps going up.” |
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On a personal note I enjoy working with Envoy Mortgage and look forward to the future as we grow. Envoy is truly a great company to work for.
Matt Steinmetz
Tags: envoy mortgage, Fannie Mae, fha, home loans, matt steinmetz, purchase, refinance
This loan gives you extra cash to complete energy efficient improvements in your home. This loan is similar to the FHA 203K streamline loan, which is a larger scale rehab loan, but the EEM (Energy Efficient Mortgage) lends up to $8,000 maximum. The 203K and EEM can be used together.
Just in case you were not aware of this little program here is some information about the the Energy-Efficient Mortgage.
-Finance up to 15% of an existing home’s value or 5% of a new homes value
-The monthly energy savings are added to your income, to help you qualify
-There is a 3% minimum investment required by you, but rebates and other incentives from the governmanet may be applied toward your contribution.
Some items you can use the money for are:
If you’d like to know more, contact me today.
Also, feel free to Share or Comment
Thank you,
Matt Steinmetz
Envoy Mortgage
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online
Contra Costa County, home loans, mortgages, Concord, CA, refinance, rahab loans, 203K, FHA
Don’t hold your breath. As I excitedly read the guidelines for the new FHA program that allows you to erase 30% of your principle balance in order to lower your payments and hopefully not be underwater on your loan… I quickly realized this is yet another new program that the government spent a lot of time and money developing and that it will help very few.
The problem is that you have to already be in an FHA loan. Most of us do not, unless you bought in the last year or so. You have to be delinquent on your mortgage, AND already tried to resolve the issues with 3 other programs, before FHA will entertain your case.
Feel free to comment or share.
Thank you,
Matt Steinmetz
Envoy Mortgage
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Information about the $10,000 New Home Tax Credit in CA
Apply for a loan online
Matt Steinmetz, Concord, Ca, Contra Costa County, Envoy
Here is a link to a flyer on this topic
The FHA Streamline 203K loan can be used on purchases or refinances. This loan allows you to get extra money above the payoff amount or cost of the home to handle repairs or upgrades. This is great for buying fixer uppers or putting windows in your existing home, plus much more.
Loan amounts can go up to the maximun FHA loan limits in your county. For Contra Costa County that limit is $729,750. The maximum for repairs is $35,000 but a portion of that is not available to you as it is kept as reserves and then returned to the bank if unused, which reduces the balance on your loan.
The borrower gets 50% of the improvement proceeds at the loan closing and the other 50% after the repairs are completed. The repair work can be financed over and above the contracted sales price or appraised value with the total being added to the final loan amount, up to 110% of the value. Any repairs over $15,00 do require an inspection upon completion.
Let me know your thoughts on this by commenting below, and feel free to use the share button to pass this along.
Matt Steinmetz
www.mattsteinmetz.com
Today the unemployment rate is at it’s highest since 1983, sitting at 9.5%. The US has now seen the biggest drop in jobs since post World War 2, with about 6.5 million jobs lost since the recession began in December 2007.
This is not all doom and gloom as this should help mortgage rates improve along with the fact that the Dollar is getting stronger and oil prices are going down again. Oil prices going down pressures the entire stock market to sell off, and we know from earlier posts that when stocks sell off, that money usually ends up in bonds. This also helps rates improve.
With that said, where the bond market is today, the last time it sat here it reversed for the worse. Since rates are tied to the bond market, we certainly hope this doesn’t happen again. With the markets closing early today and closed tomorrow, a sell off would not be uncommon. You can see why it is impossible to know what rates will do, so many factors involved.
Watch for my next post about the FHA 203K laon for rehabing or repairing your home, or a home you want to buy.
Matt Steinmetz
Tags: 203k, Concord ca, fha, home loans, matt steinmetz, rates
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