This update from Mortgagee Letter 2010-24 contains changes to the new maximum CLTV limits for refinance transactions, which will be effective for case numbers assigned on or after September 7, 2010.

The combined amount of the FHA-insured first mortgage and any subordinate lien may not exceed the applicable FHA LTV AND the geographical maximum mortgage amount (does not apply to streamline refinance transactions).

Here are the 4 Maximum CLTVs for Refinance Transactions that you need to know about:

Rate and Term (or No Cash Out) Refinances = 97.75%

Refinances for Borrowers in Negative Equity Positions* = 115%

FHA-to-FHA Streamline Refinances With or Without Appraisals = 125%

Cash-out Refinances = 85%

via LoanToolbox.com – FHA#FHA#FHA#FHA.

Let me know if you have any questions.

Matt Steinmetz

Envoy Mortgage

Located in Contra Costa County in Concord, CA

Once Obama sings it, this bill will allow FHA to raise it’s annual premiums from .55% to 1.55%.  The idea is that FHA, being the crutch of our housing recovery, can better position itself and rebuild reserves.  The idea is that FHA will lower its upfront premium, which went up from 1.75% to 2.25%, and raise it’s annual premium (paid monthly) as needed.  Whether or not FHA raises it partially or all the way to 1.55% is what we wait for.

Thank you,

Matt Steinmetz

NMLS# 221315

Envoy Mortgage- Hiring experienced Loan Originators, Ask me for info.  

2151-A2 Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

Fannie Mae is updating several policies regarding the future eligibility of borrowers to obtain a new mortgage loan after experiencing a pre foreclosure event (pre foreclosure sale, short sale, or deed-in-lieu of foreclosure).

The “waiting period” – the amount of time that must elapse after the pre foreclosure event – is changing and may be dependent on the LTV (loan to value) ratio for the transaction and whether extenuating circumstances contributed to the borrower’s financial hardship (for example, loss of employment). In addition, Fannie Mae is updating the requirements for determining that borrowers have re-established their credit after a significant derogatory credit event.

In the past a borrower would have to wait 4 years after a deed in lieu of foreclosure to get a Fannie Mae loan.  Now with 20% down that time frame is 2 years, otherwise it’s still 4 years and capped at 90% LTV.

Pre foreclosure sales and short sales are 2 years, with the same LTV restrictions.

Extenuating circumstances may allow a borrower to get a loan up to 90% after just 2 years.

Borrowers must show they have re-established credit and show good payment history and good fico scores.

After a foreclosure borrowers still have to wait 5 years to buy again under Fannie Mae, but FHA is 3 years and VA is 2.

Thank you,
Matt Steinmetz
NMLS# 221315

Envoy Mortgage- Hiring experienced Loan Originators, Ask me more.

2151-A2 Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter
Apply for a loan online

FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

Still to come are the possible changes to the allowable amount of seller credits, form 6% to 3%, and the possible change from allowing 3.5% down to 5% down payment.

As for rates, they have gone up about .25% in the last few days and today is no different.  The market is already looking like we’ll have a reprice for the worse.  As you know from my previous posts, the Feds have stopped buying MBS or mortgage backed securities.  This leaves a lot of supply on the market and with out demand, rates will have to go up to entice investors into the market place.

Last Friday also saw the best jobs report in 3 years and the stock market is reacting positively to that today, as it was closed on Friday.

Feel free to comment or share with anyone you know.

Thank you,
Matt Steinmetz
NMLS# 221315

Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-A2 Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter
Learn When to Pay Points
Apply for a loan online

FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages * HomePath * Flips

the link above will give you a few details.  Here are some details:

• Temporary assistance for unemployed homeowners while they search for re-employment.  Payments reduced to affordable level for a minimum of three months, and up to 6 months for some borrowers, while eligible homeowner looks for new job.
• All servicers (who you make the check to)  are requirement to consider alternative principal write-down approach and increased principal write-down incentives.  This pertains to borrowers who owe more than 115% of the homes value
• Other implementations are to reach more consumers and help those going through foreclosures by making the process smoother.

Thank you,
Matt Steinmetz
NMLS# 221315

Envoy Mortgage- Hiring experienced Loan Originators, Ask me for more info.
2151-A2 Salvio St.
Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter
Apply for a loan online

FHA * VA * CALPERS * CALVET * FHA 203K Rehab Loans * Energy Efficient Mortgages * HomePath * Flips * County/City Homebuyer Assistance Programs

Starting May 1st, the very day after the federal tax credit ends, California’s tax credit kicks in!!!

This time it’s not just for new homes either.  First time buyers, purchasing new or existing homes can apply for the lesser of 5% of the sales price or $10,000.  This is good for accepted purchase contracts from May 1st through Dec 31, 2010. 

Post a comment and let me know what you think about this.  Is it going to help?  Do you know anyone who needs to know this?  Please pass this along by using the share button, or copy the link in your browser.

I’m here to help, let me know what I can do for you, or someone you know.

Thank you,

Matt Steinmetz

NMLS# 221315

Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine

2151-A2 Salvio St.

Concord, CA 94520

Phone 925-671-9501 x119

Follow me on Twitter

Learn When to Pay Points

Apply for a loan online

FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages

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.

Leave a comment, subscribe and forward to a friend.

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

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.”

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

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:

• Windows and Doors
• Heating and Cooling
• Insulation

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