Matt Steinmetz's Blog » homeowners

FHA to Change Allowable Seller Credit Amount?

Matt Steinmetz — Wed, 25 Jan 2012 23:35:15 +0000

In a separate Federal Register notice to be published soon, the FHA will propose to reduce the maximum allowable seller concession from its current level to one more in line with industry norms. The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. The revised proposal reflects public comments received on an earlier proposal published in a Federal Register notice on July, 15, 2010. The revised proposal calls for a 30 day comment period. Following an analysis of the public comments received, a final rule will be issued.

Do you think this is a good or bad idea? Let me know by commenting below (log in using your facebook or twitter account through Disqus)

Matt Steinmetz

What Not To Do During Your Loan Processing

Matt Steinmetz — Mon, 23 Jan 2012 17:19:34 +0000

What Not To Do

To some it’s obvious and to others it’s not, but the following items are critical during the loan process. If you have questions about these or are in the middle of your loan process and have to do one of these let me, or your loan officer know (always tell your loan officer) so you can be sure you are not affected negatively.

IMPORTANT

It is critical to the success of your loan package that you avoid doing any of the following until after your loan has closed escrow:

1. Do not change or quit jobs.

2. Do not switch banks, make cash deposits or move your money around. If you do please keep a complete crystal clear paper trail that shows all money transfers and deposits between accounts.

3. Do not pay off bills. You should continue to pay the amount required, but do not assume that paying a debt off will alwasy benefit your score or loan approval.

4. Do not make any major purchases. Adding debt can be detrimental.

5. Do not close credit accounts or apply for any new credit cards or loans.

If you must do any of the above, PLEASE CONTACT YOUR LOAN OFFICER IMMEDIATELY. Audits are done just prior to funding and you may be placing your loan in jeopardy if you do not notify your lender of any changes.

Hope that helps! Please share and leave comments here.

Matt Steinmetz

Mortgages Get More Expensinve

Matt Steinmetz — Mon, 16 Jan 2012 19:59:03 +0000

On December 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this new law directs the Federal Housing Finance Agency (FHFA) to increase guarantee fees charged by Freddie Mac & Fannie Mae by no less than 10 basis points from the average guarantee fee (g fee) charged by these companies in 2011 on single-family mortgage backed securities. This increase will be remitted to the U.S. Treasury rather than retained as reserves by Freddie Mac and Fannie Mae.

Don’t be misled, I have read reports that by time the fee hits the street (by the time you get your loan) that fee is increased by several times. Most lenders are charging 40-80 Basis points per loan. What is a Basis Point? In short 100 basis points (bps) = 1% of your loan amount. So 40bps = .40% of you loan amount. Thinking about a $200,000 mortgage, this G-Fee has increased the cost by $800.

Home buyers are being tasked with the job to cover the cost of the payroll tax cuts… Is this robbing Peter to pay Paul? Smoke and Mirrors? Why are we increasing the cost for home loans when the housing economy is in need of help it’s self?

Matt Steinmetz

How You File Taxes Matters

Matt Steinmetz — Tue, 27 Dec 2011 21:37:03 +0000

Click here to view the embedded video.

This video by Matt Steinmetz covers some details about how tax returns affect you qualifying for a mortgage loan.

Please share with the buttons below and leave a comment.

FHA Home Flipping Policy

Matt Steinmetz — Thu, 22 Dec 2011 22:11:00 +0000

In February, FHA extended the FHA property flipping waiver until December 31, 2011. As of now, this waiver has not been extended again and will expire on 12/31/11.
All loans that are utilizing the waiver to get around the 90 day seasoning required by FHA on flip properties (mainly being used now by investors who are fixing/flipping homes) must have a FULLY EXECUTED purchase contract and must have a FHA case number assigned on or before 12/31/11. No extensions will be given to this deadline. Any loans with case numbers & contracts January 1^st or later will require 90 days seasoning prior to the borrower making loan application, with the only exceptions being the following:

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

•	properties acquired by an employer or relocation agency in connection with the relocation of an employee

•	resales by HUD under its Real Estate Owned (REO) program

•	sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies

•	sales of properties by nonprofits approved to purchase HUD-owned single family properties at a discount with resale restrictions

•	sales of properties that are acquired by the seller by inheritance

•	sales of properties by state and federally-chartered financial institutions and government sponsored enterprises

•	sales of properties by local and state government agencies, and

•	sales of properties within Presidentially Declared Disaster Areas.

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

Happy Holidays!

Matt Steinmetz

HARP Update II

Matt Steinmetz — Fri, 16 Dec 2011 17:17:47 +0000

Click here to see my older post for reference

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

HARP Updates- This May be Huge!

Matt Steinmetz — Mon, 24 Oct 2011 15:55:17 +0000

Click here to view the embedded video.

In this video:
The refinance program for underwater borrowers has helped some but has also taken a lot of flack because of it’s limits. Well that may be no more!!!
Fannie Mae and Freddie Mac will be rolling out updated guidelines to allow borrowers to refinance regardless of how much they owe, their appraised value. This means it doesn’t matter how underwater you are, if your loan is owned by Fannie Mae or Freddie Mac you may benefit. Those of us with second mortgage and HELOCS may still benefit assuming the second lender agrees to re-subordinate.

Watch the video and leave comments here. Be sure to share this with your friends, family and co-workers because this may help a lot of people.

Matt Steinmetz
Envoy Mortgage

Concord, CA Contra Costa County
925-548-3983

Escrow Holdbacks

Matt Steinmetz — Mon, 04 Apr 2011 04:38:32 +0000

Click here to view the embedded video.

Escrow Hold Backs can save your real estate transactions. When an appraiser calls an item that needs to be repaired in today’s market, many times there is no seller to negotiate payment of this item. Buyer’s don’t want to invest money into fixing a home until they own it and if your selelr is a bank it may be difficult to have this item repaired. This can delay your closing.
Using an escrow hold back we can get your deal closed on time and have the repairs completed after close.

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

Office: 925-671-9501 x119

FHA*VA*HomePath*FHA 203K*Less Than 90 Day Flips*USDA*Condo Approvals*Escrow Holdbacks*and now Up to 8 Financed Properties

Follow me on LinkedIn, Facebook, or Twitter

Baltimore sues Wells Fargo

Matt Steinmetz — Wed, 15 Jul 2009 18:28:27 +0000

Baltimore sues Wells Fargo

The city of Baltimore claims that they have lost tax revenue because Wells Fargo put buyers into subprime loans that should not have qualified for a loan, and that Wells encouraged loan officers, through compensation packages, to give subprime loans to borrowers even if they could get better loans. All of the foreclosures have taken away property tax revenue and Baltimore want to be paid. Two former loan officers have made statements to support that Wells Fargo encouraged this sort of steering clients into subprime loans. I am curious to find out the results of this. If Wells Fargo is found liable for this, what do you think should be the penalty? Comment below.

Use the share icon to put this on your Facebook, Twitter and many more social networking sites.

Matt Steinmetz

Envoy Mortgage

Concord, CA Contra Costa County

Rent from your Lender

Matt Steinmetz — Wed, 15 Jul 2009 16:23:59 +0000

Reuters says U.S. Officials are weighing a plan to allow borrowers who are falling behind on their mortgage payments avoid eviction by surrendering their home to their lender and paying the lender rent. This is in the think tank because Obama’s Hope for Homeowner’s Plan is not working as they’d hope. This way those who cannot afford their home can still ive in the home for several years. Do you think this is a good idea? Comment where you see “Responses” and at the top right.

[poll id="3"]

The article goes on to say that 1 in 5 homeowners owe more than their property is worth and with record unemployment today, the Treasury Dept. is looking at ways to save jobless homeowners from losing their home.

Use the share icon to put this on your Facebook, Twitter and many more social networking sites.

Matt Steinmetz

Envoy Mortgage

Concord, CA Contra Costa County