FHA Eliminates Unlimited CLTVs for Refinance Transactions
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%
The clarification needs clarifying, but this seems to be bad news for all. I saw one post saying “Welcome to my ice cream shop! Thanks to the government we have vanilla, vanilla, or vanilla.” That is hilarious and sadly becoming true.
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.
Envoy Mortgage is a direct lender, lending in over 36 states and growing. Envoy Mortgage is looking to hire loan officers in all areas. I am specifically searching for originators in California. I am located in Contra Costa County and manage the Concord and the new Danville office locations. Envoy also has offices in Vacaville, Fullerton, San Diego, and more. If you or someone you know is looking for a change, Envoy is great place to be.
We are interested in hiring experienced loan officers with a current pipeline/book of business. Envoy Mortgage is also interested in complete branches or mangers looking to bring on their office.
Envoy Mortgage is known for it’s speed and technology. For more information you can contact me and visit these links.
http://mattsteinmetz.com/blog/envoy-hires-ca-underwriter/
The above link shows a post where I talk about Envoy Mortgage’s new underwriting center in Irvine, CA. We are now hiring an underwriter and senior processor. If you or someone you know has experience as an underwriter or senior processor let me know.
Envoy Mortgage is also looking to fill these positions in Houston and Atlanta.
I will be attending this event and am the Treasurer for the CCAR YPN. This is an exciting new networking group and I look forward to all of our future events, starting with this party!
Click above to see more info regarding the Contra Costa Association of Realtors Young Professionals Network kick off party. It is going to be a great time, come by and join us. It’s Free!
I am excited to announce that Envoy Mortgage is opening an location in Danville, CA. I will be setting up the office this week. AsI grew up in Danville, it will be nice to spend some time in the area. Our main office is located in Concord, CA which is centrally located to service all of Contra Costa County, but our new Danville satellite office allows us to service that portion of the 680 corridor easier.
Envoy Mortgage offers a wide range of products and is known for it’s ability to close fast. With mortgage rates a record lows, we are happy to assist you with your home purchase or refinance. First Time Buyer’s can take advantage of city or county down payment assistance programs. Call us today!
Join the team!
Thank you,
Matt Steinmetz
Envoy Mortgage -Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine 2151-A2 Salvio St
Concord, CA 94520
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