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.
Loading ...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
Only 12 weeks remaining of the Fed MBS purchasing program. I’ve blogged this before but let’s recap.
The fed planned to spend 1.25 trillion dollars buying mortgage backed securities, which are really just bundles of loans, like yours, that are sold on a secondary market, like stocks and bonds. They have spent over 1 trillion and with only 12 weeks remaining will be winding down this program. Why should you care?
Since the secondary market is like any other and responds to supply and demand, when there is less demand, investors will need to be enticed to buy. How do you do that? With larger returns. In this case returns are created by the interest rates, so you can see that higher rates will be needed. This is of course passed on to the consumer, meaning home loan rates are expected to go up.
If you or anyone you know has been on the fence, to buy or refinance, time is running out. We may or may not see one more dip before the 12 weeks is up, but rest assured that unless the Fed extends the program, rates will go up.
Couple higher rates with foreclosures and short sales, we can expect a slight loss in the (small) gains we saw late last year in housing prices. As rates go up the buyers lose purchasing power and are less likely to buy higher priced homes.
Loading ...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
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
January 1st marks the start of a new year, new decade and among other things the start of a new good faith estimate. New laws require lenders to use the 2010 version of this form. Created to allow easier shopping for consumers, this form is 3 pages instead of 1 and does not even show the consumer how much cash is needed to close, or any credits that may be given from Realtors, sellers or the lender. This rules are very strict as to when it must be presented to the borrower and to what fees can change after it has been given to the borrower. In short, it is a disaster for lenders and will result in higher fees, as lenders try to understand the changes and fear they will be stuck footing the bill of estimated 3rd party fees that change or were not disclosed properly at the beginning.
For example, let’s say a lender put a $400 fee for an appraisal and later that fee is really $450. Basically the lender is stuck paying the difference as they had only disclosed $400. Adding up the amount of fees that this can happen to means the lender could potentially be responsible for thousands. I don’t need to tell you that lenders will not want to do this and therefore will be padding fees from the start. Expect this as a new norm, at least until several loans are under the belt and lenders get used to the changes.
All lenders are undergoing training on this form and I have as well, with a 2nd session next week. Though the above is already a conclusion taken by most lenders. Leave it to the Government to take a 1 page form and turn it into a 3 page form, in order to make it easier, but only to make it more convoluted. *sense the sarcasm*
Loading ...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
msteinmetz@envoymtg.com
Learn When to Pay Points
Information about the $8,000 First Time Buyer Tax Credit
Apply for a loan online
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
The House and the Senate have passed the extension of the Homebuyer tax credit and made some changes. The President is expected to sign it into law tomorrow.
For 1st time buyer’s or those who have not owned a home in the last 3 years, the tax credit is $4,000 for singles and $8,000 for couples, with income restrictions maxing out at $125,000 for singles and $225,000 for couples.
Current homeowners, who have owned a home for 5 of the previous 8 years, can now also get a credit of $3,250 for singles and $6,500 for couples with the same income restrictions.
Purchase agreements must be signed by 4/30/2010 and close by 6/30/2010
Those in the armed forces, stationed outside of the U.S. on official duty for 90 days during the period of 1/1/2009 – 5/1/2010 have an extended time frame for signed purchase agreements to 5/1/2011 and closing to 6/1/2011.
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Visit my blog for my most recent mortgage related update.
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
AB 957 Galgiani (D-Livingston) This law will mandate that buyers of foreclosed homes would have the choice of using a local escrow office to handle the transaction. It also prohibits a seller of residential property from requiring the buyer to use an escrow service company or purchase title insurance chosen by the seller and would also prohibit a seller of residential property from, without good cause, disapproving the use of a title or escrow company chosen by the buyer.
This is Good News! If you have been involved in a purchase of a foreclosed home, you know that the escrow companies were forced on you by the seller. These companies, for the most part, were out of the area, over worked and simply not caring to your needs, since their client was the bank with the foreclosure. Terrible service is usually accompanied with these transactions. Now you can choose your own escrow company, a local company that you or your agent/lender has a relationship with. One that will care for your needs.
A small victory but one that helps!
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
The National Association of Realtors is out there trying to make some significant changes that will help the industry recover.
It’s great to see people trying to create change.
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
msteinmetz@envoymtg.com
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
Rates are 1/8% from the lowest rates ever! Should we be talking about your possibilities? Call me today.
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
2151-P Salvio St.
Concord, CA 94520
Phone 925-671-9501 x119
Fax 925-940-9639
msteinmetz@envoymtg.com
Visit my blog for my most recent mortgage related update.
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 |
|
| 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
Tags: envoy mortgage, Fannie Mae, fha, home loans, matt steinmetz, purchase, refinance
For those of you who have been sitting on the fence…
Waiting for rates to come down again, that time is here. Today rates were the lowest they have been since May. If you recall towards the end of May, rates jumped ½% in one day and even more over a few weeks. Finally, we have reached those lows again.
We are currently around the 4.875% marker for a no point 30 year fixed conforming loan(1), for qualified borrowers. Next Tuesday will bring us retail sales for August and this is expected to be a big market mover. Whether or not this will be good or bad news for rates is unknown, but it is expected to be good.
If you or anyone you know is considering a refinance, call me right away to get your paper work in line and ready to lock the best rates we’ve seen in months.
This is also a great time to buy with rates and prices this low.
(1) Based on credit scores above 750, primary residence, an impound account, and other qualifying factors. Call for more info.
Thank you,
Matt Steinmetz
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
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
FHA* VA * CALPERS * CALVET * FHA 203K Rehabilitation Loans * Energy Efficient Mortgages
Loading ...
