Matt Steinmetz's Blog » matt steinmetz

20 Reasons for Title Insurance

Matt Steinmetz — Mon, 30 Jan 2012 18:16:16 +0000

http://teachingloans.com/post/16598399885/reason4titleinsurance

This link will share the reasons. I get asked this occassionally and wanted to share.

Matt Steinmetz

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

Standard Items Needed for Loan Approval

Matt Steinmetz — Sun, 22 Jan 2012 17:17:41 +0000

Standard Items Needed for Loan Approval

The following items are normally needed during the loan process. Your lender may require more or less but this gives you a basic idea of what to expect. All of these items may not apply to you, for example if you are not divorced you can ignore that requirement.

Most current paycheck stubs (cover 30 days) for all jobs, disability, etc
W-2 or 1099s for years 2009 and 2010 for all employers and all income received
Complete copies of your Federal tax returns with all of the schedules for 2009 and 2010 (page 2 signed)
Divorce decree/marital property settlement or Legal Separation paperwork if applicable
Most recent 3 months bank statements for all bank accounts (all pages)
Current quarterly statements of investment accounts (retirement, 401K’s) (all pages) if being used for down payment, reserves, or for paying closing costs
Complete bankruptcy papers, including final discharge document if applicable
Landlord name, address and phone number for last 2 years (if you rent)
Proof of current homeowner’s insurance policy on your home
Mortgage statement for your Current Mortgage(s) (for all properties) and all houses
Clear and enlarged copy of Drivers License for each borrower
Copy of Trust paperwork if title is held in a Trust or Income comes from a Trust

Let me know if you have any questions!

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.

Jumbo Loan Question

Matt Steinmetz — Fri, 23 Dec 2011 16:49:15 +0000

I am not too well versed in the servicing and secondary side of the mortgage industry so perhaps there is someone among us who can explain to me why we can’t split a Jumbo loan to be serviced by say two (or more) servicers (lenders) in order to lower risk, make money more accessible and perhaps cheaper? The cheaper part may not be realistic since there may be need for a 3rd party like a trustee or receiving party who then sends the appropriate portion to each servicer, but it seems to me that there is money to be made here.

I’d love to hear more about why this can’t be done from some industry experts. Please comment below or feel free to contact me via social media or email.

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

Merry Christmas

Matt Steinmetz — Thu, 22 Dec 2011 19:08:39 +0000

Click here to view the embedded video.

This is me wishing everyone a Merry Christams and Happy Holidays with a bonus music track!

Share this with your social media and comment below.

Happy New Year,

Matt Steinmetz

The Importance of Credit

Matt Steinmetz — Wed, 21 Dec 2011 21:54:40 +0000

Click here to view the embedded video.

This video goes over the importance of establishing credit and having good credit and at least 3 tradelines (open credit sources).

If have questions about your scenario, let’s talk.

Please comment below and share this with the social media buttons.

Matt Steinmetz