NEW UP DATES AS OF 08/08/2010

However, potential borrowers must show that they are employed and will be able to make their payments. There's no minimum credit score to participate though a low score could effect your interest rate. Applicants are immediately disqualified if they have been more than 30 days late on any home loan payments in the past 12 months.

The structure of the current loan also makes a big difference. For example, the loan has to be owned or guaranteed by Fannie Mae or Freddie Mac to benefit from this program. Don't panic - there's a good chance that your banker sold your loan to one of these two mortgage giants after they made the loan to you. Find out here for Fannie Mae or here for Freddie Mac.

NEW UP DATES ABOUT MORTGAGES AS OF 01/01/2010

You've found your dream house, lined up a mortgage, and you're ready to close. Unfortunately, that final step in the home-buying process can be fraught with unpleasant surprises. Even the most well-prepared home-buyers have found themselves saddled with higher than expected closing costs and fees.

Not anymore. Thanks to new federal rules that went into effect on January 1, the mortgage process has never been more transparent and easy to understand.

The centerpiece of the Department of Housing and Urban Development effort is a standardized Good Faith Estimate that all lenders must provide to borrowers. The 3-page form is written in plain English and clearly discloses to borrowers the actual costs of their mortgages, including interest rates, fees and penalties. it also explains which fees are subject to change, and which are not. In addition, closing agents must provide borrowers with a new HUD-1 settlement statement that compares borrowers' final and estimated closing costs.

The new standardized forms are intended to help borrowers shop around for the best mortgage deals on an apples-to-apples basis, whether they are refinancing or buying a new home. "Shopping for your loan is probably the most important step in your home-buying process," HUD points out in a settlement cost booklet it published that explains the changes and that lenders must provide to borrowers. "The type of loan product and your interest rate will not only influence your total settlement costs, but will determine the amount of your monthly mortgage payment," the agency notes.

Closing costs can account for between 3 and 5 percent of a sale price, so those surprises can pack a punch to the wallet. And at that point in the process, borrowers have little leverage to negotiate. The agency figures that the disclosures and ability to comparison shop could save consumers, on average, $700 in mortgage costs.

The changes to the the Federal Real Estate Settlement Procedures Act address a longstanding issue that came to a head during the housing crisis. Good Faith Estimates have long been required under RESPA, but in the past, they weren't very helpful. For one, they estimates were not legally binding, and often bore little resemblance to final costs. Secondly, the estimates varied widely, with lenders using different terminology for fees, or sometimes omitting fees altogether, making it difficult to compare mortgage offers.

"If we learned anything from the current crisis it's that it is hard for borrowers to make responsible decisions if they don't have all the necessary information," said HUD Commissioner David Stevens. "I believe these changes will take away much of the uncertainty borrowers have about the accuracy of disclosures."

Clearer disclosure should help prevent borrowers from taking on mortgages they can't afford, as many did during the during the housing bubble. The new Good Faith Estimate requires lenders to disclose features that could drive up costs down the road -- for example, if your interest rate will rise and, if so, by how much. Lenders must also now disclose whether the loan includes balloon payments, yield spread premiums, or imposes penalties for paying the loan off early.

The forms also make clear which charges cannot increase at settlement, and which can. Charges that cannot increase are generally those controlled by the lender, including the origination charge and processing fees. Fees for third-party services, such as appraisals and title insurance, can increase no more than 10% from the estimate, as long as the borrowers use lender-approved providers.

LOOK AT THIS AS OF 10/15/2009 Is The FDIC Killing Short Sales?
> As some of you already know, I blogged recently about being
> interviewed recently by our local NBC news affiliate. 
> To read the blog, click here.  Basically, IndyMac Bank
> (now OneWest Bank), is holding one of my clients hostage,
> demanding a $75k promissory note, or they will proceed to
> foreclosure.  For the life of me, I couldn't figure
> out why they were doing
>  this.  The BPO came in at the contract price of
> $275k, with a net to IndyMac of $241k.  What advantage
> could there possibly be for them to proceed to foreclosure?
> Yesterday, I figured it out.  You see, IndyMac was
> taken over by the FDIC and sold to OneWest Bank in
> March/2009.  Guess who the investors are behind
> OneWest?  George Soros, Michael Dell, Steve Mnuchin
> (former Goldman Sachs executive), and John Paulson
> (hedge-fund billionaire).
> Now, listen to the deal they got from the FDIC....
> Basically, they purchased all current residential mortgages
> at 70% of par value (70% of the outstanding loan
> amounts).  They purchased all current HELOCS at 58% of
> Par Value!!!
> Next, in order to "sweeten the pot", the FDIC
> stepped in and guaranteed the following:  For any
> residential mortgages where OneWest experiences a loss, the
> FDIC will step in and cover anywhere from 80%-95% of the
> loss.  The loss is calculated
>  using the ORIGINAL LOAN BALANCE, not the amount that
> OneWest paid for the loan.  Let's use my clients
> situation as an example:
> Loan Amount is $478,000, plus 6 months of missed payments,
> for a grand total of $485,200
> OneWest pays $334,600 for the loan
> We have an all cash offer of $241,000, net to OneWest.
> So, let's do the math, shall we?  The net loss,
> according to the FDIC formula is the ORIGINAL LOAN AMOUNT
> minus the amount of the offer.  In this case,
> $485,200-$241,000, or $244,200.  Next, the FDIC,
> according to their Loss Share Agreement, writes a check to
> OneWest for 80% of the so-called "net loss". 
> So, in this case, OneWest gets a check from Uncle Sam for
> $195,360 (.80 X $244,200).
> Add the $195,360 to the sales price of $241,000, and you
> get a grand total of $436,360.  Remember, OneWest paid
> $334,600 for the loan.  So, OneWest puts $101,760 in
> their pocket, thanks to the FDIC.  Folks, that is
>  over $100k of our hard-earned tax dollars!
> So, you ask...Why does this program hurt short sales? 
> Because, our brilliant government offers this SAME PROGRAM
> FOR FORECLOSURES!  The only difference is, the
> government picks up 80% of the tab on all of the extra costs
> associated with a foreclosure (BPO's, upkeep,
> utilities/maintenance, legal fees, etc.)
> So, If I'm OneWest, why would I want to waste my time
> negotiating through a Short Sale, when I can make the same
> amount of money (if not more) by just letting it go to
> foreclosure?  And we wonder why nobody can get a Loan
> Modification?  Why would OneWest approve a loan
> modification for this guy, when they can foreclose and make
> over $100k?  And, to add injury to insult, they have
> held this loan for 6 months!  Not a bad ROI, huh?
> What infuriates me the most is that in my particular case
> mentioned above, they have the guts to hold my client
> hostage for a $75k promissory
>  note, after they are already making more than $100k on the
> sale!!! This is his primary residence, 1st Position loan,
> and OneWest has NO RECOURSE!  Imagine if they could
> make $100k, then get a deficiency judgement!  Talk
> about making some big bucks!
> Can you say "GREED"?
> The scary thing is that over 50 banks have Shared Loss
> Agreements in place with the FDIC.  Some of them
> include:  Bank of America (go figure), CitiMortgage,
> Wells Fargo, etc.
> This entire agreement between the FDIC and OneWest can be
> found here, on the FDIC website.  It's all there,
> for the world to see!  They have it all layed
> out.  All of the formulas, worksheets, etc.
> Now, it's up to us to bring it to the attention of our
> elected officials and the media.  Enough is Enough!
> UPDATE 9/18/09:  I JUST READ AN AWESOME ARTICLE ON
> THIS, THAT GOES INTO WAY MORE DETAIL THAN MY BLOG
> ABOVE.  TAKE THE TIME TO READ IT WHEN YOU GET A
>  CHANCE! CLICK HERE TO READ IT.
> Wait, it gets better...The FDIC just announced that it
> needs to start borrowing money from the U.S. Treasure in
> order to replenish it's deposit insurance fund (the same
> fund being used to pay all of these banks in the Loss Share
> Agreements).  Go Figure! 
New Up Dates As Of 10/14/2009

NEW YORK – The Dow Jones industrial average is back above 10,000 for the first time in a year.

The Dow has crossed five figures seven months after it hit a 12-year low of 6,547.05 on March 9. The comeback by the stock market's best-known indicator is the most visible sign yet that investors believe the economy is indeed recovering from the financial crisis and recession.

Upbeat earnings reports from chip maker Intel Corp. and banker JPMorgan Chase & Co. Wednesday have given the Dow its final push past 10,000. The average has slipped back several points since crossing the milestone, but that's part of the normal ebb and flow of trading.

Investors are increasingly shaking off lingering doubts about the economy. However, analysts still warn that problems like rising unemployment and a weak housing market pose a threat to a solid recovery.

NEW UP DATES AS OF 09/29/2009

Bank of America

Citigroup

UP DATES AS OF 5/20/2009 for June 2009

Fannie Mae has published Desktop Originator® (DO®)/Desktop Underwriter® (DU®) Version 7.1 June Update Release Notes on eFannieMae.com. This release will be implemented during the weekend of June 27, 2009.

The DU Version 7.1 June Update release will increase customer efficiency in identifying and processing DU Refi Plus™ loan casefiles by:

• Making the DU Refi Plus message more prominent in the DU Underwriting Findings Report;
• Modifying the property address validation process to increase the number of loan casefiles that can be matched to existing eligible Fannie Mae loans;
• Adding new messages that identify why a loan casefile was not underwritten as DU Refi Plus, thereby enabling users to take quick action; and
• Allowing customers to instruct DU to underwrite an eligible DU Refi Plus loan casefile as a standard limited cash-out refinance, if customers determine that the borrower’s situation warrants the loan casefile to be underwritten as a standard limited cash-out refinance transaction.

In addition, the release will support DU Refi Plus guidelines specified in Announcement 09-13, Home Affordable Refinance — Updates and Clarifications to Announcement 09-04, including not allowing temporary interest rate buydowns and limiting the amount of cash back received by the borrower at closing. For full details, see the DO Release Notes for Brokers page on eFannieMae.com.

We thank you for your continuing feedback about DU and DU Refi Plus. This release is a direct response to that feedback. Fannie Mae also appreciates your understanding of the multiple and closely-timed DO/DU releases that have resulted from our efforts to respond rapidly to the Administration's Home Affordable Refinance Program. We hope that these updates will help improve the information and service that you are able to provide your customers regarding DU Refi Plus.

 NEW UPDATES 04/21/2009

Release Notes Updated for DU Version 7.1 May Update 
 
Fannie Mae has updated the Release Notes for the Desktop Underwriter® (DU®) Version 7.1 May Update release, which will be implemented during the weekend of May 2, 2009. 
 
The updated Release Notes explain that the mortgage insurance (MI) messages issued by DU for DU Refi Plus™ loan casefiles are being modified as follows: 
 
When there is currently MI in effect on the existing Fannie Mae loan, the message issued will advise the lender to confirm the amount of MI coverage in effect prior to obtaining new MI at that specified level of coverage or modifying the existing MI certificate. 
When it appears no MI is in effect on the existing Fannie Mae loan, the message issued will not require the lender to confirm if MI is in effect

NEW UP DATES AS OF 04/01/2009

The most common identity theft victims tend to be middle-aged married females, divorcees, or those who make more than $75,000 a year, according to a newly released survey.

NEW UP DATS AS OF 03/21/2009 

Up Dates as 03/05/2009

The new credit standards from Fannie Mae and Freddie Mac are still evolving, but one thing seems clear: If you are closing soon on a property, you better bring a big fat check. Here's how the numbers pan out...

You have to go back to around 1961 to find a time when 30-year mortgages had rates this low, according to Keith Gumbinger, a vice-president at financial publisher HSH Associates in Pompton Plains, N.J. For that, thank the U.S. government, which is trying to jump-start the stalled housing market by buying up mortgage-backed securities. On Dec. 31, Freddie Mac reported that average rates on 30-year fixed mortgages dropped to 5.1% for the week, down about 1.3 percentage points since late October and the lowest since its survey began in 1971.
Rates are probably headed even lower in 2009, raising the question of whether you should borrow now or wait for a better deal. The experts are sharply divided over this one. Put it this way: If you're a gambler, wait. If you can't sleep at night worrying that rates will go up from here, borrow now.
Click through our gallery above as BusinessWeek shares key things you need to know about today's mortgage market.
 In a story in today's Wall Street Journal, we find that a borrower needs a credit score of at least 740 to qualify for a home-purchase loan with a 20% down. With that excellent credit score the borrower could qualify for a loan rate of 4.75% plus a 1% origination fee. If a borrower's credit score is below 680, then the best he or she could do would be a 4.75% loan with 2.5% in fees.
FHA UPDATES.The only way you might find a way to purchase a home with less cash up front would be to work with the FHA. The FHA is still accepting borrowers with low credit score! s and do wn payments of as little as 3.5%.Fannie and Freddie say they are focusing on keeping people in their homes and not on making new loans. The problem is that since Frannie and Freddie are the only players in town for most mortgages, since private mortgage money dried up, there's not much to go around to help people who want to buy a home. The only way we're going to stop the downward spiral in home prices is to reduce the backlog of homes on the market.Treasury, Federal Reserve, and the FDIC Provide Assistance to Bank of America The U.S. government entered into an agreement today with Bank of America to provide a package of guarantees, liquidity access, and capital as part of its commitment to support financial market stability. Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $118 billion of loans, securities backed by residential and commercial real estate loans, and other such assets, all of which have been marked to current market value. The large majority of these assets were assumed by Bank of America as a result of its acquisition of Merrill Lynch. The assets will remain on Bank of America's balance sheet. As a fee for this arrangement, Bank of America will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve stands ready to backstop residual risk in the asset pool through a non-recourse loan. In addition, Treasury will invest $20 billion in Bank of America from the Troubled Asset Relief Program in exchange for preferred stock with an 8 percent dividend to the Treasury. Bank of America will comply with enhanced executive compensation restrictions and implement a mortgage lo an modification program. Treasury exercised this funding authority under the Emergency Economic Stabilization Act's Troubled Asset Relief Program (TARP). The investment was made under the Targeted Investment Program. The objective of this program is to foster financial market stability and thereby to strengthen the economy and protect American jobs, savings, and retirement security. Separately, the FDIC board announced that it will soon propose rule changes to its Temporary Liquidity Guarantee Program to extend the maturity of the guarantee from three to up to 10 years where the debt is supported by collateral and the issuance supports new consumer lending. With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy. As was stated in November when the first transaction under the Targeted Investment Program was announced, the U.S. government will continue to use all of our resources to preserve the strength of our banking institutions and promote the process of repair and recovery and to manage risks.