New Up Dates As Of 07/12/2010

Many underwater homeowners-those who owe more on their home than it is currently worth-feel stuck. They can't sell without taking a major loss, and they often can't refinance because the appraiser's report doesn't past muster. If they want to take advantage of some mortgage modification programs, they're often told they need to be behind in their mortgage first.

But what if they are current on their mortgage? Well, the government has a new plan for these homeowners.

Under a new U.S. Department of Housing and Urban Development (HUD) program, homeowners who are current on their loans can reduce their hefty loan-to-value mortgage debt by 10 percent, if they qualify and if their lender approves. This is big news, especially for homeowners in the five hardest-hit states--Nevada, Arizona, Florida, Michigan and California-where between 35 percent and 70 percent of existing homes have underwater mortgages.

"Negative equity is a significant drag on both the housing market and on economic growth," said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners." Negative equity and near-negative equity mortgages account for nearly 29 percent of all U.S. residential properties with a mortgage.

First American CoreLogic reported in February that more than 11.3 million of residential mortgages held negative equity in their homes at the end of 2009, up from 10.7 million in third quarter. An additional 2.3 million homes were approaching near-negative equity. "Once negative equity exceeds 25 percent, or the mortgage balance is $70,000 higher than the current property values, owners begin to default," according to the CoreLogic report.

As many as 4 million homeowners could get help by 2012 from expanded FHA programs, with the federal government funding the program for up to $50 billion through the Troubled Asset Relief Program or TARP.

But Jay Dacey, a mortgage planner in Plymouth, Minn., cautions homeowners before they jump into these government-initiated programs. "The programs the government has tried to instill to date have completely failed," he says. "I believe if you do one of these it might adversely affect your credit because it will show that you settled for less. I would tell the consumer to make sure they understand the credit consequences in advance." So do your homework, he cautions.

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

* The total mortgage amount for the borrower after refinancing cannot be greater than 115 percent of the current value of the home. After all, the goal is to lower a mortgage to be closer to today's actual value.
* The homeowner must occupy the home as their primary residence.
* The homeowners must qualify for a new FHA loan under standard FHA borrower guidelines.
* The homeowners must have a FICO credit score of at least 500-which is a lower than getting a traditional mortgage.
* The existing loan cannot be FHA-insured. That's because FHA guidelines doesn't allow its own loans to be reduced.
* The lender must agree to write down the principal loan balance a minimum of 10 percent and the final loan amount cannot exceed 115 percent of the current value of the home (including any second mortgages).
* The refinanced FHA loan cannot be greater than 97.75 percent of the value of the home. This means if you may have to bring money to the closing table to lower it further. If you don't have cash on hand, you can get the second loan to cover the difference.

This is relief for those who might not otherwise be approved by the Home Affordable Modification Program (HAMP). Under HAMP, more than 1.4 million homeowners received offers for trial modifications and more than 1.1 million borrowers were receiving a median savings of $500 each month as of the end of April. Permanent modifications have been granted to more than 230,000 homeowners, and an additional 108,000 permanent modifications have been approved by servicers and are pending borrower acceptance. But still that is not enough, given the CoreLogic numbers.

"Housing is a long-term investment, and homeowners should just focus on making the next payment," says mortgage planner Dacey. "Don't worry about the market value. You will still owe money next month."

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.

How do reverse mortgages work?

As you grow older there are chances that you will be requiring more cash to meet your health expenses. So, will it be a good decision to take out a traditional mortgage and continue paying for it even after your retirement? Certainly not, you can opt for a reverse mortgage instead. The U.S. Department of Housing and Urban Development together with FHA or Federal Housing Authority introduced the Home Equity Conversion Mortgage (HECM) program. It is commonly known as reverse mortgage.

When can you opt for reverse mortgage?

You will be eligible for reverse mortgage in case you are 62 years and above. Your home should be your principal residence and you must be the owner of the same. There should be enough equity in your home that can help you qualify for the mortgage.

How does it work?

You take out a reverse mortgage against the equity that is trapped in your home. So, when you take out a reverse mortgage, you free up a part of the equity. You do not have to make payments as long as you are staying in your house. The reverse mortgage has to be paid back after your death. Payments should also be made if you move out of the primary residence.

The proceeds of reverse mortgage can be availed in the following manner –

• You can avail the proceeds in form of a lump sum
• In form of monthly payments
• As line of credit
• A combination of the above 3

How will you use the proceeds of reverse mortgage?

The proceeds of reverse mortgage can be used for paying taxes, for renovating your home, funding a vacation, paying for a family member's education or paying for medical expenses. You can use the cash for just about anything.

Recently, the HECM reverse mortgage home purchase program was introduced that allows a senior to take out a mortgage for the purchase of a new home. The new home is used as security. The reverse mortgage purchase program has just started and is yet to kick off in many states.

Although reverse mortgage has been there for more than 25 years, it has always been a consumer’s favorite. The main difference between a traditional mortgage and a reverse mortgage is while in traditional mortgage, equity in your property increases and debt decreases, it is different in reverse mortgage. In case of reverse mortgage, the equity decreases, debt increases.

Mike Riddle

IT LOOKS LIKE ONLY 65% OF THE PEOPLE THAT APPLY FOR A LOAN GET IT SO BEFORE YOU TRY FOR A FHA LOAN SEE IF YOUR BANK WILL MODIFICATION IT FRIST THE RATES ARE ABOUT THE SAME AND YOUR NOT ADD TO YOUR LOAN AND IT IS FREE TO DUE IT YOUR SELF. MOST OF THE BANKS WILL WORK WITH YOU AND YOU HAVE A BETTER CHANCE WITH YOUR SAME BANK.....NEED HELP EMAIL US AT MNR.SERVICES@YAHOO.COM OR GO TO THE LINK WWW.MNRCREDITREPAIR.COM FOR HELP....

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.

5/15/2009

As of now there is no new changes to FHA or VA has the banks got any better on lending? It will tack some time but it still the best to buy you frist home.

This is from MNRCREDITREPAIR.COM

4/10/2009

04/03/2009

This is the HUD national homeownership center reference guide mailing list for real estate industry professionals that are interested in updates to HUD Mortgagee letters, notices and guidebooks, & FHA Housing Industry Training. Please visit our homepage at: http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm Servicing lenders can visit HUD's National Servicing Center at: http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfm This list does not provide HudHome property listings.

All-

New FHA Mortgagee Letter:

April 2, 2009

Mortgagee Letter 2009-12

TO: ALL APPROVED MORTGAGEES

SUBJECT: Mortgagee Monitoring

FHA has always focused on the fundamentals of prudent underwriting and credit policies and has long held a commitment to strong program oversight and risk management.  FHA’s risk management practices encompass the entire process from lender approval to loan endorsement and servicing, including: Post Endorsement Technical Reviews, Appraiser Watch, Credit Watch Termination Initiative, Quality Assurance Lender Monitoring Reviews, Annual Lender Renewal and Audited Financial Statement Review...

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2009 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

AND

April 8, 2009 - Garden Grove, CA. FHA HECM Lender Training. This FREE session will provide you with in-depth training of the FHA HECM loan; the only reverse loan product that is insured by the federal government.  You will learn the entire loan process from origination to closing. Presented by HUD-FHA. Registration required, no fee. For more info: http://www.hud.gov/offices/hsg/sfh/events/sca040809.pdf

April 13-16, 2009 - Seattle WA. Fundamentals of Pre-Purchase, Predatory Lending & Post Purchase Homebuyer Counseling. Presented By National Council of La Raza & the National Consumer Law Center. Registration required, fee. For more info:  http://nhnla.org/index.cfm?fuseaction=Page.ViewPage&PageID=538

April 15, 2009 - Oklahoma City, OK. National Servicing Center presents training on SF Default Monitoring System (SFDMS) Reporting, FHA Connection, Credit Alert Interactive Voice Response System (CAIVRS), Mortgage Insurance Premium (MIP Portfolio Reconciliation), Tier Ranking System (TRS), and Rollout of Servicing Scorecard. Registration required, no fee. More information at: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

April 15, 2009 - Durango, CO. FREE training for non-profit Agencies that are interested in becoming a HUD-approved housing counseling agency. Course covers the entire application process and requirements. Registration required. More information at: http://www.hud.gov/event_registration/index_2.cfm?eventID=1413

April 22-23, 2009 – Chicago, IL. The NRMLA Road Show 2009: Boosting Your Business in an Uncertain Economy. Educational seminars for reverse mortgage professionals. Registration required, fee. More info at: http://www.nrmlaonline.org

May 6-7, 2009 – Orlando, FL. The NRMLA Road Show 2009: Boosting Your Business in an Uncertain Economy. Educational seminars for reverse mortgage professionals. Registration required, fee. More info at: http://www.nrmlaonline.org

June 10–12, 2009 - Boston, MA. Pre-Purchase II: Operational Guide for Managing a Housing Counseling Program. Presented By National Council of La Raza & the National Consumer Law Center. Registration required, fee. For more info: http://nhnla.org/index.cfm?fuseaction=Page.ViewPage&PageID=538

June 16-17, 2009 - Tulsa, OK. The Tulsa Branch of HUD's National Servicing Center (NSC) will provide servicing training for the Home Equity Conversion Mortgage (HECM) Servicers. Information. Registration Required by May 15, 2009. More information at: http://www.hud.gov/event_registration/index_2.cfm?eventID=1405

NeighborWorks® Place based training for Housing Counselors comes to FL, CA, CO, PA, & IL:

Dates & Locations:

June 8-12, 2009 Orlando, FL

June 22-26, 2009 Oakland, CA

July 20-24, 2009 Denver, CO

August 3-7, 2009 Philadelphia, PA

August 17-21, 2009 Chicago, IL (National Training Institute event)

Comprehensive training and certification for HUD-Approved agencies is available through NeighborWorks® America and the NeighborWorks® Center for Homeownership Education and Counseling (NCHEC) and the U.S. Department of Housing and Urban Development (HUD). Formats include live, interactive classroom training and on-line learning. Courses will include Home Equity Conversion Mortgages (HECM), FHA-Insured Loans, Foreclosure Counseling, Homeownership Counseling, Client & Data Management Software, Credit Counseling and much more! To find out more and register please email: nchec.hudtraining@nw.org or visit: http://www.nw.org/network/training/specialized2/place.asp

April 7-8, 2009 - Chicago, IL. Housing Counseling & Compliance Training. This training will provide essential information to Housing Counseling Agencies (HCA's) in Chicago and Indiana that are interested in becoming HUD certified & will offer tools & strategies to current HCA's on how to maintain their HUD certification. Registration required, no fee. For more information on this event, please visit: http://www.hud.gov/offices/hsg/sfh/events/ail040709.pdf

August 10–13, 2009 - Sacramento, CA. Pre-Purchase I: Fundamentals of Pre-Purchase Homebuyer Counseling & Predatory Lending. Presented By National Council of La Raza & the National Consumer Law Center. Registration required, fee. More information at: http://nhnla.org/index.cfm?fuseaction=Page.ViewPage&PageID=538

August 19-20, 2009 - Oklahoma City, OK. National Servicing Center Early Delinquency Servicing Activities and HUD's Loss Mitigation Program. This training is for HUD-approved mortgagees, HUD-approved Housing Counselors, and Nonprofit Housing Counselors. Registration required, no fee. More information at: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

Freddie Mac Alternatives to Foreclosure training for Housing Counselors live webinar:

Freddie Mac is pleased to announce that we have added additional sessions of our training offering - Alternatives to Foreclosure for Housing Counselors live webinar!  Now you can get the training you need without even leaving your office and, since this webinar is live, you will have the opportunity to ask questions.

Here is the schedule (please note: all times are Eastern):

Tuesday, May 5                -         02:00 to 03:30 p.m.
Tuesday, June 9                -        10:00 to 11:30 a.m.
Tuesday, July 14                -        02:00 to 03:30 p.m.
Tuesday, August 11                -   10:00 to 11:30 a.m.

This training offering provides housing counselors with an understanding about analyzing default situations to determine possible alternatives to foreclosure.  It has information about workout options (with an emphasis on short payoffs and mortgage modifications), applying Freddie Mac requirements and exploring options that can help keep borrowers in their homes or avoid foreclosure.  You do NOT need to be a CounselorMax user to attend this Alternatives to Foreclosure class.

Freddie Mac is pleased to extend this invitation to you.  Below is the link to Freddie Mac’s website with all the information.  Simply click on the link for the Alternatives to Foreclosure for Housing Counseling Web session, click on the "Course Availability" button at the bottom of the page and follow the instructions on the next page to register online.  Click the Register button on the line for the date you would like to attend.  Be sure to follow this step > on the Customer Verification page, select the All other registrants (prepayment required) link.  There will be no charge.  

http://www.freddiemac.com/ontrack/html/LearningCenter/CourseAvailability.jsp?crsNum=ATFHC_Web

There are a limited number of seats for these classes so sign up soon!  If you do register and find that you cannot go, please let me know immediately so that people on the waitlist have an opportunity to attend.

National Council of La Raza presents on-line webinar training for housing counselors. Visit their website for a schedule of upcoming courses. More info at: http://nhnla.org/index.cfm?fuseaction=Page.ViewPage&PageID=538

Online FHA Processing Training Class for Mortgage Processors, Underwriters & Originators. Sponsored by the IRC. Live, instructor led online FHA training classes to students nationwide. Registration required, fee. More info at: http://www.fha-training.org/

NeighborWorks^® Training Institute conducts frequent training workshops around the nation for non-profit housing professionals. Scholarships are available on a limited basis for qualified non-profit agencies. More info at: http://nw.org/network/training/training.asp

The Illinois Mortgage Bankers Association (IMBA) conducts frequent training workshops for mortgage professionals on FHA subjects. Visit their website for a calendar of upcoming training opportunities. More info at: http://www.imba.org/i4a/pages/index.cfm?pageid=1

Live & Online FHA Mortgage Training Classes for Mortgage Professionals nationwide. Sponsored by Dekalb Metro Housing Counseling Center. Visit them on-line for more info. Fee. More info at: http://www.dekalbmetrohousing.org/

The Illinois Association of Mortgage Professionals has frequent training courses for mortgage industry professionals. Visit their website for more information. Fee. More info at: http://www.iamp.biz/educationregistrationforms.asp

For more information on, and to register for these training opportunities please visit: http://www.hud.gov/offices/hsg/sfh/events/events

NEW UP DATES AS OF 03/02/2009

AS OF 3/01/2009 CREDIT SCORES FOR FHA MIDDLE CREDIT SCORE IS NOW 620 FOR ANY FHA AND VA LOANS MOST LENDERS ARE NOW ONLY TACKING PEOPLE WITH 620 AND HIGHER LOOK FOR MORE CHANGES COMING SOON FHA NOW WILL ONLY DO A 85% CASH OUT REFI AS BEFORE WAS 90% RATE AND TERM IS STILL 96.5% BUT COULD CHANGE SOON .

New Up Dates as of 02/16/2009

Most banks doning FHA Loans now need a mid credit score of 600 and some are only doning 620 mid score ,Now credit is part of FHA as of the past credit had not played a part with FHA or VA loans .

Believe it or not, employers do care about your credit score. Like your rental application, a signed job application may give your prospective employer the right to examine the state of your credit, Houghton explains. Your potential employer may use your credit score to help them determine your ability to be a responsible and trustworthy employee. If you have a major blip in managing your own finances, it can be hard to earn the confidence of an employer

Whenever you're applying for health, life, or auto insurance, you're told to read the fine print -- but do you? As Houghton says, "You guessed it -- somewhere in that insurance application's fine print may be the right for them to pull your credit report." Credit is poorly impacted when bill payments aren't made on time and you keep large balances on your credit cards. According to Houghton, several studies have linked poor credit with higher and more numerous insurance claims. Insurance companies don't want to lose money -- if you're not a safe bet for them, they'll find someone who is.

The bottom line is this -- your credit score affects much more than your ability to get approved for a mortgage. Being smart about spending, responsible about bill-paying, and monitoring your credit score are valuable ways to secure your financial present and future. Working to maintain your good credit from the moment you apply for your first credit card is of great importance. But if your score does become stained, Houghton advises patience as you repair the damage. "Good credit is built over years. There is no magic bullet."

KNOW YOUR CREDIT AND HOW TO FIX YOUR CREDIT

Contrary to what you might see in some advertisements, there is no magic way to raise your credit score. That doesn't mean you can't improve your score with good old-fashioned attention and effort. All you need to do is see to it that errors are removed, deal with any disputes with your creditors that are resulting in a reduction in your score and -- for most people -- improve your payment history and lower your debt.

Easier said than done, right? Here I give you the six steps to a higher credit score. Your score won't jump overnight, but you should see steady improvement over time if you follow my advice
The first step to a higher credit score is to order your credit report, which is the roadmap used to calculate that score. It's like a snapshot in time of your financial and personal life on a particular day. It should factually reflect your outstanding credit, your payment history, the status of your credit accounts, and any information that can be found in public records.

You can request one by visiting www.annualcreditreport.com or calling one of the three main credit reporting agencies: Equifax, Experian, and TransUnion. You are entitled to one free report a year.

When you get your report, first, check your personal information (name, addresses, job history), to make sure your file hasn't been merged with someone else. Then check the accounts listed. You may find one listed more than once or one that is not yours included in the report.

If you discover any mistakes, send a written letter to the credit bureau listing what is wrong with the information on the credit report and how you think it should be corrected. The agency has 30 days to respond to your letter and indicate how it will handle your challenges to the report. If the error was simple, that may be all you need to do to take care of it.

NEW FOR FEB-01-2009

Our friend Suzanne dialed her mortgage broker as soon as she got to the office, trying to lock in a 4.6% rate on a 30-year fixed rate mortgage. And she wasn’t the only one: with the Federal Reserve cutting rates to historic, thirty-year lows, there’s been a rush to refinance. In the last months of 2008, consumers rushed to refinance homes, causing an increase of 224 percent in applications.