I am hearing that new counties may be added to lenders & MI companies declining market lists. This means All agency loans will get a 5% LTV reduction. Inform high LTV borrowers (over 90 LTV) to LOCK or they may not be able to get a loan; Period.
Counties currently considered declining by some lenders & MI companies:
Nassau
Suffolk
Orange
Dutchess
Counties currently under scrutiny: Bronx
Herkimer
Kings Madison
New York
Oneida
Onondaga
Oswego
Putnam
Queens
Richmond
Rockland
Tompkins
Westchester
The Housing and Economic Recovery Act of 2008 goes into effect on October 1, 2008. As part of this Act, Congress placed a one year moratorium on risk based mortgage insurance premiums on FHA loans.
Under the risk based premium structure that HUD put into effect on July 14, 2008, borrowers with better credit and lower loan to value mortgages are able to pay lower rates while riskier loans carry higher insurance rates. A perfectly sensible system that FHA statistics show may actually be a major benefit to lower income borrowers since this members of this group with FHA loans have been shown to have higher credit scores on FHA loans.
As part of what may be a little bit of political gamesmanship on the part of HUD, HUD has just announced a new mortgage insurance premium structure to take effect on October 1, 2008. Here are the details:
Upfront Mortgage Insurance Premiums
Annual Insurance Premiums (paid monthly)
These premium changes apply to the folllowing FHA loan programs: 203b (standard 1-4 unit property), 203k (rehab loan), and 234c (condominiums) but they do not apply to FHA reverse mortgages.
Mortgages with FHA case number assignments made on July 14, 2008, through and including September 30,2008, shall maintain the risk-based premium structure for the life of the mortgage.
HUD promises to let us know what they plan to do at the end of the moratorium, but keep your eye on the legislation being pushed that restores seller paid down payment assistance programs. This legislation includes risk based mortgage insurance premiums.
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Independent mortgage brokers have had a significant positive impact on the lending industry. Over 50% of the mortgages in the US are originated by brokers. Today, the use of a professional mortgage broker is one of the key strategies used by sophisticated borrowers. Myth = It costs more to get a mortgage through a broker. It does not cost more to get a mortgage through a broker than it does a banker. It can actually cost less. Brokers originate loans at wholesale rates and are paid by the lender while providing the borrower the same competitive rates and fees as a bank. Benefits of using a Mortgage Broker!
What is a Mortgage Broker? A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with as many as 100 lenders at any one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals. What Do Mortgage Brokers Do? In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker's most important functions is escorting your loan application through the entire process, constantly patrolling the transaction components for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options. Brokers Handle the Details! There are literally thousands of variables that can affect the outcome of your mortgage transaction. That's why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction. A mortgage broker also:
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I have been in industry over 12 years. I deal with over 300 investors from residential to commercial, sub-prime to conforming. I do free credit evaulations and pre approvals. 106% financing purchases
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