Jay Beckingham

These days I just keep hearing Bowie over and over and over.

Ch-Ch-Ch-Changes, Turn and face the strain, Ch-Ch-Ch-Changes

In about a little over a month FNMA is scheduled to release Desktop Underwriter 8.0.

I'm just soooooo excited!

Why you may ask? What's the BIG deal?

Well here you are.

The maximum allowable total expense ratio in DU will be revised to 45%, with flexibilities to 50% for certain loan cases with strong compensating factors. Deals exceeding the ratio will be given an ineligible.

Just a couple of thoughts which immedikately come to mind;

I used to feel I had a real good handle on what an Underwriter would consider as a compensating factor, but i don't necessarily feel so confident these days. Yesterdays compensating factor may not be accepted today.

They are now effected by mood swings, the location of the planets, things like that!

Fewer buyers will qualify under the new guidelines!

Get em while they're hot! Today's buyers may be looking at less house next month. That may make them very unhappy.

Watch out for this one!

Buyers currently preapproved may no longer be able to exercise their current preapproval.

If you didn't like preapproval letters before, you may like them less next month.

Check the date on the preapproval letter!

Now let's look at the BIG picture!

From a lenders standpoint the changes are prudent, responsible, and should have been implemented sooner.

Just my opinion? I don't think so.

Well let's get ready for this now, as it'll be upon us before we realize it. Those buyers who just must have the home that they will no longer qualify for need to enter into contract now and close in a timely fashion.

Look out! those sneaky lenders are apt to start making these type of changes now, in anticipation of Fannie's doing so.

Maybe Bowie shouldn't get all the glory, how about Bobbie Dylan,

"and the times they are a changin"

Yes they are and;

A BIG ONE's comin our way!

The Senate has passed an extension, which is attached to the unemployment extension bill.

It now moves to the House!

Here it must be reconciled with a House bill, previously passed. Rumor has it that they like the Senate's version better.

Then it can go to the floor for a vote, possibly tomorrow.

If passed, which it should, it moves on to the Prez, who is expected to sign the bill.

Stay Tuned!

As an additional tasty tibit let's move over to the

Fraudulent Side.

CNN reports;

Some 74,000 people claimed more than $500 million in credits even though they may not be first time homebuyers, according to Treasury Officials.

And, get ready for this, this is special;

More than 580 children, including some as young as 4 years old, have claimed the cr

YOU'VE GOT TO BE KIDDING ME!!!

I couldn't help but wonder, being the sick little puppy that I can be sometimes;

What about the deceased claimants? There's got to be some, don't ya think?

They must not have found them yet.

Well just for the record, please remember,

They're not done yet!

Ammended 11/06/2009

They're Done Now!

The new provision may be a little confusing for existing homeowners, or previous homeowners who do qualify for a lessor benefit, not all will.

And, as before, the $8,000 credit for first time homebuyers, may actually not be $8,000.

That's it, it's done.

Ta Ta for now.

Well, will ya?

How about another question,

Do you have the will to succeeed in 2010?

by definition, Webster's style;

will 1. wish; desire 2. strong purpose 3. power of choice 4. attitude

Let me make a very strong suggestion to start off with;

Forgive yourself for everything that you have done in the past!

Forgive yourself for what didn't work, for that which you didn't try, for the mistakes that you may have made, everything.

Forgive yourself; clean slate, go forward!

So where do you start?

According to Chris Gardner, the author of "The Pursuit of Happyness,"

"Start Where You Are"

That's his new book, and quite frankly where else can you start from? If you have any familarity with his story you know that he got knocked on his butt, got up, and did quite well for himself. For most of us we're not starting off quite that bad, but some may be. Just remember, anything's possible if you have the will to succeeed.

Do you have clearly defined written goals?

Despite the fact that over and over again studies tell us that the most successful business people have "clearly defined written goals," most of us ignore this. Why? Why? Why? I don't know. Is it we don't want to be held accountable? Writing things down seems to do this.

The Power of Choice!

You will choose to succeed, or not. Sounds pretty simple, doesn't it. Make each and every choice wisely.

Finally, determine what success means to YOU, not what it means to someone else. How can you achieve it, if you haven't defined it.

So,

Will you succeed in 2010?

It's up to YOU!!!

GO FOR IT!!!!!

Okay we know that just having a pulse doesn't work any more. And we know that the programs are no longer tailor made to meet evey applicants individual needs. BUT;

What are the guidelines now, anyway?

Conventional;

We still have Fannie Mae and Freddie Mac guidelines as a basis, and we still use automated approvals as an approval basis, but they don't stand alone as approval criteria anymore. Now we also have guidelines which are established by and enforced by the individual lenders. Company policies, so to speak. A Loan Officer or Underwriter may state that, that's a Fannie Mae guideline, but that may often not be the case.

Also, in many cases we have guidelines/requirements attached to our warehouse lines. A warehouse line is used to fund a loan, while it is waiting to be sold. Because some companies failed, and still had millions on their warehouse lines, the warehouse lenders put on additional restrictions, so they would be could be sold, in the event that the warehouse lender was stuck with the loan.

The adding of guidelines is often referred to as layering and varies from one entity to another. In my opinion, this practice of, and by itself supports the need for more sources, such as mortgage brokers, to sift through the layering and identify a lending source that fits, or feels comfortable with a buyers needs.

Government;

FHA, VA, USDA/RD are all govern(mental) lending systems and as such you would think that they would be more consistent. You would be thinking wrong.

They do all offer a low and/or no downpayment option, which is greatly needed in todays market.

They do have different ways of looking at the property, which in my market specifically, has played an important role. We've had a lot of foreclosures, so on an FHA loan look out for;

Flipping

There will be no FHA loan in most cases unless the property has been held for 90 days. Then we need two appraisals up to 120 days.

For whatever reason VA and USDA/RD do not have that guideline. Why not? You figure it out, because I don't know.

What about their other guidelines? Let me sum it up as nicely and as simply as possible.

The govern(mental) guidelines are whatever the underwriter says they are!

That's it in a nutshell!

Is it consistent? No. Fair? No. Insane? Maybe (yes came close as an answer).

So when I'm asked;

What are the guidelines, anyway?

Sometimes the proper answer is;

I'm not sure!

What's up with this!

Don't these buyers know the economy is in the toilet.

Don't they have accountants?

Where's the $$$$$ coming from?

Stopped in to see the "bus driver" today. Lots of sales, mostly cash, probably as high as 95%. The team mostly solicites $$$$$ buyers. Well as a Loan Officer I think that, well mom told me not to talk like that or she'd wash my mouth out with soap.

I can't help mentioning having seen a lot of writings about teams, that the Lagace-Whitt Team may be a good prototype. Small, professional, firing on all cylinders. You just don't need 10-15 people to have a successful team.

Susan Milner, at Florida Future Realty, agrees Cash is King!

I've been involved in this marketplace for over 15 years and cash has always been a part of our market, but never to this extent, that I can remember. The market needed a boost and this certainly is accomplishing that.

Also this should help our appraisal situation by providing real comperable sales that are closer to where the market truly is?

But, what about me?

Well just send me some cheese to go along with the w(h)ining.

But I can't help asking as this trend continues;

What's a poor olde Loan Officer suppose to do?