MELINDA POTCHER

Daily Real Estate News | August 19, 2008

Campaign Launched to Undo Down Payment Ban

The Housing and Economic Recovery Act prohibits the Federal Housing Administration from insuring loans made with a seller-funded down payment. This essentially bans the practice since nearly all these loans are made with FHA-guaranteed financing. The ban takes effect Oct. 1, 2008.

The Nehemiah Corp. of America, the nonprofit responsible for arranging thousands of these loans, has launched a campaign and Web site to persuade Congress to override this aspect of the housing bill. The site includes a countdown clock tracking the end of DPA to the second, a blog and links to YouTube videos and to its MySpace and Facebook presence.

So far, more than 75,000 "letters" to Congress have been generated, according to Nehemiah. The goal is to triple or quadruple that by the time that countdown clock hits zero. Lifting the ban won't be easy, but "I think that an active, organized American citizenry can change anything they choose to," says Scott Syphax, Nehemiah's president and CEO.

Source: The Wall Street Journal, Dawn Wotapka (08/14/08)

To speak w/ a Professional with over 14 years experience about your options in Purchasing Real Estate, Call Melinda Potcher, Mortgage Maven today! (505) 259-6397, or email at; Melinda@TrinityMtg.Biz. http://www.HomeLoansAlbuquerque.com

Effective for all registrations after Friday, April 4th, another lender is eliminating the Agency Shortcut Mortgage program.


All Agency Shortcut mortgages must be registered no later than Friday, April 4th. We will not accept any registrations on the Shortcut program after this date. There is no lock cut off date as of yet, however all Agency Shortcut Mortgages must close and fund no later than April 30th. No relocks or extensions will be granted.



As an alternative to the Shortcut, I've included a couple of options to consider:

1) Agency "Limited Doc" -Best pricing: Borrower's who have at least a 680 middle credit score, may receive a "verbal VOE (verification of employment) only" or "evidence of existence of business only" option when running DU (desktop underwriter) or LP (loan prospector). WE will honor these findings, and will NOT require income documenation, since these loans are still considered full doc in the investor's eyes. If your borrower has at least a 680 score and they need a "limited doc" option, we recommend running DU or LP to determine if your customer is eligible.



2) Agency Express - Stated income/Verified Assets. Manual underwrite. Self employed borrowers or borrowers who's earnings consist of at least 50% commission can qualify on this program. All occupancy types are eligible. Cash out (O/O (owner occupied), 2nd home only), Rate & term refinance and Purchase. LTV's (loan to value) up to 90%. Fico credit score requirement 680 -720 depending on transaction type and LTV. Contact me for further info.


www.HomeLoansAlbuquerque.com

melinda@trinitymtg.biz

FHA Product Updates

Effective for all FHA loans registered and/or locked after today, Friday, March 28, minimum FICO scores will apply in all instances regardless of AUS (Automated Underwriting System) decision. Extensions will not be granted.

See the chart below for minimum FICO score requirements for all AUS FHA loans*.

Transaction Type

Minimum FICO

Purchase & R/T Refinance

580

Cash-out Refinance LTV < 85%

580

Cash-out Refinance LTV > 85%

600

Streamline Refinance

580

*

ALL LOANS THAT WILL BE AFFECTED BY THESE CHANGES MUST BE LOCKED IN NO LATER THAN FRIDAY, MARCH 21, 2008. NO EXTENSIONS OR RELOCKS WILL BE GRANTED

IMPORTANT INFORMATION REGARDING UPCOMING AGENCY UPDATES - Elimination of LTVs 97.01-100%, Revised Minimum Credit Score Requirements and Cash-Out Refinance Eligibility for Transactions Requiring Mortgage Insurance

Due to continued mortgage insurance (MI) company product eligibility pull backs, we must implement the changes outlined below for our conventional Agency loan programs. These changes will be effective for locks on or after Friday, March 21, 2008. All loans that are locked PRIOR to March 21, 2008 will be honored; however, must be closed and funded by their original lock expiration dates. Please review your pipeline carefully to confirm if they are any loans that need to be reviewed and submitted to a MI company for MI commitment. Please note the commitment is based on the data submitted so in all cases please confirm accuracy of the information PRIOR to requesting MI. Lock-in extensions and re-locks will NOT be granted.

* The maximum allowable LTV will be reduced to 97%, regardless of the AUS approval As a result, the Fannie Mae Flexible 100, MyCommunity 100 and Teacher, HealthCare Worker & Safety 1st 100 loan programs are being eliminated.

* For all traditionally underwritten, DU "Approve/Eligible" and LP "Accept/Eligible" cash-out refinance transactions, a minimum 680 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

* For all traditionally underwritten and AUS (DU and LP) processed investment property transactions, a minimum 660 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

UPDATES TO THE PORTFOLIO LIBOR ARMS AND KEY JUMBO LOAN PROGRAMS - Incorporation of Previously Announced Updates and Miscellaneous Clarifications

The Portfolio LIBOR ARMs and Key Jumbo product descriptions are being been revised to incorporate the following updates and clarifications:

* elimination of the primary wage earner's credit score for credit and pricing qualification,

* elimination of the Interest Only feature for all 3-4 unit properties,

* increase in the minimum credit score requirement and decrease in maximum cash-out at certain LTV/TLTV loan amount combinations on primary residence cash-out refinance transactions and second home transactions,

* elimination of the 85% LTV on second home cash-out transactions,

* clarification that if the borrower owns their residence free and clear, a twelve (12) month verification of mortgage is not required, and

* clarification regarding the qualifying rate for transactions with trailing co-borrower income under the Portfolio LIBOR ARMs loan program.