Brentwood TN Real Estate/Homes - Vanessa Stalets REALTOR®

The following mortgage insurance companies have issued bulletins announcing a number of eligibility changes going into effect soon.
United Guaranty: Effective March 10^th the following changes will go into effect:

• DU Expanded Approval Level I and LP Caution 500 Eligible loans with LTV > 95% will be ineligible
• Pay Option ARM’s with potential negative amortization will be ineligible
• Non Traditional Credit with LTV > 95% will be ineligible
• ARMs with first rate adjustment less than 5 years max 95% LTV
• Does not apply to loans receiving DU Approve/Eligible or LP Accept/Eligible
• Limited Doc loans:
• must have at least 50% of the qualifying income from self-employment. All non-self-employed income used for qualifying must be documented.
• SIVA and SISA with LTV > 90% will be ineligible
• SIVA minimum FICO 680 for 2 units
• SISA minimum FICO 700 for 2 units
• Cash out refinances will be ineligible
• ARMs with first rate adjustment less than 5 years are ineligible
• Limited documentation that does not require disclosure of income and/or assets is ineligible (i.e. No Ratio, NINA, No Doc)

AUS Doc waiver loans that meet the following are not subject to these policy changes:

• Borrower is applying for full doc loan
• Loan is underwritten by DU/LP and receives either an Approve/Eligible or Accept/Eligible
• Findings do not require income and/or asset documentation

· Loans that do not use lowest score of all representative borrower scores are ineligible.

· Maximum of two loans insured per borrower, with only one insured per borrower of the following:

• Primary
• 2^nd home
• NOO
• A-miunus
• Limited Doc

• Interest-Only:
• maximum LTV 95%
• Minimum 680 FICO
• 2^nd homes are not eligible
• 3-4 units are not eligible
• These changes do not apply to loans receiving DU Approve/Eligible or LP Accept/Eligible

· A-minus:

• Max 95% LTV for purchase and rate term refinance of 1 unit, primary residence
• Minimum first rate adjustment of 3 years for ARMs
• 2^nd home ineligible
• NOO ineligible
• 3-4 units ineligible
• These changes apply to all loans including DU Expanded Approval Level I, II or III, and LP Caution 500-Eligible

Effective March 31^st, some rate fees will be increased including but not limited to:

Monthly ReadiRates

Selected adders for loans > 95.01% LTV

Limited Doc

A-minus monthly

RMIC: Effective March 21^st the following changes will apply regardless of any Automated Underwriting System (AUS) decision or recommendation.

• A Paper and A-Minus:

Loans with a FICO score below 620 will be ineligible.

Loans with a loan to value ratio (LTV/CLTV) over 95% and a representative FICO score below 680 will be ineligible.

Cash-out refinance loans with representative FICO scores below 680 will no longer be eligible.

Cash-out refinances will no longer be eligible.

A-Minus loans with representative FICO scores below 660 will no longer be eligible.

Declining Value:

• In addition to loans which receive a declining value message from an automated underwriting system (AUS) such as Desktop Underwriter or loans on properties for which the appraisal indicates that property values in the subject neighborhood are "declining" being subject to Declining Value Policy guidelines and eligibility requirements, all properties in the states of AZ, CA, FL, MI, NV and OH must meet these requirements.

In addition to the maximum allowable LTV/CLTV on declining value properties requiring a five percent reduction from the LTV/CLTV otherwise allowed by RMIC's underwriting guidelines, the following guidelines and eligibility requirements will also apply:

A-Minus loans, Investment Properties, Cash-Out Refinances, and loans with Reduced Documentation on declining value properties are not eligible for RMIC coverage.

LPMIpreferred pricing will require a minimum representative FICO score of 720 on declining value properties.

Loans secured by condominiums determined to be of declining value will be limited to a maximum LTV of 90%, except where the LTV is limited to less than 90% by other factors

• A Paper Monthlies/ZIP Monthlies base rates for loans with LTVs over 95% will be split into two segments: 95.01-97.00% and 97.01-100.00% LTV. Each of these LTV bands will be segmented by two FICO score ranges: 680-699 and 700+. The table below shows selected new A Paper premium rates.

GE: Effective March 17^th the following changes will go into effect:

• Standard A Loans:

• Loans with LTV > 95% and a credit score < 680 will be ineligible.
• Loans with LTV < 95% and a credit score < 620 will be ineligible.
• Cash out refinances with a credit score < 680 will be ineligible.
• The 103% LTV product will no longer be available as a standard product.

• A Minus Loans:
• EA II, EA III, Refer w/ Caution, and Refer w/ Caution IV will be ineligible.
• All A Minus loans with a credit score < 660 will be ineligible.
• Cash out refinances will be ineligible.
• Manufactured homes will be ineligible.

Nontraditional Credit or Unscoreable maximum LTV will be 95%.

Update to Declining/Distressed Markets Policy:

• For properties located in Declining/Distressed markets (as indicated by Genworth’s Declining/Distressed Market Policy, the Appraisal, or Agency AUS indication) the following loan characteristics will be ineligible:

LTV/CLTV > 95%

A Minus

Alt A

Investment properties

Cash out

Interest only

Nontraditional credit

Condominiums with LTV >90%

• As per Genworths Declining/Distressed Market List as of January 6, 2008, the following MSAs are considered Declining/Distressed:

19740 Denver-Aurora, CO Metropolitan Statistical Area Principal Cities: Denver, Aurora Adams County, Arapahoe County, Broomfield County*, Clear Creek County, Denver County, Douglas County, Elbert County, Gilpin County, Jefferson County, Park County

*Broomfield organized as a new county on November 15, 2001

and is coextensive with Broomfield city. For purposes of

defining metropolitan statistical areas, Broomfield city was

treated as if it were a county at the time of the 2000 census;

the standards were applied to data for Broomfield city.

24540 Greeley, CO Metropolitan Statistical Area Principal City: Greeley, Weld County

PMI: Effective March 21^st the following changes will go into effect:

• Loans with LTV and/or CLTV ratios of 97.01% and above, regardless of the automated underwriting system (AUS) decision, are not eligible
• DU Expanded Approval Level I (EA I) AUS recommendations for LTV/CLTV ratios of 95.01% and above are not eligible.
• Limited Documentation: at least 50% of the total qualifying income will need to come from non-salaried sources.
• Distressed Markets:
• 5% LTV/CLTV reduction will be required from the maximum financing allowed for all loan products/programs, not to exceed 90% LTV/CLTV

• Pay options ARMs and A-Minus (FICO scores 575-619) loans for properties in distressed markets are not eligible for mortgage insurance.

Distressed Markets are defined as (1) specific geographic areas where

property values are declining or are likely to decline; and (2) specific

geographic areas where property values are being influenced by

foreclosures and unemployment rates, among other factors.

This policy applies when the following indicators are present:

• The appraisal report indicates declining values; or
• A declining market message from an AUS system is received; or
• A lenders independent research reveals that the subject property is located in a declining market; or
• The subject property is located in an MSA/MSAD on the PMI Distressed Markets List

*Information courtesy Tonya Esquibel, WR Starkey Mortgage,Franklin Tn*

Stay tuned for updates.

Vanessa Stalets
Brentwood TN Real Estate

RE/MAX Elite
615-957-6333
615-661-4400

Brentwood TN Real Estate

Never seen a total lunar eclipse? Then look up tonight about 8:45 CST. The partial eclipse will start around 7:30 pm. The entire event will be over by 11 or so and if you miss it it will not come again until December 2010. If the skies are clear you could see varying colors from orange, red, brown or drk gray. Grab the kids and show them too! If you would like to see it clearer, make a family night of it and visit the
Adventure Science Center Nashville located off I-65 just North of Brentwood.

Vanessa Stalets

Brentwood TN Real Estate

RE/MAX Elite
615-957-6333
615-661-4400

Notice the above 90 day rate history chart. RED is RATES MOVING HIGHER and GREEN is IMPROVEMENT.
So as you can see rates on most programs have moved almost .50% higher. Therefore, buyers looking and not locking a week ago will have significantly higher rates today. Tomorrow strong reports are coming out, we are hoping they are in our favor to turn the bond market back around.
* Information courtesy Tonya Esquibel, WR Starkey, Franklin TN*

Vanessa Stalets

Brentwood TN Real Estate

RE/MAX Elite
615-957-6333
615-661-4400

Brentwood TN Real Estate

Mortgage bond prices fell last week pushing mortgage interest rates significantly higher. Stock strength the beginning of the week hurt mortgage bonds. Stronger than expected retail sales, shocked the market. The weakness was compounded as investor concerns about exposure to mortgage bond risk grew. Fed Chairman Bernanke expressed concerns about economic growth but his remarks did little to help mortgage bonds.

For the week, interest rates on government and conventional loans rose by about 1 and 3/4 of a discount point.

The consumer price index data Wednesday will be the most important event this week. The Fed minutes, housing starts, and leading economic indicators also have the real potential to cause mortgage interest rate volatility. Be cautious Tuesday as trading resumes following the holiday.

Economic Factors

Economic Indicator Release Date Time Consensus Estimate Analysis Presidents Day Monday, Feb. 18, 2008 None Important. Shortened trading week may lead to mortgage interest rate volatility as trading resumes.

Consumer Price Index Wednesday, Feb. 20, 2008 Up 0.3%, Core up 0.2% Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.

Housing Starts Wednesday, Feb. 20, 2008 Down 0.5% Important. A measure of housing sector strength. Larger than expected decreases may lead to lower rates.

Fed Minutes Wednesday, Feb. 20, 2008 None Important. Details of the last Fed meeting will be thoroughly analyzed.

Leading Economic Indicators Thursday, Feb. 21, 2008 Down 0.1% Important. An indication of future economic activity. Weakness may lead to lower rates.

Philadelphia Fed Survey Thursday, Feb. 21, 2008 None Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

HR 5140

President Bush signed into law last week a $152 billion economic stimulus bill that will temporarily allow Fannie Mae, Freddie Mac, and the Federal Housing Administration to guarantee mortgages as large as $729,750 in some high-cost markets.

HR 5140, the Economic Stimulus Act of 2008, raises the conforming loan limit for mortgages eligible for purchase or guarantee by Fannie and Freddie to 125 percent of the median home price in high-cost areas, not to exceed $729,750. In areas not designated as high-cost markets, the conforming loan limit will remain $417,000.

The stimulus bill also increases the upper limit for FHA loan guarantee programs in high-cost markets -- currently $372,790 -- to 125 percent of the median home price, with an upper limit of $729,750. The upper limit for FHA-backed mortgages in "normal" housing markets will be increased from $200,160 to $271,050.

Federal regulators have said it will take longer for Fannie and Freddie to draft new credit guidelines and update their systems to evaluate what are now considered "jumbo" loans. The task is complicated by the fact that the new loan limits for high-cost areas will vary according to the median home price in a given county or metropolitan statistical area (MSA).

While HR 5140 is an effort to help the struggling housing market, there is no guarantee investors will accept the jumbo loans backed by Fannie and Freddie. If investors don't purchase the larger loans after they are securitized, that would limit the benefits to the secondary mortgage market and do less to ease the credit crunch than backers of the move have hoped. Mortgage interest rates remain volatile amid all the uncertainty.
* Information Courtesy Tonya Esquibel, WR Starkey Mortgage, Franklin TN*

Vanessa Stalets

Brentwood TN Real Estate

RE/MAX Elite
615-957-6333
615-661-4400

Brentwood TN Real Estate

Today I received a voice mail from a buyer out of state interested in Brentwood TN property and asking me to return his call. I missed the call because I was on the other line with a client, but within 20 minutes or less I was calling him back. We had gotten some of the basics out of the way when he said that several of the agents he had spoken with did not seem very interested in helping him. Why? Because he was not 100% sure TN was the place for him and if it is it will be 6months or more before he would be ready to purchase. That surprised me a bit as I am always up for establishing client relationships regardless. I asked him how he found me and he told me he did a Google search on Brentwood TN and I was there. I recently moved to page 1 for my search criteria and was very pleased to hear that it is working, but knowing there are several big agents on that same page above me, I asked whom he had spoken too. He named another agent and I recognized the name as one I have heard and seen often. Then this buyer proceeded to shock me. He said that when he called this agent he was told the agent was busy on a specified personal errand and they would get back to him. They never did. No search results sent, nothing! What??!! Ok so this buyer may not end up moving here but he sure sounded interested to me and I talked to him for about 25 minutes maybe. A cash buyer with interest in Brentwood gets a return call and MLS listing emailed, a drip started etc, no matter what their time frame is. I just closed a $600,000 home for buyers I first started talking to 1 1/2 yrs ago!

Are there really agents here so busy that they turn away clients or so lazy that they just don't bother? Not knowing the other agents side I can only hope it was a simple case of memory loss and oversight. This is why I carry a pad of paper and a pen every blessed where I go, so I can write it down and get it done. I always, always email searches within hours, every time! I make the time. Responsiveness is critical, especially in a slower market. Like they say, "you never get a second chance to make a first impression" Personally I hope that even if I ever get busy enough to turn down clients (I really cannot see that but who knows..)I hope I always follow the simple rule of consideration. Stand out in the crowd, give exemplary service right off the bat.

Call, email, follow up! Let people know they matter, that is what makes a possible buyer into a client!

Vanessa Stalets

Brentwood TN Real Estate

Re/MAX Elite
615-957-6333
615-661-4400