The housing and mortgage industries have seen a surge in demand for rural homes since the COVID pandemic, according to Fannie Mae research. The main factor helping increase rural housing demand was the opportunity many were given to work remotely. Demand for space and low mortgage rates also contributed, though those trends bolstered home buying in all areas in the immediate aftermath of the pandemic.
A Fannie Mae survey of mortgage executives shows wide support for standardizing and simplifying the language around closing costs and fees. The survey of senior mortgage executives, conducted in July, found that 60 percent of respondents said closing costs are easy to estimate, and 50 percent said they are easy to explain.
More data released so far this month has reinforced the trend that mortgage processors and underwriters have been keeping busy lately with home refinance loans. Optimal Blue, a mortgage analytics provider, reported a surge in refinance volume in its September Mortgage Data Report.
A group of Democrat U.S. senators expressed a lack of patience with the Federal Housing Finance Agency (FHFA) in implementing updated energy standards for new homes backed by the government sponsored enterprises (GSEs). The seven senators sent a letter to FHFA Director Sandra Thompson last week urging the agency to set minimum standards, a move that has been debated for much of the past year.
While escalating home values have made buying more challenging for many consumers, they have had one major benefit: home equity. And, according to the latest CoreLogic Homeowner Equity Insights report, the average U.S. mortgagee increased their home equity by $25,000 in the last year. CoreLogic analysis shows U.S. homeowners with mortgages (roughly 62 percent of all properties) have seen their equity increase by a total of $1.3 trillion since the second quarter of 2023.
I have recently had some questions regarding maximum Loan to Value guidelines where FHA cash out refinances are concerned. It seems that most people believe that 95% is the rule regardless of the loan parameters so I thought today would be a good day to set the record straight.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As FHA volume has increased (ours to about 90% of total originations), there seems to be more and more games being played with FHA Connection, particularly where wholesale originations are concerned.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As we have seen the end of seller funding down payment assistance, I thought today would be a good day to discuss other available grant programs that might be of use to potential borrowers. Based on what I have found, most appear to be geared to first time homebuyers, which seems to be where the greatest need it.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
It’s here all, the Hope for Homeownership program. Mortgagee letter 2008-29 issued October 1, 2008 has set forth all of the guidance that we as lenders need in order to successfully administer this program. Please do not confuse it as an extension to FHA Secure because it is definitely not.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As we see a shift towards a more conservative attitude towards mortgage lending, not to mention a greater involvement of federal agencies, I thought today would be a good time to talk compliance. For those of us who grew up originating, processing and underwriting for banks and thrifts, compliance is second nature, something you handle when requesting a 2nd pay stub from the borrower.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As we are all aware, FHA has seen many changes this year regarding the overall program. Much of these changes were implemented to assist with the ongoing housing crisis and have actually been quite effective, however, the overall changes to the program have not been designed to elevate the newest credit crunch, but to revamp the overall program.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
It’s frustrating out there in the industry right now because there is so much sloppy FHA processing being submitted. Sloppy file processing leads to denials, suspenses and loads of conditions that eat up underwriting time and worsen turn times for all of us. Most importantly, it’s frustrating for the borrowers and realtors who have deadlines to meet!
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
One of the most common questions I am asked about FHA lending is if monthly mortgage insurance is required for loans with less than 80% loan-to-value ratio. I am also commonly asked about the up front MIP and if it is required for all circumstances. Let’s take a look at FHA’s mortgage insurance.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
I had a great question come in yesterday that I thought would make a great topic for this week’s article. An originator asked- “How does HUD define a homeowner association’s “right of first refusal” regarding condominium project review for approval or for spot loan review for approval? What does that term mean?”
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The recent passage of the Housing and Economic Recovery Act brought forth big buzz in regards to the $7500 tax credit that will be provided to homebuyers. Let’s review this subject in a bit more detail since January 31 is just around the corner!
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.