MortgageCurrentcy.com New Issue - Dec. 10, 2008

Subject: MortgageCurrentcy.com New Issue - Dec. 10, 2008

 
 
 December 2008   
  
In This Issue:
Fannie Establishes Additional Appraisal Requirements and New Appraisal Addendum (Form MC1004) - Mortgage Talking PointsTM Flyer Included <http://y0use.com/rd.html?id=548>

 Highlights from New Fannie Mae Selling Guide - Download the Preview Version.

 Private Mortgage Insurance Company Comparison Chart for Fannie/Freddie Conforming Loans (Download  Print)

 Freddie Mac: Product, Property  Underwriting Changes Including 45% DIT; HomePossible® Updates; Appraisal Addendums  More

 Updates to Freddie Mac Loan Prospector (LP) Changes Accept Plus, Super Conforming  Price/Credit

 Freddie Mac Manual Underwriting Guidelines, Minimum Waiting Periods for Foreclosures, Short Sales, Deed in Lieu, and More.

 Acceptable Down Payment Sources for FHA Loans!  (Mortgage Talking PointsTM Flyer - Shake the Money Tree)

 Warning: DU for Government Loans (FHA/VA) Will Not be Updated Until 1/24/09 - It's Still Your Responsibility to Check Loan Amounts!

 FHA Maximum Loan Limits Including Reverse Mortgage (HECM) Mortgage Loan Limits for 2009

 FHA Reverse Mortgages  New Origination Fee Limits - How to Figure!

 Property Flipping Allowed in 5 Midwestern States

 HOPE for Homeowners' Program (H4H) - Is it Workable?

 Is the Home Valuation Code of Conduct (HVCC) Going to be Implemented Anytime Soon?  An Update!
 ARTICLES IN THIS ISSUE

 

  
       Fannie Establishes Additional Appraisal Requirements and New Appraisal Addendum (Form MC1004) - Mortgage Talking PointsTM Flyer Included    
              There‚s more to this announcement than the new 1004MC form, like trends in values, supply  demand, marketing times, prior listings, new construction comps, etc. Understanding how the appraiser reached his/her conclusions is critical in explaining them to your clients and real estate agents. Mortgage Talking PointsTM Flyer explaining how it will affect your agents and builders! (Fannie Mae Announcement 08-30, November 14, 2008)
   
 

  
       Highlights from New Fannie Mae Selling Guide - Download the Preview Version.    
              Yippee! Fannie finally figured out that it took 10 times longer to find specific guidelines on their site than it does on Freddie‚s site.  Sheesh∑what took so long!  There are so many fantabulous features you may actually like reading this stuff, but YOU CAN LITERALLY USE IT TO SAVE YOUR DEALS!! (Download the preview version of the 2009 Selling Guide.) (Fannie Mae Lender Letter 03-08)
   
 

  
       Private Mortgage Insurance Company Comparison Chart for Fannie/Freddie Conforming Loans (Download  Print)    
              Not all MI companies are created equal. For example, the FICO on a rate and term refi ranges from 620 to 700.  Only 3 companies will consider manufactured homes. Download  Private Mortgage Insurance Comparison Chart (Genworth, MGIC, PMI, Radian, UG and RMIC) as recent as 12-5-08.
   
 

  
       Freddie Mac: Product, Property  Underwriting Changes Including 45% DIT; HomePossible® Updates; Appraisal Addendums  More    
              We‚ve got two zingers here:  (#1) ˆ Freddie actually backed off on their threat to implement a 45% DTI on ALL loans.   It will only apply to manually underwritten mortgages.  Fantabulous!  Especially for super-conforming loans! (#2) -  100% financing with Freddie is out the door for good.  Wait, there‚s more!  This Bulletin is crammed with changes that affect you. (Freddie Mac, November 24, 2008 Bulletin)
Read More > <http://y0use.com/rd.html?id=549>    
 

  
       Updates to Freddie Mac Loan Prospector (LP) Changes Accept Plus, Super Conforming  Price/Credit    
              This is about what‚s updated in LP; it is NOT about rule changes.  But please, don‚t discount it!  It‚s quite a big deal. Do you have any of these loans sitting in your pipeline?   Not only can you have PO‚d Realtors ˆ you could lose the deal altogether.  (Freddie News, November 18, 2008)
   
 

  
       Freddie Mac Manual Underwriting Guidelines, Minimum Waiting Periods for Foreclosures, Short Sales, Deed in Lieu, and More.    
              Part II is manual underwriting, plain and simple.  Skip it at your own risk ˆ because nobody underwrites manually anymore.  Right?  Well, I beg to disagree.  Whether underwriters admit it or not, most will underwrite manually if they believe in the loan file. There are more and more reasons that Lenders are forced to manually underwrite! (Freddie Mac Bulletin - October 17, 2008)
   
 

  
       Acceptable Down Payment Sources for FHA Loans!  (Mortgage Talking PointsTM Flyer - Shake the Money Tree)    
              There are lots of lesser-known alternative sources of down payment funds acceptable to FHA.  Many loan officers, real estate agents and builders either don‚t know about or fully understand them. You might be able to close a few more loans by knowing this info.  Download Mortgage Talking Points® Flyer ˆ Shake The Money Tree!
   
 

  
       Warning: DU for Government Loans (FHA/VA) Will Not be Updated Until 1/24/09 - It's Still Your Responsibility to Check Loan Amounts!    
              The oops potential for loan buy-backs and uninsured loans is massive to say the least.  You cannot depend on your DU findings for government loan amounts until January 26, 2009. (Fannie Mae DE for Government Loans Release Notes for January 2009, on December 1, 2008)
   
 

  
       FHA Maximum Loan Limits Including Reverse Mortgage (HECM) Mortgage Loan Limits for 2009    
              Most of us are a little misty-eyed over loosing our temporary higher limits but hey, it could have been much worse...really.  Create lists for your area and email or deliver them to everybody.   Put the FHA limits for surrounding counties on the back of your business card and laminate. (FHA Mortgagee Letter 2008-36, November 7, 2008  FHA Mortgagee Letter 2008-35, November 6, 2008)
   
 

  
       FHA Reverse Mortgages  New Origination Fee Limits - How to Figure!    
              Now is the time to take a hard look at your company policy, if you have one, regarding HECM origination fees.  Seems simple enough, but I hate it when HUD gives us instructions that are „open to interpretation‰ and they‚ve done it again!!  First, let me clarify a few things for you∑ (FHA Mortgagee Letter 2008-34, October 31, 2008)
   
 

  
       Property Flipping Allowed in 5 Midwestern States    
              If you are originating in these states, get the word out!  Quick! This is big news for those doing business in these counties. Check your pipeline: deals that were not previously eligible for FHA financing may be now.  See if your borrowers could benefit. (FHA Mortgagee Letter 2008-37, November 24, 2008)
   
 

  
       HOPE for Homeowners' Program (H4H) - Is it Workable?    
              It looks like lipstick on a pig to me--none of these changes make a @*!#%! difference to most of us; H4H is STILL not a viable origination tool.  With that said, there is still a lot of buzz going on and subscribers are asking about it, so here‚s what you need to know, in plain English! (HUD News Release 08-178, November 19, 2008)
   
 

  
       Is the Home Valuation Code of Conduct (HVCC) Going to be Implemented Anytime Soon?  An Update!    
              In all likelihood, brokers will be ordering their appraisals through Appraisal Management Companies (AMC‚s).  Originally, this was rolled out as a January 1, 2009 requirement and there have been no updates from either Fannie or Freddie.  In fact it has gotten eerily quiet∑.but I doubt it‚s because it‚s going to go away. Read what the appraisers‚ board is saying∑
   
 PREVIOUS ISSUE


 Fannie Mae High Balance DTI:  Does Fannie's new "High Balance" loan have the same maximum 45% DTI as the current conforming Jumbo?  I have an approve/ineligible because of a 47% DTI that I'll hold until January if I can get it through then.
 Fannie/Freddie Condos:  An underwriter said that I have to wait 3 years after a condo conversion, to finance (or refinance) Fannie or Freddie. Why?  

 FHA Become DE Underwriter: How does a loan officer get approved as an FHA underwriter?

 FHA Condo Approvals:  What do I need to do to get the condo projects FHA approved and what are FHA appraisal requirements for new construction condos?  

 FHA Rents Current Home, Buys FHA:  What are the rules to use rental income from a home that will be rented when buying another home via FHA?

 VA Refinance:  If a veteran buys a home on lease/purchase option, what are the VA rules?

 VA Renting Current Home, Buying VA:  What are the rules to use rental income from a home that will be rented when buying another home via VA?

 Home Valuation Code of Conduct: Is there anything new on the HVCC and the requirement to use Appraisal Management Companies?

 Chapter 7 Bankruptcy:  What's the buzz about the credit bureaus, a lawsuit and Chapter 7 Bankruptcy Reporting Issues?