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mortgage: Buying After a Short Sale is an Excellent Mortgage Credit Risk - 08/07/11 11:33 PM
While lenders will admit that it’s technically possible to provide mortgages to homebuyers who recently had a short sale without a waiting period, most lenders are not offering this product. Because the complexities of the process involved with closing these loans creates perceived risk, most lenders elect not to do them and fail to ask the more important question. . . “Are they a good credit risk?” The principals of underwriting mortgages and loans in general are outlined in the Four C’s (Credit, Collateral, Character and Capacity). By these measurements, borrowers who comply with the provisions of FHA’s Mortgagee Letter 09-52 … (19 comments)
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mortgage: Can I Buy a Home While I'm Getting Divorced in Minnesota? - 06/06/11 09:05 PM
It has been widely and wrongly asserted that someone who is getting divorced in Minnesota cannot purchase a home prior to finalizing a divorce decree and at the same time prevent their soon to be ex-spouse from being entitled to marital property rights in the newly purchased home. This used to be a serious problem that made the already long and painful process of getting divorced in Minnesota even longer and more painful yet. In 2004, the Minnesota legislature put this recurring issue to rest.
In 2004, the MN legislature enacted MS 507.03 PURHCASE-MONEY MORTGAGE; NONJOINDER OF SPOUSE. Amongst other things, … (2 comments)
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mortgage: Mortgages for Saint Paul, Minnesota Community Land Trusts (CLT) Housing - 03/12/11 08:28 PM
Community land trusts are created to preserve long-term affordable housing by purchasing homes in their communities, then leasing the land using a long-term ground lease to low-income and moderate-income families at affordable monthly ground rents. Community Land Trusts (CLT) have had a foothold in the Twin Cities for decades. More broadly, the leasehold form of homeownership is more common in Minnesota than many would think. It is a market that Realtors would do well to be skilled in. More especially, it is a market that is crying out for more readily available, quality financing through Fannie Mae. For the most … (0 comments)
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mortgage: Do’s and Don’ts with Credit During the Home Buying Process - 02/05/11 05:59 PM
When buying your next home, changes to your credit (additional accounts, closing accounts, fluctuating credit card balances) can result in the lowering of your credit score. If your credit score changes, that can affect your interest rate and even the loan approval itself. Therefore, it is imperative that there are no major changes to your credit and information provided, during this process.
In order for your loan to reach final approval and fund, you'll want to adhere to the following:
DO NOT charge any new items on your charge cards (higher balances will lower credit scores). DO NOT apply … (58 comments)
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mortgage: FHA Mortgage Insurance and Seller Concession Changes – Ramifications - 09/02/10 02:11 AM
HUD has regrettably increased the annual mortgage insurance premium and soon will have succeeded in reducing the allowable seller concessions. It's easy to know that this will have a big impact but it will actually change the lending landscape by dramatically decreasing FHA's presence in the marketplace and shifting loan volume to Fannie Mae and FreddieMac who share an uncertain future to say the least. It will also shift loans to private mortgage insurers, most of whom are either financially anemic or are still reeling from the volatile markets of the last 2.5 years. And it needn't be said that the private … (20 comments)
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mortgage: Unsolicited Advice for a Loan Officer’s Evolution – Learn to Underwrite - 05/30/10 04:26 PM
Since mid 2007, the mortgage originator as we know it has ceased to be. The requirements for technical knowledge, industry awareness and precision have skyrocketed to the extent that a modern day loan originator is more of an “Under-iginator.” He/she must be 50% loan officer, 15% customer service/sales rep, 5% appraisal reviewer and 30% underwriter to have any business talking to a customer about a mortgage. As well, the role of a processor has too changed. Some repetition-based duties have been replaced with technological automation. While those responsibilities have gone to the wayside, the secondary mortgage market has forced the … (7 comments)
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mortgage: Monthly Private Mortgage Insurance – It Doesn’t Make Any Sense - 05/30/10 12:59 AM
It is inevitable that FHA will play less and less of a role in the lending market. As this unfolds, it's critical for loan officers, Realtors and borrowers alike to understand the many options in the improving private mortgage insurance market. In the distant days when home values were increasing, it made perfect sense for borrowers to opt for monthly mortgage insurance and wait till their home had appreciated to the point where they had a twenty percent equity position. They'd soon call their lender to get an appraisal ordered and drop their monthly mortgage insurance. Those days are gone. In … (20 comments)
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mortgage: Upside Down on Your Home? – Here’s Your Playbook - 04/04/10 02:35 AM
In my home state of Minnesota, Minneapolis and Saint Paul have nearly 39 percent of homeowners under water. I've had the question, "I'm upside down on my home, what are my options?" so many times that I wanted to prepare a menu of options for people to reference. This article briefly outlines 9 potential solutions that may serve you well. The target audience here is not necessarily someone who's in default on their loan but simply one who owes more than the home is worth.
All too often, when one is upside down on their home and/or struggling with their mortgage, … (54 comments)
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mortgage: Interest Only Loans – Into the Ash Heap of History, . . . . (so what’s next?) - 02/28/10 09:03 PM
In an announcement on February 25th, Freddie Mac announced that as of September 1, they will cease purchasing and securitizing interest only mortgages. We can expect that lenders will take Freddie Mac’s Interest First product line off the market far sooner than that. It is also a reasonable conclusion to reach that Fannie Mae will follow suit (especially in the wake of their recent 15.3 billion dollar request for capital).
It was not explained why they did this but, according to Mortgage Servicing News, they have only been able to successfully modify 0.2% of its interest only portfolio (oops) and when combined with Alt-A loans, they represent … (6 comments)
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mortgage: Second Home Underwriting Guideline Changes - A Clearer Picture - 01/09/10 10:25 PM
I was updating my FeedBurner for OriginatorDigest.com and, as usual, I was looking for Bob Tedeschi’s weekly New York Times article as they’re usually fantastic and I’m an avid fan. His article Rethinking Vacation Homes comes so close to addressing the most important issues regarding 2nd home financing changes without actually doing so. I wouldn’t say that it’s Tedeschi’s analysis that’s off the mark but his sources fell short and failed to bring the most pressing matters and trends to his attention.
The article points out that Fannie and Freddie have changed their maximum loan to values available for second homes … (5 comments)
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Charles Dailey - NMLS ID#79048
Saint Paul,
MN
More about me…
iLoan - NMLS ID#4474
Address: 2324 University Avenue West, Suite 111, Saint Paul, MN, 55114-1843
Office Phone: (612) 234-7283
Cell Phone: (651) 428-6968
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