Did you miss the 36 hour Refi Boomlet?  Did you have a lot of customers complaining because they missed it too?  This has happened 3 times in the last 5 months.  Don't let it happen again.

How about establishing a "Pre-Pipeline"?  Give your past customers an "added value" of joining your Pre-Pipeline.  Get them ready to go, so they AND YOU won't miss the next Refi Boomlet.

You should ALWAYS find an opportunity to contact your past customers with added value.

In today's challenging market, staying one step ahead of the competition can be the degree of separation between the successful lender and the struggling lender.

With rates dropping, and expected to continue to drop, we're going to see more demand for FHA Streamlines (non-credit qualifying rate/term refinances of borrowers who currently have an FHA loan). 

 

Below is some general information on them, and a Submission Checklist

 

• Appraisal not required if loan amount does not exceed original loan amount
• DU Findings are not required
• Employment information is required on the 1003
• Income and Assets are not required on the 1003
• Max 1x30 on the Mortgage last 12 months
  • Must be 0x30 at closing
• Max $250 cash out
• VOM required at Submission
• Not allowed in Colorado, Minnesota, Nevada, or Ohio
• Payment must reduce by $50
• A borrower may not be removed from the loan........borrower may be added
• FICO adjustments on rate sheet do not apply

 

 

FHA Streamline Submission Checklist

 

General

q       Loan Submission Form

q       Borrowers/Co borrowers Signature Authorization Form

q       1003 with NVRL Rate and Terms (signed)

o       Employment must be disclosed on 1003

q       Good Faith Estimate

q       Truth-In-Lending

q       Title Report

q       Copy of Current Note & HUD

q       VOM

 

FHA Specific

q       FHA DU Findings are NOT needed

q       Notice to Homebuyers regarding Assumption Disclosure

q       Informed Consumer Choice Disclosure

q       92900

q       Clear Copy of ID's if Face-to-Face Interview (if applicable)

With rates dropping, and expected to continue to drop, we're going to see more demand for FHA Streamlines (non-credit qualifying rate/term refinances of borrowers who currently have an FHA loan). 

 

Below is some general information on them, and a Submission Checklist

• Appraisal not required if loan amount does not exceed original loan amount
• DU Findings are not required
• Employment information is required on the 1003
• Income and Assets are not required on the 1003
• Max 1x30 on the Mortgage last 12 months
  • Must be 0x30 at closing
• Max $250 cash out
• VOM required at Submission
• Not allowed in Colorado, Minnesota, Nevada, or Ohio
• Payment must reduce by $50
• A borrower may not be removed from the loan........borrower may be added
• FICO adjustments on rate sheet do not apply

 

 

FHA Streamline Submission Checklist

 

General

q       Loan Submission Form

q       Borrowers/Co borrowers Signature Authorization Form

q       1003 with NVRL Rate and Terms (signed)

o       Employment must be disclosed on 1003

q       Good Faith Estimate

q       Truth-In-Lending

q       Title Report

q       Copy of Current Note & HUD

q       VOM

 

FHA Specific

q       FHA DU Findings are NOT needed

q       Notice to Homebuyers regarding Assumption Disclosure

q       Informed Consumer Choice Disclosure

q       92900

q       Clear Copy of ID's if Face-to-Face Interview (if applicable)

Treasury notes gained, posting their sixth straight weekly advance, as a decline in stocks fueled concern that the U.S. economy will fall into recession.

Traders pushed U.S. government debt to the best start to a year in two decades on speculation the Federal Reserve will cut interest rates by as much as a half-percentage point Jan. 30. Volatility in Treasuries reached the highest in a decade this week as policy makers slashed their target in an emergency move, while stocks had the longest slide since 2002.

The 10-year note yield dropped 14 basis points today to 3.57 percent. The yield touched 3.29 percent this week, the lowest since June 2003, as investors sought shelter from falling stocks. The note's rally is the longest since 2006.

As part of the economic stimulus package being negotiated by House Democrats
and the Treasury Department, Fannie and Freddie loan limits will increased
for one year up to $730,000. The increase will be adjusted for local markets
at 125% of local median home price. The move will significantly improve
liquidity and pricing in the jumbo market. The agreement also includes
raising the FHA loan limits to the same amount. We are trying to confirm
whether the other provisions of FHA reform will be included (such as
lowering downpayment requirements). But at a minimum, the loan limits will
be increased.

This represents an agreement in principle and must still go through the
legislative process. My best guess is that will happen sometime after the
State of the Union next week, likely progressing into early February.

This is the most significant action to date proposed by the federal
government to stabilize the housing market. Lenders One/National Alliance of
Independent Mortgage Bankers have worked hard to make this a reality and we
will continue to keep you posted on our progress.

....and YES...We have always been FHA approved!

:-)

~KRIS KRAJECKI

Mortgage Specialist

630-347-6321

As part of the economic stimulus package being negotiated by House Democrats
and the Treasury Department, Fannie and Freddie loan limits will increased
for one year up to $730,000. The increase will be adjusted for local markets
at 125% of local median home price. The move will significantly improve
liquidity and pricing in the jumbo market. The agreement also includes
raising the FHA loan limits to the same amount. We are trying to confirm
whether the other provisions of FHA reform will be included (such as
lowering downpayment requirements). But at a minimum, the loan limits will
be increased.

This represents an agreement in principle and must still go through the
legislative process. My best guess is that will happen sometime after the
State of the Union next week, likely progressing into early February.

This is the most significant action to date proposed by the federal
government to stabilize the housing market. Lenders One/National Alliance of
Independent Mortgage Bankers have worked hard to make this a reality and we
will continue to keep you posted on our progress.

I recieved this e-mail and thought I'd pass it along...

Looks like teh declining housing market is here to stay for awile....and the lenders know it!

As you are well aware, 2008 is forecasted to be a challenging year for the mortgage industry, characterized by a declining Housing Price Index in a wide variety of metropolitan markets. In the context of the prominent threat to our industry of collateral values falling below outstanding loan balances, mortgage professionals must strive to ensure that borrowers do not take on loans that they do not have the ability or economic interest to repay.

Because of these market conditions, as well as policies implemented by Government Sponsored Enterprises and Mortgage Insurance agencies, Countrywide^®, America's Wholesale Lender^® is adopting new Soft Market policies designed to help serve qualified borrowers in markets which are either declining or projected to decline in 2008.

Impacted markets across the nation have been categorized, with Category 5 being the highest risk for declining market value and Category 1 markets currently demonstrating more stable market values. Those counties in a higher risk category are subject to additional guideline restrictions as described below. Click here to view a list of the counties currently attributed* to Soft Market categories 1-5.

The following Soft Market policy became effective January 18, 2008:

Conforming, Non-Conforming, Expanded Approval (EA), and Conventional Bond loans:

Soft Market Category 4-5 loans
			Maximum financing will be reduced by 5% Example: Maximum financing per Countrywide's Loan Program Guide allows for 95% LTV. Loans in Category 4-5 will be limited to a new max LTV of 90%.
Soft Market Category 1-3 loans
			Maximum financing will be reduced by 5%, only if the appraisal or appraisal review indicates any of the following:
		Declining Market Oversupply Marketing time over 6 months

For the above categories, if the loan is already 5% below the maximum allowable financing, no further reduction is required.

Home Equity**

Soft Market Category 5 loans
			Maximum financing will be reduced by 10%, unless the loan is already 10% below the maximum allowable financing
Soft Market Category 4 loans
			Maximum financing will be reduced by 5%, unless the loan is already 5% below the maximum allowable financing
Soft Market Category 1-3 loans
			Maximum financing will be reduced by 5% (unless the loan is already 5% below the maximum allowable financing) if the appraisal or appraisal review indicates any of the following:
		Declining Market Oversupply Marketing time over 6 months
Products / Programs Not Impacted
			FHA / VA
			Rural Housing
			Bond programs using government or Rural Housing loan programs
			Reverse Mortgages

Treasuries Decline as Stimulus Plan, Stocks Dim Demand for Debt (edit/delete)

Ten-year Treasury notes fell for a second day as gains in stocks drew investors from government debt, pushing yields up from close to the lowest since 2003.

Demand for the relative safety of U.S. notes and bonds waned on speculation that further cuts in borrowing costs by the Federal Reserve and an economic stimulus package will avert a recession.

Losses in Treasuries were limited as a report showed the nation's housing slump deepened. Purchases of existing homes fell 2.2 percent to an annual rate of 4.89 million, the National Association of Realtors said today. For all of 2007, sales of single-family homes declined 13 percent, the most since 1982, and prices dropped for the first time in at least four decades.

I still predict a 1/2 point rate next week.

:-)

Ten-year Treasury notes fell for a second day as gains in stocks drew investors from government debt, pushing yields up from close to the lowest since 2003.

Demand for the relative safety of U.S. notes and bonds waned on speculation that further cuts in borrowing costs by the Federal Reserve and an economic stimulus package will avert a recession.

Losses in Treasuries were limited as a report showed the nation's housing slump deepened. Purchases of existing homes fell 2.2 percent to an annual rate of 4.89 million, the National Association of Realtors said today. For all of 2007, sales of single-family homes declined 13 percent, the most since 1982, and prices dropped for the first time in at least four decades.

I still predict a 1/2 point rate next week.

:-)

The Federal Reserve lowered its benchmark interest rate in an emergency move for the first time since 2001 after stock markets tumbled from Hong Kong to London and the U.S. economy showed increasing signs that it's headed into a recession.

The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent

(I was guessing 1/2)  :-)

Policy makers weren't even scheduled to gather until next week! It's the biggest single reduction since the Fed began using the rate as the principal tool of monetary policy around 1990.