2 Blue Chip Mortgage Blog

Auto Dialers vs FTC; Telemarketing?

2 Blue Chip Mortgage — Thu, 04 Dec 2008 17:41:19 -0600

The FTC just issued the Final ruling on telemarketing and prerecorded sales calls. In the new rule you will have to receive permission from the customer in order to deliver prerecorded messages. Consumers however, can receive calls that deliver purely informational prerecorded messages such as you doctors' office that has a prerecorded message to remind you of your appointment. The ruling is supposed to protect consumers just like ‘The Do Not Call Registry'. The provision that requires prerecorded telemarketing calls to provide an automated interactive opt-out mechanism went in effective on December 1, 2008.

See complete rulings below.

http://www.ftc.gov/opa/2008/08/tsr.shtm

http://www.ftc.gov/opa/2008/12/tsramendments.shtm

Making Loan Officers and Brokers Accountable?

2 Blue Chip Mortgage — Wed, 23 Apr 2008 09:25:36 -0500

Maryland Governor signed the emergency bills on April 4, 2008 (HB 365 / SB 216 into law as emergency measures). MD Real Property Code Section 3-104.1 requires that every instrument securing ‘residential property' to contain the name and license number of the mortgage originator and the mortgage lender in order to record the security instrument. However, under the new law if the originator is exempt under the Mortgage Originators Act, or if the lender is exempt under the MD Mortgage Lender Law, an affidavit to the security instrument stating this fact is required. Under Section 3-104.1(A) residential Property is defined as real property improved by one to four single family dwelling units.

Mortgage Meltdown?

2 Blue Chip Mortgage — Tue, 08 Apr 2008 14:34:16 -0500

OK, I cannot even imagine what a Billion $$$ would look like. But the IMF is reporting that the total losses from Sub-Prime Loans can reach $945 billion. WOW!! In the U. S. alone we can expect to see about $565 billion $$$ in Sub-Prime loses. We all know that the government is working on something to help out this crisis but what and when?

Will it be too late by the time they figure it out?

Are Rates still low? How is the housing market?

2 Blue Chip Mortgage — Tue, 08 Apr 2008 10:39:30 -0500

Sometimes when rates are low some clients just like to float to see if it gets better. Why? These rates have probably been the steadiest in the past week and a half but people always want better. Well we cannot give lower than the lowest which is around 5.625% today. 5.625% is a very good way to start your day...Keep your head up; there is always someone looking for low rates. At the end of the day we provide a service (a very good on at that).

Homes sales are declining at about 1% from one month to the next. However, it could be worst so let us just move on to better things like closing more loans and selling more homes. Have a Great Day!

FHA down payment raised to 3.5%?...Foreclosure help?

2 Blue Chip Mortgage — Thu, 03 Apr 2008 23:07:30 -0500

Well, after the $30 Billion dollar bail out given to Bear Stearns last week the senate had to do something about the foreclosure issue we are currently facing. 94-1 was the senate vote to move forward on legislation to assist homeowners facing foreclosure. If the legislation is adopted there will be a $7,000 one-year tax credit for purchasers of foreclosed home. Hmmm

That bill also includes $10 billion in tax-exempt bonds for local housing agencies to refinance sub-prime loans and for first time home buyers, provide new mortgages and $100 million to expand counseling for homeowners at risk of defaulting on their loans.

Now here is the monkey wrench in the carburetor. This bill will set a cap on FHA mortgages to $550,000 in the expensive Real Estate market areas. This of course will take effect after the temporary loan limit of $729,750 expires and the down payment requirement for FHA will increase from 3% to 3.5%. Wow

What are your thoughts on this?

The Housing Market

2 Blue Chip Mortgage — Thu, 27 Mar 2008 09:53:20 -0500

There are not too many encouraging words in the media yet on home values increasing going into the 2^nd quarter. As it stands home values are still on a decline for the past five months even in major metropolitan statistical areas (MSAs) across the nation. Some MSAs are reporting declines over 10%.

Some of the major cities include Detroit, Las Vegas, Phoenix, Miami, LA, Minneapolis, Washington, San Francisco, San Diego, and Tampa. Although there not any mention of light at the end of the tunnel we still have to serve our customers and make a living.

There is good in everything...so keep providing quality customer service and remember it is a great time for home buyers.

New appraisal Code Comment Period

2 Blue Chip Mortgage — Sat, 22 Mar 2008 19:57:50 -0500

If you have not been following the mortgage finance industry; FannieMae has now entered into an agreement with the OFHEO (the office of Federal Housing Enterprise Oversight) and New York Attorney General's office to adopt a Home Valuation Protection Code. Basically the code will be for single family mortgage loans for the exception of governments insured loans that are originated on or after January 1, 2009 and are delivered to FannieMae. The comment period is open right now until April 30, 2008 after this date NY AG office will reflect on whether any amendments to the Home Valuation Code are essential to avoid unexpected consequences. How do you think this will affect the mortgage and Real Estate industry?

New GFE...RESPA

2 Blue Chip Mortgage — Fri, 14 Mar 2008 21:00:20 -0500

The new RESPA rule was released by the U.S. Department of Housing & Urban Development today. The official RESPA rule was published in the Federal Register so there is a 60 day comment period in effect right now and ends May 13, 2008. The new 4-page GFE is designed to more closely mirror the HUD-1 settlement statement and provide consumers with more detailed information about yield-spread premiums paid to mortgage brokers. One of the biggest changes is to encourage consumers to shop for the homes, home features, loans, and other settlement services that are best for them, free from the influence of dangerous referral arrangements.

More to come.....

Lenders Tightening Up again?

2 Blue Chip Mortgage — Mon, 10 Mar 2008 23:02:21 -0500

Some lenders are are removing their FNMA 100 programs also due to changes by the MI companiesthe FNMA Flex 97, FHLMC 97 and Community program guidelines are will have a reduction in maximum CLTV as well as an increased minimum credit score of 680 on loans with LTVs greater than 80.00%. What's next?

Are Jumbo Conforming available yet?

2 Blue Chip Mortgage — Fri, 07 Mar 2008 08:58:38 -0600

To help lenders serve more borrowers in many high-cost areas, Fannie Mae is introducing Jumbo-Conforming Mortgages. They will accept whole loan and MBS deliveries:

starting April 1, 2008 for 15- and 30-year fixed-rate mortgages
starting May 1, 2008 for eligible 5/1 adjustable-rate mortgages

For details on borrower and product eligibility, underwriting, pricing, and delivery:

View Announcement 08-05
(.pdf, 156K, 9 pages)
View the Jumbo-Conforming Mortgages Product Matrix
(.pdf, 197K, 2 pages)

View information about eligible areas and corresponding loan limits

There will also be a recorded training on how to originate, underwrite, commit, and deliver Jumbo-Conforming Mortgages to Fannie Mae in mid-March.

So if you told your borrower that Jumdo conforming will be ready this month you still to wait and there may be changes along the way.

Is your city listed in the Top Rank Median Home Values?

2 Blue Chip Mortgage — Fri, 29 Feb 2008 11:13:46 -0600

Eppraisal released its National Market Analysis today. They claim that from November to January the home values decreased (of course) compared to August to October. Click the link to see if you city is listed and the median home values in you area. http://www.eppraisal.com/NationalMSA.aspx

Is this even close to the homes you are selling or mortgages you are closing?

Lender’s? AE’s? What’s going on?.....

2 Blue Chip Mortgage — Thu, 28 Feb 2008 17:35:56 -0600

Are you forced to lock your loans for 30 days or 45 days instead of 15 days? Lately some lenders are now seven or more days in underwriting alone. Then you have to add for clearing the conditions after they receive them because they cannot get to them right away. Then there are some lenders that are priced much higher than others for the same products. I also heard that some AEs are not returning calls to the loan officers in a timely fashion. I thought the market was a ‘cookie cutter' for the most part. Is anyone experiencing similar situations? Please share...

Here Today Gone Tomorrow..

2 Blue Chip Mortgage — Wed, 20 Feb 2008 18:04:52 -0600

Every month we have something new to look forward to in our housing industry. First the lenders, then the declining markets now the MI companies. As of March 3, 2008 we will not be able to close loans we can close today. MI companies are no longer providing insurance on such loans as cash-out refinances, rental properties, mortgages with negative amortizations, Expanded Approvals and purchases with less than 5% down. WOW!!

If you you do not close before March 3, 2008 what happens to these loans?

Take a look at the MI companies and their new memos as to the changes.
PMI                                    http://www.pmi-us.com/
United Guaranty/UGI            http://www.ugmiguide.com/
Genworth/GE                       http://www.ge-mi.com/
RMIC http://www.rmic.com/
RADIAN       http://www.radianmi.com/
MGIC          http://www.mgic.com/

Has anyone heard about Bill SB 270?...it will affect how mortgage loan financing

2 Blue Chip Mortgage — Sun, 10 Feb 2008 17:57:49 -0600

The Bill is supposed to help the consumer but it seems that it may affect financing of loans in Maryland. They are trying to define sup-prime and possibly not doing these loans in MD. Setting a 45% Debt to income ratio on mortgage loans which will prevent some FNMA, Freddie Mac and VA programs. It also deals with MD credit and puts a lot of control in the hands of the commissioner. Has anyone heard about this?

Home Loan Limits increased to $729,750...Economic Stimulus Package Passes Congress

2 Blue Chip Mortgage — Fri, 08 Feb 2008 20:30:50 -0600

Congress agreed to support the economic package. This still has to be signed by the President but it will temporarily increase conforming loans limit of FNMA, Freddie and FHA to $729,750 for $417,000. There are also tax rebates for senior citizens as well as provisions for business to include expensing of equipment and assets brought in 2008. Well, we all know it is an election year! so what is next?

Is this bait and switch?

2 Blue Chip Mortgage — Fri, 08 Feb 2008 17:28:55 -0600

Why is it when dealing with builders and new developments there is usually confusion with the contract?

For example A Fist time homebuyer sees a home for sale and inquires about buying a property. Soon after that their credit is pulled and based on their score it is determined that they can qualify for a loan. Now they are ready to sign a contract and write a check for their earnest money deposit. (Stop, this is the accelerated version, but you get the point). Somewhere in the law there should a provision made that require a Homebuyer to have an agent or someone that looks out for the homebuyers' interest by reviewing the contract.

As a mortgage broker I have seen so many contacts that are one sided.

Current Law: Maryland's Real Property Article: Tile 14-104 states that, If purchaser is a first time homebuyer the entire amount of recordation tax an local transfer tax shall be paid by the seller, unless there is an express agreement between the seller and the buyer that the seller will not pay the recordation and local transfer tax. Then immediately in the next paragraph, is a statement from the seller that all fees will be paid by the homebuyer. Why is it that the fees are not split between buyer and seller? The homebuyer is told that all they have to do is get financing or using a finance company that the builder chooses (that is another issue we see a lot of). Is anyone else seeing this in their area?

Because of this clause in the contract the homebuyer has to come to the closing with more money than they initially thought. By the time the homebuyer gets to closing they are so frustrated with the builder that they are ready to give up their earnest money deposit forget about buying a home and move on with their lives.

We make it our duty to go to all closings. There is no reason to start the process with the homebuyer and leave them to figure it out for themselves at the end without assistance. At the end of the day we should all play our part in helping the homebuyer have the smoothest transaction from start to finish.

TGIF

2 Blue Chip Mortgage — Fri, 08 Feb 2008 14:57:53 -0600

Hi,

I'm a Mortgage Broker in Columbia. The kids were home today (no school) and I was still able to accomplished a lot of work. I guess I had the both of both worlds.

Have a Great weekend