Real Estate Blog - FHA YSP...BYE BYE... except for credit to borrowers closing costs 2010.

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FHA YSP...BYE BYE... except for credit to borrowers closing costs 2010.

Won't be enforced to 2010, and at this point is only refers to brokers (the hits hits just keep coming), but based upon the new disclosures for FHA loans being required in 2010, any and all YSP will have to be used to pay for closing costs, etc.

Now, 2010 is a long way away...but given what has happened with Fannie/Freddie with DTI ratios, etc, documentation, etc, it's just another thing that will make it harder for LO's who are out there in Broker land to make a buck.

OH YEA...I forgot, the REVCC (new appraisal stuff) coming in 2009 is sure to make it even more problematic for all of us, not just brokers. It almost seems like it's a conspiracy against wholesale and I would have to entertain the possibility that something like that really does exist.

Posted by Rich Sweum on 11/14/2008 10:36 AM

Comments (5)

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5 Comments on FHA YSP...BYE BYE... except for credit to borrowers closing costs 2010.

NOV

2008

Thanks, Rich, for the heads up. My corporate office believes that correspondent lending will be the only way to go in the future for a broker. Either that or become a banker!

Hi Rich

Thank you for the mortgage updates, we need to stay on top of the changes and put pressure on our congress and senators to control the bad legislation

Good luck and success

Lou Ludwig

Paul...the barriers to entry and expanding correspondent channels are getting steeper and steeper. It will force further consolidation and ultimately, less competition--not good for the consumer. Those correspondents who are in the early stages and do not have full delegated underwriting with full reps and warrants are going to go the way of the buffalo / so to are those with their mini-eagle for FHA.

Lou...HUD, Fannie/Freddie, the Treasury...they are all making stuff up as they go along, very very fluid. I spend at least 30 minutes a day trying to keep up with changes.

NOV

2008

Rich.... I see your point, but it doesn't bother, considering that I am a banker.... and a loan officer working for a broker? Can just come on board with me.

jeff belonger

NOV

2008

Jeff...I'd work for you anytime...I just need a little "attaboy" every once in a while...

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