mortgage: Atlanta, GA Market Update - November 9, 2010 - 11/10/10 01:48 PM
Tuesday morning saw little action on the news front.  The only data came from the Wholesale Inventories report for September.  The release showed that wholesale inventories increased 1.5%.  This is much stronger than the 0.6% increase that the market was anticipating. 
The afternoon saw the auction of $24 billion 10 year notes.  The results were announced at 1:00 pm EST.  The market reaction sent mortgage rates slightly higher in the late afternoon. 
 
… (0 comments)

mortgage: Atlanta, GA Market Update - Week Ahead - 11/07/10 01:32 PM
Last week was an especially busy one in market news.  We will see that continue to be absorbed this week.  The new economic news front will be on the quiet side with only four trading days.  The Bond Market will be closed on Thursday for Veteran's Day.   
There are no economic reports set for Monday or Tuesday.  Wednesday will have the Initial Jobless Claims and Balance of Trade reports.  The Consumer Sentiment report will be released on Friday. 
 
 
 
 
 
 
 
… (0 comments)

mortgage: USDA Announces 2011 Funding Availability - 11/07/10 03:05 AM
USDA has just announced that funding for the Single Family Housing Guaranteed Loan Program is now available for the 2011 fiscal year.
Purchase loans will be subject to a 3.50% upfront guarantee fee.
Refinance loans will be subject to a 1.00% upfront guarantee fee.
These upfront guarantees remain unchanged from September's revision from when the USDA program was restarted.
… (0 comments)

mortgage: Conventional Mortgage Insurance Begins to Make a Comeback - 11/02/10 02:11 PM
Over the last few months, some conventional Mortgage Insurance companies have loosened up on their underwriting guidelines.  This comes after nearly 3 years of pulling back and the tightening of those guidelines.
Starting November 1st, one MI company has expanded its 97% LTV program.  This new maximum LTV is currently limited to first time home buyers only.  Eligibility varies by zip code based on its status as a declining market.  Metro Atlanta is still limited to a 95% LTV at this time. 
For Second Homes, purchases and rate/term refinances are back up 90% LTV.  MI for Investment properties is still not available at this time. 
Each MI … (4 comments)

mortgage: FHA New Construction Documentation Requirements - 11/02/10 12:42 PM
FHA New Construction Documentation Requirements
 
New Construction < 1 Year
If property is one year old, provide Certificate of Occupancy to determine if less than 1 year.
Option A - New construction (one year old or less), where the local jurisdiction issues building permits AND performs local inspections/issues Occupancy Certificates (see * below)
Option B - New Construction (one year old or less), where the local jurisdiction does not issue a building permit AND a Certificate of Occupancy
All of the following are required to satisfy the requirements for obtaining a high ratio loan >90%: An Early Start Letter … (0 comments)

mortgage: Agents....Are You Setting Proper Pre-Qualification Expectations With Buyers???? - 10/19/10 12:49 AM
Agents, are you setting proper Pre-Qualification expectations with your buyers????  Sadly, many agents do not seem to be doing so.  Before you refer a buyer to a loan officer, please do everyone a favor and set the proper expectations at that time.  That is an excellent time to begin to start the education process with your buyer. 
Please do not lead the buyer to believe that a Pre-Qualification can be done in 5-10 minutes over the phone and they will instantly get their letter. It only makes us look like the bad guy.  A 5-10 minute Pre-Qualification today is pretty pure fiction much like Stephen King.  Well technically, … (6 comments)

mortgage: HomePath Financing Mortgage Program Overview/Updates - 09/28/10 04:06 AM
HomePath® Financing Highlights
 
This special financing is available exclusively on Fannie Mae homes with the HomePath logo
Search for Fannie Mae REO's at http://reosearch.fanniemae.com/reosearch/.

Program Basics
HomePath Financing for Fannie Mae REO'sHomePath Financing - Buy a Home in Georgia With Only 3% DownGeorgia Investors Can Purchase With as Little as 10% DownBuy an Alabama Second / Vacation With as Little as 10% Down. Conventional Guideline FAQ - AssetsSelf-Employed???? Acceptable Use of Business Funds for Closing
Conventional Guideline FAQ - Credit
Do You Need a New Credit Report Before Closing??? - Fannie Mae Clarifies Its PositionFannie Mae Updates Policy for … (1 comments)

mortgage: Georgia Dream Down Payment Assistance Program Overview/Updates - 09/27/10 01:03 PM
Georgia Dream First Mortgage Loan Financing
30 Year Fixed Rate Mortgage Conventional, FHA, USDA-RD, or VA programs available Up to 100% financing (Additional household income restrictions apply)
Georgia Dream Second Mortgage Loan Financing
Down payment funds are provided as a Second Mortgage Loan for the purpose of principal reduction and the payment of pre-paid items and closing costs and is made in conjunction with a Georgia Dream First Mortgage Loan.
No Monthly Payments No Interest Loan must be repaid when home is sold or refinanced or no longer used as the borrowers personal residence as this loan is never forgiven. … (2 comments)

mortgage: Atlanta, GA Market Update - September 27, 2010 - 09/27/10 10:56 AM
Mortgage Bonds opened improved on Monday morning.  There were no economic reports scheduled for release today. 
This afternoon, we had a $36 Billion auction of 3 Year notes.  The results were announced at 1:00 pm EST.  Tomorrow, there will be a $35 Billion auction of 5 Year notes.  Wednesday will see $29 Billion of 7 Year notes being auctioned off. 
The rest of the week will be quite busy. 
The big news story for Atlanta this morning was the announcement that Southwest Airlines would be buying AirTran Airways.  The deal is reported to be valued at $1.4 Billion.  While based on Orlando, FL, … (1 comments)

mortgage: FHA 203K HUD Consultant Fee Schedule - 09/26/10 02:20 PM
The FHA 203K Consultant Renovation loan requires the use of a HUD Approved Consultant.  HUD has a preset schedule of fees that are to be charged to the borrower. 

For 2-4 unit properties, there will be an additional fee of $25/unit.  HUD does allow for mileage charges when the properties is located outside of the Consultant's area. 
Search For A HUD Approved Consultant
The FHA 203K Streamline Renovation loan does not require the use of a HUD Approved Consultant.
 

… (7 comments)

mortgage: Fannie Mae's Latest Guidance for Foreclosures, Bankruptcies, & Short Sales - 09/25/10 05:54 AM
Fannie Mae has updated its polices regarding new financing for borrowers with a previous bankruptcy, foreclosure, or short sale.  The waiting period ranges from 2 years from the discharge date of a Chapter 13 Bankruptcy to 7 years from the date of a Foreclosure.

 
 
 
 
All borrowers will now be required to meet the minimum waiting period after the derogatory event in order to be eligible for a new conventional mortgage loan backed by Fannie Mae. 
 
 
 
… (1 comments)

mortgage: Atlanta, GA Market Update - September 24, 2010 - 09/25/10 04:08 AM
Market volatility continues on Friday morning as the Mortgage Bond market opened down from Thursday's close.  This comes after a strong Durable Orders report for August.  August saw overall durable goods orders fall 1.3%. Excluding transportation, the orders increased 2.0%.  This is much stronger than the analysts expectations of a 0.6% increase. 
New home sales came in at near expectations for August.  They were virtually unchanged from July with an annualized rate of 288,000.  
On Friday, the Georgia Department of Banking and Finance revoked the mortgage license of United Funding Mortgage.  The company operated in Alpharetta as Vertical Mortgage Company.  The department stated … (0 comments)

mortgage: Yes Mr/Miss/Mrs Agent, I May Need Your Social Security Number, Driver's License, Etc - 09/24/10 04:44 AM
Yes Mr/Miss/Mrs Agent, I may need your Social Security number, driver's license, etc so that your buyer/seller can close.   This topic was brought up in a post yesterday by Donna Harris The Lender Wants MY Social Security Number... What Do I Have to Do With My Buyer's Loan?.  There were many comments about this topic.  Most all blamed the lender, suggested contacting attorneys, etc.  Basically, everything except for acknowledging it as an actual and valid requirement that must be fulfilled.  No, it's not a lender being ridiculous. No, it's not a lender who doesn't know what they are doing. No, … (26 comments)

mortgage: Atlanta, GA Market Update - September 23, 2010 - 09/23/10 04:48 AM
Mortgage Bonds could not maintain their momentum from the last few days as economic news has been mixed.  After peaking mid-afternoon yesterday, they slipped some prior to the market close.  That carried through to today. 
The initial Claims report came in higher than expected. They rose 12,000 to a seasonally adjusted 465,000 for the week ending September 18.  Analysts has anticipated no change from the previous week.  For metro Atlanta, the unemployment rate rose to 10.4 in August.  This is up from 10.1 in July.   
Existing Home sales came in slightly better than expected.  This has caused money to flow … (0 comments)

mortgage: Before You Get Too Excited, No HUD Has NOT Lowered FHA Credit Score Requirements - 09/23/10 02:54 AM

 
 
Before you get too excited, no HUD has NOT lowered the credit score requirements for FHA loans.  I have seen several posts written over the last few weeks about the new credit score requirements that go into effect on October 4, 2010.  This is true.  However, the facts are not clearly stated.While I may have missed it, I have yet to see one post that informs reader that, prior to this announcement, HUD has NEVER had a MINIMUM credit score requirement for FHA loans.  Yes, you heard that correctly.  Since HUD created the FHA program in the National … (6 comments)

mortgage: Atlanta, GA Market Update - September 22, 2010 - 09/22/10 10:02 AM
Wednesday morning saw Mortgage Bonds open trading higher. This follows the gains from Tuesday afternoon's post Fed rally.  During the announcement, the Fed stated that it is “prepared to provide additional accommodation if needed to support economic recovery and to return inflation, over time, to levels consistent with its mandate.” It also kept its "extended period" language in place. 
The Fed's statement has led to a rally in the Mortgage Bond market.   There is now speculation that the Fed may be buying more Treasuries on a larger scale. This would be done in a effort to stimulate the markets.
… (0 comments)

mortgage: Fannie Mae Updates Policy for Borrowers With a Previous Bankruptcy - 09/21/10 03:12 PM

 
Fannie Mae has updated its polices regarding new financing for borrowers with a previous bankruptcy.  The waiting period now ranges from 2 years from the discharge date of a Chapter 13 Bankruptcy to 5 years from the discharge or dismissal date for someone with multiple bankruptcy filings.
 
 
 
… (3 comments)

mortgage: Atlanta, GA Market Update - September 21, 2010 - 09/21/10 05:09 AM
After Mortgage Bonds rallied yesterday afternoon, the gains continued this morning.  This is ahead of the Federal Open Market Committee rate policy decision.   It is set to be released at 2:15 pm EST.  Analysts anticipate both rates to remain unchanged. 
It was reported that housing starts rose 10.5% in August.  Last month, housing starts increased to an annual rate of 598,000.  This is up from a revised 541,000 and beat the expectations of 550,000.  Its also the best increase in four months. 
Building permits increased 1.8%.  This number was also beat analyst's expectations.  It follows a 4.1% unrevised drop in July. 
Mortgage rates are … (0 comments)

mortgage: Atlanta, GA Market Update - September 20, 2010 - 09/20/10 04:34 AM
The Mortgage Bond market opened this morning relatively unchanged from Friday's close.  Since there are no economic reports scheduled for release today, Mortgage Bonds will take direction from the Stock Market. 
The Wall Street Journal reports that IBM has announced it intent to buy software company Netezza for $1.7 Billion.  With the S&P 500 currently trading higher, this could place additional pressure on pushing mortgage rates higher. 
This morning, there was a weaker than expected outlook on home builder conditionsreport.    September saw the National Association of Home Builders/Wells Fargo housing market index unchanged at 13.  Analysts are predicted a 14.  A measure of <50 indicates … (0 comments)

mortgage: Do You Know Who Is Responsible for Setting Mortgage Underwriting Guidelines??? - 09/19/10 03:28 PM
What is the Secondary Market you ask? In mortgages, the Secondary Market is where bonds and securities are backed by the value of mortgage loans, collateralized and then they are sold on Wall St.  These security instruments are also known as Mortgage Backed Securities (MBS).  Being packaged as an MBS is how mortgage loans are bought and sold after the borrowers have closed on their transaction.  All mortgage loans are underwritten by the lender to predetermined underwriting guidelines.  Therefore, each mortgage loan program has its own unique set of underwriting guidelines.  This loan programs include:
Conventional (Fannie Mae & Freddie … (3 comments)