William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have heard of this, but once again we have a huge number of people with NO skin in the game.  Didn't we just have that same fiasco?

Jan 26, 2015 08:12 AM
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

It does smack of somewhat of a risky proposition doesn't it William Feela 

Thanks for sharing.  Make it a great evening.

Jan 26, 2015 08:47 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Randy I have not heard of this program, but when something sounds to good to be true it usually is.  Bank of America has not been the most responsive bank of late, so it will be interesting to see how this whole program develops.  Did they have any info on what the DTI is on these loans?

Jan 26, 2015 09:00 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Randy. I have been reading about this program, but have not interacted with anyone that has participated. We'll find out over time if it has any impact, my guess it won't.

Jan 26, 2015 06:37 PM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Randy.  I have not heard about this program.  Thanks.

Jan 26, 2015 07:48 PM
Anonymous
Tim Trumble

The NACA 15-year "Freedom Loan" has been available since September and between 1/3 and 1/2 of the borrowers who come to us are eligible for the product. The big differnece is that we counsel the buyer on budget matters and determine just how much they can legitimately afford. As such, NACA loans have a default rate that is a fraction of the national average. It also offers a very aggressive interet rate buydown program with 1/2% reduction for each point paid, far more efficient than a traditional down payment. Right now, less than six points gets the rate to zero. This loan is actually the antithesis of the loans that caused the bubble. DTI by the way is a very traditional 31/40%.

Jan 27, 2015 05:50 AM
#6
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

I had not heard of this program either George Souto but see the subsequent comment from a representative of NACA.

Thanks for sharing.

Jan 27, 2015 07:46 AM
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

We have some additional information (comment subsequent to your comment) on this program from a rep of NACA Joe Petrowsky which may shed some additional light on this product.  The impact of the program does appear that it may be less than earthshaking as NACA is only qualifying 1/3 to 1/2 of borrowers who apply.

Thanks for sharing.

Jan 27, 2015 07:49 AM
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

There was a comment left after your comment Conrad Allen from a rep[ of NACA that may shed some additional light on this loan product.

Thanks for sharing.

Jan 27, 2015 07:51 AM