Archive for the ‘Mortgage Guidelines’ Category
Thursday, May 3rd, 2012
 Despite an improving U.S. economy, the nation’s banks remain cautious about what they will lend, and to whom. Last quarter, by a margin of 3-to-2, more banks tightened residential mortgage lending standards for “prime borrowers” than did loosen them.
A “prime borrower” is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio. The insight comes from the Federal Reserve’s quarterly survey of its member banks.
Last quarter, of the 54 responding banks :
- 0 banks tightened mortgage guidelines considerably
- 3 banks tightened mortgage guidelines somewhat
- 49 banks left guidelines basically unchanged
- 2 banks eased mortgage guidelines somewhat
- 0 banks eased mortgage guidelines considerably
By contrast, in the quarter prior, not a single surveyed bank reported tighter residential mortgage guidelines. The period from January-March was a step backwards, therefore, for the fledgling U.S. housing market. Overall, getting approved for a mortgage is tougher than it used to be. Banks enforce higher minimum credit score standards; ask for larger downpayment/equity positions; and require higher monthly income relative to monthly debt obligations. It’s one reason why the homeownership rate is at its lowest point since 1997.
This is a preview of Mortgage Guidelines Resume Tightening Nationwide . Read the full post »
Tags: Federal Reserve, Homeownership Rates, Mortgage Approvals
Posted in Buying A Home, Mortgage Guidelines, Mortgage Rates, Mortgages | No Comments »
Tuesday, April 17th, 2012
 The new, revamped HARP program is now available in Colorado and nationwide. It was officially released Saturday, March 17, 2012 by Fannie Mae and Freddie Mac. HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the conforming mortgage loan product meant for “underwater homeowners”. Under the HARP program, homeowners in Evergreen can get access to today’s low mortgage rates despite having little or no equity whatsoever. HARP is expected to reach up to 6 million U.S. homeowners who would otherwise be unable to refinance.
HARP is not a new program. It was originally launched in 2009. However, the program’s first iteration reached fewer than 1 million U.S. households because loan risks were high for banks, and loan costs were high for consumers. With HARP’s re-release — dubbed HARP 2.0 — the government removed many of HARP’s hurdles.
In order to qualify for HARP, homeowners must first meet 3 qualifying criteria.
This is a preview of Loans For Underwater Homeowners : HARP 2.0 Now Available . Read the full post »
Tags: HARP, Making Home Affordable, Underwater
Posted in Foreclosure, Mortgage Guidelines | No Comments »
Thursday, April 5th, 2012
 Planning to use an FHA-backed mortgage for your next home loan? You might want to get your application in gear today.
Beginning next week, the Federal Housing Administration (FHA) is changing the way it charges mortgage insurance to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all FHA-backed homeowners.
For FHA Case Numbers assigned on, or after, Monday, April 9, 2012, there are two planned changes.
First, FHA Upfront Mortgage Insurance Premiums (UFMIP) will increase by 75 basis points to 1.75%, or $1,750 per $100,000 borrowed. Upfront Mortgage Insurance Premium is paid at closing, and typically added to an FHA borrower’s loan size.
The current UFMIP rate is 1.000 percent.
Second, annual FHA mortgage insurance premiums are rising. All new FHA-backed loans will be subject to a 10 basis point increase in annual mortgage insurance premiums, costing homeowners an extra $100 per $100,000 borrowed per year.
This is a preview of FHA Mortgage Insurance Premiums Increasing April 9, 2012 . Read the full post »
Tags: FHA, MIP, UFMIP
Posted in Buying A Home, Mortgage Guidelines, Residential Real Estate | No Comments »
Saturday, March 10th, 2012
 Beginning April 1, 2012, the FHA is once again raising mortgage insurance premiums (MIP) on its newly-insured borrowers throughout Colorado and the country. It’s the FHA’s fourth such increase in the last two years.
Beginning April 1, 2012, upfront mortgage insurance premiums will be higher by 75 basis points, or 0.75%; and annual mortgage insurance premiums will be higher by 10 basis points per year, or 0.10%. For borrowers with a loan size of $200,000, the new MIP will add $1,500 in one-time loan costs, plus an on-going, annual $200 increase in total mortgage insurance premiums paid. All new FHA loans are subject to the increase — purchases and refinances.
The FHA is increasing its mortgage insurance premiums because, as an entity, the FHA is insuring a much larger percentage of the U.S. mortgage market than ever before. In 2006, the FHA insured 2 percent of all purchase-money mortgages. In 2011, that figure jumped to 18 percent and unfortunately, as the FHA has insured more loans, it’s number of loans in default have climbed, too, forcing the FHA to boost its reserves.
This is a preview of FHA To Raise Mortgage Insurance Premiums April 1, 2012 . Read the full post »
Tags: FHA, MIP, UFMIP
Posted in Mortgage Guidelines | No Comments »
Friday, February 10th, 2012
The government’s new, revamped HARP program is 6 weeks from release. Homeowners in Colorado and nationwide are gearing up to refinance. HARP is an acronym that stands for Home Affordable Refinance Program. HARP is the government’s loan product for “underwater homeowners” that can make current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.
This is a big deal — especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.
HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households. To qualify for HARP, homeowners must first meet 3 qualifying criteria.
This is a preview of Revamped HARP : Unlimited Loan-to-Value And Same Great Rates . Read the full post »
Tags: HARP, Home Affordable Refinance Program, Making Home Affordable
Posted in Mortgage Guidelines | No Comments »
Sunday, February 5th, 2012
After a half-decade of tightening mortgage guidelines, banks are starting to “loosen up”.
The Federal Reserve conducts a quarterly survey of its member banks and, last quarter, not a single responding bank reported having tightened its mortgage guidelines for prime borrowers. A “prime borrower” is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio. 53 banks responded to the Fed’s survey and none said that mortgage guidelines “tightened considerably” or “tightened somewhat” between September and December 2011; 50 said that guidelines remained “basicaly unchanged”; 3 said that guidelines “eased somewhat”.
Mortgage applicants sometimes remark that the mortgage approval process can be challenging. Last quarter’s Fed survey hints that looser standards are coming. Not since before the recession have banks lowered mortgage approval standards like this and it bodes well for this year’s Golden housing market. Real estate agents report that 1 in 3 home sale contracts fail with “declined mortgage applications” as a leading cause. Looser mortgage lending standards should mean more home loan approvals for buyers, and fewer contract cancellations. This can spur the housing market forward.
This is a preview of Banks Start To Loosen Up In Underwriting . Read the full post »
Tags: Federal Reserve, FICO, home buyer, mortgages, Senior Loan Officer
Posted in Mortgage Guidelines | No Comments »
Friday, December 16th, 2011
 After a brief return to lower, pre-2009 levels, FHA loan limits have been restored. As signed into law the later part of November this year, maximum FHA loan limits are — once again — as high as $729,750.
The move creates additional mortgage financing possibilities in more than 650 U.S. counties, and promises to increase the FHA’s mortgage market share, which has grown from 6% in 2007 to roughly 30% today. The change in FHA loan limits also marks the first time that FHA loan limits exceed those of conventional mortgage-backers Fannie Mae and Freddie Mac. Conventional loans remain capped at a maximum of $625,500.
For home buyers in the Denver area and nationwide, FHA-insured mortgage offers several advantages over comparable conventional loans, the most commonly cited of which is that FHA-insured loans require a down payment of just 3.5 percent. FHA-insured mortgages carry other advantages as well.
This is a preview of Maximum FHA Loan Limits Restored To $729,750 . Read the full post »
Tags: FHA, High-Cost Areas, Loan Limits
Posted in Mortgage Guidelines | No Comments »
Wednesday, December 14th, 2011
A conforming mortgage is one that, literally, conforms to the mortgage guidelines as set forth by Fannie Mae and Freddie Mac. Conforming mortgage guidelines are Fannie’s and Freddie’s eligibility standards; an underwriter’s series of check-boxes to determine whether a given loan should be approved. Among the many traits of a conforming mortgage is “loan size”.
Each year, the government re-assesses its maximum allowable loan size based on “typical” housing costs nationwide. Loans that fall at or below this amount meet conforming mortgage guidelines. Loans in excess of this limit are known as “jumbo” loans.
Between 1980 and 2006, as home values increased, conforming loan limits did too, rising from $93,750 to $417,000. Since 2006, however, despite falling home prices in many U.S. markets, the conforming loan limit has held steady. This will remain true for 2012 as well. In 2012, for the 7th straight year, the national single-family conforming mortgage loan limit will remain at $417,000.
This is a preview of Conforming Loan Limits Unchanged For 2012 . Read the full post »
Tags: Fannie Mae, Freddie Mac, Loan Limits
Posted in Mortgage Guidelines | No Comments »
Tuesday, October 25th, 2011
The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.
With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in Colorado and nationwide who stand to benefit from the program overhaul.
To qualify for the re-released HARP program, you must meet 4 basic criteria :
- Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
- Your home must be a 1- to 4-unit property
- You must have a perfect mortgage payment history going back 6 months
- You may not have had more than one 30-day late payment on your mortgage going back 12 months
This is a preview of The Government’s Revamped HARP Program For Underwater Homeowners . Read the full post »
Tags: foreclosure, HARP, Home Affordable Refinance Program, Making Home Affordable, mortgage broker, mortgages
Posted in Foreclosure, Mortgage Guidelines, Mortgages, Personal Finance | No Comments »
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