North Star Mortgage Network

Buying a Home After Short Sale or Foreclosure

2011-03-22T16:54:00.001-04:00

http://www.topix.net/business/real-estate/2011/03/buying-a-home-after-short-sale-or-foreclosure

Nearly 20% of Florida homes are vacant

2011-03-21T10:54:00.000-04:00

2011-03-17T11:20:00.001-04:00

Renew your lease - rents could rise 10%

2011-03-17T11:18:00.000-04:00

Originator Compensation Delay Urged by House Republicans

2011-03-16T12:18:00.000-04:00

http://www.mortgagenewsdaily.com/03152011_regulation_z.asp

203K programs?

2010-06-10T12:33:00.001-04:00

We have those too.

Escrow Holdbacks?

2010-06-10T12:28:00.003-04:00

We have programs that allow for escrow holdbacks. These programs will allow you to finish an unfinished property or bring a property up to the minimal FHA standards after closing.

Manufactured housing

2010-06-10T12:05:00.000-04:00

We have programs.

Credit scores below 620?

2010-06-10T11:49:00.000-04:00

We still have programs.

HUD Confirms Appraisal Changes Feb 15, 2010

2010-02-12T10:29:00.001-05:00

HUD Confirms Appraisal Changes Feb 15, 2010

FHA announced today that the February 15,2010 Appraisal compliance changes WILL NOT CHANGE
As indicated in the industry email of December 22, 2009, enactment of ML 2009-28 (Appraiser Independence) WILL be implemented February 15, 2010. ML 2009-28 (originally planned for a January 1, 2010 implementation) has two parts:

a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and

b) appraiser selection in FHA Connection. The effective date for both sections of this guidance will take effect for all case numbers assigned on or after February 15, 2010.

This extension has allowed FHA and lenders additional time to adjust systems to accommodate the changes. Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter, which was delayed due to federal offices being shut down the week of February the 8th and will be released the week of February 15th.

However, lenders will be able to secure a case number assignment in FHA Connection via the Case Number Assignment Screen without inputting the appraiser information. The Case Number Assignment Screen will no longer capture the assignment choice, license ID and assignment date. Instead, lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Logging Screen once the completed appraisal is received by the lender and prior to closing the loan.

2010-02-04T10:49:00.000-05:00

FHA has increased Upfront Mortgage Insurance Premiums (“UFMIP”) for most FHA programs to 2.25 percent. Purchase money and full credit qualifying refinance transactions have increased from 1.75 percent to 2.25 percent. Streamline refinances, with or without an appraisal, have increased from 1.50 percent to 2.25 percent.
The UFMIP for the H4H program will remain at 2.00 percent and the UFMIP for HECM (reverse mortgages) will also remain at 2.00 percent. In addition, UFMIP for Title I, Section 247, Section 248, Section 223(e) and Section 238(c) programs have not changed.
At this point in time, there are no changes to the annual mortgage insurance premium (“MIP”). FHA reserves the right to make changes, but it will require legislative action. The annual premiums, which are remitted on a monthly basis, are a factor of the loan term and loan-to-value ratio. For now, these factors continue to be:
Terms > 15 years
LTV > 95% 0.55%
LTV < 95% 0.50%
Terms < 15 years
LTV > 90% 0.25%
LTV < 90% None
How does it change or benefit the industry:
The UFMIP 50 basis points increase for full credit qualifying transactions and the 75basis points increase for streamline refinance transactions will have an immediate impact on improving FHA’s capital reserve funds, which dipped below the two percent threshold at the end of the last fiscal year. FHA says it intends to seek legislative authority to increase the annual MIP. If this authority is granted, FHA may consider shifting some of the UFMIP premium increase to the annual MIP.

2010-01-28T15:03:00.001-05:00

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.
In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-
day period of time. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
•In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
•The waiver is limited to forward mortgages, and does not apply to the Home Equity
Conversion Mortgage (HECM) for purchase program.
•Specific conditions and other details of this new temporary policy are in the text of the waiver,
available on HUD's website.

2010-01-11T10:31:00.000-05:00

HUD Repeals FHA Origination Fee Cap

The U.S. Department of Housing & Urban Development (HUD) has issued Mortgagee Letter 2009-53 that eliminates the one percent loan origination fee limit on Federal Housing Administration (FHA) loans, but provides that the FHA will monitor lenders to ensure they are charging "fair and reasonable" fees for all origination services and that it intends to issue future guidance containing fee limits. The letter also clarifies the manner in which fees and charges for FHA-insured loans must be disclosed on the new Good Faith Estimate (GFE) and HUD-1 Settlement Statement.

Enactment of ML 2009-28, Appraiser Independence, will be delayed until February 15, 2010

2010-01-04T10:26:00.001-05:00

Enactment of ML 2009-28, Appraiser Independence, will be delayed until February 15, 2010. ML09-28 (originally planned for a January 1, 2010 implementation) has two parts: a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and b) appraiser selection in FHA Connection. The effective date for both sections of this guidance will now take effect for all case numbers assigned on or after February 15, 2010. This extension will provide FHA and lenders additional time to adjust systems to accommodate the changes.

Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter. However, lenders should be aware that the requirement for inputting the appraiser ID and the appraisal assignment date in the FHA Connection case number assignment screen will be removed. Instead, lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Update Screen once the completed appraisal is received by the lender and prior to closing the loan.

Delayed Implementation Date for ML 2009-51

ML 2009-51, Adoption of the Appraisal Update and/or Completion Report, states an effective date of January 1, 2010. The effective date is being extended and will now apply to all case numbers assigned on or after February 15, 2010. This extension will provide additional time needed by FHA and lenders to adjust their systems to accommodate use of the form.

HUD REMOVES 1% ORIGINATION FEE CAP

2010-01-04T10:14:00.000-05:00

The U.S. Department of Housing and Urban Development ("HUD") released Mortgagee Letter 2009-53, which removes the 1% origination fee cap on FHA-insured loans originated under FHA's standard mortgage insurance programs. HUD made this change to be consistent with recent revisions to regulations under the Real Estate Settlement Procedures Act ("RESPA"), which, as of January 1, 2010, will require mortgage lenders to disclose a single, bundled origination fee on the Good Faith Estimate and HUD-1 Settlement Statement. As this single origination charge must include all administrative and processing fees related to the origination of the loan, as well as both the mortgage lender's and mortgage broker's compensation, HUD recognized that this aggregate charge will often exceed the 1% origination fee cap. Accordingly, to match changes made to Section 203.27 of FHA regulations, HUD will no longer limit the amount of the origination fee charged to FHA borrowers. (Limits remain on the amount of origination fees charged in connection with Home Equity Conversion Mortgages and Section 203(k) Rehabilitation loans.)
Before FHA lenders get excited about unlimited origination charges, HUD reminds lenders that their fees must continue to be "fair and reasonable" for the origination services performed in connection with FHA loans. Moreover, HUD makes clear that it intends to issue additional guidance on the amount of fees that FHA lenders may charge their borrowers. Don’t be surprised if this additional guidance is released in early 2010 and results in a percentage cap on the overall amount of fees that can be charged to the FHA borrower. For now, however, HUD's deregulation of the 1% origination fee cap is welcomed news for FHA lenders ready to comply with RESPA's new disclosure requirements.

2009-12-28T10:55:00.000-05:00

Fannie Mae Announces Deed for Lease™ Program

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on https://www.efanniemae.com/home/index.jsp.

2009-12-10T10:40:00.000-05:00

Mortgage forms and disclosures
The Department of Housing and Urban Development (HUD) has made significant changes to the Real Estate Settlement Procedures Act (RESPA) regulations to ensure estimates are more accurate and to facilitate better comparisons among lenders. Although some parts of the regulation became effective Jan. 16, 2009, use of the new good-faith estimate form and HUD-1 and 1A settlement statements isn’t mandatory until Jan. 1, 2010.

The Federal Reserve Board has made some changes to Regulation Z (Truth in Lending) that affect mortgages, and more changes are coming. It created a new category of “higher-priced mortgage loans,” established new advertising standards, and will require certain mortgage disclosures earlier in the transaction. The changes take effect Oct. 1, 2009, except for the escrow requirement—which takes effect April 1, 2010, for site-built homes and Oct. 1, 2010, for manufactured homes.

The Fed also has proposed changes in the timing of mortgage disclosures and handling of corrections. Proposals on more Reg Z changes are expected later this year for all closed-end and home equity lines of credit.

In early 2009, the Federal Emergency Management Agency finally replaced the Standard Flood Hazard Determination Form, which expired Oct. 31, 2008. The updated form becomes mandatory June 16, 2009, and expires Dec. 31, 2011. Revised interagency flood insurance frequently asked questions also are expected soon. In recent years, noncompliance with the flood insurance rules has generated the most civil money penalties by federal regulators.

2009-12-10T10:24:00.002-05:00

North Star Mortgage still offering VA, FHA and USDA mortgages with credit scores under 620 for the State of Florida

2009-12-10T10:22:00.001-05:00

It took years of back-and-forth, but the federal government finally acted on its effort to simplify the Good Faith Estimate. In 2010 consumers will get to decide whether the government was successful or not. Starting Jan. 1, lenders will be required to use HUD’s new three-page GFE. It uses simplified language and requires lenders to state up front the loan amount, loan term, interest rate, and monthly payment. Armed with these clear and firm facts, consumers can compare lenders’ offers. HUD’s effort is also intended to protect borrowers from big surprises at the closing table. The department revised its HUD-1, so comparisons between the GFE and the final charges are also supposed to be easier to discern. In fact, HUD has imposed strict limits on how much the GFE figures can change. Some charges, like the origination fee, can’t change at all. Others like the title search fee can change but not by more than 10 percent. If the alterations exceed what’s allowed, the parties can still close but they have to fix the discrepancy within 30 days.

Changes

2009-12-10T10:17:00.001-05:00

"Since 1974, the process families go through when they purchase or refinance a home has virtually gone unchanged. Now for the first time in more than 30 years, the housing arm of the government, known as HUD (short for Housing and Urban Development), has released the details of the new mortgage reform that will help families shop for the lowest-cost mortgage available and avoid costly and potentially harmful loan offers from predatory lenders. "