What is Happening in the Mortgage Market

FHA Update for Texas Home buyers and refinances
August 20th, 2013 5:47 PM

FHA rules change to makes it easier to qualify for Texas home buyers with recent short sales, foreclosures or bankruptcy.  Everything depends on when your loan officer seeks acceptance from HUD on your behalf.  This is called requesting a case number.

Conversely for home buyers with large outstanding collections the process could become a little more difficult. If you are one of those buyers you will want to plan ahead.

With Mortgagee Letters 2013-24, 25, & 26, the policy change in several areas of derogatory credit makes it easier for borrowers to qualify. Here's what you need to know about these changes:

Effective for case numbers assigned on or after August 15, 2013 through September 30, 2016

1. For Purchase Money Loans only (excluding the HECM). Borrowers that experienced an Economic Event (a decrease of income by 20% or more for at least six months) that resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy, may be eligible if:

 

  1. A. The loss of employment or income was due to an extenuating circumstance beyond his or her control and can be documented;
  2. B. A Satisfactory credit history has been restored for a period of 12 months; and
  3. C. Housing counseling has been completed.

 

Effective for case numbers assigned on or after October 15th, 2013.

Changes below apply to all FHA programs except FHA Non-Credit Qualifying Streamline Refinances and the Home Equity Conversion Mortgage.

1. Judgments must be paid off or the borrower must have a payment arrangement that has at least a 3 month payment history prior to the loan application and paid according to terms.

2. On manually underwritten loans with collections totaling less than $2,000, FHA does not require resolution of the accounts. However, the underwriter must document an acceptable reason for approving the loan and the borrower must provide a letter of explanation and supporting documentation if necessary.

3. For loans with Collections or Judgments that receive a TOTAL Mortgage Scorecard decision of 'Accept/Approve' the lender DOES NOT have to provide a letter of explanation or documentation from the borrower. If TOTAL generates a 'Refer' decision, the loan must be manually underwritten.

4. In all cases, if the total of all collections is equal to or greater than $2,000, the borrower will have to do one of the following:

 

  1. A. Pay off collections in full (funds must be verified).
  2. B. Make payment arrangements with the creditors (monthly payment to be included in the ratios).
  3. If no payment arrangement is made, then 5% of the balance(s) must be included in the ratios (borrower must qualify with this additional payment).

 

5. For disputed accounts totaling less than $1,000, the loan is not automatically required to be manually underwritten when an 'Accept/Approve' is received. Loans with disputed accounts equal to or greater than $1,000 must be manually underwritten.

6. Medical collections and charge offs are excluded from the above guides and DO NOT require resolution.

To get started now on your new home purchase call us today at 972-661-5136 I click the link below to apply online.

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Posted in:General
Posted by Richard Woodward on August 20th, 2013 5:47 PMPost a Comment

Important Changes Coming to Reverse Mortgages

On Friday, August 9th, the President signed a bill that will impact aspects of the reverse mortgage loan program. The Reverse Mortgage Stabilization Act of 2013 (H.R. 2167) allows FHA (Federal Housing Authority) to make changes to the reverse mortgage program without prior approval from Congress. These changes will likely impact the number of seniors who qualify for the program AND may restrict the allowable loan proceeds. Some changes that FHA is planning on implementing to the HECM (Home Equity Conversion Mortgage) loan program include:

  • Modifications to current HECM standard product that may reduce the amount of money you can qualify for.
  • New restrictions that would limit access to loan proceeds based on existing mortgage and other obligations.
  • The introduction of financial assessments, which means seniors with poor credit, a history of property tax or insurance delinquencies, or cash flow constraints may no longer qualify.


These changes are expected to be announced within the next 30 days, and are anticipated to be implemented by October 2013.

If you have been considering a reverse mortgage, call us today to find out how these important changes may affect you. These program modifications are a step toward a healthy future for reverse mortgages, and thus a positive step for seniors who want to age in place. However, after this transition, some seniors who are considering a reverse mortgage may no longer qualify.

It is important to call before it’s too late. Call 972.66.15136 now to speak with a reverse mortgage professional with absolutely no obligation. They will walk you through your specific questions or concerns, at your pace. We will always give you the patient and personal service you deserve.


Posted in:General
Posted by Richard Woodward on August 26th, 2013 9:21 AMLeave a Comment

August 12th, 2013 12:40 PM

Marketing your listing and branding yourself can be expensive but social media can help reduce those cost. Take Twitter for example.

Twitter on MortgageProsus.com The rules of marketing remain constant, but the media has changed drastically. Consumers have adopted social media quickly, with Twitter growing faster than most. But don't just open a profile and start tweeting! Here are six ways you can optimize your Twitter strategy for maximum business attraction:

  • What's In A Name? Choose your Twitter ID carefully–make it memorable and appropriate for doing business. Your own name is always a good choice. Make sure email and social media user names are similar to avoid confusion. Upload your photo, too: Profiles with photos on average have 10 times more followers.
  • Wash, Rinse, Retweet. When you embed outside photos, links, and videos into your tweets the likelihood of getting retweeted, attracting more followers, or getting a call goes up exponentially: 19 percent of all tweets have links, but 57 percent of those get a retweet. Also, asking for retweets with "pls RT" or "please RT" or "Please Retweet" scores 50 percent of the time.
  • Verbs–That's What's Happening. "The Science of Twitter" webinar from HubSpot says verbs and adverbs get far more retweets than nouns or adjectives.
  • Hashtag Heaven: Hashtags make tweets searchable. Make sure to incorporate real estate terms into your hashtags: #RealEstate, #Realtor, #RE, and #TXRealEstate (or whatever state of the Union) work best.
  • Your Ad Here. You want as much organic traffic as possible, but inexpensive Twitter ads can help you target leaders and key demographics for your tweets. Check Twitter for Business for details.
  • Rules of Engagement. People refer to Twitter as a "micro-blog" for good reason, and many of the same rules apply. Post too seldom and you'll lose readership, post too much and lose engagement. Most retweets occur between 3-5 p.m. EST; readership declines by 50 percent after the third tweet in a single day, regardless.

Posted in:General
Posted by Richard Woodward on August 12th, 2013 12:40 PMLeave a Comment

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