Has your Bank turned down your refi?

July 5, 2012 by 1 Comment

IStock_000014142621XSmallIn a time when one might assume that their bank would work with them to refinance their home, many Washington homeowners are finding quite the opposite. I’m hearing from local homeowners who have made their mortgage payments on time and who qualify for refinance (income, employment and assets) yet their bank is either unwilling to provide the refinance or is taking several months to close it.

For example, several large banks will only do FHA streamline refinances on mortgages they currently service.  You can have your checking and savings accounts any of these banks, but if they don’t currently service your mortgage, it’s my understanding they will not assist you with your FHA streamlined refinance.  NOTE: We can help you refinancing your FHA streamlined mortgage from any bank as long as your home is located in Washington.  

Banks are also being very selective when it comes to HARP 2.0 (home affordable) refinances. Some are electing not to help mortgages they currently service because of lpmi (lender paid mortgage insurance) or pmi when many of these loans are eligible to refinance. 

Bottom line, if your bank or mortgage servicer has turned down your refinance (or if they’re stalling the process) and your credit, income and assets are good: get a second opinion.  

If your home is located anywhere in Washington state, I’m happy to review your scenario. I’ve been originating and closing refinance and purchase mortgages at Mortgage Master Service Corporation since April 2000. 

Filed Under: FHA, HARP - Home Affordable Refi, Refinance Tagged With: , , ,

Happy Independence Day!

July 4, 2012 by Leave a Comment

Our family, including Scupper, hope you and yours have a wonderful, safe and sane Independence Day.

2012-07-01 19.47.50

Mortgage Master Service Corporation is closed today and will reopen for business as usual on Thursday morning.

Filed Under: Just for Fun

What May Impact Mortgage Rates: July 2 – July 6, 2012

July 2, 2012 by Leave a Comment

Seattle_fireworksWe have a short week packed with economic data with Independence Day on Wednesday and the Jobs Report on Friday.  Here are some of the economic indicators that are scheduled to be released this week:

  • Monday, July 2: ISM Index.
  • Wednesday, July 4: Happy Independence Day!
  • Thursday, July 5: ADP National Employment Report, Initial Jobless Claims and ISM Services Index
  • Friday, July 6: THE JOBS REPORT

[Read more…]

Filed Under: Economy, Interest Rates

From the Mortgage Junk Mail Bag

June 23, 2012 by 2 Comments

JunkIt’s been a while since I’ve shared a POS (piece of solicitation) from the junk mail bag. I don’t have an issue with lenders trying to obtain business from home owners by mailing marketing pieces…although I do wonder why they must resort to marketing to strangers instead of working with past clients.  

This letter was sent last month. It was packaged in a folding security envelope to look as if it may have contained important information, such as the code to an ATM card. It was only a trick to get one to open it. 

They start with quoting an APR of 3.125% for a 30 year fixed rate in the upper right corner with a very low payment of $651 on a $250,000 loan amount. That’s a great rate and an amazingly low payment!  However if you read the very tiny print on the bottom of the page, you’ll see that what the rate offered is actually based on a 5 year interest only adjustable rate mortgage (ARM).  Why not have that information in the upper right corner with the teaser rate and payment? 

The lender who sent this is from a company in California. I really recommend working with lenders in your own state where processing and underwriting are done locally as well. Why would they have to mail to Washington state home owners to try to get refinance business?

I also recommend that you use the NMLS Consumer Access site to research any Mortgage Loan Originators you’re considering allowing to assist you with your refinance. The NMLS Consumer Access site will disclose their employment history and whether or not they’re licensed to originate mortgages in Washington.  I think it’s also a good idea to “google” their name and the company’s name to learn more about them. 

Instead of calling a stranger from out of state for your mortgage needs, do your own research. 

If your home is located anywhere in Washington state, I’m happy to help you with your refinance or financing your home purchase. And by the way, I have never bought “a lead” or sent out a piece of junk mail to try to solicit a mortgage prospect.

Filed Under: Opinion, Rant Tagged With:

HUD rescinds recent guidelines on collections and disputed accounts

June 19, 2012 by Leave a Comment

Earlier this year, HUD released Mortgagee Letter 2012-3 which featured tougher underwriting guidelines. This week they released ML 2012-10 which effective immediately recinds the guidelines that would impact:

  • paying off collections and judgements; and
  • disputed accounts

All other guidelines address in ML 2012-3, including those that address income of self employed borrowers, are still going into effect.

Per ML 2012-3, the old guidance (which is now the “effective” guidance per ML 2012-10) does not automatically require collections to be paid off however judgements do need to be satisfied and paid off.  Disputed accounts are to be referred to underwriting (and most likely will need to be removed from the credit report).

Again, we’ll need to see how banks and lenders treat this rescission of guidelines or if they opt to stick with the tougher requirements by creating their own underwriting overlays.

Filed Under: FHA, Underwriting and Qualifying

Banks playing hardball with FHA Streamline Refi’s: ACT NOW!!

June 18, 2012 by 3 Comments

No sooner had the reduced MI gone into effect with FHA streamline refinances, some banks announced that they would only provide FHA streamline refinances on mortgages they currently service.  I can understand a bank doing this on the “non-credit qualifying” refinances where borrowers do not document their income or assets, however I have a hard time accepting this when a borrower is doing a full “credit qualifying” FHA streamlined refinance.

By limiting availability of a program to home owners who are ABLE AND WANT to continue to make their mortgage payments and take advantage of the historically low mortgage rates, these banks are hampering the recovery of our housing markets.

Wells Fargo, with a significant market-share of FHA insured loans, was the first bank to come out with this announcement. If you have an FHA mortgage with Wells Fargo, I can help still you with your refinance if your home is located in Washington. I just have to keep your new FHA loan with Wells Fargo. Other banks have followed suit with a few giving us deadlines of up to this Friday, June 22, 2012 for accepting FHA streamline loans they do not service.  

UPDATE: Received a notice of one bank adding a price hit for FHA streamlined refinances… somehow I don’t think HUD invisioned banks cherry picking and charging more for this program when HUD reduced the mortgage insurance premiums.

I continue to get announcements from the various banks and lenders we work with. Thankfully not all banks are following Wells Fargo’s suit.

BOTTOM LINE: if you have an FHA mortgage and are interested in an FHA streamlined refinance, please don’t delay! Banks are making them less available.

If your home is located anywhere in Washington state, I can help you with your FHA insured loan.  We are *currently* working with lenders who will accept FHA loans currently being serviced from other banks.  Click here to apply.

Filed Under: FHA, Refinance Tagged With:

What May Move Mortgage Rates the week of June 18, 2012

June 18, 2012 by Leave a Comment

Here are a few of the scheduled economic indicators which may impact mortgage rates this week:

Tuesday, June 19: Housing Starts and Building Permits.

Wednesday, June 20: FOMC Meeting

Thursday, June 21: Initial Jobless Claims, Existing Home Sales and Philadelphia Fed Index

Remember, mortgage interest rates are based on mortgage backed securities (bonds) and when the stock market is rallying, rates tend to trend higher. The reverse is also true, as investors will seek the safety of bonds when stocks are tanking.

As Greece seems to be out of the hot water for now, the next event to watch for may be the results of the FOMC Meeting on Wednesday. All eyes and ears will be tuned in for whether or not there will be more stimulus with QE3.

I post live rate quotes and mortgage tid-bits on Twitter and my Facebook page. You’re welcome to follow me (you can un-follow anytime).

If you would like to provide you with a personal rate quote for a home purchase or refinance on your home located anywhere in Washington state, click here.

Filed Under: Economy

FHA Streamlined Refi Revamped and Revisited

June 14, 2012 by Leave a Comment

There is a lot of interest in the FHA streamlined refinance since HUD has greatly reduced the mortgage insurance premiums for some home owners who originated their existing FHA mortgage May 2009 and earlier. FHA streamlined refinances are designed to reduce mortgage payments and borrowers are not allowed to take “cash out” or pay off existing helocs or second mortgages. In order to qualify for an FHA streamlined refiance, the borrower must have made at least six payments on the FHA loan and needs to be current with the mortgage.  Here are a few tips on FHA streamlined refinances I thought I’d share with you.

No appraisal required. If you opt to not have an appraisal, then your new loan amount may not exceed your current loan amount. This means that your closing cost and prepaids/reserves cannot be financed (upfront mortgage insurance is still allowed to be rolled into the loan). Closing cost and prepaids/reserves may be paid for with interest rate rebate credit or cash at closing.  If you opt to have an appraisal, then your loan amount may be increased.

Credit qualifying vs non credit qualifying.  FHA streamline refi’s may not require verification of your income or assets (non-credit qualifying). Did you know that you may qualify for improved pricing if you opt for a credit qualifying FHA streamlined refi? Pricing varies throughout the day and when I’m locking an FHA streamlined refi for a Washington area homeowner, if pricing is the same, I’ll opt for non-credit qualifying. However if pricing is improved for a credit qualifying streamlined refinance, I’ll advise my client of the pricing differences and let them decide which route they prefer.

Underwriting overlays. Although HUDs guidelines might state something different, the banks and lenders we work with allow us to help home owners who have a low-mid credit score of 640 or higher. If your credit score is below 640, you may want to consider working directly with your bank.

Net tangible benefit. HUD requires that the loan “makes sense” and that is defined as a reduction in your mortgage payment (principal, interest and mortgage insurance) of at least 5%. It may also mean refinancing your FHA ARM into an FHA fixed rate product. Unfortunately, if you’re refinancing an FHA 30 year to a FHA 15 year fixed rate product, and your payment does not go down by 5%, you will not meet the current “net tangible benefit” requirement – even if you’re doing a “credit qualifying” FHA streamlined refinance and fully disclosing your income. This is something HUD needs to correct, in my opinion.

Reduced mortgage insurance premiums. HUD has announced reduced mortgage insurance premiums (both annual and upfront) for FHA loans that were endorsed (insured) by HUD prior to June 1, 2009.  FHA loans are endorsed by HUD after closing – sometimes several weeks after closing so it’s possible your FHA mortgage closed in May of 2009 and not endorsed until after the cut-off date.

Credit of your existing upfront mortgage insurance premium (UFMIP). If your existing FHA insured mortgage was originated over the past three years, it may not quaify for qualify for the reduced mortgage insurance, however, you probably will receive a refund of a portion of the original UFMIP. The refund is credited towards the closing cost of your new FHA loan and ranges from 80% to 10% of the original UFMIP by the 36th month.

FHA streamlined refinances are available for non-owner occupied homes too! If you have a home that has been converted to a rental property and the underlying mortgage is FHA, it’s eligible for an FHA streamlined refinance as long as the owner occupied it for a least 12 months.  With a non-onwer occupied FHA streamlined refinance, it must be done without an appriasal so no closing cost may be financed (except the upfront MIP).

If you are interested in refinancing your existing FHA insured mortgage on a home located anywhere in Washington, I’m happy to help you. I’ve been originating FHA home loans at Mortgage Master Service Corporation since April 2000, where we have in house FHA underwriters at our main office in King County.  Click here for your FHA rate quote.

Filed Under: FHA, Investment Property, Refinance Tagged With: , , , , , ,
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