As General Colin Powell said in an interview last night, "every day should be Veterans Day". A heartfelt thank you to those who serve our Country and their families.
Mortgage Master Service Corporation is closed today in observance of Veterans Day.
Before You Go to Your Signing Appointment [Updated]
November 10, 2011 by 8 Comments
EDITORS NOTE: With the introduction of CFPB’s Loan Estimate and Closing Estimate, some of the information below may not apply if your loan application was originated October 3, 2015 or later as the 2010 Good Faith Estimate and HUD-1 Settlement Statement have been retired. Watch for an updated post soon! Click here for the updated post.
When I originally wrote this post back in January 2007, we didn’t have the Good Faith Estimate that HUD created and implemented in 2010. Although this GFE has caused greater confusion and has overall been a failure (a new version is should be available in 2012), the one positive feature about the 2010 GFE is that lenders are bound by what they quoted on their last Good Faith and page three of the HUD-1 Settlement Statement clearly compares what was quoted by the Mortgage Originator and what the final fee at signing is. In addition, there are certain tolerances that limit how much more a fee at closing can be for some of the lender fees.
What’s Moving Mortgage Rates, November Holidays and More!
November 8, 2011 by Leave a Comment
Europe continues to impact our markets as we watch the drama in Greece and Italy continue to unfold. It's amazing to some that something that is happening so far away may impact your mortgage rates. This is because mortgage rates are based on mortgage backed securities (bonds) and investors will either seek the safety of bonds over stocks when stocks are deteriorating or will opt for stocks and sell bonds when a better return is available. Basically, bad economic news tends to be good for mortgage rates (not so good for our retirement accounts) and good news, as well as inflationary data, tends tends to drive mortgage rates higher.
This afternoon, we'll have the results of a $32B auction of 3-year Treasury Notes. We don't have any major economic reports scheduled to be released until Thursday, November 10th, with the weekly Initial Jobless Claims. On Friday, we have Consumer Sentiment from the University of Michigan. On Friday, the bond markets will be closed in observance of Veterans Day.
Something else to keep in mind with November is that it is a shorter month as we are beginning "the holiday season". Some of these holidays may impact your refinance waiting periods or when you may be able to close.
Friday, November 11, 2011 is Veterans Day. Veteran’s Day is a federal holiday, therefore, this date cannot be included when counting the waiting period for rescissions for refi's, MDIA (initial waiting period and re-disclosure waiting period) or HVCC. In addition, this date is not counted in the 3 day disclosure requirement for initial disclosures or re-disclosures. Banks, county courthouses, and Mortgage Master Service Corporation will be closed for business on Friday, 11/11/11.
Thursday, November 24, 2011 (Thanksgiving): Thanksgiving is a federal holiday, therefore, this date cannot be included when counting the waiting period for rescissions, MDIA (initial waiting period and re-disclosure waiting period) or HVCC. In addition, this date is not counted in the 3 day disclosure requirement for initial disclosures or re-disclosures. Banks, the post office, the county courthouses, and Mortgage Master Service Corporation will be closed for business on Thursday, 11/24/11.
Friday, November 25,2011: This is NOT a federal holiday. While courthouses and Mortgage Master Service Corporation are closed, this date can be included in the waiting period for rescissions, MDIA (initial waiting period and re-disclosure waiting period) or HVCC. In addition, this date is counted in the 3 day disclosure requirement for initial disclosures or re-disclosures.
Also in November…
In a few weeks we should have more details about HARP 2.0 and learn what 2012's loan limits will be for Conforming and FHA loans. And hopefully this month, there will be decision on the VA funding fee, which was earlier reduced and then retracted. It's quite possible that conforming and FHA loan limits may be reduced further – we really have no idea what Congress is going to agree on at this time. Currently the conforming and FHA loan limits in King, Pierce and Snohomish County is $506,000 (reduced from $567,500 on October 1, 2011). If you have a "high balance" loan amount and are considering refinancing or buying, you may be gambling becoming a "jumbo loan" with each day you wait.
If you have questions or need help with a mortgage on a home located anywhere in Washington, please contact me. I am a Licensed Mortgage Originator who not only provides information to consumers via my blog, I help people with homes in Seattle, Redmond, Tacoma, Everett and beyond with their refinance and home purchase mortgage needs. I also adopt mortgages. If you haven't heard from your mortgage originator in the last six months, it's quite possible they are either no longer licensed or may have chosen another career. If your home is in Washington, and you would like to be treated like one of my clients (added to may mailing list, receive updates and a review of your current mortgage – no refinance or new mortgage is required) please contact me.
It’s time for HUD to revamp the FHA Streamlined Refi
November 2, 2011 by Leave a Comment
HUD's Shaun Donovan was recently promoting Obama's jobs bill and the recently revised the Home Affordable Refinance (aka HARP 2.0). Fannie and Freddie have revamped the Home Affordable Program to reduce the closing cost and eliminate the need for an appraisal on many qualified homes.
From Donovan last week on HARP for conventional refinances:
"…There are still millions of Americans who have worked hard and acted responsibly, paying their mortgage payments on time. But because their homes are worth less than they owe on their mortgage, they can’t refinance….
Just yesterday, the FHFA announced changes that will help more responsible borrowers take advantage of today’s low mortgage rates. These changes will knock down barriers such as closing costs and fees that can sometimes cancel out the benefit of refinancing altogether.
And by creating more competition so that consumers can shop around for the best rates, these changes will save homeowners on average $2,500 per year — that’s the equivalent of a pretty good-sized tax cut…"
With HUD promoting HARP 2.0, I'm hoping that they're taking a strong look at their own FHA Streamlined refinance. FHA streamlined refi's already do not require an appraisal as long as the loan amount is not being raised over the balance of the existing FHA loan.
The problem with the FHA streamlined refinance is that with the last adjustment to FHA's annual mortgage insurance and funding fee, it's more difficult to have these refi's pencil out. The annual premiums are so much higher than past insurance premiums that despite today's much lower rates, the higher insurance fees often cancel out the reduced rate benefit. Seattle area and other home owners who are not underwater with their home values may be able to switch to a conventional mortgage (with or without private mortgage insurance depending on the loan to value) and an appraisal will be required to prove the current value of the property.
In my opinion, with FHA streamlined refi's, HUD should either allow a reduced mortgage insurance rate for streamlined refi's and perhaps not offer a credit of the remaining upfront mortgage insurance premium. VA's IRRL loans offer a reduced funding fee of 0.5% for refi's.
Another option would be for HUD to allow the FHA borrower to refinance their FHA mortgage with the same FHA mortgage insurance premiums of their current FHA loan.
HUD should also make it easier for borrowers with FHA ARM's to be able to do a streamlined refi into a fixed rate program. Current guidelines require a reduction in payment of 5% and a caps the interest rate at no more than 2% higher than the ARM. If the borrower qualifies for the higher payment and they are opting for a fixed rate program, they should be allowed to do so. Currently this eliminates borrowers from being able to streamline refi from an adjustable rate to a 15 year fixed.
HUD already has the risk with the loan, why not help Americans with FHA insured loans reduce take advantage of this current low rate environment by making FHA streamlined refinances more feasible?
Mr. Donovan, it's time for HUD to knock down barriers such as closing costs and fees that can sometimes cancel out the benefit of refinancing altogether for FHA streamlined refinances.
EDITORS NOTE: This post was updated 11/21/2011 with the addition of the paragraph addressing changing the requirement for a steamline refinance out of an adjustable rate.
Mortgage Master Service Corporation receives Outstanding Lender Award
October 28, 2011 by Leave a Comment
I'm very proud of my employer, Mortgage Master Service Corporation, the Porter family and my co-workers for being recognized last night at the Washington Association of Mortgage Professionals (WAMP) 2011 Leadership Awards for Outstanding Lender (retail mortgage company).
Mortgage Master Service Corporation was established in 1976 by the Porter family (my in-laws) and it was such an honor to be there with Marilyn Porter, President of Mortgage Master, and my sister-in-law, to receive the award.
I'm honored to be one of four finalist for Outstanding Mortgage Originator in Washington State by WAMP.
Congrats to all the nominees and those who took home awards last night. It was a fun evening made extra special by enjoying it with my sister, Nicole Christy, Frank Garay and Brian Stevens, Anny Havland as just few of the fine folks at our table. And it was nice to so many old friends after being in the industry for 25 years.
Photo credit: Nicole Christy (my sister and Account Executive at Kinecta Credit Union).
Washington Association of Mortgage Professionals honors the “Best of the Best” Tonight
October 27, 2011 by Leave a Comment
Tonight the Washington Association of Mortgage Professional is celebrating their 25th anniversary with a formal awards gala recognizing individuals and companies who have been nominated by their peers as being the best in Washington.
I am honored to be one of four finalist for Outstanding Mortgage Originator and that my employer, Mortgage Master Service Company is one of three mortgage companies in the state being recognized as an Outstanding Retail Lender. Mortgage Master Service Corporation is owned and managed by my in-laws, so I'll be attending tonight's event with my sister-in-law and President of Mortgage Master Service Corporation, Marilyn Porter. The family affair continues as we'll be sitting at my sister's table, Nicole Christy, who's an Account Executive for Kinecta Credit Union.
It's going to be a special evening regardless of who leaves the event with an award.
WAMP's Leadership Awards Gala begins tonight at 6:00 pm at the Renaissance Hotel in Seattle. More info here.
Announcing the New & Improved Home Affordable Refinance Program (HARP 2.0)
October 24, 2011 by Leave a Comment
We've been waiting to see what the "new Obama refi program" would be and this morning, the Federal Housing Finance Agency published a news release announcing new changes with the goal of reaching more borrowers. Home Affordable refinances are available to home owners who have a mortgage that is securitized by Fannie Mae or Freddie Mac on or before May 31, 2009.
Here are some of the changes that are being made to HARP:
- Removing the 125% loan to value ceiling for fixed rate mortgages. If refinancing into an adjustable rate mortgage there is a 105% cap.
- Eliminating the appraisal where there is reliable AVM estimate available. Currently some Fannie Mae HARP refi's have qualified to have appraisals waived, it appears this may become more of the norm with HARP refi's.
- Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and reducing fees for other borrowers;
- Extending the end date of HARP until December 31, 2013 for loan originally sold to Fannie or Freddie on or before May 31, 2009 (note – the date a loan was sold to Fannie or Freddie is different than the date you closed on your refinance).
Borrowers must be current on their mortgage payments with no late payments in the past 6 months an do not have more than one late payment in the past 12 months.
HARP refinances are available for single family dwellings and condos as well as owner occupied, second homes and investment properties.
You DO NOT have to use your current mortgage servicer (who you currently make your mortgage payments to) for your Home Affordable Refinance unless you currently have private mortgage insurance. If your home is located anywhere in Washington State, I can help you with your mortgage needs.
If you have been turned down for a Home Affordable refinance because of a low appraised value and you otherwise qualified – this is your second chance!
More information is to be available by November 15, 2011. Stay tuned!
UPDATE: Here are some tips for preparing for your HARP 2.0 refinance BEFORE you apply.
Conforming and FHA Higher Loan Limits MAY be Returning
October 21, 2011 by 1 Comment
The Senate has passed an amendment that will bring the temporary loan limits back through December 31, 2013! In the Seattle/King County area, this means that the FHA and conforming high balance loan limit would increase from $506,000 to $567,500.
This still needs to pass the House.
It's like deja vue all over again! Congress yo-yo'd the loan limits a few years ago between the high balance and temporary high balance loan amounts. Should Congress pass this and restore the higher loan limits, it may take banks some time to adjust to the changes.
Stay tuned!
Recent Comments