The Mortgage Porter

Does Your Loan Officer Attend Signings?

May 26, 2011 by Rhonda Porter Leave a Comment

This past month, I have met with more clients than "usual". A typical transaction for me has been pretty much completed over the internet via my secure on-line loan application, with email and over the phone. It was an exception for me to meet clients. This was not because I didn't want to, I simply wasn't asked to and clients opted for the convenience offered by the internet.

This month, I had a spike in face to face meetings with clients. I'm not sure if this is going to be a continued trend or if May's meetings have been some sort of fluke…I do know I really enjoy meeting my clients "IRL" when our schedules allow. Three of these meetings took place when I attended the signings at escrow offices from Federal Way to Lynnwood, and one at a restaurant near SeaTac Airport. All three were first time home buyers. I wasn't really "needed" beyond being there. With having the background of managing an escrow branch for Washington Title, it's crucial to me by the time my clients reach the signing table, their questions about mortgage have been answered. A home buyer or someone who's refinancing shouldn't have to ask their escrow officer about the terms of their mortgage…their mortgage originator should have fully educated their client well before this point. With that said, I see nothing wrong with a borrower asking the signer to explain the terms – the borrower should, however, already understand their loan program.

Regardless of if I'm attending a signing or not, I'm always available to answer any questions that may pop up. And my Processor and I always review the estimated HUD-1 Settlement Statement before my client's appointment to make sure it's as accurate as possible (assuming the escrow company provides it to us, which they do 99% of the time).

Will your mortgage originator join you at the signing table? If this is important to you, then it is something you need to ask a potential mortgage originator BEFORE you decide on which lender you're going to work with. Here are more tips on things to consider when selecting the mortgage professional who will be helping you with your next home purchase or refinance.

Filed Under: Escrow and closing

RIP Mark Haines

May 25, 2011 by Rhonda Porter Leave a Comment

Many of my mornings have been spent watching CNBC's Mark Haines with Erin Burnett and I'm saddened to learn that Mark passed away at the young age of 65. I loved his wit, humor and ability to cut through political bolony.

Here's one of my favorite Mark Haines moments.

My heart goes out to his family and friends.

Filed Under: People

You Have Until Friday to Voice Your Opinion on the Proposed Good Faith Estimates

May 24, 2011 by Rhonda Porter Leave a Comment

The Consumer Protection Financial Bureau would like you to vote on two different proposed mortgage disclosure forms created to replace the current Good Faith Estimate and Federal Truth in Lending documents. You have until Friday to make your selection between the Pecan Bank or the Ficus Bank examples. Both contain (and are missing) the same information.

I personally prefer Ficus Bank (the darker example) as it discloses key information at the top of the form, including the interest rate and monthly payment. The Pecan example features projected payments along the top section along funds due at closing being the very first box on the form. I've written more about the proposed disclosures at Rain City Guide. It's really a choice of style and arrangement of content.

I still believe that most consumers would rather return to a detailed Good Faith Estimate featuring all closing cost itemized instead of having certain cost lumped together where it's hard to see exactly what they're paying for. Why not have the Good Faith Estimate resemble an estimated HUD-1 Settlement Statement so that there is congruency between the beginning of the transaction and closing?

I've provided my opinions and vote to the CFPB, have you?

After you visit CFPB's site and have voiced your opinion, I'd love to know which selection you made and why.

Filed Under: Good Faith Estimate

“Going Above and Beyond” is Doing Our Jobs

May 22, 2011 by Rhonda Porter 2 Comments

I received a really nice thank you card from Shannon Ressler at Findwell Realty last week that I want to share with you. We recently helped Shannon’s clients buy a vintage bungalow that was a short sell in the Magnolia neighborhood of Seattle using an FHA insured mortgage. Being a short sell and an FHA insured loan, there was no shortage of paper work and the transaction was coming “down to the wire”. [Read more…]

Filed Under: Seattle & Washington Real Estate Tagged With: real estate agents, reviews

Fannie Mae issues FAQs on the Pending Expiring Loan Limits: 2012 Limits Could Be Lower

May 19, 2011 by Rhonda Porter Leave a Comment

A couple days ago, Fannie Mae addressed questions regarding the high balance loan limits that are set to expire effective with Notes dated October 1, 2011 or later. The current (technically "temporary") high balance limit in the greater Seattle – Bellevue area is $567,500, the new loan limit ("permanent") after September 30, 2011 is $506,000.

Here are some points from Fannie Mae's FAQ's:

Q2. Are the loan limits definitely expiring? What would it take to get them extended or changed from the permanent loan limits?

Congress would have to take action to extend or revise the temporary loan limits, which were originally put in place through the Economic Stimulus Act of 2008 and have been extended through a series of additional legislative actions to provide support to the mortgage market…. The February report to Congress by the Departments of Treasury and [HUD] stated "the Administration recommends that Congress allow the temporary increases in limits that were approved in 2008 to expire as scheduled on October 1, 2011 and revert to limits established under HERA [Housing Economic Recovery Act]." As such, we do not expect any further extensions.

Q3. What will happen in 2012? Could permanent loan limits go down?

…the Federal Housing Agency (FHFA) is required to evaluate loan limits annually, and then revise limits accordingly. The first set of HERA loan limits (a.k.a. "permanent" loan limits) was established for calendar year 2009 based on the median home prices….While there have been median home price declines over the past three years, FHFA followed a policy to "not permit declines relative to the prior HERA [permanent] limits."

…no changes are expected to those permanent limits between October 1, 2011, and December 31, 2011. FHFA has not indicated whether it will continue its policy of not permitting declines in HERA-based limits beyond 2011…2012 loan limits could decline from those that will apply in the fourth quarter of 2011.

Loan limits for 2012 are expected to be released by FHFA in mid-November of this year. Current counties that have temporary "high balance" loan limits in Washington State are:

King
Snohomish
Pierce
San Juan
Kitsap
Jefferson
Clark
Skamania

Only King, Snohomish, Pierce and San Juan Counties will continue to have high balance loan limits from October 1, 2011 to December 31, 2011. The other Washington counties listed (and all counties not listed) above will be returning to a conforming loan limit of $417,000 through December 31, 2011.

We don't know what 2012 brings for loan limits. We should learn more in November.

If you would like me to provide a rate quote for your home located anywhere in Washington, click here.

Filed Under: Fannie, Freddie and FHFA