- Good Faith Estimate (GFE) 2010 is introduced January 1, 2010. Six items now required before the loan originator can provide you with a GFE: Name, Property address, Estimated Property Value, Loan Amount, Income, and Social Security Number (Credit Report). Fees locked for 10 business days from issuance of GFE. Designed to protect the consumer from an increase in fees and encourage comparing options. Most likely, will lead to less comparing since a GFE can’t be issued until the loan originator can pull credit.
- Legislation on the table to repeal HVCC.
- Federal Reserve Board debating over Yield Spread Premium (YSP). In the past, YSP was a credit that had been paid to the loan originator by the lender. GFE 2010 changes YSP from a loan originator credit to a borrower credit.
- HUD to suspend the 90 day anti-flipping rule for one year starting February 1, 2010. Existing rule prevents a home owner from selling a home that they have owned for less than 90 days. Lenders still have to approve this new rule.
Posts Tagged ‘Difficult to Get a Mortgage’
Don’t Wait Too Long, FHA Rules are Changing
September 29th, 2009For those of you who have tried to get a mortgage done recently, you have probably realized that option are getting smaller and smaller. If you have a high loan to value (You owe almost as much as your home is worth) you may be limited to an FHA loan. This is a mortgage that will allow you to borrow up to 96.5% of your homes value. (Not including the upfront Mortgage Insurance Premium.) FHA is changing some rules January 1st, 2010 in an attempt to make it easier to get a n FHA mortgage, but these one of these changes could actually have the reverse affect.
Currently, HUD requires that all originators work for a broker or banker that is FHA Approved. The new rule will no longer require that a mortgage broker have this approval, instead it will shift the responsibility to the funding lender. The lender will now have sole responsibility for quality control of the loans. The intent of this new rule is to allow more mortgage brokers to be able to originate FHA mortgages. Some speculate that because of the shift in responsibility, lenders could start to have stricter guidelines as to who can originate FHA loans with them.
If the lenders start to become more restrictive than they already are, it is going to be harder to find someone to do an FHA loan that is not a bank. If you have been thinking about buying or refinancing a home with an FHA loan, it would be wise to do it before the end of the year.
Just don’t fall for it?
September 24th, 2009We have all heard the saying, “If it sounds too good to be true, it probably is”, yet we have all fallen for someone who promised us the world and only delivered us disappointment. In the last month or so, we at The Kunselman Team have started to hear a lot of stories about people who were promised great things from some mortgage broker that they didn’t really know and surprise surprise, the broker did not deliver on their promise. This is not that uncommon in this market because many mortgage brokers are desperate for business and will tell people anything to get a loan. We had a client call us last week because they had decided to work with a broker who promised to close their loan in two weeks when we said it would take about 30 days. The loan didn’t close in two weeks and it still hasn’t closed.
The Kunselman Team has a much better philosophy. We believe in under promising and over delivering. While many brokers will leave 3rd party fees of their Good Faith Estimates to make it look like they are charging less, The Kunselman Team puts every fee that can come up so that there are no surprises except maybe that your are getting back more money than expected. We are also realistic about the time it will take to close your loan. Loans just take longer to do now than they did in the past. Lenders are looking at every detail much more closely than they have in the past and that takes time. If you are working with someone who promises to close your loan in two weeks, get it in writing and make sure you get something if they don’t deliver on their promise.
As always, if you would like to work with the best in the industry, give The Kunselman Team a call so we can help you with all your mortgage needs.
