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on Thu Apr 19 2018, 9:02 AM
I have been an Underwriting Manager, Operations Manager and Training Manager for over 20 years. I can assure you that everywhere I have worked rental history has been taken heavily into account when reviewing a potential borrower's liability payment history. It is considered at the top of the payment hierarchy and adds or subtracts from the layering of risk of the overall loan. I am not sure what companies are not considering rental payments in their underwriting reviews, but maybe those companies need underwriting training, not people spending time doing research on something that should be an underwriting standard.
on Wed Apr 18 2018, 2:22 PM
Costs to originate mortgage loans are overwhelming many lenders. Direct-to-consumer models are now trending as one remedy. Digital mortgages are going from "nice to have" to "must have." Gained efficiencies and cost reductions from using a true point of sale platform like BeSmartee is a viable tool to combat rising costs.
on Tue Apr 17 2018, 11:09 PM
Am Juliana Abel, am here to testify on how i got my loan from Michael Welsh loan company successfully without any delay, after going through hell in the hands of those fake lenders who scammed me of my little hard earn money, But all the same am so happy right now God directed me to a reliable loan lender Michael Welsh where i finally got my desire loan amount, here is Michael Welsh company Email if you need loan too.(michaelwelshloanservice@gmail.com)
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Tue Apr 10 2018, 2:14 PM
These results from polling in March showing such an increase in those indicating it is a good time to buy a home compared to February when there had been a decrease in favorable responses, are certainly boosted by optimism in the overall direction of the economy, as you point out. March thru June seems to have been the hottest time for home sales for some years now in our area. I would also be interested in adding a question in polling of would be home buyers: "how often have you viewed televised shows on home shopping and renovation on TV or the internet? I think these shows inspire more people to want to own their own home.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Tue Apr 10 2018, 1:53 PM
Pauline, You might look into possibly utilizing a DPA program be it a "silent second" in which you owe the money provided for the down payment but do not make any payments on it until the first mortgage is paid off or you sell the home. A grant is another possibility wherein after a period of time the assistance loan is forgiven. There are income restrictions on obtaining these. However, if you do not quite fall within the guidelines regarding income we provide one down payment assistance program with no restriction on income level. If within certain income parameters it can eventually be a forgiven debt. Otherwise, it would be like a "silent second". In some cases one could even get assistance on closing costs (income restrictions). In high priced areas home buyers with only one person moving in, have qualified while making beyond $100,000 a year.
on Thu Apr 5 2018, 2:32 PM
I would love to buy a house or townhouse here in Los Angeles. I can afford the monthly payments, but I'm not going to drain my IRA for the down payment. That's been the main reason why I am unable to purchase another home.
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Thu Apr 5 2018, 11:10 AM
I can't say I find month-to-month changes in average LTV's or credit scores indicative of decreased "mortgage credit availability". If agency requirements haven't tightened (which they haven't), fluctuations in loan parameters are really more a gauge of borrowers' qualifications rather than mortgage availability.
on Thu Mar 29 2018, 10:57 PM
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on Sat Mar 24 2018, 8:37 PM
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on Thu Mar 22 2018, 11:01 AM
"a huge dose of fairness" . Self servings comments like these from Florida's Realtors Vice President help explain why the real estate industry has a bad reputation. In typical Realtor fashion he does not look at what the long term consequences would be of automatic debt forgiveness, my guess is all he is worried about is earning a commission.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Mar 16 2018, 2:00 PM
Thanks Michael. We fixed it.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Wed Mar 14 2018, 8:54 PM
Jann, you provide a reaffirmation of the importance of location, location, location even for millennial homebuyers as it has been for gen x and baby boomer homebuyers. It is one thing to look at commuting over an hour to a new housing development in a semi rural area from work in a metropolitan or suburban area, and another to look where they really want to be...closer to work and often closer to more cultural/entertainment amenities along with access to better schools. In my state we see new home developments are cropping up all over the place in big numbers if not sufficient numbers. The big challenge is building in specific metropolitan/suburban areas for which there is a very strong demand for housing. Potential construction in these areas are far from large as in the agricultural areas converted to housing, and thus usually only a few, small lots. The so called NIMBYS in suburban areas...oftentimes unfairly described that way...could be already feeling crowded by adjacent housing. Housing advocates are often asking them to allow new construction at a level that has been inappropriate for a more suburban, non metropolitan area. Nonetheless, the housing need is real, and the desire to purchase by Mellennials will only continue to increase. So if there are areas like on the West Coast...greater Seattle, Portland and San Francisco where businesses are growing and prospering in record numbers and in constant need of new employees, there is an obvious need for more housing. That only 2% of Mellennial homebuyers are purchasing condos does lead one to believe that there is a shortage of affordable condos in the metropolitan or suburban areas they wish to buy in. At some point young people planning a family generally want a single family house but many will initially purchase a condo when it is affordable to them. I currently have a loan in process for a Mellennial purchasing a condo in a desirable part of a city. This is one unit in a former warehouse converted to a condominium complexe. More of these are needed all over the S F Bay Area and single family houses where ever they can still be built. However, many Mellennials who insist on a single family home over a condominium will need to accept making a long commute!
on Mon Feb 12 2018, 10:20 AM
Under the new Tax Reform , interest on 2nd loans is not tax deductible. This means that all those folks with ultra low fixed rates will have to refi into a higher rate if they want to extract equity with tax advantages. That is if you meet the $750,000 loan max threshold.
on Mon Feb 12 2018, 9:32 AM
When are lenders going to jump back into 2nd Mortgages. I believe they are really missing out. This is a great way to pick up the slack for refis and not to mention help with future demand!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Feb 9 2018, 8:06 PM
There are a lot of people who would say they seem a lot higher as well. Take the widely-followed Freddie Mac survey, for instance. My rate calculations have been persistently higher than theirs throughout this sell-off. (See the chart on this page: http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx). If anything, I'm pushing the pace when it comes to letting consumers and LOs know just how fast rates have moved higher. If you're not seeing the same, there are a few common reasons. The most common is that your particular lender is behind the curve, or simply somewhere in the middle of it. Given that you work for a subsidiary of Stearns, this is entirely possible as they're not currently the most aggressively priced lender (about middle of the pack). The other potential crossed wire would be that the highlighted rates are the most prevalently-quoted rates for top tier scenarios (i.e. no LLPAs). Finally, it's also possible your shop hasn't tightened margins as much as many shops have into the rate spike. Affordable rate buydowns have resulted in more quotes going out with origination/discount points in order to keep the note rate lower. My "prevalent" section doesn't account for compressed margins or increased upfront costs. All that having been said, if we're talking about top tier scenarios, 4.375-4.5 is widely available with little-to-no discount/origination.
on Thu Feb 8 2018, 3:18 PM
Where might you be getting the "Most Prevalent Rates" information? They seem much lower than what's actually going on in the market.
on Wed Feb 7 2018, 10:02 AM
Wake-up America-- FNMA/FMCC is a property rights issue! The Government "needs to protect the taxpayer" from publicly traded compnaues that produce BILLIONS of dollars in Net income?? The Conservatorship is a FRAUD! The 2008 "deal" was once FNMA/FMCC paid back the Treasury the stakholders would get back their shares,, FNMA/FMCC have PAID BACK the money,so why havnt the stakeholders gotten back their shares??? I authored a Resolution that was UNANIMOUSLY passed by the RNC..Go to GOP.GOV,,, go to bottom of Home,,click on Rules and Regulations..To date RHINO Corker and rest of Congress just wants to STEAL stakholders cash flow and profits to fund their greed..Demand the GOP honor their Resolution,DEMAND Congress return stakeholders what is rightfully the stakeholders..If the Government can STEAL the shares of FNMA/FMCC,then who's next?? APPLE ?? WAKE-UP America !!!
on Mon Feb 5 2018, 3:57 AM
The AARP Foundation publication Reverse Mortgage Loans: Borrowing Against Your Home is an an easy-to-understand guide for older adults who are considering such a mortgage refinance for their home (PDF).http://sdfdsfdzss.com.au sdfsdf
on Thu Feb 1 2018, 2:05 PM
Higher Intetests hurts everyone except Banks. Lower the rates.
on Tue Jan 30 2018, 11:21 AM
Bonds will probably catch a bid when we see some volatility in equities. Maybe soon.
on Thu Jan 25 2018, 1:07 PM
Wish I could "like" the above comment from Kim Kuhle. Great article, great comment. I think the silver lining you noted is important to emphasize as well. The lower sales stats are buoyed somewhat in the improved home values/stats yoy. Thanks again for the great research and evaluation.
on Thu Jan 25 2018, 11:55 AM
Hi Jann Swanson, Thank you for providing an excellent summary of the year end home sales figures. As I read your article, a phrase jumped out at me - housing crash. This is phrase that I have never heard in a meaningful way until now. For people in the mortgage, stock market, construction and real estate industries, the financial collapse of 2008 could be called a housing crash, but it could also be called an ethics nuclear bomb for all. What strikes me is that the housing crash happened when American Dreams of home ownership were also changing. Some people don't want to buy a new home or any kind of home, but they will still need multifamily housing finance. In essence, this article tells me that we all share a desire to avoid going through a financial industry fueled housing crash again. We want to avoid surprises by knowing the the real-world and whole housing truth as we go along. Thank you for providing articles like this that do just that.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Jan 22 2018, 1:49 PM
Current levels of demand (high) in top housing markets wherein inventories are low and prices are among the highest in the country may indicate home purchases likely will remain strong through 2018. However, the current high home prices coincide with a significant enough increase since 2012...thus resulting in would be home buyers at the lower end unable to afford a home purchase. My experience, and that of many mortgage loan consultants in the S F Bay area is we are qualifying a lot of would be borrowers at maximum purchase prices too low for the area they want to buy a home in (within reasonable proximity of work.) With low inventories and enough individuals qualifying for the lower end of homes available, yes, the market probably can handle some increase in rates...but probably not a lot. Maybe when inflation seems to be occurring steadily, and rates have gone up at least half a point from January 2018 we will see home prices come to a standstill. Hardly anyone is predicting the amount of inventory a year from now to not still be low, but that likely will prevent prices from dropping. History informs us current home values increasing as many years as they have is pretty rare so my message is the same as always: the best time to buy a primary home is when you are ready! It continues to be an important investment for all the right reasons, and not with the idea of "flipping" it in a year or two.
on Fri Jan 19 2018, 12:42 PM
Great article!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Jan 18 2018, 9:37 AM
You're not convinced by the flawless grammar?
on Fri Jan 12 2018, 11:27 AM
Step one, I would think, would be to bar these violators from originating VA loans. I have seen the solicitations and they are so misleading.
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Thu Jan 11 2018, 4:01 PM
This is a valid concern, and I've long been appalled at lenders misleading borrowers with names like Veterans United, VAloans.org, etc that imply connections with the VA. While VA IRRRLs are great products (especially for funding fee exempt borrowers), "skipping" a payment or two/getting an escrow refund is never a valid borrower benefit to justify refinancing. The abusive lenders are simple to spot, the question is who will deter their predatory practices.
on Wed Jan 10 2018, 11:09 AM
This is a good sign.
on Wed Dec 20 2017, 6:55 PM
Don't forget about the near monopoly that MERS has in the MBS mortgage market. There should be competition in that sector, but none really exists.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Dec 18 2017, 2:51 PM
Lol! I just read sentiments from Mr. Watson and then the other comments. No question in many cases an appraisal by a well trained and educated appraiser is going to do the best job in protecting the lending investors and the consumer purchasing the home without actually undervaluing the home. Granted, as Greg Wilkinson cites, many appraisers can still feel the pressure to come in at the purchase price, but each appraiser can be monitored and we all know of appraisers on do not use lists. The investors (bank) have to decide when it is protecting their interests sufficiently in using AVM...it is their/stockholders/bank depositors money. As pointed out, if the AVM is lower than true value, as has been true for some borrowers/homebuyers, the seller may refuse to sell the home for the AVM value. thus as Ted Rood mentions, the model used in the bank's determination and on the DU matters. If it now decides at 18% down instead of 20% down... they can't have the loan, then there should be the possibility of obtaining an actual appraisal if sellers refuse to lower the price. We all have had experiences where all the comps close by, but on the other side of a freeway, are unfair comparisons...yet the only fair comparisons might be 2 to 3 miles away. Not sure a computer AVM will figure that out.
WN
on Fri Dec 15 2017, 11:16 AM
In 20 years of being an LO. I have been on the losing end of an AVN many more times than the traditional appraisal.
on Fri Dec 15 2017, 9:16 AM
James Turner, you make some good points. AVM's do not see the upgrades nor quality of materials used that have been made to the home. In the Boston area where the norm is the majority of homes are older than 50 years the value varies greatly between homes that are virtually identical. 3 bedrooms 1.5 baths 8,000 SF lot 1 car garage, 1,482 SF etc. There is no way to account for a home that is more desirable due to the location of the home corner lot vs a home with a view of the gas station, spacious level backyard vs a hilly wooded lot, newly remodeled open concept living area to create 2 full baths, with a new custom kitchen HGTV "affect" vs a home that is in original condition, hasn't been touched in 50 years and needs a new roof and heating system. The only time that it might make sense to use an AVM is in a large tract home builder subdivision when the developer has 4-5 basic models.
S Reichert
Mortgage Banker, Black Hills Community Bank
on Thu Dec 14 2017, 4:09 PM
I'd personally like to see them continue to develop AVM's. I'm in a rural area and it's no uncommon for an appraisal to take 3 weeks. Granted, I don't want to see lower values affecting my financing, but I'm sure the technology will improve and provide a great alternative to valuing properties.
on Thu Dec 14 2017, 12:14 PM
How about the LTV having an effect on the degree of scrunity by the appraiser and thus the appraisal value given.
Curt Sandfort
Regional Manager, Pacific Northwest, Prime Mortgage Lending, Inc
on Wed Dec 13 2017, 2:27 PM
As I understand the $1M question, if you owed $1.5M on your home, you could only deduct the interest paid on the first $1M owed. Whether or not that threshhold changes to $500k or some other number remains to be seen. #CONSULTYOURCPA
S Reichert
Mortgage Banker, Black Hills Community Bank
on Wed Dec 13 2017, 1:28 PM
Is the 1MM cap, the maximum mortgage you can have, or some type of cap on the interest expense deduction?
on Tue Dec 12 2017, 9:07 AM
It will be interesting to see how an increase interest rates affect residential home prices in Castle Rock, CO. They have risen steadily since 2011, a strong 7 year run to the point that first time Buyers are barley able to afford the monthly payments, especially FHA & VA Buyers. If rates increase, will the Buying public absorb the increase or will sale prices get pushed down, so payments stay high but not unmanageable? It will be interesting to watch. great article. Thanks,
on Thu Nov 30 2017, 3:24 PM
As far as the assumed MSR tax changes go, there's no way this interpretation can be correct or final. There's no way JUST the MBA would be upset by this yet when I search for more information they are the only ones talking about it. This would send shock waves through many industries and, if true, would have the self-regulating accounting entities organizing marches on DC. Not to mention there's a wherewithal to pay doctrine that basically says if you don't have money from the income being taxed we don't expect you to be able to pay that tax.
on Wed Nov 8 2017, 2:49 PM
If a Buyer gives up on getting qualified, they are giving up on their dreams, home ownership, and wealth building. Even if they have to re-group and come back a year later, it is always worth the effort for their long term retirement goals. That's for the great article.
on Wed Nov 8 2017, 2:46 PM
Great information. As a Realtor, I recommend that Buyers begin the process of improving their financial position and FICO score(s) about 6 months before writing any contracts. Those two things may get the Buyer a low interest rate loan, who can now purchase a better home.
on Wed Nov 8 2017, 2:43 PM
Interest rates are key to affordability with Buyers. Housing prices in the Douglas County, Colorado area have almost doubled in the past 7 years. When interest rates rise, that may force many potential Buyers out of the system and to stay in rental properties to affordability issues.
Robert Jubran
Mortgage Loan Originator, Regions Bank
on Mon Nov 6 2017, 11:10 AM
Great info!
brian dean
Senior Mortgage Consultant, FirstCal
on Fri Nov 3 2017, 11:30 AM
Has anyone else noticed the proposed tax deduction is ONLY on purchase loans so there would be no more refinances. It would never make sense to refi your mortgage and give up your tax deduction
on Tue Oct 31 2017, 8:54 AM
Home prices and wages differ little than they were in 2007. What is different is qualifying criteria. Tighter government regulations and more conservative lenders have cut the purchasing pool to a fraction of what it was 10 years ago.
 

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