FHA Streamlines with 30 day lates

I am a broker in Texas. Does anyone know of a lender out there doing FHA Streamlines that have 2 or more lates?

Or with no credit score or history required.

no 30 day lates within 12 months is required on a streamline. 

Freedom was the last one i had been working with who didn't require a credit report, but we still had to show a perfect 12 month mortgage history.  Sorry, I don't think anybody is doing what you're looking for.

FHA is not doing it as no 30 days in past 12 months is the requirement, therefore no one is doing it unless you want to lend your own money privately...

Freedom will do an FHA or VA streamline (IRRRL) if there is EITHER a 500+ score OR there is a 12 month mortgage history with no lates.  You are able to use a single bureau report and the payoff cannot indicate delinquent interest.

YES boys and girls, it can be done.

Kent Mikkola:

Freedom will do an FHA or VA streamline (IRRRL) if there is EITHER a 500+ score OR there is a 12 month mortgage history with no lates.  You are able to use a single bureau report and the payoff cannot indicate delinquent interest.

YES boys and girls, it can be done.

So how long until Freedom is set free into insolvency???  they'd have to eat all those losses on those loans as FHA would not pay the claim on a loan that's outside of guidelines...

EITHER

a 500+ score

OR

there is a 12 month mortgage history with no lates.  Can't provide that so we'll go for above

You are able to use a single bureau report and the payoff cannot indicate delinquent interest.- okay so payoff does not indicate delinquent interest, but credit report will show the late payment(s) within last 12 months and FHA would not cover that loss...

Am I missing something here, Mr. Clean??? 

akaagassi:

Am I missing something here, Mr. Clean??? 

Maybe this: (found at http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.6.C)

Leave it to Kent, why do I even bother answering?  To be fair, the daily emails I get from Freedom seem a little confusing on that point, but I looked it up in their guidelines and as long as you have a +500 score, mortgage lates will not be taken into consideration, but if you're below 500 then you'd need to have a 0 x 30 lates on the mortgage in the last 12 months.

Kent Mikkola:

Where did you get the idea that a 12 month clean mortgage history was a requirement for a streamline refi?  That is a cash out refi requirement.

That's my guidelines...sometimes I know for sure that it comes straight from the GSE b/c I verified it, sometimes I just assume it b/c, well, you know, you'd think it'd be common sense

akaagassi:

sometimes I just assume it b/c, well, you know, you'd think it'd be common sense

Remember, there is nothing common about common sense.

Hi All

Please see below the requirements for FHA streamline refi with Freedom Mortgage. As per this scores need to be 500+ and no more than 1x30 late on mortgage. Only if it is in San Antonio City then the applicant need to have a score of 640. Hope this helps.

 FHA & VA Non-Credit Qualifying Streamline Refinance Transactions Credit Report Requirement

Effective for any loan that does not have a Conditional or Final Approval on or after June, 18, 2009

Freedom Mortgage Corporation requires a credit report for all non-credit qualifying FHA streamline refinance transactions as well as all VA IRRRL transactions

The credit report must reflect the borrower(s) credit score and must have a mortgage rating for the subject property that reflects no more than 1 X 30 in the previous 12 months. A single in-file credit report, from one repository, with all credit reported, will be acceptable provided it contains a complete credit history for the borrower(s) as well as the required mortgage history information; if not then a tri-merged credit report will be required.  If you have a 495 prefix then you must have a 640 and reflects no more than 1X30.

Summer,

If you read over Freedom guidelines on their website, you'll see that they only need to have 0 x 30 mortgage lates in the last year if the score is below 500.  If it's over 500, then it's a credit qualifying streamline and the mortgage history is not taken into consideration. 

Non-credit qualifying Streamline Refinances

o        Credit report is required for all non-credit qualifying Streamline Refinances.   A single in-file credit report, fromone repository, with all credit reported will be acceptable provided it contains the required information.  If required  information is not present, then a tri-merged credit report will be required.  Credit report must:

§          reflect a credit score for all borrowers

§          AND EITHER:

·          indicate mortgage rating for the subject property that reflects 0 x 30 in the previous 12 months, OR

·          borrower must have minimum credit score of 500

A select few lenders, including a top 20 lender, will allow for streamlines reguardless of credit score and no more than 1 x 30, although they encourage to atleast submit for compensating factors, which they have settled before. 

Just dropping 2 pennies...