Low mortgage rates since the end of May have boosted the housing market and Freddie Mac economists expect that trend to continue for the remainder of the year. In its July 2019 Economic and Housing Research Forecast, Freddie Mac revised down its quarterly forecasts for the 30-year fixed-rate mortgage for this year and next year, predicted a recovery in housing starts, and forecasted an increase in originations.
What was once a top priority for the Donald Trump administration when he took office may not happen until the end of the President’s potential second term. Last week, Federal Housing Finance Agency Director (FHFA) Mark Calabria told Reuters that it was his “hope” that Fannie Mae and Freddie Mac would be out of conservatorship by 2024. That is the year Calabria’s term as FHFA director ends.
Mortgage lenders should evaluate how much cash a potential borrower has to make payments more than the size of their down payment, according to research released last week. A JPMorgan Chase Institute report showed that borrowers with at least three months available to pay their mortgages were far less likely to default than other borrowers.
Freddie Mac has launched a mortgage product that enables buyers to finance a home and renovations with a single-close transaction. The CHOICERenovation loan is available for purchases and no cash-out refinancing to eligible lenders nationwide.
Multiple reports in the last week indicate that the Trump administration is close to releasing a plan to end conservatorship of Fannie Mae and Freddie Mac. Fox Business reported that Wall Street bankers and Trump administration officials have started outlining a stock deal to finance Fannie and Freddie’s recapitalization plan.
The past year has seen sweeping changes in almost every area of loan origination, underwriting guidelines, and loan disclosures. USDA and FHA have both created new handbooks that came with completely new guidelines. The CFPB introduced the Loan Estimate and Closing Disclosures which replaced the Good Faith Estimate, TIL, and HUD-1. Fannie Mae and Freddie Mac introduced new guidelines for many topics including review of Schedule-A Unreimbursed Expenses and required reserves for borrowers retaining their home as a secondary or rental property.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
In the days of CFPB debt ratio thresholds and tighter lending restrictions, every underwriter needs to have a few tricks up their sleeve for saving debt ratios. Usually we try to use the more conservative income calculation to avoid investor push-back. However, there are a few perfectly provable income sources that we can use to support a lower debt ratio and return an approve/eligible or accept finding
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Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
In response to the CFPB’s Ability to Repay (ATR) and Qualified Mortgage (QM) rules, leading investors have instituted a Debt, Income, and Asset Verification Worksheet. This worksheet was created to provide consistency and uniformity in the reporting of underwriter rationale in determining the borrower’s ability to repay. Some lenders are adding this form (or a screen) into their loan origination system.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
One of the hottest topics in the mortgage industry today is the Consumer Protection Financial Bureau’s (CFPB) sweeping regulatory reforms. Many are questioning how the new rules will impact the industry and whether the reforms are positive or negative. Some have concerns for our ability to remain productive and profitable with so many new restrictions.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.