The U.S. housing market lost additional momentum in July as rising mortgage rates and stubbornly high home prices discouraged prospective buyers from moving forward with purchases. Existing-home sales declined for the second consecutive month, reinforcing concerns that affordability continues to prevent a stronger housing recovery even as demand remains present in many parts of the country.
American consumers are once again feeling the effects of rising living costs as higher gasoline prices and climbing mortgage rates place additional strain on household finances. After several months of modest improvements in affordability, renewed increases in energy prices are creating ripple effects throughout the economy, making everything from commuting to purchasing a home more expensive.
The U.S. housing market continues to navigate a challenging environment as elevated mortgage rates, cautious buyers, and slowing home construction create fresh obstacles for an industry that has struggled to regain momentum. While inventory has improved in many markets compared to the past few years, affordability remains the dominant issue, leaving both builders and prospective homeowners searching for signs of relief.
Many prospective homebuyers continue asking the same question: When will mortgage rates finally begin to move lower? While many people look to the Federal Reserve for answers, housing economists say the better indicator is often the yield on the 10-year U.S. Treasury note. Although the Fed plays an important role in shaping the broader economy, mortgage rates tend to follow movements in long-term Treasury yields much more closely than changes in the federal funds rate.
Investor enthusiasm surrounding the future of mortgage giants Fannie Mae and Freddie Mac encountered a reality check this week after investment firm BTIG downgraded both companies to a neutral rating, citing growing uncertainty surrounding their long-awaited exit from government conservatorship. The move reflects increasing concern among analysts that meaningful progress toward privatization may take longer than many investors had anticipated.
The New Closing Disclosure form must be in loan file as of August 2015. The Closing Disclosure is a 5 pages long form that replace the final Truth in Lending disclosure and HUD-1 Settlement Statement and must be provided to borrowers three days before consummation or closing of their transaction.The Closing disclosure, is intended, to help consumers make informed decisions when shopping for a mortgage and avoid costly surprises at the closing table.Versions of the Closing Disclosure will vary depending upon the type of transaction. Home equity lines of credit and reverse mortgages will continue to use the HUD-1 form.
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.
My previous two articles were about the changes taking place at the FHA with the replacement of HUD – 4155.1 and HUD – 4155.2 and numerous Mortgagee Letters with the Single Family Handbook (SFH) 4000.1 below are additional changes that everyone needs to be aware of.
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.
Last week’s article was a glimpse of over 100 changes to the underwriting guidelines. In 2002 HUD – 4155.1 was written and now it is being replaced by the Single Family Handbook (SFH) 4000.1. The SFH -4000.1 contains a section pertaining to e – signatures. Tis technology did not exist when HUD – 4155.1 came out. HUD allows e – signatures. This section gives all the rules behind e – signatures such as identification, verifying the individual(s) involved and how to work with e – signatures.
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.
No, it’s not reference to a place on a different continent or even a historic event, but the ongoing skirmishes and sometimes all out war that seems to occur on a daily basis in many a mortgage lenders offices’. I myself am usually a daily combatant and like to think of myself as a commander, but I am sure many office managers as well underwriting managers feel the same way. Like myself I am sure they to spend a large part of their researching battle plans and coming up with ways to keep their flanks covered.
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.
I have spent a lot of time reading the new Single Family Handbook (SFH) 4000.1 over the last several weeks to primarily pick up the changes from the HUD – 4155.1 and HUD – 4155.2 and the many mortgagee letters (ML) in use. In my opinion there are about one hundred (100) changes going to take place and effective September 14, 2015. All Mortgage Loan Originators (MLOS), mortgage processors and Direct Endorsed underwriters need to know the changes.
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.
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.
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.
When credit scores are obtainable it must be used to determine eligibility for FHA insured mortgage loans. The scores used are the middle score for a borrower with three scores, or the lower score when a borrower only has two scores. After examining each borrower’s credit in the transaction a decision score must be determined. A mortgage transaction multiple borrowers you must use the middle or lowest score for the borrowers, The decision score determines the loan to value and the pricing of the loan since most mortgages are risk based pricing.
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.
From a mortgage approval standpoint I still find that most mortgage professionals are still stuck in the wonderful world of AUS. As in bygone days, they believe that if a case receives an automated underwriting approval then the case will be approved, no questions asked, no additional documentation required. Well, I am here to tell you, that’s just not the case.
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.
Recently in the news were photographs of different locations in the United States that had an inordinate amount of rain resulting in flooding. In addition numerous tornadoes are hitting various places in the United States and we are now in hurricane season (June 1 to November 30). If a location of the United States is declared a “presidentially declared federal disaster area” and the borrower’s home was materially damaged or destroyed the homeowner and/or tenant(s) can buy another dwelling using the 203(h) section of the act.
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.
The current underwriting manuals HUD 4155.1 and HUD 4155.2 are being replaced by HUD’s Single Family Handbook (SFH) 4000.1. There are approximately 100 changes from the old books to the new book. There are parts of the SFH in effect now and all of the book will be in effect with cases issued on or after September 14, 2015. There are parts of the SFH in effect already with lion share in effect in September 2015.
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.