FHA deadline fast approaching. The difference waiting may cost you thousands.

APRIL 9TH FHA will start requiring new up front AND monthly mortgage insuarance  factors. The difference is potentially worth tens of thousands of dollars over the life of the loan. Email me today for a quote and to get your case number assigned Michael@michaelfoote.com

FHA Streamline Refinance MIP refund chart

Curious about FHA UFMIP refunds? What is the calculation for refunds on FHA loans up front mortgage insurance.

Don't call it a comeback I've been here for years

From Rob Chrismans email today. Are mortgage brokers making a comeback? After the financial crisis, drop in originations, regulatory tsunami (a "Reg-plosion"), and the recent exit from the sector by many large institutions, many thought the days of the mortgage broker were numbered. However, it may be too soon to count them out. According to the Q4 2011 Quarterly Data Report from the NMN, third-party originations jumped to 11.4% of all originations, or $51.3 billion, up sharply from the $29 billion brokers originated in the third quarter. Going back the previous five quarters, market share was 8.2%, 7.9%, 6.8%, 10.7%, and 11.8%. Putting things into perspective, broker market share peaked at nearly 30% in 2007. Perhaps reports of the brokers' death were exaggerated.

Changes you may not have heard about.

With the new settlement with the banks, states and lenders are expecting to see in increase in approved short sales. Since the amount of the settlement includes deductions for approval short sale deficiencies.

It looks like your entire california property tax bill is not going to be tax deductible. With the 2012 tax bill you see a breakdown between regular property tax and special assesments which are no longer tax deductible.

Also, in what may be an even bigger announcement is that mortgage insurance will also no longer be tax deductible after the expiration of that rule and 58 other. Congress failed to nenew these rules in December. Thanks! I love backdoor tax increases.

If there is good news it is that rates are still very good, the HARP II refinance is picking up steam. FHA is still offering loans to credit impaired borrowers.

Any day above ground is a good day!  

Treasury Makes Bank

Remember all the hub bub when the Treasury announced they would purchase MBS to support the mortgage market...everyone worried it was just more wasted tax dollars. Well today announced the completion of of the orderly windown and turns out they made over $25 billion from investing approx $225 over 2008 and 2009. That's a 10% return.

Where's our cut?

Filed Under Shameless Self Promotion

Looking good for the mortgage broker community. We provide a valuable service and may be the only advocate for the client left. The main difference is the Loan Originator working for a direct lender or bank has ZERO pull. The Loan Originator that controls his product between investors has better overall leverage.

HARP II Refinance, More Assets, Rate Trend

HARP II Refinance Applications. You can submit your new loan application for HARP II refinance loans. These loans offer refinance of first mortgage loans current over the last 12 months owned (not serviced) by Fannie Mae and Freddie Owned loans with fund dates prior to March 2009. #CalPropRE #MMSToday #MichaelAFoote

These loans offer zero limitation on Loan to Value and Combined Loan to Values. Second liens can be subordinated to the new first mortgage. credit score, debt to income ratios and assets requirements have been drastically reduced. Rates are sub 4% for some applicants.

In other news lenders are tightening on some programs, notably Fannie Mae will begin requiring 12 months assets for certain primary residence and investment refinances.

Rates overall are slightly higher over the last couple weeks, but are still remarkably attractive from historical perspectives.

http://www.michaelfoote.com/

Lehman BK, FHA Mortgage Insurance, HARP2

Well CNBC just announced lawyers made the biggest payday ever, billing 1.6 billion --SO FAR.... What's that like $4,500 a hour? 

FHA new MI goes into effect on April first, if you are planning on streamlining your FHA loan get your FHA case number assigned before that happens...

HARP 2 continues to be launched and we now have no CLTV limitation on DU Refi PLus loans, or loans owned by Fannie Mae. While this program will not pay off your second mortgage, it can substantially reduce your first mortgage rate and it doesn't matter how underwater you are.

It's Friday...what's going on.

Lot's of little stuff to talk about today. 24% of home sales are distressed according to a recent report. I would argue the number is much higher, and with the recent history of revising sales figures, I personally never take the first number anymore. I will wait until the first revision generally guaranteed by the release of the next quater results. One thing is for sure, we are seeing some signs of like with the HARP 2 refinance coming online and purchase activity creeping up. Mortgage applications have popped and lenders are still scrambling to hire more sales people, including the 1400 announce by Quicken today.

There was also some news about the federal moratorium program for homeowners who have or will short sold/sell or received the dreaded 1099 from their lenders. The program is set to expire end of this year, so Realtors are pushing homeowners who need to short sell to do it now rather than later. Since a short sale can easily take six months start to finish, it is an important consideration...But Congress could certainly vote to extend such a moratorium since it has little impact on our economy. But does the program encourage people to strategically default - of course it will.

FHA is raising it's premiums on mortgage insurance front and back kids...get your guides updated!

Rates have held nicely over the last few weeks with Freddie reporting a 5 bps drop in averages - which brings in calls everytime.

Reverse mortgages may work out well for retirees.

http://mobile.nj.com/advnj/pm_29224/contentdetail.htm?contentguid=vnmFDvbb

#purchase #reverseloan

FHA announces UFMIP and MMI hikes

1.75% UFMIP now versus 1.00% and MMI will increase by another .10%
This is a pretty big jump and will eliminate some from pursuing FHA loans. When at all possible try to go conventional versus fha

If Warren Buffet could buy a couple hundred thousand homes he would.

Great morning to watch Warren Buffet..He really is credit to our country. If we could vote for an economic president, I would nominate him. Warren spoke today about many things including the tax code, and more importantly to me personally, the housing market which is says has gone through a depression, not recession, and is still the only engine not firing in our economy.  He stated that is it were feasible he'd buy homes at a record clip. Clearly he feels the combination of low rates and record home price drops makes this a good time to buy.  While a 7% owner of Wells Fargo, Buffet feels the banks have done a good job in the US to shore capital and clear balance sheets. I love this guys plain sense approach to all things including his calls on the economy - We need more people to be vocal and GET the air time to express his beliefs. Great job today CNBC.

FHA premiums set to rise

FHA is set to get even more expensive.

http://www.insidemortgagefinance.com/blogs/FHA-Plans-Premium-Hikes-1000019018-1.html

BofA - Drops Fannie Mae - No more sales to Fannie from BofA

Wow. big news. I guess they plan on selling to Freddie and portfolio for the rest...Or maybe there is a big secondary buyer out there. It will be interesting to see how this plays out.

Mortgage Recruiting the good and bad

I had a looooooonnnnggg conversation with a recruiter yesterday. No I am not necessarily looking for a new job so please don't drop a LinkedIn note, FB, Tweet Me, Poke Me or otherwise socially molest my inbox.

That being said, I think the gentleman from Hammerhouse called about a post on LinkedIn where I basically called out the mortgage recruiters out there. He wanted to explain that his business is about relationships. I agreed with him on most of his points. It's always a good idea to talk to people in related, connected or your personal industry. You just can't beat street knowledge.

Do I think they (recruiters) add value, yes. All they all honest, no. But I think Eric was yesterday. Let's face facts if you are in the mortgage business still, it's feast or famine for sales and marketing people. There are some doing very well, some not so well, and some are on there way out. Operations people have jobs, not making what they did, but salaries and benefits are why people are in operations. Sales takes balls - yeah I said it.

But, the fact is mortgage licenses have increased year over year. Everyone tells you what you want to hear. If you are new to the business you don't know different. If you are a seasoned vet, which I am (scary), then you know people will lie to you in this business. Some have said salespeople are the easiest close. And I think that may be true in many respects. But there is always truth even within a lie. The hard part is figuring our what is what.

Recruiters have contracts with specific companies and are therefore obviously trying to place you within a good organization. They get paid if you are successful and if you aren't then not only does the recruiter lose income, but potentially their reputation, by hiring "Clown shoes" (learned that one yesterday) instead of a seasoned vet with pipeline, marketing, and a working origination platform.

Stay tuned....Let's see what all these recruiters are really worth.