Borrrrring...but still an amazing time.

Mortgage rates haven't changed much lately. The good news of course, is rates are still incredibly low.
Purchase activity seems to be picking up in Orange County and many of the areas in California especially in the lowest priced home markets.

Nothing really new latly, except the expansion of the HARP refinance program and increased FHA mortgage insurance premiums.  If you need a lower rate and haven't applied recently or been turned down over the last two-three years. Now is a great time to have someone check your individual situation (like me of course).

There are a few jumbo programs coming to the market and we are seeing some increases to LTV requirements - which is just higher leverage. Many programs are available with 85-90% leverage for high net worth individuals requiring financing for luxury properties. 

I love closing loans for new buyers and new realtors in the same transaction. We had a few of those last week and if you are new to real estate or require a very high level of interaction with your lender/broker. Then consider this company.

Please Mother May I...talk about what's happening in the mortgage and real estate industries

Well to start a new month, I've decided to start a Paleo diet. Wish me luck and I apologize in advance if my blog reads a bit cranky...But you eliminate your cream and sugar from your coffee, starches, legumes, dairy and see how you feel...it changes you... ;)

Did you know reverse mortgages can be used to finance the purchase of owner occupied residential property? Click on the link above to see how the reverse mortgage structure works.

Home prices are still falling, albeit much slower that in previous years. Buyers of some residential properties purchase from 2009-2010 are already underwater. This isn't true for all neighborhoods and you should remember to consult a local Realtor when you want specific market information click here to find our if you are in the black or in the red.

Recently we've been doing a number of purchase transactions and if you are a Realtor or a Buyer/Borrower, work with a licensed mortgage banker who specializes in purchase transactions. Your refinance chop chops out there do not have the experience necessary to faciliate a purchase mortgage or have knowledge of all the additional moving parts. Work with a mortgage banker WITH a real estate brokers license. I don't do Real Estate, but understand the Realtor and Buyer needs better than most.

OK, as we close out the month end and head into May, it's always good to note the big changes out there and the good news bad news going forward. The good news is rates are still fantastic and look to remain near these levels for the near term certainly. And mortgage companies are making good money along the way. So why when money is cheap and profits high would MetLife exit forward mortgage originations and reverse mortgage origination last week. Clearly, the Dodd Frank Act is making those "too large" to fail institutions just too interconnected with the government. And in MetLifes case, why originate when its only 1-2% of their earnings AND have the governement up your craw making decision with and maybe even for you.



So why do I bring this up? The reality is it can be tough for many people to find consistent service, rates, programs. With so many companies going out of business or closing business divisions, the borrower needs to find a single person, licensed, educated, experienced that udnerstands the industry, products, and the details. Today, mortgages are technicall and demand expertise to makes closings smooth.

California DRE warns of property deed scams

A serious warning from the State of California. Last week the California Department of Real Estate (DRE) issued a warning about property deed scams, which are apparently on the rise thanks to the depressed economic climate.  The Consumer Alert that DRE released notified homeowners of a number of red flags that indicate fraud: changes made to a recorded document after signing ("Is that my signature?"), recorded documents signed by a deceased person ("Look - Marilyn Monroe's autograph!"), documents indicating that the a portion of the property was sold without the homeowner's knowledge ("Who's living in our front yard?"), receipt of documents for a mysterious loan or transaction ("We owe how much to who?"), or receipt of a Notice of Default or Trustee's Sale when the property is owned outright ("What happened on the courthouse steps?") are all tip-offs. Seriously, the California DRE encourages homeowners that experience any of the above to notify the County Recorder's Office and their insurance company if their title policy covers forged deeds.  It's also worth contacting local law enforcement, as the District Attorney offices in several counties now have real estate fraud divisions, and, if the real estate broker or salesperson is the likely culprit, filing a complaint with DRE itself.  Employing an attorney familiar with real estate law is advisable, as they can help with annulling or voiding bogus deeds.

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.