Need mortgage rep?

Micole Sudduth

Direct: 404.574.2639

Fax: 678.904.8326
5565 Glenridge Connector, Suite 400

Atlanta, GA 30342

http://www.academymortgage.com/

Micole and Joy have been able to work swiftly in getting my clients approved and closed! They also work with Atlanta Development Authority Down payment assistant programs close in 45-60days depending on the program you participate in.

Bill Offers Renewed HOPE for Troubled Owners

The Obama Administration on Wednesday signed a bill that attempts to inject some hope into the housing rescue program–called Hope for Homeowners.
 
The original program asked banks to reduce mortgage balances voluntarily to 90 percent of a home’s current market value. The loan would then be refinanced into an FHA mortgage.

The program didn’t work because it forced lenders to sell short with no chance of an upside, says Tom Kelly, a spokesman for JP Morgan Chase.

The new version of Hope sweetens the pot by paying lenders $1,000 for every Hope-refinanced loan and easing the amount they have to write off by allowing loans of up to 93 percent of the market value.

But the most important change is that it allows the U.S. Department of Housing and Urban Development, FHA’s parent agency, to share home-price appreciation with investors, up to the appraised value of the property when the existing loan was first issued.

This bill originally included cramdown legislation that would have allowed bankruptcy judges to modify the first mortgage, but that portion of the legislation was defeated in the Senate.

Source: CNNMoney, Les Christie (05/20/2009)

Georgia Dream, NSP

I know I said this before…but really, NOW is a good time to buy. Take a look at what my mortgage specialist sent me:

“DCA Allows up to $14,000 for down payment or repairs on foreclosed properties under Neighborhood Stabilization Program

The Department of Community Affairs, better known as DCA, has come out with a new program to help sell foreclosures and benefit owner- occupant purchasers whether or not they are first time homeowners.

Tagged the Neighborhood Stabilization Program (NSP), DCA will provide $14,000 to be used for down payment assistance or repairs as long as the property is purchased at 85% or less of the market value as determined by an appraisal that is required prior to contract.

Borrowers must qualify for FHA or VA loan guidelines and fall within fairly generous  income limitations (cannot exceed 120% of Area Median Income) based on the number of family members and must attend a required counseling course.  For example, a family of 2 purchasing in a metro Atlanta county, could earn up to $68,350 and a family of 4 can earn up to $85,450.

The $14,000 DAP would be an interest free second mortgage “loan” that would not have to be repaid as long as the customer lives in the house for at least 5 years.  Otherwise, it would have to be repaid on a pro-rata basis of 20% of the DAP amount per year when the house is sold.

DCA will fund the NSP loan as per the Georgia Dream Seller Guide, Chapter 2, Section 212.  For more information, visit their website at: http://www.dca.state.ga.us/housing/homeownership/programs/GeorgiaDream.asp

This and That

FHA cash out refis: I had a question last week about the new changes that are taking place with FHA in regards to refinancing.  FHA previously allowed up to 95% LTV for cash out refinances but is going back to 85% LTV effective April 1st.

Investment Property:  Be prepared to put 25% down for purchases.

New Appraisal Procedures: In an effort to take some of the alleged “loan officer influence” out of the appraisal process, most lenders are going to a system May 1st that will require lenders to rotate conventional appraisal orders and not allow loan officers to discuss cases directly with appraisers.  The rule may not apply to FHA loans, but some lenders may apply it to all appraisals just to be safe.   

Underwriting Turnaround: If I were you, I would be asking your loan officer if they have underwriters and closers on location.  I am hearing stories that brokered loans can take as long as 3 weeks to underwrite.  Refinances are the culprit.

Making Home Affordable: The U.S. Treasury Department went live on March 19th with its Making Home Affordable program, which aims to help homeowners refinance or modify their mortgages. The toll free no. for this service is 888-995-4673.  The website is http://www. Makinghomeaffordable.gov.

Loan  Modifications: Dick Runstadler, who represents US Housing Assist, disagrees with one of the things I mentioned last week about qualifying for loan modifications.  The company I talked to, Integrated Loan Services, told me that they typically require borrowers to have verifiable income to qualify for a loan modification.  Dick says that USHA has closed many loan modifications for unemployed people.  For more information about USHA, contact Dick at 678-455-0072.

Name Change:  Opteum Mortgage, Metro Cities Mortgage, F&T Mortgage and several former Indy Mac retail branches will soon operate under one parent company: Prospect Mortgage.  Opteum is scheduled to change its name to Prospect on April 1st.  Prospect Mortgage will thus operate a network of mortgage offices in all 50 states.  So I wanted to let you know that I will be getting new business cards soon.  You will have to wait and see what they say.

And finally, to the agent that expressed resentment to the “political comments” and inferences I made in last week’s column  in regards to the AIG bonuses, I would like to apologize.  The goal in my newsletter each week is to educate, inform and entertain.  So from hence forth and without hesitation, upon request, I will gladly refund anybody’s subscription fee.

Until next week.”

Best regards,

Sam Thompson
Loan Officer and columnist
email: Sthompson@opteum.com <mailto:Sthompson@opteum.com>
web:  http://www.opteum.com/sthompson <http://www.opteum.com/sthompson>

Buyers Being Lured to 100% Loan Program

More buyers in search of home loans are turning to an obscure program operated by the United States Department of Agriculture.

The program allows no-money-down purchases. In fact, including a mortgage insurance policy, a borrower can seek up to 102 percent.

To be eligible, buyers can’t have income that exceeds 115 percent of the median county income. The loans are restricted to low-density areas, generally towns of no more than 25,000 residents. The loans are made by private lenders, then insured by the government.

Some home builders are promoting the use of this program. “It’s one of our main tools right now,” says John Bargnesi, vice president for sales of Scottsdale, Ariz., home builder Meritage Homes.

Source: The Wall Street Journal, Nick Timiraos 

Loan Company Tries Cutting Mortgage Principal

 At least one loan servicing company is retooling mortgages to lower the loan balance as well as the rate in order to keep borrowers in their homes. Reducing the principal on mortgages is “a last resort,” says Paul Koches, executive vice president at Ocwen Financial Corp., a West Palm Beach, Fla., loan servicer. Ocwen has reduced the amount owed on 10,884 delinquent mortgages as of Sept. 30. That’s about 25 percent of all loans modified by Ocwen this year. Dropping the principal has looked like a last resort to many lenders and servicers because they fear investor backlash. Ocwen says the writedowns are generally less than the company’s average loss of $122,000 on a foreclosure. Ocwen is the nation’s sixth-largest subprime-mortgage servicer, according to Inside Mortgage Finance, with about $45 billion of mortgages under management.

Source: The Wall Street Journal, Ruth Simon

Mortgage Lenders

I’m always asked “Are you closing anything in this market?- Are your buyers getting funding?” Thankfully I can say ” YES, YES,YES”!… I owe this to the wonderful, hardworking, knowledgable lenders I continue to work with.   If you are considering buying a home, your first step will be to obtain a Pre-Qualification letter. I suggest contacting a few lenders and comparing interest rates. I’ve had great success with those on my list below. 

LIST OF LENDERS