sorry if it was posted before. reading this i visualized bernie pushing on a string :-). but fannie's new changes make a lot of sense to me. http://themortgagereports.com/2009/07/fannie-mae-guideline-2-unit-mortgage.html Across-the-Board Guideline Changes: * Credit, income and asset documentation can't be more than 90 days old. The former guidelines allowed for 120 days. * Lenders must compare... [more]
sorry if it was posted before. reading this i visualized bernie pushing on a string :-). but fannie's new changes make a lot of sense to me.
http://themortgagereports.com/2009/07/fannie-mae-guideline-2-unit-mortgage.html
Across-the-Board Guideline Changes:
* Credit, income and asset documentation can't be more than 90 days old. The former guidelines allowed for 120 days.
* Lenders must compare actual federal tax returns from the IRS to a borrower's supplied income documentation. Previously, this review step was at the lender's discretion.
* "Tip" income must be verified.
* Trailing secondary wage earning is now prohibited. This means that P&G employees relocating to Cincinnati can't use a spouse's "expected" Cincinnati income until that spouse actually has a job.
* Stocks, bonds and mutual funds get assigned 70% of current market value. Formerly, this was 100%.
* Retirement assets get assigned 60% of current market value. Formerly, this was 70%.
When your 2-unit is your Primary Residence:
* Purchase: Maximum LTV lowered to 80%; 640 minimum FICO.
* Rate-and-Term Refinance: Maximum LTV lowered to 80%; 640 minimum FICO.
* Cash Out Refinance: Maximum LTV lowered to 75%; 680 minimum FICO.
When your 2-Unit is an Investment Property
* Purchase: Maximum LTV lowered to 75%; 660 minimum FICO.
* Rate-and-Term Refinance: Maximum LTV lowered to 75%; 660 minimum FICO.
* Cash Out Refinance: Maximum LTV lowered to 70%; 680 minimum FICO.
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http://www.starbulletin.com/business/20090719_Lava_loan_meltdown.html
"Mortgage giant Fannie Mae officially declared in its June selling guide that it would no longer purchase or securitize mortgage loans in the Big Island's lava zones 1 and 2, where the probability of lava flows is greatest. Kehena Beach Estates, where Callahan and Ventura live, sits in close proximity to Kilauea, one of the world's most active volcanoes.
"Properties in lava zones 1 and 2 are not eligible due to the increased risk of property destruction from lava flows within these areas," Fannie Mae's June directive states."
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i expect similar moves regarding low level homes near the beach.
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
Of course they do. And so do the new appraisal standards. People forget that the tax payers lose when bad credits default.
Ignored comment.
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Response by notadmin
over 16 years ago
Posts: 3835
Member since: Jul 2008
thank you riverside, i was lonely on the taxpayer-worried front.
The new rules -- known as the Home Valuation Code of Conduct and in effect less than three months -- have driven up the cost of appraisals, says Keith Stewart, a mortgage consultant with NorthPoint Lending Group in Chicago.
THAT'S HYSTERICAL KEITH. YOU ARE AN IDIOT TO TALK UP A $125 INCREASE IN COSTS.
THAT HIS NOTHING MORE THAN A ROUNDING ERROR.... SEE BELOW
An appraisal that once cost $275 to $300 now runs $375 to $500, he says. That's because under the new rules a third party, often an appraisal-management company, must serve as middleman between a mortgage broker and the appraiser, says Drew Kessler, director of sales for Rand Mortgage in New City, N.Y
HOW BAD APPRAISALS HURT EVERYONE EXCEPT THE BROKER!!
Unfortunately, during the 2005-to-2007 period, mortgage lending was much too aggressive and placed pressure on the appraisal process," the FHFA said in a statement last week. "In some cases, that resulted in unrealistically high appraisals, hurting home buyers as well as investors. The [code of conduct] is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers or brokers."
"Mortgage-broker pressure on appraisers was real during the past 10 to 20 years," he says. "They are no longer able to order, select or compensate appraisers, and as such, some of that pressure has subsided."
Adds Jim Amorin, president of the Appraisal Institute: "Consumers were maybe paying more for a home than it was really worth because of undue pressure being applied" to the appraiser.
AND THE CODA
"Accurate appraisals, produced in line with industry standards and legal requirements, provide key protections for homeowners, [Freddie Mac and Fannie Mae] and investors," the FHFA says. "The poor practices of the past are being corrected and lessons learned are being addressed."
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Of course they do. And so do the new appraisal standards. People forget that the tax payers lose when bad credits default.
thank you riverside, i was lonely on the taxpayer-worried front.
http://online.wsj.com/article/SB124857099399781509.html
The new rules -- known as the Home Valuation Code of Conduct and in effect less than three months -- have driven up the cost of appraisals, says Keith Stewart, a mortgage consultant with NorthPoint Lending Group in Chicago.
THAT'S HYSTERICAL KEITH. YOU ARE AN IDIOT TO TALK UP A $125 INCREASE IN COSTS.
THAT HIS NOTHING MORE THAN A ROUNDING ERROR.... SEE BELOW
An appraisal that once cost $275 to $300 now runs $375 to $500, he says. That's because under the new rules a third party, often an appraisal-management company, must serve as middleman between a mortgage broker and the appraiser, says Drew Kessler, director of sales for Rand Mortgage in New City, N.Y
HOW BAD APPRAISALS HURT EVERYONE EXCEPT THE BROKER!!
Unfortunately, during the 2005-to-2007 period, mortgage lending was much too aggressive and placed pressure on the appraisal process," the FHFA said in a statement last week. "In some cases, that resulted in unrealistically high appraisals, hurting home buyers as well as investors. The [code of conduct] is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers or brokers."
"Mortgage-broker pressure on appraisers was real during the past 10 to 20 years," he says. "They are no longer able to order, select or compensate appraisers, and as such, some of that pressure has subsided."
Adds Jim Amorin, president of the Appraisal Institute: "Consumers were maybe paying more for a home than it was really worth because of undue pressure being applied" to the appraiser.
AND THE CODA
"Accurate appraisals, produced in line with industry standards and legal requirements, provide key protections for homeowners, [Freddie Mac and Fannie Mae] and investors," the FHFA says. "The poor practices of the past are being corrected and lessons learned are being addressed."