Comments on: Interview with Jillayne Schlicke – Part 1: LO’s Are You Ready for 2009? http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Interview with Jillayne Schlicke - Part 2: The SAFE Act | Rain City Guide http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-329000 Interview with Jillayne Schlicke - Part 2: The SAFE Act | Rain City Guide Thu, 20 Nov 2008 00:05:06 +0000 http://raincityguide.com/?p=3210#comment-329000 [...] this month I shared an interview with Jillayne Schlicke.  Part One addressed LO’s getting ready for 2009.  The second half of my interview touches on The S.A.F.E. ACT which is a part of HR 3221.  The [...] [...] this month I shared an interview with Jillayne Schlicke.  Part One addressed LO’s getting ready for 2009.  The second half of my interview touches on The S.A.F.E. ACT which is a part of HR 3221.  The [...]

]]> By: HUD Passes RESPA Reform, New GFE Coming in 2010 | Rain City Guide http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328532 HUD Passes RESPA Reform, New GFE Coming in 2010 | Rain City Guide Thu, 13 Nov 2008 01:45:04 +0000 http://raincityguide.com/?p=3210#comment-328532 [...] protection and more duties owed to the consumer by retail mortgage lenders.  Didn’t I just say this was going to happen? From HUD: Brian Montgomery, HUD’s Assistant Secretary of Housing, Federal Housing [...] [...] protection and more duties owed to the consumer by retail mortgage lenders.  Didn’t I just say this was going to happen? From HUD: Brian Montgomery, HUD’s Assistant Secretary of Housing, Federal Housing [...]

]]> By: Rhonda Porter http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328246 Rhonda Porter Sat, 08 Nov 2008 21:58:59 +0000 http://raincityguide.com/?p=3210#comment-328246 Jillayne, I don't think I said easy and painless w/FHA--but it is better than the FHA loans that many agents and sellers have associated with--mainly with the appraisals, which are still more strict than conventional. FHA is a full doc loan--meaning 2 years of employment income is verified. Nothing "lite" or "stated" about it. Jillayne, I don’t think I said easy and painless w/FHA–but it is better than the FHA loans that many agents and sellers have associated with–mainly with the appraisals, which are still more strict than conventional.

FHA is a full doc loan–meaning 2 years of employment income is verified. Nothing “lite” or “stated” about it.

]]> By: Jillayne Schlicke http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328244 Jillayne Schlicke Sat, 08 Nov 2008 21:44:46 +0000 http://raincityguide.com/?p=3210#comment-328244 For FHA delinquencies in this state and the U.S., see page 13 of this PDF: http://www.dfi.wa.gov/cs/pdf/current_residential_mortgage_market.pdf For FHA delinquencies in this state and the U.S., see page 13 of this PDF:

http://www.dfi.wa.gov/cs/pdf/current_residential_mortgage_market.pdf

]]> By: Jillayne Schlicke http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328243 Jillayne Schlicke Sat, 08 Nov 2008 21:42:29 +0000 http://raincityguide.com/?p=3210#comment-328243 "Jillayne, when I do an FHA loan, it’s hardly pushed through the system. They’re extra work and must meet guidelines." I seem to recall reading a blog post or comments stating that FHA was easy! and painless! and not like the FHA of the 1980s.... ;) “Jillayne, when I do an FHA loan, it’s hardly pushed through the system. They’re extra work and must meet guidelines.”

I seem to recall reading a blog post or comments stating that FHA was easy! and painless! and not like the FHA of the 1980s….
;)

]]> By: Jillayne Schlicke http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328241 Jillayne Schlicke Sat, 08 Nov 2008 21:36:42 +0000 http://raincityguide.com/?p=3210#comment-328241 Hi Rhonda, It's difficult to tease apart FHA Secure and FHA. When HUD provides figures on their press releases, they will typically lump all FHA loans together. H4H is just beginning so we won't have statistics on that program for awhile. Other bloggers have taken on this topic here: http://calculatedrisk.blogspot.com/2008/02/project-lifeline.html and here: http://loanworkout.org/2008/10/the-year-of-foreclosure-prevention-flops/ Hi Rhonda,

It’s difficult to tease apart FHA Secure and FHA. When HUD provides figures on their press releases, they will typically lump all FHA loans together. H4H is just beginning so we won’t have statistics on that program for awhile. Other bloggers have taken on this topic here:

http://calculatedrisk.blogspot.com/2008/02/project-lifeline.html

and here:
http://loanworkout.org/2008/10/the-year-of-foreclosure-prevention-flops/

]]> By: Roger Ingalls http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328238 Roger Ingalls Sat, 08 Nov 2008 20:51:15 +0000 http://raincityguide.com/?p=3210#comment-328238 Another perspective on FHA loans is that we are returning to traditional volumes. Remember, FHA collects a sizeable premium for the mortgage insurance part. That should provide them some cushion for defaults. They probably could not survive an overall 35% reduction in home values for loans originated in 2008, but I do not worry about FHA's collapse from a 15% reduction. 35% would be an extreme condition. The feds probably will not allow it. They will most likely pursue an inflationary policy, pushing wages up, to do what they can to sustain home values. Another perspective on FHA loans is that we are returning to traditional volumes.

Remember, FHA collects a sizeable premium for the mortgage insurance part. That should provide them some cushion for defaults.

They probably could not survive an overall 35% reduction in home values for loans originated in 2008, but I do not worry about FHA’s collapse from a 15% reduction.

35% would be an extreme condition. The feds probably will not allow it. They will most likely pursue an inflationary policy, pushing wages up, to do what they can to sustain home values.

]]> By: Rhonda Porter http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328230 Rhonda Porter Sat, 08 Nov 2008 20:00:46 +0000 http://raincityguide.com/?p=3210#comment-328230 Jillayne, when I do an FHA loan, it's hardly pushed through the system. They're extra work and must meet guidelines. Do you have any stats on what percentage of FHA loans are FHA Secure or Hope 4 Homeowners? Jillayne, when I do an FHA loan, it’s hardly pushed through the system. They’re extra work and must meet guidelines.

Do you have any stats on what percentage of FHA loans are FHA Secure or Hope 4 Homeowners?

]]> By: Jillayne Schlicke http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328227 Jillayne Schlicke Sat, 08 Nov 2008 19:48:46 +0000 http://raincityguide.com/?p=3210#comment-328227 Hi Rhonda, I'm basing my assumptions on the huge number of FHA loans that are now being pushed through the system. If you look at any graph or chart showing the sheer growth in volume of FHA originations, it's staggering. I'm not sure the system was created to withstand that sort of volume and pressure with market values declining rapidly, like we're now experiencing. In addition, think about all the loan programs for high risk homeowners that the government is hoisting onto the back of FHA: FHA Secure and Hope 4 Homeowners. Hi Rhonda,

I’m basing my assumptions on the huge number of FHA loans that are now being pushed through the system. If you look at any graph or chart showing the sheer growth in volume of FHA originations, it’s staggering. I’m not sure the system was created to withstand that sort of volume and pressure with market values declining rapidly, like we’re now experiencing.

In addition, think about all the loan programs for high risk homeowners that the government is hoisting onto the back of FHA: FHA Secure and Hope 4 Homeowners.

]]> By: Rhonda Porter http://raincityguide.com/2008/11/05/interview-with-jillayne-schlicke-part-1-los-are-you-ready-for-2009/#comment-328221 Rhonda Porter Sat, 08 Nov 2008 19:18:09 +0000 http://raincityguide.com/?p=3210#comment-328221 Jillayne, I couldn't agree more with you on comment 20 but I disagree with you on 21. Sometimes I'd play a game with my processor by covering up the credit scores and asking her to guess what she thought they should be...even without manipulation, sometimes a consumer is fluked by a high or low score regardless of the model. It especially stinks if you're the borrower who is one digit below qualifying for a better rate. With regards to FHA: borrowers are paying for FHA with the upfront and monthly mortgage insurance--it's not cheap and was recently increased. FHA loans were created as a result of the Great Depression as part of the New Deal. This program has weathered recessionary times and declining values. This won't be the first or the last. Jillayne, I couldn’t agree more with you on comment 20 but I disagree with you on 21.

Sometimes I’d play a game with my processor by covering up the credit scores and asking her to guess what she thought they should be…even without manipulation, sometimes a consumer is fluked by a high or low score regardless of the model.

It especially stinks if you’re the borrower who is one digit below qualifying for a better rate.

With regards to FHA: borrowers are paying for FHA with the upfront and monthly mortgage insurance–it’s not cheap and was recently increased. FHA loans were created as a result of the Great Depression as part of the New Deal. This program has weathered recessionary times and declining values. This won’t be the first or the last.

]]>