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Name: Roger Ingalls
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Member since: 2009-03-16 04:51:40
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Fannie Mae Announces Deed for Lease Program

November 6th, 2009 at 11:30 pm

I was a bit surprised by the requirement

“Cannot be more than 12 months past due on the mortgage”.

Holy cow, have the standards fallen that low?

Fannie Mae Announces Deed for Lease Program

November 6th, 2009 at 11:24 pm

Matt:

I suspect you are right.

However, if Fannie becomes the owner, and the former owner becomes the tenant, doesn’t the write down hit the books? What creative accounting prevents it from hitting the books?

It will probably only save a few families from having to move, and there will be great press fanfare about it.

I’m still of the opinion that it beats doing nothing. Even in the best of times, with the best governance, actions are taken that have little economic effect, but create the impression of hopefulness.

Hopefulness beats despair, every day of the week.

President Obama Wins Nobel Peace Prize

October 9th, 2009 at 4:36 pm

That WAS a shocker.

Wow….I dunno, but it’s a bit weird to give him the prize for just existing, isn’t it?

What has he done to deserve it? I don’t see anything being much more peaceful than it was in January 09.

I thought he handled that question pretty well, stating in effect that he doesn’t deserve it yet.

I think it says a lot about America’s character that we could shrug off the history of racism, and embrace his cool rationalism. Maybe the prize is for the American voters, as a thank you from the European worldview…

He is doing a good job so far, in very difficult circumstances, however, there is only so much that can be done, without making things worse somewhere else. He’ll be a judged a good president if he just doesn’t screw things up too badly.

And THAT is waaay harder than it looks!~

Rhonda Porter Receives the Jim Fitzgerald Service Award from WAMP

October 8th, 2009 at 9:46 am

Atta girl Rhonda…well deserved, and I am SOOO sorry to hav emissed the event!

Thanks for all you do, I marvel that are able to keep it all going so capably!

FHA to Adopt HVCC-ish Guidelines effective January 1, 2010

October 5th, 2009 at 10:21 am

Thanks for the clarifications Michael, forums like this are doing exactly what is needed…furthering education and understanding. Remarkable lack of shouting at RCG….

Missed that part about portability, that is good news, adding the word MUST is a key element.

Regarding efficiency…I am NOT arguing that AMC’s are efficient, quite the opposite. However, it IS efficient for a bank/mortgage bank/lender to have ONE process and department, rather than multiple processes. If ALL FMA and FMC loans are going thru the captive AMC, or AMC-like entity, then it is more efficient for a bank to force the lower volume of FHA through the same process.

Thanks for engaging…we are both the wiser for the effort!

Good luck with your paper Jared…

FHA to Adopt HVCC-ish Guidelines effective January 1, 2010

October 2nd, 2009 at 2:49 pm

Michael:

Thanks for the research. I agree with most of your points.

However, there must have been some incentive for appraisers to collude with banks, or it wouldn’t have been made the focal point of the triggering of HVCC (E Appraise it and WAMU). THe incentive could have been as simple as continuing to get business from WAMU.

Your response made me do what I should have done in the first place…read the darn thing! I am humbly corrected…, no excuses professor. J

OK, here’s my “somewhat” better informed criticisms:

There is no safeguards for LO, lenders and borrowers when an appraiser is wrong. It has happened before, and generally underwriters don’t care enough to research and push it thru. Borrowers will suffer from not having an advocate (retail or wholesale loan originator) that is committed to the successful completion.
Face it, ALL appraisals that go Fannie, or FHA are going to go thru AMC’s, simply because the exceptions to those are so few. Efficiency will rule the day. Since AMC’s get to select the appraisers they work with, and de-select them as well, how likely is it that the appraiser will ACTUALLY list the fee he/she was paid, thus causing the AMC’s to lose face?
On refis, LO’s can no longer suggest what the borrower opinion of value might be, nor can an LO consult with an appraiser prior to appraisal on estimated value. Consumer’s money will be wasted on appraisals that never should have been ordered. I suppose that is good for appraisers, but not for the industry as a whole, and certainly not for borrowers.
Portability. FHA doesn’t address it. Lenders have generally made it as difficult as possible to transfer an appraisal from one AMC or bank to another. Consumers suffer.

Here’s what I like.

Appraiser independence safeguards…of course HVCC has those too, but hasn’t taken any steps to enforce it. Might just be lip service
Allowing breakout of fees, but…see above. Big difference between allowing and requiring.
Knowledge of Market area. Great, but no enforcement. Drop in a statement, done.

All in all, I stand by my assertion that it is far more like HVCC, than substantially different, and that the changes are primarily for the benefit of the banks, and harmful to appraisers, borrowers, and loan originators.

Thanks again Michael, for prompting me to study the document!

FHA to Adopt HVCC-ish Guidelines effective January 1, 2010

September 30th, 2009 at 9:36 pm

Rhonda:

Of course, I know politicians need to kiss up to bankers, and anyone else with wheelbarrows full of cash.

It’s just that I had higher expectations for the new administration…how naive of me…

Cynics rule the day again.

FHA to Adopt HVCC-ish Guidelines effective January 1, 2010

September 30th, 2009 at 9:32 pm

Michael:

Universal disclosure may help get more dollars to the appraiser, and less to the AMCs. That would be a good thing, and I would support that.

But why would you assume Mr Mortgage Broker is colluding with Mr Appraiser? I never have, and I haven’t met anyone yet who has. I’m not suggesting it has never happened, in fact I’m sure that it has somewhere.

Why not assume Mr Banker is colluding with Mr Appraiser, since they both have incentive to complete the deal? That WAS what happened according to Mr Cuomo, with WAMU and their AMC.

These days it is rare that an appraisal isn’t reviewed by the lender’s appraisal review dept., well before it gets to approval. Pushing value doesn’t work. Appraisers know it, LO’s know it, and for the most part, borrowers now know it.

All that HVCC does is tilt the playing field to the advantage of the banks, and away from the borrower, the broker and the appraiser.

Now, they are doing the same to FHA appraisals. They adopted the majority of HVCC, and changed a small piece.

I cannot see that as a good thing.

FHA to Adopt HVCC-ish Guidelines effective January 1, 2010

September 29th, 2009 at 12:55 pm

Does ANYONE else find it duplicitous that only a month ago Commissioner David Stevens of the FHA said there were NO plans to adopt HVCC.

Google it.

“FHA Commissioner David Stevens recently said that they have no plans to implement the HVCC”

How is this NOT the HVCC? How do you release a plan a month later, that CLEARLY had to be in the planning stage when the press release was made, and say there is no plan.

Man, I am SO disappointed by this administration. They HAVE to do better at standing up for the people, instead kissin’ banker’s backsides.

Just another group of lying, self-serving, crooks…, only from the other side of the same coin.

Don't Pay Off Bad Credit

September 22nd, 2009 at 9:28 am

Ardell:

I do not think of the “7 year rule” as a guaranteed outcome, or a reliable rule.

One of the problems with credit reporting and scoring is that there are no hard and fast written rules that we can all play by. A lot of it is done according to hazy formulas.

Most people don’t really need to think much about their credit…just pay your bills on time, and keep your CC balances low, and it will all work out fine.

However, in my experience, those that have had a serious train wreck with their credit need to manage it carefuly over several years, as issues that have been beaten down can reappear. Some folks are great at managing the minutia of it, and some are not.

These days, unless you are going FHA, it is well worth the effort to keep your score above 740.

Don't Pay Off Bad Credit

September 21st, 2009 at 1:40 pm

Velma:

Most loan originators know credit counseling companies to recommend. Whenever a client has that many derogatories that they want removed, I will usually suggest they use a service.

Typical costs are around $100 set up, and a monthly fee of about $40 (until you decide to stop). You only get clerical help, but often that’s what is needed. They don’t do anything you cannot do yourself, but they can probably do it more efficiently.

I do not recommend paying a large sum upfront for “guaranteed” results. No one can guarantee the outcome of credit cleanup.

I have often worked with clients for a year or more, as they work their way through these kinds of issues, before they were ready to buy.

As always, consult a local mortgage professional, or in this case, a mortgage and a credit professional.

HVCC...I'm not making this stuff up.

August 19th, 2009 at 8:15 am

Here is some mainstream media coverage, mostly regarding out of area appraisers getting values wrong.

http://tinyurl.com/HVCC-from-WSJ

Rhonda, please tell Dustin the new format is not as good, it took me all of 5 minutes to navigate here!

RCG: Now with Seattle listing goodness

August 5th, 2009 at 5:24 pm

Dustin:

I hardly qualify as a web expert, more like a frequent customer and commentator.

I’d prefer stuff didn’t change so often. There’s too much of that going on all around us already.

I’ve failed to realize the positives, and the negatives are mostly a resistance to having to learn new changes.

Also, as alluded to in above comments, what is the motivation for the changes…who benefits?

That’s my 2 cents. Hopefully that doesn’t come off as “grumpy old man” talk…obviously, I hold the site in very high regard, and don’t understand why it had to change.

But then, I complain when my wife moves the furniture, too…

FHA Suspends Taylor, Bean & Whitaker

August 5th, 2009 at 1:00 pm

They also did FHA manufactured homes, many lenders won’t.

TBW has completely shut down originations, effective immediately. That’s left a lot of stranded loans, since they are not completing any loans in the pipeline.

I do not celebrate their demise, nor the suffering of their employees and customers.

And DFI has done quite a bit to shut down lending abuses, within the powers and resources that are granted to them. We could always hope for more, but the unintended consequences sometimes hurts folks that should not be.

Like borrowers …

Sigh…at least it resolved quickly, proving the dictum, be careful of what you wish for…

FHA Suspends Taylor, Bean & Whitaker

August 4th, 2009 at 11:01 pm

Ouch…it’s been a while since I have done a loan with TBW, but I liked them….decent products and pricing, very good on-line tools, and a first class local AE.

I was setting up to do a FHA Rehab purchase loan with them, hadn’t quite committed.

I sure hope this gets resolved soon.

Underwriting Update for Financing of Investment Property with Fannie Mae

August 2nd, 2009 at 1:28 pm

There could be even more twists…, which is why the “consult a local mortgage professional” adage makes sense.

I think it’s sorta funny that the BOA LO recommends checking out a credit union, rather than a wholesale lender, that has access to a wide variety of lenders and different guidelines.

Underwriting Update for Financing of Investment Property with Fannie Mae

August 1st, 2009 at 6:32 pm

Charles:

I don’t think you can technically buy a house you own. This sounds like a cash out refinance, at 50% LTV, with only one borrower (you), where you take the cash out and give it to your sister. Or, perhaps it is still in your parents name?

If it is in you and your sister’s name, you have to quit claim your sister off of title, and refinance in your name only. In WA state that would involve paying an excise tax, and some fees to a title company for the quit claim. Your sister would have to sign a few papers acknowledging the refinance.

If you and your sister are not on title, there are different issues.

Another answer (I’m borrowing Rhonda’s favorite phrase) is you should consult a local mortgage professional (get a second opinion), who is familiar with the rules in your area! Credit unions also sell their loans to Fannie/Freddie, so I don’t see how that would differ.

Selling the house to someone else does seem silly, especially since you seem to still want the house.

PMI Mortgage Insurance Company drop kicks Mortgage Brokers

August 1st, 2009 at 4:15 pm

I’ll have to see if I have the choice of PMI providers with our correspondent lines.

Might provide an alternative I’ll need someday.

PMI Mortgage Insurance Company drop kicks Mortgage Brokers

August 1st, 2009 at 1:18 pm

Rhonda:

Thanks for the heads up. I’ve searched their PMI’s website, but see no list of lenders that are cut off. We’ll probably receive notices from various lenders about the availability of PMI next week, or changes, as they line up new PMI coverage.

For the benefit of readers, loan originators (with brokers) do not select private mortgage insurance companies for their clients. That kind of arrangement happens at lender level. LO’s are generally aware of the guidelines for PMI companies, and costs to the borrower, available from pricing engines on their respective websites.

It’s been a while since I’ve used PMI on a loan that I have originated, mostly because it wasn’t needed, or if needed, made more sense as an FHA loan, which does not have “private” mortgage insurance, but does have FHA mortgage insurance.

Still, losing options to offer clients is never good.

The MI companies (MGIC, PMI and Radian) almost cratered on the stock market this year (losing nearly 90% of their stock value they had 2 years ago), but they have rebounded a bit since March. I don’t think I’d buy their stock right now.

Perhaps they made their decision on which banks to suspend based on who would agree to loan them money in a pinch?

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

July 25th, 2009 at 7:59 pm

They are bankers and think like bankers.

It doesn’t matter what they say the intent is, the actual intent is to lower compensation for ALL loan originators, whether they are employees of banks, mortgage brokers, or work for mortgage brokers, and eliminate or severely weaken competitors, with the ultimate goal of increasing the profitability of the banks that survive.

I think this further tilts the tables against brokers, since only banks can hide the SRP.

Brokers will probably have to work on a fee for service or hourly basis, which wouldn’t be so bad, except the banks will be able to hide their revenues, and squeeze down the disclosed fees, making it harder to show the consumer the benefit of working via a broker.

I imagine there are many forces that will work against this, but they will be vastly outspent by the forces that actually want this to happen (the folks that run the banks), even though they will weakly protest the imposition of more regulations.

The only regulations the banks will and have strongly protested is limitations on executive compensation.

Call me Mr. Cynical, but I have no confidence that the proposed changes will do anything to help consumers or workers in the lending business, since neither have the kind of resources to lobby the regulators that banks do.

Just see what HVCC did. Lowered compensation for workers (appraisers), increased costs for consumers, and enriched the banks and title companies that run the Appraisal Management Companies.

More of the same.

Unhonored Rate Locks

July 24th, 2009 at 9:55 am

Rhonda and Jun:

Let me chime in agreeing with Rhonda that the DU Plus Refi Plan has been surprisingly difficult for loan originators to execute, both at the retail and wholesale level.

I have completed several, and I am working on several more. They are not for the faint of heart.

I don’t say this to excuse the behavior of the loan originator you worked with, but to corroborate the difficulty we are all experiencing.

The DU Plus Refi is very attractive on the surface, and when it works it is an amazing improvement of a difficult situation, but there are many lenders that are not following the overall intent and guidelines established by the government.

From your information, it is not entirely clear why the loan would be in the DU Plus program, instead of a conventional refinance.

I hope you get some good advice, whether from a bank, or a broker, as both have good and bad loan originators.

I do feel that the broker should have refunded your check upon request, once it was clear that the lock was not honored. That only seems like the right thing to do, in that circumstance.

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

July 23rd, 2009 at 2:01 pm

Another mess in the making, I’m afraid.

Mortgage Brokers already must clearly identify any indirect compensation coming from the lender (Yield Spread Premium or Rebate) in the GFE.

That should be adequate protection for the consumer.

The only protection created by the proposed change inures to the benefit of those lenders that are NOT required to disclose indirect compensation, such as banks, and bank-like lenders.

Nearly every piece of federal legislation enacted or proposed in the past 3 years has diminished the survival prospects of mortgage brokers and small businesses, for the purported benefit of the consumer, but the actual results have largely benefitted large corporations and banks.

That goes to show you that the vast millions spent by large corporations and banks to lobby the government have not been wasted.

There is small consolation in knowing that the system works, at least for some.

Tales From the Dark Side #1

July 9th, 2009 at 11:29 am

Ray:

Welcome!

Sorry, but I do not understand the basis of this conflict.

While I might speculate that the cause was money, I may be off course

Could you elaborate?

Will the New National Loan Originator Exam be Too Easy?

June 26th, 2009 at 6:19 pm

CB:

Thanks for the insight, but I think we need both underwriters and LOs, and maybe the input from few appraisers, title specialists, and escrow folks, too, to come up with relevant education and testing.

I try not to do other people’s jobs in lending, but I do try to understand them, and of course, I am very interested in how underwriters do their jobs.

It appears from my observation that there is more to underwriting a loan than just black and white, and certainly different lenders publish slightly different guidelines, and likely train their underwriters to slightly different standards.

I completely agree that the questions and answers should accurately reflect how loan decisions are made and the lending process is carried out, but I would add that it should include more facets of the process than just the underwriters’ processes and decisions.

The decisions of other parties, including LO’s, are critical to the entire process working.

I’m glad I could keep the subject of testing interesting at least.

Thanks for chiming in!