Blog of the Mortgage

 The Whole Industry is a-twitter with the ongoing changes that are happening with regard to loan limits, FHA Expansion and the Mortgage Insurance Companies Reigning in our Lending standards to fit their guidelines.
You've probably read some or all of what I've had to say over the last couple of months but if you haven't you can keep abreast of the change(s) and my commentary on my Blog Here:

This Morning some exciting Updates: Posted Here on Education Station:
1. HUD is going to release the new loan limits based on Median Sales prices around the country this week.

2. DPA (Down Payment Assistance)  Programs are getting a much needed respite from legal injunction this week and going forward in perpetuity as they have been declared legal by the U.S. District Court that was overseeing the case to remove these programs in their entirety.
This is a great news as it will continue to allow for true 100% Financing with FHA programs going forward.

Some Caveats:
HUD has not released any stipulations as to changes in underwriting Guidelines.
There are whispers that larger loans (like those in the S.F. Bay Area) might have 2 appraisals required.
The same goes for the GSE's.
You'll recall that I wrote in this space that there was likely going to be a price adjustment and then I confirmed my own suspicion here again after the SIFMA decided against allowing the larger (LFKAJ*) conforming loans into their TBA pools.

Also to note: The GSE's will likely be delivering their version of the new loan limits this week as well, this could get confusing as there are supposed to be two seperate lists published by HUD(for FHA) and the GSE's. eghh!

If you're hoping to start slamming Conforming loans to 90% max LTV/CLTV through my doors in the coming months, which I fully expect, you might find that there will be different guideline requirements for any loans over the current max limit of $417k. So, Ladies and Gentleman, start your engines but be gentle and let them idle(?) until we know more about who and what kind of larger (LFKAJ*) conforming loan amount might be permitted and how it might be priced.

FHA is really starting to look better and better here.
Franklin American brings over 15 Years of Underwriting Experience to support your team!

With our Turn times at Just 2-3 Days and pricing as hot as it is you can't go wrong!
*LFKAJ - from Tanta over @ Calculated Risk
Loans Formerly Known As Jumbo
Posted by Raoul Badde on March 4th, 2008 8:31 AMPost a Comment (0)
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