The Mortgage Market has been relatively steady during this recent increase in home sales over the last few weeks.

Rates have remained in the mid to low five’s and been showing no real indication of moving in the short term.

However! There have been some changes – Fannie Mae is getting tougher on Mortgage Insurance, Credit Scores and Income levels! In an internet document the mortgage backer discussed changes to its level of risk. Fannie Mae set December 11, 2009 as its “effective date” for the changes.

Guideline changes are summarized, below:

• Minimum credit score requirement raised to 620
• Total debt-to-income levels may not exceed 45 percent, except by exception
• Loan-level pricing adjustments for loans with “minimum” PMI coverage.

Loan-level pricing adjustments are specific fees assessed for specific risks. Based on the current lender guidelines, if your credit score is low, or if you’re doing a cash-out refinance or if you live in a condo and have little equity, you’ll pay an extra fee to Fannie Mae for your mortgage. This adjustment has been around since April 2008 and has been modified 9 times since then!

 With levels of inventory falling and home sales increasing now is definitely looking like the last chance to get a great home at a great price as the economy and market start to recover.

By utilizing Clarus MarketMetrics® users can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

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The mortgage industry is in a state of flux right now as it is coming to terms with a housing market now on the grow and new government rules.

Coming September 1st there are some changes as conforming mortgage approvals get tougher. Fannie Mae is imposing strict new lending guidelines that should slow down purchase and refinance activity in some areas of underwriting.

There are 15 areas of underwriting to be effected, In a public announcement, Fannie Mae defends its pending changes, citing high levels of unemployment, a surge in mortgage fraud, and general market fluctuations.

Here are some of the more salient points for the 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 for service persons must be documented and verified.
• Trailing secondary wage earning is now prohibited. (expected income cannot be used)
• Stocks, bonds and mutual funds are “worth” 70% of their current market value as reserve funds. Formerly, securities were taken at 100% of value.
• Retirement assets are counted at 60% of their current market value. Formerly, retirement assets were taken at 70% of value.
• Refinancing owners and new buyers of 2-unit homes now face higher minimum FICO requirements and lower maximum LTVs. (Meaning stricter guidelines for what was before treated as a single family home)

These changes will of course mean that underwriters will kick back many loans – so this is big news! Those who are dawdling with their application are advised to get moving and get it into underwriting!

Also according to the Mortgage Reports, as the U.S. economy appears to be recovering from recession it could mean that mortgage rates fall in the next few weeks.

Agents are instrumental in conveying such information about up coming changes to their clients to help them to get moving with getting loan pre-approval.

By utilizing Clarus MarketMetrics® users can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

Subscribe to our blog using our RSS feed. (Click here!)

It seems like there is a lot going on in the mortgage industry these days and that getting the right information is becoming of the highest importance.

In truth, the mortgage industry is licking its wounds after what is one of the most violent brawls in a generation. Even today 12th largest mortgage lender in the US, Taylor, Bean and Whitaker has shut down its mortgage lending operations after the Federal Housing Administration barred it from making loans that the agency insures.

However away from the negative, there are signs of hope, rates are still historically low and with opinion divided on whether they will rise in the short term, it may be wise to get a loan today – particularly with the great selection of inventory available.

In fact, opinion is nearly equally divided on what rates will do, as reported by The Mortgage Report Blog:

• 31% predict mortgage rates will increase
• 38% predict mortgage rates will decrease
• 31% predict mortgage rates will remain unchanged

Also, the Obama administration is making much noise about lenders speeding up the refinance and loan modification process for homeowners.

In fact, Freddie Mac has produced a video on Youtube to help homeowners speed up the process themselves, helping them through the myriad of paperwork that is requested by loan servicers. See it here:-

So, really in short, things are starting to look up – there has never been a better time to get a good FHA loan or conventional, conforming mortgage. Provided that you are methodical in your mortgage application (i.e. overwhelming a lender with information showing you are a good credit risk). But with Jumbo and other non conforming products there is still much work to be done…rest assured we will keep you posted!

By utilizing Clarus MarketMetrics® user can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

Subscribe to our blog using our RSS feed. (Click here!)