Author Archive

Selecting FHA Loan Can be a Viable Choice

January 10th, 2012

Written by Frost Mortgage

The Federal Housing Administration provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. The benefit for you is that the regulations are quite a bit easier to meet than standards set by the government-sponsored enterprises such as Fannie Mae and Freddie Mac. Because the FHA is a department of the government, the insurance is backed by the strength of the United States and its taxpayers.

FHA loans used to have some very difficult restrictions to overcome. There was a limit to the types of closing costs that could be charged and the property had to meet certain conditions before the borrower could take possession.

There still are appraisal issues that must be met regarding livability of the home. A working heater, no chipped paint and a working stove are a couple of the appraisal regulations that exist. I say appraisal because FHA-certified appraisers are mandated with looking at the property from a compliance standpoint. There are no longer onerous fee restrictions and for the last two years FHA has accommodated higher than usual loan amounts.

With all this accommodation the FHA loan for the purchase of a new home has become quite popular. Underwriting restrictions are minimal in comparison to Fannie Mae and Freddie Mac. An FHA loan can be written electronically or manually. The benefit is that a manual underwrite means a person is considering the information in the file. This allows for explanations regarding income or credit issues.

The FICO requirements are lower and the down-payment can be as low as 3.5 percent of the purchase price. When closing your loan the up-front premium is paid by you but financed in to the loan and the annual premium is paid monthly through your mortgage payment.

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FHA Extends Waiver on House Flipping Rules

December 29th, 2011

Written by Frost Mortgage

WASHINGTON (CN) – The Federal Housing Administration will extend a waiver on its anti-flipping regulations until Dec. 31, 2012.
     ”This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Acting FHA Commissioner Carol J. Galante.
     

Under regulations adopted in 2003 the FHA does not insure mortgages on houses sold within 90 days of the re-seller’s acquisition, unless that seller meets certain exemptions such as being a government-sponsored entity or nonprofit organization approved to purchase homes owned by the Department of Housing and Urban Development.
     

The FHA said it adopted those regulations to protect consumers against collusion by mortgage lenders and appraisers to inflate the price of properties to which a speculative buyer has made only superficial improvements, if any.
     

Since the original waiver took effect in February 2010, the FHA said, it has insured nearly 42,000 mortgages worth more than $7 billion on properties resold within 90 days of acquisition.
     

The FHA said it had research showing that the regulations discouraged sellers from accepting FHA-backed buyers at a time when it needs to do everything possible to promote recovery in the housing market.

 

By TRAVIS SANFORD

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Greg Frost Sr. Featured in the New Zealand Mortgage Mag

December 14th, 2011

Written by Frost Mortgage

Greg Frost Sr. was chosen as the keynote speaker for the New Zealand Mortgage Brokers annual kickoff conference recently and featured on the cover of Volume 10, Issue 7 of the New Zealand Mortgage Mag. Greg Frost Sr. delivered ” A strong dose of Frost bite” to the attendees of the conference and the magazine’s Sr. writer, Jenny Ruth.

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Senate Backs Plan to Help Americans Buy Homes

October 21st, 2011

Written by Frost Mortgage

The Senate voted 60-38 to continue to allow the government to buy or insure home loans for as much as $729,500 in expensive housing markets. The higher conforming loan limit lapsed at the end of September, falling back to $625,500, but most senators believe the lower ceiling would make it more difficult for people to buy homes and would further weaken the housing market. The proposal will be attached to a spending bill that the chamber will consider later this year.

Reuters (10/21/11) Younglai, Rachelle

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Fixed Rate Mortgages Hit Record Low of 4.01 Percent

September 30th, 2011

Written by Frost Mortgage

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), coming on the heels of the Federal Reserve’s recent announcements as the conventional 30-year fixed-rate mortgage (FRM) averaged an all-time record low at 4.01 percent, with an average 0.7 point for the week ending Sept. 29, 2011, down from the previous week when it averaged 4.09 percent. Last year at this time, the 30-year FRM averaged 4.32 percent.

 

www.nationalmortgageprofessional.com

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Aristotle wrote………”the proof that you know something is that you are able to teach it.”

August 24th, 2011

Written by Frost Mortgage

Greg Frost, the mortgage industry’s 1^st Billion Dollar Originator, knows how to develop unique value, build reciprocal relationships and leverage every loan in process into several additional opportunities.

He has mastered how to achieve multimillion dollar per month personal production year after year throughout his career.

He knows how to do it.  He revels in every opportunity he has to share how it is done.

Greg just returned from New Zealand where he shared his strategies with hundreds of Kiwi Loan Advisors at the NZMBA annual convention to rave reviews.

Consider inviting Greg to teach your team.  You’ll be glad you did.

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Mortgage Rates Hit 4.15 Percent, Lowest Mark in Five Decades

August 18th, 2011

Written by Frost Mortgage

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing mortgage rates, fixed and adjustable, reaching all-time record lows providing further incentive for those homeowners looking to refinance. The 30-year fixed-rate mortgage (FRM) averaged 4.15 percent with an average 0.7 point for the week ending Aug. 18, 2011, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.42 percent. The 30-year fixed average of 4.15 percent, breaks the previous record low of 4.17 percent set on Nov. 11, 2010.

 

Thu, 2011-08-18 10:32 — NationalMortgag…

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Mortgage Rates Keep Dropping

August 12th, 2011

Written by Frost Mortgage

Mortgage borrowing costs continued a downward trend this week, according to Freddie Mac, as 30-year fixed rates dipped to the lowest point of the year and 15-year fixed interest fell to an all-time low. Freddie Mac said interest on the former averaged 4.32 percent, while the latter settled at 3.5 percent. The favorable rates sent loan applications up more than 20 percent, the Mortgage Bankers Association indicated, with refinance activity climbing 30 percent.

Los Angeles Times (08/12/11) Reckard, E. Scott

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Greg Frost Keynote speaker at New Zealand Mortgage Bankers Association Conference

July 15th, 2011

Written by Frost Mortgage

Greg Frost will be the key note speaker at the New Zealand Mortgage Bankers Associations annual conference in Auckland, the first week of August.

Darren Pratley, President of the New Zealand trade association reports that registrations for the August 4 conference are already the largest ever.  “We made a decision to hire mortgage industry icon, Greg Frost, to come all the way from the U.S., to share his proven production strategies with us. This has stimulated tremendous interest in the meeting and is proving to be a very good investment.”

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Mortgage Rates Hold Near Lows

July 5th, 2011

Written by Frost Mortgage

Mortgage interest remained near annual lows last week, with the 30-year fixed rate averaging 4.51 percent compared to the year’s low of 4.49 percent reached three weeks ago. The 15-year fixed rate, meanwhile, stood fast at 3.69 percent after hitting its 2011 low of 3.47 percent two weeks ago. Trackers say expiration of the central bank’s $600 billion bond purchasing program — which pushed down Treasury yields and, subsequently, mortgage rates — could mean higher interest this summer.

 

 

Detroit News (07/04/11) Kravitz, Derek

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