Archive for the 'Mortgage / Credit' Category

Rates are even lower and tax credits may be extended

July 1st, 2010

Written by Frost Mortgage

It’s a busy week in the news for potential homebuyers.

First, both 15-year and 30-year loans hit record lows for the second week in a row.

Second, as Reuters reports, the tax credit extension has passed a key hurdle:

The House backed by a vote of 409-5 a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

The measure must also go before the Senate for approval.

Rates are dropping and home sales are also down.

What this means is an exceptional window of opportunity for those looking for a new home. Please contact one of our loan officers today and allow us to help you find out what is available to you. We think you’ll be glad you did.

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#Albuquerque among MSAs removed from “distressed” list

June 22nd, 2010

Written by Frost Mortgage

Good news for the Duke City: Albuquerque is one of 105 metropolitan statistical areas (MSAs) to be taken off the PMI Distressed Markets List.

As MortgageDaily.com reports (subscription required), the change is part of a spate of positive news:

“Mortgage insurance companies are easing guidelines, increasing loan amounts and eliminating declining market status for many metropolitan areas. The relaxed standards are emerging as the sector is seeing improved conditions.”

Other areas removed from the list included Chicago, Los Angeles, New York City, Boston, Seattle and Washington, D.C.

The Federal Reserve Bank of San Francisco describes Private Mortgage Insurance (PMI) as “extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.”

Here at Frost, we’re happy to see positive changes in the market that will make it easier for qualified buyers to access this invaluable resource.

If you are looking for a home loan for your next life move, please call us today and let us help you.

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FHA loans: Net worth timeline, new monthly scorecard

June 22nd, 2010

Written by Frost Mortgage

The Federal Housing Administration (FHA) has been busy recently.

We’ve written before about a move to raise the minimum net worth worth requirements for loan originators. The FHA recently set out a timeline for implementation (MortgageDaily.com; subscription required). Among the requirements is a $1 million net worth for all new FHA applicants, with at least 20 percent being liquid. The timeline was announced in a mortgagee letter.

The new requirements are likely to shake up portions of the mortgage industry, making it all the more important to look for evidence of stability in your potential lending partner (such as Frost Mortgage’s “Full Eagle” status). If you have any questions, please feel free to contact one of our loan officers today–we’ll be happy to talk with you about our qualifications and the depth of our resources.

Meanwhile, the U.S. Department of Housing and Urban Development (HUD) and the Treasury Department have announced that they’ll be distributing a monthly “scorecard” on the national housing market, including updates on FHA programs. This should be a good resource for those of us who follow the industry closely and should help  us and our branch partners continue to provide you better service and useful products.

If you’re in the market for a loan, now is a great time thanks to low interest rates, and if you’re considering making a move up in the business, it’s a great time for that as well–Frost Mortgage has one of the best programs in the mortgage industry, and we’ve got the resources to thrive even in an environment like this one.

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Video: Catch the latest dish on our new commercial

June 3rd, 2010

Written by Frost Mortgage

Here at Frost, we believe there are a few fundamental things that bring true joy to life. One is our homes, of course. Another is our food. That’s why we’ve become such big fans of New Mexico’s Hot Chefs. Have a look and then give us a call to see what we can whip up for you.

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Are Jumbo mortgages coming back?

June 2nd, 2010

Written by Frost Mortgage

The Mortgage Bankers Association suggests the news is mixed on whether Jumbo loans will make a comeback, though most agree they’re not likely to hit pre-crash levels anytime soon. Still, the first quarter of this year was above 2009 averages, and the idea is at least on people’s minds again.

Here at Frost Mortgage, we’ve consistently said it’s impossible to time the market, and we believe great producers make their own fortunes. If you’ve got what it takes and you’re looking for the best platform in the mortgage business, please look at our Branch Partner Opportunities today. We think once you’ve compared our numbers to the competition’s, you’ll be glad you did.

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Final days for ’seller concessions’

June 1st, 2010

Written by Frost Mortgage

The writing is on the wall for funds for homebuyers from sellers that can pay for some services and taxes in the transaction. As the Washington Post explains,

Say you’re buying a $200,000 house. If you are using FHA [Federal Housing Administration] financing under current rules, you can structure the contract so that the seller agrees to pay at settlement all closing costs and even the cost of some needed repairs, up to 6 percent of the price, or $12,000. On a $400,000 house, allowable concessions go to $24,000. That’s huge, especially if you have to struggle to come up with a 3.5 percent down payment and you’re not sure where you’ll find the closing and repair money.

Contrast that with using Fannie Mae or Freddie Mac conventional financing, in which seller concessions generally are limited to 3 percent. For many buyers, the extra negotiating flexibility built into the FHA program makes the choice of programs a no-brainer.

Sometime this summer, though, seller concessions will be cut to a maximum 3 percent. The precise timing is unknown because the announcement had not been made in the Federal Register, but the message is clear: Act now if the concession affects your deal.

We can help. Frost Mortgage is a “Full Eagle” FHA expert. Please contact one of our experienced loan officers today and we’ll quickly help you work through any questions. Because at Frost Mortgage, we don’t just close loans–we open doors.

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‘Qualified mortgages’ to be exempt from new risk requirement

June 1st, 2010

Written by Frost Mortgage

The recent “Wall Street Reform” bill required that 5 percent of a mortgage be retained as a buffer against risk. Fortunately, as National Mortgage Newsreports, a measure passed in May amended that requirement to exempt “qualified mortgages” (subscription required)–those that are generally fully documented and include 20 percent down and mortgage insurance. We agree with Sen. Johnny Isakson, one of the co-sponsors of the bill, who said, “Risk retention is not the cure-all for good lending–underwriting is.”

If you’d like to join a mortgage group that values smart thinking and solid principles like these, please look into our Branch Partner Opportunities. We’re always looking for qualified new partners for this industry-leading offering.

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Reverse Mortgage program: Be aware of possible changes

May 25th, 2010

Written by Frost Mortgage

The future of the FHA Reverse Mortgage program is in jeopardy. Frost Mortgage helps seniors find home loans through this great program, but we’re disappointed to see that, without $250 million from Congress, the principal amount of a new loan for seniors (subscription required) could be reduced by 30 percent, according to National Mortgage News.

Even though HUD officials say the appropriation for the Home Equity Conversion Mortgage (HECM) may not receive its appropriation in the coming fiscal year, we hope you won’t be discouraged from looking into the program. For the moment, we’re able to provide loans as usual, and even should the appropriation fall through, we know many of the fine points that can make the difference in tapping into your home’s equity.

So please, contact one of our loan officers today and let us help you leverage your home in a way that will give you long-term peace of mind through a top-quality reverse mortgage.

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'This is going to be the year for e-mortgages'

May 13th, 2010

Written by Frost Mortgage

National Mortgage News reports on the rise of ‘e-mortgages’ (subscription required), in which documents are stored and submitted electronically. The article focuses on Xerox Mortgage Services’ “e-vault” product, which “leverages industry standards and platforms, including the Mortgage Industry Maintenance Standards Organization and the MERS eRegistry, making the system agnostic to document provider or closing platform. In addition, the e-vault has undergone integration testing with Fannie Mae’s e-mortgage delivery system, offering Fannie Mae sellers a streamlined approach to delivering e-mortgages.”

A Xerox vice president is quoted as saying, “We’re big believers that this is going to be the year for e-mortgages.”

At Frost Mortgage, we’re also big believers in technology (as evidenced by our participation in social media). If you’re interested in joining us on the cutting edge, please visit our Branch Partner Opportunities page and then call us.

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Appraisals must now be electronic, Fannie says

May 11th, 2010

Written by Frost Mortgage

Fannie Mae has begun mandating that appraisals be delivered by lenders electronically, according to National Mortgage News.

Lenders will have several options for providing the information according to MISMO standards (”the leading technology standards development body for the residential and commercial real estate finance industries, is a wholly owned subsidiary of the Mortgage Bankers Association”). Smaller lenders may upload PDFs or use the XML format using a Web portal, while larger lenders may work
directly with Fannie’s chosen technology provider, Veros Real Estate Solutions.

According to one analyst, “the migration to the newly adopted valuation standards will largely be invisible to the lending community on the origination side” but is expected to have significant impacts on secondary markets.

Are you a top producer who follows news like this? If so, visit our site and find out why our Branch Partner Opportunities are among the best in the business. Come see why we don’t just close loans, we open doors.

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