Archive for the 'Real Estate News' Category

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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Greg Frost Sr.: Training industry leaders, planning for the future

June 21st, 2010

Written by Greg Frost

Things are always cooking here at Frost Mortgage, and last week was no exception. I wanted to share a couple of experiences in particular that I’m excited about.

Last week, I was the guest speaker at the Casa Latino National Franchisee meeting held in Orlando, Florida. We shared current mortgage industry information and conducted my Productivity Sales Training based on the 6 Scientific Principals of Ethical Influence.

This week I am in the airport and on the way to meet with the Primary Residential Mortgage, Inc. executive team for a 2-day Master Mind conference in Salt Lake City on Monday and Tuesday. Strategizing for continued industry leadership is the meeting goal, which includes design work on a new 580 FICO score FHA product that will be originated and serviced by Primary. I believe that a manually underwritten, common sense FHA product, without the severe FICO score overlays that are currently being imposed by the big Banks, is essential to simulating mortgage production and home sales. During the first 65 of the 77 years FHA has been in existence there was no FICO score a and no automated underwriting. Loans were manually underwritten to the FHA credit manual, and still should be.

Coming weeks are no less packed. What’s on your agenda?

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More light at the end of the tunnel

June 16th, 2010

Written by Frost Mortgage

It has been a long, hard slog, but we’re seeing increased confidence that the worst may be over. This week, for instance, Reuters reported, “A strong global economic recovery is under way, and is unlikely to be thrown off course by European debt woes or the improbable event of the bursting of an asset bubble in China, a top Federal Reserve official said on Monday.” That followed earlier remarks from Federal Reserve Chairman Ben Bernanke, who said European debt would probably only impact the U.S. economy in a “modest” way.

Another report this week found that “U.S. home prices were trending up in 155 out of 384 metro areas” thanks to “optimism that a sustainable economic recovery is underway.” And as our President, Greg Frost Sr., noted recently, “Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.”

We never recommend trying to “time the market.” It’s just too unpredictable for that. Instead, we have to look at sound financial practices with a long-term view in mind. We’re glad to see signs that the national mood is returning to normal.

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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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Broker/Owners and Producers: Thrive or Survive?

May 7th, 2010

Written by Greg Frost

Are you a Broker/Owner or Producing Branch Manager who is looking for a platform from which to catapult and grow your business for the next 5 years?

If so, you owe it to yourself to take a serious look at our Branch Partner business model.

• Top 20 National Lenders
• Billion Dollar Monthly Funding Capacity
• 2 Day Underwriting/ 1 Day Re-submits
• Very Competitive Pricing

In addition, you can count on my assistance at building a business plan that will allow you to thrive rather than survive. Please visit this page, designed just for you, today to learn more:

http://frostmortgage.com/branch-opportunities-e1/

If you are a Top Producing Originator who wants to enter the Mortgage Banking world under a Full Eagle, FHA/VA approved lender, please visit:

http://frostmortgage.com/loan-officer-e1/

Greg Frost

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Mortgage legend Greg Frost live on Twitter 5/10

May 7th, 2010

Written by Frost Mortgage

Frost Mortgage President Greg Frost will inaugurate #FrostMortgageMonday, a live interactive chat, on May 10 at 11:30 Mountain Time.

Whether you’re a homebuyer with a mortgage question or a top producer, broker or loan officer looking for industry insights, this will be a unique opportunity to interact with an industry legend.

Greg has been the #1 residential Mortgage Lender in New Mexico since 1985 and is consistantly ranked by Mortgage Originator Magazine among the top 20 Mortgage Originators in America.  Greg is also noted as being the first $Billion Dollar$ Loan Originator, and he is a renowned speaker, trainer and consultant.

Click here to follow Greg Frost on Twitter.

You can also read more about the use of “hashtags” like #FrostMortgageMonday on Twitter or visit TweetChat for an easy way to follow the conversation.

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Frost Mortgage: 19 branches and growing

May 5th, 2010

Written by Frost Mortgage

Many people may not realize the full reach of Frost Mortgage’s business operations. As we’ve noted in our ad in National Mortgage Professional, we can tap up to up to $2 billion of monthly warehouse capacity with 48-hour underwriting. So whether you’re a Producing Branch Manager looking for a Branch Partner opportunity or you’re looking to borrow, Frost has what you need.

For both our partners and potential borrowers, the great news is that our geographic reach has grown to national proportions. In addition to our home base of New Mexico (including Albuquerque and in fact the whole state), our Branches are now serving buyers from (click anywhere to find a loan officer in one of these locations) California (both northern California and other areas such as Santa Rosa, Irvine, Laguna Hills, Solana Beach, Santa Ana, Westlake Village and Lancaster), Florida (Miami and Jupiter), on up to Virginia (Winchester) and Maryland (Abingdon and Upper Marlboro), then back to the middle of the country in states such as Texas (Dallas and Lewisville), Ohio (Lancaster), Illinois (St. Charles), Missouri (Ofallon) and Colorado (Greenwood Village). With all these locations, it’s likely we can help you as you look for your next home. What’s more, we’ll respond quickly.

So please, call us today and learn more about why Frost Mortgage doesn’t just close loans–we open doors.

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FHA: Reverse mortgage support is crucial

May 4th, 2010

Written by Frost Mortgage

Reverse mortgage programs operated by Housing and Urban Development (HUD) require help to continue, the Federal Housing Authority (FHA) told a House subcommittee recently, Reverse Mortgage Daily reports.

In testimony, an FHA assistant secretary said that, without support, HUD will be forced to more drastically cut principal limit factors (PLFs), which “would significantly reduce the amount of funds that would be available to seniors (more than 30%), which is on average a $23,000 to $27,000 impact.”

We know what a reverse mortgage can mean to older members of our community. As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.

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Possible extension for rural housing program

May 3rd, 2010

Written by Frost Mortgage

The Rural Housing Service’s single-family program (subscription required) is almost out of loan guarantee authority, but a bill passed by the House and potentially being taken up by the Senate this week would extend it to Sept. 30, giving it time to become self-funding by raising its fee to 4 percent (it is currently 2 percent). The Agriculture Department-managed program has been extremely popular.

U.S.Department of Agriculture (USDA) loans are one of our specialties, and we’ll be watching these developments closely. Please click today to find a friendly, helpful loan officer in your area.

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Positive news for insured loans

May 3rd, 2010

Written by Frost Mortgage

Private mortgage insurers are coming back to the market, the Los Angeles Times reports, even as the Federal Housing Administration (FHA) is pulling back.

Private insurers had almost completely left the sector. Last year, the Times reported, the FHA insured roughly 30 percent of low-down-payment (less than 20 percent down) single-family loans; 10 percent would be considered appropriate. The FHA has also raised down-payment requirements on insured loans.

The move by the private insurers, though, signals increased confidence about the economy, the Times notes.

Changes are happening fast, and it remains a great time to consider a Net Branch Partner opportunity. Please contact us today and learn why our offering is among the best in the business.

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