Brought to you by Christian Penner, Mortgage Broker West Palm Beach talks about Real Estate West Palm Beach.  He also serves other Local Areas and provides home Mortgage Solutions for Palm Beach Gardens, Jupiter, Boca Raton, Wellington and Tequesta.  Christian Penner Mortgage Broker Jupiterhas the lowest mortgage rates and the best home mortgage programs like; Jumbo loans, FHA Home Loans, VA Home Loans, Reverse Mortgage Home Loans, Freddie Mac Home Loans, Fannie Mae Home Loans and HARP Mortgage Loans. Christian Penner Mortgage Broker Palm Beach Gardens has Served the area for over 15 years with his Home Loan Lending Needs. 

Christian Penner, Mortgage Broker West Palm Beach talks about Real Estate West Palm Beach.  He also serves other Local Areas and provides home Mortgage Solutions for Palm Beach Gardens, Jupiter, Boca Raton, Wellington and Tequesta.  Christian Penner Mortgage Broker Jupiter has the lowest mortgage rates and the best home mortgage programs like; Jumbo loans, FHA Home Loans, VA Home Loans, Reverse Mortgage Home Loans, Freddie Mac Home Loans, Fannie Mae Home Loans and HARP Mortgage Loans.Christian Penner Mortgage Broker Palm Beach Gardens has Served the area for over 15 years with his Home Loan Lending Needs.

I make my living in the housing industry. The whole country has suffered the past few years because of the problems created by the mortgage mess. The housing industry is still struggling to get back on it’s feet.

In his State of the Union address and in subsequent speeches President Obama has been talking about his “Blueprint for an America Built to Last.”

I got a copy of the plan to see what it is all about. To see a copy click on:

President Obama’s Plan to Help Responsible Homeowners and Heal the Housing Market

While I want as much as anyone for the housing market to come back reading the plan I have to wonder if it’s a plan for recovery or a political document to help with getting elected.

Blue Print America Built to Last

A big talking point has been the Homeowner Bill of Rights and the Blue Print for An America Built to Last

The first two points are:

Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.

In 2009 the government designed and mandated that the lending industry use the current Good Faith Estimate now given to borrowers. I took hours of classes learning to complete it correctly and real estate agents took hours of classes learning the new HUD1 form. I’d welcome a simple form but blaming the industry for the current confusion is just wrong.

Full disclosure of fees and penalties.

It seems they don’t know they also passed legislation holding lenders responsible for the fees that are disclosed to a borrower at application. A lender is financially responsible for under disclosing fees (even fees they don’t control) including those charged by title companies and state and count recording fees. Anyone who has been to a settlement is familiar with “Charges That Cannot Increase, Charges That in Total Cannot Increase More Than 10% and Charges That Can Change.”

The plan also calls for Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work.

Now don’t get me wrong. This crisis has created a lot of pain for a lot of people and they need help. But is letting them not pay their mortgage for a year a solution to the problem or are we “kicking the can down the road” for someone else to worry about.

Who hasn’t heard Congress and the President rail against the abusive loans that caused the crisis. (A side note: all the loan types weren’t bad. They just got to liberal in underwriting and approving them)

The plan calls for Providing Non-GSE Borrowers Access to Simple, Low-Cost Refinancing. It has been proposed that “The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA.”

Simple and straightforward eligibility criteria. Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

* They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more that one payment in the 6 months prior. (Sounds reasonable to me.)

* They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers will have a credit score adequate to meet that requirement. (If you want to get a new loan most loan programs want a minimum 640 FICO score. By meeting certain criteria you can lower the FICO score to 620.)

Streamlined application process: ”To determine a borrower’s eligibility a lender need only confirm that the borrower is employed.” (Sound’s like the no-doc or no-income loan they have said were bad and don’t allow any more.) “Those who are not employed may be eligible if they meet other requirements and present limited credit risk.” (I’d love to know what those requirements will be.)

The program will be funded by “Creating a separate fund for new streamlined refinancing program. This will help FHA better track and manage the risk involved and ensure that it has no effect on the operation of the existing Mutual Mortgage Insurance (MMI) fund.” (So were taking loans that were made in the private sector and giving them a government guarantee and if they lose money well take it out of the left pocket instead of the right pocket? To me a loss is a loss)

Now to pay for the program the Refinancing Plan Will Be Fully Paid For By a Portion of Fee on Largest Financial Institutions: The Administration estimates the cost of its refinancing plan will be in the range of $5 to $10 billion, depending on exact parameters and take-up. The cost will be fully offset by using a portion of the President’s proposed Financial Crisis Responsibility Fee, which imposes a fee on the largest financial institutions based on their size and the riskiness of their activities – ensuring that the program does not add a dome to the deficit. (And do you thing “the largest financial institutions” are going to absorb that fee or is it more likely to be passed on to all consumers through higher fees and other cost. Are you aware the “Two month tax holiday passed in December is being paid with higher fees being charged by Fannie Mae, Freddie Mac and FHA. The new fees will be in effect for 10 years to pay for a 2 month thx holiday.)

I’ve been getting a lot of questions about HARP 2.0 refinancing program which was announced in November. It’s my understanding that the automated engines used to underwrite these loans will be ready in mid-March. I still an waiting to get details of what the requirements will be.

I’d love to hear your feedback on the proposed Presidents Plan To Help Responsible Homeowners and Heal The Housing Market.

Christian Penner, Mortgage Broker West Palm Beach talks about Real Estate West Palm Beach.  He also serves other Local Areas and provides home Mortgage Solutions for Palm Beach Gardens, Jupiter, Boca Raton, Wellington and Tequesta.  Christian Penner Mortgage Broker Jupiter has the lowest mortgage rates and the best home mortgage programs like; Jumbo loans, FHA Home Loans, VA Home Loans, Reverse Mortgage Home Loans, Freddie Mac Home Loans, Fannie Mae Home Loans and HARP Mortgage Loans. Christian Penner Mortgage Broker Palm Beach Gardens has Served the area for over 15 years with his Home Loan Lending Needs. 

If you need some inspiration then you need to watch this video with Jason Mcelwain. What an amazing story!!!

Feel Good Fridays with Christian Penner

I have some exciting news! I wanted to let you know that amidst all of the negative economic news, home loan rates have actually rallied and reached near record low levels. My team is having a lot of fun helping our clients take advantage of this opportunity!

By KIMBERLY MILLER

Palm Beach Post Staff Writer

Three months after the Oba-ma administration announced a revolutionary refinance plan for severely underwater homeowners, most borrowers are still unable to apply.

Technological barriers, as well as lingering questions about the new Home Affordable Refinance Program, have left many optimistic homeowners in a holding pattern as they watch interest rates bump around near record lows. Last week’s 3.98 percent for a 30-year fixed-rate loan marked the eighth consecutive week that the average was below 4 percent.

But a mid-March update to automated loan approval systems at federal mortgage backers Fannie Mae and Freddie Mac should start things flowing, mortgage brokers said.

The automated systems are set to reject refinances on loans where the borrower owes more than 25 percent on the loan over what the home is worth – the limit under the old federal Home Affordable Refinance Program .

HARP 2.0, as the new program is sometimes called, has no cap for most refinances.

Until Fannie and Freddie update the underwriting program, banks that give refinances to severely underwater borrowers don’t know if the two enterprises will buy the loans or if the banks will be stuck with them on their books.

“If the loan is ineligible with Fannie, then you are underwriting it at your own risk, and it’s that risk that no one is willing to take,” said Tina Mulligan, vice president of the Florida Association of Mortgage Professionals. “You won’t see many applications being taken until probably after March 1.”

Fannie Mae and Freddie Mac buy home loans from lenders with a guarantee against default and sell them to investors worldwide. They own or guarantee about half of all U.S. mortgages.

Only Fannie Mae and Freddie Mac loans are eligible for HARP 2.0.

President Obama announced another new refinance program during last week’s State of the Union address that would allow privately held underwater mortgages to refinance.

The proposal, which would require approval from Congress, could save homeowners about $3,000 a year on their mortgage, Obama said.

“No more red tape. No more runaround from the banks,” he pledged.

To qualify for HARP 2.0, borrowers must be current on payments, have no late payments in the past six months and no more than one late payment in the past 12 months.

While there have been delays, some lenders are making headway on HARP 2.0.

Bank of America rolled out a program on Jan. 17, but only to its mortgage customers, said spokesman Terry Francisco. CitiMortgage and GMAC Mortgage also are accepting applications from their customers.

JP Morgan Chase spokeswoman Melissa Shuffield said the bank will begin processing HARP 2.0 refinances from its customers on Feb. 6. Wells Fargo does not have a timeline for implementation.

“We’re optimistic we can begin taking those applications within the next few weeks,” Wells Fargo spokesman Jason Menke said. “We don’t have a lot of specifics to share right now, but obviously we’re working to implement the HARP changes as quickly as possible.”

For homeowners whose loans are serviced by non-lending institutions, it could be mid-March before they can apply.

One benefit of the new HARP is that homeowners who refinance into shorter-term loans should see interest rates that are comparable to those charged to borrowers who have equity in their home. Traditionally, the more underwater a homeowner is, the higher the risk and thus the higher the interest rate.

Also, fees will be reduced or eliminated for high-risk borrowers who refinance into loans shorter than 30 years.

“My office probably fields four to six calls a day on this program from people who are inquiring about it and asking when it’s going to be available,” said Jon Turla, president of the Tallahassee-based Florida Association of Mortgage Professionals. “We tell them it was announced, but as of right now we don’t have the ability to take applications or close the mortgage.”

“Yes, the full program doesn’t hit until right after St. Patty’s Day, but interested homeowners should not wait to begin the process,” he said. “Thousands of homeowners will be applying to take advantage at the same time.”

Starting NOW!

This Has Not Occurred Through Market Conditions but by Rather Through Legislation Passed and Signed A Couple Of Weeks Ago.

Congress Was Working on the Renewal of the Payroll Tax, Which Funds Social Security, Extended Unemployment and Things like that.

It was Approved and Passed and President Obama said ” This is Some Good News Just In The Nick Of Time For The Holidays”.

This is Some Good News Just In The Nick Of Time For The Holidays".

Unfortunately This Comes With a Perminate Hike to FHA Mortgage Insurance Premiums and at Least a 10bps Hie to Fannie Mae and Freddie Mac Convential Financing.

Permanent Hike to FHA Mortgage Insurance Premiums

 A Rate Hike that will Cost Between .375% and .5%  on all Freddie Mac and Fannie Mae Loans

Freddie Mac and Fannie Mae