Rate Update: 3.49% is Available! Thats Right, I said 3.49%!

Heres the catch: In order to get this rate, you gotta have at least a 750 middle fico score, an ltv of 80% or below, a loan amount of $200,000 or more (up to 417,000.00) and its gonna cost you 1.5 points total. One last thing, this is a 5/1 adjustable and these rates are for Florida only (other states could be more or less, but i mainly do loans in florida). If you want a little more security, i can do a 7/1 arm at 3.99, same cost. Get em' while they're hot, these rates wont last long! (apr 3.6 and 4.09 respectively and obviously not everyone will qualify for these rates)




Posted by Joseph P. Mazzei at www.mymortgagebroker.blogspot.com

PLEASE TAKE ME BACK! I'VE CHANGED!! IT WILL BE BETTER THIS TIME, I SWEAR!

Does this blog title sound like a desperate lover who has just been dumped? A jilted lover begging for forgiveness and to be given one more chance? Well, its not about that at all. Its about a borrower trying to convince their lender to modify their loan, only to be shunned like yesterdays news. Trying to get your lender to take you back can be awful similar to trying to get back with your ex. And we know how that usually ends, don't we?.

I've have been doing loss mitigation (loan mods) for some time now, and i am beginning to hear the same story over and over from borrowers who were declined for a loan modification by their lender. That's when it occurred to me that trying to modify seemed a lot like trying to mend a bad relationship, especially when only one of you wants to get back together. C'mon, you know we've all been there! I think it could kinda go like this:

You: "Remember the good times? I was making plenty of money and never missed a payment? I even paid extra!"

Your Lender: "Yeah, but you lost your job and now you have stopped paying all your bills. I cant trust you anymore!"

You: "You're the only one i want to be with!"

Your Lender: "Your just saying that cause no one else wants you!"

You: "But I was faithful. I paid you on time every month!"

Your lender: "But what about all those inquiries with other lenders? You were thinking about leaving, weren't you?!

You: "I promise, if you take me back, i will never be late again!"

Your Lender: "I found some one else, you should too. Plus, i got tarp money, i don't need you anymore!"

I think you get the point. For a lot of people, the lender has just moved on, outgrown you, and is ready to start anew. They just don't care about you anymore (they never did). Its all about the benjamins now. Perhaps it would be best if you moved on too. Besides, there's plenty of fish in the sea, right?

Posted by Joseph P. Mazzei at www.mymortgagebroker.blogspot.com

You can also visit me on www.activerain.com

Will The Real criminals Please Stand UP!

Charges filed against Beazer; settlement reached

By HARRY R. WEBER Associated Press

July 2, 2009, 12:05AM

ATLANTA — Federal prosecutors in North Carolina filed criminal fraud conspiracy charges against Beazer Homes USA on Wednesday, but they agreed to dismiss the case if the company complies with an agreement accepting responsibility for certain wrongdoing and pays millions to victims.

In the deferred prosecution agreement, the company accepted responsibility for fraudulent mortgage originations and accounting practices and agreed to pay $10  million immediately toward restitution to victims. Beazer also agreed to pay up to $50 million as the company, which has been battered by the housing downturn, recovers financially, according to prosecutors and court records.

The deferred prosecution agreement is in effect for five years. A spokeswoman for prosecutors, Suellen Pierce, said that the charges against the company will be dismissed if it complies with the agreement.

Beazer said Wednesday that it also reached a settlement agreement with the Department of Housing and Urban Development and the civil division of the Department of Justice.

The company also said several of its subsidiaries have entered into a settlement agreement with the North Carolina Real Estate Commission.

Under the terms of the settlement agreement with HUD and the civil division of the Department of Justice, the company said it will make an immediate payment of $4  million to HUD to resolve civil and administrative investigations.

In addition, on the first anniversary of the agreement, the company will make a $1  million payment to HUD.

“We deeply regret these matters and have used what we have learned to strengthen our control and compliance culture and reinforce our absolute commitment to act according to the highest standards of ethical conduct throughout our organization,” Ian McCarthy, Beazer’s president and chief executive officer, said in a statement Wednesday.

In February 2008, Beazer left the mortgage business, and in May 2008 it completed the restatement of certain prior period financial statements and implemented changes in its internal controls over financial reporting.

The company said Wednesday’s settlements will allow it to close “an unfortunate chapter in its history.”

The Atlanta-based home builder has been under scrutiny for certain business and financial practices.

Earlier Wednesday, the Securities and Exchange Commission said it had filed civil charges against the former chief accounting officer at Beazer Homes, accusing Michael Rand of committing fraud and misleading company auditors.

ATTACK OF THE PHANTOM GUIDELINE!

That's right people, its time for another episode of the "Attack of the Phantom Guideline"! What's that you say, you're not familiar with that show? Me neither, but apparently it comes on whenever i am trying to close a cream puff of a loan. You know, it's the show where lenders make up underwriting guidelines that no one (me) has ever seen or heard of before, and then have no way of backing them up.

This week's episode: "The 20% Square footage guideline."

Our show begins with our mild mannered mortgage broker, Moe Jazzei, who we find has just received his conditional loan approval from his preferred lender, Nuntrust Mortgage, who has taken eight days to underwrite his loan. Eager to close his loan, Moe quickly reviews his approval. Loan to value: 46% -check. Credit score: 795-check. Loan term: 15 year - check. Interest rate: 4.375 - check.

Now, on to the underwriting conditions. Great Scott! There is only one. But what's this? OH NO!! It's the PHANTOM GUIDELINE!!! The underwriter is requesting two new comparable sales due to square footage being off by more than 20%!!! That's right, unbeknown to our intrepid mortgage broker, apparently the square footage of the comparable can not be 20% greater or less than that of the subject property!! To make matters worse, she is quoting guideline!!

This can't be, Moe says to himself. I have never heard of this. They must be mistaken. Trying to keep his composure, Moe decides to contact his appraiser, as he realizes even though he is a very knowledgeable broker, perhaps this is a section of the Fannie Mae underwriting guide he just plain missed. But much to his dismay, his appraiser of twenty years experience is also puzzled. "Never heard of that one", he quips.

Getting no satisfaction from his appraiser, Moe decides to contact the underwriter. After several phone calls and messages (shocker) to the lender, Moe finally reached the underwriter.

He asks, "Is this a Fannie Mae guideline or a Nuntrust guideline?" "Fannie Mae", she says. Moe quickly responds, " I cant find it in the guide, do you have a copy?" " No, I don't", she quickly replies." "How am i supposed to get it then?" "Check with Fannie Mae." " I did, and i could not find it." " Well, if you don't have it, and Fannie Mae doesn't have it, how am i supposed to know it exists?" "I will have to get back to you on that one".

Will the underwriter be able to obtain the Phantom Guideline in writing? Will our broker be able to get this loan closed before his locks expires? Tune in next week kids for the exciting conclusion of " Attack of the Phantom Guideline!"

Posted by Joseph P. Mazzei at www.mymortgagebroker.blogspot.com

Refi Plus - The New Refinance Loan

Here are some of the finer points of the new refinance program being offered to lenders by Fannie Mae, and hopefully offered by lenders to brokers. That information is still forthcoming.

Maximum LTV Ratio

The maximum LTV ratio for DU Refi Plus and Refi Plus is 105 percent. There is no maximum CLTV or HCLTV; however, new subordinate financing is not permitted in conjunction with a DU Refi Plus or Refi Plus transaction.

MI Requirements (private mortgage insurance)

For new refinance transactions with an LTV ratio that exceeds 80 percent, MI may or may not be required depending on the current MI coverage on the existing loan. New refinance transactions with an LTV ratio less than 80 percent do not require mortgage insurance.

Eligible Borrowers

The borrower on the existing mortgage must be identical to the borrower(s) on the new mortgage. Borrower(s) may be added to the new loan, providing the existing borrower(s) is retained.

Ineligible Existing Mortgage Loans

Reverse, Second, and Government mortgage loans.

Loan Purpose

Limited cash-out refinances only, however, existing purchase money subordinate financing may not be satisfied with the proceeds of the Refi Plus mortgage loan.

All existing subordinate financing must be subordinated to maintain first lien priority of the new Refi Plus mortgage loan.

Credit History

No minimum credit score, but the borrower must meet the requirements for a Fannie Mae loan; and credit score will still be a factor in determining the interest rate.

Hope For Homeowners - Hopeless for brokers?

I think a lot of us brokers were looking forward to the H4H loan last year as a possible life line to help us stay in business. Oh yeah, and there's that helping the borrower thing too. Well, i think on both accounts, this program is a bust. This program was seriously flawed from the beginning, and it seems after some minor tweaking by the powers that be, it is still just as undesirable.

I know that I thought this could be a way to keep afloat in this horrific market all the while helping borrowers keep their homes. I am in the Tampa Bay area, what i call ground zero for declining values (i realize there are other areas that are probably worse, but i live here). With rates still being relatively high last year, this seemed like a viable way to keep doing business in spite of the lack of value, credit, and income.

Well, as most of you know, no wholesale lender has made this program available to brokers, and I don't think they are going to. Here is a quote right from FHA's website in regard to how a borrower is to obtain this loan:"It is envisioned that the primary way homeowners will initially participate in this program is through the servicing lender on their existing mortgage". I can't help but think this was the intention right from the word go, a subtle way of saying" brokers beware, your days are numbered". We brokers have targets on are backs, and scarlet letters on our chests. All i can say at this point is fellow brokers beware, cause the winds of change are a blowin'. I just hope they don't blow us out of the industry!

Posted by Joseph P. Mazzei at www.mymortgagebroker.blogspot.com