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
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