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11/29/2021

Loans After Forbearance

 



Can I borrow a new mortgage after a forbearance?

Sometimes, with conditions and perhaps pricing increases.

 


I was told it wouldn’t show…

 

It shows. Tell your new lender upfront and get the rules. It appears as deferred on your credit report and lenders require current mortgage statement and/or mortgage history. As soon as you authorize a knowledgeable loan officer to pull your mortgage credit report it appears.

 

Most of these programs were paid by the US government, servicers, and sometimes the lender if the loan went into forbearance before it was sold to GSE’s.

There is and was a cold hard cash cost of the forbearance – it shows.

Very few to no lenders offered mortgage balance reduction and now about one percent offer any mortgage balance relief in the upcoming modification offers after the forbearance plans. The big banks say they have statistics that show it didn’t work in the last downturn

 

But, but, I didn’t agree to forbearance…

 

Then you need to show you made the same regular monthly payments that show on your promissory note.

 

There are many different forbearance programs (reinstatement, deferral, flex...). You need to have a copy of the agreement in place. Many borrowers are telling me they didn’t sign anything but when we get the copy from the servicer or lender, it’s signed. Some lenders accepted digital signatures.

Some programs offered half payments, some added the payments in additional years, some offered temporary late payments with make up additional payments after the temporary period.

Some lenders didn’t require the borrower to write a hardship letter, but they recorded your phone call as the reason for needing the assistance.

 

In general, you need at minimum three normal monthly payments showing you are back on your feet, some programs you need six actual monthly which cannot be collected in a lump sum, you have to wait the months after the permanent plan is in place. OR if you are still on a trial plan, you request to go permanent and make the scheduled next three or six payments as agreed.

What if I didn’t follow the plan?

Some lenders may offer a permanent modification by offering forty year term or they may suggest a short sale is your only option.



By mortgage product type here are how the “rules” differ:

FHA

COVID-19 Forbearance or HECM (HECM also being reverse mortgages) Extension period for borrowers who may be newly affected by the pandemic: FHA is provided up to six months of COVID-19 Forbearance for borrowers requesting an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between October 1, 2021, and the end of the COVID-19 National Emergency, and an additional six months if the COVID-19 Forbearance or HECM Extension is exhausted and expires before the end of the COVID-19 National Emergency.

An additional COVID-19 Forbearance or HECM Extension period for borrowers recently seeking assistance in late 2021. FHA offers up to six months of additional forbearance for borrowers who requested or will request an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between July 1, 2021, and September 30, 2021, allowing these borrowers up to a maximum of 12 months of COVID-19 Forbearance or HECM Extension.

 

 

1.     To borrow a new or to refinance of an FHA loan:  a borrower who was allowed mortgage payment forbearance is eligible for a new FHA insured mortgage when one of the following conditions apply:
 

2.   The borrower continued to make regularly scheduled payments, and the mortgage Forbearance Plan has terminated.

3.    In cases of a cash out refinance loan, “the borrower has completed the Forbearance Plan and made at least 12 consecutive monthly payments” following the completion of the loan forbearance agreement.

4.   For purchases and No Cash-Out refinances, the borrower has “completed the Forbearance Plan and made at least three consecutive, on time payments after the plan ended.

5.    In cases of a new credit-qualifying Streamline Refinance, “the borrower has completed the Forbearance Plan and made less than three consecutive monthly payments post forbearance."

6.   For all Streamline Refinance transactions, “the borrower has made at least six payments on the FHA-insured mortgage being refinanced” in cases where the FHA insured Mortgage has been modified after forbearance, the Borrower must have made at least six payments under the Modification.

Federal Housing Administration Mortgages FHA does not require lump sum repayment at the end of the forbearance, but having it tacked on at the end you have to meet the rules just like for a short sale.

FHA has developed the COVID-19 Standalone Partial Claim to assist with repayment.

If you were current or less than 30 days delinquent as of March 1, 2020, you may be entitled to this option. A partial claim is a zero interest, no fee, junior lien on your property that will become payable when you sell your home, pay off your mortgage or your mortgage otherwise terminates. If you do not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help you repay the missed payments over time. For more information on Federal Housing Administration Mortgages: email your knowledgeable lender, call 1-800-CALL-FHA (1-800-225-5342), or visit www.hud.gov

 

VA

The VA loan has proved to be the most flexible in times of need. Veterans Affairs Mortgages Servicers of VA loans cannot require borrowers to make a lump sum payment immediately after a borrower exits a CARES Act forbearance. VA has a suite of loss mitigation options that can assist Veteran borrowers who must repay amounts that were subject to a forbearance. In addition, VA is continuing to evaluate other options to further assist borrowers affected by the novel coronavirus (COVID-19) national emergency. There are also other VA benefits to help a veteran make the payment, https://www.benefits.va.gov/homeloans/index.asp,

 

 



USDA

Rural Housing Service Guaranteed Loan Mortgages RHS does not require a lump sum payment at the end of the forbearance. Lenders work with the borrowers to determine if they can resume making regular payments and, if so, either offer an affordable repayment plan or term extension to defer any missed payments to the end of the loan. USDA lenders hope to review all available loss mitigation options outlined in Handbook-1-3555.  It will be difficult to refinance until you are back on your feet with 12 regular payments. Rural Housing Guaranteed Loan Mortgages, email sfhglpservicing@usda.gov. For all other general inquiries on policy, email SFHGLD.Program@usda.gov or  www.rd.usda.gov/programs-services/single-family-housing-g

 

FANNIE and FREDDIE conventional loans

Recent decision in October 2021 was to allow anyone with three months on time payments AFTER the plan ended can refinance or get a new purchase loan. IF you are still in the middle of a plan, you need to cancel and get on regular payments right away if you want a new mortgage. Borrowers can do a lookup online to determine which GSE has their loan. https://www.knowyouroptions.com/loanlookup

 




What if the existing mortgage is not a government-backed home loan ?

Jumbo- probably not going to be able to find jumbo lender who will offer a new jumbo loan until six months of on time regular payments have passed. Case by case, and is always with Jumbo everything is double checked.

Non QM

 There are very expensive pricing adds for forbearance in past 12 months- some as high as eight points

 

In conclusion, the first step is to find out what type of agreement you have in place. Your servicer should be able to email it to you in five working days or sooner. Provide this piece of information to your new lender to determine when the temporary period ended and how many regular payments you made on time. 

I’m here to sort through the papers and guide you, 

it’s free, let’s chat  (949) 784-9699 C G

NMLS #324982   caroline.gerardo@swmc.com

https://carolineg.swmcretail.com/

Sun West Mortgage 3277 

Equal Opportunity Lender



11/12/2021

VA Mortgage

veteran home loans


VA home loans are a fabulous benefit for our veterans. 

Let's talk about 100% financing for qualified active or retired veterans

No loan limits

FICO as low as 500



Service members, veterans and eligible

spouses who survived can become home owners.

The Veterans Administration provides the guarantee benefit that avoids mortgage insurance and protects the vet. You can buy, refinance, rehab, or make adaptations to an owner occupied house. 

The interest rates are low and competitive.

You must qualify for the home loan with a forty one percent back end ratio. 

(949) 784-9699 

Veterans can reuse the benefit unlimited number of times. The benefits also can be split over an existing and new purchase. We need your DD214 to lookup the benefit amounts.

New update the VA loan now includes National Guard members with ninety days of active service including at least 30 consecutive days under Title 32, Sections 316, 502, 503, 504 or 505.


An Interest Rate Reduction Refinance Loan (IRRRL)

The IRRRL is a mortgage refinance of "VA to VA" loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The refinance offers to lower the interest and reduce the monthly payment on the existing VA guaranteed loan. It is very easy to help veterans save money with this tool.

This Veterans Day and weekend let's celebrate those who worked for our freedom!



11/08/2021

Colorado Mortgage

 










Colorado Mortgage Home Loan Answers

Which of the following answers is NOT a responsibility of DORA?

 

Educational programs

Follow up of complaints about mortgage loan originators

Programs related to real estate professionals

Maintain an advocacy team that mediates discrepancies between consumers and mortgage companies

Some of the responsibilities covered by DORA are: - Programs related to real estate professionals - Educational programs - Licensing and Registration of mortgage loan originators and brokers - Follow up of complaints

Question 2

The board is to maintain a communication system such as a hotline or website. What is the purpose of that communication system?

 

to ask the board for advise regarding their mortgage loan

to assist consumers to find missing information and documentation required to process their mortgage loan application

to track the progress of their mortgage loan application to closing

to provide an easy way for consumers to make complaints about a mortgage loan originatorYou correctly checked this.

The board shall maintain a system, which may include, without limitation, a hotline or web site, that gives consumers a reasonably easy method for making complaints about a mortgage loan originator.

 

Question 3

Which of the following is NOT an action that may be conducted by the board?

 

pull licensees' credit reportsYou correctly checked this.

take affirmations of witnesses

request any information relevant to an investigation

administer oaths

The board or an administrative law judge may administer oaths, take affirmations of witnesses, and issue subpoenas to compel the attendance of witnesses and the production of all relevant papers, books, records, documentary evidence, and materials in any hearing or investigation conducted by the board or an administrative law judge. The board may request any information relevant to the investigation, including, but not limited to, independent credit reports obtained from a consumer reporting agency described in the federal "Fair Credit Reporting Act", 15 U.S.C. sec. 1681a (p).

 

Question 4

Who/what has authority to remove a member from the board and what would be the reason?

 

DORA has the authority to remove a member for misconduct, neglect of duty or incompetence.

The Board of Realtors has the authority to remove a member for misconduct, neglect of duty or incompetence.

The President of the Board has the authority to remove a member for misconduct, neglect of duty or incompetence.

The governor has the authority to remove a member for misconduct, neglect of duty or incompetence.  You correctly checked this.

The governor shall have the authority to remove any member for misconduct, neglect of duty, or incompetence.

 

Question 5

How many members make up the Board of Mortgage Loan Originators?

 

10

You correctly checked this.

7

8

There is hereby created in the division a board of mortgage loan originators, consisting of five members appointed by the governor with the consent of the senate.

Score: 100%

. Colorado Department of Regulatory Agencies

Home Mortgage Answers

 


11/05/2021

Non QM Mortgages


Non QM Mortgages are tools we have for self employed
borrowers to buy, refinance, or invest in real estate.

Let's chat about what we can help you with 

Bank statement loans

Debt Service Loans DCSR

Super Jumbo Loans

Interest Only

Many options to help you

Jumbo Full Doc 
 
Bank Statement or 1099  24 months, 12 months 1 month

Asset Optimizer 

Bank Statement or 1099 – High Balance (CA Only) 

Super Jumbo National 

Investor Debt Service Coverage 

Investor Mixed Use 

Investor No Ratio 

Non Warrantable Condominiums

Condos with pending lawsuits

Across the United States (but not Georgia and Massachusetts today)

Let's talk!

(949) 784-9699 7AM - 7 PM Pacific 

C G Caroline Gerardo Barbeau

NMLS 324982

Sun West Mortgage Corporation 
NMLS 3277