PIN IT

12/17/2015

Take Pie When Passed


    Take Pie When Pie is Passed

    and a chart of the US 10 Year Treasury Yield 
    (lower since the announcement!). 
    One interesting factors affecting mortgage rates 
    that doesn’t get much attention is the fact that the 
    Fed is continuing to use profits and proceeds 
    from payoffs of its mortgage portfolio to buy 
    new mortgage backed securities (MBS).  
    With Billions of Fed reinvestments of these
    proceeds going back into MBS markets 
    every month, this unusual source of demand for 
    MBS from the Fed purchases continues 
    to help support lower mortgage rates.
    I am saying lock on Monday



Vegan Pie by my daughter below, mine above
Recipes:
Crust
  • ½ cup unbleached flour
  • 7 Tbs. whole-wheat pastry flour
  • ½ tsp. salt
  • ½ tsp. brown sugar
  • ½ tsp. baking powder
  • 3 Tbs. canola oil
  • 1 Tbs. soymilk plus ½ tsp. lemon juice ice cold
  • 2 Tbs cheap vodka
  • 3 to 4 Tbs. water super cold
Filling
  • 2 cups canned pumpkin 
  • 1 cup  rice milk
  • ¾ cup granulated sugar 
  • ¼ cup cornstarch
  • ½ Tbs. dark molasses or to taste
  • 1 1/2 tsp. vanilla extract
  • 1 tsp. ground cinnamon
  • ½ tsp. ground ginger
  • ¼ tsp. grated nutmeg
  • ¼ tsp. ground allspice
Prepare dough day before, barely knead and refrigerate tightly wrapped
The less you handle dough the flakier it is
Oven 425°F.
Filling:
mix ingredients until smooth and blended. 
Pour into prepared crust and smooth top. 
Bake 10 minutes.
Reduce oven temperature to 350°F; 
bake until filling is set, about 40 minutes. 

12/16/2015

Asset Documentation for Mortgage Loans

Asset Documentation Facts

ASSET DOCUMENTATION FAQ
NSF’s
1) In regards to non sufficient funds NSFs and pulling money from an attached savings account - FHA HOC has stated if it has an account set up, the borrowers account pulls the OD and there are no fee's it is not considered an NSF?
a. Yes, that would be correct. Not a derogatory situation.

UTMA accounts
2) What about an account that has ITF (In Trust for)
a. That could be an acceptable account to use for transactional funds. Depends on the account owners.

3) I have used a UTMA as long as the funds were transferred to the buyers own account. Is this acceptable?
a. Not for conventional loans.
b. FHA - case by case with review by underwriting manager.

4) Going back to UTMA accounts, if the funds are transferred into the borrower’s account, can they be used.
a. Conventional programs - no
b. Government programs - case by case with management direction.
401K loans /reserves

5) Guidelines have stated in the past, if the loan is secured by a 401k if we are not obtaining this account and using it we now have to hit them with the loan is that accurate?
a. For 2100 program, yes, that is correct if the remaining balance of the asset does not support the amount of the loan against it. This is an investor overlay, not a Fannie or Freddie requirement.

6) Regarding 401K loans, we only need to hit them with the loan payment (if they don't have at least the amount of the loan amount remaining as their balance) on Conventional & Jumbo only, correct?
a. This is a Chase requirement for both conforming and non-conforming loans and is therefore an overlay to our generic programs.

7) Regarding reserves that are needed for a 30 day account, does it have to be liquid or can an IRA, 401k and/or stock account be used?
a. Any asset that would qualify as reserves.

8) Regarding 401k's as reserves, I believe we used to use 401k's if they had hardship OR loan availability, can you please clarify/confirm that we are now only allowed to use a 401k if they have hardship?
a. You can use as reserves as long as the borrower can access a hardship withdrawal or a loan, using only the amount of the maximum loan available.

9) Can we get clarification of the 401K used as reserves? We have accepted reserves that were in the form of an available loan only and used just the available loan balance, not 60% because the available loan was less. Is that not acceptable?
a. Researching revealed that is acceptable.

10) Can we get some additional clarification on the terms of withdraw. We are collecting specific to the employer’s plan.
a. Yes, that is correct.
Gifts
11) Are both owners of the Donor account required to sign the gift letter?
a. One owner is sufficient.
12) Why is a cousin not considered an acceptable donor?
a. They are not on the FHA list of relatives. They may qualify under the category of a close friend with a clearly defined and documented interest in the Borrower.
13) Regarding gift funds on FHA, the email stated if the gift funds were already deposited into the borrower bank account we were to use LP only. Not on all gifts. Can you please clarify?
a. You are correct.

14) Gift deposited on FHA using DU, it never said we had to use LP only.

16) How do we verify or determine an amount on a "large deposit" into a donor's account when we don't know their income to come up with the large deposit amount?
a. Underwriter's discretion - any deposit prior to the gift giving date if similar to the gift amount or not identifiable as donor's income/payroll.
17) Run LP for FHA loans with gift funds OR with gift funds already deposited to borrowers account?
a. For gift funds already deposited to borrower's account, please use LP.
18) On a gift letter - if the donor money comes from a joint account are we requiring that both donor's sign the gift letter?
a. One donor is sufficient.
19) Can the gift donor be a cousin?
a. No, a cousin is not considered a relative under FHA guidelines. They would have to qualify as a close friend with a clearly defined and documented interest in the Borrower.

20) Can the gift donor be a future father in law?
a. He would not fall under family. The future part makes him ineligible. But for FHA would qualify as an acceptable gift donor if they can document he is a close friend with a clearly defined and documented interest in the borrower.
21) If the donor signs a statement stating no deposits have come from another person in the transaction do they still have to source the deposits?
a. Underwriter discretion depending on the size of the deposits, etc.
22) On a gift, we have to document the donor’s ability to gift even if it is a Conventional loan?
a. No, just on FHA loans.
23) So the donor’s ability is only on FHA.
a. Yes.
24) Home in 5 gift funds do we need to run LP?
a. Recommend running LP for all FHA loans with gift funds.
25) Donor's ability is also on USDA, correct?
a. Yes, and gift cannot be used for reserves.
Large Deposits
26) LARGE DEPOSITS: How does the UW determine what can or cannot be disallowed to remain under program 2100?
a. Funds not needed for cash to close or reserves but need a borrower explanation for the deposit(s) and why it cannot be documented.
27) If there is a large deposit from an unsecured line of credit and borrower has since depleted it are we ok as is to use the recent balance?
a. If the unacceptable funds have been spent outside of our transaction requirements, then you can consider the current balance in the asset account.

28) Is large deposit considered over $100, or $500, or $1000?
a. Please consult the large deposit policy in each program matrix.
Acceptable Receipt of Documentation
29) Are bank screen shots acceptable? i.e it's not a cell phone screen, and it's not a pdf printout but it does show the url via the screen shot, is that acceptable?
a. As long as it contains all the required information, ie: account holder name, account number, and the 30 day/60 day history and covers all transaction types.
30) What if it is a 'scanned' document sent via phone.
a. OK if has URL or all required information
31) TD bank doesn't show the URL on them when we do a print out just FYI.
a. Then must obtain full bank statements
32) What happens when the running totals are not available? Not all banks have the running balance on their Transaction History.
a. Must have ending balance and all required information including URL.
33) I learned with a borrower that if the URL is not printing on the statements they print at home, have them adjust the header/footer and it will usually pop up.

34) Can you clarify if the transaction history alone (as long as it contains all necessary info) is sufficient, or if we need to also have an actual bank statement with the transaction history?
a. You have to have a statement to use with the transaction history as usually the transaction history does not show the full account number/bank information/borrowers full name or joint names. If you are using the transaction history it needs to have all that information and I would get it stamped by the bank to show it as certified….
35) What types of images should Borrowers not download?
HTML doesn't flow, cell phone pictures are blurry, GIF doesn't save 

36) Are Cell Phone images acceptable?
a. If Government / Conventional (non bond) – we accept any clear & complete copy of the document.
b. If it is Bond / Jumbo – we cannot accept documents from a cell image at this time.
Destiny Input
37) For the bank address, use the local branch address or the bank address on the statement?
a. Either is fine.
38) Certain jumbo investors require asset addresses on the 1003.
a. Asset addresses are required for all loans.
39) Is this Max Cash to Close, a pre-existing condition or are we to free hand this?
a. It is a default condition that you can change
40) Are you allowed to use last 4 digits of acct numbers?
a. No, please use the full account number.
41) Regarding the address that we use on the bank statement - do we use what is on the statements or the physical address they bank at locally?
a. Either is fine.
Secured Borrowed Funds
42) Do we need to add the address of the 401k company under the secured borrowed funds?
a. Yes, so QC can re-verify.

43) Can we get clarification on the amount we are using to determine if we hit the borrower with a payment for secured borrowed funds? Specifically, do we take the remaining balance multiplied by 60% then subtract the loan amount?
a. Value or balance of the account must be sufficient to repay the loan obligation. When the account balance is less than the loan balance, transaction requires payment to be included in DTI calculation. (ch)(No reduction % required).
Miscellaneous
44) What's an mri?
a. Minimum Required Investment.
45) Are there any situations where we can use a VOD in place of a bank statement if the borrower is unable to provide?
a. Conventional agency programs. Check the product matrices for specific investor programs.
46) If stamped statement from the bank....does every page have to be stamped?
a. Yes please.
47) If an Ex paid a debt off for the Buyer and they are not on good terms with the Buyer any longer and will not provide the source of paying the debt off, what is the next option?
a. Debt payoff can only come from a gift from a relative. Ex-spouse is not a relative. Payoff would be considered a concession or contribution to our transaction by an unacceptable source and the amount would be deducted from acquisition before determining the "lendable" mortgage amount.
And some images by my son Carson since you read all this
mortgage information this far down as eye assets:










Keep working C G :)

Mortgage Credit Report

Mortgage details and things I'm seeing regarding credit:

Forgiveness of debt in a modification is treated the same as short sale.
Wait is four years for conventional loans and three for FHA


Mortgage Credit reports should be read and interpreted by an expert. The lady in the credit union that takes your papers to be processed for a loan can misinterpret or miss read. It is vital to view a mortgage credit report on day one  with regards to derogatory credit events and the proper calculation for seasoning.

·      Fannie Mae only – The foreclosure seasoning can be reduced from 7 years to 4 years if the property is surrendered in the Chapter 7 bankruptcy.  Make sure the property is listed on the Chapter 7 form Debtor’s Statement of Intention and marked as surrendered.  This reduced seasoning does not apply for foreclosures that
occurred prior to the filing of the bankruptcy in which only an unsecured deficiency balance is listed in the bankruptcy.


·         All loan types – A HELOC settled for less than full balance can occur even if there is no short sale or foreclosure.  Lien Holders can be approached with a request to reduce the balance, or the Lien Holder may initiate the settlement.  Determine the property address associated with the HELOC or 2nd mortgage. Even if the borrower still owns the property, sufficient seasoning will be required as the lender has taken a aloss.  This would be considered a pre-foreclosure situation requiring 4 year seasoing for Fannie or Freddie, 3 year seasoning for FHA or USDA, and 2 year seasoning for VA, from the date of the settlement/foregiveness.



11/27/2015

Grateful At Home








I hope you are enjoying the holiday weekend!

My son is home from college and I am
blessed this year.

Grateful for being able to help you
with closing your mortgage loan.

I'm available over the weekend for
questions, just whistle.

Let's get you into your happy home.

C G
(949) 784-9600

11/13/2015

95% Jumbo Mortgage


Up till now the required  minimum down payment on high balance loans was 10%. Starting next month we will only require 5% down on these types mortgages. Read below for all revisions.

As a direct lender with all operations in-house we can close these type loans in 30 days.

We have what it takes!


This summary is great news. This is not a commitment to lend or give you a 95% Jumbo conventional high balance loan for California counties that the high balance 
loan limit is $625,500.00
Other counties such as Riverside the loan amount is lower. 
See below for dollar amounts. 
These dollar amounts do change annually.
 All criteria are subject to the formal terms and conditions 
of the Fannie Mae Selling Guide. 

High-Balance Loans: Policy Update Summary
Effective with the implementation of Desktop Underwriter® (DU®) 

Fannie Mae will update the eligibility requirements for high-balance mortgage loans as follows 
for details and the high-balance product matrix more information will be released
 Removed: Overlays requiring a 5% minimum borrower contribution from borrower’s own funds; an appraisal field review for loans of more than $625,000 and a loan to value or combined loan to value ( LTV CLTV) above 80%; and the appraisal to have two comparable sales from outside the subject project when loan is secured by a condominium unit.
 Aligned: Maximum LTV/CLTV/HCLTV ratios for borrowers with 5−10 financed properties aligned with the requirements for loans subject to the general loan limits.
 Retained: An appraisal field review is required for properties valued at $1 million or more with an LTV/CLTV/HCLTV above 75%; and all borrowers must have traditional credit to qualify.
 New: High-balance loans must be underwritten through DU.
 Updated: Eligibility ratios as shown in the table.
Property Type
Maximum Loan-to-Value (LTV) Ratio for High-Balance Loans
NEW Effective December 12, 2015
Before Update
Purchase Transaction
1-unit principal residence
FRM: 95%; ARM: 90%
FRM: 90%; ARM: 75%
2-unit principal residence
FRM: 85%; ARM: 75%
FRM: 75%; ARM: 65%
3- to 4-unit principal residence
FRM: 75%; ARM: 65%
Second Home
FRM: 90%; ARM: 80%
FRM/ARM: 65%
1-unit investment
FRM: 85%; ARM: 75%
2- to 4-unit investment
FRM: 75%; ARM: 65%
Limited Cash-Out Refinance Transaction
1-unit principal residence
FRM: 95%; ARM: 90%
FRM:90%; ARM: 75%
2-unit principal residence
FRM: 85%; ARM: 75%
FRM: 75%; ARM: 65%
3-4-unit principal residence
FRM: 75%; ARM: 65%
Second Home
FRM: 90%; ARM: 80%
FRM/ARM: 65%
1-unit investment
FRM: 75%; ARM: 65%
2-4-unit investment
Cash-Out Refinance Transaction
1-unit principal residence
FRM: 80%; ARM: 75%
FRM/ARM: 60%
2- to 4-unit principal residence
FRM: 75%; ARM: 65%
Not available
Second Home
1-unit investment
2- to 4-unit investment
FRM: 70%; ARM: 60%

Counties that increased loan limit in 2015 

Monterey County CA SALINAS, CA  $                 483,000  $            502,550  $      19,550
Napa County CA NAPA, CA  $                 592,250  $            615,250  $      23,000
San Diego County CA SAN DIEGO-CARLSBAD, CA  $                 546,250  $            562,350  $      16,100


County Name
One-Unit Limit
Two-Unit Limit
Three-Unit Limit
Four-Unit Limit


ALAMEDA
$729,750
$934,200
$1,129,250
$1,403,400

ALPINE
$547,500
$700,900
$847,200
$1,052,900

AMADOR
$443,750
$568,050
$686,650
$853,350

BUTTE
$417,000
$533,850
$645,300
$801,950

CALAVERAS
$462,500
$592,050
$715,700
$889,450

COLUSA
$417,000
$533,850
$645,300
$801,950

CONTRA COSTA
$729,750
$934,200
$1,129,250
$1,403,400

DEL NORTE
$417,000
$533,850
$645,300
$801,950

EL DORADO
$580,000
$742,500
$897,500
$1,115,400

FRESNO
$417,000
$533,850
$645,300
$801,950

GLENN
$417,000
$533,850
$645,300
$801,950

HUMBOLDT
$417,000
$533,850
$645,300
$801,950

IMPERIAL
$417,000
$533,850
$645,300
$801,950

INYO
$437,500
$560,050
$677,000
$841,350

KERN
$417,000
$533,850
$645,300
$801,950

KINGS
$417,000
$533,850
$645,300
$801,950

LAKE
$417,000
$533,850
$645,300
$801,950

LASSEN
$417,000
$533,850
$645,300
$801,950

LOS ANGELES
$729,750
$934,200
$1,129,250
$1,403,400

MADERA
$425,000
$544,050
$657,650
$817,300

MARIN
$729,750
$934,200
$1,129,250
$1,403,400

MARIPOSA
$417,000
$533,850
$645,300
$801,950

MENDOCINO
$512,500
$656,100
$793,050
$985,600

MERCED
$472,500
$604,900
$731,150
$908,650

MODOC
$417,000
$533,850
$645,300
$801,950

MONO
$529,000
$677,200
$818,600
$1,017,300

MONTEREY
$729,750
$934,200
$1,129,250
$1,403,400

NAPA
$729,750
$934,200
$1,129,250
$1,403,400

NEVADA
$562,500
$720,100
$870,450
$1,081,750

ORANGE
$729,750
$934,200
$1,129,250
$1,403,400

PLACER
$580,000
$742,500
$897,500
$1,115,400

PLUMAS
$417,000
$533,850
$645,300
$801,950

RIVERSIDE
$500,000
$640,100
$773,700
$961,550

SACRAMENTO
$580,000
$742,500
$897,500
$1,115,400

SAN BENITO
$729,750
$934,200
$1,129,250
$1,403,400

SAN BERNARDINO
$500,000
$640,100
$773,700
$961,550

SAN DIEGO
$697,500
$892,950
$1,079,350
$1,341,350

SAN FRANCISCO
$729,750
$934,200
$1,129,250
$1,403,400

SAN JOAQUIN
$488,750
$625,700
$756,300
$939,900

SAN LUIS OBISPO
$687,500
$880,100
$1,063,850
$1,322,150

SAN MATEO
$729,750
$934,200
$1,129,250
$1,403,400

SANTA BARBARA
$729,750
$934,200
$1,129,250
$1,403,400

SANTA CLARA
$729,750
$934,200
$1,129,250
$1,403,400

SANTA CRUZ
$729,750
$934,200
$1,129,250
$1,403,400

SHASTA
$423,750
$542,450
$655,700
$814,900

SIERRA
$417,000
$533,850
$645,300
$801,950

SISKIYOU
$417,000
$533,850
$645,300
$801,950

SOLANO
$557,500
$713,700
$862,700
$1,072,150

SONOMA
$662,500
$848,100
$1,025,200
$1,274,050

STANISLAUS
$423,750
$542,450
$655,700
$814,900

SUTTER
$425,000
$544,050
$657,650
$817,300

TEHAMA
$417,000
$533,850
$645,300
$801,950

TRINITY
$417,000
$533,850
$645,300
$801,950

TULARE
$417,000
$533,850
$645,300
$801,950

TUOLUMNE
$437,500
$560,050
$677,000
$841,350

VENTURA
$729,750
$934,200
$1,129,250
$1,403,400

YOLO
$580,000
$742,500
$897,500
$1,115,400

YUBA
$425,000
$544,050
$657,650
$817,300 

11/11/2015

Chase Mortgage Cough



This morning I spoke at Laguna Board of Realtors Preview Meeting. A question was raised about if lenders and Underwriters are being harder on files. I answered that it is not Underwriters is is the policy of the given secondary source. Fannie Mae and Freddie Mac are maintaining cautious and careful rules. A few minor conditions have been loosened as we get farther away from the crash but I said one particular broker banker correspondant source has become more picky and more bitter coffee to deal with and that is J P Morgan Chase.

Chase is of the new habit of pricing very cheap and turning down loans after they have been shipped.
Sometimes the reasons are so small minded it appears they are cherry picking after the fact. Today Chase came out with a memo perhaps to make excuses for this recent dump on wholesale providers.
Here's the list of reasons Chase says they are giving back funded loans (these are all Jumbo not conforming not high balance mortgage types). This list you will note does not include some of the cough cough reasons they really dumped back loans to banker / brokers


Note: Information is valid as of 9/14/15 and is subject to change.

Overview Based on loans recently reviewed by our Non-Agency Underwriters, we have developed
these best practices which can help manage your pipeline and drive down suspense rates
when submitting Non-Agency loans to Chase.
Best Practices for Collateral
Initial Collateral Review: Attached your 1st Gen/xml file to Appraisal Data/1st Gen upload in
ChaseLoanManager.
Revised appraisals associated with collateral conditions must be uploaded in ChaseLoanManager > Image
Delivery as:
 UW Conditions for non-delegated
 Funding Conditions for delegated
Non-Delegated Delegated
 Include comparison of PUD common elements
and amenities with competing developments
 Identify and describe common elements
appropriately
 Ensure Appraiser provides appropriate comments
reflecting reasoning for adjustments
 Ensure Appraiser reconciles indicated values of
the comparable sales and explains weighting and
rational to derive the final value conclusion
 Provide a complete 1004D with photos
 Document reasoning when there is a meaningful
discrepancy between public record data and
Appraiser reported information for subject or
comps
 Include all required comp photos
 Use of MLS photos is discouraged unless a
satisfactory explanation is provided
 Appraiser must comment on using any
comparable sale that’s more than 6 months old
 Do not provide comparable sales that are dissimilar
to subject property without detailed
discussion
 Provide a complete 1004D with photos
 Include comparison of PUD common elements
and amenities with competing developments
 Identify and describe common elements
appropriately
 Ensure Appraiser reconciles indicated values of
the comparable sales and explains weighting and
rational to derive the final value conclusion
 Include all Appraisal Data
 Ensure Appraiser provides appropriate comments
reflecting reasoning for adjustments
 Appraiser to comment on using any comparable
sale that’s more than 6 months old
 Document reasoning when there is a meaningful
discrepancy between public record data and
Appraiser reported information
 New PUD/Project: A comparable sale must come
from within the subject’s subdivision or condo
project
Top Underwriting Conditions
When reviewing a loan, Chase Underwriters encounter missing or deficiencies in documentation related to:
 Profit and Loss Statement and Balance
Sheet is missing
 Source of Funds for Large Deposits
 12-month Housing History
 HELOC Closures
 Credit Inquiry LOE
 K-1s / Business Returns
 VOE with Variable Income (bonus,
commission, OT, etc.)
 Current, Legally Enforceable Lease
Agreements
 Bank Statement Debts Not Addressed
 Payroll Loans/Deductions not included in
DTI and evidence fully secured is absent
CORRESPONDENT LENDING
Non-Agency Loans
Note: Information is valid as of 9/14/15 and is subject to change.
Non-Agency Best Practices - Final 100515.docx Page 2 of 2
Best Practices
Top Denial Reasons
The top reasons for a loan being denied by Chase are as follows:
HELOCS (Subject and
REO)
If a HELOC can still be drawn upon (open end), which includes HELOCs that
are frozen (since the freeze could be lifted by the creditor), the payment used in
the DTI calculation is the higher of:
 Payment shown on credit report (or obtained from documentation from the
creditor), or
 1% of the full line amount
Self Employed
Debts Payable < 1 Year
Mortgages, Notes and Bonds payable in less than one year must be deducted
from the self-employed income by the amount of the debt, regardless if the
business has sufficient assets to cover the debt or the debt has a history of
rolling over.
DTI  Bonus income < 2 years
 Ineligible add backs to business income (NOL, amortization, home office)
 Declining income reflected on YTD P&Ls
 Personal debt not included in liabilities due to evidence other party pays or <
10 months remain
 2106 expenses not deducted from income
Self Employed < 2
Years
Self-employed borrowers should exhibit the following stability standards:
 Minimum of two years operating the same business
 Minimum of two years operating each additional business used to qualify
 Potential for maintaining continuous operation of business and income
 Documented ability to meet current and future obligations when income is
fluctuating
 Independent verification, prior to closing, that the borrower is self-employed
 Provide a 24 month history of self-employment, regardless of work history
 Minimum of 12 months self-employment, reflected on tax returns
o If tax returns do not reflect the complete 24 month period (due to
timing), then P&L and balance sheet must be provided covering the
remaining period
Student Loan Payments  All student loans must be included in the debt ratio regardless of deferment
status or number of payments remaining
 If payment amount can be verified by credit report or by student loan lender
documentation supplied by the borrower, then use the greater of 1% of the
outstanding balance or actual payment
 If payment amount cannot be documented, then use payment based on 1%
of the outstanding balance

11/09/2015

1 Year After Bankruptcy Jumbo Loan

Seeing Our Customers Home Again

The Light is what guides you Home.
The warmth is what keeps you there.

Our new Home Again program is a great option
 to help borrowers who may have a
few bumps and bruises on their credit.

 


Highlights
•Fixed and ARM (Adjustable Rate Mortgage) options
•No prepayment penalty
•Gifts allowed from family members or
relative only toward down payment or closing
 (Borrowers must have 5% of purchase price.
Program available for purchase only.)
•Gift of equity from seller
•85% LTV (first time home buyers eligible)
•12 month seasoning period required
 after major derogatory event
(e.g., bankruptcy, foreclosure, deed in lieu of foreclosure or short sale)
•Primary residence only
Call for Jumbo terms
Call today for additional information about this great new program.
We offer complimentary mortgage reviews and preapprovals!

C G Barbeau  Caroline Gerardo NMLS: 324982, CA #CA-DBO324982

Senior Loan Officer Eagle Home Mortgage
Office: 949-784-9699 Fax: 855-833-4303
Contact Me My Website http://eaglehomemortgage.com/carolinegerardo/


Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, Branch NMLS #849059, CA #813I609, NV #3244. Certain restrictions apply.
This is not a commitment to lend.
 Applicants must qualify.
Equal Housing Lender
This message was sent from Caroline Gerardo to as a result of an existing business relationship.
  It was sent from:
Eagle Home Mortgage, a Lennar Homes Company
100 Spectrum Center Drive Suite 500 Irvine CA 92618

11/04/2015

Sleep Easy in Your Home


We close loans that banks won't touch
Sleep easy
Here's the tips and tricks for today' s mortgage loans 


FANNIE’S AGENCY CONFORMING PROGRAM

v  There are no minimum number of trade lines required  with DU approval.
v  Ratios are per DU
v  You can pay off debt to qualify and do not need to close the account to exclude payment from debt to income ratio
v  One time thirty day mortgage late is allowed with letter of explanation from borrower
v  Fannie will accept a “Legal Separation Agreement” in lieu of a final Divorce Decree

v  Flips (less than 90 days) allowed if Field Review supports appraised value
v  When purchasing a investment property use the market rent from the 1007 for rental income; no other documentation is required
v  Seller carry back is allowed
v  A two year land lord history is not required but if the borrower does not have a history of receiving rental income they must have a current mortgage history.
v  Fannie no longer requires there to be 30% equity in the home when converting a primary residence to non owner occupied and using rental income towards qualifying



** Most major banking lenders will still have many overlays in place excluding borrowers from these loan programs. I can close home loans that Wells Fargo, Chase and other banks deny.
Banks turn down residential mortgages that  we close. 
I have an new deal from Bank of America due to not having 2 years landlord history!


Apply now !



11/03/2015

Thinking Out of the Box

Cardboard Box house

A bitter sweet story.
My sister and her family had a flood. They live in Orange County in a home that is worth a million dollars. Actually it was worse than a flood the tankless water heater continued to spray boiling water in her home through a faulty Home Depot made in China plumbing part. She was on vacation and we were watching her pets. Daughter went to the house and initially thought smoke was coming out of the seams of the windows, but it was steam...
Total loss of contents. It's been months rebuilding. They lost an antique bedroom set that I gave her. The set was gorgeous oak made in 1880 and destroyed like most of her house.
My brother in law is a fireman, well retired fire fighter, a real good guy. Sister who is a first grade teacher has been having melt downs because they are in the house with everything a mess. Here's what her hubby build for temporary to keep her organized-
Cardboard box dresser, cardboard box night stands, and yes even vanity.
I am sharing with you a spirit of overcoming adversity with humor and creativity.
Keep your eye on simple solutions and re-use what's at hand.
We pray the insurance company treats them fairly.

11/02/2015

Bad News For HERO and PACE Programs

HERO PACE PROGRAMS IMPORTANT INFORMATION Energy Efficient Improvements What they failed to tell you...


First and foremost, FNMA, FHLMC, nor FHA will not allow these programs to remain on the title policy.  Nor will they allow to subordinate. The subordination they provide does not clear title. These programs cloud title and act like property tax bills in first position

Property owners may not be aware they can't refinance or sell with this on title
Even for a refinance, borrower might not understand the contract with this program.

As an  example of how they appear on the preliminary title report:

Assessments and other matters for the Western Riverside Council of Governments as contained
in a document entitled "Payment of Contractual Assessment Required" and/or "Notice of
Assessment" (California Hero Program), recorded March 11, 2014 , as Document No.
2014000089985 of Official Records.


The HERO and PACE programs were a great thing to reduce energy costs but they stick the property owner with a big mess When the HERO program shows on the prelim it is recorded just as the County Tax Assessor as first in line. They are a cloud on the title.

HERO – “Home Energy Renovation Opportunity” Also known as PACE “Property Assessed Clean Energy”.

These are programs offered by localities to finance residential energy improvements with loans that are generally repaid through the homeowner’s real estate tax bill.

Since they are part of the property tax bill, they remain in first position.  I spoke to FNMA today about this program and HERO’s willingness to subordinate the loan.  FNMA said that their subordination agreement is a “limited” subordination in that they are promising not to foreclosure, but since it is included in the property taxes, they remain in first position and therefore FNMA will not purchase mortgages with the HERO, or PACE (as they call it).  The borrower will need to do a cash out refinance And pay off the HERO.

Fannie Mae and Freddie Mac will NOT allow subordination agreements, they must be paid off in full to have clean title FNMA and FHLMC guides. There is a provision for PACE loans taken out prior to 7/6/10.  If you run into one of these, I would contact Loan Support for guidance.  There have been several conversations with FHA as well and they will not accept.  They too would require a cash out refinance. And pay the debt off at closing the mortgage loan.
Those people who got these programs to insulate, add energy efficient windows or solar from "government" or "county" programs usually have no idea this is a problem.
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