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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.
My Eagle Home Mortgage Website
Books by C G