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4/24/2020

Mortgage Forbearance

Meltdown by Caroline Gerardo  © 

Mortgage Forbearance At What Sum?


Covid19 onions?  © Caroline Gerardo

FHFA announced this week April 21, 2020 that mortgage servicers who collect payments and advance payment to investors should (but are not forced) offer four months forbearance to loans backs by Freddie Mac and Fannie Mae. The repayment period is still in a vague resolution. My suggestion is at all costs try and make the home loan payment. You won't be able to refinance or open a new mortgage until after you can show twelve months paid as agreed.  

If your loan is owned by Fannie Mae, you can contact your loan servicer or the enterprise’s Disaster Response Network for individual attention. Freddie Mac asks borrowers to contact their loan servicer directly for help. Calling your servicer may be a four hour wait time, best practice is to email them or contact them through online payment processing and follow up with a letter in writing mailed by the United States Post service. You need to include your loan number, perhaps even a copy of the bill, your best phone number, and some proof you are the real person who signed the promissory note. Each lender has their own policy and procedure to handle your request, none the same.

Ginnie Mae loans and FHA loans (those most likely to be at risk of foreclosure as they generally had lower FICO scores and less down payment, thus less equity in the home) also are eligible for four month forbearance plans. Please understand this money is not going to be erased or forgiven. Economists predict fifty percent of Ginnie Mae loans are going to end up in default. My suggestions are: sell now while value is still high, get a second job, get a family member roommate with a job, and work on plan B.

Most banks are not saying they will defer payments to the end of the loan. In order to get a modification with a government-related or MIP guaranteed mortgage agency moved “to the end” of the loan requires a new promissory note and second lien against the property in the amount of the missed payments, or an extension of the maturity date of the loan. The programs available are unique to each of these agencies and require a review of individual circumstances to determine which program will best resolve the homeowner’s hardship. This end of the loan add on requires the investor to review and approve the modification.
Some banks still own their own loans, which allows them the ability to solely determine how they address missed payments. However, they also service loans for the federal agencies described above and are limited to offering those agencies’ programs on those loans.

NONBANK servicers may not have to follow the Cares Act rule as a loan generated under the NON QM, investor and asset depletion verification has different clauses in the promissory note these are not backed by our United States government. If you have a mortgage which was opened in the past three years, the trustee and owner investor may have been a hedge fund or REIT.

In choosing to ask for forbearance BE TRUTHFUL. Expect that the servicer is going to check and verify your story in the following thirty and one hundred eighty days. This is not free money and kicking the problem towards the future may be more painful.

Ally Bank has suspended foreclosure and eviction proceedings through July 30 and offers forbearance plans of up to 120 days with no late fees — though interest will continue to accrue. Apply for help online to avoid long wait times, set up online.

Bank of America has a COVID-19 resource page that directs customers to the right support line to request help. If payments are current ask to delay your monthly payments and add the amount you delay to the end of your loan. No negative information is reported to credit bureaus. Bank of America has also paused foreclosure sales, evictions and repossessions until mid May. Call 1-800-669-6607 for more information.

Chase call 1-800-848-9380, or by log into their online account page and send a secure message. No guarantees offered but military officers can use hotline at 1-877-469-0110 to see what additional benefits might be available.

Citi serviced by Cenlar FSB. The bank does not specify what relief is being offered.
1-855-839-6253 to see if you’re eligible for assistance.
Fifth Third Bank is offering 180-day forbearance plans, interest will still accrue during forbearance, there won’t be any late fees. The bank has also suspended foreclosure activity for 60 days from March 15 contact 1-866-601-6391 or send a secure message through the bank’s online portal.

Flagstar Bank is offering automatic six-month forbearance plans for mortgage customers impacted by COVID-19. (Though take note that the bank doesn’t say whether interest will accrue during that time.) The bank is also waiving late fees for certain customers and has suspended foreclosures and evictions through May 31. request a forbearance with Flagstar online.
HSBC call the bank at 1-855-806-4657 to discuss your situation and eligibility requirements if they will offer anything

LoanDepot No specific relief is available call 1-877-420-4526

Mr Cooper Reviews all requests case by case  Pandemic Relief Plan Request here. 
PNC claims it’s considering waiving or refunding some mortgage fees right now for customers who are having trouble making payments. They recommend other programs that may be available for mortgage customers facing financial hardship right now, including postponing payments website set up to help you if you’re facing financial difficulty. It includes phone numbers to call and a hardship assistance application to fill out.
Quicken Loans offers forbearance up to three months for customers experiencing job loss, illness or lost work opportunities while caring for a family member as a result of the corona virus pandemic. At the end of the forbearance period, you’ll be able to pay with a lump sum, repayment plan or loan modification if eligible that finances the deferred amount — or you can request to extend the forbearance.

TD Bank is offering to defer payments and waive late fees for customers
call 1-800-742-2651 to see if you’re eligible.
Truist is offering forbearance plans of 90 days or more for mortgage customers of both its predecessor banks, BB&T and SunTrust
Legacy SunTrust customers should call 1-800-443-1032 and legacy BB&T customers should call 1-800-827-3722.
Specialized Loan Service login online and write a letter with your expenses and situation
U.S. Bank is offering forbearance plans of up to 180 days if you’re facing financial hardship due to the pandemic. call 1-800-365-7900.

Wells Fargo is offering to suspend mortgage payments for three months for customers hit by financial difficulties related to COVID-19. Once the suspension period is over, Wells Fargo will work with you to see if you need a longer suspension or loan modification, or if you can move the payments to the end of the loan. Sign into your online banking account and send a note through the secure message center and a bank representative will get back to you within five days.


4/21/2020

Protect Your Garage Against Break Ins


PREVENT GARAGE BREAK INS

Our economy is going into a different cycle. It’s time to secure your home. Let’s begin with your garage. Why you ask? Because you leave the door open, its easy to steal the remotes from the visor of your car or use many of the burglary tools on You tube to get in and steal your tools, golf clubs, bikes, and beer in the garage refrigerator. They will carry it all off, and maybe hang out inside for a day or two. Maybe your children will discover them in the act. Don't be a target to the lego bad guy just released above who will look far worse

How to prevent garage theft
Think about how a theft might enter the structure and secure the automatic door opener from:
1.  code grabbers
2. using a wire to pull the emergency release
3. hiding in or around the structure

Begin with the perimeter.

Add motion detector lights which can be purchased from your local hardware store. I prefer True Value as they will talk with you about the pieces you need, and the skill set you have or lack to accomplish adding a motion light to the exterior and perhaps interior of the garage. First you want this to be high enough to not be easy to unscrew the bulb, but also accessible for you to maintain from a ladder. Second don’t leave the ladder out for them to borrow. Many of these tips and tricks can be DIY and done in a day cheap and easy.

Trim back trees and bushes that allow hiding places for a human. I know you love that shrub by the door, but consider the height and depth of the bush- can a person hide behind it easily? Perhaps relocating the plant to another area and changing to something thorny that is airy?

Add a camera which can communicate with your cell phone.

Add a garage shield that reinforces the doors.
Change the door to have a single sided dead bolt.

What can you change to lock from inside if the garage is attached to the home or you are away on vacation?
There are many types of locks and bars to secure and reinforce the big overhead door as well as side doors. These can be inexpensive bolt locks, zip ties added to the overhead emergency release, unplug the power cord when away on vacation, and add a small interior light on a timer. 
I suggest you make friends with trusted neighbors and share keys, or have a secure nearby hidden
in a location to recover keys (not the doormat, not a flower pot, not the mailbox).

What habits leave you open to break in?

Having shiny things visible when the garage door is open or visible from a garage window. Hide your toolboxes under a tarp. Cover your golf clubs with an old blanket. It’s nice to have a pretty clean chrome garage interior but don’t allow bad guys to see what is available to steal.
Don’t leave the garage overhead open.
Don’t have garage remotes visible in and unlocked vehicle.
Can you add a peep hole between the house and garage to view before you exit?
Can you carry something that makes noise in your hand when you walk from the garage to your home?
Each house situation is unique and may take time to consider where you need to reinforce security to
Make the bad guys go pick on someone else.

Be safe. Protect your home.
Much love

C G Barbeau
NMLS 324982
(949) 784-9699

Mortgage Loans 

4/20/2020

Best Seeds and Free Exchanges

I know you are at home wishing you could stroll the aisles of your favorite
garden supply store. My local favorite is Plant Depot and they are open
until three o'clock, but call and make sure of the hours.

In late winter my mailbox fills with seed catalogs and I spend hours reading
them just as honored as the poetry books I ordered this year when so many
book tours and release parties have been cancelled. I only go to my post office
to pick up mail every other week, to avoid my elaborate mask, glasses, hat,
alcohol spray, avoidance of touching anything, and protocol.

I want to share one of my life's pleasures with you. It's picking out seeds 
to plant for the early spring. I'm Zone 9a - yes that's like some Zodiac
sign that people say on their Match.com profile, not. 



I have posted photos of picture packets which I quite love, but serious organic gardeners or farmers would frown at the watercolor illustrations 
and a small amount of joy inside the paper folder.

For as long as I recall I've been a trader on free seed co-ops and seed trade  companies. You may search local for some affiliated with Garden Groups 
on Facebook or your local Arboretum or Botanical Garden. 
Many have annual trades, swaps or sales, and will mail out seeds to those who request them. 
You may also receive some free seeds when you request a free catalog. 
My favorite seed trade sites are:



        Seed Savers Exchange:



      Set up and account and post what you have to trade or are hoping to find. They are in Iowa. in addition to flowers, vegetables they also have herbs



Houzz Seed Exchange   offers local seed exchanges, try searching for a seed library to find one near you. 
Here is a link to a list of seed libraries:  Seed Library Social Netwo






Seeds of Diversity (based in Canada): They have an annual Seed Exchange where members are able to obtain samples of over 1,500 varieties of seeds and plants offered by other members in exchange for return postage. They also offer "Seedy Saturdays" where members host demonstrations and different kinds of garden tips and tricks.


Seed Savers' Network (Australia): Similar to the American based Seed Saver Exchange, above.

GardenWeb 
Facebook group: Great American Seed Swap/Exchange/Trade

     North American Lily Society
    North American Rock Garden Society
You can order catalogs to be mailed to you for free from most growers. Many have lovely illustrations online and ordering is simple. Because of 2020 corona virus expect many to be short staffed, pretty much the owner is printing, bagging and mailing to you direct.

Here are some of my all time favorite companies:

Annies
request a free seed catalog 

Baker Creek The Finest with the BEST illustrations. I love this company. Super quality, tremendous descriptions and details about how to plant and what to expect.

www.rareseeds.com
Burpee
www.burpee.com
Fedco
A purist! They don’t make your grandmother’s picture packets but a poet writes the descriptions. They offer many cold hearty seeds.
https://www.fedcoseeds.com/trees/requests.htm

Johnny’s Seeds
www.johnnyseeds.com

Jung Seed
www.jungseed.com

Richters
Be prepared to spend hours here reading. Absolute cure for corona virus shut in depression, vicariously enjoy spring.
Experts on medicinal plants, advice for all types of gardeners, the finest of suppliers.
https://www.richters.com/show.cgi?page=requst2.html

Botanical interests
 free seed catalog 




Free Seed Catalog - Heirloom, Organic - Seed Savers Exchange

https://www.harrisseeds.com/collections/catalogs


John Fendley was nearly ruined by the Paradise Fire as many employees lived in Paradise, California.
I encourage you to order from this company which is a fabulous testament to America!

https://sustainableseedco.com/


gorgeous photos of flowers 
























and an early peony from my garden



4/14/2020

College 2020 Graduation Party Ideas

My son graduates college this June. We already know the UC system is not allowing
the traditional commencement, with cap and gown. My son was actually happy that
he doesn't have to "walk." High School graduation at Dana Hills was a long all day
affair where students arrived early in the morning to be searched and breath-a-lizer
tested for alcohol. I didn't know this at the time, I was the proud but oblivious Mom
helping my Mom with her walker get down on the lower field.

We had planned to take a trip together where I told him I would give him x amount
of money and he would book the flights and plan the itinerary as some of our, well,
many of our past vacations involved road trips which he hates and hiking which we
all love but was often in hot weather with mosquitoes. Our last trek was all over Alaska
partly in a rented RV and lots of hiking in the National Parks. I had the flu and son caught
a cold.

Crossing the bridge from college to work


So these are my ideas as I think travel will still be closed or not that safe in June.

1. An outdoor family picnic down by the now sinking Pilgrim in Dana Point Harbor.
I don't think they will be hauling it our soon and the backdrop of the sinking ship that
my children enjoyed in grade school pared with coronavirus graduation has a funny
ring to the idea,  will they cut it up for souvenirs before June?
I can make a brunch and they have fire pits which I would reserve. Inviting my family
and his cousins, but still allowing distance and fresh air. Then give him the IOU that
we will take a trip next spring when God willing this pandemic is over.

or
2. Do a picnic on the beach in Santa Cruz where he great grandmother liked to sunbathe
and order food. This would likely only involve myself, his sister and roommates, again
with the promise of a future trip

or
3. Send out cards for a virtual party that we Zoom. This sounds terrible as I'm already
tired of online work and videos of my wrinkles but we could all
wear clothing in the style of the year we individually wore when we graduated. Forget
about the trip and use the money to pay off all his student loans, its about the same
amount. Please keep in mind I was the sole support of my children and his father paid
nothing for all his years of schooling and college, no I take that back he gave him twenty
dollars for gas last year.  Son only had to get small loan in his last year, and I got a large
parent loan.

or
You tell me
Me making table decorations for Mom's B day


4/02/2020

New Mortgage Restrictions Tighter hands


Restriction: Non-Liquid Assets
Statement from current quarter required

Restriction: Self Employed Qualifying Income
The following is required for Self Employed or 1099 income:
·         Reduce qualifying income by 25% OR
·         12 months reserves required

Restriction: Future Income
Not Permitted
·         If borrower qualifies without future income the loan may proceed

Restriction: Manual Underwrite
Ineligible


Restriction: Age of Documents
Credit, income and asset documentation must be ≤ 60 days prior to note date

Guideline Update | FHA
Retail            Consumer Direct         Correspondent            Wholesale


Effective with locks on or after April 2, 2020

Restriction: Min FICO

WHOLESALE AND CORRESPONDENT
Transaction Type
FICO
Purchase, Rate & Term, Streamline, Cash Out
640
Manual Underwrites
660
203K Limited and Standard
640
203K Limited and Standard Manual Underwrites
660
Note: No Extensions or Relocks permitted

Effective with note dates on or after April 6, 2020
Restriction: DTI and Reserves Requirement

DTI
Required Reserves
>45% and <50%
2 months PITIA liquid reserves
≥50%
6 months PITIA Liquid reserves

Restriction: Transactions with Gift Funds
Max DTI 45%

Restriction: Manual Underwrite Reserve Requirements
2 months PITIA liquid reserves

Restriction: First Time Home Buyer
If living rent free, 6 months PITIA liquid reserves required

Restriction: Non-Liquid Assets
Statement from current quarter required

Restriction: Self Employed Qualifying Income
The following is required for Self Employed or 1099 income:
·         Reduce qualifying income by 25%, or
·         12 months reserves required

Restriction: Future/Expected Income
Not Permitted
·         Loans with future income must cease at this time
o   If borrower qualifies without future income the loan may proceed

Restriction: Age of Documents
Credit, income and asset documentation must be ≤ 60 days prior to note date

Guideline Update | USDA
Retail            Consumer Direct         Correspondent            Wholesale


Effective with locks on or after April 2, 2020

Restriction: Min FICO

WHOLESALE AND CORRESPONDENT DIRECT
TRANSACTION TYPE
MIN FICO
Purchase, Rate & Term, Streamline Assist
640
Manual Underwrite
660
Note: No Extensions or Relocks permitted

Effective with note dates on or after April 6, 2020
Restriction: DTI and Reserves Requirement

DTI
Required Reserves
>45% and <50%
2 months PITIA liquid reserves
≥50%
6 months PITIA Liquid reserves

Restriction: Transactions with Gift Funds
Max DTI 45%

Restriction: Manual Underwrite Reserve Requirements
2 months PITIA liquid reserves

Restriction: First Time Home Buyer
If living rent free, 6 months PITIA liquid reserves required

Restriction: Non-Liquid Assets
Statement from current quarter required

Restriction: Self Employed Qualifying Income
The following is required for Self Employed or 1099 income:
·         Reduce qualifying income by 25%, or
·         12 months reserves required

Restriction: Future/Expected Income
Not Permitted
·         Loans with future income must cease at this time
o   If borrower qualifies without future income the loan may proceed

Restriction: Age of Documents
Credit, income and asset documentation must be ≤ 60 days prior to note date


Guideline Update | VA
Retail            Consumer Direct         Correspondent            Wholesale


Effective with locks on or after April 2, 2020

Restriction: Min FICO

WHOLESALE AND CORRESPONDENT
Transaction Type
FICO
Conforming Loan Amount
640
Manual Underwrite
660

Note: No Extensions or Relocks permitted

Restriction: IRRRL – Collateral Value

WHOLESALE AND CORRESPONDENT
The following must be provided to support value:
·         AVM or Drive by Appraisal

Note: No Extensions or Relocks permitted

Effective with note dates on or after April 6, 2020
Restriction: DTI and Reserves Requirement

DTI
Required Reserves
>45% and <50%
2 months PITIA liquid reserves
≥50%
6 months PITIA Liquid reserves

Restriction: Transactions with Gift Funds
Max DTI 45%

Restriction: Manual Underwrite Reserve Requirements
2 months PITIA liquid reserves

Restriction: First Time Home Buyer
If living rent free, 6 months PITIA liquid reserves required

Restriction: Non-Liquid Assets
Statement from current quarter required

Restriction: Self Employed Qualifying Income
The following is required for Self Employed or 1099 income:
·         Reduce qualifying income by 25%, or
·         12 months reserves required

Restriction: Future/Expected Income
Not Permitted
·         Loans with future income must cease at this time
o   If borrower qualifies without future income the loan may proceed

Restriction: Age of Documents
Credit, income and asset documentation must be ≤ 60 days prior to note date

 IN SUMMARY
SELF EMPLOYED GET A BIG INCOME HAIRCUT
NO more rental income to offset
More cash reserves
Lower debt to Income RATIOS
MUCH HIGHER FICO SCOREs

California we are in for a difficult ride

















Age of Documentation
Age of documents are being modified to two months (60) days from four months (120 days) for most income and asset documentation.  If an asset account is reported on a quarterly basis, the most recently issued quarterly statement is required.

Third Party Employment verification will now require the vendor’s database to be no more than 60 days old as of the note date.

Standard age of document requirements will remain for Military Income documented using a Leave and Earnings Statement, Social Security, Retirement Income, Long Term Disability, Mortgage Credit Certificates, Public Assistance, Foster Care, or Royalty Payments.

Due to the federal income tax filing extension granted through July 15, 2020, the following documentation requirements are being eliminated:
  • A copy of the IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Tax Return), AND
  • IRS Form 4506-T (Request for Transcript of Tax Return) transcript to confirm “No Transcript Available” for the 2019 tax year.

All other requirements in regards to Allowable Age of Credit Documents and Federal Income Tax Returns continue to apply.

Verification of Self Employment
When using self-employment income to qualify a borrower, the existence of the borrower’s business must be verified within 120 calendar days prior to the note date.  Due to latency in system updates or re-certifications using annual licenses, certifications, or government systems of record, additional steps must be taken to confirm that the borrower’s business is open and operating.   This must be confirmed within 10 business days of the note date.

Below are examples of methods that may be used to confirm the borrower’s business is currently operating:

  • Evidence of current work (executed contracts or signed invoices that indicate the business is operating on the day self-employment is verified);
  • Evidence of current business receipts within 10 days of the note date (payment for services performed);
  • Certification the business is open and operating (confirmed through a phone call or other means); OR
  • Business website demonstrating activity supporting current business operations (timely appointment for estimates or service can be scheduled).
  • They may ask for last two weeks business deposits or letters explaining how operations is continuing
  • keep in mind in California they have to be an essential business to be out and about normal


Market Based Assets
Stocks, Stock Options, and Mutual Funds -
In light of current market volatility, the following updates are being made when the borrower is using stocks, stock options, or mutual funds for assets:
  • When used for down payment or closing costs, evidence of the borrower’s actual receipt of funds realized from the sale or liquidation must be documented in all cases.
  • When used for reserves, only 70% of the value of the asset must be considered, and liquidation is not required.