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
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
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!
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.
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
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
Subscribe to:
Posts (Atom)