FHA: The Good, The Bad, The Ugly

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jvitts

12 Posts

Posted - 05/14/2008 : 09:48:51 AM

I am trying to start a thread about all the FHA lenders out there. Brokers and wholesale reps chime in. AEs post your niches and/or recently closed loans. Brokers tells us who you like and why: Pricing, service, etc. This could be of help to all of us.

Thanks!

jsimmonizer

103 Posts

Posted - 05/14/2008 : 09:52:24 AM

I have not used TBW for FHA since we are not set up to but I was noticing today that they do not have a pricing adjustment for low credit scores until under 580 where most have some hit for under 600 and under 620 and they will still do a manual underwrite under 580 if the file actually meets the requirements.

mullaned2002

91 Posts

Posted - 05/14/2008 : 09:53:22 AM

You can try my buddy Ryan. I think he is at Golden First now. I think he got one approved with a 520 score the other day. I can't comment on their service or pricing as I don't know anything about it. His number is 763-498-4631. His personal email address is krh36@hotmail.com. I don't know his business one and it may have changed anyway.

Best of Luck!
Dan

EquitySmart

616 Posts

Posted - 05/14/2008 : 10:05:00 AM

The question is beyond the scope of a single topic. FHA will usually work for borrowers that fit UW guidelines, and will rarely work for borrowers that do not fit UW guidelines, just like other loan programs. The best thing you can do is learn the UW guidelines.

vegas41

32 Posts

Posted - 05/14/2008 : 4:10:16 PM

I work with an FHA lender that has no min credit score requirement; closing a deal with 450 credit score now..

Ging

121 Posts

Posted - 05/15/2008 : 12:10:06 AM

if your not doing the FHA Secure your missing the boat

lunarhamster

2539 Posts

Posted - 05/15/2008 : 06:19:05 AM

I have been doing nothing but FHA, if these lenders actually knew the guidelines it would be a huge help, it's pretty sad when an LO has to tell the underwriter what the guidelines are, argue and waste an entire day, until the UW actually takes a glance at their little handbook and says "oh, you're right" no shi* sherlock!!!

I am working on a loan with Freedom Mortgage, they obviously have never done an FHA loan with a escrow repair, HUD repo. There is a plumbing leak inside the house that will be fixed after we close, and now they are asking for the septic to be inspected, just shakin my head in disbelief.

This is why we are doing an ERB, so the borrower can fix the leak, not that the septic HAS ANYTHING TO DO with a leaky pipe in the house, DUH... I am amazed.

HEAREP

217 Posts

Posted - 05/15/2008 : 09:28:18 AM

We have a no min score FHA product.

Banker0679

7673 Posts

Posted - 05/15/2008 : 10:29:29 AM

i know many brokers who do FHA, and not one has closed an FHA secure loan.

I bet you havent either!

edit* please dont email me to rant about 'if' I was your LO you would do this or that.
Go run a poll to see how many ppl here have done fha secure loan.
Go to Google, and type in 'fha secure programs', and you will see I'm #1.
I get a lot of FHA secure apps there dont even qualify for it.
There's NO BOAT TO BE MISSED.

quote:
Originally posted by Ging

if your not doing the FHA Secure your missing the boat

the Loanarranger

6 Posts

Posted - 05/15/2008 : 10:59:14 AM

I have heard TB&W are on roughly 20+ day turn times? Is this correct?

Ging

121 Posts

Posted - 05/15/2008 : 11:29:59 AM

Bander0679 fha.gov do your home work HUD anounced 200,000 secure loans funded, if you argue with a fool you can't tell who is the fool.

katbunk

1452 Posts

Posted - 05/15/2008 : 11:40:00 AM

quote:
Originally posted by Ging

Bander0679 fha.gov do your home work HUD anounced 200,000 secure loans funded, if you argue with a fool you can't tell who is the fool.

Out of curiosity Ging, out of the 200K, how many did you do?

Waiting, waiting, waiting....... Want to see how much of "the boat" I'm missing doing regular FHA vs FHA secure.

Banker0679

7673 Posts

Posted - 05/15/2008 : 11:40:54 AM

are you ignorant or ignant?

200,000 fha secure loans? lol How many have you written from that amount?
You still haven't said yet

FHA is the boat...not FHA secure.

Oh have you funded an FHA secure loan yet?
No.
You dont know what you're missing! OMG you're missing the boat! Better get on before it's too late!

puh-lease

Go poll the main forum to see who has funded an FHA secure loan.

quote:
Originally posted by Ging

Bander0679 fha.gov do your home work HUD anounced 200,000 secure loans funded, if you argue with a fool you can't tell who is the fool.

808

1671 Posts

Posted - 05/15/2008 : 11:46:45 AM

quote:
Originally posted by Banker0679

are you ignorant or ignant?

200,000 fha secure loans? lol How many have you written from that amount?
You still haven't said yet

FHA is the boat...not FHA secure.

Oh have you funded an FHA secure loan yet?
No.
You dont know what you're missing! OMG you're missing the boat! Better get on before it's too late!

puh-lease

Go poll the main forum to see who has funded an FHA secure loan.

quote:
Originally posted by Ging

Bander0679 fha.gov do your home work HUD anounced 200,000 secure loans funded, if you argue with a fool you can't tell who is the fool.

don't say that, she might sink it

the Loanarranger

6 Posts

Posted - 05/15/2008 : 11:48:41 AM

Crap now I need to Google the word ignant?

katbunk

1452 Posts

Posted - 05/15/2008 : 11:50:55 AM

quote:
Originally posted by the Loanarranger

Crap now I need to Google the word ignant?

While ignorant implies doing or saying something foolish not knowing any better, ignant implies that the person knew damn well and chose to act foolish.

Sorry, have time on my hands today, had to google it myself.

katbunk

1452 Posts

Posted - 05/15/2008 : 11:57:09 AM

So Ging, where did you go?

Banker0679

7673 Posts

Posted - 05/15/2008 : 11:57:22 AM

i thought she was a he.

If i knew she was a she, then I would've acted nicer.

Sorry Ging!

quote:
Originally posted by 808

quote:
Originally posted by Banker0679

are you ignorant or ignant?

200,000 fha secure loans? lol How many have you written from that amount?
You still haven't said yet

FHA is the boat...not FHA secure.

Oh have you funded an FHA secure loan yet?
No.
You dont know what you're missing! OMG you're missing the boat! Better get on before it's too late!

puh-lease

Go poll the main forum to see who has funded an FHA secure loan.

quote:
Originally posted by Ging

Bander0679 fha.gov do your home work HUD anounced 200,000 secure loans funded, if you argue with a fool you can't tell who is the fool.

don't say that, she might sink it

ehm3

920 Posts

Posted - 05/15/2008 : 12:05:00 PM

Banker is right, Secure is a joke. Sure it has helped a few people, but it was very few and very far between. Honestly, normal FHA with good solid common sense UW and no min score would be far more effective than Secure. Unfortunately that boat has been taking on a lot of water too.

FHA knowledge is the boat right now. Knowing hopw to package and submit the file, and deal with inexperienced UW is crucial because with the rapid expansion of FHA, lenders are hiring tons of UW with little real FHA knowledge or experience.

kalee3415

183 Posts

Posted - 05/15/2008 : 12:05:16 PM

The septic inspection has nothing to do with your repair. FHA always requires septic inspections (dye test, distances from property, property line, and well if applicable). Other than what you are running into with your escrow repair, how are you liking Freedom? We are in the process of getting set up with them hoping for a good manual submit lender with decent turn times. Are they good at either of these? From what we have seen so far their pricing isn't too good, but if they are quick and good at manuals I can't really complain.

quote:
Originally posted by lunarhamster

I have been doing nothing but FHA, if these lenders actually knew the guidelines it would be a huge help, it's pretty sad when an LO has to tell the underwriter what the guidelines are, argue and waste an entire day, until the UW actually takes a glance at their little handbook and says "oh, you're right" no shi* sherlock!!!

I am working on a loan with Freedom Mortgage, they obviously have never done an FHA loan with a escrow repair, HUD repo. There is a plumbing leak inside the house that will be fixed after we close, and now they are asking for the septic to be inspected, just shakin my head in disbelief.

This is why we are doing an ERB, so the borrower can fix the leak, not that the septic HAS ANYTHING TO DO with a leaky pipe in the house, DUH... I am amazed.

katbunk

1452 Posts

Posted - 05/15/2008 : 12:05:34 PM

how do you know, he or she??.........

Banker0679

7673 Posts

Posted - 05/15/2008 : 12:07:08 PM

808 said

the Loanarranger

6 Posts

Posted - 05/15/2008 : 12:22:11 PM

Thanks Kat.
Just started looking at this site and is kinda cool.

katbunk

1452 Posts

Posted - 05/15/2008 : 12:28:07 PM

You'll love it. Lots of things to be learned and shared. And of course, the occasional fun.

Ging

121 Posts

Posted - 05/15/2008 : 12:43:11 PM

we wrote 8 last week if you were around when the FHA streamlines were very profitable then you would see why this product may become as profitable. mortgage letter 2008-13 makes the secure loan available to a larger group and I bet they further modify it in the near future. a few days ago I went on this site and asked if any one had a good source for FHA multifamily 5+ and got the same type of response you stupid it doesn't exsist, this isn't the most kind and friendly group probably save my energy for the existing 1st on these secure loans, hope you all make through the next cycle.by the way Ging is a nickname chinesse for precious metal and I have had my FHA since 1987

katbunk

1452 Posts

Posted - 05/15/2008 : 12:49:57 PM

Well, put a rose on your nose, Ging.

No need to get all worked up, asking honest questions here.

Wrote 8?????? How many closed?

Banker0679

7673 Posts

Posted - 05/15/2008 : 12:57:31 PM

exactly my point.

i get 8 fha secure apps PER WEEK....not ONE of them has closed.

quote:
Originally posted by katbunk

Well, put a rose on your nose, Ging.

No need to get all worked up, asking honest questions here.

Wrote 8?????? How many closed?

katbunk

1452 Posts

Posted - 05/15/2008 : 1:01:01 PM

true. People hear about these "new" programs that are going to save the industry and the homeowner. As far as I'm concerned, none of these have amounted to anything more than political grandstanding.

And Ging, I received your e-mail. While I'm all about educating yourself on these programs, don't bet the bank on these loans. You'll run yourself ragged with no benefit. Like Robert said, he has tons of these submissions and rarely closes them.

Ging

121 Posts

Posted - 05/15/2008 : 1:03:02 PM

0679 your the greatest lender I have ever ran into in all the years I have been in the business. have a wonderful day in between working on all those loans

Banker0679

7673 Posts

Posted - 05/15/2008 : 1:04:52 PM

i dont work them anymore. i kill them in 2-3mins and spend my day fishing.

you're = you are

quote:
Originally posted by Ging

0679 your the greatest lender I have ever ran into in all the years I have been in the business. have a wonderful day in between working on all those loans

katbunk

1452 Posts

Posted - 05/15/2008 : 1:06:52 PM

Ging, there is no need to send me personal e-mail.

"rose on your nose" = give yourself a big pat on the back.

Ging

121 Posts

Posted - 05/15/2008 : 1:10:30 PM

my last word; when is the last time any loan was guaranteed by the government that had credit and value problems. I try to not take loans that don't close Katbunk your advice is appriciated when you run an office you try to get business in that is profitable for your people, commercial was that vehicle for me

Carpet Muncher

1328 Posts

Posted - 05/15/2008 : 1:11:38 PM

Ging,
Banker0679 is right (as always). Eventually you will realize that FHAsecure is a waste of time. When it first came out I was sending in a few Secures per week. One closed. The program is all government hot air. The lenders don't really want to do them and will find a reason to decline them. I don't even waste my time on the applications anymore. Too much closable business to chase.

quote:
Originally posted by Banker0679

exactly my point.

i get 8 fha secure apps PER WEEK....not ONE of them has closed.

quote:
Originally posted by katbunk

Well, put a rose on your nose, Ging.

No need to get all worked up, asking honest questions here.

Wrote 8?????? How many closed?

reverseguy

96 Posts

Posted - 05/15/2008 : 1:12:03 PM

Seems we got away from the original topic. I would be interested in the original topic.

ehm3

920 Posts

Posted - 05/15/2008 : 1:12:07 PM

quote:
Originally posted by Ging

my last word; when is the last time any loan was guaranteed by the government that had credit and value problems.

are you seriously insinuating that Gov loans do not have credit or value problems?

Banker0679

7673 Posts

Posted - 05/15/2008 : 1:15:08 PM

this IS on topic. This is the ugly part

quote:
Originally posted by reverseguy

Seems we got away from the original topic. I would be interested in the original topic.

Banker0679

7673 Posts

Posted - 05/15/2008 : 1:17:22 PM

i only stick to topics i know about lol

i dont know commercial...or fha reverse.

FHA REVERSE!!! I bet that's a nice boat

quote:
Originally posted by Carpet Muncher

Ging,
Banker0679 is right (as always). Eventually you will realize that FHAsecure is a waste of time. When it first came out I was sending in a few Secures per week. One closed. The program is all government hot air. The lenders don't really want to do them and will find a reason to decline them. I don't even waste my time on the applications anymore. Too much closable business to chase.
quote:
Originally posted by Banker0679

exactly my point.

i get 8 fha secure apps PER WEEK....not ONE of them has closed.

quote:
Originally posted by katbunk

Well, put a rose on your nose, Ging.

No need to get all worked up, asking honest questions here.

Wrote 8?????? How many closed?

reverseguy

96 Posts

Posted - 05/15/2008 : 1:19:05 PM

That's not a bad boat but every broker in the world has tried to board.

katbunk

1452 Posts

Posted - 05/15/2008 : 1:53:46 PM

quote:
Originally posted by ehm3

quote:
Originally posted by Ging

my last word; when is the last time any loan was guaranteed by the government that had credit and value problems.

are you seriously insinuating that Gov loans do not have credit or value problems?

I think what he's trying to say is that there are not other loans out there for people with credit or value problems. That's why there was such hype over these FHA secure, but they have helped only a small percentage of people. 200,000 in the entire U.S is nothing more than a drop in the bucket.

reverseguy

96 Posts

Posted - 05/15/2008 : 2:56:23 PM

I did check with my local investor. They said they do have customers doing very well with it. I'll update later.

MISSIE

60 Posts

Posted - 05/16/2008 : 12:12:34 AM

quote:
Originally posted by lunarhamster

I have been doing nothing but FHA, if these lenders actually knew the guidelines it would be a huge help, it's pretty sad when an LO has to tell the underwriter what the guidelines are, argue and waste an entire day, until the UW actually takes a glance at their little handbook and says "oh, you're right" no shi* sherlock!!!

I am working on a loan with Freedom Mortgage, they obviously have never done an FHA loan with a escrow repair, HUD repo. There is a plumbing leak inside the house that will be fixed after we close, and now they are asking for the septic to be inspected, just shakin my head in disbelief.

This is why we are doing an ERB, so the borrower can fix the leak, not that the septic HAS ANYTHING TO DO with a leaky pipe in the house, DUH... I am amazed.

Yes, I'm going through this right now on a FHA file. We should have had docs like a week ago. These people at the lender are beyond stupid. I just can't believe it. And my clients are giving me an ultimatum at this point. Docs tomorrow or we cancel. Ugh!

Mandyvilla

2371 Posts

Posted - 05/16/2008 : 04:25:54 AM

The problem is everywhere.....if they aren't backed up, they all have DEU's running test cases......or even worse, both. I have had to pull memos and cut an paste to the underwriter, but in a cautious manner....it's not like I can up and switch. My latest battle was a pre-approval w/ 720 credit scores.....civil service employee on an intern fast-track (guaranteed set increases each year) My only problem with the file was ratios and she was submitted at a 48%. She came back with a ridiculous counter offer AND SHE HAD A LP ACCEPT AT MY LOAN AMOUNT! I emailed her back I would have no choice but to escalate - that this was one of the best FHA loans I had submitted and if she would like file numberS I would be happy to provide....But to counter offer an LP accept for ratios could be problematic - for her, for the company.

We have an army of underwriters out there....all with their heads still trying to impose conventional guidelines on government transactions......We once had a DEU that was famous for being tough and eventually, too many times her name was heard in the HOC. She was told to lighten up, but it took a couple years. HUD is just as concerned about over-underwriting a file. They lost a lot of business in 2005 due to image issues.....much of the subprime volume could have could have been been written FHA -but no one would consider it because of their reputation. <insert hind sight 20/20 statement>

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