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juando67
115 Posts |
 Posted - 05/16/2008 : 8:48:40 PM
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Just got an email from Freddie's automated email system and checked Fannie's site -- they're eliminating their "declining markets" policy. Freddie will be allowing LTVs to 95%; and up to 100% for their Home Possible loans. Fannie says that they will be buying loans to 97% if underwritten by DU and to 95% if underwritten manually.
Hmmmm..... what will lender reaction be? What will the mortgage insurer's do?
Should be interesting. |
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broker
126 Posts |
Posted - 05/19/2008 : 06:15:59 AM
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Where did you check on their website? I didn't see anything.
Is this across the board in the US or just your state?
Are the MI companies on board?
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HEAREP
218 Posts |
Posted - 05/19/2008 : 07:01:15 AM
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quote:
Originally posted by juando67
Hmmmm..... what will lender reaction be? What will the mortgage insurer's do?
Should be interesting.
Appraisal cuts will be the lender reaction. |
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katbunk
2391 Posts |
Posted - 05/19/2008 : 10:09:51 AM
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Here is a portion of the announcement
The housing market was further buoyed by Fannie Maes announcement on
May 16 that it was eliminating higher minimum down payment
requirements for borrowers in distressed real estate markets. The
government-sponsored enterprise said it will require minimum down
payments of between 3% and 5% for all loans it guarantees. The change
replaces a December policy that required a higher minimum if the loan
was for a home in a declining real estate market.
Fannies reversal is much needed because the number of U.S. homes facing
foreclosure in April shot up 65% versus the same month a year ago, and
4% since March, RealtyTrac said May 14. One in every 519 U.S.
households received a foreclosure notice in April.
The slowing economy contributed to the lowest level of consumer
confidence in 28 years, according to the Reuters/University of
Michigan consumer sentiment index, which has been tracking consumer
confidence in the economy for more than half a century. The
preliminary index fell to 59.5 in May from 62.6 in April. A reading
above 100 indicates strong consumer confidence.
Economic news due out this week includes the Conference Boards Leading
Economic Indicators report on May 19 and the existing home sales
update on May 23.
Economic data compiled from government reports and news services
Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic
Calendar.
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bbbbenny
240 Posts |
Posted - 05/19/2008 : 10:22:35 AM
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Fannie and Freddie both made formal announcements late last week. To be effective July 1st. Fannie also added a 7/1 and 10/1 ARM both amortizing and i.o. They lifted the max ltv on a r/t refi to 90% from 75%. It's the right direction but I, like juando, am interested to see how lenders react and MI, especially since MGIC is scaling back in what they'll insure starting the same day, 7/1.
From ALLREGS:
Expanded Eligibility and Products
Fannie Mae is expanding jumbo-conforming eligibility to include the following transactions and products:
For all Occupancy Types
• Fixed-rate interest-only mortgages with a 10-year interest-only period, 30-year term
• 7/1 and 10/1 fully amortizing ARMs, LIBOR index, 5/2/5 caps, 30-year term
• 7/1 and 10/1 interest-only ARMs with a 10-year interest-only period, LIBOR index, 5/2/5 caps, 30-year term
For Principal Residence Transactions Only
• Cash-out refinances with loan-to-value (LTV), combined LTV (CLTV), and home equity CLTV (HCLTV) ratios up to 75 percent (maximum $100,000 cash-back to the borrower)
• Increased ARM LTV, CLTV, and HCLTV ratios for purchase money transactions up to 90 percent
• Increased LTV ratios for limited cash-out refinances to 90 percent (and reduced CLTV and HCLTV from 95 to 90 percent)
Refer to the “Maximum LTV, CLTV, and HCLTV Ratios for Jumbo-Conforming Mortgages” chart below for additional information.
Effective Date for Expanded Eligibility and Products
Depending on the specifics of the transaction (e.g., whole loan or MBS, fixed-rate or ARM, fully amortizing or interest-only, loan purpose and occupancy) the above transactions are eligible for whole loan purchase or MBS delivery beginning either July 1, 2008 or August 1, 2008 -- refer to Attachment 1 of this Announcement for the schedule of effective dates.
Additional Eligibility Changes and Clarifications
• Jumbo-conforming mortgages are no longer subject to a reduction in the LTV, CLTV, or HCLTV ratios if the property is located within a declining market.
• The requirement that fully amortizing ARMs be qualified at the higher of the note rate or fully indexed rate is being modified. In accordance with the requirements of the Fannie Mae Selling Guide, fully amortizing ARMs can be qualified at the note rate. Interest-only ARM qualifying will not change and will continue to be based on the higher of the note rate or fully indexed rate.
• Fannie Mae is clarifying that CPM™ Expedited Review or the Lender Full Review process is not required for attached units in a PUD project. Lenders must follow the “Eligibility Requirements for PUD Projects” stated in Announcement 07-18, Lender Delegation of Project Review Processes and Related Changes for Condominiums, Cooperatives, and Planned Unit Developments (PUDs).
Each of the above three changes will align the requirements for jumbo-conforming mortgages with standard conforming mortgages.
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MortgageBoarder
4492 Posts |
Posted - 05/19/2008 : 10:25:15 AM
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Here is the actual link through AllRegs
http://www.allregs.com/ao/main.aspx?did2=be3472961d7c4929b32479501e0a38a0 |
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djorge44
1847 Posts |
Posted - 05/19/2008 : 10:26:23 AM
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| Any word from MI companies, I bet they still don't insure them |
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