About the Author
Karen Deis is publisher of www.MortgageCurrentcy.com, the only e-zine that explains the mortgage rules and regulation changes in plain language so you can easily understand how they affect you and your loan files.
The term “trending” is making its way to mainstream media—but it seems that it also applies to the new mortgage rules. It’s hot for a while—until they are updated again. And you’ll find a ton of updates that have occurred within the last 30 days. View the 5-minute video here if you don’t have time to read the article.
First of all, you may want to log onto your NMLS website page because they have made some changes and enhancements. Forms have been updated to include additional legal wording, and easier search features make it easier for you to update your info.
Secondly, you’ll want to read the latest Consumer Finance Protection Bureau bulletin regarding transitional mortgage licenses … basically saying that states have the option to allow it. Here’s something to think about … if you are not licensed—meaning that you are registered and working for a financial institution—you may want to consider getting your license in case you want to change employment or move to another state.
FHA and VA have not changed anything this month. But here’s the cool thing—we went back to the FAQ’s regarding how FHA and VA underwrite rural properties and created a great Mortgage Talking Point™ called, “What You Need to Know About Financing Rural Properties.” Yes, they can be financed, and yes, give a copy of this great chart to your real estate agents so they know what homes they can offer FHA & VA financing on.
Moving on to Fannie and Freddie—HARP continues to haunt everyone. Fannie has just published a new FAQ regarding appraisals and field work waivers. Right now, you’ll find eight questions, such as:
Does the number of submissions impact the eligibility of a field work waiver?
Or, when DU issues an estimated value message, can I update the value in DU and resubmit to underwriting?
Stay tuned because any time we have a new FAQ issued, it generates more questions, and I see it happening here too.
Now, we generally don’t write about Fannie and Freddie servicing issues, but we thought this one was important enough not only to write about … but create a Mortgage Talking Points for you and your real estate agents. It’s about establishing time lines for processing short sales. As you know, it’s a frickin’ mess out there—and has been for years.
So Fannie and Freddie got together and said “Hey servicers, you need to follow these time lines so consumers and real estate agents who sell homes can see a light at the end of the tunnel.”
Why is this important? Because I don’t think that all servicers are going to follow the rules. If you or your agents know what they are, you can notify the servicers that they have a 60-day deadline they have to meet. This goes into effect on June 15.
And finally, on to USDA and some really important clarifications when it comes to both their Pilot Refinance program and their regular streamline and non-streamline refinance program. USDA has provided detailed instructions on how each loan is to be processed and underwritten. (They have a new matrix, so you can throw your old one away.) Just a reminder, the pilot program is the USDA version of HARP, but only available in 19 states and does not require a credit report or an appraisal.
Oh, and USDA has really gotten high tech and enhanced their eligibility map to the point where you can easily find if the property qualifies. It also has a zoom feature, an aerial view, and allows you to print the area you’ve pinpointed. Use the automatic tweet within the article and share the link with your real estate agents.
Remember, getting a loan approved and closed these days IS Rocket Science – and if you are not a subscriber, you can take a test drive for just one dollar. www.MortgageCurrentcy.com.