KnowYourPro

FHA, Prime Mortgage Defaults at Records on Job Losses http://www.bloomberg.com/apps/news?pid=20601087&sid=apOfNyUT0FGE&pos=4 Anyone shocked by this news?

Well considering I just closed a loan two weeks ago and got an email with the borrowers updated contact information because she just got laid off, no. She closed and got her mortgage. Her husband was not on the loan so I at least know she has help paying the mortgage.

Probably should go to another topic but what the hell. One thing bothering me in this healthcare debate is that the politicians have said that most people going BK are due to medical bills. In my experiance its more people get sick, cant work, and the lack of income helps to pile up the bills that lead to BK. Sooooo in that case shouldnt this debate be about having disability or supplemental insurance??

Just got a VOE back for a law clerk who works for the State of NJ....On "probability of continued employment" HR says she has a job until Aug/2010 so we had to have Mom & Dad co-sign since her income is now useless for u/w.
Now I find out the friggin appraiser made a comment about the house needing to be painted. (One side was painted...two sides were finished with stain)....so apparently the guy assumed they just weren't done painting or something and called for it to be done before closing.

We love our jobs, we love our jobs, we love our jobs...

I ran across a lender today who will not accept a non-occupying co-borrower on FHA loans. What??? Now that is mortgage madness! The parents (non-occupying co-borrowers) are "on the hook" just as the borrower is. I just don't get it!

Did you run across him with your car or a riding lawn mower?

Doug, that comment reminds me of a Stephen King movie I once saw

So Amtrust bites the dust? I figured we were done with the big lender closings. Guess not!

Just heard the news. Too bad. We did sign up with them back in 07 when the industry was shrinking. They were doing business, were competitive and we liked the rep. The issue that freaked me out was that they were so automated, they would have us (a broker) put together the closing docs and get them out to the closing attorney. I'm a broker and know well enough that I dont want to be touching closing docs.

oh that's right, that's why Marty liked using them. He had full control of everything. That would seem a little strange to me as well.

Totally turned me off on that. Suppose I email the closing attorney the docs and post closing there is something that needs to be corrected. I dont need that pressure.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/09/AR2009120904635.html?hpid=topnews

Washington Post with a story about GinnieMae

Great article Rich, what is your take on it? Why do you think LendAmerica (etc...) was able to do so much damage right under the nose of GM?

Here is another article I found today. It bother's me on so many levels I will just let you read and me the judge.

http://articles.moneycentral.msn.com/Banking/HomeFinancing/weston-should-you-walk-away-from-your-home.aspx

Jen,

I don't know, but FHA wants to open up completely to Brokers. They are proposing a rule to only license big lenders and those lenders can decide what brokers they wish to accept FHA loan from. Effectively that will eliminate the net worth requirement. I have pride that we have maintained our FHA eligibility with net worth, audited financials and such. I think there should be a barrier for those wishing to partake. Opening the door like that could lead to more fraud and scandal.

Reminds me of a song http://www.youtube.com/watch?v=g2BqLlVHlWA

What are your thoughts on YSP (Yield Spread Premium)? Will it still be an option come January? I think it will in one form or another. I feel it is a valuable option for borrowers and should be left alone. The fact that HVCC went through with such little thought to consequences does make me a little nervous though. It shows me anything is possible.

It will be there but in a convoluted way.