Trump Administration Immediately Reverses FHA Mortgage Fee Cut

In his inauguration speech, President Trump made it clear that his Administration was going to institute changes in policy almost immediately.

True to his word, within one hour of taking office, the new Trump Administration reversed one of former President Obama’s final policy decisions—a mortgage fee cut that would have reduced the annual premium for those borrowing $200,000; the change would have resulted in a $500 cut in the first year of the mortgage.

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What is Day One Certainty?

Day One Certainty is a Fannie Mae initiative that streamlines loan processing and offers Lender Representations and Warranties against buybacks.  It took effect December 10, 2016.

Lenders receive certainty regarding income, assets, and employment information that has been validated by Desktop Underwriting. With validation, lenders will receive freedom from representations and warranties with regard to the accuracy of income and/or asset calculation, borrower employment status, and the integrity of the data from the vendor. As long as the lender meets all DU validations service requirements and complies.

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Déjà Vu? Housing Prices Reach New Heights…Again

The great—and always quotable—late baseball legend Yogi Berra coined the phrase “it’s like déjà vu—all over again”.

With American housing prices reaching new heights, pricing levels not seen in a decade, housing industry experts are left to wonder if Berra’s axiom is proving to be true yet again.

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Mobile Apps Revolutionizing the Mortgage Industry

Top view shot of businessman using modern digital tablet and pressing on Mortgage button.

The National Association of Realtors is forecasting another strong demand year in 2017 for purchase transactions.  They are also saying that they hope first time home buyers re-enter the market next year as opposed to staying on the home ownership sidelines like they did in 2016.  Homeownership is at a 50 year low and the one way to significantly improve that number is to increase first time home buyers.  Who are these first time home buyers and what can the industry do to get them into the purchase market?

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2017: Do Rising Rates Loom For The Housing Sector?

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In the wake of the November elections—as the country, and specifically the business sector, await a new Administration’s fiscal direction—speculation is growing among economic experts over the possibility of accelerated economic growth accompanied by higher interest rates and inflationary pressures.

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Self-Employment Mortgages Got Easier

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There are over 14 million self-employed borrowers in the United States.

Self-employment poses challenges to lenders, since the business income reported on an individual 1040 IRS Form may not necessarily represent income that has actually been distributed to the borrower. Fannie Mae recently issued new guidelines related to self-employment income, and the result is that it is now easier to get a mortgage if you’re self-employed.
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Another MBA in the Books!

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By Scott K. Stuckey

MBA 2016 in Boston, wow a lot was going on! Here’s a quick recap in case you weren’t able to make some of the sessions or attend this year.

Day 1 certainly started with major news – FNMA announced it will provide originators freedom from representation and warranty repurchase claims. FNMA is offering income, asset and employment verification services thru DU 10.0.
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Closing Out 2016: Banking On Better Days Ahead

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For a year in which there has been much disagreement about the future direction of the nation, there’s at least one thing upon which most within the financial sector can agree: despite some global turbulence, and political uncertainty at home, the third quarter of 2016 delivered good news for most of the nation’s banks.
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Equity, Affordability and Incomes

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As the housing market continues to recover from the Great Recession, we’re seeing some interesting data on the state of the market. Home prices in some markets are at–or above–their pre-recessionary peaks. In the last year, at a national level, home prices grew by 6.2 percent year over year in August, according to industry reports. The September forecast calls for a 0.4 percent growth rate and year over year growth of 5.3 percent by August of next year.
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MBA National is in Boston October 23rd thru 26th! We’re going to be there–are you?

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SettlementOne will be attending the Mortgage Bankers Annual Convention and Expo in Boston this month, and if you–or members of your team–will be there too, we’d love to have the opportunity to meet with you. We will be hosting a meeting suite at the Hilton Hotel, located next to the convention center; or, if you prefer, we can arrange to meet you at the convention center itself, whichever is more convenient.
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Is Global Uncertainty Good for Mortgage Lending?

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As continued political and economic global uncertainty shows no signs of diminishing, the mortgage lending industry appears to be in good shape. Why is this happening, and can we expect this to continue? Uncertainty, whether political or economic, generally causes investors to ‘flee to quality’, meaning that they have a lower tolerance for risk. When there is so much uncertainty, either in their political or economic system, they want to invest in order to minimize risk.
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Digital Brand – Do we need one?

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We’re all familiar with the Internet these days, and it seems like everyone has a mobile smart phone. We hear about how millennials do all of their business from their mobile devices, everything has to be online, etc (cant end a sentence this way). As mortgage lenders, we are still taking applications, processing, underwriting, closing the loans and continuing to go about our business. We have systems and technology that allow for pretty efficient processes. Many lenders have some type of online presence,–certainly a website—and maybe a way to take an application online. But do mortgage lenders have a digital brand, a message or image in the ever-increasing online world? Do they even need one? If so, what things should they consider before they do decide to develop a digital brand?

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Is Credit Too Tight?

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As the residential real estate market continues to improve in the majority of cities across the United States, the overall percentage of citizens owning their own home is not concurrently increasing.

According to the Commerce Department, in the second quarter of 2014, seasonally adjusted homeownership in the U.S. declined to 63.5 percent, from 64.7 percent.; by contrast, overall homeownership was just over 69 percent in 2005, the highest level ever recorded. Although it may be a seller’s market in many areas, and sellers are receiving stronger backup offers, a decreasing number of people (as a percentage of the population) are actually owning their own home.

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