Florida homeowners are no strangers to the idea of mortgage modification, as put forth via wide-spread publicity efforts announcing home loan modification as part of President Obama’s foreclosure-prevention program. As recently as last week, Chase Mortgage, the servicing side of JP Morgan Chase, had negotiated more than 15,000 modifications under this program.  Chase Mortgage isn’t’ the only major bank facilitating mortgage modifications.

Back in April of 2009, Bank of America delivered as many as 100,000 letters to borrowers who could potentially benefit from home loan modification. Although BOA has yet to release information as to how many mortgage modifications it’s performed, the lender is clearly involved in the process.

Making Home Affordable – Key Goals and Intended Outcomes

When the Making Home Affordable plan went into effect on March 4, the Obama administration believed that it could help as many as 4 million people steer clear of mortgage default and/or foreclosure. The plan’s key focus involved encouraging lenders to help past-due borrowers or those at-risk of falling into this category lower their interest rates to levels where their monthly housing payments would not exceed 31 percent of their gross monthly income.

While the Making Home Affordable program isn’t available to all Florida mortgage borrowers, it may very well be an option for you.  To find out if this program fits your individual situation, follow these important steps:

Step 1: Go to the Making Home Affordable Website

You can find everything you need to know about the Making Home Affordable program on their official website.

Step 2: Determine Your Eligibility

Once you get to the site, select the option that says “Find out if you are eligible” and then go to the “Home Affordable Modification” option. (Note: If you’re behind on your mortgage, don’t go to the “Refinancing” option – as this is just for those who want to lower their interest rate but are NOT delinquent yet.)

The site makes use of a Five Question Quiz.  Go ahead and take it.  Taking your answers into consideration, the site will let you know whether you fit the scenario for someone who might qualify for a mortgage modification.

If you qualify for Obama’s Mortgage Modification Program  – then you fit the following:

• You bought your house before Jan. 1, 2009
• You owe less than $729,750
• The home is your primary residence
• You are currently delinquent on your mortgage payments
• Your payment equals more than 31% of your monthly gross income

Once your eligibility is determined, the site will provide you with an eight-item checklist of items you’ll need to provide your lenders so that the mortgage modification process can begin.

Step 3: Collect Required Paperwork

Like any mortgage approval process, you’ll be required to submit specific documents to support your application. Documentation typically asked for by lenders offering home loan modification through Making Home Affordable will ask for the following:

• Household-income documentation, such as pay stubs; tax returns; savings account records
• Mortgage statements; second mortgage info, such as home-equity loans statements
• Credit card bills
• Information on other debt, including student and car loans

Something else you will be asked to provide is a written “hardship letter” describing exactly what conditions led you to become delinquent on your home loan.  Reasons that may apply to you include job loss, unforeseen medical expenses, or divorce.

Well-Written Hardship Letters Can Make or Break  Your Home Loan Modification Application

A well-written hardship is perhaps one of the key determining factors in being granted home loan modification approval.  Think of these letters as a means of personalizing your situation.  No one applicant’s circumstances are the same, and as in any case where folks are competing for funds – the most compelling situations win.  Remember that your financial documentation may prove too cryptic to point out the specifics – the nuances, if you will – that caused your home loan delinquency – this is where your hardship letter can really help.

Something to keep in mind regarding your hardship letter:  Rather than writing that you made a bad decision in that you never could have afforded your home loan in the first place, talk about the job loss or health problem you suffered and how it kept you from keeping up with your payments.  Explain that things are better now, that you’ve recovered or that you have gained new employment – and that you’re working on getting back on track with your financial obligations.

Failing to explain these specifics may cause your lender to look at your situation as a simple case of financial irresponsibility or carelessness.  To guard against this – be sure to tell them the complete story.

Step 4: Follow Up with Your Mortgage Lender

When you complete your home loan modification application packet, be sure to follow up with your mortgage servicer or lender (whoever it is that you send your monthly mortgage payments to).   You should be able to continue your mortgage modification program with your lender via phone, mail and email – with no need to meet anyone face to face.

Step 5: Be Prepared to Wait for a Decision

Perhaps one of the hardest things for applicants participating in the Making Home Affordable program to do is to wait for lenders to approve their program.  Lenders may choose to lower your mortgage debt by either reducing your interest rate, lengthening the duration of your mortgage, or reducing your overall mortgage balance.

In nearly all cases, your lender will start by shifting your mortgage payment down to match 38 percent of your gross monthly  income. After this is accomplished, the government provide compensation to your lender allowing them to reduce your payment down to 31 percent of your gross monthly income.

Once your monthly mortgage payment has been lowered to 31 percent of your gross monthly income, you’ll receive new paperwork which, when signed, will start a new mortgage loan with your lender that reflects the modified terms.  The total process can take as many as four to six weeks -so hold tight.  Lenders do hope to expedite the home loan modification process, but this will only happen as new staff is added to help speed up the processing time frame.

Remember:  You’re On Probation for Three Months!

Something you’ll want to stay mindful of is the fact that your home loan modification arrangement with your lender is granted on a 3 month probationary period – pending your on-time payments for this length of time.  Assuming you stay current for this time frame, your mortgage payment arrangement will then become permanent.

Special Note for Florida Mortgage Borrowers Seeking Home Loan Modification

As noted above, mortgage lenders are not required to lower the overall amount due on your Florida home loans.  This, I feel, is one of the biggest problems with the Making Home Affordable program.  In many cases here in Florida, home owners will not be able to maintain payments if the only modification they receive is the payment amount being lowered to 31 percent of their gross monthly income.  So many homes here in Central Florida have dropped to below 50 percent of their initial value that this single modification just won’t cut it.   Put simply, it’s very likely that these borrowers will choose to let their homes go into foreclosure or will pursue short sales in an effort to wipe the slate clean.

That said, I do feel that lenders are becoming smarter (or more realistic) as we move further into the current housing situation.  More and more bank owned homes and short sales are coming in with lenders paying some or all of buyers’ closing costs – which was not the case early on.  As such, lenders may also be more willing to reduce debt loads in addition to lowering payments.

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Florida Mortgage Rates May Increase Pending the Fed’s Most Recent Position

One of the questions I get most as a  Florida mortgage broker relates to the status of mortgage rates at any given moment.  While there is really no way to gauge mortgage rate movement with absolute precision, there are a few things to look out for when it comes to getting a sense for what they’ll do over a fixed period of time.

Dan Green posted a great article today over at his Mortgage Reports blog where he cited the most recent home loan  rate trend survey, which might provide us with some answers.  This survey covers Conventional Mortgages only, and as such doesn’t pertain to VA mortgages, FHA mortgages, jumbo mortgages, or foreign national mortgages.

Based on the survey, results break down as follows:

• 19% of the experts and analysts reporting believe mortgage rates will increase
• 31% of the experts and analysts reporting  believe mortgage rates will decrease
• 50% of the experts and analysts reporting  believe mortgage rates will remain flat

For my money – I believe – as does Dan does over on his mortgage blog - that mortgage rates will increase.

Here’s what Dan told Bankrate.com:

“Inflation concerns resurface after the Fed’s April 28-29 meeting.”

Watch the Federal Open Market Committee Press Release for Mortgage Rate Movement Signs

The Federal Open Market Committee (FOMC) will meet on Monday and Tuesday of next week.  Most mortgage and financial experts content that they’ll hold the Fed Funds Rate steady inside the present rate of 0.000 to 0.250 percent.

This rate hold won’t be the news, however.  What will make news is the Fed’s press release after this FOMC meeting takes place.   We’ve said it here before: What Uncle Ben and Company “say” is often more impactful than what they “do.”  Here’s why…

Most American’s believe, incorrectly, that the Fed controls mortgage rates.  If this were the case, mortgage rates would have increased between 2004 and 2006 while the Fed was inflating its interest rate from 1 percent to more than 5 percent.  We also see this when the Fed rate moves back down.

Fact: The Fed Does Not Set Mortgage Rates

See, the Fed doesn’t set 30-year fixed mortgage rates.  Fed Funds Rate changes are established for the sole purpose of speeding up or slowing down the US economy.  Period.  Now, it’s true that the Fed’s policy can exert an influence on mortgage rates in an expansionary economy if the following takes place:

1. Inflation reduces the Dollar’s long-term value
2. Fed Funds rate changes are implemented to contain inflation
3. The U.S. Dollar is tied directly to mortgage rates

Here’s How Florida Mortgages React to Fed Funds Rate Announcements

If the Fed releases a press release that makes reference to inflationary pressures, but the Fed makes no move to shift the Fed Funds Rate either up or down, markets will anticipate a weakening of the Dollar in months to come.  This will, in turn, erode the value of mortgage bonds on Wall Street.

Remember: Lower bond prices mean higher mortgage rates.

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Well folks – we’re going on week 2 of a scenario where Florida mortgage markets started strong and then petered out.  Ending the week short due to holiday didn’t help much and, as a result – mortgage rates were pretty much flat all in all.

Limited Economic Data Keeps Florida Mortgage Rates Stagnant

No real news to cause mortgage rates to rise or fall much last week, as what little roller coaster (up and down) action we saw hinged on two events:

1. A reputable analyst warned that banking-sector optimism may be a bit premature
2. Wells Fargo announced a record $3 billion in first quarter earnings

The banking analysis news caused mortgage rates to dip, and the the second item, in short, pushed them back up.

This Week: Data, Data, Data

Retail sales numbers will release on Tuesday. We’ve talked a great deal on this blog about the power of consumer confidence to work magic (black or white… good or bad) on financial and mortgage markets.

Tuesday – April 14, 2009

All told, consumer spending makes up about two-thirds of the US economy.  So, a lower-than-expected number reported for Retail Sales would lay a stinky wet dish rag on top of Wall Street’s current optimism for the U.S. – which would likely lead mortgage rates lower.

Wednesday – April 15, 2009

Wednesday marks the date that the government will release a much anticipated “cost of living” measurement called the Consumer Price Index (CPI).  At its roots, CPI is an inflation gauge for the economy so — because inflation is bad for mortgage rates — a higher-than-expected CPI number is expected to push mortgage rates higher.

Thursday – April 16, 2009

Thursday, we should get new Housing Starts data.  This data will tell us how many homes the nation’s builders initiated last month.  An uptick in Housing Starts may be a sign that builders are optimistic for housing — a good sign for the economy.  However, lower than anticipated Housing Starts totals may mean an increase in existing home sales activity over the next few months — also a good sign for the economy.

Financial Firms to Release Quarter 1 2009 Earnings this Week

Goldman Sachs, JPMorgan Chase, and Citigroup — three of the nation’s largest financial firms — will release first quarter earnings this week.  If these three firms post postive numbers like Wells Fargo’s did, expect mortgage rates to go higher as they did after the Wells Fargo report.   As we’ve often said, what’s good for stocks right now may prove to be bad for mortgage rates.  This is because money tends to flow out of bonds (generally safer investments) and into stocks (generally riskier investments) when the markets get hot.

Note: Goldman Sachs reports on Tuesday, JPMorgan Chase on Thursday and Citigroup on Friday.

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One of the very best opportunities today for Winter Haven, Florida home buyers is to take advantage of the excess of repossessed homes on the market.  Notably, a giant problem with these potential deals is that folks who are losing their homes due to an inability to make payments typically lack the money for routine upkeep as well.  A 203(k) Rehab Loan is one of the very best mortgage programs to use when purchasing foreclosed or bank owned properties.  Let’s take a look at some of the basics.

Standard vs. 203(k) Rehab Loans – A Basic Overview

Most mortgage financing plans allow for funding on homes in good condition.   That is, the lender will typically not allow the loan to close unless the condition and value of the property can adequately stand in as collateral for the loan itself.  Where rehabilitation is involved, your Florida mortgage lender will require the improvements to be finished before a long-term mortgage is made.

The 203(k) mortgage program (also called the 203(k) Rehab Loan Program) was designed to address situations where you may want to purchase a Florida foreclosed home or bank owned home that is in less than perfect condition.  In some cases, the home may be in absolutely uninhabitable condition.  Using the 203(k) rehab loan, you can obtain home loan financing, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of this sort of property.

Appraised vs. After Repair Value (ARV)

Unlike traditional home loans, which are based on your chosen property’s present appraised value, your 203(k) loan will be calculated so that you receive funds to cover the rehabilitation.  The actual mortgage amount is based on the projected value of the property with the work completed, taking into account how much the work will cost to contract out and complete.

To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible to be backed by the Department of Housing and Urban Development (HUD) as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established.  At this point the lender has a fully-insured mortgage loan – which is a good thing, I’m sure you will agree.

Part 2 of this series will talk more about which property types are eligible for the 203(k) Rehab Loan program.

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Florida Mortgage markets were up-and-down last week as rates slipped Monday and Tuesday before roaring higher from Wednesday through the end of last week.

In some case, after reaching all-time lows, conforming mortgage rates added a half-percent in the second half the week, destroying some homeowners’ opportunity to refinance. It was actually the 2nd week in a row that mortgage rates worsened.

One reason why Florida mortgage rates are up is actually because financiers are turning bullish on the economy, even as it struggles to get on its feet. From investors’ perspective, the info is weak, but not as weak as it’s been — or might have been.

It is a glass-is-half-full approach and it is the opposite of how the Street worked in 2008.

Looking back at last week, we can see that:

1. Consumer Confidence measured a paltry 26.0 — but the reading was up from February’s all-time lows
2. The Case-Shiller Index showed a big drop in home prices — but the report ignores strong housing data from the last 60 days
3. Unemployment rates reached 8.5 percent nationally — but employment is a lagging indicator for the economy

In time, we’ll learn if backers were on-time or premature in their gambles for a business turnaround but, for the moment, the mere belief the economy is getting better is leading mortgage rates higher. And until Wall Street’s sentiment changes, rates should continue in that way.

This week, there will not be much opportunity to change traders’ minds. Second , there’s only one release of importance to markets — Wednesday’s release of the March Fed Minutes.

Mortgage rates may not rise for the 3rd week in a row this week but long term momentum is working against rate clients. If you see a rate you like, consider locking it.

As always, if you need a local Winter Haven area mortgage broker to watch the rates for you, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

(Image courtesy: The Wall Street Journal Online)

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The Florida mortgage market will see some activity this week.  There aren’t too many scheduled economic reports to talk about this week, but don’t expect the rest of the news to be quiet. First quarter earnings season begins, and while the change to mark-to-market take effect for the second quarter, it can be applied to first quarter earnings. In fact, rumors are already swirling that the change in mark-to-market will boost earnings of banks by 20% or more for the first quarter.

In addition, the US is prepared to sell an estimated $59 Billion in notes and inflation-indexed securities this week, and it will be important to see what impact that supply has on Bonds and home loan rates. And as we continue to watch the labor market, it will also be important to keep an eye on Thursday’s Initial Jobless Claims report to see if the news is good, bad, or ugly.

But remember: Strong economic news will likely cause Stocks to move higher, and Bonds and home loan rates may worsen in response as we saw last week. As you can see in the chart below, Bonds worsened on the heels of last week’s positive mark-to-market ruling, as well as Friday’s Jobs Report failing to meet the worst fears.

Rates remain near historic lows, but last week, Jack Koskinen, interim chief executive of Freddie Mac, said that he feels home loan rates are near a bottom. We should talk to discuss if the current rates may present an opportunity for you or someone you know.

As always, if you need a local Winter Haven area mortgage broker to watch the rates for you, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

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• MetroI4News.com – Winter Haven Florida Housing Report for February 2009 (metroi4news.com)

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Winter Haven, Florida mortgage markets rallied to near record lows last week, thanks to the Federal Reserve’s pledge to buy $750 billion more mortgage-backed bonds in 2009.  (The stock market didn’t do too poorly today either, thanks to Uncle Ben and Mr. Geithner’s gang!)

Conforming mortgage rates fell on the week, overall.

But wait, there’s more!  New evidence showed that the U.S. economy may, and I stress may, be reversing direction, thanks to:

• Homebuilders ramping up with home starts
• A decline in in first-time jobless claims
• Inflation rearing it’s noggin’ – showing deflation the door

If the economy can maintain an upward trend through this summer, it will likely fuel stock market gains, drawing cash away from mortgage bonds. This would lead mortgage rates higher — perhaps for good.

Today’s Florida mortgage rate are artificially low, to be sure — supported by government intervention rather than measurable economic fundamentals. After Uncle Ben and Company’s Wednesday afternoon announcement, rates fell to all-time lows before recovering sharply (see my G.I. Joe Post on What to Do when Rates Nosedive) into the weekend on economic optimism and fears of inflation.

U.S. Economic Trend May Continue This Week

In addition to the economic data set to be released this week, the U.S. government unveiled its toxic asset plan today. Wall Street LOVED… like… OMG… REALLY LOVED what the Geithner Gang had to say today.  We know this, of course, because all key stock indices gained around 7%, with the Dow Jones index jumping nearly 500 points to close at 7,775 – its highest level in more than a month.

Some of the week’s key events include Monday’s Existing Home Sales report, Wednesday’s New Home Sales report and Friday’s consumer spending report, as well as President Obama’s Tuesday evening address to the nation.

Florida mortgage rate volatility will continue to stay very high from day-to-day and even from hour-to-hour. If you’re shopping for a new home loan and find a mortgage offer that “fits,” consider locking it right away. With so much news hitting the wires this week, the rate quote is likely to expire quickly.

As always, if you need a local Winter Haven area mortgage broker to watch the rates for you, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

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The Market Conditions Addendum to the Appraisal Report (Form 1004 MC) is coming, and many appraisers are searching for ways to complete it online or at least via a spreadsheet program like Microsoft Excel.   If the 1004 MC is news to you, it’s surely not news to the appraisers you use.  In fact, the 1004 is pretty much the main topic of interest around the Appraiser’s Water Cooler.

I’ll go over some of the basics about the 1004 MC here, and I’ll try to lead you to a few resources that might provide some additional information.

Why is Fannie Mae Requiring Form 1004 MC?

Sometime around mid November 2008, Fannie Mae announced that it would begin requiring Appraisers to submit a Market Conditions Addendum to the Appraisal Report (Form 1004MC) with each and every appraisal they complete.

Basically, Fannie Mae purchases or securitizes mortgages in all markets and under all market conditions.  When lenders run out of money to lend, they bundle up mortgages and sell them to Fannie Mae (as well as Freddie Mac) who then turns these “bundles” into Mortgage Backed Securities to be purchased on the stock market.

Needless to say, Fannie wants to over its “Fannie” by making sure that the mortgage they buy up are worth the paper they’re written on!  Form 1004 MC, and the market conditions it requires appraisers to document, is to be the tool appraisers use to make sure that their valuations hold up.

OK. So, Form 1004 MC Helps Appraisers Back Up Valuations.  But How?

When I first wrote about the Market Conditions Addendum to the Appraisal Report, I mentioned that it will be required on all Florida appraisal reports for single to 4-family home loans dated on or after April 1, 2009. However, as explained, a good number of appraisers and lenders are asking for the information found on the 1004MC now!

Basically, the 1004MC asks for more information about market trends, supply and demand, marketing times, prior listings, and the like.

The Market Conditions Addendum FAQ provided as part of my earlier post takes care of a lot of the main questions folks have about it.  So, be sure to check it out. I’ve provided answers to some of the questions I’ve been asked most about the 1004MC.   I hope they help to clear some things up for everyone.

Doesn’t the 1004 MC Just Mean More Work for Appraisers?

For some, yes.  However, long-time Appraisers like Brian Davis, have been collecting the data and performing trend and market analysis as part of their standard appraisal efforts for a long time now.

I popped in over at the Appraisal Water Cooler today and caught a few of the Pros talking shop about the 1004 MC.  Here’s what some of them had to say…

Reply by Bill Cobb on November 15, 2008 at 8:46am

Brian, I attached the draft I was sent in August 08 (the whole page). When looking at all of the detail of this new form, it would take at least 1 hour to fill out just this form. Not to mention that lenders and AMCs have demanded we add more market analysis, 2-3 listings adjusted to list-2-sales price ratios with listing photos, much more commentary on the reconciliation section, etc.

All of these add-ons are adding 1-2 extra hours to complete this thorough of an appraisal report. MY BEEF is that they don’t want to pay a dime more for all of this extra work and time.

Reply by Brian Davis on November 15, 2008 at 9:05am

Bill – Thanks. I also provided a link to the final document (bottom of original post). I’ve also uploaded the announcement pdf as well as Fannie’s FAQ sheet on the new form.

Over my career, I’ve seen many of these initiatives. Most often it’s a reaction to appraisers not doing what they should have done in the first place.

I can remember when we did not have to include photos of the comps. Why? Because it was presumed that all appraisers were doing their job and were at least driving by them. To make SURE . . . they began requiring photos. It was their insurance that we HAD visited the comp.

There’s case after case of that happening. More recently we’ve been required to report on the historical sales and listings of the subject and comps. YEAH . . . we should have been analyzing that all along . . .but many were not. NOW . . .we’re all required to “report” that analysis.

That’s what I see in this latest Addendum. Because they feel that many appraisers were not doing the proper analysis . . .we now have to “report” those findings.

I agree . . . It take a LOT longer to “Report” those findings than it takes to just do the “Analysis”. Primarily because we have to get it into THEIR format and not just a series of MLS, Assessor, or personal charts and graphs.

So, we can see that appraisers are looking at this much as any other professional might.  Most of them have already been doing the work that a few of them look at as “extra,” so no big deal there.  It’s just a pain to get the analysis into the format the lenders are looking for.  I imagine I’d share that sentiment.

What are Some Solutions Out There to Make Completing the 1004 MC Online a Possibility?

I can’t imagine what it would be like to take paper and pen mortgage applications every time I interviewed a new applicant.  Luckily, I don’t have to.  Whether in person or by phone, I can easily use my Encompass software to get the job done swiftly and professionally.  Obviously, it also helps that I provide a way for customers to securely apply online for a Florida mortgage with a few easy clicks and some keystrokes.

But are their online 1004 MC solutions out there for Appraisers to use?  You bet.  Here are a few I’ve found.  If you know of any more – please share.

1004MC Total Solution©

It’s no secret among Appraisers that Brian Davis, over at the AppraisalScoop blog, is one of the top authorities on pretty much all things “appraisal.”  If you’ve spent any time at all on his site, you’re now very aware of an electronic 1004 MC solution that is aptly named “The 1004MC Total Solution©.” Devised by Automated Valuation Technologies, Inc. (AVT), this solution claims to streamline the various trending and analysis tasks required to complete the 1004 MC, running on the popular Microsoft Excel (2003 or 2007) spreadsheet platform.  My guess is that if it’s sold at ScoopGear.com and backed by Mr. Davis – Florida appraisers concerned with completing the 1004 MC correctly should most definitely check it out.

MLS_Analyzer^TM

I found the MLS AnalyzerTM through surfing around on Appraisers Forum for news about how appraisers are dealing with the 1004 MC.  According to the site, GeorgiaAppraiser.com, MLS AnalyzerTM MLS Analyzer analyzes downloads from various MLS services and provides appraisers with the appropriate entries for the FNMA 1004MC.

I don’t know much about this provider.  Perhaps some of you can help out by way relaying your first hand experience with it.

S.M.A.R.T. APPRAISER

Billed as “The Best Fannie Mae 1004MC Solution,” the creators of the S.M.A.R.T. Appraiser claim that it allows a real estate appraiser or an agent to define the market (i.e. zip code, city, or by geographical boundaries) and download all activity for the previous 3 years.

They also claim that it allows you to breakdown and analyze 1,000′s of records with a few clicks – as the software converts MLS data into “drill down” graphs and pre-populates and creates the new 1004MC automatically.

As with the previous software solution, I don’t know much about this provider.  Any insight you might provide is greatly appreciated.

Final Thought

I’m sure the 1004 MC means a bit of extra work for appraisers, and I empathise with the fact that extra time and effort tends to translate into higher labor costs.

There do seem to be some viable tools out there to assist appraisers with the completion of Form 1004 MC.  I do know this – if I’m paying for the appraisal, I hope the appraiser is using something to speed up to process (and still do a solid job, of course), as many out there are already stating that without an automated solution, the work required to complete the 1004 MC may cause prices may go up by as much as $150.

Related article

• Appraisers brace for industry change (appraisalnewsonline.typepad.com)

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Florida mortgage rates should remain low, as the Federal Open Market Committee (FOMC) voted to leave the Fed Funds Rate right where it’s been, within the target range of 0.000-0.250 percent.

That said, the Fed was far from inactive today.

On plan to resurrect the economy using “all available tools,” today, Uncle Ben and company announced a new, $1.5 trillion round of financial support for mortgage markets and the US Treasury. We’ll likely read about this in tomorrow morning’s headlines.

In its press release, the FOMC highlighted several economic issues, using them as proof of why this new round of funding is required:

• Consumer spending (and confidence) is taking a BRUCE LEE-style beating from job losses and wealth loss
• Some U.S. trading partners are falling into recession – no, we’re not the only ones hurting, folks.  China – for one, has expressed zero interest in lending  a helping hand at this point.  They have loads of US paper right now as it is.
• Businesses are cutting back on investment and inventory

Of interest is that the FOMC said today’s inflation levels may be too low to support any economic growth whatsoever.  If this is the case, it would mean that we’re entering into a period of deflation.  The Fed’s latest actions, therefore, may be a deliberate attempt to induce inflation (pump things back up) through unprecedented borrowing.

For home buyers and potential refinancers, the news is a bit brighter — at least for now.  By spurring increased demand for mortgage bonds, the Fed will help push mortgage rates lower.  Already this afternoon, mortgage rates fell and they will continue to fall until the market reaches a new leveling point.

Keep your eyes on mortgage rates. After the Fed’s last intervention, markets reached their balance point in about a day-and-a-half.

Source
Parsing the Fed Statement
The Wall Street Journal Online
March 18, 2009

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Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

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The Florida mortgage landscape may shift a bit here shortly as  Obama’s home affordable modification program, titled “Making Home Affordable,” sets to take hold on April 4, 2009.

The authors of the Making Home Affordable program legislation hope to provide help to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to ward off the destructive impact foreclosures are having on families, communities and the US economy.

How the Making  Home Affordable Program Will Work

The Home Affordable Refinance program will work on two fronts.  First, it will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac.

Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%.

Under the Home Affordable Refinance program, many of these homeowners will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed-rate loan.

The second area of focus for the Making Home Affordable program will be helping up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments.

Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department recently announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications.

Note: This program will work in tandem with an expanded and improved Hope for Homeowners program.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.

No Documentation Overload This Time

If you’re thinking of applying for this program, take heart.  Your lender or mortgage servicer should already have much of your information on file, so you most likely won’t be overburdened with documentation requirements. In addition, you may – in some cases – be able to avoid paying for a new appraisal. This flexibility should make your refinance quicker and less costly for all parties concerned.

Take your time to figure out if you qualify, but do know that the Home Affordable Refinance program ends in June 2010.

Eligibility and Verification

• Loans originated on or before January 1, 2009.
• First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
• All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
• Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
• Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
• Modifications can start from now until December 31, 2012; loans can be modified only once under the program.

If you’re in trouble with your Florida mortgage and feel that you need immediate help or advice, please give me a call at 863-604-3019.  I have several ideas that should offer you some comfort, and my proven contacts in the real estate industry are waiting to help you and your family during what can be a very difficult time.

Related articles

• Treasury Loan-Modification Guidelines (blogs.wsj.com)
• Mortgage help: Do you qualify? (money.cnn.com)
• What is U.S. Treasury mortgage modification program? (ceoworld.biz)

Apply for a Florida  Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

Technorati Tags: Fannie Mae, Federal Housing Administration, Florida, Florida Mortgage, Freddie Mac, loan, Loan to value, Making Home Affordable, Mortgage, Real Estate

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