September 17, 2021

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Mortgage News

ADUs and IRA home loans are hot topics – San Bernardino Sun

Nothing beats writing a mortgage column in a big city newspaper. Can you believe it was 10 years ago?

In addition to my weekly concern about whether my editors (and you) will like my offer, I get a lot of feedback from readers about my column. Usually: “Thank you. I didn’t know anything about it. “Or it” You have your head in your -ss. I don’t know what you’re talking about. ” I am grateful that there are more comments than the latter. But I get both.

The following are the top 10 things we’ve done since we started this column in August 2011.

1) Fannie Mae has developed an automatic rating system called a collateral insurer. Launched in 2015, I think it’s an extraordinary invention.

automation The system (along with Freddie Mac’s credit mortgage advisor) speeds up valuation decisions and saves borrowers about $ 600 in valuation fees when a property review exemption is granted. It’s also an excellent human valuation asset and quality tester.

My 2 cents: Why can’t Fannie Mae and Freddie May develop an automated process to discard the borrower’s income document? Data giants can easily and accurately set the salaries of most people. Government agencies can combine proximity income with equity / down payment indicators. As a result, income is less accurate for high-equity borrowers. To love peace, this can speed up the loan approval process. Nobody leaves the property with a 30% deposit.

2) Oh, the moment was for me to learn what IRA funds can do. Yes, you can purchase rental with IRA funds for a down payment. There are lenders willing to take out a mortgage on your IRA rather than directly. Many readers have told me that they implemented this funding mechanism because they did not have enough money outside of their retirement account.

3) People in the mortgage industry, government officials, and even consumers can lie to me. A senior executive at a large mortgage lender wanted to promote his business with a particular loan program. He stated that his company had managed to end the exclusive contract between Fannie Mae and Freddie May. Neither fans nor Fred confirmed the deal. The story was never carried out.

My newspaper boss always said to me, “If your mother says she loves you, check it out.”

4) Grandma’s Apartment or Attached Dwelling Unit Act in 2020 was probably the most serious column series I’ve written. (Column published in December 2019). Simply put, California law has removed a lot of the red tape from the process of people adding housing to their property. Compensating for the housing shortage is one of the very good answers.

The law also gives property owners the option of making it easier for their families to evacuate or granting rent as a grant. To this day I have received calls from people who want to know more about the building process of the ADU.

5) I love hints. I’ve written a lot of columns thanks to the people who told me the story. The best I ever heard was from an industry rep about a lender who had monopolized the cooperative mortgage loan at Laguna Woods Village for nearly a decade. Despite all the turmoil among the Laguna Woods cooperative owners, Laguna Woods still has only one cooperative lender today.

6) In 2011, the day after the Great Depression, mortgage brokers held less than 5% of the mortgage and refinance loan market share. (Full disclosure: I am a mortgage broker.) The broker was primarily blamed for the mortgage crisis. Can you call it a “scarlet letter”?

According to a consumer survey jointly published last week by the Consumer Financial Protection Bureau and the Federal Housing Finance Agency, 46% of consumers applied to buy a home through a mortgage broker in 2019. 38% applied for the broker at the time of refinancing. Talk about the return from death!

7) Nothing makes a column better than an expert in the field. My Rolodex has several names. (Yes, old school has two people sitting on the desk).

Dave Stevens, former FHA commissioner and former chairman of the Mortgage Brokers Association, is a bionic brain of subject matter experts. He understands the problem and knows politics like anyone else. He is clear and thoughtful.

Real estate attorney Mike Hensley along with CPA Jeff Hypshman, Warren Hennagin, and Marcelo Sloca have been a great resource in enlightening me and you. And generous. Every week readers call me or email me some awkward column questions. Countless questions have been answered for free by these respected people.

Nobody thinks much about property titles until they run into problems. Glenn Towerkamp, ​​Vice President of Lawyers Title Insurance, has been quoted in these columns for years. And it was a walking information encyclopedia for readers who were always preoccupied with solving their complex title problems. Unfortunately, I have to say that Towerkamp died suddenly last weekend.

8) It can be difficult to be on the side of a media company. The bravest, toughest, and most professional press I’ve ever dealt with is Tom Goida, Senior Vice President of Media at Wells Fargo Bank. Perhaps more than any other banker, I have asked Tom many difficult questions over the years about Wells Fargo’s various practices and customer concerns. He’s a professional

Goida has always investigated and responded to complaints as quickly as I consulted Wells officials on hot topics. He’s always as calm as a cucumber.

9) There are many considerations involved in forecasting home prices and interest rates. It can be even more difficult to express everything in plain English. Sources of my favorite experts are Dr. Raymond Sfire of Chapman University; Jordan Levine, Chief Economist, California Real Estate Agents Association; and Tendai Cafize, Chief Economist, Lending Tree.

Additionally, data companies Attom Data Solutions, Black Knight and Steven Thomas of Reports on Housing offer amazing insights into the housing and mortgage market in the same space.

10) Mortgage Congresses and Conferences have lots of action and columnar feed. Surprisingly, Angelo Mojiro, the former CEO of the failed Country Wide Financial (think mortgage meltdown day) was invited to a mortgage conference a few years ago. He received a standing ovation from most of the audience. Boy it was a fun column to write.

Freddie Mac Rate News

The 30-year fixed rate averaged 2.77%, 3 basis points lower than last week. The 15-year fixed rate averaged 2.1%, unchanged from last week’s all-time low.

The Mortgage Bankers Association reported that the volume of mortgage applications was down 1.7% from the previous week.

Graduation: Assuming the borrower receives an average 30-year fixed rate on an adjusted loan of $ 548,250, the payments last year were $ 32 more than this week’s $ 2,244.

What I see: On-site, qualified borrowers can get the next fixed-rate mortgage at the price of 1 point: 30 years FHA 2.125%, 15 years conventional 1.875%, 30 years conventional 2.375%, 15 years traditional high balance ($ 548,251 to $ 822,375) is 1.875%, 30 -year traditional high balance is 2.625%, 30-year fixed jumbo is 2.75%.

This week’s notable loans: 2.375% 15 year fixed rate mortgage with no closing costs.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or [email protected] website www.mortgagegrader.com..

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