Mortgage Origination Mastery – 20-hr NMLS Class

with Mortgage Expert Chip Cummings

Wed-Thu Sept. 8-9

10:00am Eastern (7:00am Pacific)

20-hr NMLS-approved training

CLICK HERE FOR DETAILS OR TO ATTEND

This session will come complete with study manual and hundreds of actual sample test questions!  Approximately 1/3 of ALL originators are FAILING the test – and only 56% pass it the SECOND time!  If you’re just looking for a quick ONLINE Exam Prep tool – then this is perfect.

For those in the world of FHA (or looking to enter it), I am also conducting another special 6-hr. session for certification:

ABC’s of FHA Lending!

with Chip Cummings

Mon-Tue Sept 13-14th

12:00pm – 3:00pm Eastern

6-hr. training

CLICK HERE FOR DETAILS OR TO ATTEND

This session will help you get approved with lenders from around the country, and give you a jump on the competition.

Upfront Premiums

Effective for FHA loans for which the case number is assigned on or after
October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.

• The upfront premium for Purchase Money Mortgages and Full-Credit Qualifying Refinances will be 100 BPS
• The upfront premium for Streamline Refinances (all types) will be 100 BPS

Annual Premiums

Effective for FHA loans for which the case number is assigned on or after
October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:

For Loans with terms greater than 15 Years, and:

• Loan to Value Equal to or less than 95 percent the annual premium will be 85 BPS
• Loan to Value greater than 95 percent, the annual premium will be  90 BPS

The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.

For Loans with terms equal to or less than 15 year, and:

• A loan to value equal to or less than 90 percent there will be NO annual mortgage insurance premium
• A loan to value greater than 90 percent, the annual mortgage insurance premium will be 25 BPS

Cancellation of FHA’s Annual Mortgage Insurance Premiums

The cancellation policies defined in Mortgagee Letters 2000-38 and 2000-46 remain unchanged.

Originators are in the cross hairs of Fannie Mae and Freddie Mac, and even FHA, as they look for scapegoats to explain all the bad mortgages on the books.

Here is an article from the Wall Street Journal explaining the problem.

Banks Face Fight Over Mortgage-Loan Buybacks

FHA/FAQs Hot Topics

August 24, 2010 – Webinar:  This FREE Webinar will provide clarification to current hot topics & frequently asked questions in today’s FHA lending environment. Ideal training for Underwriters, Processing Staff & Loan Originators. Registrants must have internet access. ALL TIMES ARE MDT. Registration required, no fee. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=561&update=N

FHA Refinance

September 9, 2010 -  This free training will help you better understand the FHA Refinance general guidelines. Topics to be discussed will include; Recent Updates, Streamline Refinances, Cash-Out & Rate & Term Refinances with an emphasis on changes to the Streamline Refinance guidelines. Registration required, no fee. All times are mountain daylight time. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=581&update=N

FHA Connection Part I

September 14, 2010 -  This free training will benefit Underwriters, Processors, Loan Originators & FHA Connection Coordinators. An overview of the FHA Connections system to include: Case number assignments, Appraisal Logging, Insurance Application, Coordinator privileges, overall lender functions, & case number queries. Registration required, no fee. All times are mountain daylight time. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=582&update=N

FHA Connection Part II

September 15, 2010 -  This free training will benefit Underwriters, Processors, Loan Originators & FHA Connection Coordinators. The training should increase proficiency with an overview of FHA Approval Lists, Origination Reports, Housing/HECM Counseling, UFMIP, Neighborhood Watch functions, & case number queries. Attendees must have internet access. Registration required, no fee. All times are mountain daylight time. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=584&update=N

FHA Mortgagee Letter 2010-23 – FHA Refinance of Borrowers in Negative Equity Positions:

Starting September 7, 2010, FHA will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgages and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.  To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. You can read Mortgagee Letter 2010-23 online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

Treasury’s Supplemental Directives to second lien investors for the incentive payment can be read online at:

https://www.hmpadmin.com/portal/programs/directives.html and  https://www.hmpadmin.com/portal/programs/hamp/servicer.html

The power point presentation for this webinar can be downloaded at: http://www.hud.gov/offices/hsg/sfh/fhaneq081210.ppt

Directions to Join the Live Meeting Webinar:

Step 1 – Access the Live Meeting Webinar Site to view the presentation:

• Go to the live meeting link at: https://www.livemeeting.com/cc/hud/join
• A new window will open.  Enter the Meeting ID: fharefinance
• Leave the Entry Code field blank.
• Click the “Join” button

Step 2 – Dial the telephone number provided below to get connected to the audio portion.

• Dial-in Number: (866) 757–6799,  The conference ID # is: 93804842

Please note:

• The audio conference will be recorded.
• We encourage industry groups and lenders to call in from a central location, because there are a limited number of lines associated with this conference call.

Tuesday, August 10, 2010

Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010.

Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.

Here are some of the highlights of the analysis:

Currently, there are 555,000 FHA-insured homes which are delinquent 90 days or more. This figure has been rising steadily for three years… The cure rate for seriously delinquent mortgages has plunged to roughly 1%. This means that 99% of these delinquent mortgages are headed for default and then either foreclosure or short sale… Considering the rate at which FHA mortgages are now becoming delinquent, there will be more than 700,000 seriously delinquent FHA mortgages within a year. … By the beginning of 2011, U.S. taxpayers will be fully at risk for more than $1 trillion in FHA insured mortgages.  Sooner or later, the banks will have to foreclose and convey to the FHA the 550,000 homes that are currently seriously delinquent.  These houses will be then be added to the 44,000+ homes now in the FHA’s inventory.  Within a year, the number of FHA-insured homes in default or in its inventory could exceed 700,000.  What will the FHA do then?

To view the original article, click here. I’d love to hear your thoughts on the issue.

According to FHA Commissioner David Stevens, FHA will change the mortgage insurance premium rates for loans closed on or after September 10, 2010. The changes are expected to be as follows:

• The FHA Upfront Mortgage Insurance Premium will be lowered from 2.25 percent to 1 percent. This will mean that for a $200,000 FHA insured mortgage the UFMIP, which is normally added to the loan amount at closing, will drop from $4500 to $2000. At today’s interest rates this would lower the borrower’s monthly principal and interest payments by only a very small amount. This savings would be more significant the longer the borrower kept the original mortgage.

• The annual FHA mortgage insurance premium will be increased from .55 percent of the outstanding loan amount to .85 to .90 percent. On the above mentioned $200,000 FHA insured mortgage, this would raise the borrowers’ monthly mortgage insurance payments by as much as $58.33.

Saving the FHA Mortgage Insurance Fund?

According to FHA Commissioner David Stevens, this change to the FHA annual mortgage insurance premium is expected to yield approximately $300 million PER MONTH to the value of the FHA Mutual Mortgage Insurance Fund. Surprisingly, this fund has been increasing lately in spite of the treacherous economy. This change should insure that the fund remains strong in spite of the fact that the really smart economists expect the economy to continue to falter and possibly even collapse further. FHA has remained one of the few government programs which has actually remained solvent so far.

Although getting rid of the bad actors in the mortgage business is a good thing, customers can expect ever increasing difficulty in getting approved for a mortgage and also higher costs and interest rates as many good loan officers are driven out of the business along with the bad.

Here is the full text of the news release:

This FREE Webinar will help you better understand the FHA Refinance general guidelines. Presenters will discuss Streamline Refinances, Cash-Out, & Rate & Term Refinances.

Basic calculations will be included in this training for anyone wanting to improve their knowledge of FHA refinances. An emphasis will be on the changes to the Streamline Refinance guidelines.

Registrants will receive an email confirmation prior to the webinar with a web link, a toll-free dial-in number, & instructions for participating in the training. Registrants must have internet access. All times listed on the registration are mountain daylight time. Registration required, no fee.

More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=550&update=N