FHFA increases conforming loan limits for 2nd straight year

Last year, the Federal Housing Finance Agency increased the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac for the first time since the housing crisis. And now, the FHFA is doing it again. For the second year in a row, and the second time since 2006, the FHFA is increasing the conforming loan limits for Fannie and Freddie in 2018.The FHFA announced Tuesday that it is increasing the conforming loan limits from $424,100 to $453,100 for 2018. The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price d

Credit Inquiries do They Really Hurt my Score? Credit Lock vs Credit Freeze

Anytime you apply for new credit, you give the lender permission to request a copy of your credit report from a credit reference agency. If you check your report after these inquiries have been made, you will find a list of inquiries even if you don’t take out the credit. The good news is that the only inquiries that impact your FICO Scores are when you make several applications within a short period of time. How Will Credit Inquiries Affect my Score? If there is a change in your score it won’t be significant. If you apply for several lines of credit within a short time frame, these inquiries will be recorded on your credit report. Searching for new credit can be risky depending on the type

The Home Prices of Today vs Prices of Yesteryear

Anyone with grandparents has heard tales of $5000 homes, of entire mortgages totaling but a fraction of today’s smallest down payment, of stand-alone single-family homes that may cost half a million dollars today that first sold for less than the average high schooler’s first vehicle. But what did these seemingly miniscule home prices mean compared to the average income of that time? Lenders today would be wise to educate themselves on historical home prices in comparison to household income, as these figures show trends in past years and could serve to predict trends in years to come. In the past 20-30 years, home prices have risen in comparison to average household income. As the graph bel

Pumpkin Pie Martini

When the leaves begin to turn their autumn colors, all thoughts turn to pumpkin. In the drink world, that includes the pursuit for the perfect Pumpkin Pie Martini. When that craving for all things pumpkin hits, you'll love this delicious RumChata recipe. The creamy liqueur is the ideal foundation for a sweet cocktail like this. It also pairs perfectly with the vanilla vodka and any pumpkin liqueur you can get your hands on. In all honesty, RumChata's Pumpkin Pie Martini is probably the best recipe you'll find for a "pumpkin martini." It seems as if the real dairy found in the liqueur has been the missing ingredient all along. Consider your hunt for a truly great pumpkin cocktail over. What Y

Property Appraisals for Mortgages (for your homeowner / refi clients)

Applying for a mortgage to purchase a new home or seeking to refinance your existing mortgage can be a tedious process. One of the requirements of these two procedures is the appraisal, which is basically a detailed report which determines the overall value of your home after considering a number of valuation factors. The appraisal is conducted by a licensed appraiser who will be assigned by the bank or the lending institution. The loan officers (and mortgage department) is prohibited in pretty much all cases to communicate directly with the appraiser. Management on both sides of these 2 entities schedules, reviews and delivers the appraisal once it is complete. Factors that an Appraiser Co

Originate More Loans With the Latest Mortgage Software

As a mortgage loan originator, you have a dynamic job; there are hundreds of small details to be handled on any mortgage loan. Luckily, consumer loan software technology is making it easier for each of your loans to flow smoothly from application through underwriting and on to the closing table. The right mortgage loan software makes your job less stressful and your results more fruitful and efficient, ultimately putting more clients into homes and making your business more profitable. Your LOS has missed the mark on the the 1003 itself from all angles. PerfectLO was built and designed by mortgage pro's that truly understand the process and what really matters in the details of the questio

Help me help you: Credit Do’s and Don’ts for your clients

While as a Loan Originator you’re not a credit repair professional, yet you’ve still run into the question “What can I do to fix my credit?” from your clients. You’d like to offer them sound advice so they can improve their credit profile and qualify for the best pricing and loan products. What should you be educating them about when it comes to their credit? The first piece of information your client wants is a copy of their credit report. If your company allows you to securely share the complete report with your clients, do this right away. If not, everyone is entitled to a free report from all three bureaus each year. Have your client obtain their report from www.annualcreditreport.c

Multi-Language Mortgage Application Software

Today, the average mortgage loan takes 49 days to close. Blame these underwriting delays on missing paperwork, credit disputes and other delays that can significantly lengthen the underwriting process. However, at the root of most delays and unexpected issues in the mortgage process are communication issues. As a loan officer at a bank, you're familiar with the fact that your clients don't complete mortgage applications on a daily basis. Even when a client is a native English speaker, the complicated nature of home financing is conducive to errors. When a client's first language isn't English, the risk of errors can be exponentially higher. Making Error-Free Mortgage Apps Easier Instead of h

New Changes to HMDA Proposed by CFPB - What they Mean for You

Are we having fun yet? One hand is started to loosen and then the other is starting to tighten. Regardless these fun filled awkward questions regarding your borrowers "demographics" are not going away and about to be a bit more complex. Not too long ago, the Consumer Financial Protection Bureau had issued a proposal in an attempt to clarify the updates to the HMDA rules made in 2015. This action was taken to help ensure nationwide industry compliance and improve the quality and type of data that’s reported to financial institutions. Technically, the CFPB had given the industry three years to be compliant since the updated requirements would come into full effect by January 2018. The new HMDA

When is a Reverse Mortgage the right choice for borrowers?

Reverse mortgages are also known in the industry as Home Equity Conversion Mortgages (HECM) and they allow homeowners aged 62 and older to convert the equity in their home into tax-free income (primary residences only, please). Retirees often rely on fixed-income sources once they’ve left the workforce and a reverse mortgage can reduce their risk of outliving their savings and investment account balances. In the past, these types of loans were relatively expensive and only made sense if the borrower was facing financial hardship. This is no longer the case however, and the Financial Industry Regulatory Authority Inc. (FINRA) notes that reverse mortgages can help seniors manage their financ

The Millennial Mortgage Boom: How to Reach & Speak to This Growing Generation of Homebuyers

The Millennial Mortgage Boom The millennial population is about to make up a significant part of the home buying power in the nation. This growing generation of homebuyers millennials make up a large part of the purchasing power in the United States, and they have their sights set on new heights: home buying. As young professionals under the age of 35 move into the workforce and develop necessary means, they seek information on how to purchase their first home. TransUnion correctly estimated millennials will make up the majority of first-time homebuyers in 2017, and that trend will continue into 2018. In order for mortgage brokers to effectively provide service for these young dreamers, they

APR: Short, Simple & Successful Tips

Whenever you quote a rate, post rates, talk about rates you are also required to post the APR associated with that rate with your assumptions (LTV, FICO, Loan amount). You need to keep your APR within .125% of your original disclosures or someone is going to make you re-disclose prior to closing and perhaps delay your closing. Many of your disclosures display the "APR", therefore you should be able to explain it. I read some recent posts on some LO chat groups on how to deal with and explain APR. Here were some of the comments: Who cares? It means nothing? If you need to explain APR you are wasting your breath and sales efforts. I just tell people it's required, confusing and meaningless. Wh

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