closewithpam

Why Every City Should Consider ADUs

Tue, 14 Feb 2023 21:02:58 GMT

Accessory Dwelling Units (ADUs) are small, separate living spaces that are built on the same property as a single-family home. They have gained popularity in recent years as a way to provide additional housing options in urban areas. In this article, we will examine how ADUs can benefit cities, including through increased revenues, multigenerational living, vacation and rental opportunities, and increased security.

ADUs Increase Revenues For Cities

One significant advantage of ADUs for cities is the potential for increased revenues. Because ADUs are separate living spaces, they can be rented out to generate additional income for the property owner. This can be especially appealing for homeowners who may be struggling to afford the mortgage on their primary residence. By allowing ADUs, cities can tap into this potential new source of income and potentially increase their own revenues through property and other taxes.

ADUs Encourage Multigenerational Living

ADUs can also provide a space for extended families to live together, encouraging multigenerational homes. This can be especially beneficial for families with aging parents or adult children who may not be able to afford a separate residence. By allowing ADUs, cities can support families in staying together and provide a more affordable housing option.

ADUs Add Vacation And Rental Units

In addition to providing additional living space for extended families, ADUs can also be used as vacation or rental units. This can be a great opportunity for homeowners to generate additional income by renting out their ADU to travelers. For cities, this can provide a new source of tourism revenue and can help to support local businesses.

Increased Security Of ADUs

Another potential benefit of ADUs is increased security. Because ADUs are often occupied by family or friends of the property owner, they can provide an additional layer of security for the neighborhood. This can be especially appealing for homeowners who are concerned about their safety or the safety of their property.

Common Misconceptions About ADUs

Despite the many potential benefits of ADUs, there are still some common misconceptions about them. Some people may believe that ADUs are inhabited by unwanted residents or run by slumlords, but this is not necessarily the case. In most instances, the owner of the property lives next to the ADU and takes care of its maintenance. Additionally, most ADUs are occupied by people who are known to the landlord.

How Fannie Mae And Freddie Mac Support ADU’s

Fannie Mae and Freddie Mac support ADU (Accessory Dwelling Unit) financing by offering unique mortgage products. Freddie Mac even offers their existing CHOICERenovation mortgage that allows an option to use a no cash-out refinance mortgage to pay off short term financing used to add on an ADU. This can help borrowers who are looking to refinance their cost of construction of an ADU paid upfront.

What City Planners And Developers Can Do To Learn More About ADUs

ADUs can provide many benefits to cities, including increased revenues, multigenerational living options, vacation and rental opportunities, and increased security. While there may be some misconceptions about ADUs, the reality is that they can be a valuable addition to communities and should be considered as a viable housing option.

If you are a city planner or developer interested in learning about unique financing for ADU’s that can benefit your city, contact Pam and her team at 727-534-3445 or visit their website at https://www.closewithpamandtara.com/ for more information.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Down Payment Connect is a Game Changer for Mortgage Loan Originators

Fri, 27 Jan 2023 11:28:23 GMT

Mortgage Loan Originators, Realtors and HUD Housing Counselors Who Need to Find and Promote Down Payment Assistance (DPA) to Clients Need this Tool!

Downpaymentresource.com is a free public-facing website that offers prospective home buyers the ability to find down payment assistance programs they may qualify for. But did you know that there is a back-end tool called Down Payment Connect that mortgage loan originators (MLO), Realtors and HUD housing counseling agencies (HCA) can use to find nearly all down payment assistance (DPA) programs in the United States?

There is a monthly fee for this tool, but having this comprehensive, up-to-date information about each DPA program in the same place with filters now available to drill down precisely for client and property criteria has just made getting DPA easier for prospective buyers!

MLOs often share a reluctance to dive into DPA products citing bad experiences they’ve had in the past. Others feel matching the 1st mortgage criteria with the DPA criteria is too cumbersome. But the growing need for down payment assistance has moved to the top of the list of what clients need to purchase a home. Let’s get right into how this invaluable tool can help!

MLO Promoted as DPA Originator

Mortgage loan originators (and Realtors) that sign up as a subscriber receive a landing page through Down Payment Connect that can be linked to your personal website. On this landing page, a subscriber MLO can select the DPA programs they can originate and only those programs show up to potential clients. Marketing resources including social media, live and recorded webinars, articles about DPA to post, videos and even reporting that shows how many visitors have visited your landing page are all provided.

Highlights In DPA Directory

The most important tool in Down Payment Connect (to me) is within the DPA Directory located on one of the eight buttons subscribers see once logged in. This button opens to your selected DPR (state) Program Directory (shown below) that houses hundreds of DPA programs and provides a consistent overview of each program page in the same order.

On the DPR (state) Program Directory:

Type lets you know if the DPA is a 2nd mortgage*, Grant**, Mortgage Credit Certificate (MCC) or Combined Assistance***.

* 2nd mortgage and Grant are what MLO’s can commonly add to 1st mortgages you are already originating. **A Grant is treated like a gift. ***Lender provides and underwrites both 1st and 2nd DPA mortgage.

Max Asst shows max dollar or percentage amount client can receive.
Changed (days ago) alerts you how long ago a recent update to a program occurred.
Funding Status shows if a program is Active, Suspended or Inactive.
The Approved column allows an MLO to select the programs they want visible to prospective clients.

What Each DPA Program Page Contains

Within each DPA program page are 10 headings of “need to know” information and all DPA pages are in the same order.

Here are a few “need to know” details.

Program Overview:

Participating Lenders commonly provide direction to get approved for DPA.
Eligible Use of Funds can let you know if rehab/repairs may be an acceptable use of funds.
Program Overview has added Wholesale programs available to independent mortgage loan originators/brokers on Eligible Channels!

Program Terms:

Approved 1st mortgage types show your 1st mortgage type that DPA program can be subordinated to.
On all programs, check under Program Terms for deferral, forgiveness and criteria that must be met for forgiveness.

Borrower Eligibility:

the most important heading for MLO’s and HUD housing counselors! Here’s where you find:

Maximum (combined) Qualifying Ratios
minimum Credit Scores
if Home Buyer Education is required and where clients can go to get needed education. HUD housing counseling agencies may even want to use this knowledge to investigate more avenues of housing education to facilitate.
Income limits apply?: yes or no, and if income is based on HUD or GSE (Fannie Mae/Freddie Mac) income levels.
Maximum annual household Income by household size: many DPA program are based on HUD Area Median Income (AMI) levels that are derived from the total household family size and the total income of all household members over the age of 18.
HUD income levels ARE NOT the same as Fannie Mae and Freddie Mac income levels! Which income to use (HUD or GSE/Fannie Mae or Freddie Mac) is noted in Income limits apply?, and income max is commonly listed in Maximum annual household Income by household size.
This difference can be seen in DPA programs that are specific to Fannie Mae and Freddie Mac. Income limits apply? May state Income limits from FHFA/GSE 2022 80% AMI guidelines or tell you to check with lender.

Some DPA programs have a maximum dollar amount of assets (commonly $20,000) that a client can have to be eligible for DPA. This will be found under Borrower Eligibility in Maximum Assets Allowed if this field is shown. Check with DPA programs for this detail.

Property Eligibility:

Eligible property types shows if manufactured homes are allowed, which can also be found using filters: Property Eligibility>Eligible Property Types>Manufactured Homes.
Maximum #units allowed shows up to 4 if multi-family allowed. Also use filter: Property Eligibility, select Yes under multi-family.

Yes, there is DPA listed for… Use Filters! (Also, click on small i in blue circle for more information.)

For licensed mortgage loan originators/brokers to specifically find Wholesale lenders, click on Product/Program Overview>Eligible Channels and select Wholesale from Retail, Wholesale, and Correspondent in the dropdown.
No income levels! Click on Income Limits> Limits Apply?> No: Only show programs that do not have limits on borrower income.
Multi-family properties! Click on Property Eligibility>Multi-Family>Yes: Only show programs available for multi-family (2-4 unit) properties.
Deferred and Forgivable DPA: Click on Product/Program Terms and pick yes or no under the Deferred Payments and Forgivable tabs.
First-time homebuyer ( FTHB ) or not, is found under Borrower Eligibility.

The information provided in this article is tip of the iceberg!

Once you open Down Payment Connect , you will use it daily! MLO’s are getting emails about new DPA programs that lenders are providing more often, and DownPaymentResource.com continues to add these programs and improve originator, Realtor, HUD housing counselor, and client awareness of all down payment assistance nationally. MLO’s, to subscribe and get access to all things DPA to assist more clients, you need Down Payment Connect !

Stay tuned.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Education Series for Most Needed Services to Assist Clients Trying to Get “Mortgage Ready”

Fri, 09 Dec 2022 19:47:51 GMT

Focusing on Specific Client Needs, What Tools Can Be Used to Assist, and How to Bundle Targeted Services to Reduce Costs

A Pilot program called Home Prep that connects mortgage loan originators (MLO) to HUD housing and credit counselors who can get clients past final hurdles to become “mortgage ready” has been finetuning details on the areas where prospective mortgagors need the most help. Presently, the area of most need is for short and long-term credit help, though down payment assistance is a very close second place. It has been found that MLO’s and HUD counselors often work with the same resources but utilize these resources differently.

Discussion and awareness of WHY, WHAT, and WHEN to use specific resources has become a learning curve for both sides and has also provided surprises like bundled, targeted services that can save MLO’s and HUD counselors money as they get clients “mortgage ready”.

Series articles will focus on known issues, available tools that mortgage professionals and HUD housing and credit counselors can use with clients, along with guidelines and visuals to implement.

1st Series Article: Getting a Client “Mortgage Ready” by Working on the Best Possible CREDIT Before Starting Anything Else Is the 1st Step.

Everything BETTER for a mortgage starts with the BEST, MOST ACCURATE CREDIT possible. The BEST CREDIT leads to better interest rates, the lowest down payment required, access to best and most down payment programs that client may be eligible for, and automated underwriting approval when required.

Credit Issue: Deleting Disputes

Dealing with disputes is a common issue that can show up in Fannie Mae and Freddie Mac automated underwriting system (AUS) findings.

Credit repair companies often dispute accounts to improve credit scores. Sometimes those same disputes must be removed from the credit report to receive a Fannie Mae and Freddie Mac automated underwriting system (AUS) approval. Why? Because disputes hide credit. When the dispute is removed, negative credit may return.

1. What Dispute notification in Fannie Mae Desktop Originator/Underwriter Findings looks like

2. Fannie Mae Selling Guide Directions to follow for deletion of noted Disputed Credit Report Tradelines

The entirety of direction to follow in the Fannie Mae Selling Guide for disputes on a credit report is below.

When the credit report contains tradelines disputed by the borrower, DU will first assess the risk of the loan casefile using all tradelines, including those disputed. If DU issues an Approve recommendation using the disputed tradelines, no further documentation or action is necessary. DU will issue a message specific to this scenario.

If DU does not issue an Approve recommendation when including the disputed tradelines, DU will re-assess the risk without using the disputed tradelines. If DU is then able to issue an Approve recommendation, the lender must investigate the tradelines to determine whether the borrower is responsible for the accounts or if the account information is accurate or complete.

If the borrower is not responsible for the disputed accounts, the lender must obtain supporting documentation and may deliver the loan as a DU loan. No further action is necessary regarding the disputed tradelines.
If the borrower is responsible for the disputed account, the lender must investigate the information, including determining the aspect of the tradeline that is being disputed. If the borrower is able to provide documentation to disprove any adverse information (such as canceled checks), the lender may deliver the loan as a DU loan.
If the borrower is responsible for the disputed account and the account and tradeline information is accurate and complete, the loan is not eligible for delivery as a DU loan. The lender may manually underwrite the loan if the transaction is eligible for manual underwriting.
A borrower’s account was referred for collection by the creditor. Subsequently, the borrower paid off the account, but the pay-off was not reported on the tradeline. The borrower requested that a dispute be placed on the tradeline. The tradeline information was accurate, but because it did not reflect that the borrower paid off the account, it may be considered incomplete. The borrower must provide documentation that the account was paid in full.
A borrower and his son have the same name (Sr. and Jr.). The borrower’s credit report contains a tradeline that actually belongs to the son. The tradeline is reported as disputed. The borrower can provide confirmation that he is not obligated on the account.
The servicer of a disputed loan indicates a late payment in January of the previous year. The borrower can provide documentation (such as canceled checks or bank statements) that indicate that the payment was made on time.
The credit report indicates a disputed tradeline on the borrower’s mortgage being refinanced. The tradeline indicates a 60–day late payment in January of the previous year. The borrower cannot provide any documentation to support that the payment was made on time.

The monthly payments for the disputed tradelines must be included in the debt-to-income ratio if the accounts belong to the borrower.

Note: Tradelines reported as medical debt are not shown in the disputed tradeline message. Therefore, lenders are not required to investigate disputed medical tradelines.

Examples

The following scenarios are examples of when a loan receiving an Approve/Eligible recommendation with the disputed tradeline(s) excluded from DU's risk assessment would be eligible for delivery as a DU loan:

The following scenario is an example of when a loan receiving an Approve/Eligible recommendation with the disputed tradeline(s) excluded from DU’s risk assessment would not be eligible for delivery as a DU loan:

3. How to use CreditXpert What-If Simulator to check what credit score will be when dispute is removed

Go to time 3:30 on CreditXpert What-If Simulator video [1] to find out how the removal of a dispute will affect your clients credit score.

How to check: Click on “REMOVE DISPUTE” button on CreditXpert What-If Simulator

IMPORTANT: Removing a Dispute does not always change the credit score.

Directions for the client are listed on the right.
The CreditXpert timeframe for what a client can do to change the score are only available to you for 30 days from the date the credit report is pulled.

You can check 1 or all 3 bureaus (Experian, Equifax, TransUnion) for a credit score change when deleting a dispute. Additionally, check with your credit reporting agency and ask for bundled costs for both soft and hard pull credit reports with the CreditXpert tools added to ALL credit reports. You may find that the cost per credit report may be more, but the monthly credit report bill, especially using soft pulls, to have CreditXpert on ALL credit reports rather than paying individual CreditXpert costs is less. (I am using CreditXpert that much!)

Next: 2 more credit tools: Wayfinder. Then, Meridian Link. Stay tuned.

[1] CreditXpert What-If Simulator Directions on YouTube for Dispute AND MORE at 3:30: https://creditxpert.com/credit-insight s/xpert-tip-creditxpert-what-if-simulator-all-the-actions-you-can-simulate/

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

When Fannie Mae AUS Findings Require the Removal of a Dispute, Use CreditXpert What-If Simulator to Check on Credit Score After Deletion.

Wed, 23 Nov 2022 15:11:09 GMT

First, what Dispute notification in Fannie Mae Desktop Findings looks like.

Directions for deletion of Disputed Credit Report Tradelines per the Fannie Mae Selling Guide

The entirety of direction to follow for Disputes in the Fannie Mae Selling Guide for disputes on a credit report is below.

If the borrower is not responsible for the disputed accounts, the lender must obtain supporting documentation and may deliver the loan as a DU loan. No further action is necessary regarding the disputed tradelines.
If the borrower is responsible for the disputed account, the lender must investigate the information, including determining the aspect of the tradeline that is being disputed. If the borrower is able to provide documentation to disprove any adverse information (such as canceled checks), the lender may deliver the loan as a DU loan.
If the borrower is responsible for the disputed account and the account and tradeline information is accurate and complete, the loan is not eligible for delivery as a DU loan. The lender may manually underwrite the loan if the transaction is eligible for manual underwriting.

The monthly payments for the disputed tradelines must be included in the debt-to-income ratio if the accounts belong to the borrower.

Note: Tradelines reported as medical debt are not shown in the disputed tradeline message. Therefore, lenders are not required to investigate disputed medical tradelines.

Examples

A borrower’s account was referred for collection by the creditor. Subsequently, the borrower paid off the account, but the pay-off was not reported on the tradeline. The borrower requested that a dispute be placed on the tradeline. The tradeline information was accurate, but because it did not reflect that the borrower paid off the account, it may be considered incomplete. The borrower must provide documentation that the account was paid in full.
A borrower and his son have the same name (Sr. and Jr.). The borrower’s credit report contains a tradeline that actually belongs to the son. The tradeline is reported as disputed. The borrower can provide confirmation that he is not obligated on the account.
The servicer of a disputed loan indicates a late payment in January of the previous year. The borrower can provide documentation (such as canceled checks or bank statements) that indicate that the payment was made on time.

The credit report indicates a disputed tradeline on the borrower’s mortgage being refinanced. The tradeline indicates a 60–day late payment in January of the previous year. The borrower cannot provide any documentation to support that the payment was made on time.

How to use CreditXpert What-If Simulator to check credit score if Dispute removal is done.

How to check: Click on “REMOVE DISPUTE” button on CreditXpert What-If Simulator

To find out how the removal of a dispute will affect your clients credit score, check what removing the dispute will do to a credit score at all 3 bureaus with the CreditXpert What-If Simulator available through your credit reporting agency.

Directions for client to follow are on the right. Note: Removing a Dispute does not always change the credit score.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

When Inaccurate Credit Exists on the Credit Report, Use Five Fannie Mae Codes in Desktop Originator/Underwriter to Submit Correctly

Wed, 16 Nov 2022 18:14:27 GMT

When inaccurate credit exists on a credit report for mortgage delinquency, bankruptcy, foreclosure, short sale and extenuating circumstances, there are five entries that can be used in the Fannie Mae Desktop automated underwriting system (AUS).

Loan originators need to know when to use these codes and where to insert them in the FannieMae.com xml loan application when needed.

Entries noted below should be inputted EXACTLY AS SHOWN, with spaces (no underscores), and are case sensitive! Entry information shown for the five codes can be found in the Fannie Mae Selling Guide under B3-5.3-09, DU Credit Report Analysis (12/04/2019 ). Freddie Mac does not have a workaround code for these issues.

WHAT Code To Use

Confirmed Mtg Del Incorrect

(Confirmed Mortgage Delinquency Incorrect)

Underwriting when the Credit Report Contains Inaccurate

Mortgage Delinquency Information

When DU identifies a mortgage delinquency on the credit report and the information is inaccurate, the lender may instruct DU to disregard the mortgage delinquency information on the credit report. This is done by entering “Confirmed Mtg Del Incorrect” in the online loan application and resubmitting the loan casefile to DU. When the loan casefile is resubmitted to DU, the mortgage delinquency information on the credit report will not be used.

If the lender enters “Confirmed Mtg Del Incorrect”, the lender must document that the mortgage is not currently 60 days or more past due and has not been 60 days or more past due in the last 12 months.

Confirmed CR BK Incorrect

(Confirmed Credit Report Bankruptcy Incorrect)

Underwriting when the Credit Report Contains Inaccurate Bankruptcy Information

When DU identifies a bankruptcy on the credit report and the information is inaccurate, the lender may instruct DU to disregard the bankruptcy information on the credit report in the eligibility assessment. This is done by entering “Confirmed CR BK Incorrect” in the online loan application and resubmitting the loan casefile to DU. When the loan casefile is resubmitted to DU, the bankruptcy information on the credit report will not be used.

If the lender enters “Confirmed CR BK Incorrect”, the lender must document that the Chapter 13 bankruptcy was discharged two or more years or dismissed four or more years from the disbursement date of the new loan, or that the non-Chapter 13 bankruptcy was discharged or dismissed four years or more years from the disbursement date of the new loan.

Confirmed CR BK EC

(Confirmed Credit Report Bankruptcy with Extenuating Circumstances[1])

Underwriting when a Bankruptcy Was Due to Extenuating Circumstances

When DU identifies a bankruptcy on the credit report and that bankruptcy was due to extenuating circumstances, the lender may instruct DU to disregard the bankruptcy information on the credit report in the eligibility assessment. This is done by entering “Confirmed CR BK EC” in the online loan application and resubmitting the loan casefile to DU. When the loan casefile is resubmitted to DU, the bankruptcy information on the credit report will not be used.

If the lender enters “Confirmed CR BK EC”, the lender must document that the bankruptcy was due to extenuating circumstances, and that the Chapter 13 bankruptcy was dismissed two or more years from the disbursement date of the new loan, or that the non-Chapter 13 bankruptcy was discharged or dismissed two or more years from the disbursement date of the new loan.

Confirmed CR FC Incorrect

(Confirmed Credit Report Foreclosure Incorrect)

Underwriting when Inaccurate Foreclosure Information Exists

When DU identifies a foreclosure on a credit report tradeline and the foreclosure information on that tradeline is inaccurate, the lender may instruct DU to disregard the foreclosure information on the credit report in the eligibility assessment. This is done by entering “Confirmed CR FC Incorrect” in the online loan application and resubmitting the loan casefile to DU. When the loan casefile is resubmitted to DU, the foreclosure information on the credit report tradeline will not be used in the eligibility assessment.

If the lender enters “Confirmed CR FC Incorrect,” the lender must then document the foreclosure was completed seven or more years from the disbursement date of the new loan, or that the account was not subject to foreclosure and the loan complies with all other applicable requirements.

Confirmed CR FC EC

(Confirmed Credit Report Foreclosure with Extenuating Circumstances)

Underwriting (Foreclosure) when Extenuating Circumstances Exist

When DU identifies a foreclosure on a credit report tradeline and that foreclosure was due to extenuating circumstances, the lender may instruct DU to disregard the foreclosure information on the credit report in the eligibility assessment. This is done by entering “Confirmed CR FC EC” in the online loan application and resubmitting the loan casefile to DU. When the loan casefile is resubmitted to DU, the foreclosure information on the credit report tradeline will not be used in the eligibility assessment.

If the lender enters “Confirmed CR FC EC,” the lender must then document that the foreclosure was due to extenuating circumstances, the foreclosure was completed three or more years from the disbursement date of the new loan, and the loan complies with all other requirements specific to a foreclosure due to extenuating circumstances.

WHERE to insert needed code.

AUTHOR DISCLAIMER: Some loan operating systems (LOS) DO NOT have spaces between code letters. This may affect the outcome of the AUS decision. The Fannie Mae Job Aid shows where to insert code WITHIN FANNIEMAE.COM and stated that code (in their system) needs to be EXACTLY AS SHOWN in Fannie Mae Selling Guide under B3-5.3-09, DU Credit Report Analysis (12/04/2019) for each code provided.

Fannie Mae Job Aid gives direction on where to insert code in FannieMae.com .

https://singlefamily.fanniemae.com/job-aid/new-desktop-underwriter/topic/navigating_loan_application_fields.htm#DerogatoryCredit

Input needed code directly into xml loan application in FannieMae.com .

In your xml loan application on FannieMae.com , insert code in “5b. About Your Finances” under DU Policy Feature. If more than one code is needed, click on +Add Description to open additional field. Input EXACTLY as code is shown with spaces and is case sensitive! Then click Done.

[1] B3-5.3-08, Extenuating Circumstances for Derogatory Credit (12/16/2014): https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-3-Traditional-Credit-History/1032990301/B3-5-3-08-Extenuating-Circumstances-for-Derogatory-Credit-12-16-2014.htm

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Loan Originators Should Consider Targeting Specific Mortgage Products

Wed, 19 Oct 2022 14:44:54 GMT

Loan Originators Should Consider Targeting Specific Mortgage Products That Are Still Being Sought By Prospective Homebuyers. The NEED is There.

Mortgage headlines are now projecting two more years of a downturn in the housing market, but this is the time loan originators need to laser focus on a client NEED market and learn about recent mortgage products that are gaining traction.

Fannie Mae and Freddie Mac Affordable products specifically benefit 80% of area median income (AMI) clients, and you may be surprised at the income levels in your area. Unique mortgage products such as Freddie Mac’s 95% LTV on owner-occupied 2-4 unit properties, manufactured home financing, renovation loans, and a newer mortgage product for Accessory Dwelling Units (ADU), where space can be added to a home to offer independent living to family members or for rental income are all available now.

Fannie Mae ^[1] and Freddie Mac ^[2] have been aggressively promoting refinance and purchase of Affordable mortgage loans that are available for clients with an income up to 80% area median income (AMI). The Freddie Mac tool even has a link to Downpaymentresource.com to show what down payment assistance can be found in a specific address area.

For both Fannie Mae and Freddie Mac, the maximum income can be for one borrower or both in the household to qualify. At 80% AMI, 97% financing is available with reduced PMI rates that get better with higher credit scores. The array of Fannie Mae products NEEDED now can be found here and the array of NEEDED Freddie Mac products are here . Freddie Mac is even offering up to $2500 for eligible clients through their BorrowSmart program at pilot mortgage companies and with an additional $7500 for clients in an eligible minority census tract in Baltimore, Chicago, and Detroit.

Maximum 95%LTV financing for owner-occupied 2-4 unit properties is available through Freddie Mac .

Accessory Dwelling Unit (ADU) refinance and purchase mortgages that allow adding on space to offer an independent living area to family members or to gain residual income by renting out the unit and are available through both Fannie Mae and Freddie Mac . ADU NEED is growing, and municipalities are adopting changes to existing building codes to make way for this option.

Down payment assistance (DPA) has been elevated to a top spot of the NEED list for prospective homebuyers. Downpaymentresource.com , a national data resource for DPA, includes wholesaler DPA resources available to mortgage brokers nationally. DPA clients can connect with mortgage professionals through Down Payment Connect . Tip: loan originators need to be focused on details of the DPA 2 ^nd mortgage to ensure a good match with the first mortgage.

The FHA 203H program through the Federal Housing Administration (FHA) allows 100% mortgage financing from qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home. This program is a big help for Florida after hurricane Ian.

Getting your clients the best credit score for the best mortgage products and lowest PMI is key now more than ever and can be done through CreditXpert products such as the What-If Simulator and Wayfinder . These products are available to loan originators through your credit reporting agency and can be used on soft and hard credit pulls. Credit score increases can be applied quickly through a paid Rapid Rescore but loan originators need to pay for this. Or, the client can do the steps needed and wait 30 to 45 days before seeing the changes applied to a new credit report.

Tip: When you see disputes on a credit report, go to What-If Simulator to find out what deleting this account will do to the credit score ahead of time. Deleting the dispute is often a requirement found in Fannie Mae and Freddie Mac's findings.

Freddie Mac Income and Property Eligibility Tool

Finally, don’t forget that some of your clients may be eligible for the student loan forgiveness funds and this may make them eligible for a home purchase. This gives you an opportunity to solicit both prospects and past borrowers and let them know that they or others they know may now be eligible for a mortgage.

There are many areas where mortgages can be made. Learn what clients in your area NEED and then get those tools. Home prices are becoming slightly more affordable. Be ready for the NEED of your clients by educating yourself now.

Stay tuned.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Are You A Fixer or Referrer of Client Problems? Home Prep is Being Developed to Help Both Types of Loan Originators.

Thu, 01 Sep 2022 14:12:51 GMT

Home Prep is Being Developed to Help Both Types of Loan Originators.

Loan originators deal with issues that prevent a client from proceeding with a mortgage in different ways. Some attempt to resolve the problems themselves, but the vast majority prefer to refer these clients to an outside resource. Some even refer to other loan originators who are known to handle client challenges.

As a "fixer" loan originator, how many times have you started to help clients overcome hurdles preventing them from getting a mortgage… and then get slowed down when the current loan business increases and decreases your time available to assist? As a "referrer", how many of you have tried to help clients and then had a bad experience instead… and prefer to refer "those clients" to another loan originator or service that can help?

Home Prep is a pilot portal that will connect clients with issues preventing a mortgage with a HUD housing or credit counselor who can help. Assistance will be available for five common problem areas noted below. A sixth area will provide direction and videos for loan originators to check details for unique problems experienced today. The objective is to have clients truly "mortgage ready" before they even start looking for a home.

Five Common Issues

Credit: Short-term help

MLO can provide a client credit report with authorization. Includes building credit if none or less than 3 scores, increasing credit scores to min. 640 middle score, correcting short-term credit issues such as resolving/deleting disputes, short-term payment plan for miscellaneous negative credit.
Credit: Long-term help: can include payment plan for paying off debt, possibly filing for bankruptcy or doing foreclosure or short sale. 6 months up to 5 years of credit help. No Debt Management. Not Credit Repair.
Student Loan Refinance: Student loan consolidation that may be income based and refinancing of negative student loan debt.
Down Payment Assistance (DPA): Using the comprehensive part of Downpaymentresource.com called Down Payment Connect, loan originators and HUD counselors can match clients with DPA programs they are eligible for.
Budgeting for Home Purchase: review the budget and set up a home savings plan. This can be coupled with evaluating the client for DPA funds available.

This step is just for Loan Originators to use:

Pre-Purchase Help Just for Loan Originators: Final vetting of the client to be Mortgage Ready
The working objective is to have availability to run loans with a hard credit through both the Fannie Mae and Freddie Mac automated underwriting systems (AUS).

The goal is to have all clients run through both AUS for approval before the client is released as Mortgage Ready. If there is no approval, the client may need a manual underwrite.

✓ Issues are often first seen in the Fannie Mae AUS system but can also appear in the Freddie Mac AUS. Clearing clients here helps ensure that issues don't surface while applying for a mortgage.

✓ As a part of Home Prep, pilot loan originators are working on videos showing how to use the Fannie Mae dropdown of past derogatory events if credit in the AUS reports a negative event incorrectly.

For clients who have had a bankruptcy with a property included in their past, retrieve a verification of mortgage for the mortgage that was included in bankruptcy where the payment history of the mortgage is suppressed and unable to be seen after the bankruptcy discharge date unless the debt was re-affirmed.
When government loans of any type (mortgage, student loans, etc.) exist that may have been in default, pull CAIVRS UPFRONT to check that there are no deficiencies to be resolved.
When a veteran has had a past short sale, foreclosure, deed in lieu, or modification due to deployment, check on Certificate of Eligibility. If there is no eligibility, check with VA on Bonus Entitlement.
Work to show loan originators effective ways to use down payment assistance through DownPaymentResource.com, and utilize Down Payment Connect, which provides comprehensive detail on all down payment assistance available nationally, how to use it, and how to promote the availability of DPA to clients. More to come on this greatly needed resource. Additionally, videos of how to use DPA and unique options available now, such as Freddie Mac Borrow Smart, stacking multiple programs, and avenues available just for mortgage brokers, will be explained.

This asset will be presented to HUD housing counselors to show them what additional mortgage broker products are also available.

We are looking for up to 10 licensed mortgage loan originators to be part of this pilot. You can be new or experienced. Call Pam Marron at 727-534-3445 , email pam.m.marron@gmail.com or use the form below to be considered for the pilot.

Stay tuned.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

WHY the 6th and Final Step of the Home Prep Pilot is Critical to Getting Clients “Mortgage Ready”

Thu, 18 Aug 2022 14:27:14 GMT

Below are 5 common issues that often prevent clients from getting a mortgage.

Short-term credit issues that can be resolved within 6 months.
Long-term credit issues can take up to 5 years to remedy.
Student Loan refinance help.
Down Payment Assistance(DPA) with the help of DownPaymentResource.com and a resource for loan originators called Down Payment Connect .
Budgeting for a home purchase.

A pilot program called Home Prep is being developed to connect loan originators and realtors to HUD housing and credit counselors who can work with prospective homebuyers on resolving one or more of these issues and get clients “mortgage ready”.

A 6th and final step for clients who have had specific credit issues in the past will provide a safeguard so that the same issues don’t come up on a new mortgage.

Ask your client if they have had any of the issues noted below in their past and apply remedies UPFRONT before a client even starts looking for a home.

Ask the client if they had a past short sale, foreclosure, deed in lieu (DIL), modification, or bankruptcy where property was included.

During the past housing crisis, a foreclosure credit code often showed up on credit for short sales, DIL and even modifications. The foreclosure code requires a longer wait period to get a new mortgage. This incorrect credit often could not be visibly seen on a credit report but did show up in the Fannie Mae and Freddie Mac automated underwriting system (AUS) findings.

Asking clients detailed questions when specific past credit issues exist and then running their loan through AUS systems UPFRONT is CRITICAL to ensure that these past issues will not pop up during the loan process and prevent the client from getting a mortgage.

Run loan through the Fannie Mae and Freddie Mac automated underwriting systems for FHA, VA and conventional programs, and through the Guaranteed Underwriting System (GUS) for USDA loans.

In fact, run ALL client loans through both the Fannie Mae and Freddie Mac AUS systems UPFRONT for prospective homebuyers to insure a thorough pre-approval.

There is nothing worse than finding out that a client cannot get an AUS approval AFTER the client has signed a contract, put a deposit down, given notice to a landlord, and paid for a home inspection and appraisal. An AUS denial towards the end of a contract can be catastrophic, where the only options for a client are a government loan manual underwrite with stricter guidelines and a higher interest rate, or a non-QM loan with a higher interest rate and more down payment required.

Ask the client if they had a bankruptcy and a property was included that had a short sale, foreclosure, Deed in Lieu (DIL) or even excessive late payments.

When a bankruptcy has a property included, the mortgage payment history ceases to show up on a credit report after the bankruptcy discharge date unless the debt is re-affirmed. Remedies to get the payment history and closing date of a short sale, foreclosure or DIL:

Retrieve a verification of mortgage (VOM) from the past mortgage company.

The client can request a mortgage payment history from the past mortgage company.

Your credit reporting agency has a report that can provide this information for a fee.

Check the final date the mortgage showed as reported and closed and review the payment history to make sure the client meets derogatory credit wait timeframe for specific loan types[1].

Ask the client if they had a defaulted student loan or mortgage.

Check the Credit Alert Interactive Voice Response (CAIVRS) system UPFRONT, a federal government database of delinquent federal debtors, to ensure client credit is clear.

Ask the client who is a veteran if they had a past short sale, foreclosure or deed in lieu.

Pull a Certificate of Eligibility (COE) FIRST to confirm existing eligibility.
If there is $0 eligibility:
Contact VA at 877-827-3702 to get determination of Bonus Entitlement.
Calculate VA Bonus Entitlement:

The calculation for basic + bonus full entitlement looks like this:

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Customized Resource for Mortgage Loan Originators (MLO) to Assist Prospective Homebuyers to Get Mortgage Ready!

Wed, 06 Jul 2022 21:18:28 GMT

For the last four months, efforts have been underway to form a pilot program that can assist mortgage clients who aren’t quite ready to purchase a home to get “mortgage ready”. The model is uniquely laid out to address six issues (other than an expensive housing market!) that mortgage loan originators (MLO) commonly run into that prevent their clients from purchasing a home.

The Key To Helping Future Homeowners

The key to making this pilot work is a robust communication portal that can be shared between the prospective homebuyer, the mortgage loan originator (MLO), and the HUD housing and credit counselors that keeps all parties apprised of the client’s progress. Services are paid for by the client as a Fee for Service, but the MLO will provide a designated credit towards the client’s mortgage closing costs using a Memorandum of Understanding (MOU) if the client returns to that MLO for their mortgage.

Below are the common hurdles that MLO’s commonly see that prevent a client from purchasing a home. Although HUD housing and approved credit counselors can provide more than the 6 issues noted below (like rental assistance and post-purchase help), these 6 are what the platform is concentrating on for the pilot called Home Prep.

IMPORTANT: Credit help IS NOT credit repair!

Short-term credit issues: 0-6 months to remedy. Building credit, improving credit scores to a minimum 640, and resolution of short-term credit issues.
Long-term credit issues: 7 months to 5 years to remedy. Debt management, bankruptcy, resolution of long-term credit issues.
Student Loan Refinancing
Pre-Purchase Check-Up: includes running client through Fannie Mae Desktop and/or Freddie Mac Loan Product Advisor, pulling verification of mortgage when the past mortgage was included in a bankruptcy, running CAIVRS for past government loan clearance, providing clear VA Certificate of Eligibility (COE) for veterans that had past short sale or foreclosure due to required move for deployment and checking for Bonus Entitlement if VA COE has no eligibility.
Down Payment Assistance (DPA): for clients who meet DPA requirements for any eligible programs they may be eligible for including wholesale DPA.
Budgeting for Home Purchase

Prospective homebuyers can expect to pay an average of $750 for services needed, and participating MLOs will be asked to provide a credit commensurate with the client's cost towards mortgage closing costs. The logic of the credit coming from an MLO is that instead of usurping time needed to assist clients who can’t get a mortgage today, the client is referred to a trained HUD counselor that will assist the client to handle issues and also provide an anticipated date of completion for “mortgage readiness”.

The MLO will be able to check on client progress through the pilot portal and communicate on progress with the client, and a referring realtor if there is one. The client will get the credit towards closing costs from the referring MLO who provides the Memorandum of Understanding if they return to that MLO for their mortgage.

A few things have been learned along the way.

A keen selection of agencies and organizations that can assist with the 6 specific areas of need is being vetted now. Not all HUD housing counseling agencies (HCA) have the same or all services. Some specialize in specific areas (ie. not all agencies provide long-term credit help or student loan refinancing). Therefore, we’ve started with larger HUD intermediary agencies that can service the entire U.S., including regional HUD agencies.

There needs to be an educational component for MLOs to understand what HUD Housing Counseling Agencies (HCA) can do to assist clients upfront and a goal to get clients thoroughly “mortgage ready” before the client starts looking at homes. There also needs to be a breaking down of barriers between MLOs and HUD HCAs and an understanding of what each industry does that can help the other. Past distrusts, particularly from the housing crisis, must be overcome.

MLOs will need to provide a detailed summary of why the client cannot proceed with a mortgage upon entry into the Home Prep portal with an indication of services in priority that the MLO believes is needed. On the HCA side, quick onboarding and an anticipated “mortgage ready date” will keep MLOs engaged with the pilot concept.

Realtors have conveyed a strong interest in this concept, proven with questions about pilot articles that have been published. MLOs, pay attention to this. This is your path to work with new clients who have issues and connect with more realtors!

Finally, we are looking for up to 10 licensed mortgage loan originators to be part of this pilot. You can be new or experienced. Call Pam Marron at 727-534-3445 or email pam.m.marron@gmail.com .

Stay tuned.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

Need a Solution to Clearing Past Credit Problems That Can Result in a Mortgage Denial?

Wed, 08 Jun 2022 21:00:57 GMT

Do These Safeguards PRIOR to Giving a Mortgage Pre-Approval!

A growing number of clients have past credit issues that visibly don’t show up… but can still cause a new mortgage denial. What can mortgage loan originators (MLO) do? Be PRO-ACTIVE UPFRONT.

Run Loans Through the Fannie Mae Automated System (AUS) UPFRONT

During the past housing crisis, it was learned that past short sale credit was being erroneously coded as a foreclosure on credit reports [1].

This wasn’t visible on the credit report to loan originators, and the way that the problem was found was through the Fannie Mae AUS findings that would issue a Refer/Ineligible mortgage denial with a statement that there was a Foreclosure on the borrower’s credit.

Buried even deeper was the specific credit bureau (most often Experian) that triggered the Foreclosure indication… but this was only visible on the Meridian Link platform within a credit report.

So, what should a mortgage loan originator do when a client has a past short sale, foreclosure and even a bankruptcy in their past?

Specifically, run the loan through the Fannie Mae automated system (AUS) UPFRONT to insure getting an Approve/Eligible before giving a mortgage pre-approval. Fannie Mae findings will state what the specific problem is. Freddie Mac will not.

For information on how to correct erroneous credit in Calyx and Fannie Mae, go here .

Why is running a loan through the Fannie Mae AUS UPFRONT so important to do?

In most cases, affected past short sellers were told their loan received a denial AFTER the mortgage originator had told them they met the “wait time-frame” needed after a short sale, AFTER they had signed a home purchase contract and AFTER the homebuyer had spent hundreds of dollars on an appraisal and home inspection! The mortgage denial usually came from an underwriter who commonly runs the loan through the Fannie Mae and/or Freddie Mac automated systems towards the end of a contract period. In 2013 when a solution occurred within the Fannie Mae AUS, I intervened with hundreds of clients whose lenders were unaware of the Fannie Mae workaround. Often this was still too late in the process and many of these clients lost the contract they were in or settled for a higher interest non-QM loan with a greater down payment.

Other past credit issues that need to be checked on PRIOR to giving a mortgage Pre-Approval

Veterans who had to deploy to another location and ended up having to short sale or go into foreclosure on their past home are surprised to find they have no eligibility on their VA Certificate of Eligibility (COE). For these clients, contact the VA for Bonus Entitlement and have your lender check CAIVR for clearance upfront.

If a client had a prior bankruptcy and owned a property, and especially if that property went into foreclosure, retrieve a verification of mortgage (VOM) from the mortgage lender of that property to check the mortgage history for any late payment dates. Mortgage history does not show up on a credit report after a bankruptcy unless the mortgage is reaffirmed[2]. Don’t be caught off guard by late payments that can show up recently enough to result in a denied mortgage.

Help for Mortgage Loan Originators (MLO) to Connect Clients to Assistance for Credit Issues, Down Payment Assistance, Student Loan Refinancing and More is Coming

A handful of MLO’s have started working with HUD housing and credit counselors on a pilot program that matches clients with a need to counselors who can assist these clients to overcome issues and get “mortgage ready”. The pilot is leveraging IndiSoft’s National Housing Advocacy Platform (NHAPP), a cloud-based collaborative, seamlessly connecting MLOs, HUD-certified housing counselors and investors to support mortgage readiness counseling. Clients who need help will pay a “Fee for Service” upfront to HUD counselors and be referred by their MLO with a Memorandum of Understanding (MOU) that promises a credit back to the clients’ mortgage closing costs if they return to that MLO for their home mortgage. Fine tuning of seven services and costs that HUD counselors can provide is currently being assessed. Who and when safeguards discussed in this article are applied are being considered as well.

DO SAFEGUARDS UPFRONT!

This I know. There were solutions that resulted from problems that arose out of the housing crisis. Those solutions are still valid, and most are simple to do. The key is to apply safeguards upfront.

Probe deeper with clients who have had issues in the past and pro-actively check to make sure those issues don’t stall any of your clients from becoming a new homeowner. If you don’t know how to run clients through Fannie Mae and Freddie Mac automated systems, LEARN IT NOW, or find out how your lender can do this upfront. Find out who can pull CAIVR at your lender, call VA yourself on COE Bonus Entitlement and order needed VOM’s before your client spends any money. As mortgage professionals, we owe this to our clients.

Stay tuned. Coming up… bigger, better affordable housing mortgages.

What do you need help with? Contact us Today!

Pam Marron | NMLS# 246438

Tara Jerse | NMLS# 2105127

Innovative Mortgage Services, Inc. | NMLS# 250769

Equal Housing Lender

PEOPLE PLACES TALK ABOUT TOWN Getting Mortgage Ready & New Mortgage Opportunities for Personal Wealth Building

Thu, 26 May 2022 21:38:13 GMT

New Port Richey, Florida

MEDIA RELEASE

MEDIA CONTACT:

Lia Gallegos, Public Relations Director, Residential Activation Coordinator

727.385.5375

Lia@people-places.com

People Places, LLC.

We Bring Out the Best in Both

5742 Main Street

New Port Richey, Florida

New Port Richey, Downtown, FL (May 24 , 2022) – Please join us for our next Talk About Town: Are You Mortgage Ready? on Tuesday, June 14, at Ordinance One (5738 Main Street, New Port Richey) from 6:00 pm to 7:00 pm with an opening Mingle at 5:30 pm. This event is open to the public and free to attend.

Many in our community are feeling the pain of soaring rent prices and are wondering if they will be able to continue living here–and if not here, where can they go that hasn’t also been affected? Pam Marron, a Florida licensed mortgage originator and former HUD Housing Counseling Federal Advisory Committee (HCFAC) member and her business partner Tara Jerse, also a licensed loan originator, will be presenting information on numerous new opportunities that make homeownership a real possibility for people who think they may not qualify.

These new home financing options include better mortgages for clients with income levels that are below the 80% median income for our area (under $58,160 annually), and for the first time ever, 95% financing for 2-4 unit properties that are owner-occupied. Additionally, a new program that can help anyone who is trying to get “mortgage ready” is being introduced and matches prospective homebuyers with issues that prevent home ownership to HUD housing and credit counselors who are trained to help clients become homeowners.

Attendees can expect to learn more about their community through this series from expert speakers and the exchange of ideas with the group during the discussion and Q&A session at the end of each gathering. For more information please, visit People-Places.com, and follow People Places LLC on Facebook or Instagram.

ABOUT PAM MARRON

As an independent, licensed mortgage originator for the last 37 years, Pam’s reputation is built on professionalism, integrity and the ability to keep transactions on track. In addition to assisting clients with FHA, VA, conventional, USDA, renovation and portfolio 1st mortgages, she is also uniquely qualified to provide specialized help with unique circumstances.

During the housing crisis, Pam worked with many government agencies and (past) U.S. Senator Bill Nelson (D-Fl) to get a fix for foreclosure credit code that was erroneously applied to the credit of past short sellers. Because of that work, Pam served as a member of the HUD Housing Counseling Federal Advisory Committee (HCFAC) from 2016 through 2019.During this time, Pam became aware of how HUD housing and credit counselors could assist clients to overcome issues that prevented them from purchasing a home. One of the results is a website called Clients2Homeowners.com that provides consumers, mortgage originators and realtors with direction for problem areas that often prevents prospective homebuyers from getting a mortgage.

Additionally, Pam Marron and Tara Jerse are working with a high-level tech company to develop a new platform that will connect clients who need help getting “mortgage ready” through their realtor or loan originator with appropriate HUD housing and credit counselors. If clients pay a fee upfront for help, the referring loan originator will provide a designated credit towards mortgage closing costs once the client is able to purchase a home. Pam and Tara chose New Port Richey to test the program before launching it nationally. For more information and additional resources, please visit: https://www.closewithpamandtara.com.

ABOUT PEOPLE PLACES, LLC

People Places is a New Urbanist Real Estate development company founded by Frank Starkey in 2013 to create vibrant, people-oriented residential and retail places in walkable settings.

We believe that a society of connected people is better than a society of separated individuals and actively seek projects that encourage cultural diversity, inclusion, and equity.

Our work is currently centered on the revitalization of Downtown New Port Richey, Florida, a charming town founded in the early 20th Century. We do this through education, the activation of public spaces, and projects that have the greatest potential to improve the community and create places for people to connect.

Frank Starkey holds undergraduate and professional degrees in Architecture and Urban Design from Rice University, is a board member for CNU (Congress for the New Urbanism) and Habitat for Humanity of Pinellas and West Pasco. He leads a team of passionate, dedicated professionals who are committed to community revitalization.

The People Places office is located at 5742 Main Street in historic downtown New Port Richey, Florida. Hours of operation are Tuesday through Thursday, 9:00 am to 5:00 pm.

Lia Gallegos

Public Relations Director/Residential Activation Coordinator

So, what do you need help with? Contact us Today!

Writer Pamela Marron is a licensed Loan Originator NMLS #246438 in Florida who works for Innovative Mortgage Services, NMLS #250769 in Lutz, Fl. Articles written are strictly her opinion and are published to help loan originators, real estate professionals and mortgage clients.

A Story That Sheds a Bright Spot on Client Mortgage Issues of Today

Fri, 13 May 2022 21:25:20 GMT

From 2016 through 2019, I was a member of the HUD Housing Counseling Federal Advisory Committee (HCFAC). Even though I have been a loan originator for 37 years, I was barely aware of HUD housing and credit counselors. These dedicated individuals could help clients who weren’t ready for a mortgage to get “mortgage ready”.

I also did not know that certified HUD credit counselors could help clients with short-term credit issues and work with clients for up to 5 years on long-term issues. From the non-profit financial counseling organization National Foundation for Credit Counseling (NFCC.org) , I learned the difference between the good that can come from Debt Management and the negatives that can result from Debt Settlement.

It became a mission to tell my mortgage colleagues how these HUD-approved professionals could assist our Prospects. Prospects who weren’t yet ready for a mortgage but pursuing the dream of homeownership. Prospects deserved undivided attention but were moved to the back of the line when our “mortgage ready” client business picked up!

Fast forward to 2020 and 2021. The Covid pandemic affected the world, but the mortgage business was surprisingly good. However, mortgage forbearances and student loan deferments became the new credit spots we all had to learn how to deal with. Knowing the difference between qualifying for a mortgage with student loan debt between FHA, VA, Fannie Mae and Freddie Mac and charting mortgage payments made and wait time after a forbearance to get a new mortgage became the norm.

For FHA loans, calculating the average number of hours worked over a year when clients have multiple “out-sick time” due to being quarantined for Covid outbreaks is another example of adjusting.

I learned about DownpaymentResource.com from a HUD counselor. Down payment assistance (DPA) became a prevalent need to give clients a fighting chance to compete with an overwhelming number of cash buyers. In Down Payment Connect , a paid service of Downpaymentresource.com for mortgage professionals and realtors, I can see all DPA programs across the U.S., including many wholesale DPA programs available to mortgage brokers. Their DPA Directory keeps up-to-date information about contact information, program criteria, and if the program is open or closed.

An accumulation of information for "getting mortgage ready" resulted in the development of Clients2Homeowners.com , a resource primarily for loan originators and real estate agents, but also for mortgage Prospects. Most issues that you see in this article are detailed on the website.

Through the current difficult time, there is growing interest in connecting mortgage professionals to HUD-approved housing and credit counselors to help clients with issues to become “mortgage ready”. Progress has started. Stay tuned.

So, what do you need help with? Contact us Today!

Ensuring that Past Issues Don’t Prevent Mortgage Prospects from Obtaining a New Mortgage Needs to be Priority #1 for Mortgage Loan Originators (MLO) to Clear UPFRONT!

Tue, 19 Apr 2022 14:28:09 GMT

Does your loan have lingering credit issues? Here's what to look for and where to start.

Currently, an increased amount of time is being spent on pre-mortgage Prospects by loan originators trying to help their clients primarily with lingering credit issues and to get needed down payment assistance (DPA). This is time well-spent to avoid issues later. But many MLO’s don’t know what to look for or where to start.

Now is the time to tap into the services of HUD approved housing and credit counselors for prospective homebuyer needs if MLO’s don’t desire or know how to help clients with issues.

For months, I have attempted to make a simple report within my loan operating system (LOS) that will allow tracking of Prospects who may be stalled from purchasing a home due to problems with credit, DPA needs and other issues. I’ve also investigated multiple customer relationship management (CRM) systems that can connect to an LOS to allow for a robust Prospect report to keep track of a growing number of pre-mortgage clients.

Getting current borrower and post-closed borrower information is often readily available no matter what LOS system is being used. But for pre-mortgage clients known as Prospects, field information is not as updated or available in many LOS systems. Less attention seems to be paid to the front side of getting Prospects ready for a mortgage refinance or purchase.

WHY is Prospect pre-mortgage attention so important?

Because of Covid forbearances and deferments, loan originators are seeing an increase in credit issues that need to be corrected to increase credit scores for the best mortgage possible. This is especially important as interest rates continue to increase.

In the last two weeks, I’ve worked with two VA clients, one with a foreclosure 13 years ago and one with a short sale 12 years ago that were the result of a required deployment to another country or state. These mortgage Prospects were told by the VA that their past mortgage issues would not affect them in the future, but the basic VA entitlement for both clients on a new VA purchase came back as $0 available. The good news is that both clients got automated underwriting approvals through Fannie Mae and Freddie Mac for a new VA loan. A VA Bonus Entitlement was sought to save one of these loans but was not enough for the other client. But what if the same issue showed up within the last 7 years? Would the loan even get an automated approval for a past negative mortgage credit profile?

Or what if the CAIVR system red flags these clients, as some loan originators are telling us is happening to their clients with government backed mortgages and student loans?

Loan originators need to ensure that credit is clear on both the credit report platform and within automated underwriting systems (AUS). If your HUD counselor can’t run an AUS, do it upfront yourself for the client. CAIVRS and VA Certificates of Eligibility (COE) need to be checked upfront for clients where there might be a possibility of a past problem. Being aware of specific issues from a client’s past can allow MLOs and HUD counselors the ability to correct and apply quick intervention to prevent a denial of a new mortgage. And if the loan originator doesn’t desire or know how to get this cleared, work with a HUD housing or credit counselor who knows how to handle these issues to clear the prospective mortgage client for you.

Recently, we communicated with a national IT company that sees the value of connecting mortgage loan originators (MLO) with HUD housing and credit counselors. They expect that the MLO and the HUD counselor will stay in touch on the progress of referred clients. A “Fee for Service” where the client pays upfront for the cost of HUD counselor services will be offset by a credit paid for by the MLO towards the mortgage prospects closing costs. The IT company also knows about DownpaymentResource.com and sees the benefit of the buyer having a source of money for down payment and closing costs set up in advance to be competitive with other buyers.

Stay tuned. We are also close to finding that CRM that can categorize what help prospective clients need.

Definitely more to come. If you are a borrower learn more about getting mortgage ready by visiting our get mortgage ready page .

So, what do you need help with? Contact us Today!

Confusion Still Exists About Down Payment Assistance (DPA) for Many Loan Originators.

Wed, 16 Mar 2022 21:27:44 GMT

Here’s How to Organize DPA for Your Area and Start Selling!

The problem is that DPA second mortgage underwriting criteria is often different than the guidelines for the first mortgage. But close attention to these 2nd mortgage differences and applying these criteria to potential DPA clients FIRST is the key to making these programs work.

Additionally, there are two ways these programs are offered. Either:

The first mortgage and DPA 2nd mortgage are provided together and underwritten and closed at one institution.
The DPA program is a second mortgage offered from a separate institution that can be added to your clients first mortgage.

When I initially started using DPA programs, I too had a bad experience. Yep, I got an approval on the first mortgage but not on the DPA 2nd mortgage and the scrambling to find funds occurred a week before closing! To make sure this never happened again, I set up a Down Payment Assistance “At a Glance” spreadsheet with common detail about DPA programs within my area. As I find out about other programs, they are added.

Answers needed for questions about each DPA program is put in the first column of the spreadsheet. Because I am a mortgage broker, I offer DPA where the 1st and 2nd mortgages are provided and underwritten by one lender, as well as 2nd mortgage DPA provided by housing counseling agencies (HCA), county SHIP programs, city programs and Community Reinvestment Act (CRA) funds that can be added to my client’s 1st mortgage. Make your own grid on an Excel spreadsheet, or download ours.

Resources and Marketing

Check into DownPaymentResource.com . This national DPA tool provides loan originators, realtors and lenders as well as homebuyers with the ability to find all DPA programs in your area.
Sign up for Down Payment Connect through DownpaymentResource.com. As a member, you receive a logo to put on your promotional pieces that states “Ask Me About Down Payment” and links to a personal Down Payment Connect page where you can designate the DPA programs that you work with. Interested clients are directed to you for DPA help. Additionally, an incredibly comprehensive list of all DPA programs in your state is available to you and kept up to date with fund availability, program details and contact information for all programs.
Promote your spreadsheet on your website. This gives credibility to the fact that you offer DPA and provides prospective clients with information to know upfront if they eligible for DPA programs.
Get on County SHIP, city and CRA DPA program lists as a loan originator who is familiar with their DPA qualification criteria.
Sometimes funds from multiple DPA program can be used together.
Just a reminder…. Check with your clients on other funds that may be available for down payment:
tax return refunds
loan against 401K

In todays housing market which favors cash buyers, having down payment assistance for clients in your tool box can make the difference on a deal.

So, what do you need help with? Contact us Today!

How To Build a Sustainable Mortgage Pipeline

Tue, 22 Feb 2022 22:15:29 GMT

Need to build a sustainable pipeline?

Promote to mortgage Prospects who need help getting "mortgage ready". Then, direct them to the right help and keep in touch.

1) Find a customer relationship management (CRM) that works with your mortgage loan operating system (LOS) to help you keep track of “not yet mortgage ready” Prospects.

There are CRMs that connect to most loan originator LOS systems. Most are set up beautifully to stay in contact with past purchasers, but many CRMs lack the same ease of the process to follow-up with Prospects who are delayed on the front end from purchasing as they “get mortgage ready”. Cultivating Prospects who are working towards a purchase and keeping in touch with them and their HUD counselor until the client is ready to purchase a home can lead to a new avenue of business for loan originators.

How a good CRM can help. CRM's can be set up to track where and who you refer prospective clients to that need help with credit, down payment assistance and more. Finding a CRM that allows the best interaction with your LOS to stay in touch and track the Prospect client's progress is key.

If your LOS does not have a good follow-up CRM style system for Prospects, try customizing your own. This can be done in the Calyx LOS by customizing a Template and Report.

2) Find HUD Housing Counseling Agencies (HCA). Refer Prospects for help needed.

When loan originators try to keep clients on a mortgage track themselves, attention to detail usually wanes when business picks up.

What HCA services can provide. Look for HUD agencies that can help with specific needs that your prospective client has. HUD approved credit counselors can work with clients who need credit issues handled, credit built, and get payment arrangement made for student loans. Most HUD Housing Counseling Agencies (HCA) also provide help with down payment assistance (DPA) for city and county programs. HCA's can also assist clients with before and after home purchase services like rental help and post-home purchase help like Foreclosure Prevention and loan modifications. HCA services are sometimes free but are most often provided on a sliding scale income basis.

How mortgage loan originators can utilize HCA services. Check out which HCAs are in your area and what services they provide. Some HCAs provide services over a wider area and do so remotely. Create a relationship and know how to refer clients. HUD housing and credit counselors can follow clients until issues are resolved. Stay in touch with the HCA counselor on the progress of your client as they become "mortgage ready". This is where the CRM is beneficial. And if your client is getting DPA, the HUD housing counseling agency can often provide the education and certificate needed.

3) Embrace marketing tools that connect with Prospects as well as past clients.

Most of us have marketing tools to keep in touch with clients through the mortgage loan process and after the purchase. Fewer marketing tools are available to keep track of "not mortgage ready" Prospects, and marketing to these clients is often a second thought.

Retool Marketing for Prospects.
Make ads that promote that you can connect clients with help for credit, DPA and more.
Keep Prospects in separate database and group as 1) credit, 2) DPA and 3) other.
Make short ads that encourage those already getting "mortgage ready" and invite others that want to do the same.

Use Marketing but re-direct to Prospects .
Most of us have marketing available for free from mortgage wholesalers or our own lending institution to help sell a loan product. This marketing can be redirected to Prospects as they get "mortgage ready". Retool marketing to target prospective purchasers and add that you know about services that can help. Upload a separate database of Prospects and run ads that highlight success stories with credit, DPA, etc.

Promote that you can refer clients for services they need!
Promote that you work with agencies that can help assist clients! Promote those agencies. They are doing the work to get your Prospect "mortgage ready"!
Don‘t disregard clients because you don't know where to send them. Investigate the HUD.gov national counselor list that shows services offered by each HCA. Make ads like "Did you know you can get help with....?"
You may be surprised who calls you. though ads are geared to getting clients, real estate agents are also interested in talking with MLO's who can assist clients to get "mortgage ready"!

4) Most needed help for Prospects is with credit!

Good credit is the foundation block for purchasing a home and provides the greatest selection of programs, best interest rate and lowest mortgage insurance when purchasing a home. Get help with improving credit from HUD approved credit counselors for short and long term issues.

There are credit tools for loan originators! Credit reporting agencies can provide tools for loan originators to assist clients with credit such as Wayfinder and What If Simulator. And if you have a credit reporting agency that provides the Meridian Link platform, learn how to use this tool that allows you to see detailed payment history on each creditor.

5) Learn about new mortgage products!

There are more Affordable Housing programs available at present that are income driven and for 1st time homebuyers (haven’t owned home in last 3 years) than ever before for FHA, VA, USDA and conventional mortgages!

Conventional products: Conventional loan private mortgage insurance (PMI) premiums are less cost with lower rates for better credit score clients. Conventional also has programs with specific income criteria for 97% financing and 95% financing on multi-family units.

Other mortgage types and down payment assistance (DPA). Up to 105% combined loan to value (CLTV) with down payment assistance (DPA) is available for FHA and for specific Conventional products that meet criteria. DPA is available for FHA/VA/USDA as well as conventional loans, and wholesale DPA lenders always have funds available.

This will take some work on the loan originators part and you will need to learn new details about programs along the way. But laying the groundwork for incoming new business is one of the best tools a loan originator can have in this ever-changing mortgage market. Stay tuned.

As you can see there are a lot of details to put in order. If you need help, please contact us or call Pam Marron at 727-534-3445 .

10 Things to Remember When Using Down Payment Assistance

Thu, 03 Feb 2022 21:09:07 GMT

For Loan Originators and Realtors:

My last article stated that mortgage loan originators needed to get over their worries about using down payment assistance 2nd mortgages to stay competitive. But understanding the right connection between a first mortgage and a down payment assistance 2nd mortgage is often easier said than done. As my business partner Tara and I investigate and use more DPA programs, we are detailing what to look for about DPA programs on a matrix. In the near future, we will make this document available.

Now is the best time to learn about adding down payment assistance (DPA) for qualified borrowers who have good ratios and decent credit but lack funds to purchase a home. There are more DPA programs available now for FHA, conventional, USDA and VA loan products than ever before. The best reason to know about these programs is that DPA funds can cover down payment and usually a good amount of the closing costs that sellers aren’t willing to pay in todays heated housing market. This makes buyers with DPA more competitive than buyers who need closing costs covered.

But DPA programs don’t come without challenges. Often, a DPA issue can arise during the processing of a loan and if the 2nd mortgage for DPA funds cannot be approved, the only remedy to complete the deal may be a gift at the last minute.

Areas explored and some of what we discovered is laid out below.

In comparing FHA 96.5%LTV and conventional 97%LTV loan programs with DPA added, we found that when a borrower’s credit score is over 700, the combined conventional mortgage payment is usually lower than the combined FHA payment due to lower private mortgage insurance (PMI). The closing costs compared were just slightly higher for the conventional loan.
Borrowers who need DPA to help with home purchase costs need to have funds in the bank. For borrowers who have lower credit scores and are tight or slightly over on the front FHA ratio, one to two months of reserves is needed to get the loan approved through automated underwriting required for many programs. This is because the higher combined loan to value (CLTV) of the first and 2nd DPA mortgage poses a greater risk. Run your clients through the Fannie Mae Desktop Originator or Freddie Mac Loan Product Advisor programs upfront.
Be careful to check the exact program income criteria for area median income (AMI) that clients need to qualify for with each DPA. Some programs require that only the income of the borrower applying for the loan should be analyzed, while other programs require household income for all members of the family to be used.
Know the geographic area a DPA program can provide funds for on a home purchase. Community Reinvestment Act (CRA) DPA funds are available for home purchases within a mapped area.
Check to see if there are program differences for different property types, such as a manufactured home versus a single-family residence (SFR). I recently found that a manual underwrite was available for SFR’s but not on a manufactured home.
On any DPA program, always ask UPFRONT if there are any overlays or unique underwriting criteria for the specific program.
Know upfront if the 2nd mortgage payment will need to be included in ratios and what those maximum ratios are.
There are two different areas to insert the DPA program on the NEW URLA: 4b. and 4d. Make sure that you know if the DPA payment needs to be included in the ratio (4b.) or is considered a soft 2nd that can be forgivable with specific criteria met, and may be considered a gift or grant (4d.) Check with the DPA lender for specific guidelines of where to insert the DPA into the NEW URLA in either 4b. or 4d.
Some DPA programs are originated at the first mortgage lender and the first mortgage and 2nd DPA program are underwritten together. Other DPA programs require separate submissions, such as county SHIP loans, that piggyback with a first mortgage such as the Fannie Mae HomeReady and Freddie Mac Home Possible 97% first mortgages and FHA first mortgages.
The TWO BEST TOOLS to have in your toolbox when using DPA:
For a fee, sign up at Down Payment Connect within DownPaymentResources.com to promote that you provide DPA! Within Down Payment Connect, you get an incredibly detailed program overview of over 2000 county, city and state DPA programs and many proprietary programs across the U.S.
Find a HUD counselor at HUD.gov who can provide Pre-Purchase Counseling and Pre-purchase Homebuyer Education Workshops and send borrowers to them!

As you can see there are a lot of details to put in order. If you are a DPA provider, loan originator, realtor or HUD housing counselor who would like to help us expand this DPA matrix that provides details that can help our industry better utilize DPA programs, please contact us or call Pam Marron at 727-534-3445 .

Are you ready to claim your DPA? See if you are eligible by finding a DPA program for you!

Pam Marron | NMLS# 246438

Innovative Mortgage Services, Inc. | NMLS# 250769

A Stigma of Originating Loans with Down Payment Assistance (DPA) Exists.

Wed, 19 Jan 2022 21:57:36 GMT

Why Loan Originators Need to Get Over It.

Programs that work with down payment assistance (DPA) have been around for years, but DPA program availability has not been as plentiful as it is right now. Prior to 2021, funding for state and county DPA programs was minimal if any. But wholesale mortgage companies did have proprietary down payment assistance that didn’t depend on state and federal budgets, and because of this, these programs became very popular. Currently, most state and federal DPA programs are funded and the increased variety of these programs along with proprietary wholesale mortgage DPA programs are especially beneficial to licensed mortgage brokers who can use all of these programs.

Still, as I talk to loan originators, negative perceptions of DPA programs exist. Why are loan originators often adverse to originating loans that include down payment assistance? Here’s a list of reasons, and why these reasons can be overcome.

For mortgages that include DPA, there are often two sets of underwriting guidelines to know to qualify a client. One is for the first mortgage and one is for the DPA 2nd loan. This is a great deal of criteria to be aware of.

Combining the criteria for the 2nd DPA loan to the first is a matter of obtaining the DPA 2nd guidelines and assimilating them with the 1st mortgage guidelines. At Clients2Homeowners.com , this was started by providing the links for DPA programs in Florida. Loan Originators can go to DPA websites throughout the state and retrieve underwriting criteria to check client qualifications such as income eligibility, what kind of mortgage and house type the DPA is available with, minimum credit scores, and more. After locating eligible DPA, find the 1st mortgage programs you can originate that allow for a DPA loan to be included and get signed up with those DPA programs!

Downpaymentresource.com is a national database of almost all state and federal DPA programs and also includes many wholesalers and proprietary DPA programs. The site has a separate program for loan originators, real estate agents, and lenders that provides accessibility to clients looking for DPA through Down Payment Connect .

Most of the programs have an income cap that is perceived as being low resulting in a lesser selection of lower-priced homes to purchase. In today’s real estate market, many think the limit on income, (therefore sales price) puts consumers wanting or needing to use DPA programs out of the current highly competitive real estate market.

There is an income cap on most DPA programs. However, the maximum income is higher than you think! Go to these links for Area Median Income (AMI) Income caps per program requirements:

✓ Federal Housing Administration (FHA) Housing and Urban Development (HUD) income limits

✓ Fannie Mae Area Median Income Lookup Tool

✓ Freddie Mac Home Possible Income and Property Eligibility Tool

Please note that you may need to insert an address to pinpoint income. Some programs base income on total family size while others base income on the homebuyer qualifying for the mortgage.

Loan originator compensation is lower for programs that include a 1st mortgage and a 2nd DPA loan to worry about.

Often true. But many DPA programs underwrite the 1st and 2nd DPA loan with one underwrite! Also, the DPA available can be sizeable and can cover DPA and closing costs. In today’s sellers’ market, having another source for DPA and closing costs where no contribution for the seller is needed can put a borrower in the running for a home!

Loan originators need to be approved by the entity providing the DPA programs and may not be when the program is needed. Further, contract deadlines will need to be longer when these loans are originated.

DPA agencies usually require a one-time or once-a-year registration. And many of the DPA agencies will look at the DPA application parallel to submitting the first mortgage, and even as a credit-only submission.

Clients2Homeowners.com is a website that was made with the initial purpose of introducing loan originators, realtors and prospective homebuyers to the services of HUD-approved housing counselors who help clients who are getting “mortgage ready”, throughout the process of purchasing a home, and even with post-purchase issues. Resources to help prospective homebuyers include information about down payment assistance , credit help (NO, not credit repair! And YES, building credit and help with student loans!) home budgeting , and how to find a HUD approved counselor for what is needed.

Especially now in this sellers’ market, utilizing down payment assistance can be a benefit for loan originators. There are even DPA programs that allow renovation.

Are you ready to claim your DPA? See if you are eligible by finding a DPA program for you!

Pam Marron | NMLS# 246438

Innovative Mortgage Services, Inc. | NMLS# 250769

Become Familiar with Unique Mortgage Program Benefits, Embrace Tech Used by Young Homebuyers and Investigate Services to Help More Buyers Purchase Homes

Wed, 22 Dec 2021 21:20:36 GMT

Loan originators have a toolbox of mortgage products that can assist clients purchase or refinance through these unusual times. When a challenge occurs, pay attention to services available and to acceptable methods that can ultimately assist purchasers. And make sure realtors know about these details!

Have you experienced a “hard to do” loan but the end result made you aware of new options that could help more clients? Don’t shy away from assisting Millennial and Gen Z potential homebuyers. Options they use can help you with other clients!

✓ Many younger buyers now use no frill, basic phone apps like “Chime” for banking that don’t require monthly costs. “Cash App” is used to transfer rent. Printouts from these apps to get common mortgage information needed can be tricky and may include other funds that need to be explained, but the basic “who the funds go to” and “how much” can be shown.

✓ Freddie Mac Home Possible just reduced the cost for purchasing multi-family 2-4 units to 95%LTV for owner occupied purchasers at or below 80% Area Median Income (AMI) . This makes these units often scooped up by investors more affordable to purchasers who don’t mind having their primary home attached to a tenant’s home. Young purchasers are more open to purchasing multi-family homes that are often older properties and sometimes in less-desirable areas. These buyers see these attached dwellings as income producers that can help with the mortgage payment, and they often improve common areas with shared amenities like a garden or space to relax.

✓ In the credit category, did you know that a credit report that uses Meridian Link can pinpoint exactly which credit bureau a Rapid Rescore needs to be directed at? Meridian Link can break down the payment history for each of the three credit bureaus, Trans Union, Equifax and Experian, for each creditor on a credit report. Finding out which credit bureau is providing negative information enables a quicker resolution with less cost.

✓ HUD approved housing counselors can provide specific credit help, whether just building credit or assisting with credit issues that need to be resolved. THIS IS NOT CREDIT REPAIR. HUD housing counselors can work with clients not yet ready to purchase and the cost is minimal. Seek out HUD counselors who have the expertise you need for clients and refer clients to them. The benefit comes when you have developed a pipeline of future clients who are prepared for a mortgage because of the attention provided by these HUD counselors. For more information visit our home budgeting page .

✓ Know what Down Payment Assistance (DPA) programs are available and what the criteria is for clients. More and more clients are needing help with funds because sellers don’t need to contribute funds in today’s competitive market. Qualify your clients upfront with DPA assistance and put them in the competitive mix for a home. For more information visit our down payment assistance page .

✓ Fannie Mae will allow student loans to be paid off with a refinance without charging loan level pricing adjustments (LLPA) for a cash-out! This is especially useful for homeowners with student loans coming out of forbearance.

Call for more details, 727-534-3445 .

Visit our getting mortgage ready page to start budgeting for a new home.

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Freddie Mac Introduces Lower 95% LTV Home Possible Mortgage for 2-4 Unit Multi-Family Properties!

Wed, 17 Nov 2021 17:11:37 GMT

In their quest to make homes more affordable, Freddie Mac reduced the maximum loan to value (LTV) for multi-family units to 95%, a reduction of 10% down payment previously needed. Further, this financing will allow a total loan to value (TLTV) up to 105% with permitted secondary financing that is an Affordable Second.

Have you considered showing 2-4 unit properties to younger and older prospective homebuyers to live in as a primary residence? If yes, you might want to check your market for the availability of these properties that just got more affordable to purchase.

There is an income cap for this Home Possible loan of 80% Area Median Income (AMI) which can be found on the Freddie Mac Home Possible Income and Property Eligibility Tool. First-time homebuyers must complete a Homeownership course. The minimum credit score is noted as 620, and the Freddie Mac Loan Prospect Advisor must receive an approval.

If the homebuyer purchases the multi-family unit to owner-occupy one of the units, rental income of the other units can be used. Click here for details .

This program is especially beneficial in areas where multi-family units are more plentiful. This could boost younger buyers looking for a first home and don’t mind having their home attached to other dwellings that can also produce rental income. To qualify for this loan, you must occupy one of the units.

Multi-family units are often overlooked by families or are sold to investors. But in my area of Florida, I’ve been surprised by the interest in multi-family dwellings by younger potential homebuyers and even retirees that want to be closer to neighbors. I’ve even seen a communal garden pop up in the courtyard of one of these properties!

Look into this updated Freddie Mac Home Possible program that just made purchasing a 2-4 unit property more affordable!

If you are a client, loan originator or realtor who wants to learn more about these programs, contact Pam today or call 727-534-3445.

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Both Fannie Mae and Freddie Mac GSE’s Offering Unique Loan Products to Boost Affordable Housing

Wed, 15 Sep 2021 20:08:10 GMT

Lower Interest Rates for Clients with 80% Area Median Income (AMI) limits are being offered by Fannie Mae now and Freddie Mac in August. Plus, Freddie Mac is offering lower down payment for 2-4 Unit Homes and Eased Manufactured Housing Guidelines on November 15th.

Fannie Mae’s RefiNow available as of June 5, 2021 and Freddie Mac’s Refi Possible available on August 30, 2021 will offer lower interest rates for refinancing Government Sponsored Enterprise (GSE) loans for homeowners that have income that is 80% AMI or less. Prior to these new loan programs, borrowers paid higher prices for lower loan amounts.

Changes to Lower Income Refinancing Programs

Common underwriting criteria for Fannie Mae REFINOW and Freddie Mac Refi Possible are:

Borrower cannot be more than 30 days delinquent in the last six months and no more than one 30-day delinquency in the last 12 months.
The property must be owner-occupied and property types include single family residences, condos and manufactured homes.
Minimum credit score of 620 is required.
Monthly Debt to Income (DTI) can go as high as 65%!!! THIS IS A BIG DEAL!
Pricing provides at least a 50 basis point (BP) reduction towards interest rate
Existing Private Mortgage Insurance (PMI) can also be reduced
Borrower can finance up to $5000 in closing costs and prepaids, but cash-out is limited to $250.
An appraisal waiver is possible at lower Loan to Values (LTV).
There is no maximum housing expense-to-income ratio. THIS IS ALSO A BIG DEAL!

Changes To Multi Unit LTVs

On November 15th, Freddie Mac will lower down payment for 2- to 4-unit homes. In the past, maximum loan-to-value ratios were limited to 85% LTV for the 1st mortgage or up to 95% Combined Loan to Value (CLTV) with an acceptable 2nd mortgage. The change also increases the limit to as high as 105% CLTV for borrowers getting down payment assistance from a subsidized source. If the subsidized amount is not available, the borrower must contribute funds of their own for at least 3% of the loan amount for a maximum 95% LTV.

Changes To Manufactured Housing Loan Programs

Additionally, Freddie Mac will ease guidelines for manufactured housing loans. Also, multi-family units through the GSE’s required a higher LTV with down payment as high as 25% even when the property is owner-occupied.

All of these programs are being implemented by the current administration to boost affordable housing and increase owner-occupied homeownership.

If you are a client, loan originator or realtor who wants to learn more about these programs, contact Pam today or call 727-534-3445.

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Homeownership Education on Down Payment and Unique Mortgage Products Can Help Make Housing Attainable

Thu, 19 Aug 2021 20:01:21 GMT

U.S. Housing supply has become less affordable, and what is available is in short supply. Homeownership education can introduce prospective homebuyers to down payment assistance (DPA), unique mortgage programs and can give clients the ability to be competitive in today’s housing market.

In a recent study by Fannie Mae , 55% of future homebuyers believe that homeownership is out of reach for them financially. In the same study, future homebuyers were asked to demonstrate their knowledge of the mortgage process and the affordable options available. Among respondents,73% were unaware of lower down payment options that range from 3% to 5% of a home’s purchase price. This is an important realization, considering that 31% cited not being able to come up with a down payment as one of the key challenges holding them back from homeownership.

Fannie Mae research also found that 64% of future homebuyers said that they expect mortgage lenders to educate them on the process, and 63% said they want mortgage lenders to show them the right mortgage options for their needs.

Finding the right resources for your clients can be tricky. Some down payment assistance programs are stand alone 2nd mortgages that can be attached to FHA and conventional loans, while others are a one stop 1st and 2nd mortgage mortgage underwritten at one lender for both. Most have income and 1st time homebuyer limitations but a few don’t have a maximum income limit.

Because there are so many details when matching 1st mortgages with a DPA program, many loan originators don’t want to do this type of financing.

But the benefit for a buyer of having down payment assistance is there is little or no need for the seller to contribute towards closing costs.

At Clients2Homeowners.com , the Down Payment Assistance tab under Get Mortgage Ready introduces clients, loan originators and real estate agents to Down Payment Resource , a national down payment assistance database. The DPA Programs tab provides a searchable list of city, county SHIP and state DPA as well as proprietary wholesale programs. And the DPA FAQ’s tells you how to apply for down payment assistance.

For more information, go to the links provided above to get started. If you are a client, loan originator or realtor who wants to learn more about programs in your area, contact Pam today, www.closewithpam.com or call 727-534-3445.

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Refinancing your home just got cheaper

Wed, 21 Jul 2021 20:04:57 GMT

Mortgage industry cheers FHFA’s elimination of 50 basis point fee on most refinanced mortgages

Original Source housingwire.com , By Georgia Kromrei

The Federal Housing Finance Agency (FHFA) is officially axing Freddie Mac and Fannie Mae’s controversial adverse market refinance fee.

Starting in August, lenders will no longer be required to pay the government sponsored enterprises (GSEs) a fee of 50 basis points when they deliver refinanced mortgages.

FHFA Acting Director Sandra Thompson said the elimination of the fee will help families take advantage of the current low rate environment.

“Today’s action furthers FHFA’s priority of supporting affordable housing while simultaneously protecting the safety and soundness of the Enterprises,” said Thompson.

The elimination of the fee is one of a number of changes the mortgage industry has asked the federal regulatory agency to make. Pete Mills, senior vice president of residential policy at the Mortgage Banker’s Association, said the move was “very positive for borrowers” and “appreciated” by the mortgage industry.

“The forbearance exiting process has gone well, the rate of exits is accelerating and the job market is strong,” Mills said. “All of those things bely the notion that we’re still in an adverse market.”

FHFA began charging the adverse market fee on most refinanced mortgages last year, due to “increased costs and risk” to the agency as a result of Covid-19.

Critics of the policy, however, said that it was simply a way for the GSEs to increase their capital levels during last year’s historic refinance boom.

The GSEs have also performed well throughout the pandemic. In the first quarter of 2021, Fannie Mae reported $5 billion in net income, and Freddie Mac reported $2.8 billion in earnings.

The elimination of the adverse market fee is one of the first decisive policy actions the agency has taken since a long-awaited Supreme Court decision allowed President Joe Biden to fire the FHFA’s director at-will. Within hours of the decision, Biden removed FHFA Director and Trump-appointee Mark Calabria, a libertarian economist, and installed Thompson to lead the agency.

In her first weeks directing the federal regulatory agency, Thompson has said expanding access to credit in communities of color is a top priority.

In June, FHFA also announced that its servicers must adhere to the Consumer Financial Protection Bureau’s additional procedural requirements governing the foreclosure process a full month before it takes effect.

Contact Pam today or call 727-534-3445 if you want a lower cost refinance!

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Mortgage Calculators Miss These Four Things

Wed, 26 May 2021 21:09:27 GMT

Most mortgage sites have a handy calculator to assist clients in calculating a probable mortgage payment for a home. Calculators are a great tool for getting a rough idea of your monthly payments. However, there are a few details that you want to make sure are clarified when looking at individual properties.

Private Mortgage Insurance (PMI)

Conventional PMI factors are different FHA Mortgage Insurance Premiums (MIP) and VA Funding Fees. Conventional PMI can be financed and can vary based on credit score and loan to value.

All of these factors make it nearly impossible for a mortgage calculator to accurately predict your monthly payment. A loan officer can ask you the right questions to find out which mortgage insurance is best for your circumstance.

Taxes

Taxes may or may not have the homestead exemption discount included and are based on the current owner’s status. This can vary your 1st-year taxes and pre-qualification for a mortgage.

Some communities also have Community Development District (CDD) taxes that are in addition to common property taxes. Make sure that these extra taxes are included in your payment calculations. Check with your realtor or mortgage professional to confirm this cost on each property.

Homeowners Association Fee (HOA)

Some neighborhoods have an HOA Fee for neighborhood services and these can be paid monthly, quarterly or annually. Even though this payment is paid separately to the homeowners association, this monthly payment is factored into eligibility for your mortgage pre-qualification.

Credit Score

Your middle credit score plays a role in the interest rate and conventional PMI factor. Credit score does not affect mortgage insurance for FHA, VA and USDA loans but it can affect your interest rate for these types of loans.

Know what kind of mortgage you qualify for from a mortgage professional so that you can have accurate information to determine your full house payment.

Find out your true out-of-pocket monthly payment. Contact Pam today or call 727-534-3445.

Pamela M Marron, NMLS#246438

Innovative Mortgage Services, Inc, NMLS#250769

Down Payment Assistance (DPA) Options Have Never Been More Plentiful For Loan Originators And Especially Mortgage Brokers

Fri, 02 Apr 2021 19:51:40 GMT

See How DownpaymentResource.com Helps Loan Originators And Realtors Assist Clients Who Need DPA

One of the most needed resources for clients who wish to purchase a home is down payment assistance. But in 2020 when some federal and state funds were diverted to assist homeowners and renters to stay in homes during the height of the pandemic, the emergence of wholesale and some proprietary DPA programs came to the forefront. This not only expanded the availability of needed DPA funds but also provided awareness of the variety of programs with a slight advantage to mortgage brokers who can utilize wholesale DPA in addition to city, county SHIP, and most state programs.

Homebuyers who need closing costs assistance from the seller often compete with cash buyers and flippers who don’t. Any advantage for the homebuyer is sought and down payment assistance can provide that advantage by providing funds needed for down payment and/or closing costs through a DPA source rather than seller assistance.

Down Payment Assistance Resources

Down payment assistance has been available to consumers for a long time, but the variety of programs available now has not. For loan originators that wish to use as many of these sources as possible, Downpaymentresource.com offers this variety state by state. The site is included on Stellar MLS platforms for real estate agents to sift through for available DPA to refer to clients.

Loan originators can generate leads from this source as well (for a fee) on the Down Payment Connect side with a personal landing page and website link promoting that the loan originator can provide DPA programs for interested clients. Customized selection of which programs a loan originator can provide that will show up for qualified clients is included.

Matching The 1st Mortgage To The Second DPA Loan

The biggest problem loan originators have with down payment assistance is matching the DPA guidelines with the 1st mortgage product. Many originators have had the experience where a client fits all of the criteria for the first mortgage, but the loan is denied for criteria not met with the down payment program. The best benefit of all (to me!) with Down Payment Connect is the detailed description for ALL down payment programs on their own page, including who to contact and an updated status on funds availability at the top of each program description.

Blended Programs

Some DPA programs are offered by resources that provide a blended 1st and 2nd mortgage program so that client qualification criterion is easily matched. Land Home Financial Services , a national wholesaler that provides a blend of the 1st and 2nd mortgage, offers an easy to follow yet comprehensive DPA Program Comparison Matrix for the FHA and two conventional programs that their company offers.

DPA 2nd Mortgages

And, even if the DPA program that is offered is only a second mortgage that needs to be matched with a first mortgage, the Down Payment Connect DPA Directory provides a link to participating provider lender websites to check criteria.

Next Blog

The difference on how to input DPA grants and 2nd mortgages in the NEW URLA and Fannie Mae DO/DU correctly coming up!

Contact me today to learn more about loan options for every type of buyer. Call 727-534-3445.

Rising Mortgage Interest Rates | Three FOMO Issues And How To Overcome Your Anxiety

Wed, 17 Mar 2021 20:18:02 GMT

Rising interest rates along with surprise about lack of homes available for a purchase are causing anxiety among prospective buyers. I am noticing three distinctive classes of buyers and how they are affected by rate changes.

1) You are Already in Market, qualified for a mortgage, and just waiting for the right home.

If you’ve been in the market, you know inventory is low and every decent property has multiple offers right away with some over the asking price. As you search for your home, you see that interest rates are creeping up, costing you more money as you wait.

2) Rising Rates Have Triggered You To Get Qualified

You’ve been thinking about buying, but you were waiting for rates to go lower. You are now seeing rent prices creep up and know that with rates on the rise, purchasing is more important than ever before your monthly payments become unmanageable.

3) You’re Getting Mortgage Ready Because Of Credit, Student Loans, Need For Down Payment, Or Other Issues

You’ve been pre-qualified and are told that you need help with credit, down payment or a student loan refinance. You are now dealing with getting these issues and others fixed but also need to be aware of the timeframe to do so.

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Each of these classes of buyers have their own challenges; however, the solution is relatively the same. Be prepared!

For our Already In The Market buyer, make sure you can make an offer quickly, with funds available even from a down payment program that makes you competitive with cash buyers and flippers that don’t ask for seller costs to be contributed. This requires a mortgage broker to be available and vigilant to help you plan with your current credit and financial circumstances. Don’t pursue any major purchases like a car or employment changes that may affect your buying power.

For our Pre-qualifiers , work with your mortgage broker to get credit scores up and budget for funds, including a down payment program that you can qualify for now. Hold off on opening more credit unless it's advantageous for you to do so and your mortgage broker can help you with this. Know what you want, what you can afford, and understand compromises before you find the home of your dreams.

For our soon to be “Mortgage Ready” clients, there are specific programs that can:

help get your credit in order and credit scores up!
Refinance student loan debt whether current or delinquent
Provide down payment assistance based off of income and credit scores
Specifically for Millennials and younger purchasers, budgeting resources are also available.

Visit https://clients2homeowners.com for more information about Getting Mortgage Ready.

I’m here to help in any way I can. Close With Pam is all about planning for your future and making sure you are comfortable with your home buying options.

I know the economic landscape is changing for many people. Fortunately for you, I’ve been helping clients for 36 years and know how to navigate every type of marketing.

Contact me today to learn more about loan options for every type of buyer. Call 727-534-3445.

Getting Clients Mortgage Ready

Sat, 23 Jan 2021 17:26:03 GMT

Whether you are a client who needs assistance or a realtor or loan originator who needs help for your client, help is available!

Pilot Program Started to Connect Independent Loan Originators to Housing Counselors to Get Clients in Need of Assistance “Mortgage Ready”

In June 2016 after being appointed by (then) U.S. HUD Secretary Julian Castro to be on the HUD Housing Counseling Federal Advisory Committee (HCFAC), I learned how much pre-purchase work housing counselors provide to clients who aren’t quite ready to purchase a home yet.

Housing counselors already work with bank loan originators and their services are often funded by Community Reinvestment Act (CRA) funds provided by banking institutions. But independent mortgage loan originators don’t have CRA funds.

What if trained housing counselors could provide needed assistance for clients of independent loan originators… and those loan originators could offer an incentive towards mortgage closing costs for their clients who engaged with housing counselors to prepare for homeownership?

Out of this came a grass root pilot program that connects independent loan originators and realtors to HUD approved housing counselors for specific help for clients that includes in-depth help with credit issues and building credit, assessment for down payment assistance programs and budgeting for a home.

A way that clients in need can get help from housing counselors and get a credit from a referring loan originator towards their mortgage closing costs was developed to encourage independent loan originators to utilize housing counselors for their clients.

How Mortgage Ready Works

A client comes to an independent loan originator or is referred by a realtor to an independent loan originator. The client is determined to need assistance with 1, 2 or all of the services noted below:
in-depth credit help or building credit. Credit correction with the client’s involvement, rather than credit repair with disputes that simply hide credit issues.
down payment assistance (DPA) assessment: county, city, state and wholesaler DPA programs
budgeting for a home
The client pays a set fee upfront for specific housing counseling services. Currently this cost is $275 plus credit report. The referring loan originator signs a Memorandum of Understanding (MOU) and agrees to provide a credit for housing counseling services paid upfront towards the client’s closing costs if the client returns to the loan originator for a mortgage.
The housing counselor assesses the client for needed assistance and determines what time frame it will take to get the client ready for a mortgage. The housing counseling agency will not only assess the client for state, city and local SHIP DPA programs but will also assess for wholesaler DPA programs that independent loan originators are able to utilize!
When the client is “mortgage ready”, the housing counselor notifies the independent loan originator. The client can go to another lender for their mortgage but the credit towards closing costs promised through the MOU will only be provided by the referring loan originator through that loan originators mortgage company.
The loan originator refers the client back to the initial referring realtor or a new realtor and informs the realtor of any DPA programs to be used.
Per the initial MOU, a credit for the pre-determined dollar amount of housing counseling fees is provided on the clients Loan Estimate and Closing Disclosure. The Closing Disclosure is provided to the housing counseling agency to insure credits provided under the initial MOU are provided to the client.

What Mortgage Ready Looks Like

Benefits of Pilot Program

This process provides a funding alternative for client housing counseling to loan originators that change employment from a bank that pays for housing counseling services through CRA funds to working as an independent loan originator with a mortgage company. Loan originators are able to utilize housing counseling services with continuity whether they work for a bank or for a mortgage company.

This pilot program provides trained HUD housing professionals to assist clients with issues that are preventing the client from gaining homeownership. Loan originators have varying levels of success with helping clients and detailed client needs can tend to take longer when loan originator business picks up. HUD housing counselors concentrate on getting clients ready for a mortgage.

This option provides an avenue for ALL clients who want to purchase a home but aren’t in a position to do so yet! The playing field is leveled… determined clients pay for services upfront with an MOU that promises a credit for the upfront cost when the work is done and the client closes on a home!

This method provides introduction of above low to moderate income (LMI) clients to housing counselors who can provide assistance with no income maximum requirement!

Realtors become more aware of how housing counselors can help their clients… when they get the home purchase referral back when the client is “mortgage ready”!

Housing counseling provides assistance with credit correction by working with the client to correct issues once and for all. Housing counseling agencies used in this pilot program have in-depth credit training and should not be considered a credit repair company.

Housing Crisis Credit Issues

Sat, 09 Jan 2021 17:16:03 GMT

Foreclosure code still affects the credit code of past short sale, modification and even deed in lieu credit.

I can spot where the issue is and find if this will provide a problem for clients who’ve had these mortgage issues. The foreclosure code can stall a new conventional loan for 7 years and produce a conventional loan denial, specifically in Freddie Mac. Foreclosure code is not visible on the face of a credit report but is visible and noted in Fannie Mae and Freddie Mac automated underwriting systems (AUS) findings. Ensuring that a potential at risk client is clear of this issue by running the mortgage through both Fannie Mae and Freddie Mac systems is imperative so that the client doesn’t learn of the problem at the last minute and be forced to accept a higher interest rate non-QM loan.

Reviewing credit through another tool to make sure of an exact foreclosure date that is hidden by bankruptcy can also be done.

What's The Difference Between A Bank And A Mortgage Broker?

Fri, 18 Dec 2020 18:39:52 GMT

What's The Difference Between a Bank and A Mortgage Broker? This 2-minute video will explain everything.

Mortgage brokers are not part of a big corporation or a bank. They do not have multiple priorities or a variety of investments. Mortgage brokers do one thing, and they do it better than anybody else.

Mortgage brokers shop for great deals on mortgages!

Why do you need a broker to shop for you? Because you need an advocate on your side. You need choices, lots of choices. Choices set up competition, and that is good for you!

Banks can only offer you what they have to sell, but a broker can compare deals from hundreds of banks all over the country. They can organize the information based on your needs. Offering you the best terms and the best rate.

You can do it alone, but why take the risk of missing out on the best rate. Or worst, spending 100s of hours shopping for a mortgage when you could be shopping for a home.

Contact Pam Marron today. She can shop for your loan while you shop for the perfect home.

closewithpam

Why Every City Should Consider ADUs

ADUs Increase Revenues For Cities

ADUs Encourage Multigenerational Living

ADUs Add Vacation And Rental Units

Increased Security Of ADUs

Common Misconceptions About ADUs

How Fannie Mae And Freddie Mac Support ADU’s

What City Planners And Developers Can Do To Learn More About ADUs

Down Payment Connect is a Game Changer for Mortgage Loan Originators

What Each DPA Program Page Contains

The information provided in this article is tip of the iceberg!

Education Series for Most Needed Services to Assist Clients Trying to Get “Mortgage Ready”

Focusing on Specific Client Needs, What Tools Can Be Used to Assist, and How to Bundle Targeted Services to Reduce Costs

1st Series Article: Getting a Client “Mortgage Ready” by Working on the Best Possible CREDIT Before Starting Anything Else Is the 1st Step.

1. What Dispute notification in Fannie Mae Desktop Originator/Underwriter Findings looks like

2. Fannie Mae Selling Guide Directions to follow for deletion of noted Disputed Credit Report Tradelines

3. How to use CreditXpert What-If Simulator to check what credit score will be when dispute is removed

When Fannie Mae AUS Findings Require the Removal of a Dispute, Use CreditXpert What-If Simulator to Check on Credit Score After Deletion.

First, what Dispute notification in Fannie Mae Desktop Findings looks like.

Directions for deletion of Disputed Credit Report Tradelines per the Fannie Mae Selling Guide

How to use CreditXpert What-If Simulator to check credit score if Dispute removal is done.

When Inaccurate Credit Exists on the Credit Report, Use Five Fannie Mae Codes in Desktop Originator/Underwriter to Submit Correctly

When inaccurate credit exists on a credit report for mortgage delinquency, bankruptcy, foreclosure, short sale and extenuating circumstances, there are five entries that can be used in the Fannie Mae Desktop automated underwriting system (AUS). ﻿

WHAT Code To Use

Confirmed Mtg Del Incorrect

(Confirmed Mortgage Delinquency Incorrect)

Underwriting when the Credit Report Contains Inaccurate

Confirmed CR BK Incorrect

(Confirmed Credit Report Bankruptcy Incorrect)

Underwriting when the Credit Report Contains Inaccurate Bankruptcy Information

Confirmed CR BK EC

(Confirmed Credit Report Bankruptcy with Extenuating Circumstances[1])

Underwriting when a Bankruptcy Was Due to Extenuating Circumstances

Confirmed CR FC Incorrect

(Confirmed Credit Report Foreclosure Incorrect)

Underwriting when Inaccurate Foreclosure Information Exists

Confirmed CR FC EC

(Confirmed Credit Report Foreclosure with Extenuating Circumstances)

Underwriting (Foreclosure) when Extenuating Circumstances Exist

WHERE to insert needed code.

Fannie Mae Job Aid gives direction on where to insert code in FannieMae.com .

Input needed code directly into xml loan application in FannieMae.com .

Loan Originators Should Consider Targeting Specific Mortgage Products

Loan Originators Should Consider Targeting Specific Mortgage Products That Are Still Being Sought By Prospective Homebuyers. The NEED is There.

Are You A Fixer or Referrer of Client Problems? Home Prep is Being Developed to Help Both Types of Loan Originators.

Home Prep is Being Developed to Help Both Types of Loan Originators.

Five Common Issues

Credit: Short-term help

WHY the 6th and Final Step of the Home Prep Pilot is Critical to Getting Clients “Mortgage Ready”

Below are 5 common issues that often prevent clients from getting a mortgage. ﻿

Customized Resource for Mortgage Loan Originators (MLO) to Assist Prospective Homebuyers to Get Mortgage Ready!

The Key To Helping Future Homeowners

IMPORTANT: Credit help IS NOT credit repair!

A few things have been learned along the way.

Need a Solution to Clearing Past Credit Problems That Can Result in a Mortgage Denial?

Do These Safeguards PRIOR to Giving a Mortgage Pre-Approval!

Run Loans Through the Fannie Mae Automated System (AUS) UPFRONT

Why is running a loan through the Fannie Mae AUS UPFRONT so important to do?

Other past credit issues that need to be checked on PRIOR to giving a mortgage Pre-Approval

Help for Mortgage Loan Originators (MLO) to Connect Clients to Assistance for Credit Issues, Down Payment Assistance, Student Loan Refinancing and More is Coming

DO SAFEGUARDS UPFRONT!

PEOPLE PLACES TALK ABOUT TOWN Getting Mortgage Ready & New Mortgage Opportunities for Personal Wealth Building

A Story That Sheds a Bright Spot on Client Mortgage Issues of Today

Ensuring that Past Issues Don’t Prevent Mortgage Prospects from Obtaining a New Mortgage Needs to be Priority #1 for Mortgage Loan Originators (MLO) to Clear UPFRONT!

Does your loan have lingering credit issues? Here's what to look for and where to start.

WHY is Prospect pre-mortgage attention so important?

Confusion Still Exists About Down Payment Assistance (DPA) for Many Loan Originators.

Here’s How to Organize DPA for Your Area and Start Selling!

Resources and Marketing

How To Build a Sustainable Mortgage Pipeline

Need to build a sustainable pipeline?

10 Things to Remember When Using Down Payment Assistance

For Loan Originators and Realtors:

A Stigma of Originating Loans with Down Payment Assistance (DPA) Exists.

Why Loan Originators Need to Get Over It.

Become Familiar with Unique Mortgage Program Benefits, Embrace Tech Used by Young Homebuyers and Investigate Services to Help More Buyers Purchase Homes

Freddie Mac Introduces Lower 95% LTV Home Possible Mortgage for 2-4 Unit Multi-Family Properties!

Both Fannie Mae and Freddie Mac GSE’s Offering Unique Loan Products to Boost Affordable Housing

Lower Interest Rates for Clients with 80% Area Median Income (AMI) limits are being offered by Fannie Mae now and Freddie Mac in August. Plus, Freddie Mac is offering lower down payment for 2-4 Unit Homes and Eased Manufactured Housing Guidelines on November 15th.

When inaccurate credit exists on a credit report for mortgage delinquency, bankruptcy, foreclosure, short sale and extenuating circumstances, there are five entries that can be used in the Fannie Mae Desktop automated underwriting system (AUS).

Below are 5 common issues that often prevent clients from getting a mortgage.