August 30th, 2012 11:26 AM by Eric Fang
Not much news from the industry. Except HARP 3is possible, but not sure whether non-agency loanswill be included or not. Also, the LTV will be lowered to 65% for 5-10 financed properties rentalRefis. The effctive date will be Oct 22nd.
There are some failed(saome can be saved) loansrecently(percentage is still small, compared to over 70 loans closed in August):1)Mortgage lates within last 12 months.Lenders still care about that.2)Tax reurns. On schedule E of the returns, better not choose the type "E" unless if istruly a commercial property. We have one loan almost failed because of that.3)2 Primary loans within 12 months. We have one loanwas countered when the borrower purchased a primary5 months after refinance the existing primary loan.Now the lender would not approve the new primaryunless the previous primary will be refinanced asa rental.4)Excess Rental Repairs on REO purchased. This willaffact the loan qualification. One case is that theborrower purchased the property end of last year with around $1k rental income and $10k loss. the lenderwill count the rental loss to the qualification whichfailed the loan.
The rates still stay within the range. That's the similarstories as the economy, the stock market, etc. Everythingstuck in between. There is no further sign of theimprovement yet.