Mortgage Blog

Not much news from the industry. Except HARP 3
is possible, but not sure whether non-agency loans
will be included or not. Also, the LTV will be
lowered to 65% for 5-10 financed properties rental
Refis. The effctive date will be Oct 22nd.

There are some failed(saome can be saved) loans
recently(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 is
truly a commercial property. We have one loan almost
failed because of that.
3)2 Primary loans within 12 months. We have one loan
was countered when the borrower purchased a primary
5 months after refinance the existing primary loan.
Now the lender would not approve the new primary
unless the previous primary will be refinanced as
a rental.
4)Excess Rental Repairs on REO purchased. This will
affact the loan qualification. One case is that the
borrower purchased the property end of last year
with around $1k rental income and $10k loss. the lender
will count the rental loss to the qualification which
failed the loan.

The rates still stay within the range. That's the similar
stories as the economy, the stock market, etc. Everything
stuck in between. There is no further sign of the
improvement yet.