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Now WhatNow What……Understanding the Understanding the Recent Industry Changes.Recent Industry Changes.
Bill Kelly Mortgage Consultant617-715-9814
bkelly@mortgagenetwork.com
Keeping you updated with the ever changing mortgage industry…HVCC, MDIA, Condo Guidelines, Credit Scores & Adjustments
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Home Valuation Code of Conduct Home Valuation Code of Conduct -- HVCCHVCC
Loan officer can no longer select or influence the selection of the appraiser for a specific transaction.
Third party professionals can no longer supply information on the valuation
If the program changes from a Government Loan to non-government loan, we must order a new appraisal.
No longer receive a courtesy call from appraiser if a potential value problem exists.
Mortgage Network is managing an in-house appraisal dept., allowing us to maintain some control over the process and fees.
We are not going through a third party national company.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Mortgage Disclosure Improvement Act Mortgage Disclosure Improvement Act -- MDIAMDIA
Truth In Lending (TIL)
Once the borrower signs the initial TIL, if any changes need to be made, a new TIL will need to be signed.
Here’s what can effect the APR:
Loan Amount
Loan Program
Closing Date
Closing Costs (Points and other fees)
The loan can be scheduled to close after 7 business days of the signed & received initial TIL, and 3 business days of the signed & received re-disclosed TIL.
The good news to all of these changes is that the closing should be smooth, timely and have no surprises.
Last minute changes will delay the closing…
3-7 business days!
Example of Truth In Lending
New MDIA language that is required.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Condo Financing TodayCondo Financing Today……
If financing an Established Condo:
FNMA owner occupancy is never an issue, if our borrower is owner occupant.
FHA requires 51% owner occupancy
If financing a New Condo:
project is not completed or subject to additional phasing
less 90% of units sold
HOA has not been turned over to unit owners
70% of total units must be owner occupied
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Condo Financing TodayCondo Financing Today
To ensure a smooth and fast closing on your next condo transaction…
Have your clients pre-approved and have the Condo Project
pre-approved through Mortgage Network.
Things to look out for:Delinquent HOA dues – no more than 15% of total units can be 30 daysor more past due
No owner can own more than 10% of total units
No owner can own more than 1 unit in project of 10 or fewer unitsHO6 Insurance is required based on 20% of appraised value. If the master policy does not insure improvements & betterments (known as “wall-in”coverage)
Approved Condo Projects Secure Your Commission!
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Credit Score AdjustmentsCredit Score AdjustmentsAssumptions: Loan Amount $300,000 Term: 30Assumptions: Loan Amount $300,000 Term: 30--Year FixedYear Fixed
Credit Score Rate Point Cost of Points740-850 5.250% 0.00 $0
720-739 5.250% 0.25 $750
700-719 5.250% 0.75 $2,250
680-699 5.250% 1.50 $4,500
660-679 5.250% 2.00 $6,000
540-659 5.250% 2.50 $7,500
620-639 5.250% 3.00 $9,000
Other Rate Adjusters (minimums based on FICO Score)
• Condo 0.75
• 2 Family 1 point
• Tax Waiver 0.25
• Cash-Out 0.25
Alternative Options
FHA Financing
MassHousing
Mortgage with Points Built In5.250% $1,656.61
5.250% $1,656.61
5.375% $1,679.91
5.625% $1,726.97
5.750% $1,750.72
6.000% $1,798.65
6.250% $1,847.15
The difference between having great credit and poor credit can mean a savings of $190 month for 30 years or $9,000 out of pocket expenses in points.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Did You Know??Did You Know??
If you currently own a property that won’t sell
and you decide to rent it out in order to qualify
for your next home, you will need 30% equity
in the property in order to use the rental income,
if not, you will be required
to carry the entire debt for both properties.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Did You Know??Did You Know??
If you have less than 20% down on a new home
and your debt to income ratio exceeds 41%,
you cannot obtain mortgage insurance.
In this instance, FHA and MassHousingPrograms may be a solution.
Mortgage Network is a direct FHA & MHFA lender!Mortgage Network is a direct FHA & MHFA lender!
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Did You Know??Did You Know??
If your property has been on the market (MLS) and has been taken off the market, you cannot obtain a
mortgage on this home for 6 months or greater.
Some of our local investors will provide financingin this instance, MNI has established relationships
with nearly 20 local investors to provide solutions for your clients.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Partnerships Are CriticalPartnerships Are Critical
In these challenging times, when each transaction
takes more time and skill to bring to closing,
it is crucial that the financing be secured by
a knowledgeable mortgage professional
and a strong company.
Your clients can count on US to be sure that they are receiving the best programs and service available.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
You Need You Need OneOne GoGo--To LenderTo Lender
To Provide:
Information to keep you updated with industry changes
Solutions to assist in the ever changing market
Professionalism and Service
Experts in underwriting
Credit Analysis and Repair partnerships
Local in-house operations for smooth transactions
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Mortgage Network AdvantagesMortgage Network Advantages
Small Company Feel. Big Company Delivery.
Over 20 Years of Stability & Growth.
Local Decisions & Professional Knowledge.
Extensive Variety of Mortgage Products.
Direct Lender Offering Competitive Rates.
In-House Local Processing, Underwriting & Closing.
Approved FHA, VA, MassHousing Lender.
Specialized Lending Divisions: Portfolio, Commercial, Reverse Mortgage.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
Thank YouThank You……
If you have any questions, please call or email me at:
Bill KellyMortgage Consultant
O: 617-715-9814
C: 781-724-6995
bkelly@mortgagenetwork.com
271 Waverly Oaks Road, Suite 209 | Waltham, MA 02452
©2009 Mortgage Network, Inc. All rights reserved. Trade/servicemarks are the property of Mortgage Network, Inc. 300 Rosewood Drive, Danvers, MA 01923. Also doing business MNET Mortgage Corp. Connecticut 3785, 3790; Licensed by the Department of Corporations under the California Residential Mortgage Act Finance Lender License 603B322; Delaware 010168; Florida ML0700961; Georgia Residential Mortgage Licensee 15441; Maryland 10200; Massachusetts Mortgage Lender and Broker MC4315; Maine SLM2499; Licensed by the New Hampshire Banking Department 5573-MB; New Jersey Department of Banking and Insurance LO57549; New York - Registered Mortgage Broker – NY State Banking Department RMB NO 207384; North Carolina L113607; Licensed by the Pennsylvania Department of Banking 21978, 18304. Rhode Island Licensed Lender 95000456LL; South Carolina S5,864, MB05117060511710; Tennessee 2400; Texas Reg. 43205; Texas Regulated Loan License 10569-46959; Licensed by the Virginia State Commission Corporation ML2593. Some products may not be available in all states. This is not a commitment to lend. Rates, terms, fees, and equity requirements are subject to change without notice. Restrictions apply. Equal Housing Lender.
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