�ݺ�ߣ

Editor's Notes

• #2: Introductions I’ll stop every once in awhile and ask questions Sticky notes around the room Restrooms are XXX Please silence your phones. If you’re not big on taking notes, I’ll show you where to get this presentation online.
• #6: What is going on in the mortgage industry? - QMs, ATR, TRID (spells “dirt” backwards) - Watch Something had to be done. Lenders weren’t policing themselves. Consumers weren’t policing themselves. Buying my Toyota Matrix. A lot of people approach home ownership the same way that Toyota salesman approached auto sales. Most people come into my office and say, “How much home can I afford?” When, for most people, the more important question is, “What payment are you comfortable with?” - Me making $50K/year versus a person w/ 3 children making $75K/year. - All these rules and regulations were designed to police both lenders and consumers. What’s been the result? Is it working? The laws are extremely complex. Technology. Appraisal disclosures vs LE vs CD. Mail vs email. Are the regulations too tight? Are there people who should be getting loans that can’t qualify? Sure... Paperwork often directly related to affluence. Are we still giving loans to people we shouldn’t give loans to? Yes, sometimes we are. The same rules apply to everyone DTI: $60,000 gross @ 45% = $2250/mo debt 25% Federal tax 6.2% social security 1.45% FICA $3367.50 net $2250/mo debt = $1117.50 $240,000 gross @ 45% = $9000/mo debt 33% Federal tax 6.2% social security (up to $117K) 1.45% FICA $12,505.50 net 9000/mo debt = $3505.50
• #7: This is not 2005. It’s a painful process. Everything is triple checked. The guy that has to close 10/31. I need EVERYTHING 10 days before closing.
• #8: A conforming loan is any loan that conforms to guidelines set forth by FNMA and FHLMC. A conventional loan is any loan that is NOT insured by the US government. A non-conforming loan does NOT conform to guidelines set forth by FNMA and FHLMC.
• #9: For whatever reason these loans don’t meet “saleable” guidelines. Also called portfolio loans. Washington Federal, First Federal, Sound Community Bank. These are gonna be your one offs. Remember, GSEs determine guidelines for other loans. With the exception of credit overlays, we’re all selling the same product. We talked about how government and conforming loans should have similar interest rates, right? Stick with the car analogy… ALL that flies out the window with non-conforming loans.
• #10: We have our own jumbo programs Correspondent relationships And brokered relationships
• #11: These – at least at NAF – are going to be brokered. Funky people are people who don’t fit into the FNMA/FHLMC/Government Mortgage “mold” These are people in the past that we called Alt-A or Subprime borrowers. Does everybody understand QM and ATR? Ability to Repay Verify credit history, income, assets, employment, mortgage payments, and other debt obligations. Qualified Mortgage Points and fees < 3% of loan amount No risky features (interest only, balloon payments) Loan term of 30 years or less Lender consideration of income, assets, and debts Debt-to-income ratio of 43% or less OR saleable loan (FNMA/FHLMC, government) But they’ve changed a lot. I think days of giving someone a mortgage who has no down payment, a 500 FICO, and 1-day out of BK are over. Who are these people? Recent major derogatory credit: Bankruptcy, foreclosure, short sale.Chapter 7 BK: 4y CC / 2y FHA/VAForeclosure: 7y CC / 2y VA / 3y FHAWe have a lender that will allow only 1y from BK/FC. Requires 20-25% down, great credit score, cash reserves
• #12: Off the grid – even if not entirely We’re not talking about geodesic domes OR houses made out of shipping containers Any questions about conventional non-conforming?
• #13: Bastards of the lending industry A single entity (person, investor) can’t own more than a certain percentage of the total units (10% for projects w/ 21 or more units) Commercial space can’t exceed 25% No timeshares HOA can’t be involved in litigation HOA has to have a certain amount of insurance. Only a certain percentage of owners can be delinquent in their HOA dues. Not all condos are eligible. FNMA/FHLMC has their own approval process FHA has their own process VA has their own process Just b/c a condo will work for FNMA/FHLMC, doesn’t mean it will work for FHA. VA is a different process – 3 in Clallam Co and 2 in Jefferson Co USDA uses FHA’s list.
• #14: Many lenders do not lend on manufactured homes. Period. L&I inspections? Look for things that couldn’t possibly be original to the home. Remember when we talked about credit overlays? That’s a really popular overlay. FNMA allows manuf. FHA/VA allow manuf. Many lenders do not.
• #15: Renovation loans can be either FHA or conventional loans. Same underwriting standards, down payment requirements, etc. Finance the cost of renovation/repairs. It can be really obvious. Or not! Use for: Listings that otherwise would be “cash only” Dated listings Love the neighborhood/hate the house Can’t find what the buyer wants Tips: Work w/ a renovation specialist SHOW buyers what they could do w/ the property
• #16: solar heating systems, including solar systems for heating water for domestic use, solar heating and cooling systems, caulking and weather-stripping, furnace efficiency modifications limited to replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights, clock thermostats, new or additional ceiling, attic, wall and floor insulation, water heater insulation, storm windows and/or doors, including thermal windows and/or doors, heat pumps, and vapor barriers.
• #18: Show the tax credit. Clallam income limit is $75K for 3+ people / Jefferson is $70K and $80K Jefferson acquisition limit is $305K Questions about DPA or MCC?
• #19: If I can’t help your customer, I probably know someone who can. When I say I go the extra mile… Tristan and her water bill.