All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3807]

Is this you or someone else?

[Horns99 155]

Nice deal here. I'm on the fence here but am starting to look around. Is this a fixed 30 year?

[

 

Let us know what you find out there on a Jumbo. Looks like slim pickings out there

[Tailgate 3022]

29 minutes ago, UTPhil2006 said:

Is this you or someone else?

My post was not mine but from reddit. Just showing what’s going on so close to home with this crazy pandemic.

[UTPhil2006 3807]

12 minutes ago, Tailgate said:

My post was not mine but from reddit. Just showing what’s going on so close to home with this crazy pandemic.

Ah.  Keep up with it and let me know what happens.  Curious to see how it ends.

[Dnaguy 11970]

15 minutes ago, UTPhil2006 said:

Ah.  Keep up with it and let me know what happens.  Curious to see how it ends.

That’s some fake ash Russian hacker bull pucky if I’ve ever seened it.

 

tenants organizing?

Conditioning payments to when they can go to work again... which assumes EVERY one of them is not working.

And All of them Physically signed a letter?

 

 

[Wulaw Horn 19073]

So, Mr. Cooper looks like it's blowing up- not accepting any new loans... 

Never liked those guys all that much but don't need to take any more capacity out of the market right now.

 

[Rusty Shackelford 414]

Ginnie Mae Plans Disaster Aid for Virus-Hit Mortgage Servicers

(Bloomberg) -- A top U.S. regulator is working to provide a lifeline for mortgage servicers stressed by the coronavirus pandemic through programs meant to address natural disasters. 

To prepare for an expected wave of missed payments as borrowers deal with the economic fallout from the virus, Ginnie Mae is moving toward using relief programs normally implemented in the wake of hurricanes, floods and other calamities, according to a Friday blog post.

The plan under discussion would help mortgage servicers, companies that perform the critical task of taking payments from borrowers and distributing them to bondholders and others. If big servicers were to collapse as payments dry up, federal regulators would have to find other companies to take over their business.

“Ginnie Mae has the authority to make changes to the requirements of our program, and we are using those powers to tailor the existing disaster pass-through assistance programs to more suitably scale to the needs of this national emergency,” Principal Executive Vice President Seth Appleton said in the blog post. Ginnie Mae expects to implement the changes within the next two weeks, he said.

President Donald Trump has signed legislation that will let borrowers experiencing virus-related financial difficulties delay mortgage payments for months. When such forbearances are granted, servicers are typically expected to advance the cash themselves.

Liquidity Shortage

Even if borrowers never resume loan payments, servicers eventually get reimbursed by federal programs that backstop the mortgage market. In the meantime, however, firms can face a severe liquidity shortage as they continue to advance payments. Since economists expect that the virus could temporarily push the unemployment rate as high as 25%, servicers are expecting a surge of missed payments.

Ginnie Mae, which is part of the U.S. Department of Housing and Urban Development, backs bonds containing mortgages insured by the Federal Housing Administration, U.S. Department of Veterans Affairs and other agencies. The agency’s $2.137 trillion in bonds form one of the world’s largest mortgage-backed securities markets.

The disaster-relief programs -- historically used for localized disasters rather than national epidemics -- let Ginnie Mae advance payments to mortgage bondholders at the request of a servicer. A key difference in the case of the current crisis is that payments made through the program will not be considered an event of default, Appleton said.

The need for relief is especially acute among nonbank servicers, which don’t have deposits or other readily available sources of cash. After the 2008 financial crisis, banks pulled back from the programs that feed into Ginnie Mae, and nonbank firms now dominate that market.

Mortgage-industry lobbyists unsuccessfully tried to get Congress to include some sort of liquidity facility for servicers in the stimulus legislation. Still, many servicers expect the Treasury Department and the Federal Reserve to create a lifeline for servicers out of other money in the $2 trillion package.

Treasury Secretary Steven Mnuchin said Thursday that he has formed a task force to develop recommendations on whether and how to help servicers suffering from liquidity issues. The group will submit a report as soon as Monday, Mnuchin said.

Any move that Ginnie makes would likely supplement rather than replace any lending facility created by Treasury and the Fed.

[Wulaw Horn 19073]

So I said on another thread about how to deal with this in a macro way I'd advocate a mortgage and rent holiday for 2 or 3 months (and cc and SL) with government backstopping those payments and making sure lenders don't blow up.

We've got that going on- but I think maybe the feds should be more aggressive with liquidity in the servicing market and backstopping those losses than buying mortgage backeds.  

Uh, guys, it doesn't do any good to keep setting record highs in the MBS market if you don't see corresponding lowering of rates for borrowers and you see it create a liquidity freeze.  Good idea, but lets pull back some of that and move it elsewhere in the supply chain...

[UTPhil2006 3807]

2 hours ago, Wulaw Horn said:

So, Mr. Cooper looks like it's blowing up- not accepting any new loans... 

Never liked those guys all that much but don't need to take any more capacity out of the market right now.

 

Saw an email from them saying something about making sure to lock by 9pm.  Never have had to use them for anything, I think maybe one of our team members used them once, so not a real game changer for us.

[Wulaw Horn 19073]

4 minutes ago, UTPhil2006 said:

Saw an email from them saying something about making sure to lock by 9pm.  Never have had to use them for anything, I think maybe one of our team members used them once, so not a real game changer for us.

Me either. And to be clear- they haven’t blown up yet officially. They are just taking a break, momentarily, from originating loans, but worry not, your pipeline is fine. 

I think they might be the biggest servicer in the country?  So they’ve got to be taking a bath there. 

Funny story- their account rep calls all the time. They are on my loan sifter. I see a deal they are at the top of the charts on- pricing like 150 points ahead of anyone else (580 fha score type). I call them up and like- what do I have to do to get this loan done- account rep- we can’t help you- we are suing your company. 

Me- maybe you ought to take me off your daily call list then... save us both some time. 

[Your Mom 4806]

edit wrong thread

Edited March 28, 2020 by Your Mom

[Your Mom 4806]

dammit.

Edited March 28, 2020 by Your Mom

[jimmyjazz 45962]

On 3/26/2020 at 12:20 AM, Wulaw Horn said:

Bad time?  Not really. Rates are really good.  Rates not as low as one would think based upon the 10 year?  Or MBS?  Absolutely the case. 

Would you expect rates to pull down towards expected value given 10Y, etc., or should we expect them to remain elevated?

[LCHorn 2620]

Not Wulaw but I expect rates to fall a little as soon as the Fed makes clear they'll backstop servicers dealing with a cash-crunch as a result of forbearance. 

We're not that far off the lows from three weeks ago for people with good to great credit for conforming loans.  Government loans are the ones right now (see Mr. Cooper above) that are really getting hammered.  Our CEO told us to pass on anything with below a 680 credit score. 

That said, I seem to recall Jimmy that  you're more in the jumbo market and I don't expect those to come down soon. 

[Wulaw Horn 19073]

2 hours ago, jimmyjazz said:

Would you expect rates to pull down towards expected value given 10Y, etc., or should we expect them to remain elevated?

Elevated until capacity, servicing pinch and liquidity fears work its way out of the system. Once that all happens if MBS and 10 year bonds are still seen as quality then push rates lower. 

However, what I think I think about rates is that there might be a floor at something like 3 on a 30 and 2.5 or so on a 15 that rates can’t get below, because if they do it will cause this paradox that we are seeing right now. 

Now- the floor might be 2.5 and 2 (30 and 15 respectively) if the rates fall in an orderly enough fashion, but what I think I now think is its no longer possible for rates to move sharply lower and stay there without a snap back to protect the capacity in the system. 

Does that make sense and answer the question?  

Edited March 28, 2020 by Wulaw Horn

[Wulaw Horn 19073]

1 hour ago, LCHorn said:

Not Wulaw but I expect rates to fall a little as soon as the Fed makes clear they'll backstop servicers dealing with a cash-crunch as a result of forbearance. 

We're not that far off the lows from three weeks ago for people with good to great credit for conforming loans.  Government loans are the ones right now (see Mr. Cooper above) that are really getting hammered.  Our CEO told us to pass on anything with below a 680 credit score. 

That said, I seem to recall Jimmy that  you're more in the jumbo market and I don't expect those to come down soon. 

Agree with all these points. 

Maldonado what I’m telling the other people in my shop who might not think as strategically is that structuring a deal where costs are paid or you just flat skim 300 basis points might be a thing of the past. Either that or you are going to start seeing 12 month EPO’s and the like. 

Too much exposure in a falling rate environment for wholesalers to pay 300+ bips. 

I could be wrong but I think there will be a serious flattening of bips at above market rates and people are going to have to figure out how to survive on 200 bips  Like- everyone will have to figure that out. 

[AngryBevo 20]

delete

Edited March 28, 2020 by AngryBevo
wrong location

[Pato del Muerto 52504]

Just started looking into refinancing. 
4 years into an fha loan at 3.75. Should be right on the edge of 80% ltv now depending on actual appraised value and closing costs that are rolled in. 
would be nice to lose that $175 a month in MIP.  But not even sure we’ve been self employed long enough to qualify.  Need to look at bank statements and tax returns first. 

[Wulaw Horn 19073]

1 hour ago, Pato del Muerto said:

Just started looking into refinancing. 
4 years into an fha loan at 3.75. Should be right on the edge of 80% ltv now depending on actual appraised value and closing costs that are rolled in. 
would be nice to lose that $175 a month in MIP.  But not even sure we’ve been self employed long enough to qualify.  Need to look at bank statements and tax returns first. 

Two tax returns filed with some portion of business income.  I dont know how anxious any UW is going to be to give you a generous view of what that income looks like though. If your credit is decent you should be able to save a little bit on interest when you qualify and severely lower if not eliminate PMI 

[JesusSweatDuck 17781]

Can someone point me to a broker or bank that will return my calls? I have 3 houses I would like to refi (primary and 2 rentals) but can't get anyone to respond

[UTPhil2006 3807]

8 minutes ago, JesusSweatDuck said:

Can someone point me to a broker or bank that will return my calls? I have 3 houses I would like to refi (primary and 2 rentals) but can't get anyone to respond

Have you reached out to me?  Can't think of anyone we've missed over the last couple weeks, but if I have I apologize.  You can email me if we havent spoke though - pdubord@prodigymbo.com

[JesusSweatDuck 17781]

3 minutes ago, UTPhil2006 said:

Have you reached out to me?  Can't think of anyone we've missed over the last couple weeks, but if I have I apologize.  You can email me if we havent spoke though - pdubord@prodigymbo.com

I haven't, will drop a line next week

[Steel Shank 9426]

We're at 64% LTV, 3.50% (30 yr) and both w/ excellent credit scores. Plan to be here a while. Any chance of improving on the rate? A 15 yr maybe? 

Edited March 28, 2020 by Steel Shank

[UTPhil2006 3807]

4 minutes ago, Steel Shank said:

We're at 64% LTV, 3.50% (30 yr) and both w/ excellent credit scores. Plan to be here a while. Any chance of improving on the rate? A 15 yr maybe? 

That's pretty solid.  If 30's got down to 3.0 or you were open to buying points to get it there it might work, but would probably need to be 3.0% on a 30 for it to make it worth your while.  You can email me at the email address a couple posts up if you want me to take a look at costs to get to 3.0

[Gil Bang 25960]

Just started looking into refinancing. 
4 years into an fha loan at 3.75. Should be right on the edge of 80% ltv now depending on actual appraised value and closing costs that are rolled in. 
would be nice to lose that $175 a month in MIP.  But not even sure we’ve been self employed long enough to qualify.  Need to look at bank statements and tax returns first. 

FHA has something called a streamline refinance. Pretty easy to lower your interest rate without an appraisal or anything like that

[Pato del Muerto 52504]

5 minutes ago, Gil Bang said:

FHA has something called a streamline refinance. Pretty easy to lower your interest rate without an appraisal or anything like that

But that doesn’t remove the MI which would be the biggest savings. 

[Steel Shank 9426]

31 minutes ago, UTPhil2006 said:

That's pretty solid.  If 30's got down to 3.0 or you were open to buying points to get it there it might work, but would probably need to be 3.0% on a 30 for it to make it worth your while.  You can email me at the email address a couple posts up if you want me to take a look at costs to get to 3.0

For now we'll just keep an eye on it. We're ahead of schedule on paying off the loan as it is, so it's not really pressing.

[UTPhil2006 3807]

15 minutes ago, Gil Bang said:

FHA has something called a streamline refinance. Pretty easy to lower your interest rate without an appraisal or anything like that

Yeah he needs to get out of the life MI.  3.75 FHA to Conventional 3.5-3.75 Conv should be the goal. 

[Dean Gullberry 37]

I'm almost 5 years into a 15 year @ 3.125.  LTV is 43%.  I'm guessing I can't save much with a refi but thought I would ask the experts.  Wife and I have great credit and I wouldn't be opposed to throwing some additional funds at the principal to save some interest long term.  Is my best bet to just pay down some principal and sit tight?

On my first house I refied from a 5.25% (30 year) to a 2.625% (7/1 arm), paid down some principal and cut my payment by more than half but kept paying the same amount as I was when I had the 5.25.  I'm obviously not going to find that kind of a deal now.  But that is sort of my line of thinking.

[UTPhil2006 3807]

Based on those numbers you’re pretty set. 

[UT_OB1 2223]

Thanks for the “don’t worry” upthread. 
 

Does stimulus bill do much for owner/landlords?  I don’t have any other employees than myself and my wife (and I don’t mean we are represented as employees) and we use contractors. 

[dcar00 14210]

1 hour ago, Dean Gullberry said:

I'm almost 5 years into a 15 year @ 3.125.  LTV is 43%.  I'm guessing I can't save much with a refi but thought I would ask the experts.  Wife and I have great credit and I wouldn't be opposed to throwing some additional funds at the principal to save some interest long term.  Is my best bet to just pay down some principal and sit tight?

On my first house I refied from a 5.25% (30 year) to a 2.625% (7/1 arm), paid down some principal and cut my payment by more than half but kept paying the same amount as I was when I had the 5.25.  I'm obviously not going to find that kind of a deal now.  But that is sort of my line of thinking.

I'm almost a mirror of you.  I have 8 left on 15 yr at 3.25 on this house and on first house in 01 I refied from a 30 year at 6.25 to a 7/23 at 3.

I was thinking if there was a 10 yr at 2.25 I might do it but after doing the math there is only about 5K in savings better just to pay principal when I want to/can.

[Wulaw Horn 19073]

57 minutes ago, dcar00 said:

I'm almost a mirror of you.  I have 8 left on 15 yr at 3.25 on this house and on first house in 01 I refied from a 30 year at 6.25 to a 7/23 at 3.

I was thinking if there was a 10 yr at 2.25 I might do it but after doing the math there is only about 5K in savings better just to pay principal when I want to/can.

You are good forever. 

[UTPhil2006 3807]

On 3/28/2020 at 2:54 PM, UT_OB1 said:

Thanks for the “don’t worry” upthread. 
 

Does stimulus bill do much for owner/landlords?  I don’t have any other employees than myself and my wife (and I don’t mean we are represented as employees) and we use contractors. 

@troph has had pretty solid advice on the Surly owners thread so they may be who to ask better, but my initial thought is probably not

[Brew 3049]

On 3/28/2020 at 2:54 PM, UT_OB1 said:

Thanks for the “don’t worry” upthread. 
 

Does stimulus bill do much for owner/landlords?  I don’t have any other employees than myself and my wife (and I don’t mean we are represented as employees) and we use contractors. 

Look into the EIDL SBA product. It will cover landlords that experience an economic loss with a low interest product.

[UTPhil2006 3807]

10 year down .07 to .67.  DJI up 690.

Also, we may start to see things tightening up as far as the low end of things from traditional lenders.  If you're 680 and up, and a solid DTI, you're still for the most part set.  If you're getting the fringe limits of DTI, they're gonna want more reserves (ability to repay), etc.  Self employed will face a bit tighter restrictions.  Nothing over the top quite yet, but just leaning towards stronger loans.  If you've got a good stat line (good credit, good DTI, reserves/down payment) nothing to worry about as of now.  And this is only one lender so far, but I'm willing to bet their stance starts to trickle  down.

[UT_OB1 2223]

Glad we wrapped up the loan earlier this month then

Looked in to the  EIDL SBA thing and applied for the $10k cash advance.  It does look like it will cover mortgages, utils, etc, and possibly be forgiven.  That would be helpful as this is hitting during the time when people here would expect to be making more off their STRs to pay for the slower winter months.

 

Also of note, Galveston shut down STRs and hotels for less than 30 day stays for now.  

[Longhornmaniac8 255]

Sounds like the City of Austin has shut down most (all?) new home construction sites. 

[troph 24810]

10 hours ago, Brew said:

Look into the EIDL SBA product. It will cover landlords that experience an economic loss with a low interest product.

what brew said, PPP requires payroll and its heavily tilted toward payroll as it's primary use and benefit.

[Brew 3049]

5 hours ago, UT_OB1 said:

Glad we wrapped up the loan earlier this month then

Looked in to the  EIDL SBA thing and applied for the $10k cash advance.  It does look like it will cover mortgages, utils, etc, and possibly be forgiven.  That would be helpful as this is hitting during the time when people here would expect to be making more off their STRs to pay for the slower winter months.

 

Also of note, Galveston shut down STRs and hotels for less than 30 day stays for now.  

There is no current legislation around EIDL being forgiven. That’s not to say it doesn’t come up, but I believe it would have to be new legislation.

[closetohumping 17442]

14 hours ago, Longhornmaniac8 said:

Sounds like the City of Austin has shut down most (all?) new home construction sites. 

Shit I’m in Seattle. I wonder if it will happen here.   
 

on Redfin I’m seeing a ton of back on markets and reductions

[UTPhil2006 3807]

3 hours ago, closetohumping said:

Shit I’m in Seattle. I wonder if it will happen here.   
 

on Redfin I’m seeing a ton of back on markets and reductions

Construction is fine in Dallas/Houston/SA so I wouldn't necessarily follow anything Mayor Adler/Austin does as gospel

[Zwylde 812]

Closed yesterday on my Tiki Island house without a hitch.  I'm betting the seller was glad to hear that.  I'm glad I got the house I did but I can't help but be curious about how many more are going to hit the market now with the current situation.  Lotta folks are going to have to give up the bay house if it ain't there primary residence.  

 

Good news is now I'm in the market for a boat and there should be a lot of those available now too.

 

[Gil Bang 25960]

CA construction is going full-blast

[Hmbre97 6308]

For someone with good credit (750+), what is the DTI limit for loans now? Primary residence non-jumbo. Just a regular mortgage loan.

Also, for first time home buyers programs in Texas, when does the 3 yr clock start to determine eligibility?

Edited March 31, 2020 by Hmbre97

[UTPhil2006 3807]

1 minute ago, Hmbre97 said:

For someone with good credit (750+), what is the DTI limit for loans now?

Also, for first time home buyers programs in Texas, when does the 3 yr clock start to determine eligibility?

45% for conventional 50% for FHA.  UWM (one of the bigger lenders) is at 40% DTI unless you have 3 months reserves, then its normal.  Haven't seen anything from any other lenders yet.

[Upgrayedd 5812]

46 minutes ago, Gil Bang said:

CA construction is going full-blast

For projects that already have financing and permits.

[Gil Bang 25960]

Of course. 

[closetohumping 17442]

4 hours ago, UTPhil2006 said:

Construction is fine in Dallas/Houston/SA so I wouldn't necessarily follow anything Mayor Adler/Austin does as gospel

Minimum two week feeeze in Seattle 

[2300 Nueces 163]

I'm a builder in DFW.  Contemplating dumping inventory to front run the flood of pre owned homes about to hit the market.  Have loan conditions frozen for new home buyers?