Do you as a Realtor feel that lending is getting better or still the same as it was a year ago?

Asked by Renee Hamilton, Alabaster, AL Sat Jun 16, 2012

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Dan Tabit, Agent, Issaquah, WA
Sat Jun 16, 2012
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Renee,
I believe it's slightly better than a year ago and much better than 2-3 years ago. The pendulum is swinging back toward reason, but nowhere near the lending world of 2006 and before. A great LO is critical right now to work though the bumps that come up and staying up on all the changes.
2 votes
, ,
Sun Jun 17, 2012
Hi Renee,
Other than one, I can not think of any actual lender underwriting guidelines that have looseneed up in the last 2-3 years. In January 2010, we did launch our FHA 580-639 FICO program. Since there is no Secondary Market desire for those loans, we have to sell those mortgages direct to Ginnie Mae.

This year alone, HUD increased its MI premiums on FHA mortgage. They are also now requiring P&L's for self employed borrowers. Though initially delayed, HUD will be requiring more collection accounts to be paid in full prior to a closing. Last year, USDA implemented monthly MI on its loans.

For conventional mortgages, the story is different. The MI companies have in fact expanded their underwriting guidelines. Unlike in 2009, MI companies are once again insuring Second Homes and they are going to higher LTV's on Primary Residences. Now that many MSA's have been eliminated as being a "Declining Market", that has expanded the MI availabilty in many markets.

I do believe a lot of the perceived "improvement" is due to buyers, and especially real estate agents, being more knowledgeable about today's lending standards. Better education of the buyers on what to expect does greatly help the transaction move along.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
2 votes
Great answer!! Very true!!
Flag Wed Sep 11, 2013
Connie Mitch…, Agent, South Padre Island, TX
Sat Jun 16, 2012
I do believe we have seen some "loosening of the reins" slightly this year. And I too believe we will see a slow improvement. But.......... Fannie Mae is still a dirty girl to deal with and due to lack of any common sense I am not sure if we will see much improvement in her corner.
2 votes
Well put, lol!
Flag Wed Sep 11, 2013
, ,
Sun Jun 17, 2012
Define "Better"? Less guidelines? Lower underwriting standards? If that is what you are speaking of, no, it's harder. You can no longer have any disputed accounts. More investors are setting higher score requirements on Government products that would accept lower scores. - Mortgage insurance has tightened up on the conforming side. Appraisals are still an issue. Fewer investors offering much needed renovation programs such as the 203k and Homestyle products. - On a good note though if you don't have a lot of bad credit you can still get into a home for almost nothing and get a rate that is at 30 year lows. You may have to answer an extra question or two with the underwriter but the ultimate goal is home ownership. A certified mortgage professional can guide you through a seamless process when you are ready.
1 vote
Susan Flynn, Agent, Cranston, RI
Sat Jun 16, 2012
Renee,
I agree with Dan. I also think it will improve somewhat as time passes. The whole world of lending has just come through Armageddon and the future is promising. As long as the Europeans come up with a permanent solution to their fiscal issues we should go from strength to strength.
1 vote
Jonathan Hya…, Agent, Trussville, AL
Sat Sep 7, 2013
The qualifications seem to have loosened up a bit, and I've seen a few 100% or no-PMI loans for well qualified applicants over the last year. HUD also relaxing it's standards a bit. Hoping to see more common sense injected into lending for responsible folks / self-employed people.
0 votes
Jeff Holloway, Agent, Sebastian, FL
Thu Jun 21, 2012
Rates are down... but there are tighter qualifications.
0 votes
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