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May 13, 2021

If You Like Your Friends, Send Them My Information

 Or send them a quote from me, by letting me know about how much they owe, and the value of their home, that's all I need in most cases. 

Reply to this email to ask me for a quote. 

May 12, 2021

Fannie and Freddie set dates for their new refi option

First I want to say, most of you reading this, will not need this, if you're a client of mine, you have good equity unless you just purchased the home. But if values fall, you might want to use this. I don't think they will be falling anytime soon and when they do, you better grab what you can, because they are going up, up and up.

The Federal Housing Finance Agency didn’t have a set date for its new refi option targeted to low-income borrowers when it announced the program last week. But on Wednesday, both Fannie Mae and Freddie Mac announced release dates for their versions of the refi product.

Fannie Mae’s RefiNow option will be available June 5, while Freddie Mac’s Refi Possible will be available two months later in August. It’s estimated that the options, intended to pave the way for lower-income borrowers who missed out on the massive refi wave in 2020, will save homeowners an additional $100 to $250 a month on their mortgage payments.

To take advantage of the new refi options, lenders must ensure borrowers save at least $50 a month in their mortgage payments while simultaneously dropping their interest rate by at least 50 basis points. The FHFA will also require that lenders provide a maximum $500 credit for an appraisal if the borrower is not eligible for an appraisal waiver, which the GSEs will reimburse to the lender once the loan is sold to them.

Additionally, the FHFA will waive its adverse market refinance fee for borrowers with loan balances at or below $300,000.

The option comes with a number of qualifications, including that a borrower must have an income at or below 80% of the area’s median income and have been current of their payments for the last six-months, with no more than one payment missed in the last 12.

Industry leaders commented on this stipulation given that a number of borrowers who are in this income bracket likely took out some form of forbearance, and the FHFA has yet to clarify whether forbearance plays a factor in this qualification.

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Other qualifications for the program require that borrowers must not have a mortgage with a loan-to-value ratio greater than 97% and a DTI no higher than 65%. Lastly, borrowers must have a FICO score no lower than 620. This credit score plays an important factor, according to Dave Stevens, former CEO of the MBA who also served as senior vice president of single-family at Freddie.

“The reality is that borrowers who are in this bracket likely have an FHA loan,” Stevens said.

But the GSEs are confident the new option could assist millions of borrowers. Freddie-Mac research released on Wednesday revealed between February and June of 2020, high-income households saved 10 times more than those with lower incomes by refinancing more frequently.

Geographically, the counties hit hardest by the pandemic also saw some of the largest refinancing income gaps.

“Refi Possible could help over a million homeowners with a Freddie Mac-backed mortgage by making it easier for them to refinance,” said Pamela Perry, single-family vice president of equitable housing at Freddie Mac. “We are continuing communications and outreach to a broad group of organizations and community groups so that those eligible can take advantage of this program to realize the savings and wealth-building benefits of refinancing.


May 11, 2021

There is good news for veterans across the country, an Arizona Bulletin proudly exclaims

 Snapshot of Arizona Dept. of Real Estate Bulletin 2019-4, pg 12

There is good news for veterans across the country, an Arizona Bulletin proudly exclaims. Guest author, retired USAF officer, and Arizona State Director G-11 Varrato II examines the changes to the VA home loans process, including the removal of the Guarantee Cap, and the possibility of veterans and active service members finally being recognized as a protected class by the Equal Credit Opportunity Act. This would help prevent discrimination toward military personnel and those with a veteran status, and grant those who have been overlooked for a mortgage rate or loan amount, or unfairly redlined by the mortgage industry a basis for civil action.

Variations of the Fair Housing Improvement Act have been introduced by multiple states in both the House and Senate. These bills are still in process.

May 4, 2021

UWM Faces Class Action Lawsuit Over Broker Ultimatum

When faced with the choice it was So EZ for me, I clearly choose the Rebel Alliance, Rocket Pro Third Party Operator, AKA Rocket Pro TPO.

 I'm thinking this could be like when that Toy Hauler company, Weekend Warrior came out with the lifetime warranty. I knew something was fishy but I couldn't put my finger on it, how could a company who is known for selling overpriced pigs wearing lipstick last offer free repairs for life? They left their supporting clients in the dust with poor quality products and nobody to honor the lifetime promise they made. Shame on them and we will probably be saying the same thing about UWM when this decade is done.

United Wholesale Mortgage is facing a Class Action lawsuit that was filed by The Parrish & Goodman Law Firm, on behalf of a large group of independent mortgage brokers from Florida. The group is looking to earn back their freedom to choose which lender is best for their clients, following the anticompetitive ultimatum that was issued by UWM CEO Mat Ishbia in early March, according to a press release from the firm. "UWM’s leveraged ultimatum is clearly unlawful, unfair and is designed to use UWM’s dominant market share (nearly 35% according to company claims) to limit the consumers’ choice and steer business for their own gain," according to the release. "This position also runs counter to the actual value provided by mortgage brokers - the ability to shop all lenders and select the company and loan program that provides their clients the best possible rate, experience and process. In some cases, this ultimatum could create conditions by which consumers will lose access to financing altogether, depending on which lender is offering programs that match their credit profile." The lawsuit alleges that UWM willfully violated a number of Federal and Florida laws and regulations including The Sherman Antitrust Act, The Florida Antitrust Act, Tortious Interference with Business Relationship and Florida's Deceptive and Unfair Trade Practices Act. It also alleges that it forced brokers into an unenforceable Contract of Adhesion. "I joined this suit because, as a mortgage broker, I refuse to have a lender dictate what is best for me, my clients and my business," said Dan O’Kavage, president of the O’Kavage Group based in St. Augustine, FL. "I want to provide my clients, who are often integral members of our local community like teachers, firefighters and police officers, the best possible mortgage available to them. If a lender is going to force me into an ultimatum that restricts my ability to find the ideal loan for them, I will always come down on the side of standing on principle and will fight back -- as are a number of my peers." UWM's ultimatum will not allow brokers who conduct business with Rocket Mortgage or Fairway Independent Mortgage Corporation to work with the company. Both Fairway and Rocket have since issued a number of responses, raising concerns about a broker's freedom to choose who they want to work with. "While courts have the job of enforcing legal rights, freedom is a mindset. Freedom is the ability of an individual to make autonomous decisions – not have them forced upon you. Freedom is a precious thing," said Rocket Pro TPO executive vice president, Austin Niemiec as he doubled down on his initial response in a previous statement issued in early March. "Once someone gives one of their freedoms away, the dangerous descent down the slippery slope begins. Rocket ProSM TPO and Fairway today. Caliber, Freedom, Loan Depot or others tomorrow. An MI company the next day. A wallet share demand the next. If you can be forced into not working with lenders, then everything else is on the table." "The actions by United Wholesale Mortgage are not only entirely unethical, and the behavior demonstrated by a schoolyard bully, but also incredibly ill-conceived," said Robert Goodman, partner at Parrish & Goodman. "There is no room in our economy, or our society, for large market participants to conjure up schemes to weaken competition. Courts have long held this behavior to be unlawful, and we are confident they will again in this matter with United Wholesale Mortgage." "I am fighting back against UWM because my freedom and independence, the reason my clients choose to work with me, has been stripped away," said Dan O’Kavage. "If I didn’t want to operate in an independent fashion, I would work on the retail side of the industry and work in-shop for one of the major lenders. That was never something I considered nor wanted to do. I like being local. I like supporting my neighbors and community. UWM is stripping my freedom to be the best loan officer for my clients." "We do not comment on legal matters that are currently pending, especially those that have no merit or substance," said a UWM spokesperson, in an email statement to NMP.