Blog Talk Radio Show November 21, 2011: HARP II Guidelines

2017-12-20T17:34:14+00:00 November 21st, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , |

HARP II guidelines were released last week and I was more confused than before.  We are fortunate to have Alice Alvey to interpret what the guidelines  say about who will be able to offer borrowers this new product and when.  She too found it difficult, but this is what she thinks the guidelines say regarding who and when.   First, the current servicer of a loan will be able to refinance their serviced loans beginning with applications taken after December 1, 2011.  For these loans, certain provisions will not be available for settlements prior to January 3, 2012,  so most loans will not fund until after then.  Access to the HARP II does not open up to non-servicer originators (Open Access) until March 15, 2012.  This is when the automated underwriting engines will be programmed to accept loans with the LTV waiver.  Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline's Joe Farr: Listen to internet radio with David Lykken on Blog Talk Radio MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. [...]

Blog Talk Radio Show September 12, 2011: Obama Refi Plan

2017-12-20T17:34:15+00:00 September 14th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , |

Last Thursday evening in a speech before Congress President Obama announced, among other job creating ideas, a plan to make it easier for millions of people to refinance  their loans.  He provided no details.  Since then other Administration officials have discussed the benefits of such a plan, but still with no details.  Believe me, the devil is in the details.  A massive refinance program could occur with just a few guideline changes by Fannie and Freddie.  It would apply to only those loans already owned or guaranteed by Fannie or Freddie, but that is a lot of loans.  Fannie and Freddie could eliminate LTV as a consideration.  They could ignore debt to income limits.  They could make it very easy.  But they would need to waive the originator reps and warrants.  Who would refinance a loan to earn a point or so, if they could be on the hook for a loan with a 175% LTV?  The refi plan could go in a different direction.  The Agencies could decide they will just modify their owned or guaranteed loans, leaving mortgage originators out of the process.   I expect a formal plan will be put forth soon.  It makes too much sense [...]

U.S. Considers New Refinance Plan

2017-12-20T17:34:15+00:00 August 25th, 2011|Categories: In The News|Tags: , , , , , , , |

Prices on lower coupon mortgage-backed securities (3.5% and 4.0%) have improved today while prices on higher coupon securities (above 4.0%) have fallen.  The cause appears to be an announcement that the Obama administration is considering a broad refinance program for government guaranteed loans to be refinanced without the normal restrictions, like LTV.  The details of plans being considered are not available.  The goal of the program would be to stimulate the economy, as people would have more discretionary funds.  The downside could come from MBS investors whose investments will pay off much faster than anticipated. On future investments, investors would likely pay lower premiums for higher coupons.  This news should have little impact on most loans currently in your pipeline. Read the full article from The New York Times:  U.S. May Back Refinance Plan for Mortgages