FHA Mortgage Underwriting: Analysis Of FHA Loan Servicing Records Finds That Requiring Larger Down Payments Does Not Correlate With Fewer Defaults; High LTV’s With Higher FICO Scores Are Best Performing Loans

20 04 2011

 

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  • FHA uses both downpayment and FICO scores to allocate credit assistance
  • Downpayment and FICO scores when used together are a much better predictor of loan performance than just one of those components alone
  • FHA insured loans with LTV above 95% and a FICO score above 580 perform better than loans with LTV below 95% and a FICO score below 580
  • FHA loans with an LTV above 95% and a FICO score below 580 perform significantly worse than all other groups

FHA Single Family Insured Loan Claim Rates
Relative Experience by Loan-to-Value and Credit Score Values1

Ratios of Each Combination’s Claim Rate
to that of the Lowest Risk Cell2

Loan-to-ValueRatioRanges

Credit Score Ranges3

500-579

580-619

620-679

680-850

  
Up to 90%

2.6

2.5

1.9

1.0

  
90.1 – 95%

5.9

4.7

3.8

1.7

  
Above 95%

8.2

5.6

3.5

1.5

  

For more:  http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2011/2011-04-14


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Categories : Credit Reports, Defaults, Delinquencies, Federal Government, FHA, FICO's, Financing, Mortgage Industry, Mortgage Insurance, Underwriting

“Interactive Map” Shows High Foreclosure Rates In Arizona, California And Nevada Counties As Compared To National Foreclosure Rates

18 04 2011

The fallout from the recession has cut deeply into the housing security, employment and income of many Americans. But some parts of the country are clearly faring better than others. The interactive map below shows  foreclosure rates by county. The darker the color the higher the rate of foreclosures.

CLICK ON MAP TO USE "INTERACTIVE" FORECLOSURE RATE BY COUNTY


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Categories : Delinquencies, Foreclosures, Statistics, Surveys

“Poorly Maintained Bank-Owned Homes” Have “Destroyed Home Values In Minority Neighborhoods” Disproportionately According To Report On “Lender Discrimination In Treatment Of Foreclosed Homes” By National Fair Housing Alliance (NFHA)

14 04 2011

CLICK ON "NEIGHBORHOOD" TO VIEW REPORT


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Categories : Asset Managers, Bank-Owned, Defaults, Delinquencies, Economic Statistics, Federal Government, FHA, Foreclosures, Housing Market, HUD, Mortgage Industry, Purchases, Realtors, REO Insider, REO's, Reports

Nevada, Arizona And California Had Nation’s Highest Foreclosure Rates In 1st Quarter 2011 As Foreclosure Filings Drop Due To “Robo-Signing Scandal”; Severe Mortgage Delinquencies Increase

14 04 2011

 

http://renovationlendinginstitute.com/

  • Nevada, Arizona and California were 1-2-3 in the 1st quarter and March 2011 as the states with the highest foreclosure rates
  • The worst metropolitan area remains Las Vegas, where one of every 31 homes had a foreclosure filing during the quarter, about six times the national norm
  • Modesto, Calif. (one in 46), Stockton, Calif. (one in 47), Vallejo. Calif., and Phoenix (both one in 48) filled out the top five
  • The foreclosure crisis seems to be easing as foreclosure notices filed during the first three months of 2011 fell 27% compared with 2010
  • Only 681,000 properties (1 out 191)  received a notice of default, a scheduled auction or a foreclosure sale
  • Nationally, 215,046 borrowers lost their homes, down 17% year-over-year, a 3-year low
  • Sales of existing and new homes were very weak and home prices are still sliding
  • However, the foreclosure improvement has been artificial, fueled by banks reacting to the “robo-signing” scandal
  • The banks have cut back on filings until they can clean up their procedures
  • It is estimated that without the cutback there would have been 900,000 filings during the quarter instead of 681,000
  • This would have resulted in 280,000 to 300,000 bank repossessions instead of 215,000
  • And the banks are modifying fewer loans to make them more affordable
  • Hope Now, a coalition of servicers, community groups and mortgage investors, reported only 87,000 loans in February were modified, compared with 110,000 in December 2010
  • The one bright spot is the month-over-month drops in both new foreclosures and in the number of 60 days late payments
  • But 90-day or greater delinquencies is increasing, with these borrowers falling 527 days past due, on average
  • In New York and New Jersey it is taking more than 800 days from notice of default to a sheriff’s sale

For more:  http://finance.yahoo.com/news/Foreclosures-continue-to-cnnm-3667179016.html?x=0&sec=topStories&pos=1&asset=&ccode=


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Categories : Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Housing Market, Mortgage Industry

The “Shadow Inventory” Of Foreclosure Homes In America Makes FHA 203k Renovation And HomePath Renovation Financing Critical To “Revitalization Of America’s Housing Stock” (Video)

25 03 2011

CLICK ON PICTURE TO WATCH VIDEO

The “Shadow Inventory” includes millions of homes where homeowners have not made payments and the homes will have deferred maintenance and major repairs needed. Thesee homes will eventually come to market as distressed sales and in major need of repairs. The FHA 203k renovation loan and HomePath renovation loans will allow homebuyers to purchase the homes to make necessary repairs, bring home up to code and improve the home to the owners every satisfaction.


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Categories : 203k, Bank-Owned, Fannie Mae, Federal Government, FHA, Financing, First-Time Homebuyer, Foreclosures, Freddie Mac, Home Sales, Mortgage Industry, The 203k Guy

“Short Sale Or Foreclosure”: Homeowners Who Short Sale With No Default On Loan Face The Least Negative Impact On Credit; Must Wait 3-7 Year With Foreclosures And Defaults

24 03 2011

 

Short sale with FHA Loan

  • Can purchase right away with no mortgage default
  • 3 year wait if in default at the closing
  • Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

  • 2 year wait if the borrower puts 20 % down
  • 4 year wait if the borrower puts between 10% to 20% down
  • 7 year wait if the borrower puts less than 10% down
  • 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down

Short Sale with Freddie Mac Loan

  • 4 year wait before being able to get a loan
  • 2 year wait if the borrower can show extenuating circumstances

Foreclosure with an FHA Loan

  • 3 year wait before being able to get a loan
  • Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

  • 7 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.
  • 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan

  • 5 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances

** As a side note a deed in lieu of foreclosure follows the same guidelines as FHA’s foreclosure policy, the same as Fannie Mae and Freddie Macs short sale policy.

For more:  http://massrealestatenews.com/buying-a-home-after-short-sale-or-foreclosure/?goback=%2Egde_87042_member_47792412


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Categories : Bank-Owned, Credit Reports, Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Homes, The 203k Guy

Total # Of US Mortgages In Foreclosure “Pre-Sale Inventory” Increased 7.4% In Past Year Ending February 28, 2011 To 2,196,000 Loans (4.15% Of Total Loans)

21 03 2011

Lender Processing Services released a “first look” at February 2011 month-end mortgage performance statistics derived from its loan-level database of nearly 40 million mortgage loans.

  • Total U.S foreclosure pre-sale inventory rate: 4.15%

  • Month-over-month change in foreclosure presale inventory rate: -0.2%

  • Year-over-year change in foreclosure presale inventory rate: 7.4%

  • Number of properties in foreclosure pre-sale inventory: (B)  2,196,000

  • Number of properties that are 30 or more days delinquent or in foreclosure:  (A+B)  6,856,000

For more:  http://www.lpsvcs.com/NewsRoom/Pages/20110321.aspx


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Categories : Defaults, Delinquencies, Financing, Foreclosures, Homes, Mortgage Industry, The 203k Guy

Renovation Lending Expert Skip Schenker Discusses The “Shadow Inventory” Of Up To 11 Million Homes That May Go Into Foreclosure (Video)

21 03 2011

CLICK ON PICTURE TO WATCH VIDEO

Skip Schenker of the Renovation Lending Institute talks about the “Shadow Inventory” that could include up to 11 million homes that could default and go into foreclosure. Research shows that 95% of all loans that are 60 days late, or 5 million homes, are at risk of default.


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Categories : Defaults, Delinquencies, Federal Government, Foreclosures, Homes, Mortgage Industry, Purchases

Freddie Mac Lauches First YouTube Videos Advising Homeowners On Mortgage Delinquencies: “Myth #1: Get The Facts On Foreclosure”

21 03 2011

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Categories : Delinquencies, Foreclosures, Freddie Mac, Mortgage Industry, REO's, Videos

Skip Schenker Of The Renovation Lending Institute Discusses Deteriorating National “Cure Rates” For Homeowner Mortgage Delinquencies At March 2011 REOMAC Seminar (Video)

20 03 2011

CLICK ON PICTURE TO WATCH VIDEO

Skip Schenker of the Renovation Lending Institute speaks at the REOMAC Dinner Meeting on March 10, 2011. He discusses 2010 statistics on “cure rates” where only “29% of homeowner who are 30-days late on their mortgage end up bringing the mortgage current”. The statistics are much worse for 60-day and 90-day lates.


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Categories : 203k, Defaults, Delinquencies, Economic Statistics, Fannie Mae, Federal Government, Financing, Foreclosures, Mortgage Industry, Realtors, Videos

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