FHA STREAMLINE CHANGES—ARE YOU READY? WITH LAUREN PATTERSON, SOLARUS LENDING GROUP

A Velma.com sponsored event!

The lines will be muted…The lines will be muted…

For any other questions, please email us at support@Velma.com. Or hit the chat button on Velma.com, or call 208 854 7911.

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F H A S t r eam l i n e C h an g es...A r e Y o u R ead y ?

Hosted by Velma.comPresented by: Lauren Patterson

F ac t : G u i d e l i n e R ev i si o n s ar e S i g n i f i c an t!

Key Revisions

SeasoningPayment HistoryNet tangible benefit for the borrowerMaximum Combined LTVNew Max Mortgage Amount Calc’s for refi w/o AppraisalDiscount Points no longer included in refi w/ AppriasalVerification of Assets NEEDED to CloseCertification that Borrower is employed and has income

F ac t : T h ese R ev i si o n s ap p l y to ALL

Seasoning

Borrower must have made 6 payments

Payment History

Must have been made within the month due

Must not have > 1 x 30 day late in preceding 12 months and

Last 3 months payments must have been made in the month due

F ac t : T h ese R ev i si o n s ap p l y to ALL

Net Tangible Benefit

Lender must determine there is Net tangible benefit; defined as-

Reduction in total mortgage payment~ PITI, HOA dues, Special Assessments etc. (5% rule)

Refinancing from and Fixed to ARM (2% rule)

Refinancing from and ARM to a Fixed (2/ 20% rule)

Reducing the term of the mortgage

N/O/O and Second Homes must also meet payment reduction test and are also not eligible for Streamline refi onto an ARM

F ac t : T h ese R ev i si o n s ap p l y to ALL

Verifications, Certifications & Credit Scores etc...

Signed, dated cover letter required

Assets must be verified

Pay-off statements must be included in the case-binder

Credit scores are required if available

URLA- abbreviated version is no longer allowed

F ac t : T h ese R ev i si o n s ap p l y to ALL

Max CLTV’s

If subordinate financing is staying in place- the max CLTV is 125% (subject to investor overlays)

Without Appraisal, CLTV is based on the original appraised value

With Appraisal, CLTV is based on new appraised value

F ac t : A p p r a i sa l s m at t er

Streamline Refinance w/o Appraisals

Maximum “insurable” mortgage =Outstanding Principle Balance - UFMIP Refund + new UFMIP

Streamline Refinance w/ Appraisals

Maximum “insurable” mortgage =Outstanding Principle Balance - UFMIP Refund + new UFMIP

plus closing costs, prepaid items and new UFMIP or97.75% of Current Appraised value + new UFMIP

Discount pts may not be included- must verify assets to cover

F ac t : S om e th i n g s d o r em ai n th e sam e...

Unchanged Refinance transactions

Max mortgage limits and mortgage terms (4155.1 3.c.2.a &b)Refinances for investors/secondary residences (4155.1 3.C.2.d &

e)Cash back at closing (4155.1 6.C.1.a)Appraisals (4155.1 6.C.1.c &

d)HUD LDP and GSA exclusion lists (4155.1 6.C.1.e)Credit Reports (4155.1 6.C.1.f)Credit Qualifying [except maximum insurable mortgage]( 4155.1 6.C.2)Holding period for assumed loans (4155.1 6.C.3.b)Adding/Deleting Borrowers (4155.1 6.C.3.d)Withdrawn Condominium Approval (4155.1 6.C.3.e)Seven Unit Limitation (4155.1 6.C.3.f)No Cost Refinances (4155.1 6.C.4.a)203(k) to 203(b) [completion of rehabilitation] (4155.1 6.C.4.i)235 to 203(b) [overpaid subsidy and junior liens] (4155.1

6.C.4.j)

F ac t : Jan 1 st 201 0- b e aw ar e!

FHA Appraisals

Appraiser must maintain independencePlaces limits on who can select appraiserLenders responsible to assure appraiser is qualified Estimate of Value- prohibitedProviding desired value or target value- prohibitedAppraisal/ value shopping- prohibitedAppraiser MUST be State Certified (Oct 1st 2009)

F ac t : an d t h at ’ s o n l y F H A - th er e’ s m o r e!

What does HERA stand for and what is it?

What does MDIA stand for?How can you avoid delays with respect to MDIA?

What is HPML?What does HPML effect and how is it measured?

When do the new RESPA changes take effect?What differences are associated with “new” GFE vs. “old”

For a copy of our RESPA Q&A- email Info@SolarusLending.com

SO L A R U S L en d i n g G r o u p

Beyond Everyday Service~ Providing customer service that's good just isn’t good enough...

We work fast. Your time is precious, and we know that every second on a loan counts. That’s why we underwrite loans in-house and ensure your documents are to the title company at least 24 hours before closing.

We start with “yes.” While many lenders make the loan process burdensome, our mind–set is to find ways to make loans work. This philosophy permeates our culture: we focus on solutions.

We provide real answers to real questions. Unlike some mortgage call-centers, internet lenders, and other institutions you may encounter, our team is committed to providing the information you need to make the right decision.

We make sure our clients understand. If you have any unanswered questions, we haven’t done our job. Our goal is to educate our clients throughout the process so it’s even easier for you the next time around.

Experience the difference EDUCATED, QUALIFIED and RESOURCEFUL service makes when getting a mortgage... contact your SOLARUS Mortgage Specialist today.

For information on Branch & Employment Opportunities- Office 888-444-3429 or Email Info@SolarusLending.comTwitter http://twitter.com/SolarusLending

Lauren Patterson, President SOLARUS Lending Group

WHAT IS VELMA DOING FOR THE FHA CHANGES?

● FHA Streamline expiration postcards1. Lead generation category2. Makes for a great monthly touch, or targeted mailing3. Urgent--case number needs to be assigned by Nov.17

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