Dates to Remember

Dates to Remember:


February 1. 2010

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSURES
With certain exceptions, FHA currently prohibits insuring a mortgage on a
home owned by the seller for less than 90 days. This temporary waiver will give FHA
borrowers access to a broader array of recently foreclosed properties.

April 5, 2010
INCREASE IN UPFRONT PREMIUMS FOR FHA MORTGAGE INSURANCE
FHA loans with a case number assigned on or after April 5, 2010, will have a
2.25% upfront mortgage insurance premium. This is a .5% increase. Case numbers are
generally assigned when there is a contract with a property address, and a closing date
AND the borrower has committed to go forward with the loan.
Annual premiums (remitted on a monthly basis) will not change at this time.
Please go to http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf. for more information.

Other changes include:
New borrowers will now be required to have a minimum FICO score of 580 to qualify
for FHA’s 3.5% down payment program. Borrowers with less than a 580 FICO score
will be required to put at least 10% down.
Seller concessions will be reduced from 6% to 3%. HUD has not yet released an effective
date for this change. (This will be a big one)

April 5, 2010
SHORT SELL PROCESS BECOMES EASIER
As of now, these seem to be the key points:
• Mortgage servicers have 10 days to accept or deny a short sale request. After a sale
is completed, the borrower could be completely released from debt.
• Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home
through a short sale.
• Mortgage servicers will receive $1,000 for each completed short sale.
• Investors who hold first mortgages can get as much as $1,000 for allowing second
lienholders to release their liens.
• Second lienholders can get only as much as $3,000 in proceeds from short sale to
release their liens.
• The property must be the homeowner’s principal residence.
• The homeowner is delinquent on the mortgage or default looks likely.
• The loan was made before Jan. 1 this year and is less than $729,750
The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-
tax income.

Mark P. Moyes
Associate Lending Manager
“Mark of Excellence”