Max DTI for FHA Transactions today?

KathyD...I agree with just about everything you wrote! I hope your doing more than just writing. I am a Loan Officer and I own my own Mortgage Signing Biz that is employeed by only myself at the present time. I know that there are extenuating curcumstances and credit reporting is not always "FAIR", but I believe we should be responsible in our own finances before being allowed to guide others. I mean come on, you don't ask your 3 time divorced Uncle about relationship issues. I don't beieve any of what is in our credit reports should be scored by number. I'd like to see things go back to the way they were before the mid 80's when credit scores where introduced. I have lost 1/4 of the loans I have submitted this year for either bad appraisals, bad Appraiser's, or extreme loss in value. But how does a home I paid 24,000 for 20 years ago now value at 645,000? That's money that came from where exactly? It never existed....duhhhhh. We're all paying for that house now! Let's make it better!

Sexy appraisers? <cough, chortle> I'm an appraiser, and I'm trying to be kind to my bretheren here. LOL. Guys, look around your next CE class. You got your Grizzly Adams variety, the Steve Urkle, and the Drew Carey models. Some are a mixture of 2 or 3 of the above. Yes, I'm stereotyping here, but just sayin' it's gonna be a real short list. :)

With potential buy backs, liability suits against anyone with a pocket (attorneys roll that way, remember?), and the plethera of REOs out there in the land with Sellers Disclosures that say absolutely nothing....I can't imagine any professional in this biz who wouldn't want at least some heads up on the meth lab issue. BTW, the forensic lab out of Colorado is a pretty good info source on mold also. You'll get a good amount of knowledge to either save your butt from a potential lawsuit (very few of the spore colonies are the true toxic variety) or quell that buyer's silliness over mildew in the shower. Finally, Fox News rocks. The rest are good for nothing else but the local weather.

Alan Greenspan has fessed up and said that the big mistake he made was to have allowed the banks to police themselves. He thought they would do the right thing just for self preservation. What a joke. His boss GW was braindead and did nothing as well. As for Barney Frank, give it up. Remember Dick Armey called him Barney "Fag" which was wrong and he later appologized. The point is,Barney Frank is a joke. This nonsense that he caused the subprime crisis by not allowing a so called investigation is nonsense. If Gw and company felt there was something wrong and wanted to do something about it, they would have screamed to high heaven and had fox news touting it everynight on the news. This is revisionist history. Lets face it, Fanny and freddy only had 20% of all subprime loans. Barney had nothing to do with Aig, the real culprit..

Alan Greenspan has fessed up and said that the big mistake he made was to have allowed the banks to police themselves. He thought they would do the right thing just for self preservation. What a joke. His boss GW was braindead and did nothing as well. As for Barney Frank, give it up. Remember Dick Armey called him Barney "Fag" which was wrong and he later appologized. The point is,Barney Frank is a joke. This nonsense that he caused the subprime crisis by not allowing a so called investigation is nonsense. If Gw and company felt there was something wrong and wanted to do something about it, they would have screamed to high heaven and had fox news touting it everynight on the news. This is revisionist history. Lets face it, Fanny and freddy only had 20% of all subprime loans. Barney had nothing to do with Aig, the real culprit..

IDIOTS from the top to the bottom. HVCC NO benefit to the borrower, it has cost a reported 1.2 billion MORE in fees. Order your appraisal through HVCC for $485.00 than they review their OWN appraisal for another 300-400, again benefit to borrower $885, for something that used to cost $325.. All loan officers keep your credit clean because now you are a MLO and they will pull your credit and if you have not handled your PERSONAL finances as they see fit ,you will lose your license. Lets add a few million more to unemployment. Have you pulled your Senators, Congressman's credit, who is running CA and the US bankrupt, not us! Was it Fannie that said oh yes put $1.00 in income and you qualify, was it mortgage Brokers that invented STATED, pay option arms, allowed and paid 4 rebate? NOPE not us! Are we getting blamed for good OL BARNIE in bed with Freddie and looking the other way, OH YES... I am MAD and we all need to stand together and stop this coruption NOW...

I am curious about your comments this evening. Does the appraiser still have to get their work from an AMC. All past business amounted to the AMC trying to get higher appraisals. We lost all review work from AMC because we pointed the poor appraisal work they were trying to sell to their clients. They have no insurance, no license no responsibility and no education. Does HUD know that 2000 California alone appraisers lost their jobs in 2009? How many is that for the country. The president needs to calculate that into their jobs creation they claim has been so successful. It's really been a failure. Remember this was caused by HUD, FNMA and FHLMC. They gave the marching orders to the lenders. The lenders just responded to their guidelines. Ever hear of no doc, low doc or stated loans? Appraisers should be independent and no bank should be allowed to order an appraisal except from an independent appraiser, not a middle man for no reason.

hey guys valuquestor is an appraiser, just in case you we're wondering

My brothers and sisters of TBWS. I am seriously tired of not getting a reasonable amount of FHA appraisal work. I have 20 years of FHA experience. I am fair and accurate. I know the 4150.2 I am easy and fun to work with. I cover the Montery / Salinas / San Jose area. KellyandAssociates.BIZ or [email protected] or 831-621-7335 Thank you for your support.

I am with MTGWOMAN! When will we know if brokers will need to renew with FHA? I already have my CPA trying to get me to start. I think he is trying to get to to commit and get stuck with the bill even though we might not need to renew after all?

My eyes were quite watery at my appointment I had earlier today. I wish I saw your video earlier. ;) You guys are nuts! Love it! :)

Now that the comment period is over for comments on HUD not continuing with financial audits for brokers, does anybody have any info on which way the final decision will go. Just wondering before I spend money when I don't need to.

Dont forget your entries to [email protected]

I live outside of Sacramento. We are to Meth houses what napa is to wine, what Barney Frank is to Logic.... you know what I mean. You want to throw back a Jack and Coke then I'm your huckleberry... speeds nasty. Hey the guy we're gonna have on our live show about meth houses is totally interesting. He wrote the book on how to deal with this stuff. Make sure you check in on the 22nd.

Brian knows an awful lot about meth houses

I registered for webinar ... where does it say I get the 2 months rate alert trial?

Was the GFE webinar worth the $? Most lenders provide one for free..... anyone do it?

MortgageBlues, thanks for the website. To all who read here, go to the website Mortgageblues is talking about. This is why I could care less about the homeowner who cheated to get the home. It is the people who put the product together and covered their "assets" that I am concerned about. If you buy a car, and it breaks down, are you the idiot for buying the car? or should we not go to the dealer and then the automaker to get the car fixed? Why then should it be any different in this loan fiasco? Using some peoples analogy, we all should not buy cars because if they break down, we cannot repair them! Whoever created the stupid loans should be held accountable. What does an appraised value have to do with someone having the power to sell loans? What does a broker making his commission on a neg am loan have to do with the lender who is now making more money on the back end by foreclosing on properties they might not even have clear title on?

Astonished and Worried in Cal - Yes, this is how I spent yesterday - in panic mode. After surviving (barely) the past two years in the most difficult period in our lives, to come upon the statement outlined in the SAFE act "showing disregard in the management of his or her own financial condition" nearly knocked me off my chair. I can't imagine that there are many whose credit was NOT affected by recent events. WHO has the right to make this distinction? We really can't take the "it will never happen" attitude (read HVCC) but no one has any answers - I tried. DRE's phones were down.. Are they implying that MLOs can't have mortgage lates? We could really spin out on this and need clarification.

If that link below doesn't work just Google: California Safe Act

Worried in No Cal: Try this link for starters: http://www.dre.ca.gov/lic_safe.html Loan orignators will also be issued a license number from the Department of Corporations, 20 hours of continuing ed and passage of a test later this year and into 2011 for full implementation as I understand it. The definition of acceptable credit has yet to be fully explained

So let me get this straight...is there legislation coming down the pipeline that states that if we as mortgage brokers/loan officers don't have perfect credit, we won't be able to continue in our chosen line of work? I went thru a 3+ year divorce with a monster and went from 800 FICOs to sub 600s. I've lost my properties, my savings, and nearly everything...and now they want to take away my career too? Can someone please point me in the right direction here. Seems rather unfair for someone who has never had a complaint, never an unsatisfied customer, and always done the right and ethical thing....what about extinuating circumstances??? Can someone please tell me where this legislation can be found. Thanks.

NorCalMortgageBroker: THANK YOU! I appreciate the chin up! No pity parties here, just a commentary on the climate. Best to you and all of us in 2010! We shall overcome!

Hammer, 4150.2 is the appraiser's guide. 4155.2 is for the lender.

EVER WONDER WHY A LENDER WOULD CHOOSE FORECLOSURE OVER A LOAN MODIFICATION OR SHORT SALE? This article by Patrick Pulatie will knock you off your chair! The worst offender appears to be IndyMac, now OneWest, and the article details exactly why lenders really do prefer foreclosure. http://iamfacingforeclosure.com/blog/2009/12/01/anatomy-of-a-government-abetteded-fraud-why-indymaconewest-always-forecloses/ What got me was that last part where he said, “There are over 50 different lenders and servicers who have Shared-Loss Agreements executed with the FDIC. Each Agreement offers essentially the same terms. Though other Lenders do not appear to be acting as flagrantly as OneWest, they are all still engaging in the same actions.”

Astonished in So Cal: I'm a 32 year veteran real estate broker and now a loan officer. I had your first initial panic response when I read the credit statement, but, there are plenty of us with problem credit from the devastation of our industries,our professional organizations will be in their with sleeves rolled up to demand modifications, exceptions, case by case stories and how could they not, veteran licensees would be out of work left and right. I wouldn't panic yet, write to any professional associates you can and begin building a paper trail of you circumstance, my heart goes out to you, hang in there!

MortgageBlues: It hasn't come to that. My point is, what are these polititians doing to us? No one even knows what this new rule means or what the "yard stick" will be. Appraisers and brokers are being blamed for all that created the melt-down. How retarded is that? Does the tail wag the dog? Read the book, Chain of Blame. All this talk about Fox News vs other stations, but none of them are telling the real story. I'd like to see Fox, CNN, MSNBC et al tell the truth for once. It's just as salacious as all the drama they are spoon-feeding the public already, but it's the truth!

ASTONISHED IN SO CAL- Why don't you file an appeal? If the reason for your current credit situation is medical related maybe you have a case.

As an appraiser, meth houses are a big concern so I appreciate your info. on it. When appraising in AZ a few years back, we entered what was supposed to be a vacant property that was definitely being used by drug addicts (needles everywhere, the place was totally trashed). It is an important issue and I'm looking forward to hearing more about it on your next live show. Thanks for all the info you two share with us. Your sense of humor starts my day off on the right note!

Really concerned about this industry and what brokers and appraisers are being blamed for. Like we had the power to take down the world economy??? Has anyone read “Chain of Blame” by Paul Muollo and Mathew Padilla? http://www.businessweek.com/magazine/content/08_32/b4095080483312.htm

CAN ANYONE SHED SOME LIGHT ON THE NEW MLO??? I've been licensed since 1989 and been in mtg banking since 1984.I never sold sub-prime or even neg-am product. (Can’t sell something I would buy myself.) I’ve never been in trouble, I'm ethical, straight forward, I OVER disclose & educate the borrower. Now with the MLO requirement, I may be forced out? “…the MLO endorsement will not be issued from NMLS&R if ‘an applicant has demonstrated a lack of financial responsibility by showing disregard in the management of his or her own financial condition.’” What does that mean? Is this protecting the public? My husband and I paid top dollar for our home in 2005. Right afterwards, I suffered a severe accident, had four surgeries and rehab over two years- then my husband got laid off. Now we're losing our home and everything we worked 18 years for, oh, and filing BK. So I’ve been financially irresponsible? Not sure what I’m going to do if I can’t work in my chosen profession…

BB I agree with you 100%.They should get a comedy award for 2009.

As I remember, ALL news stations were calling the mortgage broker 'crooks' and 'thieves', so I'll take every last one of them out to the woodshed and go all Spider Monkey on them. I will remember to be more gentle with the ones from the liberal networks, as they are very quick to cry :) ha Or could it be the Bible in my one hand, and the shotgun in the other......:)

Well BB, thats because you are a tool

Here is an article on FoxNews.com Right now! "Scientists: Dolphins Should Be Treated as 'Non-Human Persons'" I think this is the kind of stuff the boys are referring too. Lighten up - geez.

How anyone can have any semblance of faith in what and how FOX News reports, is beyond me.

Frank.. I got an old school friend who is witty & now a comedian... His off cuff stuff kills me raw... You remind me a lot of him as I watch you daily... I'm honored to have grabbed and tickled that gut of yours! Cheers!

I could maybe watch Fox Sports but who knows, they might change score on you.

Franks Uncle - That is hands down the best comment I have ever received on this blog! I am going to cut and paste that into a word doc and tape it to my monitor. Thanks for making my day!

What irony. He just posted. Never mind. :)

Just an observation...I see Frank using this discussion blog a lot, but not Brian. What's up?

Do you watch our show on a regular basis. I hardly think we bash fox. If anything we're accused of being too conservative. Also as I stated in my last comment fox on line has the most sensational headlines on any news source. Frank saying stupid was referencing our skit! Us in a star wars scene.

Frank-Brian, Guys what are you doing bashing FOX news??? I thought the true and balanced thing made sense to you as well. So are for total government domination or not, you can't have it both ways

TODAY I get "flabergastation" from your viewer, Noel. Indeed, a rich enhancement to my vocabulary.

but that house was so beautiful, the tears instantly welled up in my eyes....and Frank ain't fat, he just hunkalicious 'so shut ur pie hole' :)ha

Appraiser (is that better?)-Yes that is much better thank you for the info. Much appreciated. Make me look forward to the new year as an appraiser.

Fox News blows away the others. Don't go there. You should keep your show away from political views. Just look at the comments. I think you should address what you said and give us your interpretation.

Brian... Dude, you gotta find a new business partner... Flabby Frank taking a shot at Fox with all the other "politically correct, left wing biased, journalist dreaming to be in bed with congress" networks out there, was the stupidest marketing strategy ever... Come on Frank, you deliver comical fluff ever day (half drunk)... For your business' sake, keep your cake eater shut...

Secondly, If you look at online news all day long Fox will have the most sensational stories, BY FAR, of all credible sites. Drudge is second. How on earth were we being political by using a star wars droid scene and referencing FOX. Come on guys. By the way fox is great.

Hello Everyone. As Frank Said Appraisers are in but make sure you send contact info and a good pic of whomever you would like to enter. Again [email protected]

All of you who think the Fox News anchors are all idiots or comedians must be Obama suporters. He, Pelosi, Reid, Frank, etal, are leading this country down the wrong road. More and more of our liberties are being taken away. Do you really think it is a good thing for the government to run our auto industry, our financial institutions and our health care system? (They have done a really wonderful job with social security and madicare.) If you do, maybe you should move to another country where "big brother" will take care of you. Instead of bringing your personal politics into this, shouldn't you be concentrating on how to help make sure the mortgage broker industry survives? Are you happy paying the price and being blamed for a mess that was created years ago by our politicians? Did you notice that they are still talking about negative am loans? How stupid are our politicians and financial institutions?

Now I remember why I left California! Nice Meth lab issues.

Yesterday, the first work day of the new year, I spent hours carefully pouring over the NMLS website to register for my "unique number". I'm a California DRE licensee mortgage broker and, on Dec 31, received a letter from the Dept of Real Estate saying that they should have their part of the deal done sometime in March. Interesting that the Dept of Corp is ready to go but not the DRE licensees who have already been rigorously tested.

Frank, keep trying. I am sure you can get this back on mortgage business if you try hard enough. Personally I follow Fox along with many others just to get a real idea of what is happening in the news.

Frank, can you cut out the meth house bit for us to use? thanks

Frank, can you cut out the meth house bit for us to use? thanks

FYI FROM THE COLORADO CHAPTER HVCC COMMITTEE: Washington Report: New Consumer Financial Protection Agency by Kenneth R. Harney December 21, 2009 Congress took a major step last week toward eliminating what has been a painful thorn in the side of home sellers, Realtors, home builders, mortgage brokers and appraisers for months. As part of its financial and mortgage industry reform bill, the House voted to terminate the controversial Home Valuation Code of Conduct (HVCC) once a new Consumer Financial Protection Agency begins operations. The new agency would assume primary federal responsibility for equal opportunity in credit, real estate settlement procedures, financial disclosures to borrowers, plus unfair and deceptive marketing in mortgages and other financial products. The giant bill, nearly 1,300 pages long, now heads to the Senate, which is working on its own version. But tucked away in the depths of the House bill is a section that provides unusually detailed instructions to the director of the new Consumer Protection agency. The legislation requires the director to quickly come with new national appraisal rules and standards covering all transactions. On the day the new rules are adopted, Fannie and Freddie will be prohibited from using their much-maligned home valuation code. Fannie's and Freddie's rules have been criticized for producing lowball, inaccurate valuations; cutting appraisers' fees to the point where the most experienced professionals refuse to accept low-pay assignments; plus encouraging the use of inexperienced appraisers unfamiliar with local markets - and a long list of other problems. The National Association of Realtors and the National Association of Home Builders have fought the code since it was first imposed last spring. Mortgage brokers and appraisers have circulated petitions asking Congress to ban it or impose a moratorium. One petition reportedly pulled in more than 100,000 signatures. Now the House is on record as favoring the code's termination. Under the legislation, the consumer agency's rules would require lenders to compensate appraisers their full fees, rather than splitting them with management companies and pocketing part of the money themselves. It would also allow mortgage brokers and loan officers who are state licensed and registered under the federal "SAFE" law to order valuations and discuss them with appraisers, which they are not allowed to do under the Fannie-Freddie code. The bill also permits home sellers, buyers and Realtors to ask appraisers to consider alternative market data and comparables without such requests being treated as "interference." Whether the Senate ultimately goes along with creation of the consumer protection agency won't be know until next year. But the House bill should be a warning shot to Fannie and Freddie that their controversial appraisal code may have a very limited lifespan.

Hi everyone, Why don't we use this forum to ask intelligent questions and share ideas. Less venting and more solutions. Use the blog to ask questions and get answers. There are a lot of sharp professionals who subscribe to this site. Lets make the best use of this.

This Faux News stuff cracks me up. You guys make an innocuous, off-the-cuff remark about a TV network and a bunch of people get their nickers all in a twist, claiming that you are being too "political" and partisan. Too funny...oh, and the common defense of that "news" network that it is the most watched news network, therefore it is the most credible; this is a logical fallacy called "Agumentum ad Populum." If everyone likes something, then it MUST be good. By that logic, cigarettes must be really, REALLY good! Thanks for starting my day with a chuckle.

Here is an question to everyone. How can you take a "credit only" application. You can't issue a GFE now without a property and If you issue the GFE later when they do find a property it will not be within 3 days of the application. Hmmm??

FHA lender ordering the appraisal has been what was happening since the beginning. They stated that an AMC can do this but the fee has to be clearly noted as what the AMC is paid for this as well as what the appriaser is paid on the invoice. My problem is the wording appraiser's are to be paid a "resonable fee for the area". Which basically tells me someone else is in charge of telling me what I am worth before I look up the difficultly of the assignment. Furthermore gee Lenders ordering it vs AMC..You and I know most of the AMC's are ghost arms of the Lender so basically in my mind there is no difference. What is interesting to note is that appraisers that are employed by HUD did not have any input in this decision. Based on onversations I have had with them they were not happy about this. The story here boys is "Stevens" who shoved this down our throat did this pretty much alone and did not want any feedback from his troops. The story here is WHO IS STEVENS IN BED WITH?

James - we've stated before that appraisers are IN, so send some pics!

Source 1 - cause it's new. email us at [email protected] and we'll hook you up. Mortgage Girl - you can start any discussion you like....

WHY NO SEXEST APPRAISER on your list?

Hey Frank, I attended your GFE webinar but haven't received the "cool spreadsheet" Brian referred to. How can I get a copy?

Love your show guys but can't believe there is absolutely no discussion today regarding the worst day in mortgage business since I have been in this career (1985). The new RESPA rules are simply ridiculous. Let's talk business instead of politics and meth houses. C'mon.

I've always had some concern about meth houses even as an appraiser. I've been chased, run off the road and threatened just for taking comp pictures of some homes let alone the obvious health and welfare issues a meth house conveys. As far as FOX goes many times to me it's like reading a long sappy book that bores the hell out of me. I want hot tacos & beer everytime Glen Beck cries to the camera, where's the hot sauce? Have a happy day!

Just Saying - Yes. But... good stuff to know for clients looking for a home, and the FHA stuff wasn't bad, so.... still a good show IMHO.

In short EVERYBODY Has an Agenda... never-mind Politics. While print ( internet included ) media has an agenda I can at least absorb print media slower and analyze it more effectively. I haven't watched TV Media regularly since about June 2008. Every time I turn it on now I notice the stories are the same with different names. And Frank were you doing drugs when you went to the Dark side? :-) Also you should make those seminars free to paid TBWS Subscribers

meth house information? Really guys? Little light on mortgage information these days?

Fox News does rock.....unless you drink the the koolade of the main-stream media and bury your head in the sand to what's really going on in this country.

Wow SBWitmer, you guys that listen to Bill Press, Stephanie Miller and NBC, ABC and CBS are all Albert Eienstiens then???

Okay... so how about that meth-house story... sure wouldn't want to buy one of those 'eh?

@ SBWitmer Why do you think Fox is kicking the asses CNN and everyone else. Try this on, you can't sell crap and tell the people they are smelling roses. Leftest lies can't stand the light of day, so the rest of the T.V. "news" has to try to cover up their far left leaning positions. Thoses liars won't even admit they are left of center, and that is the first test. At least when you wach or listen to Rush, Hanity or Beck they will admit who they are. Will Oberman do that, hell no. does Oberman have more that his more and 3 other dumb asses like you watching? Hell no, check out his market share.

I'm sure that wasn't a political "dig" at Fox News. ;( John, Fox News, a comedy channel? Do you even watch Fox News? Are pejorative comments the best you can do?

Sometimes, they do point out the truth. It is too bad it's only 5% of the time.

Frank...love the show and not intending to turn this into a political debate. I watch to keep informed although I'm NOT a realtor or loan originator. I flip short sales...that is WHY I have the time for this since I'm NOT at a J-O-B!!!

Would that be the Fox News that reported Barney Frank's declaration of Fannie Mae's soundness . . . when other networks were complicit in the rouse? [I knew you guys were kidding. You're much too intelligent to dis' FNC.] And yes, John, FNC is comedic. That's what well-adjusted people do when all else would lead to jaw-dropping, mind-numbing flabergastation.

FOX News is all about pushing an agenda and filling the minds of the uninformed. When the idiots of this country count on Beck, Hannity and O'Reilly (not to mention Rush) for news and how it impacts us .. you know we've got BIG problems !! Thanks guys for points out the Fox News joke !!

Don't worry Frank, if those same people spent less time watching/reading Fox News, and read the 4155 or took a webinar or two on the new GFE, they'd actually do their job ;)

"For those of you that don't know, the 4155 is the bible of FHA........" ROFL - for those that don't know that, they should leave the business. Also - the 4155.1 is DIFFERENT than the 4155.2. This isn't software guys, the 4155.2 is NOT the "newer" version of the 4155.1. It is actually the appraiser manual ;-)

80% don't understand the new GFE. The other 20% don't know a new GFE exists.

This is funny. Honestly... absolutely NO thought went into the fox news comment. It was off the cuff, first take, ad-lib stuff. Fox probably came out because we always find the craziest stories on foxnews.com that you never see anywhere else. there was no cheap shot intended, just having fun. Not everything we do has a calculated formula to it guys... sometimes we're just goofing off.

Fox News Rocks!!! Especially for those who DON'T swallow all the dribble from the other networks!

Fox News rocks!!!

Isn't Fox News the Most Watched News Network? we must all be "Enquirer" junkies or is it possible the majority of us think they have value? The good news is we KNOW you have value, too.

Fox News is a comedy channel, anybody with a grain of brain knows that.

Dear Dynamic Duo, we love you guys but politically charged cheap shots that have no bearing on news or even the entertainment portion of your amazing production is not you. Is it?

I like Fox and Drudge... We were just joking around. Fox however is like the National Enquirer of the media... you have to admit. At least foxnews.com is.

Hey! I like Fox News. Keep your politics to yourself.

FrozenOranges---with wind chill, below 20 degrees. Must be this phenomenon called global warming...just saying.

Here it is for Justice.gov - http://www.justice.gov/dea/seizures/index.html

amir: I'm not sure this is correct but I found this link on the justice.gov site: http://www.usmarshals.gov/assets/sales.htm#Forfeited_Real_Estate_Listed_with_Real_Estate_Brokers:

It is 22 degrees here in FL today. 22 !!! What the??

I can not find out where in http://www.justice.gov/ can I find the list of homes that were met labs. Please help.