Closingtruth: (August 04, 2010 10:07pm)

Thanks for bringing the truth to this crazy business you guys are great! Keep up the great work!

MrLoanman: (July 31, 2010 10:00am)

Just wondering, how much is FHA paying you guys?

Owl Tree: (July 28, 2010 3:00pm)

I have no idea what properties are worth today. Serious, no clue. I can't talk to the appraiser, and have no idea if the guy is a seasoned veteran or a complete stroke. Just had two appraisals come back....2 dead loans.

joecolorado: (July 28, 2010 2:15pm)

Just got offered a job,on a really unique property net zero energy geothermal and PV system ,where the bank is getting paid $1000 for the appraisal and they offered me the job for $300,with a 4 day deadline. what to do, what to do?no need to answer, I already know what to do. just venting....frustratedly.......

5pence: (July 28, 2010 1:39pm)

You mean the same Dave Stevens that bs'd you guys about Chinese investors chomping at the bit to buy MBS's? The same Dave Stevens that decided "reasonable and customary" appraisal fees was OK when it's totally wrong? The same FHA head that has cast their lot with the corrupt GSE's instead of the remarkable and well-respected VA? The same guy that doesn't care about the quality of FHA valuations in that the lowest priced appraiser gets the job over someone that is experienced? I wish the guy had more foresight. He's buying into the banksters schemes too easily. But yeah, FHA has been great for the consumer and propsective home buyers. They've filled a gap that needed to be filled in the US markets. I just wish they hadn't knelt down to the TBTF bankster amc's.

GODLIKE: (July 28, 2010 11:32am)

Let me get this straight, Andrew Cuomo IS one of the Village People or he WAS one of the Village People. I'm soooo confused.

jcollins: (July 28, 2010 10:14am)

FRANK & BRIAN, Did you say that HUD is allowing DAPs from Sellers????

W.R.Buchanan: (July 28, 2010 9:02am)

We don't do FHA anything, the reason is, it is too much work for the fee. We won't do ANY appraisal for under $350 any more. FHA appraisals should be $500 easy. OH and how many of you have gotten a raise in the last 10 years? If you look at the curent fee expectations of appraisers you should get sick. 5 years ago $350-400 was the norm. Add to that$75ea for any extra pages like the MC. Now you are ground on at $200-250 for a full 1004+MC and the myriad of crap that Chase wants added for the benefit of their completely incompetant staff. No,guys now is the time to band together and stop this crap. You deserve a PROFESSIONAL FEE for a professional service. Expecting at least $50/ hr is not at all unreasonable. At 8 hrs for a competant appraisal that's $400. However our product can be market driven, and in case you haven't noticed,it's been driven down.It can be driven back up too, but only if we band together and refuse to work for wetback wages. Join CCAP now, www.cacap.org. Randy

GaryP: (July 28, 2010 8:01am)

Doggone, I usually agree with your thinking in terms of the taxpayers supporting programs and bailouts. However, FHA did come through the worst of the crash with a surplus (0.75%), although not up to the 2% that Congress requires. Raising the UMIP and MI has addressed that issue. It seems they are just adjusting the ratio of those two now because annual MI makes more money than UFMIP for FHA. What does concern me though, is that a lot of those funds were siphoned off by HUD for other programs such as Section 8 and homeless projects. It seems as if our borrowers are subsidizing these programs through MI and that is at least partially responsible for their MI shortfall. This is just like social security goin into the government general fund. Fees or taxes that are paid for one purpose are being used for another unintended program. I really have a problem with that.

Bono Vox: (July 28, 2010 7:19am)

More from Dave....July 19, 2010 LINKS After touring the country and talking to lenders over the past few weeks, I think it is important to take a moment and emphasize to all lenders the important role they play in this housing market, particularly in their role as responsible stewards of underwriting quality loans that will perform sustainably over time. In some cases I am seeing activities that reflect an over exuberance in the marketplace to find ways to increase loan origination revenues. Some may say it’s only “a few opportunistic lenders,” while others may say it’s a more widespread trend. It is our job at FHA to ensure that the FHA portfolio is not impacted by dangerous lender behavior that could threaten the safety of a financially sound, viable program for decades to come. Therefore, I want to be very clear on FHA’s position as it relates to underwriting, lender accountability and affordable programs. Quality underwriting is not only essential; it is expected. Every lender engaging in business with FHA is expected to perform and maintain quality underwriting standards. FHA has flexible guidelines in place so we can best serve our mission of providing affordable ho

Bono Vox: (July 28, 2010 7:18am)

Letter from David....... http://portal.hud.gov/portal/page/portal/ver-2/HUD/federal_housing_administration/docs/From_The_Desk_Of_July_B_2010.pdf

Bigg in CO: (July 28, 2010 6:57am)

Couldn't agree with you guys more. It used to be that many LO's and Processors did not want to do FHA/VA deals because of the additional work required. Not anymore! With the advent of the Loan Killing Initiative (LQI) from FNMA, Conventional lending is MUCH more difficult to process and get to closing than a tried and true FHA or VA loan. There is no comparison. FHA/VA all the way!

John: (July 28, 2010 6:57am)

In light of all of this I have to say that it baffles me that we have this "all or none" mentality when it comes to loans. We shift from one extreme to another. 3 years ago anyone with a pulse could get a loan. Now, the deserving borrower is paying the price by having access to fewer and fewer loan products. Seems like the lenders would want to cater to the well qualified buyers by offering a broader variety of loan products. Just my 2 cents.......

DavidC: (July 28, 2010 6:50am)

You say that now about FHA loans...what happens when the monthly MI jumps up to 1.45?

barbara: (July 28, 2010 6:49am)

Fannie pushed the middle-scored borrowers out of their market when they adopted that pricing grid. The hits for scores under 720 on higher ratios loans are punishing. We're like the cattle on the "Rawhide" shows. . .goin' where we're drivin'. Head em up, move em out!

Daggone: (July 28, 2010 6:39am)

Gary P - I get you. I really do. I want FHA loans to be out there, just like RHS, VA, etc. I want there to be some help for people who need down payment funds.I just don't want them to be the ONLY ones because I do not think it is fiscally responsible to the taxpayers.

Daggone: (July 28, 2010 6:37am)

Gary P - precisely my point - 640 credit score, and loan of last resort. I want well qualified buyers buying homes, believe me I do. I just do not want to be on the losing end of our government money going to pay for them. I am just closing a FHA short sale. Loan amount $175,000, net to HUD $132,000, who do you think is paying the difference? It works for a while, but when the volume shifts so sharply to FHA, they are going to need money. That will come from you and me.

GaryP: (July 28, 2010 6:36am)

If you look at the statisitics, conventional seems to have become a product that is primarily only being used by "well qualified" borrowers seeking a refinace. Purchase volume has increasingly moved towards government products. This trend has been going on since 3/31/2008 when the conventional first time products (My Community and Home Possible) were, for all intents and purposes, shut down. That date sticks out, because I closed my last My Community on that day. Guidelines were tightened after that, making those programs essentially worthless for the vast majority of buyers. FHA became the product of choice afterwards.

GaryP: (July 28, 2010 6:30am)

Daggone, I'm a little confused by your claim that conventional loans are competitive to FHA. Perhaps from the standpoint that you are referring to, however, have you ever tried to qualify a first time buyer with a 640 FICO for a conventional loan? Do you think it's just a statistical fluke that 88% of first time buyers are using FHA right now? In addition, David Stevens has already stated that the goal is to drop the UFMIP to 1%, and increase the annual premium to a level that would still be lower than the PMI on a comparable conventional loan. Most first time buyers would have a hard time qualifying for the PMI anyway. Have you looked at their guidelines lately? I'm not really sure where you are getting your facts from. Let's face it, for better or worse, FHA is the loan of last resort for most first time buyers that make up a large percentage of the market now. That's not to say that only first timers are using FHA. An increasing number of my repeat buyers are going FHA now.

barbara: (July 28, 2010 5:47am)

About 7 years ago, I participated in a round table put on by the San Antonio FHA. They wanted to increase their market share. We said: do away with picky appraisals and non-allowables, and make it easier for lenders to get involved. Let the sponsoring lender approve us. And they listened!

frost: (July 28, 2010 5:37am)

You guys are colorful reporters and muckrakers. I believe that your forum could have a bigger dynamic helping to stabilize our economy and provide the industries you service with over 1.4 million loans. I am sure that you agree that there needs to be parity between home values and mortgages. You have called for getting the imbalance repaired by accelerating foreclosures and being done with it. The less harsh solution stems from a FHA legislated program that has $300 billion in guarantees approved, H4H. If you are ready to take a step into proactive movers and shakers I will give you a very detailed analysis of the program, its supporters and what it will take to make it and you the economic saviors. Big statement – consider the economic woes of our recession were triggered by the burst of the real estate bubble. The impact of foreclosures has branched into building and construction which catalyzed retail and manufacturing declines and created high unemployment. The foundation of our

Daggone: (July 28, 2010 5:32am)

The Rest of The Story. 3.5% for FHA PLUS Up Front MIP 2.75% = (wait for it) MORE than 5%. 95% Conventional loans are very competitive, more so than ever. You cannot ignore the "investment" from the borrower that gets added to his loan on FHA, so it is not really 3.5%. I have a problem the volume of FHA loans and I have a HUGE problem with the loan limit exceeding $700,000. Think about it, the taxpayer is on the line. This makes no sense especially now. With more FHA loans being done it is only reasonable that foreclosures are going up. In the end we as taxpayers are going to pay the bill. I have seen figures as high as 9% of the FHA loans in default. Lenders are gobbling them up because they are out of the line of fire on foreclosures. I was a big fan of the down payment assistance loans; I've awakened to the fact that when you have nothing invested, you have nothing to lose, so it is too easy to walk on your mortgage. FHA should not be the only game in town!

bendavis: (July 28, 2010 1:07am)

FHA has created great opportunity regardless of the changes. It provides home ownership and that is what we are here for...

williamk2v: (July 28, 2010 12:52am)

Andrew Cuomo may no longer work for HUD, but his girlfriend is HOT and she can cook. Other than that he needs a New Jersey overcoat. Wait, can that last part get me arrested?