Good Morning,
This will have an effect on the market, especially for your first time home buyers.
Any FICO below 680 now has a .375 add…
FNMA has been in the news quite a bit lately reporting massive losses, and this is just the first step in mitigating these losses.
Perhaps more importantly is that effective 1/1/08 it looks like 100% financing may be going away due to the declining values situation.
FNMA APPEARS to be implementing across the board 5% LTV reductions from the maximum financing allowed in any market with declining values. This will directly affect us since we are in a declining market.
I would suggest you communicate this to any of your clients who have been on the fence and will be requiring 100% financing.
As of now, there are more then 5 programs that are available to borrowers to reach 100% financing… FHA is also available but will be subject to risk based pricing as well. Meaning that FHA is still available, and the stronger borrowers will receive better pricing.
I will consistently keep you updated on market activity that will directly affect your business. If you have any questions or would like more detailed information please don’t hesitate to contact me.
An appropriate Quote, relevant to today’s events:
Follow your honest convictions, and stay strong.William Thackeray
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment