Market Update and How a 15 Year Mortage saves you $$P

Signs of more trouble ahead for housing marketSeveral recent market barometers, including declining housing inventory, increasing buyer competition, slowing price depreciation, and rising builder confidence all point to a real estate market rebound. However, other signs such as rising unemployment, lack of “move-up” buyers, stricter loan underwriting standards, and foreclosures also may impact the market’s recovery.Rising unemployment means that those who own a home, but are not currently employed, could lose their homes to foreclosure. While the first round of foreclosures mainly encompassed people who had difficulty affording their homes even when employed, a second wave may be brought on by those who lose their jobs and are not able to continue paying their mortgages. Numerous programs are in the works to help remedy this situation, including C.A.R.’s Mortgage Protection Program. Eligible first-time buyers who lose their job may be able to receive $1,500 for six months to help pay their mortgages. For more information on this program, please visit:

http://www.car.org/aboutus/hafmainpage/carhafmortgageprotection/While some housing analysts believe overall the state’s housing prices remain unaffordable; 69 percent of the state’s households could afford to purchase an entry-level home in California in the first quarter of this year, compared with 46 percent during the first quarter last year, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI).A study conducted by the Comptroller of the Currency found that more than half of modified mortgages again were delinquent within months of the modification, often because the homeowners still were unable to make regular mortgage payments despite the modified terms. However, the study was conducted prior to the Obama administration’s mortgage modification plan. For more information about the Obama administration’s foreclosure-prevention efforts, please visit:

http://www.car.org/newsstand/newsreleases/fapsummary
Mortgage News: This week’s Mortgage Update contains information about refinancing and 15-year mortgages.A battle plan for refinancing your mortgageHomeowners seeking to refinance their mortgages may be surprised by the amount of paperwork required. During the “easy credit” years, some lenders did not require proof of income or documentation. Nowadays, most lenders require borrowers to provide pay stubs, banks statements, brokerage statements, and possibly tax returns. Self-employed individuals may be asked for a profit-and-loss statement. Those relying on bonus income should expect that most lenders will assume this year’s bonus will be a lot less than last year’s, which could make securing approval more difficult. Determining the amount of equity in the home is key to being approved for a new loan. Homeowners whose mortgage obligations are less than 80 percent of the home’s value are more likely to have refinancing options available to them. Other homeowners who are current on their mortgages, owe 80 percent to 105 percent of the home’s value, and have a loan owned by Fannie Mae or Freddie Mac may be able to refinance under the government’s “Making Home Affordable” program. Other factors to take into consideration when refinancing are the property’s appraised value, the homeowners’ credit score(s), whether or not the property has a second mortgage, and the length of the original loan.
MortgagesMore Takers for 15-Year Loans
THE 30-year fixed-rate mortgage has traditionally been the go-to loan for borrowers who want stability and lower payments. Adjustable-rate mortgages, by contrast, are often seen as more suitable for risk takers and those who expect to sell their homes in a short time.More recently, there has been increased activity in another loan alternative: a fixed-rate mortgage with a 15-year term. Debt shedding comes at a price. Those borrowing $400,000 on a 15-year loan, with a 4.375 percent interest rate, the average rate earlier this month, can expect to pay about $3,034 a month, compared with about $2,056 a month for a 30-year fixed-rate loan with a 4.625 percent average rate. (The payment excludes costs like property taxes and insurance.) Because a 15-year loan also has 180 fewer interest payments than a 30-year loan, the borrower with that 15-year loan would pay $194,000 less in interest over the life of the mortgage.

Sacramento Define Swine Flu?

Swine Flu
Inquire about the availability of documents in alternate formats.
Swine Flu is a respiratory disease typically found in pigs. However, human Swine Flu cases can and do happen. Swine Flu has been detected in the United States, and locally in Sacramento County.
Use the following information to learn the symptoms, treatment and prevention of Swine Flu, as well as news about it’s occurrence locally and nationally.
Swine Flu and You – Description of the Swine Flu symptoms, treatment, and prevention from the Center for Disease Control
Swine Flu Information – Comprehensive resource from the State of California about Swine Flu.
Swine Flu in Sacramento County – Update from the Public Health Division
Swine Flu Investigation – National and international information from the Center for Disease Control
The County and City of Sacramento recommend you call 2-1-1 for general information about the swine flu. If you believe you have flu symptoms, please call your doctor, or 9-1-1 for a life threatening emergency. By calling 2-1-1 (or 1-800-550-4931) your questions will be answered by a representative who will have the latest public health information.

Click on the following link to gather more information on the highlighted links above:
http://www.sacramentoready.org/SAC_Sacready_DF_SwineFlu

Freddie Mac Release a bulletin

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-10
Today we issued Single-Family Seller/Servicer Guide Bulletin 2009-10, which announces important updates to requirements for the Home Affordable Modification program, including new criteria for determining whether a borrower is in imminent default, information and tools for Servicers to perform the required Net Present Value (NPV) test, and other changes to borrower eligibility and underwriting requirements.
Criteria for Determining Imminent Default
The Guide Bulletin provides criteria for determining whether a borrower who is current or less than 31days delinquent, and claims a hardship, is in imminent default. Using the process, requirements, and definitions outlined in our revised Guide Section C65.4, Servicers must consider the borrower for a modification under the Home Affordable Modification program if, after using the screening criteria outlined in this Guide section, the Servicer determines:
The borrower’s Debt Coverage Ratio is less than 1.20 and
The borrower’s cash reserves are less than three times the current monthly PITIA payment.
The Borrower Qualification Worksheet may be used to determine if a borrower, who is current or less than 31 days delinquent, is in imminent default. The updated Freddie Mac Borrower Qualification Worksheet will be available as a secure link on our Home Affordable Modification program Web page on Thursday, April 23. In addition, Freddie Mac is developing an automated solution to assist Servicers with the imminent default evaluation, and it will be available at a later date.
Net Present Value Calculations
All mortgages that meet Home Affordable Modification program criteria must be evaluated using the standardized NPV test that compares the NPV result for a modification to the NPV result for not modifying the mortgage. Today’s Bulletin and newly revised Guide Section C65.6 include detailed requirements for performing this test. These requirements include revisions for determining the amount of principal forbearance that may be permitted in order to achieve the Target Payment.
To assist Servicers, we are also introducing the Net Present Value (NPV) Calculator. The NPV Calculator is available on the Home Affordable Modification Servicer Web page. A user ID and password are required for access to the Servicer Web page. Servicers must complete and submit the HMP Registration Form to obtain a user ID and password.
Additional Updates
With today’s Bulletin, we are also announcing revisions and updates to these and other program requirements:
Revising requirements for verification of income when the Servicer uses stated income to create and send the borrower a Trial Period Plan, along with revising the income documentation requirements.
Revising the timeframe for when a borrower must respond to the Trial Period Plan offer package from 14 days to 30 days, and providing additional guidance if the borrower does not submit the required documents by the specified deadline.
Updating the definition of Interest Rate Cap.
Updating requirements for Servicers to continue to report “full-file” status reports to the four major credit repositories when borrowers enter the Trial Period, with criteria for borrowers who are current and borrowers who are delinquent when they enter the Trial Period.
Revising collateral valuation requirements used for the NPV test and for determining the mark-to-market LTV ratio.
Revising eligibility requirements to allow modifications of FHA, VA, and RHS mortgages, in accordance with guidance issued by the respective agency.
Revising documentation requirements for verifying that eligible mortgages are occupied primary residences.
Updating requirements for verifying installment debt and other expenses that must be included in the calculation of the borrower’s total monthly debt payment-to-income ratio.
Providing further guidance on the Servicer’s “Pay for Success” and Borrower’s “Pay for Performance” incentive fees.
Revising the Hardship Affidavit to now include a section for the collection of government monitoring data.
Adding requirements for reporting data to Fannie Mae in its capacity as Financial Agent.
Adding requirements provided by Freddie Mac, the Compliance Agent for the U.S Department of the Treasury.
Reminders
As a reminder, Servicers should continue to:
Suspend all foreclosure sales on owner-occupied properties for borrowers who may be or are eligible for a modification under the Home Affordable Modification program.
Report weekly Home Affordable Modification activity each Monday using the Program Performance Reporting Spreadsheet.

Please read the original bulletin: http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0910.pdf

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-9.
Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-9, expands eligibility for the Freddie Mac Relief Refinance MortgageSM, making it easier for qualified borrowers to take advantage of this offering. Relief Refinance Mortgages are a key component of the administration’s Making Home Affordable Program and we are committed to supporting this national mandate by making Relief Refinance Mortgages available to as many qualified borrowers as possible. Today’s expanded eligibility will allow you to help more borrowers refinance into mortgages that position them for a successful and long-term homeownership experience.
With today’s Guide Bulletin, we are incorporating into the Guide the recently announced increase to our maximum loan limits as permitted under the American Recovery and Reinvestment Act of 2009 (ARRA). We are also announcing revisions to our requirements for super conforming mortgages that include the changes we previewed in our April 10 Single-Family Advisory e-mail.
It is important that you review today’s Guide Bulletin for detailed information on these changes.
Expanded Eligibility for Relief Refinance Mortgages
Today’s Guide Bulletin provides detailed information on updates to our requirements for Relief Refinance Mortgages. The following changes are effective immediately and include:
Clarifying that accrued interest through the payoff date may be included when paying off the mortgage being refinanced.
Permitting up to $250 cash back to the borrower.
Enabling the amortization term of the Relief Refinance Mortgage to be longer than the amortization term of the existing mortgage. For example, a 15-year fixed-rate mortgage may be refinanced as a 30-year fixed-rate Relief Refinance Mortgage.
Allowing second home and investment property mortgages that are now owner-occupied primary residences to be refinanced under the Relief Refinance Mortgage offering.
Permitting the transfer of property insurance from the mortgage being refinanced to the Relief Refinance Mortgage, if permitted by the insurance carrier, to alleviate the need for the borrower to prepay property insurance at settlement.
Additionally, when using Home Value Explorer® to determine property value, we are not requiring you to complete the “Year Built” and “Number of Bedrooms” fields on Form 11, Mortgage Submission Schedule and Form 13SF, Mortgage Submission Voucher.
Finally, we are reminding you that Relief Refinance Mortgages may not be sold to Freddie Mac through the selling system’s servicing-released process.
To view the online Bulletin in its entirety, please http://www.freddiemac.com/sell/guide/bulletins/pdf/bll099.pdf