{"id":4858,"date":"2008-10-08T22:49:20","date_gmt":"2008-10-09T05:49:20","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4858"},"modified":"2008-10-08T22:49:20","modified_gmt":"2008-10-09T05:49:20","slug":"will-mortgage-brokers-be-the-hope-for-homeowners","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/","title":{"rendered":"Will Mortgage Brokers Be the Hope For Homeowners?"},"content":{"rendered":"<p>The <a title=\"FHA hope for homeowners\" href=\"http:\/\/delmar.typepad.com\/brianbrady\/2008\/10\/fha-hope-for-sa.html\">FHA Hope For Homeowners<\/a> program was designed for existing homeowners, struggling with mortgage payments and an &#8220;upside-down&#8221; equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can offer the program, and few are certain if the program will be offered through mortgage brokers.<\/p>\n<p><strong>I discussed the <a title=\"FHA hope for homeowners\" href=\"http:\/\/www.zillow.com\/blog\/mortgage\/2008\/10\/04\/fha-hope-for-homeowners-explained\/#comment-310\">key components of the FHA Hope For Homeowners loan program<\/a> on Mortgages Unzipped.\u00a0 They are are not limited to but include:<\/strong><\/p>\n<ul>\n<li><em>An appraisal will be performed and the maximum loan amount will be 90% of that appraised value.\u00a0 All subordinate liens will be extinguished and the exiting lienholder will have to agree to a loss of principal.<\/em><\/li>\n<li><em>The current housing payment must be more than 31% of the homeowner\u2019s gross monthly income.<\/em><\/li>\n<li><em>The homeowner must not have misrepresented his\/her income on the original loan application.<\/em><\/li>\n<li><em>The homeowner must get a new 30-year fixed rate loan and qualify based upon documented income.<\/em><\/li>\n<li><em>The homeowner must agree to an declining equity sharing agreement (for the existing equity), with the FHA, for a specified period of time.<\/em><\/li>\n<li><em>The homeowner will share in future appreciation with the FHA.<\/em><\/li>\n<li><em>The program is completely voluntary; existing lienholders don\u2019t have to participate.<\/em><\/li>\n<\/ul>\n<p>This article isn&#8217;t about whether the Hope for Homeowners program is a &#8220;good&#8221; idea.\u00a0 I believe that the future of mortgage refinancing lies in the immediate reality that lenders will accept short payoffs for refinance loans in addition to resale transactions.\u00a0 Robert Kerr made a comment, about a year ago, about the morality of loan modifications and suggested that lenders should &#8220;mark-to-the market&#8221;and accept lower balances to be commensurate with declined valuations.\u00a0 That comment inspired my semi-satirical <a title=\"real estate bailout act of 2008\" href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2831\">recommendation of short payoffs, cross-collateralized against the net present value of government retirement entitlements<\/a>. Robert made me think that the moral is the practical.<\/p>\n<p><strong>Will the investors play ball?<\/strong> One lender, <a title=\"first franklin\" href=\"http:\/\/www.ml.com\/index.asp?id=7695_7696_8149_63464_70786_70780\">acquired at the tail of the sub-prime boom<\/a>, sold its entire loan portfolio <a title=\"lone star\" href=\"http:\/\/www.clusterstock.com\/2008\/7\/lone-star-s-john-grayken-the-man-who-s-buying-wall-street-s-trash\">for about 22 cents on the dollar this past summer<\/a>.\u00a0 This means that a $300,000, 100% financing home loan, made in 2005, was bought for $75,000.\u00a0 <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/#more-4858\" class=\"more-link\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FHA Hope For Homeowners program was designed for existing homeowners, struggling with mortgage payments and an &#8220;upside-down&#8221; equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can offer the program, and few [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5],"tags":[249],"class_list":{"0":"post-4858","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","9":"tag-hope-for-homeowners","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1382,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1382\/fha-streamlined-refinance-loans-originators-git-you-some\/","url_meta":{"origin":4858,"position":0},"title":"FHA Streamlined Refinance Loans: Originators, Git You Some !","author":"Brian Brady","date":"May 3, 2007","format":false,"excerpt":"Loan originators, subprime mortgage blues got you down in the dumps? Let's talk about a way to get your pipeline phat again. I'm going to give you a step-by-step plan to start, what Todd Duncan calls, the 90-day burn. If you follow these steps, and you don't close 10 loans\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3052,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3052\/hr-5830-here-comes-the-bailout-act-of-2008\/","url_meta":{"origin":4858,"position":1},"title":"HR 5830:  Here Comes The Bailout Act of 2008","author":"Brian Brady","date":"May 3, 2008","format":false,"excerpt":"The best thing about being suspicious of politicians is that you learn how they think.\u00a0 I actually think this is a GOOD idea.\u00a0 Libertarians will hate it but I think this bill has merit. Remember my Bailout Post, in March? I have a little idea about how to save the\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2344,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2344\/happy-homeowners-act-of-2008\/","url_meta":{"origin":4858,"position":2},"title":"Happy Homeowners Act of 2008","author":"Brian Brady","date":"December 8, 2007","format":false,"excerpt":"I'm thinking of getting into politics. I've been watching testimonies, from both sides of the aisle, about the credit crunch and impending doom of mass foreclosures. I figured out the problem: The housing prices were too damned high. Now, my stance, to this point, has been pretty clear; let the\u2026","rel":"","context":"In &quot;Investment&quot;","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18079,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18079\/how-to-fix-florida-homeowners-insurance-costs\/","url_meta":{"origin":4858,"position":3},"title":"How To Fix Florida Homeowner&#8217;s Insurance Costs","author":"Brian Brady","date":"April 25, 2021","format":false,"excerpt":"This morning, The Wall Street Journal sounded the alarm about the ticking time bomb in Florida real estate.\u00a0 It's behind a paywall but I will try to highlight some key points for you: 1- Florida homeowner insurance premiums are increasing by a double-digit percentage 2- Insurance companies are withdrawing from\u2026","rel":"","context":"In &quot;Investment&quot;","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17011,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17011\/cant-refinance-because-your-income-dropped-help-may-be-on-the-way\/","url_meta":{"origin":4858,"position":4},"title":"Can\u2019t refinance because your income dropped? Help may be on the way.","author":"Brian Brady","date":"September 14, 2020","format":false,"excerpt":"Last week, Freddie Mac published their Mortgage Market Survey, showing that the average rate, for conforming mortgage loans originated, was under 3%.\u00a0 The company who performed the survey (Black Knight), figures that there are close to 20 million homeowners who can refinance now: The company says there are now 19.3\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/scott-graham-OQMZwNd3ThU-unsplash-480x320.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4751,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4751\/va-and-fha-higher-loan-limit-extension-through-2011-the-main-street-bailout\/","url_meta":{"origin":4858,"position":5},"title":"VA and FHA Higher Loan Limit Extension Through 2011: The Main Street Bailout","author":"Brian Brady","date":"September 30, 2008","format":false,"excerpt":"We don't have a \"Main Street\" in Southern California; we have the US Route 101 (or CA State Highway #1). We call it the Coast Highway, the Pacific Coast Highway, or the PCH.\u00a0 When I think of a bailout plan for Main Street, I think of it for homes within\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4858"}],"version-history":[{"count":10,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4858\/revisions"}],"predecessor-version":[{"id":4868,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4858\/revisions\/4868"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}