FHA Secure updates

chow · Posted: Fri Nov 09, 2007 11:15 am Post subject: FHA Secure updates

Seems that the help available with the FHA Secure program is better than we thought. Here are a few more areas the loan can do.

By reading the mortgagee letter, we clearly understand that the homeowner would have to be behind in payments because of the ARM adjusting. http://www.hudclips.org/sub_nonhud/html/nph-brs.cgi?d=MLET&s1=07-$[no]&op1=AND&SECT1=TXTHLB&SECT5=MLET&u=../html/shortcut.htm&p=1&r=3&f=G

Borrowers don't have to be behind in the mortgage payment(s). If the homeowner has taken the high road, and paid the mortgage payments, or paid the first mortgage and let the second fall behind, that's okay for the secure program. Even unexpected rise in escrows could trigger the homeowner to fall behind. The UW can look at that. I would strongly suggest that if you think your borrower might fit due to rise in rate on first, second, or escrows-they call and speak to the HOC about it.

Just make sure the new second or the existing second mortgage (if you are keeping it) is fixed rate, no prepay, and no balloon for first 10 years.

Now the challenge is to find lenders that are funding the FHASecure (both for borrowers, and mortgage brokers/bankers) I would suggest to the teaming millions (all of you who are reading this) that IF you know of a lender, broker, bank-who is funding these- let the rest of us know. Please clearly indicate if this is just a in house program or if the company will take loans being brokered to them. (and what region is that?) If you don't know, just say you know they offer it to borrowers directly. Those brokers and mortgage bankers that choose not the fund off their own line can contact the lender directly to see if they are doing these wholesale.

I know that Bank Of America, and Flagstar is doing them everywhere. I don't know if Flagstar is allowing for wholesale on these. Bof A is only doing them in house as they quit funding wholesale loans. We know Regions Bank is funding them, Chase, and a few others (I will edit post when I get my notes)

First Horizon stated they are considering funding these on a wholesale basis. They will let the brokers know within the next couple of weeks.

I'll be back to add more later. :wink:

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Wells Fargo does them as well but only for loans that we service. If you are with Wells Fargo you'll need to contact servicing to get it resolved, as they can not be originated in the local offices.

Marty 1stMet · Joined: 20 Sep 2007 Posts: 38 Location: Williamsburg

RMC Funding is doing these wholesale, but with a rate hit of 2 points. Ouch! LOL, well, I guess something has to be done.